WesBanco Q4 2025 WesBanco Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 WesBanco Inc Earnings Call
Operator: Good day, and welcome to the WesBanco Fourth Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please limit yourself to one question and one follow-up. Please note this event is being recorded.
Speaker #1: Good day, and welcome to the
Speaker #1: WestBanco Fourth Quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
Speaker #1: After today's presentation, there will questions. To ask a question, you may be an opportunity to ask press star then one on a touch-tone phone.
Speaker #1: To withdraw your question, please press star then two. Please limit yourself to one question and one follow-up. Please note this event is being recorded.
Speaker #1: I would now like to turn the conference over to John Iannone Senior Vice President of Investor Relations. Please go ahead.
Operator: I would now like to turn the conference over to John Iannone, Senior Vice President of Investor Relations. Please go ahead.
I would now like to turn the conference over to John Iannone, Senior Vice President of Investor Relations. Please go ahead.
Speaker #2: Thank you. Good morning, and welcome to WestBanco Inc.'s Fourth Quarter and Full Year 2025 earnings conference call. Leading the call today are Jeff Jackson, President and Chief Executive Officer; and Dan Weiss, Senior Executive Vice President and Chief Financial Officer.
John Iannone: Thank you. Good morning, and welcome to WesBanco, Inc.'s Q4 and full year 2025 earnings conference call. Leading the call today are Jeff Jackson, President and Chief Executive Officer, and Dan Weiss, Senior Executive Vice President and Chief Financial Officer. Today's call, an archive of which will be available on our website for 1 year, contains forward-looking information. Cautionary statements about this information and reconciliations of non-GAAP measures are included in our earnings-related materials issued yesterday afternoon, as well as our other SEC filings and investor materials. These materials are available on the Investor Relations section of our website, wesbanco.com. All statements speak only as of 28 January 2026, and WesBanco undertakes no obligation to update them. I would now turn the call over to Jeff. Jeff?
John Iannone: Thank you. Good morning, and welcome to WesBanco, Inc.'s Q4 and full year 2025 earnings conference call. Leading the call today are Jeff Jackson, President and Chief Executive Officer, and Dan Weiss, Senior Executive Vice President and Chief Financial Officer. Today's call, an archive of which will be available on our website for 1 year, contains forward-looking information. Cautionary statements about this information and reconciliations of non-GAAP measures are included in our earnings-related materials issued yesterday afternoon, as well as our other SEC filings and investor materials. These materials are available on the Investor Relations section of our website, wesbanco.com. All statements speak only as of 28 January 2026, and WesBanco undertakes no obligation to update them. I would now turn the call over to Jeff. Jeff?
Speaker #2: Today's call and archive of which will be available on our website for one year contains forward-looking information. Cautionary statements about this information and reconciliations of non-GAAP measures are included in our earnings-related materials issued yesterday afternoon.
Speaker #2: As well as our other SEC filings and investor materials. These materials are available on the Investor Relations section of our website westbanco.com. All statements speak only as of January 28th, 2026, and WestBanco undertakes no obligation to update them.
Speaker #2: I would now like to turn the call over to Jeff. Jeff.
Speaker #3: Thanks, John. And good morning. On today's call, we will provide an overview on Fourth Quarter performance, and provide our initial outlook for 2026. Key takeaways from the call today are: successful execution on our growth-oriented business model while maintaining strong credit quality measures; full-year pre-tax pre-provision earnings growth of 105% year over year, and full-year earnings per share of 45% to $3.40 when excluding merger-related charges; loan growth fully funded by deposit growth both year over year and quarter over quarter; helping to drive our Fourth Quarter net interest margin to 3.61; continued focus on operational efficiencies and cost control as demonstrated by our Fourth Quarter Efficiency Ratio of 52%; 2025 was another strong year for WestBanco.
Jeffrey Jackson: Thanks, John, and good morning. On today's call, we will provide an overview on Q4 performance and provide our initial outlook for 2026. Key takeaways from the call today are: successful execution on our growth-oriented business model while maintaining strong credit quality measures. Full-year pre-tax pre-provision earnings growth of 105% year-over-year, and full-year earnings per share of 45% to $3.40 when excluding merger-related charges. Loan growth fully funded by deposit growth both year-over-year and quarter-over-quarter, helping to drive our Q4 net interest margin to 3.61. Continued focus on operational efficiencies and cost control, as demonstrated by our Q4 efficiency ratio of 52%.
Jeffrey Jackson: Thanks, John, and good morning. On today's call, we will provide an overview on Q4 performance and provide our initial outlook for 2026. Key takeaways from the call today are: successful execution on our growth-oriented business model while maintaining strong credit quality measures. Full-year pre-tax pre-provision earnings growth of 105% year-over-year, and full-year earnings per share of 45% to $3.40 when excluding merger-related charges. Loan growth fully funded by deposit growth both year-over-year and quarter-over-quarter, helping to drive our Q4 net interest margin to 3.61. Continued focus on operational efficiencies and cost control, as demonstrated by our Q4 efficiency ratio of 52%.
Jeffrey Jackson: 2025 was another strong year for WesBanco and a clear demonstration that our growth-oriented business model continues to deliver results while maintaining disciplined credit and expense management. For the full year, we generated pre-tax, pre-provision earnings growth of more than 100% year-over-year and earnings per share growth of 45% to $3.40 when excluding merger-related charges. Importantly, that performance was driven not by one-time actions, but by core strategic execution, including loan growth, fully funded by deposit growth, expanded net interest margin, and continued efficiency gains. For Q4, ending December 31, 2025, we reported net income, excluding merger and restructuring expenses, available to common shareholders of $81 million and diluted earnings per share of $0.84, which increased 18% year-over-year.
2025 was another strong year for WesBanco and a clear demonstration that our growth-oriented business model continues to deliver results while maintaining disciplined credit and expense management. For the full year, we generated pre-tax, pre-provision earnings growth of more than 100% year-over-year and earnings per share growth of 45% to $3.40 when excluding merger-related charges. Importantly, that performance was driven not by one-time actions, but by core strategic execution, including loan growth, fully funded by deposit growth, expanded net interest margin, and continued efficiency gains. For Q4, ending December 31, 2025, we reported net income, excluding merger and restructuring expenses, available to common shareholders of $81 million and diluted earnings per share of $0.84, which increased 18% year-over-year.
Speaker #3: a clear demonstration that our And growth-oriented business model continues to deliver results while maintaining discipline, credit, and expense management. the full year, we generated For pre-tax, pre-provision earnings growth of more than 100% year over year, and earnings per share growth of 45% to $3.40.
Speaker #3: When excluding merger-related charges. Importantly, that performance was but by core strategic driven not by a one-time action, execution. Including loan growth fully funded by deposit growth, expanded net interest margin, and continued efficiency gains.
Speaker #3: For the fourth quarter ending December 31, 2025, we reported net income, excluding merger and restructuring expenses, available to common shareholders of $81 million.
Speaker #3: And diluted earnings per share of 84 cents, which increased 18% year over year. On a similar basis, an excluding day one provision for credit losses we reported full-year net income of 309 million.
Jeffrey Jackson: On a similar basis and excluding day one provision for credit losses, we reported full year net income of $309 million and diluted earnings per share of $3.40. Furthermore, the strength of our 2025 financial performance was reflected in our Q4 Return on Tangible Common Equity of 16%. Non-Performing Assets to total assets of 0.33%. Our capital position remains solid, with a CET1 Ratio of 10.3%, giving us flexibility to support growth and navigate the operating environment ahead. We also achieved several strategic milestones in 2025. Chief among those was the successful acquisition and integration of Premier Financial, transforming WesBanco into a $28 billion asset regional financial services partner. With this historic acquisition, we now rank among the top 50 publicly traded US financial institutions based on assets.
On a similar basis and excluding day one provision for credit losses, we reported full year net income of $309 million and diluted earnings per share of $3.40. Furthermore, the strength of our 2025 financial performance was reflected in our Q4 Return on Tangible Common Equity of 16%. Non-Performing Assets to total assets of 0.33%. Our capital position remains solid, with a CET1 Ratio of 10.3%, giving us flexibility to support growth and navigate the operating environment ahead. We also achieved several strategic milestones in 2025. Chief among those was the successful acquisition and integration of Premier Financial, transforming WesBanco into a $28 billion asset regional financial services partner. With this historic acquisition, we now rank among the top 50 publicly traded US financial institutions based on assets.
Speaker #3: And diluted earnings per share of $3.40. Furthermore, the strength of our 2025 financial performance was reflected in our fourth quarter return on tangible common equity of 16%.
Speaker #3: Non-performing assets to total assets of 0.33%. Our capital position remained solid with a CET1 ratio of 10.3%. Giving us flexibility to support growth and navigate the operating environment achieved several strategic milestones in ahead.
Speaker #3: 2025. Chief among those was the successful We also acquisition and integration of Premier Financial. Transforming WestBanco into a 28 billion dollar asset regional financial services partner.
Speaker #3: With this historic acquisition, we now rank among the top 50 publicly traded U.S. financial institutions based on assets. At the same time, we continue to invest in organic growth, expanding into new markets through the opening of loan production offices in Northern Virginia and Knoxville, launching our new healthcare vertical, and optimizing our financial center network and digital banking capabilities to support evolving customer preferences.
Jeffrey Jackson: At the same time, we continued to invest in organic growth, expanding into new markets through the opening of loan production offices in Northern Virginia and Knoxville, launching our new healthcare vertical, and optimizing our financial center network and digital banking capabilities to support evolving customer preferences. We will soon be celebrating the opening of a new financial center in Chattanooga, our first in Tennessee. Underlying all of this is the consistent focus on relationship banking that sets us apart from others. That approach drove record treasury management revenue of $6 million and a record total wealth management assets under management of $10.4 billion. Turning to operational topics, disciplined execution remains the theme. Our dedicated teams, supported by continued strong customer satisfaction, drove deposit growth at fully funded low growth, both year-over-year and quarter-over-quarter.
At the same time, we continued to invest in organic growth, expanding into new markets through the opening of loan production offices in Northern Virginia and Knoxville, launching our new healthcare vertical, and optimizing our financial center network and digital banking capabilities to support evolving customer preferences. We will soon be celebrating the opening of a new financial center in Chattanooga, our first in Tennessee. Underlying all of this is the consistent focus on relationship banking that sets us apart from others. That approach drove record treasury management revenue of $6 million and a record total wealth management assets under management of $10.4 billion. Turning to operational topics, disciplined execution remains the theme. Our dedicated teams, supported by continued strong customer satisfaction, drove deposit growth at fully funded low growth, both year-over-year and quarter-over-quarter.
Speaker #3: And we will soon be celebrating the opening of a new financial center in Chattanooga, our first in Tennessee. Underlying all of this is the consistent focus on relationship banking that sets us apart from others.
Speaker #3: That approach drove record treasury management revenue of 6 million dollars and a record total wealth management assets under management of 10.4 billion dollars. Turning to operational topics, disciplined execution remains the theme.
Speaker #3: Our dedicated teams, supported by continued strong customer satisfaction, drove deposit growth that fully funded loan growth both year over year and quarter over quarter.
Speaker #3: Our Third Quarter deposit campaign delivered strong second-half results with total deposits increasing 5% annualized or more than 6% for core deposit categories. As we strategically allowed higher cost certificates of deposit to run off.
Jeffrey Jackson: Our Q3 deposit campaign delivered strong second half results, with total deposits increasing 5% annualized or more than 6% for core deposit categories, as we strategically allowed higher cost certificates of deposit to run off. We have continued to see a significant pickup in commercial real estate project payoffs, which totaled $415 million during the Q4 and over $900 million for the year. $100 million more than we had anticipated last quarter. As developers continue to take advantage of the current operating environment for permanent financing or sale of project properties, this increase in payoffs created a 4% headwind to loan growth for both the year-over-year and quarter-over-quarter comparisons.
Our Q3 deposit campaign delivered strong second half results, with total deposits increasing 5% annualized or more than 6% for core deposit categories, as we strategically allowed higher cost certificates of deposit to run off. We have continued to see a significant pickup in commercial real estate project payoffs, which totaled $415 million during the Q4 and over $900 million for the year. $100 million more than we had anticipated last quarter. As developers continue to take advantage of the current operating environment for permanent financing or sale of project properties, this increase in payoffs created a 4% headwind to loan growth for both the year-over-year and quarter-over-quarter comparisons.
Speaker #3: We have continued to see a significant pickup in commercial real estate project payoffs, which totaled $415 million during the fourth quarter and over $900 million for the year.
Speaker #3: $100 million more than we had anticipated last quarter. As developers continue to take advantage of the current operating environment for permanent financing or sale of properties.
Speaker #3: This increase in payoffs created a 4% headwind to loan growth for both the year-over-year and quarter-over-quarter comparisons. Despite these elevated payoffs, we delivered solid Fourth Quarter organic loan growth as total loans increased 6% annualized from the Third Quarter and 5% year over year driven by our commercial teams converting pipeline opportunities.
Jeffrey Jackson: Despite these elevated payoffs, we delivered solid Q4 organic loan growth, as total loans increased 6% annualized from the Q3 and 5% year-over-year, driven by our commercial teams converting pipeline opportunities. Since year-end 2021, we have achieved a strong compound annual loan growth rate of 9% without sacrificing credit quality, as our key measures have remained consistent the last several years and favorable to the average of all banks with assets between $20 and $50 billion. As of both year-end and mid-January, our commercial loan pipeline stood at over $1.2 billion, with more than 40% tied to new markets and loan production offices.
Despite these elevated payoffs, we delivered solid Q4 organic loan growth, as total loans increased 6% annualized from the Q3 and 5% year-over-year, driven by our commercial teams converting pipeline opportunities. Since year-end 2021, we have achieved a strong compound annual loan growth rate of 9% without sacrificing credit quality, as our key measures have remained consistent the last several years and favorable to the average of all banks with assets between $20 and $50 billion. As of both year-end and mid-January, our commercial loan pipeline stood at over $1.2 billion, with more than 40% tied to new markets and loan production offices.
Speaker #3: Since year-end 2021, we have achieved a strong compound annual loan growth rate of 9% without sacrificing credit quality. Our key measures have remained consistent over the last several years and are favorable compared to the average of all banks with assets between $20 billion and $50 billion.
Speaker #3: As of both year-end and mid-January, our commercial loan pipeline stood at over $1.2 billion, with more than 40% tied to new markets and loan production offices.
Speaker #3: Despite anticipated elevated CRE payoffs, through the at least first half of the year we continued to expect mid-single-digit year-over-year loan growth during 2026 given the current loan pipeline and the strength of our markets.
Jeffrey Jackson: Despite anticipated elevated CRE payoffs through at least the first half of the year, we continue to expect mid-single digit year-over-year loan growth during 2026, given the current loan pipeline and the strength of our markets. During Q4, our new healthcare vertical team refinanced a major skilled nursing provider in Virginia, serving as the lead bank in the syndication and sole lender for the working capital line of credit. This new relationship includes all operating, reserve, and payroll accounts for their properties, as well as a six-figure treasury management fee relationship. This win highlights the momentum of our healthcare vertical and the cross-team collaboration that helps us deepen relationships and deliver exceptional service. Before turning the call over to Dan to walk through the financials and outlook, I want to recognize our team members for their exceptional execution throughout the year.
Despite anticipated elevated CRE payoffs through at least the first half of the year, we continue to expect mid-single digit year-over-year loan growth during 2026, given the current loan pipeline and the strength of our markets. During Q4, our new healthcare vertical team refinanced a major skilled nursing provider in Virginia, serving as the lead bank in the syndication and sole lender for the working capital line of credit. This new relationship includes all operating, reserve, and payroll accounts for their properties, as well as a six-figure treasury management fee relationship. This win highlights the momentum of our healthcare vertical and the cross-team collaboration that helps us deepen relationships and deliver exceptional service. Before turning the call over to Dan to walk through the financials and outlook, I want to recognize our team members for their exceptional execution throughout the year.
Speaker #3: During the Fourth Quarter, our new healthcare vertical team refinanced a major skilled nursing provider in Virginia, serving as the lead bank in the syndication and sole lender for the working capital line of credit.
Speaker #3: This new relationship includes all operating reserve and payroll accounts for their properties, as well as a six-figure treasury management fee relationship. This win highlights the momentum of our healthcare vertical and the cross-team collaboration that helps us deepen relationships and deliver exceptional service.
Speaker #3: Before turning the call over to Dan to walk through the financials and outlook, I want to recognize our team members for their exceptional execution throughout the year.
Speaker #3: Their efforts were reflected not only in our results, but also in national recognitions we continue to receive for soundness, stability, workplace culture, and trust.
Jeffrey Jackson: Their efforts were reflected not only in our results, but also in national recognitions we continue to receive for soundness, stability, workplace culture, and trust. Dan, I'll turn it over to you.
Their efforts were reflected not only in our results, but also in national recognitions we continue to receive for soundness, stability, workplace culture, and trust. Dan, I'll turn it over to you.
Speaker #3: Dan, I'll turn it over
Speaker #3: to you. Yeah, thanks,
Daniel Weiss: Yeah, thanks, Jeff, and good morning. For the fourth quarter, we reported GAAP net income available to common shareholders of $78 million or $0.81 per share, and when excluding restructuring and merger-related expenses, fourth quarter net income was $81 million or $0.84 per share. On a similar basis, when excluding the day one provision for credit losses on acquired loans, we reported $3.40 per share for the year, as compared to $2.34 last year, representing an increase of 111% from the prior year. To highlight a few of the fourth quarter's accomplishments, we generated strong year-over-year pre-tax, pre-provision core earnings growth of 90%. We funded strong loan growth with deposits, improved the net interest margin to 3.61%, and reduced the efficiency ratio to just under 52%.
Daniel Weiss: Yeah, thanks, Jeff, and good morning. For the fourth quarter, we reported GAAP net income available to common shareholders of $78 million or $0.81 per share, and when excluding restructuring and merger-related expenses, fourth quarter net income was $81 million or $0.84 per share. On a similar basis, when excluding the day one provision for credit losses on acquired loans, we reported $3.40 per share for the year, as compared to $2.34 last year, representing an increase of 111% from the prior year. To highlight a few of the fourth quarter's accomplishments, we generated strong year-over-year pre-tax, pre-provision core earnings growth of 90%. We funded strong loan growth with deposits, improved the net interest margin to 3.61%, and reduced the efficiency ratio to just under 52%.
Speaker #2: Jeff, and good morning. For the fourth quarter, we reported GAAP net income available to common shareholders of $78 million, or $0.81 per share, and when excluding restructuring and merger-related expenses, fourth quarter net income was $81 million, or $0.84 per share.
Speaker #2: On a similar basis, when excluding the Day One provision for credit losses on acquired loans, we reported $3.40 per share for the year, as compared to $2.34 last year, representing an increase of 111% from the prior year.
Speaker #2: To highlight a few of the fourth quarter's accomplishments, we generated strong year-over-year pre-tax, pre-provision, core earnings growth of 90%. We funded strong loan growth with deposits, improved the net interest margin to 3.61%, and reduced the efficiency ratio to just under 52%.
Speaker #2: Our balance sheet reflects the benefits of both the Premier-acquired balance sheet and organic growth. Total assets of $27.7 billion increased 48% year-over-year and included total portfolio loans of $19.2 billion and total securities of $4.5 billion.
Daniel Weiss: Our balance sheet reflects the benefits of both the Premier acquired balance sheet and organic growth. Total assets of $27.7 billion increased 48% year-over-year and included total portfolio loans of $19.2 billion and total securities of $4.5 billion. Total portfolio loans increased 52% year-over-year due to the acquired PFC loans of $5.9 billion and organic growth of more than $650 million dollars, driven by commercial teams across our footprint. Commercial real estate payoffs increased more than anticipated during Q4 and totaled $905 million for the year, roughly $100 million dollars more than we anticipated on our Q3 earnings call, and 2.5 times last year's level. Despite this headwind, though, we delivered solid organic loan growth for both the quarter and the year.
Our balance sheet reflects the benefits of both the Premier acquired balance sheet and organic growth. Total assets of $27.7 billion increased 48% year-over-year and included total portfolio loans of $19.2 billion and total securities of $4.5 billion. Total portfolio loans increased 52% year-over-year due to the acquired PFC loans of $5.9 billion and organic growth of more than $650 million dollars, driven by commercial teams across our footprint. Commercial real estate payoffs increased more than anticipated during Q4 and totaled $905 million for the year, roughly $100 million dollars more than we anticipated on our Q3 earnings call, and 2.5 times last year's level. Despite this headwind, though, we delivered solid organic loan growth for both the quarter and the year.
Speaker #2: Total portfolio loans increased 52% year-over-year due to the acquired PFC loans of 5.9 billion and organic growth of more than 650 million dollars driven by commercial teams across our footprint.
Speaker #2: Commercial real estate payoffs increased more than anticipated during the fourth quarter and totaled $905 million for the year, roughly $100 million more than we anticipated on our third quarter earnings call and 2.5 times last year's level.
Speaker #2: Despite this headwind, though, we delivered solid organic loan growth for both the quarter and the year. We anticipate CRE payoffs to remain elevated during 2026 and currently estimate them to be between $600 and $800 million for the year, but weighted more toward the first half.
Daniel Weiss: We anticipate CRE payoffs to remain elevated during 2026 and currently estimate them to be between $600 and $800 million for the year, but weighted more towards the first half. Deposits increased 53% year-over-year to $21.7 billion, due to acquired PFC deposits of $6.9 billion and organic growth of $662 million, which fully funded our loan growth. On a sequential quarter basis, total deposits increased $385 million due to the efforts of our consumer and business teams during the recent deposit campaign, which more than offset the intentional runoff of $55 million of higher cost certificates of deposit, and the paydown of $50 million in brokered deposits.
We anticipate CRE payoffs to remain elevated during 2026 and currently estimate them to be between $600 and $800 million for the year, but weighted more towards the first half. Deposits increased 53% year-over-year to $21.7 billion, due to acquired PFC deposits of $6.9 billion and organic growth of $662 million, which fully funded our loan growth. On a sequential quarter basis, total deposits increased $385 million due to the efforts of our consumer and business teams during the recent deposit campaign, which more than offset the intentional runoff of $55 million of higher cost certificates of deposit, and the paydown of $50 million in brokered deposits.
Speaker #2: Deposits increased 53% year-over-year to acquired PFC deposits of 6.9 21.7 billion due to billion and organic growth of 662 million which fully funded our loan growth.
Speaker #2: On a sequential quarter basis, total deposits increased 385 million dollars due to the efforts of our consumer and business teams during the recent deposit campaign which more than offset the intentional runoff of 55 million dollars of higher cost certificates of deposit and the paydown of 50 million dollars in broker deposits.
Speaker #2: Turning to capital, credit quality continues to remain stable, as key metrics have remained low from a historical perspective and within a consistent range throughout the last five years.
Daniel Weiss: Turning to capital, credit quality continues to remain stable as key metrics have remained low from a historical perspective and within a consistent range throughout the last five years. As expected, our criticized and classified loans continued to decrease during the fourth quarter to 3.15%, and net charge-offs declined to just 6 basis points of total loans. The allowance for credit losses to total portfolio loans was 1.14% of total loans, or $219 million, consistent with the third quarter, as increases related to loan growth were mostly offset by macroeconomic factors and reductions in qualitative factors. The fourth quarter margin of 3.61% improved 58 basis points on a year-over-year basis through a combination of higher loan and security yields, and lower funding costs.
Turning to capital, credit quality continues to remain stable as key metrics have remained low from a historical perspective and within a consistent range throughout the last five years. As expected, our criticized and classified loans continued to decrease during the fourth quarter to 3.15%, and net charge-offs declined to just 6 basis points of total loans. The allowance for credit losses to total portfolio loans was 1.14% of total loans, or $219 million, consistent with the third quarter, as increases related to loan growth were mostly offset by macroeconomic factors and reductions in qualitative factors. The fourth quarter margin of 3.61% improved 58 basis points on a year-over-year basis through a combination of higher loan and security yields, and lower funding costs.
Speaker #2: As expected, our criticized and classified loans continue to decrease during the Fourth Quarter to 3.15% and net charge-offs declined to just six basis points of total loans.
Speaker #2: The allowance for credit losses to total portfolio loans was 1.14% of total loans or 219 million dollars consistent with the Third Quarter as increases related to loan growth were mostly offset by macroeconomic factors and reductions in qualitative factors.
Speaker #2: The Fourth Quarter margin of 3.61% improved 58 basis points on a year-over-year basis through a combination of higher loan and security yields and lower funding costs.
Speaker #2: The margin increased eight basis points from the third quarter, which was above last quarter's guide of 3 to 5 basis points of improvement, primarily due to exceptional deposit growth, which allowed us to replace higher-cost Federal Home Loan Bank borrowings with lower-cost core deposits.
Daniel Weiss: The margin increased 8 basis points from Q3, which was above last quarter's guide of 3 to 5 basis points of improvement, primarily due to exceptional deposit growth, which allowed us to replace higher cost Federal Home Loan Bank borrowings with lower cost core deposits. Total deposit funding costs, including non-interest-bearing deposits, declined 13 basis points year-over-year and 8 basis points quarter-over-quarter to 184 basis points. For Q4, non-interest income of $43.3 million increased 19% year-over-year, due primarily to the acquisition of Premier. For the year, we reported record non-interest income of $167 million, once again due to the acquisition of Premier and organic growth, including strong treasury management revenue.
The margin increased 8 basis points from Q3, which was above last quarter's guide of 3 to 5 basis points of improvement, primarily due to exceptional deposit growth, which allowed us to replace higher cost Federal Home Loan Bank borrowings with lower cost core deposits. Total deposit funding costs, including non-interest-bearing deposits, declined 13 basis points year-over-year and 8 basis points quarter-over-quarter to 184 basis points. For Q4, non-interest income of $43.3 million increased 19% year-over-year, due primarily to the acquisition of Premier. For the year, we reported record non-interest income of $167 million, once again due to the acquisition of Premier and organic growth, including strong treasury management revenue.
Speaker #2: Total deposit funding costs including non-interest-bearing deposits declined 13 basis points year-over-year and eight basis points quarter-over-quarter to 184 basis points. For income of the Fourth Quarter, non-interest 43.3 million increased 19% year-over-year due primarily to the acquisition of Premier and for the year we reported record non-interest income of 167 million dollars once again due to the acquisition of Premier and organic growth including strong treasury management revenue.
Speaker #2: We again saw a nice improvement in gross swap fees, which increased $2.1 million year-over-year to $3.4 million in the fourth quarter and doubled to $10 million for the full year, reflecting both the interest rate environment and traction within our newest markets.
Daniel Weiss: We again saw a nice improvement in gross swap fees, which increased $2.1 million year-over-year to $3.4 million in Q4 and doubled to $10 million for the full year, reflecting both the interest rate environment and traction within our newest markets. Trust fees were also at record levels for both Q4 and the year. Non-interest expense, excluding restructuring and merger-related costs for Q4 2025, was $144.4 million, an increase of 44% year-over-year due to the addition of Premier's expense base, higher Core Deposit Intangible asset amortization that was created from the acquisition, and higher FDIC insurance expense due to our larger asset size. On a similar basis, operating expenses were down slightly from Q3, reflecting our focus on managing discretionary expenses.
We again saw a nice improvement in gross swap fees, which increased $2.1 million year-over-year to $3.4 million in Q4 and doubled to $10 million for the full year, reflecting both the interest rate environment and traction within our newest markets. Trust fees were also at record levels for both Q4 and the year. Non-interest expense, excluding restructuring and merger-related costs for Q4 2025, was $144.4 million, an increase of 44% year-over-year due to the addition of Premier's expense base, higher Core Deposit Intangible asset amortization that was created from the acquisition, and higher FDIC insurance expense due to our larger asset size. On a similar basis, operating expenses were down slightly from Q3, reflecting our focus on managing discretionary expenses.
Speaker #2: Trust fees were also at record levels for both the fourth quarter and the year. Non-interest expense, excluding restructuring and merger-related costs for the fourth quarter of 2025, was $144.4 million, an increase of 44% year-over-year due to the addition of Premier's expense base, higher core deposit and tangible asset amortization that was created from the acquisition, and higher FDIC insurance expense due to our larger asset size.
Speaker #2: On a similar basis, operating expenses were down slightly from the Third Quarter reflecting our focus on managing discretionary expenses. As I mentioned, our Fourth Quarter efficiency ratio came in just below 52%.
Daniel Weiss: As I mentioned, our Q4 efficiency ratio came in just below 52%. I'd like to highlight here that we have updated our methodology for calculating our efficiency ratio to exclude both net security gains or losses from the denominator and amortization of intangibles from the numerator. This update makes our ratio more consistent with how our peers and other organizations calculate efficiency ratio, and the ratios for all periods reported in our Q4 earnings release reflect this change, and a reconciliation can be found in the non-GAAP measure section of the release. Turning to capital, during the Q4, we redeemed $150 million of our outstanding Series A Preferred Stock on 15 November, and $50 million of subdebt acquired for Premier on 30 December, using the proceeds from our Series B Preferred Stock offering.
As I mentioned, our Q4 efficiency ratio came in just below 52%. I'd like to highlight here that we have updated our methodology for calculating our efficiency ratio to exclude both net security gains or losses from the denominator and amortization of intangibles from the numerator. This update makes our ratio more consistent with how our peers and other organizations calculate efficiency ratio, and the ratios for all periods reported in our Q4 earnings release reflect this change, and a reconciliation can be found in the non-GAAP measure section of the release. Turning to capital, during the Q4, we redeemed $150 million of our outstanding Series A Preferred Stock on 15 November, and $50 million of subdebt acquired for Premier on 30 December, using the proceeds from our Series B Preferred Stock offering.
Speaker #2: I'd like to highlight here that we have updated our methodology for calculating our efficiency ratio to exclude both net security gains or losses from the denominator, and amortization of intangibles from the numerator.
Speaker #2: This update makes our ratio more consistent with how our peers and other organizations calculate efficiency ratio and the ratios for all periods reported in our Fourth Quarter earnings release reflect this change and a reconciliation can be found in the non-GAAP measures section of the release.
Speaker #2: Turning to capital, during the Fourth Quarter we redeemed outstanding Series A preferred stock on 150 million dollars of our November 15th and 50 million dollars of sub-debt acquired from Premier on December 30th using the proceeds from our Series B preferred stock offering.
Speaker #2: As noted in yesterday's earnings release, preferred dividends reduced earnings available to common shareholders by $13 million, which represented the overlapping quarterly dividends on both the Series A and Series B preferred stock, as well as the Series A redemption premium.
Daniel Weiss: As noted in yesterday's earnings release, preferred dividends reduced earnings available to common shareholders by $13 million, which represented the overlapping quarterly dividends on both the Series A Preferred Stock and Series B Preferred Stock, as well as the Series A redemption premium. Our CET1 ratio as of December 31, improved 24 basis points to 10.34%, and we anticipate it to build 15 to 20 basis points per quarter on a go-forward basis. Turning to our outlook for 2026, we are currently modeling two 25 basis point Fed rate cuts in April and July.
As noted in yesterday's earnings release, preferred dividends reduced earnings available to common shareholders by $13 million, which represented the overlapping quarterly dividends on both the Series A Preferred Stock and Series B Preferred Stock, as well as the Series A redemption premium. Our CET1 ratio as of December 31, improved 24 basis points to 10.34%, and we anticipate it to build 15 to 20 basis points per quarter on a go-forward basis. Turning to our outlook for 2026, we are currently modeling two 25 basis point Fed rate cuts in April and July.
Speaker #2: Our CE21 ratio as of December 31st improved 24 basis points to 10.34% and we anticipated to build 15 to 20 basis points per quarter on a go-forward basis.
Speaker #2: Turning to our outlook for 2026, we are currently modeling two 25 basis point Fed rate cuts in April and July. Reflecting our exceptional Fourth Quarter deposit growth which accelerated margin expansion we anticipate our First Quarter net interest margin to be roughly consistent with our Fourth Quarter margin of 3.61% and then increase 3 to 5 basis points in the Second Quarter and then modestly grow into the high 360 range in the back half of the year.
Daniel Weiss: Reflecting our exceptional fourth quarter deposit growth, which accelerated margin expansion, we anticipate our first quarter net interest margin to be roughly consistent with our fourth quarter margin of 3.61%, and then increase 3 to 5 basis points in the second quarter, and then modestly grow into the high 3.60% range in the back half of the year. This assumes, among other things, that loan growth is fully funded by deposits and a slightly steeper yield curve. Generally speaking, we model first quarter fee income overall to be consistent with the fourth quarter. Trust fees should benefit modestly from organic growth and influenced by equity and fixed income market trends. As a reminder, first quarter trust fees are seasonally higher due to tax preparation fees.
Reflecting our exceptional fourth quarter deposit growth, which accelerated margin expansion, we anticipate our first quarter net interest margin to be roughly consistent with our fourth quarter margin of 3.61%, and then increase 3 to 5 basis points in the second quarter, and then modestly grow into the high 3.60% range in the back half of the year. This assumes, among other things, that loan growth is fully funded by deposits and a slightly steeper yield curve. Generally speaking, we model first quarter fee income overall to be consistent with the fourth quarter. Trust fees should benefit modestly from organic growth and influenced by equity and fixed income market trends. As a reminder, first quarter trust fees are seasonally higher due to tax preparation fees.
Speaker #2: This assumes, among other things, that loan growth is fully funded by deposits and a slightly steeper yield curve. Generally speaking, we model first quarter fee income overall to be consistent with the fourth quarter. Trust fees should benefit modestly from organic growth and be influenced by equity and fixed income market trends. And, as a reminder, first quarter trust fees are seasonally higher due to tax preparation fees.
Speaker #2: Securities brokerage revenue is anticipated to grow slightly from the range of the last few quarters due to modest organic growth. Mortgage banking should grow modestly over 2025 beginning in the spring driven by improved market conditions and recent hiring initiatives.
Daniel Weiss: Securities brokerage revenue is anticipated to grow slightly from the range of the last few quarters due to modest organic growth. Mortgage banking should grow modestly over 2025, beginning in the spring, driven by improved market conditions and recent hiring initiatives. Total treasury management revenues should see increases from 2025 as the compounding effect of our services continue to expand. Gross commercial swap fee income, excluding market adjustments, should be in the $7 to 10 million range. Fully death benefit income added $700,000 to the fourth quarter, which is not expected to repeat during 2026. Similarly, the fourth quarter loss on the sale of assets is not expected to repeat. We remain focused on delivering disciplined expense management to drive positive operating leverage and will continue our efforts throughout 2026.
Securities brokerage revenue is anticipated to grow slightly from the range of the last few quarters due to modest organic growth. Mortgage banking should grow modestly over 2025, beginning in the spring, driven by improved market conditions and recent hiring initiatives. Total treasury management revenues should see increases from 2025 as the compounding effect of our services continue to expand. Gross commercial swap fee income, excluding market adjustments, should be in the $7 to 10 million range. Fully death benefit income added $700,000 to the fourth quarter, which is not expected to repeat during 2026. Similarly, the fourth quarter loss on the sale of assets is not expected to repeat. We remain focused on delivering disciplined expense management to drive positive operating leverage and will continue our efforts throughout 2026.
Speaker #2: And total treasury management revenue should see increases from 2025 as the compounding effect of our services continues to expand. Gross commercial swap fee income, excluding market adjustments, should be in the $7 to $10 million range.
Speaker #2: Fully debt benefit income added $700,000 to the fourth quarter, which is not expected to repeat during 2026, and similarly, the fourth quarter loss on the sale of assets is not expected to repeat.
Speaker #2: We remain focused on delivering disciplined expense management to drive positive operating leverage and will continue our efforts throughout 2026. As previously disclosed we successfully closed 27 financial centers on January 23rd and the anticipated annual savings of approximately 6 million dollars will begin to be realized midway through the First Quarter of 2026.
Jeffrey Jackson: ...As previously disclosed, we successfully closed 27 financial centers on 23 January, and the anticipated annual savings of approximately $6 million will begin to be realized midway through Q1 2026, helping to offset the impact of inflation. Occupancy expense should be flat to slightly down as compared to 2025 due to branch optimization efforts, while equipment and software expenses are expected to increase somewhat as compared to 25, as we continue to invest in products, services, and technology to improve the customer experience and drive revenue growth. Marketing is expected to increase approximately $800,000 per quarter due to targeting new customers, general campaigns to increase brand awareness in our newer markets, and deepen relationships with existing customers with a focus on deposit gathering campaigns.
...As previously disclosed, we successfully closed 27 financial centers on 23 January, and the anticipated annual savings of approximately $6 million will begin to be realized midway through Q1 2026, helping to offset the impact of inflation. Occupancy expense should be flat to slightly down as compared to 2025 due to branch optimization efforts, while equipment and software expenses are expected to increase somewhat as compared to 25, as we continue to invest in products, services, and technology to improve the customer experience and drive revenue growth. Marketing is expected to increase approximately $800,000 per quarter due to targeting new customers, general campaigns to increase brand awareness in our newer markets, and deepen relationships with existing customers with a focus on deposit gathering campaigns.
Speaker #2: Helping to offset the impact of inflation. Occupancy expense should be flat to slightly down as compared to 2025 due to branch optimization efforts while equipment and software expenses are expected to increase somewhat as compared to '25 as we continue to invest in products, services, and technology to improve the customer experience and drive revenue growth.
Speaker #2: Marketing is expected to increase approximately $800,000 per quarter due to targeting new customers, general campaigns to increase brand awareness in our newer markets, and deepening relationships with existing customers with a focus on deposit-gathering campaigns.
Speaker #2: Based on what we know today, we expect our expense run rate during the first quarter to be roughly consistent with the fourth quarter, increase in the second quarter from mid-year merit increases, revenue-producing hires, and marketing initiatives, and then grow modestly in the back half of the year from the full effect of annual merit increases and investment initiatives in revenue-enhancing technology.
Jeffrey Jackson: Based on what we know today, we expect our expense run rate during Q1 to be roughly consistent with Q4, increase in Q2 from mid-year merit increases, revenue-producing hires, and marketing initiatives, and then grow modestly in the back half of the year from the full effect of annual merit increases and investment initiatives in revenue-enhancing technologies. The provision for credit losses will depend upon changes to the macroeconomic forecast and qualitative factors, as well as various credit quality metrics, including potential charge-offs, criticized and classified loan balances, delinquencies, changes in prepayment speeds, and future loan growth. Beginning with Q1 of 2026, the dividends on our Series B Preferred Stock will be $4.24 million per quarter.
Based on what we know today, we expect our expense run rate during Q1 to be roughly consistent with Q4, increase in Q2 from mid-year merit increases, revenue-producing hires, and marketing initiatives, and then grow modestly in the back half of the year from the full effect of annual merit increases and investment initiatives in revenue-enhancing technologies. The provision for credit losses will depend upon changes to the macroeconomic forecast and qualitative factors, as well as various credit quality metrics, including potential charge-offs, criticized and classified loan balances, delinquencies, changes in prepayment speeds, and future loan growth. Beginning with Q1 of 2026, the dividends on our Series B Preferred Stock will be $4.24 million per quarter.
Speaker #2: The provision for credit losses will depend upon changes to the macroeconomic forecast and qualitative factors as well as various credit quality metrics including potential charge-offs criticizing classified loan balances future loan growth.
Speaker #2: The provision for credit losses will depend upon changes to the macroeconomic forecast and qualitative factors, as well as various credit quality metrics, including potential charge-offs, criticized and classified loan balances, delinquencies, changes in prepayment speeds, and, beginning with the first quarter of 2026, the dividends on our Series B preferred stock will be $4.24 million per quarter.
Speaker #2: And lastly we currently anticipate our full year effective tax rate to be between 20.5 and 21 and a half percent which is slightly higher than 2025 due to a lower percentage of tax-exempt income to total income.
Jeffrey Jackson: And lastly, we currently anticipate our full year effective tax rate to be between 20.5% and 21.5%, which is slightly higher than 2025, due to a lower percentage of tax-exempt income to total income. And so overall, we're pleased with our growth during 2025 and excited about the opportunities in 2026 as we continue to execute on our growth initiatives to deliver shareholder value. Operator, we're now ready to take questions. Would you please review the instructions?
And lastly, we currently anticipate our full year effective tax rate to be between 20.5% and 21.5%, which is slightly higher than 2025, due to a lower percentage of tax-exempt income to total income. And so overall, we're pleased with our growth during 2025 and excited about the opportunities in 2026 as we continue to execute on our growth initiatives to deliver shareholder value. Operator, we're now ready to take questions. Would you please review the instructions?
Speaker #2: And so overall we're pleased with our growth during 2025 and excited about the opportunities in 2026 as we continue to execute on our growth initiatives to deliver shareholder value.
Speaker #2: Operator, we're now ready to take questions. Would you please review the instructions? We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone.
Operator: We will now begin the question-and-answer session. To ask a question, you may press Star, then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw the question, please press Star then two. Please limit yourselves to one question and one follow-up. At this time, we will pause momentarily to assemble our roster. Our first question comes from Daniel Tamayo with Raymond James. Please go ahead.
Operator: We will now begin the question-and-answer session. To ask a question, you may press Star, then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw the question, please press Star then two. Please limit yourselves to one question and one follow-up. At this time, we will pause momentarily to assemble our roster. Our first question comes from Daniel Tamayo with Raymond James. Please go ahead.
Speaker #2: If you are using a speakerphone please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw the question please press star then two.
Speaker #2: Please limit yourselves to one question and one follow-up. At this time we will pause momentarily to assemble our roster. Our first question comes James.
Speaker #2: Please go ahead.
Speaker #2: Daniel Tamayo with Raymond, thank you.
Speaker #3: you. Good morning everybody.
Daniel Tamayo: Thank you. Good morning, everybody.
Daniel Tamayo: Thank you. Good morning, everybody.
Jeffrey Jackson: Good morning, Danny.
Jeffrey Jackson: Good morning, Danny.
Speaker #5: Good Good morning Danny. morning.
Daniel Weiss: Morning.
Daniel Weiss: Morning.
Speaker #3: Yeah maybe just to start off Jeff on the loan growth expectation and the payoffs expectation embedded in that. You know I guess if you're thinking about that you know I think you said 600 to 800 million in '26 waited to the first half of the year I'm assuming that implies kind of a step down from the Fourth Quarter number which was really elevated at 415 but you know maybe just walk us through how you're thinking about the pace of payoffs through the year and what's driving that assumption in your
Daniel Tamayo: Yeah, maybe just to start off, Jeff, on the loan growth expectation and the payoffs expectation embedded in that. You know, I guess if you're thinking about the, you know, I think you said $600 to 800 million in 2026, weighted to the first half of the year. I'm assuming that implies kind of a step down from this, the Q4 number, which was really elevated, the $415 million. But, you know, maybe just walk us through how you're thinking about the pace of payoffs through the year and what's driving that assumption in your modeling.
Daniel Tamayo: Yeah, maybe just to start off, Jeff, on the loan growth expectation and the payoffs expectation embedded in that. You know, I guess if you're thinking about the, you know, I think you said $600 to 800 million in 2026, weighted to the first half of the year. I'm assuming that implies kind of a step down from this, the Q4 number, which was really elevated, the $415 million. But, you know, maybe just walk us through how you're thinking about the pace of payoffs through the year and what's driving that assumption in your modeling.
Speaker #3: modeling. Yeah sure.
Jeffrey Jackson: Yeah, sure. So obviously, we had a tremendous amount of payoffs last year. We do think some of that will continue, especially in the first half of the year. What we've been seeing, as we've mentioned, is large CRE payoffs, whether they're selling or whether they're refinancing to the permanent market. The pipelines continue to remain really strong, so I think that will be an offset to the payoffs. But if you think about, you know, looking back when people financed projects when rates were much lower prior to rates getting elevated, normally we would do a construction loan, and then it would become stabilized, and then it would typically roll off our and all banks' balance sheets.
Jeffrey Jackson: Yeah, sure. So obviously, we had a tremendous amount of payoffs last year. We do think some of that will continue, especially in the first half of the year. What we've been seeing, as we've mentioned, is large CRE payoffs, whether they're selling or whether they're refinancing to the permanent market. The pipelines continue to remain really strong, so I think that will be an offset to the payoffs. But if you think about, you know, looking back when people financed projects when rates were much lower prior to rates getting elevated, normally we would do a construction loan, and then it would become stabilized, and then it would typically roll off our and all banks' balance sheets.
Speaker #4: So obviously we had a tremendous amount of payoffs last year we do think some of that will continue especially in the first half of the year what we've been seeing as we've mentioned is large CRE payoffs whether they're selling or whether they're refinancing to the permanent market.
Speaker #4: The pipelines continue to remain really strong, so I think that will be an offset to the payoffs. But if you think about, you know, looking back when people refinanced projects when rates were much lower, prior to rates getting elevated, normally we would do a construction loan, and then it would become stabilized, and then it would typically roll off our—and all banks’—balance sheets.
Speaker #4: I think what you had was because rates elevated and went up so quickly these loans stayed on ours and other banks balance sheets for a lot longer period of time.
Jeffrey Jackson: I think what you had was, because rates elevated and went up so quickly, these loans stayed on ours and other banks' balance sheets for a lot longer period of time. Now that you've seen rates slightly come down, and permanent financing is really opening up, we've seen these elevated payoffs. We're, we're no different than, I think, many other banks who, who do a lot of CRE. But as far as this year, we, we do believe, just based on our current forecast and talking to customers, that it should slow down, especially compared to Q4. And with putting that together, along with our pipelines continuing to remain incredibly strong, on top of just the other opportunities we have with the LPOs and healthcare, and I, I can get into that more, later.
I think what you had was, because rates elevated and went up so quickly, these loans stayed on ours and other banks' balance sheets for a lot longer period of time. Now that you've seen rates slightly come down, and permanent financing is really opening up, we've seen these elevated payoffs. We're, we're no different than, I think, many other banks who, who do a lot of CRE. But as far as this year, we, we do believe, just based on our current forecast and talking to customers, that it should slow down, especially compared to Q4. And with putting that together, along with our pipelines continuing to remain incredibly strong, on top of just the other opportunities we have with the LPOs and healthcare, and I, I can get into that more, later.
Speaker #4: Now that you've seen rates slightly come down and the permanent market is really opening up, we've seen these elevated payoffs. We're no different than, I think, many other banks who do a lot of CRE.
Speaker #4: But as far as this year, we do believe, just based on our current forecast and talking to customers, that it should slow down, especially compared to the fourth quarter. And with putting that together along with our pipelines continuing to remain incredibly strong, on top of just the other opportunities we have with the LPOs and healthcare—and I can get into that more later.
Speaker #4: But that's why we feel like loan growth should be in the mid-single digits, and depending on how the back half of the year goes, it could be even higher.
Jeffrey Jackson: But, that's why we feel like loan growth should be in the mid single digits, and depending on how the back half of the year goes, could be even better.
But, that's why we feel like loan growth should be in the mid single digits, and depending on how the back half of the year goes, could be even better.
Speaker #4: better.
Speaker #3: That's
Daniel Tamayo: That's great. And you actually took my next question, or you started to, which is, which is perfect. Maybe you can give us some more details on that, on that healthcare vertical.
Daniel Tamayo: That's great. And you actually took my next question, or you started to, which is, which is perfect. Maybe you can give us some more details on that, on that healthcare vertical.
Speaker #3: Great, and you actually took my next question—or you started to—which is perfect. Maybe you can give us some more details on that healthcare vertical.
Speaker #4: Yes yeah it was a tremendous lift for us last year the team I believe did around 500 million in new loans we had a tremendous amount of deposits and fees I believe they accounted for about 3 million of the swap fees that we did last year as well.
Jeffrey Jackson: Yes. Yeah, it was a tremendous lift for us last year. The team, I believe, did around $500 million in new loans. We had a tremendous amount of deposits and, fees. I believe they accounted for about $3 million of the swap fees that we did last year as well. So we feel like that will be one of the main, growth engines of us for this year, and, feel like that is a great offset to many of the CRE payoffs, that we should see in Q1 even. Also, kind of following up with the LPOs, those are really going well. Also, Chattanooga and Knoxville, Northern Virginia's really started to take off, and we're really continuing to look at other cities.
Jeffrey Jackson: Yes. Yeah, it was a tremendous lift for us last year. The team, I believe, did around $500 million in new loans. We had a tremendous amount of deposits and, fees. I believe they accounted for about $3 million of the swap fees that we did last year as well. So we feel like that will be one of the main, growth engines of us for this year, and, feel like that is a great offset to many of the CRE payoffs, that we should see in Q1 even. Also, kind of following up with the LPOs, those are really going well. Also, Chattanooga and Knoxville, Northern Virginia's really started to take off, and we're really continuing to look at other cities.
Speaker #4: I feel like that will be one of the main growth engines for us this year, and I feel like that is a great offset to many of the CRE payoffs that we should see in the first quarter, even.
Speaker #4: Also kind of following up with the LPOs those are really going well also Chattanooga and Knoxville Northern Virginia has really started to take off and we're really continuing to look at other cities.
Speaker #4: I've mentioned Richmond before, but we're also looking at Atlanta and maybe even other Southeastern cities as we move forward. You know, we really kind of feel like we've perfected the LPO strategy, and we're seeing it in our results, we're seeing it in our pipelines, and we're going to continue doing that, I would say, the rest of this year.
Jeffrey Jackson: I've mentioned Richmond before, but also looking at Atlanta and maybe even other Southeastern cities, as we move forward. You know, we've really kind of feel like we've perfected the LPO strategy, and we -- we're seeing it in our results, we're seeing it in our pipelines, and we're going to continue doing that, I would say, the rest of this year.
I've mentioned Richmond before, but also looking at Atlanta and maybe even other Southeastern cities, as we move forward. You know, we've really kind of feel like we've perfected the LPO strategy, and we -- we're seeing it in our results, we're seeing it in our pipelines, and we're going to continue doing that, I would say, the rest of this year.
Speaker #3: Okay, well, terrific. Thanks for all the color, and I appreciate it.
Daniel Weiss: Okay. Well, terrific. Thanks for all the color, and appreciate it, Jeff.
Daniel Weiss: Okay. Well, terrific. Thanks for all the color, and appreciate it, Jeff.
Speaker #3: Jeff. Thank
Speaker #4: you. Our next question comes
Jeffrey Jackson: Thank you.
Jeffrey Jackson: Thank you.
Operator: Our next question comes from Russell Gunther with Stephens. Please go ahead.
Operator: Our next question comes from Russell Gunther with Stephens. Please go ahead.
Speaker #2: From Russell Gunther with Stevens, please go ahead.
Speaker #5: Hey good morning
Russell Gunther: Hey, good morning, guys.
Russell Gunther: Hey, good morning, guys.
Speaker #4: Hey good morning Russell.
Jeffrey Jackson: Hey, good morning, Russell.
Jeffrey Jackson: Hey, good morning, Russell.
Daniel Weiss: Good morning, Russell.
Daniel Weiss: Good morning, Russell.
Russell Gunther: Wanted to start on the expense guide. Appreciate the color there. It sounds like, you know, we're gonna be flat in Q1, step up a bit in Q2. We had the branch closures kind of, you know, early in the quarter. So, fair to say that that's all captured in this guide, the full savings from that? And then, you know, you guys tend to evaluate the branch network on an annual basis, typically in the back half of the year. You know, is that something that you would look to do again this year, and is any of that reflected in your 2026 commentary, Dan?
Speaker #4: Wanted to start Russell. guys.
Russell Gunther: Wanted to start on the expense guide. Appreciate the color there. It sounds like, you know, we're gonna be flat in Q1, step up a bit in Q2. We had the branch closures kind of, you know, early in the quarter. So, fair to say that that's all captured in this guide, the full savings from that? And then, you know, you guys tend to evaluate the branch network on an annual basis, typically in the back half of the year. You know, is that something that you would look to do again this year, and is any of that reflected in your 2026 commentary, Dan?
Speaker #4: on the expense guide Good morning appreciate the color there. It sounds like you know we're going to be going to be flat in one queue step up a bit in two queue we had the branch closures kind of you know early in the quarter so fair to say that that's all captured in this guide the full savings from that and then you know you guys tend to evaluate the branch network on an annual basis typically in the back half of the year you know is that something that you would look to do again this year and is any of that reflected in your 2026 commentary Dan?
Jeffrey Jackson: Yes, I'll, I'll take the branch piece. Absolutely. So as you know, we, we always evaluate the branch network. Just throwing out that, you know, since 2019, we've closed about 93 branches, so I would anticipate us to continue to evaluate that. It is not in any of these numbers, just to be clear. But yes, I, I think it's safe to say we will definitely evaluate it, and that would be a potential addition to reduce our expenses, at some point in time this year.
Speaker #4: Yes, I'll take the branch piece, absolutely. So, as you know, we always evaluate the branch network. Just throwing out that, you know, since 2019 we've closed about 93 branches, so I would anticipate us to continue to evaluate that. It is not in any of these numbers, just to be clear.
Jeffrey Jackson: Yes, I'll, I'll take the branch piece. Absolutely. So as you know, we, we always evaluate the branch network. Just throwing out that, you know, since 2019, we've closed about 93 branches, so I would anticipate us to continue to evaluate that. It is not in any of these numbers, just to be clear. But yes, I, I think it's safe to say we will definitely evaluate it, and that would be a potential addition to reduce our expenses, at some point in time this year.
Speaker #4: But yes, I think it's safe to say we will definitely evaluate it, and that would be a potential addition to reduce our expenses at some point in time this year.
Speaker #5: Okay, excellent, thank you, Jeff. And then just a follow-up question, or second question from me, switching gears to the margin outlook. Maybe Dan, if you could just address the puts and takes behind the cadence of the NIM—you know, flat in the coming quarter, a nicer step up in Q2, and then the moderation.
Russell Gunther: Okay. Excellent. Thank you, Jeff. And then just a follow-up question or second question for me, switching gears to the margin outlook. Maybe, Dan, if you could just address the puts and takes behind the cadence of the NIM, you know, flat in the coming quarter, a nicer step up in Q2, and then the moderation. What's sort of underpinning your expectations for that glide path?
Russell Gunther: Okay. Excellent. Thank you, Jeff. And then just a follow-up question or second question for me, switching gears to the margin outlook. Maybe, Dan, if you could just address the puts and takes behind the cadence of the NIM, you know, flat in the coming quarter, a nicer step up in Q2, and then the moderation. What's sort of underpinning your expectations for that glide path?
Speaker #5: What sort of underpinning your expectations for that? Glide path.
Speaker #3: Yeah sure Russell I think first what I would say is you think about the guidance that we've been providing three to five basis points of margin improvement per quarter what we really saw here and I mentioned this in the prepared commentary in the Fourth Quarter was just extraordinary growth in deposits particularly non interest bearing and that deposit growth occurred pretty early in the Fourth Quarter and was at times you know 500 million plus intra quarter and so we were able to pay down federal home loan bank borrowings during a good majority of the quarter which kind of provided a really that's how we kind of picked up you know nice lift to margin so eight basis points of margin improvement or expansion over the Third Quarter versus kind of that three to five that we were you know projecting.
Daniel Weiss: Yeah, sure, Russell. I think, first, what I would say is, if you think about the guidance that we've been providing 3 to 5 basis points of margin improvement, per quarter, what we really saw here, and I mentioned this in the prepared commentary, in Q4, was just extraordinary growth in deposits, particularly non-interest bearing. That deposit growth occurred, pretty early in Q4 and, was at times, you know, $500 million plus, intraquarter. And so we were able to pay down Federal Home Loan Bank borrowings during a good majority of the quarter, which kind of provided a really nice lift to margin.
Daniel Weiss: Yeah, sure, Russell. I think, first, what I would say is, if you think about the guidance that we've been providing 3 to 5 basis points of margin improvement, per quarter, what we really saw here, and I mentioned this in the prepared commentary, in Q4, was just extraordinary growth in deposits, particularly non-interest bearing. That deposit growth occurred, pretty early in Q4 and, was at times, you know, $500 million plus, intraquarter. And so we were able to pay down Federal Home Loan Bank borrowings during a good majority of the quarter, which kind of provided a really nice lift to margin.
Daniel Weiss: So that's how we kind of picked up, you know, 8 basis points of margin improvement or expansion over the Q3 versus kind of that 3 to 5 that we were, you know, projecting. But what I would say is we really kind of, you know, effectively pulled forward, I would say, the next 3 to 5 basis points that would have otherwise been projected for the Q1 into the Q4, and that's how we get kind of a flatter, you know, margin just on a, you know, a linked quarter basis when we look towards the Q1.
So that's how we kind of picked up, you know, 8 basis points of margin improvement or expansion over the Q3 versus kind of that 3 to 5 that we were, you know, projecting. But what I would say is we really kind of, you know, effectively pulled forward, I would say, the next 3 to 5 basis points that would have otherwise been projected for the Q1 into the Q4, and that's how we get kind of a flatter, you know, margin just on a, you know, a linked quarter basis when we look towards the Q1.
Speaker #3: But what I would say is we really kind of you know effectively pulled forward I would say the next three to five basis points that would have otherwise been projected for the First Quarter into the Fourth Quarter and that's how we get kind of a flatter you know margin just on a you know a linked quarter basis when we look towards towards the First Quarter.
Speaker #3: I would also tell you you know typically we see deposit flows like outflows in the early half of the first half really of the First Quarter and we're you know we've seen those and so that's another like kind of what we see as like a headwind something that normally would it's very normal from you know from history but at the same time whenever you've got as much deposit growth as we had intra quarter throughout the Fourth Quarter and then kind of some of those deposits pulling back some for you know the first half of the First Quarter that also kind of you know your borrowing from the federal home loan bank at 4% instead of you know holding you know non interest bearing or assets or liabilities you know that are funding it you know 2% so I think that's really what what is driving for the most part that you know flat ish margin for compared to the First Quarter but then whenever we look forward you know into the Second Quarter you know kind of three to five basis points is what we're guiding to you know recognizing once again kind of the benefit of the continued benefit and grind of you know loan and security repricing you know loan growth etc.
Daniel Weiss: I would also tell you, you know, typically we see, deposit flows, like outflows, in the, in the early half or the first half, really, of the first quarter, and you know, we've seen those, and so that's another, like, kind of what we see as, like, a headwind, something that normally would ... It, it's very normal, from you know, from history.
I would also tell you, you know, typically we see, deposit flows, like outflows, in the, in the early half or the first half, really, of the first quarter, and you know, we've seen those, and so that's another, like, kind of what we see as, like, a headwind, something that normally would ... It, it's very normal, from you know, from history.
Daniel Weiss: But at the same time, whenever you've got as much deposit growth as we had intraquarter throughout the Q4, and then kind of some of those deposits pulling back some for, you know, the first half of the Q1, that also kind of, you know, you're borrowing from the Federal Home Loan Bank at 4% instead of, you know, holding non-interest bearing or assets or liabilities, you know, that are funding at 2%. So I think that's really what is driving, for the most part, that, you know, flat-ish margin compared to the Q1.
But at the same time, whenever you've got as much deposit growth as we had intraquarter throughout the Q4, and then kind of some of those deposits pulling back some for, you know, the first half of the Q1, that also kind of, you know, you're borrowing from the Federal Home Loan Bank at 4% instead of, you know, holding non-interest bearing or assets or liabilities, you know, that are funding at 2%. So I think that's really what is driving, for the most part, that, you know, flat-ish margin compared to the Q1.
Daniel Weiss: But then whenever we look forward, you know, into the second quarter, you know, kind of 3 to 5 basis points is what we're guiding to, you know, recognizing, once again, kind of the benefit of, the continued benefit, and grind of, you know, loan and security repricing, you know, loan growth, et cetera. We continue, you know, to see and expect to see reduction in cost of funds. You know, we'll, we'll continue to see quick kind of downward repricing of our short-term, you know, Federal Home Loan Bank borrowings. You know, of our $1.2 billion, $1.1 billion is, kind of, you know, six weeks or less. And so that all of this kind of will help drive, you know, that margin improvement.
But then whenever we look forward, you know, into the second quarter, you know, kind of 3 to 5 basis points is what we're guiding to, you know, recognizing, once again, kind of the benefit of, the continued benefit, and grind of, you know, loan and security repricing, you know, loan growth, et cetera. We continue, you know, to see and expect to see reduction in cost of funds. You know, we'll, we'll continue to see quick kind of downward repricing of our short-term, you know, Federal Home Loan Bank borrowings. You know, of our $1.2 billion, $1.1 billion is, kind of, you know, six weeks or less. And so that all of this kind of will help drive, you know, that margin improvement.
Speaker #3: We continue, you know, to see and expect to see reduction in cost of funds. You know, we'll continue to see quick kind of downward repricing of our short-term, you know, Federal Home Loan Bank borrowings. You know, of our $1.2 billion, $1.1 billion is, kind of, you know, six weeks or less, and so that—all of this—kind of will help drive, you know, that margin improvement. It's happening in the background in the first quarter as well, it's just not as apparent. The other piece I would just say is that, you know, the CD book will continue to reprice, particularly it becomes more evident in the second quarter. We have about $2.1 billion in CDs that are going to be repricing here in the next two quarters. About a billion is repricing here in the first quarter, from kind of 3.75% downward, 25 to 50 basis points, and then another $1.1 billion in the second quarter. And really, the repricing of CDs here in the first quarter from that 3.75% down into the, say, you know, 3.25% range is where we also see some nice lift in terms of margin, as we're going to continue to see funding costs accelerate downward, relative to the reduction in loan yields. So, I think, you know, that's kind of how we look at it. And then, again, that continued grind into the back half of the year gets us, you know, as we model today, somewhere in the high, you know—
Daniel Weiss: It's happening in the background in Q1 as well; it's just not as apparent. The other piece I would just say is that, you know, the CD book will continue to reprice, particularly it becomes more evident in Q2. We have about $2.1 billion in CDs that are going to be repricing here in the next two quarters. About $1 billion is repricing here in Q1, from kind of 3.75 downward, 25 to 50 basis points, and then another $1.1 billion in Q2. And really, the repricing of CDs here in Q1 from that 3.75 down into the-...
It's happening in the background in Q1 as well; it's just not as apparent. The other piece I would just say is that, you know, the CD book will continue to reprice, particularly it becomes more evident in Q2. We have about $2.1 billion in CDs that are going to be repricing here in the next two quarters. About $1 billion is repricing here in Q1, from kind of 3.75 downward, 25 to 50 basis points, and then another $1.1 billion in Q2. And really, the repricing of CDs here in Q1 from that 3.75 down into the-...
Daniel Weiss: Say, you know, 3.25 range is where we also see some nice lift in terms of margin, as we're going to continue to see funding costs accelerate downward relative to the reduction in loan yields. So I think, you know, that's kind of how we look at it, and then again, that continued grind into the back half of the year gets us, you know, as we model today, somewhere in the high 3.60s.
Say, you know, 3.25 range is where we also see some nice lift in terms of margin, as we're going to continue to see funding costs accelerate downward relative to the reduction in loan yields. So I think, you know, that's kind of how we look at it, and then again, that continued grind into the back half of the year gets us, you know, as we model today, somewhere in the high 3.60s.
Speaker #3: 360s.
Speaker #5: Got it
Russell Gunther: Got it. Okay, very helpful, guys. Thank you both.
Russell Gunther: Got it. Okay, very helpful, guys. Thank you both.
Speaker #5: both. okay very helpful guys thank you
Speaker #4: Thanks. Our next question comes
Daniel Weiss: Thanks.
Daniel Weiss: Thanks.
Operator: Our next question comes from Manuel Navas with Piper Sandler. Please go ahead.
Operator: Our next question comes from Manuel Navas with Piper Sandler. Please go ahead.
Speaker #1: from Manuel Navas with Piper Sandler. Please go ahead.
Speaker #5: Hey, could you just speak to, within the NIM, if there's a little bit of back book repricing that is helping on the loan yields? I know that the floating rates will come down a bit, and also, what are kind of new loan yields coming in at? Just trying to get some more on the asset side dynamics in the NIM.
Manuel Navas: Hey, could you just speak to, within the NIM, if there's a little bit of back book repricing that is helping on the loan yields? I know that the floating rates will come down a bit. And also, what are kind of new loan yields coming in at? Just trying to get some more on the asset side dynamics in the NIM.
Manuel Navas: Hey, could you just speak to, within the NIM, if there's a little bit of back book repricing that is helping on the loan yields? I know that the floating rates will come down a bit. And also, what are kind of new loan yields coming in at? Just trying to get some more on the asset side dynamics in the NIM.
Speaker #3: Yeah sure so we do have about 400 million dollars of loans fixed rate loans that will be repricing over the next 12 months off of a four with a weighted average rate of about four and a half percent and so I would anticipate those to be you know replaced or refinanced etc.
Daniel Weiss: Yeah, sure. So we do have about $400 million of loans - fixed rate loans that will be repricing over the next 12 months off of a 4 - with a weighted average rate of about 4.5%. And so I would anticipate those to be, you know, replaced or refinanced, et cetera, somewhere in that, like, low 6%, high 5% range. I would tell you that if you look at, within the presentation, you can see that the weighted average yield, on new loans originated in the Q4 was right around 6.15%. I would tell you, you know, the spot rate, for the month of December was just, just, just above 6%, so kind of 6.01, 6.02.
Daniel Weiss: Yeah, sure. So we do have about $400 million of loans - fixed rate loans that will be repricing over the next 12 months off of a 4 - with a weighted average rate of about 4.5%. And so I would anticipate those to be, you know, replaced or refinanced, et cetera, somewhere in that, like, low 6%, high 5% range. I would tell you that if you look at, within the presentation, you can see that the weighted average yield, on new loans originated in the Q4 was right around 6.15%. I would tell you, you know, the spot rate, for the month of December was just, just, just above 6%, so kind of 6.01, 6.02.
Speaker #3: somewhere in that like low 6% high 5% range I would tell you that if you look at within the presentation you can see that the weighted average yield on new loans originated in the Fourth Quarter was right around 6.15% I would tell you you know the spot rate for the month of December was just just just above 6% so kind of 6.01 6.02 so that's kind of you know where we're at and what we're projecting for more or less here for this for the for the First Quarter.
Daniel Weiss: So that's kind of, you know, where we're at and what we're projecting for more or last year for this- for the Q1. The other thing I'll mention is just if we think about margin benefit longer term, is the securities book continues to reprice as well. So we've got about $250 million of cash flows kicking off of that security portfolio. Those yields are about 3.3%, and right now we're investing at about 4.7%, roughly. So picking up, you know, between 125 and 150 basis points in yield on $250 million of cash flows coming in.
So that's kind of, you know, where we're at and what we're projecting for more or last year for this- for the Q1. The other thing I'll mention is just if we think about margin benefit longer term, is the securities book continues to reprice as well. So we've got about $250 million of cash flows kicking off of that security portfolio. Those yields are about 3.3%, and right now we're investing at about 4.7%, roughly. So picking up, you know, between 125 and 150 basis points in yield on $250 million of cash flows coming in.
Speaker #3: The other thing I'll mention is, just if we think about margin benefit longer term, is as the securities book continues to reprice as well. So, we've got about $250 million of cash flows kicking off of that securities portfolio; those yields are about 3.3%, and right now we're investing at about 4.7% roughly. So, picking up, you know, between 125 and 150 basis points in yield on $250 million of cash flows coming in.
Speaker #5: Is that 250 million per quarter?
Speaker #5: Is that $250 million per quarter? Yeah, per quarter. Okay, and then shifting over to capital for a moment—I appreciate the commentary. Just shifting over to capital, as you build and TCE has gotten over 8%, CET1's at 10.3%, can you discuss your kind of capital deployment priorities? Growth, but also just kind of where would M&A or buybacks fit in?
Manuel Navas: Is that $250 million per quarter?
Manuel Navas: Is that $250 million per quarter?
Daniel Weiss: Per quarter.
Daniel Weiss: Per quarter.
Manuel Navas: Yeah, okay. And then, shifting over to capital for a moment. I appreciate the commentary. Just shifting over to capital. As you build and TCE has gotten over 8%, CET1 is at 10, 10.3%. Can you discuss your kind of capital deployment priorities, growth, but also just kind of where would M&A or buybacks fit in?
Manuel Navas: Yeah, okay. And then, shifting over to capital for a moment. I appreciate the commentary. Just shifting over to capital. As you build and TCE has gotten over 8%, CET1 is at 10, 10.3%. Can you discuss your kind of capital deployment priorities, growth, but also just kind of where would M&A or buybacks fit in?
Speaker #4: Yeah sure first we'd start with the dividends obviously committed to the dividend then we would go to loan growth and you know making sure we can obviously fund the loan growth with our strong capital levels then I would put in buybacks we've talked about our targets being 10 and a half to 11% CET one around those ranges we would look to buy back and then I would put M&A for a distant fourth right now they're we don't see that happening this year we're really focused on the first three and specifically when it looks at growth obviously we have a lot of opportunities but we are also seeing really tremendous opportunities to acquire bankers and talented individuals to come on our team but that those would be the capital priorities glad to dig into any of the four but once again dividends growth buybacks and then far distant
Jeffrey Jackson: Yeah, sure. First, we'd start with the dividends, obviously committed to the dividend. Then we would go to loan growth and, you know, making sure we can obviously fund the loan growth with our, our strong capital levels. Then I would put in buybacks. We've talked about our targets being 10.5 to 11% CET1. Around those ranges, we would look to buy back. And then I would put a distant fourth. Right now, we don't see that happening, this year. We're really focused on the first three, and specifically, when it looks at growth, obviously, we have a lot of opportunities, but we are also seeing really tremendous opportunities to acquire bankers and talented individuals to come on our team. But those would be the capital priorities.
Jeffrey Jackson: Yeah, sure. First, we'd start with the dividends, obviously committed to the dividend. Then we would go to loan growth and, you know, making sure we can obviously fund the loan growth with our, our strong capital levels. Then I would put in buybacks. We've talked about our targets being 10.5 to 11% CET1. Around those ranges, we would look to buy back. And then I would put a distant fourth. Right now, we don't see that happening, this year. We're really focused on the first three, and specifically, when it looks at growth, obviously, we have a lot of opportunities, but we are also seeing really tremendous opportunities to acquire bankers and talented individuals to come on our team. But those would be the capital priorities.
Jeffrey Jackson: Glad to dig into any of the four, but, once again, dividends, growth, buybacks, and then, far distant M&A.
Glad to dig into any of the four, but, once again, dividends, growth, buybacks, and then, far distant M&A.
Speaker #4: M&A. Yeah, and I would just add
Daniel Weiss: Yeah, and I would, I would just add on to that, that, you know, we're, we're growing CET1 right now at about 15 to 20 basis points a quarter. So, you know, at, at the print that we had here for the Q4, 10.34% CET1, that pretty comfortably gets us over that 10.5%, you know, by, by the end of the Q2. And so that does offer, as Jeff said, you know, some flexibility there as we think about, you know, where, where organic growth is relative to, you know, say maybe, you know, beginning to explore buyback, you know, to the extent that, that growth opportunities are, are slower.
Daniel Weiss: Yeah, and I would, I would just add on to that, that, you know, we're, we're growing CET1 right now at about 15 to 20 basis points a quarter. So, you know, at, at the print that we had here for the Q4, 10.34% CET1, that pretty comfortably gets us over that 10.5%, you know, by, by the end of the Q2. And so that does offer, as Jeff said, you know, some flexibility there as we think about, you know, where, where organic growth is relative to, you know, say maybe, you know, beginning to explore buyback, you know, to the extent that, that growth opportunities are, are slower.
Speaker #3: on to that that you know we're we're growing CET one right now at about 15 to 20 basis points a quarter so you know at the print that we had here for the Fourth Quarter 10.34% CET one that's pretty comfortably gets us over that 10 and a half percent you know by by the end of the Second Quarter and so that does offer as Jeff said you know some flexibility there as we think about you know where where organic growth is relative to you know say maybe you know beginning to explore buyback you know to the extent that that growth opportunities are are
Speaker #3: slower. I appreciate that thank
Manuel Navas: I appreciate that. Thank you.
Manuel Navas: I appreciate that. Thank you.
Speaker #1: Our next you. question comes from Kathleen Mueller with KBW please go
Operator: Our next question comes from Kathleen Mueller with KBW. Please go ahead.
Operator: Our next question comes from Kathleen Mueller with KBW. Please go ahead.
Speaker #1: ahead. Thanks
David Bishop: Thanks, good morning. One follow-up on the margin, and apologies if I missed this, but any indication on just what you're expecting for the cadence of fair value accretion over 2026?
Catherine Mealor: Thanks, good morning. One follow-up on the margin, and apologies if I missed this, but any indication on just what you're expecting for the cadence of fair value accretion over 2026?
Speaker #6: good morning one follow-up on the margin and apologies if I missed this but any any indication on just what you're expecting for the cadence of fair value accretion over
Speaker #6: 2026. Yeah so I
Daniel Weiss: Yeah. So I would say, I believe we had about 27 basis points of accretion here in Q4. And we're modeling about 25 basis points for Q1. And then, you know, as I've said in the past, it kind of- it's a basis point or two per quarter, and it runs off over, you know, the next six years.
Daniel Weiss: Yeah. So I would say, I believe we had about 27 basis points of accretion here in Q4. And we're modeling about 25 basis points for Q1. And then, you know, as I've said in the past, it kind of- it's a basis point or two per quarter, and it runs off over, you know, the next six years.
Speaker #3: I would say I believe we had about 27 basis points of accretion here in the fourth quarter, and we were modeling about 25 basis points for the first quarter. And then, you know, as I've said in the past, it's kind of a basis point or two per quarter, and it runs off over, you know, the next six years.
Speaker #6: Okay great that's helpful. And then and then the reduction in borrowings was great to see this quarter how how should we kind of think about the size of the balance sheet outside of loans and deposits kind of maybe growth in the bond book relative to what we should see from your your borrowing base over the course of
David Bishop: Okay, great. That's helpful. And then the reduction in borrowings was great to see this quarter. How should we kind of think about the size of the balance sheet outside of loans and deposits, kind of maybe growth in the bond book relative to what we should see from your borrowing base over the course of 2026?
Catherine Mealor: Okay, great. That's helpful. And then the reduction in borrowings was great to see this quarter. How should we kind of think about the size of the balance sheet outside of loans and deposits, kind of maybe growth in the bond book relative to what we should see from your borrowing base over the course of 2026?
Speaker #6: 26. Sure yeah so
Daniel Weiss: Sure, yeah. So we're gonna keep that bond book right around, you know, that, call it 15 to 17% of total assets. You know, today, it's 16%, and we-- that's kind of where we feel is the sweet spot to maintain-
Daniel Weiss: Sure, yeah. So we're gonna keep that bond book right around, you know, that, call it 15 to 17% of total assets. You know, today, it's 16%, and we-- that's kind of where we feel is the sweet spot to maintain-
Speaker #3: we're going to we're going to keep that that bond book right around you know that call it 15 to 17% of total assets you know take 16% and we that's kind of where we feel is the sweet spot to maintain you know a a a nice level of liquidity but also make sure that we're you know generating as much you know return on equity as possible through the higher yielding loan
Jeffrey Jackson: ... you know, a nice level of liquidity, but also make sure that we're, you know, generating as much, you know, return on equity as possible through the higher-yielding loan book.
... you know, a nice level of liquidity, but also make sure that we're, you know, generating as much, you know, return on equity as possible through the higher-yielding loan book.
Speaker #3: book.
Speaker #6: Okay
David Bishop: Okay, great. And then let me see if I slip one more in on just kind of big picture profitability. It feels like we've got some nice operating leverage coming into 2026 with the revenue growth, with the NIM expansion and the growth in fees and your balance sheet, which kind of feels like more of a more stable expense base. Are there any kind of profitability targets that you would look to as we move through 2026?
Catherine Mealor: Okay, great. And then let me see if I slip one more in on just kind of big picture profitability. It feels like we've got some nice operating leverage coming into 2026 with the revenue growth, with the NIM expansion and the growth in fees and your balance sheet, which kind of feels like more of a more stable expense base. Are there any kind of profitability targets that you would look to as we move through 2026?
Speaker #6: great and then let me be one more in on just kind of big picture profitability it feels like we've got some nice operating leverage coming into 26 with the revenue growth with the NIM expansion and then growth in fees and and and your and your balance sheet was kind of feels like more of a more stable expense base are there any kind of profitability targets that you would look to as we move through
Speaker #6: 26.
Jeffrey Jackson: Yeah, I mean, I would say, you know, at a high level, what we've continued to talk about is kind of that ROA being right around that 1.30 mark. You know, return on average tangible common equity, you know, somewhere in the high teens. And so that's kind of what I would tell you, what we expect and what we're modeling.
Daniel Weiss: Yeah, I mean, I would say, you know, at a high level, what we've continued to talk about is kind of that ROA being right around that 1.30 mark. You know, return on average tangible common equity, you know, somewhere in the high teens. And so that's kind of what I would tell you, what we expect and what we're modeling.
Speaker #3: know at a high level what we've continued to talk about is kind of that ROA being right around that 130 mark you know return on average tangible common equity you know somewhere in the high teens and so that's kind of what I would tell you what we what we expect and what we're modeling.
Speaker #6: Great. Okay thank you great quarter guys.
David Bishop: Great. Okay, thank you. Great quarter, guys.
Catherine Mealor: Great. Okay, thank you. Great quarter, guys.
Speaker #4: Thank you.
Jeffrey Jackson: Thank you.
Jeffrey Jackson: Thank you.
Speaker #1: Our next question comes from Carl Shepherd with RBC Capital Markets please go
Operator: Our next question comes from Karl Shepard with RBC Capital Markets. Please go ahead.
Operator: Our next question comes from Karl Shepard with RBC Capital Markets. Please go ahead.
Speaker #1: ahead. Hey good morning guys.
Karl Shepard: Hey, good morning, guys.
Karl Shepard: Hey, good morning, guys.
Speaker #4: Hey good morning Carl. Morning
Jeffrey Jackson: Hey, good morning, Karl.
Jeffrey Jackson: Hey, good morning, Karl.
Daniel Weiss: Morning, Carl.
Daniel Weiss: Morning, Carl.
Speaker #3: Carl, my line cut out a little bit, so I apologize if—
Karl Shepard: My line cut out a little bit, so I apologize if you covered this. But just on the margin again, so the 3 to 5 basis points, are you saying that sort of burns out as we get later in the year, and then maybe that high 3.60 range is kind of appropriate way to think about longer term without giving guidance for, you know, 2027 or anything like that?
Karl Shepard: My line cut out a little bit, so I apologize if you covered this. But just on the margin again, so the 3 to 5 basis points, are you saying that sort of burns out as we get later in the year, and then maybe that high 3.60 range is kind of appropriate way to think about longer term without giving guidance for, you know, 2027 or anything like that?
Speaker #7: You covered this, but just on the margin again—so the three to five basis burns out as we get later in the year. Points are, are you saying that sort of, and then maybe that high 360 range is kind of an appropriate way to think about longer term?
Speaker #7: Without giving guidance for you know 27 or anything like that.
Speaker #3: Yeah Carl I would say you know 27 is a long way away and it's probably you know it could be difficult to even project the back half of 26 but what what what we can see you know in the like I said in the nearer term is you know that continued three to five basis points of benefit in in two Q you know where it goes in the back half of the year is really going to be dependent on a number of things including you know loan pricing loan competition deposit pricing deposit competition you know how how well we're able to fund our loan growth with deposits and what that the cost of those deposits are so I think you know all of those things kind of kind of play into the to the calculus here so what we can you know we we the back book the assets are do we can see though that repricing upward and that grind continues will continue to benefit margin and like I said we we feel pretty comfortable based on everything we know today that we can that we can get into that high 360s you know in that back half of the
Jeffrey Jackson: Yes, Karl, I would say, you know, 2027 is a long way away, and it's probably, you know, it could be difficult to even project the back half of 2026. But what we can see, you know, and like I said, in the nearer term is, you know, that continued 3 to 5 basis points of benefit in Q2. You know, where it goes in the back half of the year is really going to be dependent on a number of things, including, you know, loan pricing, loan competition, deposit pricing, deposit competition, you know, how well we're able to fund our loan growth with deposits, and what the cost of those deposits are. So I think, you know, all of those things kind of play into the calculus here.
Daniel Weiss: Yes, Karl, I would say, you know, 2027 is a long way away, and it's probably, you know, it could be difficult to even project the back half of 2026. But what we can see, you know, and like I said, in the nearer term is, you know, that continued 3 to 5 basis points of benefit in Q2. You know, where it goes in the back half of the year is really going to be dependent on a number of things, including, you know, loan pricing, loan competition, deposit pricing, deposit competition, you know, how well we're able to fund our loan growth with deposits, and what the cost of those deposits are. So I think, you know, all of those things kind of play into the calculus here.
Jeffrey Jackson: You know, we can see, though, that the back book, the assets are repricing upward, and that grind continues, will continue to benefit margin. And like I said, we feel pretty comfortable based on everything we know today, that we can get into that high 3.60s, you know, in that back half of the year.
You know, we can see, though, that the back book, the assets are repricing upward, and that grind continues, will continue to benefit margin. And like I said, we feel pretty comfortable based on everything we know today, that we can get into that high 3.60s, you know, in that back half of the year.
Speaker #3: year.
Speaker #7: Okay that's
Karl Shepard: Okay, that's helpful. And then I guess, maybe more of a strategic question. So the LPO strategy has been out there for a few years now. You're adding a financial center in Chattanooga. Can you just maybe talk about how these things mature and get to where you want them to be, and then just opportunity to continue to do new LPOs or, I guess, strengthen some of those markets with additional talent? Just kind of, you know, big picture, how are you thinking about that, Jeff?
Karl Shepard: Okay, that's helpful. And then I guess, maybe more of a strategic question. So the LPO strategy has been out there for a few years now. You're adding a financial center in Chattanooga. Can you just maybe talk about how these things mature and get to where you want them to be, and then just opportunity to continue to do new LPOs or, I guess, strengthen some of those markets with additional talent? Just kind of, you know, big picture, how are you thinking about that, Jeff?
Speaker #7: helpful and then I guess maybe more of a strategic question so the the LPO strategy has been out there for a few years now you're adding a financial center in Chattanooga can you just maybe talk about how these things mature and get to where you want them to be and then just opportunity to continue to do new LPOs or I guess strengthen some of those markets with additional talent and just kind of you know big picture how you're thinking about that Jeff.
Speaker #4: Yeah sure very excited about the LPOs so Chattanooga we should open the the first branch in Tennessee we're anticipating in April that that group is done and over half a billion dollars in loans and has done really great job with full relationships just to be clear some deposits and different things treasury fees swap fees et cetera so what we typically look at is depends on the mass of the team we bring on the size of the assets and and those things so my goal would be to continue to grow Knoxville in that similar range at a branch there Nashville we're we're looking to add to that team but with also be looking to add a branch once they get around that half a billion dollars and then as as it relates to future LPOs once again that that is what we're really focused on this year we are seeing a tremendous amount of opportunity based on the other M&A going on or leadership changes et cetera and so I think that's what you'll be seeing us do this year expanding another markets but most likely we would start with the LPO offices get a little bit of a loan balances fee businesses going and then look to add a branch obviously if we took on a much larger team potentially then we would depending on where it would be we could add a branch immediately obviously funding for these LPOs is really critical and having a single branch in in those markets we feel like is gives us a great advantage to add more funding when we start up these LPOs but once again I I can't tell you what tremendous opportunities we have in some of these markets in the southeast and I think you'll be hearing more about that from us in future
Jeffrey Jackson: Yeah, sure. Very excited about the LPOs. So, in Chattanooga, we should open the first branch in Tennessee. We're anticipating in April. That group has done over half a billion dollars in loans and has done a really great job with the full relationships, just to be clear, some deposits and different things, treasury fees, swap fees, et cetera. So, what we typically look at depends on the mass of the team we bring on, the size of the assets, and those things. So, my goal would be to continue to grow Knoxville in that similar range, add a branch there. Nashville, we're looking to add to that team, but we'd also be looking to add a branch once they get around that half a billion dollars.
Jeffrey Jackson: Yeah, sure. Very excited about the LPOs. So, in Chattanooga, we should open the first branch in Tennessee. We're anticipating in April. That group has done over half a billion dollars in loans and has done a really great job with the full relationships, just to be clear, some deposits and different things, treasury fees, swap fees, et cetera. So, what we typically look at depends on the mass of the team we bring on, the size of the assets, and those things. So, my goal would be to continue to grow Knoxville in that similar range, add a branch there. Nashville, we're looking to add to that team, but we'd also be looking to add a branch once they get around that half a billion dollars.
Jeffrey Jackson: And then, as it relates to future LPOs, once again, that is what we're really focused on this year. We are seeing a tremendous amount of opportunity based on the other M&A going on or leadership changes, et cetera. And so I think that's what you'll be seeing us do this year, expanding in other markets. But most likely, we would start with the LPO offices, get a little bit of loan balances, fee businesses going, and then look to add a branch. Obviously, if we took on a much larger team, potentially, then we would, depending on where it would be, we could add a branch immediately.
And then, as it relates to future LPOs, once again, that is what we're really focused on this year. We are seeing a tremendous amount of opportunity based on the other M&A going on or leadership changes, et cetera. And so I think that's what you'll be seeing us do this year, expanding in other markets. But most likely, we would start with the LPO offices, get a little bit of loan balances, fee businesses going, and then look to add a branch. Obviously, if we took on a much larger team, potentially, then we would, depending on where it would be, we could add a branch immediately.
Jeffrey Jackson: Obviously, funding for these LPOs is really critical, and having a single branch in those markets, we feel like gives us a great advantage to add more funding when we start up these LPOs. But once again, I can't tell you what tremendous opportunities we have in some of these markets in the Southeast, and I think you'll be hearing more about that from us in future quarters.
Obviously, funding for these LPOs is really critical, and having a single branch in those markets, we feel like gives us a great advantage to add more funding when we start up these LPOs. But once again, I can't tell you what tremendous opportunities we have in some of these markets in the Southeast, and I think you'll be hearing more about that from us in future quarters.
Speaker #4: quarters. Thanks thanks so
Karl Shepard: Thanks. Thanks so much, guys.
Karl Shepard: Thanks. Thanks so much, guys.
Speaker #7: much
Speaker #7: guys. Thanks
Jeffrey Jackson: Thanks, Carl.
Jeffrey Jackson: Thanks, Carl.
Speaker #4: Carl. Our next question
Operator: Our next question comes from Dave Bishop with Hovde Group. Please go ahead.
Operator: Our next question comes from Dave Bishop with Hovde Group. Please go ahead.
Speaker #1: Comes from Dave Bishop with Hovde Group. Please go ahead.
Speaker #8: Hey good morning guys.
David Bishop: Hey, good morning, guys.
David Bishop: Hey, good morning, guys.
Speaker #4: Good ahead. morning Dave.
Jeffrey Jackson: Good morning, Dave.
Jeffrey Jackson: Good morning, Dave.
Speaker #3: Good morning.
Daniel Weiss: Good morning.
Daniel Weiss: Good morning.
Speaker #8: Hey Jeff you know you noted you know the the loan pipeline you know holding up pretty nicely here and now offices and the LPOs just you're getting traction from the the new production curious and and you may not have this number here but do you have any line of sight maybe into the deposit pipeline into the the first half of the year first quarter of the year and and maybe what spot deposit costs were exiting the quarter.
David Bishop: Hey, Jeff, you know, you noted, you know, the loan pipeline, you know, holding up pretty nicely here, and now you're getting traction from the new production offices and the LPOs. Just curious, and you may not have this number here, but do you have any line of sight maybe into the deposit pipeline, into the first half of the year, first quarter of the year, and maybe what spot deposit costs were exiting the quarter?
David Bishop: Hey, Jeff, you know, you noted, you know, the loan pipeline, you know, holding up pretty nicely here, and now you're getting traction from the new production offices and the LPOs. Just curious, and you may not have this number here, but do you have any line of sight maybe into the deposit pipeline, into the first half of the year, first quarter of the year, and maybe what spot deposit costs were exiting the quarter?
Speaker #4: Yeah I'll comment on the pipeline I'll let Dan talk about the cost but yeah they're still pretty strong once again as Dan mentioned we we kind of go back and look over the last several years seasonally January usually is a down month for us in in deposits but then February builds back up and usually we finish with some nice growth at the end of March so I would say the deposit pipeline still is is very good and you know for us we're always looking to bring in full relationships and then our retail employees are doing a great job driving home those deposits as well so I I would imagine that we should still show pretty pretty good growth this year in deposits based on everything I'm
Jeffrey Jackson: ... Yeah, I'll comment on the pipeline. I'll let Dan talk about the cost. But, yeah, they're still pretty strong. Once again, as Dan mentioned, we kinda go back and look over the last several years. Seasonally, January usually is a down month for us in deposits, but then February, it builds back up, and usually, we finish with some nice growth at the end of March. So, I would say the deposit pipeline still is very good, and, you know, for us, we're always looking to bring in full relationships, and then our retail employees are doing a great job driving home those deposits as well. So I would imagine that we should still show pretty, pretty good growth this year in deposits, based on everything I'm seeing.
Jeffrey Jackson: ... Yeah, I'll comment on the pipeline. I'll let Dan talk about the cost. But, yeah, they're still pretty strong. Once again, as Dan mentioned, we kinda go back and look over the last several years. Seasonally, January usually is a down month for us in deposits, but then February, it builds back up, and usually, we finish with some nice growth at the end of March. So, I would say the deposit pipeline still is very good, and, you know, for us, we're always looking to bring in full relationships, and then our retail employees are doing a great job driving home those deposits as well. So I would imagine that we should still show pretty, pretty good growth this year in deposits, based on everything I'm seeing.
Speaker #4: Seeing. And I would just add spot deposit.
Daniel Weiss: I would just add spot deposit rates, you know, at least for the month of December, relative to the, you know, the full quarter's average. Full quarter average is right around 2.45, December, 2.38, so, you know, down about 7 basis points, relatively speaking.
Daniel Weiss: I would just add spot deposit rates, you know, at least for the month of December, relative to the, you know, the full quarter's average. Full quarter average is right around 2.45, December, 2.38, so, you know, down about 7 basis points, relatively speaking.
Speaker #3: Rates for, you know, at least for the month of December relative to the, you know, the full quarter's average—full quarter average is right around 2.45%; December, 2.38%. So, you know, down about seven basis points relative.
Speaker #3: speaking. Got
David Bishop: Got it. Appreciate that color. Then, Jeff, maybe a follow-up. You know, you talked about, I appreciate the color on the, you know, new loan offices, especially in Tennessee and Northern Virginia. Are the types of loans you're seeing in those markets different than some of your core legacy markets? You know, size, you know, types of borrowers and such, you know, especially Northern Virginia, which is a big, you know, gov con market. Just maybe speak to maybe the types of loans you're doing and size, you know, relative to the legacy markets. Thanks.
David Bishop: Got it. Appreciate that color. Then, Jeff, maybe a follow-up. You know, you talked about, I appreciate the color on the, you know, new loan offices, especially in Tennessee and Northern Virginia. Are the types of loans you're seeing in those markets different than some of your core legacy markets? You know, size, you know, types of borrowers and such, you know, especially Northern Virginia, which is a big, you know, gov con market. Just maybe speak to maybe the types of loans you're doing and size, you know, relative to the legacy markets. Thanks.
Speaker #8: it appreciate that color then Jeff maybe a follow-up you know you talked about I appreciate the color on the you know new loan offices especially in Tennessee and Northern Virginia are are the types of loans you're seeing in those those markets different than some of your core legacy markets you know size you know types of bars and such you know especially Northern Virginia which is a big you know GovCon market just maybe speak to maybe the types of loans you're doing and and size you know relative to the the legacy markets.
Speaker #8: Thanks.
Speaker #4: Yeah sure great
Jeffrey Jackson: Yeah, sure. Great question. They're pretty similar, to be honest. Once again, we have not changed our credit culture, any policies at all. So we're seeing some CRE, a lot of C&I, some healthcare. We did a big healthcare deal in Virginia. But yeah, gov con is part of Northern Virginia and then DC area, but I can't really say we've done almost none of that. It's really been more CRE, C&I, healthcare, just similar things that we're doing in all our markets. The great thing that really helps our LPO strategy is, you know, we, we take our existing kinda credit culture and just get great talented bankers in all these markets that can operate within what we like to do, and it's working extremely well.
Jeffrey Jackson: Yeah, sure. Great question. They're pretty similar, to be honest. Once again, we have not changed our credit culture, any policies at all. So we're seeing some CRE, a lot of C&I, some healthcare. We did a big healthcare deal in Virginia. But yeah, gov con is part of Northern Virginia and then DC area, but I can't really say we've done almost none of that. It's really been more CRE, C&I, healthcare, just similar things that we're doing in all our markets. The great thing that really helps our LPO strategy is, you know, we, we take our existing kinda credit culture and just get great talented bankers in all these markets that can operate within what we like to do, and it's working extremely well.
Speaker #4: question they're pretty similar to be honest once again we have not changed our credit culture any policies at all so we're seeing some CRE a lot of CNI some healthcare we did a big healthcare deal in Virginia but yeah GovCon is part of Northern Virginia and and DC area but I can't really say we've done almost none of that it's really been more CRE CNI healthcare just similar things that we're doing in all our markets the great thing that really helps our LPO strategy is you know we we take our existing kind of credit culture and just get great talented bankers in all these markets that can operate within what we'd like to do and it's working extremely well.
Speaker #8: Perfect appreciate the color
David Bishop: Perfect. Appreciate the color. Thanks.
David Bishop: Perfect. Appreciate the color. Thanks.
Speaker #8: thanks. Thanks
Jeffrey Jackson: Thanks, Dave.
Jeffrey Jackson: Thanks, Dave.
Speaker #1: Our final question today, Dave, comes from Manuel Navas with Piper Sandler. Please go ahead.
Operator: Our final question today comes from Manuel Navas with Piper Sandler. Please go ahead.
Operator: Our final question today comes from Manuel Navas with Piper Sandler. Please go ahead.
Speaker #9: Hey, I just wanted to follow up on the fee initiatives and the Commercial Lending team. You brought up the $6 million in Treasury Management swaps are doing well and just kind of—can you go into those in a little bit more detail in terms of what could be the growth next year, and what is the uptake in the Premier team using your fee products as well?
Manuel Navas: Hey, I just wanted to follow up on the fee initiatives and the commercial lending team. You brought up the $6 million in treasury management. Swaps are doing well, and just kind of can you go into those a little bit more detail in terms of what could be the growth next year, and what is the uptake in the Premier team using your fee products as well?
Manuel Navas: Hey, I just wanted to follow up on the fee initiatives and the commercial lending team. You brought up the $6 million in treasury management. Swaps are doing well, and just kind of can you go into those a little bit more detail in terms of what could be the growth next year, and what is the uptake in the Premier team using your fee products as well?
Speaker #9: well.
Speaker #4: Yeah, no, we're very excited about it.
Jeffrey Jackson: Yeah, no, we're very excited about that. So I can tell you that a year and a half ago, just starting with our treasury management fees, let me take it back a couple of years ago. So I believe in 2023, we did about $2 million in treasury management fees. 2024, we did about $4 million, and then last year, we topped $6 million. I think that can continue to grow double digits this year, from a percentage perspective. If you just look at our purchase card, we basically had 5 customers back in, I believe, March of last year. Today, I believe we've got over about 130 customers, with about another 45 in the pipeline.
Jeffrey Jackson: Yeah, no, we're very excited about that. So I can tell you that a year and a half ago, just starting with our treasury management fees, let me take it back a couple of years ago. So I believe in 2023, we did about $2 million in treasury management fees. 2024, we did about $4 million, and then last year, we topped $6 million. I think that can continue to grow double digits this year, from a percentage perspective. If you just look at our purchase card, we basically had 5 customers back in, I believe, March of last year. Today, I believe we've got over about 130 customers, with about another 45 in the pipeline.
Speaker #4: that so I can tell you that a year and a half ago just starting with our treasury management fees what let me take you back a couple of years ago so I believe in 2023 we did about 2 million in treasury management fees 2024 we did about 4 million and then last year we we topped 6 million I think that can continue to grow double digits this year from a percentage perspective if you just look at our purchase card we we basically had five customers back in I believe March of last year today I believe we've got over about 130 customers with about another 45 in the pipeline we've gone from called 100,000 a month and spend to I believe we've topped 7 million a month in spend and and we think we could get it up to 10 million plus this year as it relates to the purchase card commercial purchase card multi-card then as it relates to swaps I I do believe you know we we we're around 9 million dollars in just gross production last year I think that could easily grow a good amount this year as well to be above 10 million plus depending on how the year goes and what interest rates do so I I think there is some tailwinds in both those fee businesses along with our wealth business too we just topped over 10
Jeffrey Jackson: We've gone from, call it $100,000 a month in spend to, I believe, we've topped $7 million a month in spend, and we think we can get it up to $10 million-plus, this year, as it relates to the purchase card, Commercial Purchase Card, Multi-Card. Then, as it relates to swaps, I do believe, you know, we're around $9 million in just gross production last year. I think that could easily grow, a good amount this year as well to be, above $10 million plus, depending on how the year goes and what interest rates do. So I think there is some tailwinds in both those fee businesses, along with our wealth business, too.
We've gone from, call it $100,000 a month in spend to, I believe, we've topped $7 million a month in spend, and we think we can get it up to $10 million-plus, this year, as it relates to the purchase card, Commercial Purchase Card, Multi-Card. Then, as it relates to swaps, I do believe, you know, we're around $9 million in just gross production last year. I think that could easily grow, a good amount this year as well to be, above $10 million plus, depending on how the year goes and what interest rates do. So I think there is some tailwinds in both those fee businesses, along with our wealth business, too.
Jeffrey Jackson: We just topped over $10 billion in Assets Under Management, when you combine our trust and securities business. So we feel like that's really gonna be another driver for our profitability this year, and we could see some tremendous growth.
We just topped over $10 billion in Assets Under Management, when you combine our trust and securities business. So we feel like that's really gonna be another driver for our profitability this year, and we could see some tremendous growth.
Speaker #1: $2 billion in assets under management. When you combine our trust and securities, we feel like that's really going to be a driver for our profitability this year, and another driver for our profitability this year.
Speaker #1: And we could see some tremendous growth .
Manuel Navas: Thank you. Appreciate it.
Manuel Navas: Thank you. Appreciate it.
Speaker #2: Thank you . Appreciate it .
Operator: This concludes our question and answer session. I would like to turn the conference back over to Jeff Jackson for any closing remarks.
Operator: This concludes our question and answer session. I would like to turn the conference back over to Jeff Jackson for any closing remarks.
Speaker #3: This concludes our question and answer session. I would like to turn the conference back over to Jeff Jackson for any closing remarks.
Jeffrey Jackson: Thank you. 2025 was another year of disciplined growth and strong execution for WesBanco. We strengthened our financial metrics, advanced our strategic priorities, and positioned the company well to continue delivering value for our customers and our shareholders. Thank you for joining us today, and we look forward to speaking with you at one of our upcoming investor events. Have a great week.
Jeffrey Jackson: Thank you. 2025 was another year of disciplined growth and strong execution for WesBanco. We strengthened our financial metrics, advanced our strategic priorities, and positioned the company well to continue delivering value for our customers and our shareholders. Thank you for joining us today, and we look forward to speaking with you at one of our upcoming investor events. Have a great week.
Speaker #1: Thank you. 2025 was another year of disciplined growth and strong execution for WesBanco. We strengthened our financial metrics, advanced our strategic priorities, and positioned the company well to continue delivering value for our customers and our shareholders.
Speaker #1: Thank you for joining us today , forward to speaking and we look with you at one of our upcoming investor events . week a great Have .
Operator: Thank you for attending today's presentation. The conference is now concluded. You may now disconnect.
Operator: Thank you for attending today's presentation. The conference is now concluded. You may now disconnect.
