Washington Trust Bank Q4 2025 Washington Trust Bancorp Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Washington Trust Bancorp Inc Earnings Call
Speaker #1: Good morning and welcome to Washington Trust Bancorp Inc's conference call. My name's Lydia, and I'll be your operator today. If participants need assistance during the call at any time, please press star zero.
Operator: Good morning and welcome to Washington Trust Bancorp, Inc.'s conference call. My name's Lydia, and I'll be your operator today. If participants need assistance during the call at any time, please press star zero. Participants interested in asking a question at the end of the call should press star one to get in queue. As a reminder, today's call is being recorded. Now, I'll turn the call over to Sharon Walsh, Senior Vice President, Director of Marketing and Corporate Communications. Please go ahead.
Operator: Good morning and welcome to Washington Trust Bancorp, Inc.'s conference call. My name's Lydia, and I'll be your operator today. If participants need assistance during the call at any time, please press star zero. Participants interested in asking a question at the end of the call should press star one to get in queue. As a reminder, today's call is being recorded. Now, I'll turn the call over to Sharon Walsh, Senior Vice President, Director of Marketing and Corporate Communications. Please go ahead.
Speaker #1: Participants interested in asking a question at the end of the call should press star one to get in queue. As a reminder, today's call is being recorded.
Speaker #1: And now, I'll turn the call over to Sharon Walsh, Senior Vice President, Director of Marketing and Corporate Communications. Please go ahead.
Speaker #2: Thank you, Lydia. Good morning, and welcome to Washington Trust Bancorp Inc.'s conference call for the fourth quarter of 2025. Joining us this morning are members of Washington Trust's Executive Team: Ned Handy, Chairman and Chief Executive Officer; Mary Noons, President and Chief Operating Officer; Ron Osberg, Senior Executive Vice President, Chief Financial Officer and Treasurer; and Bill Ray, Senior Executive Vice President and Chief Risk Officer.
Sharon Walsh: Thank you, Lydia. Good morning and welcome to Washington Trust Bancorp, Inc.'s conference call for the fourth quarter of 2025. Joining us this morning are members of Washington Trust's executive team, Ned Handy, Chairman and Chief Executive Officer; Mary Noons, President and Chief Operating Officer; Ron Ohsberg, Senior Executive Vice President, Chief Financial Officer and Treasurer; and Bill Wray, Senior Executive Vice President and Chief Risk Officer. Please note that today's presentation may contain forward-looking statements, and our actual results could differ materially from what is discussed on today's call. Our complete safe harbor statement is contained in our earnings release, which was issued yesterday, as well as other documents that are filed with the SEC. All of these materials and other public filings are available on our investor relations website, irw.washtrust.com. Washington Trust trades on NASDAQ under the symbol WASH.
Q4 2025 Washington Trust Bancorp Inc Earnings Call
Sharon Walsh: Thank you, Lydia. Good morning and welcome to Washington Trust Bancorp, Inc.'s conference call for the fourth quarter of 2025. Joining us this morning are members of Washington Trust's executive team, Ned Handy, Chairman and Chief Executive Officer; Mary Noons, President and Chief Operating Officer; Ron Ohsberg, Senior Executive Vice President, Chief Financial Officer and Treasurer; and Bill Wray, Senior Executive Vice President and Chief Risk Officer. Please note that today's presentation may contain forward-looking statements, and our actual results could differ materially from what is discussed on today's call. Our complete safe harbor statement is contained in our earnings release, which was issued yesterday, as well as other documents that are filed with the SEC. All of these materials and other public filings are available on our investor relations website, irw.washtrust.com. Washington Trust trades on NASDAQ under the symbol WASH.
Speaker #2: Please note that today's presentation may contain forward-looking statements and our actual results could differ materially from what is discussed on today's call. Our complete safe harbor statement is contained in our earnings release, which was issued yesterday as well as other documents that are filed with the SEC.
Speaker #2: All of these materials and other public filings are available on our investor relations website, ir.washtrust.com. Washington Trust trades on NASDAQ under the symbol WASH.
Speaker #2: I'm now pleased to introduce today's host, Washington Trust Chairman and Chief Executive Officer Ned Handy. Ned,
Sharon Walsh: I'm now pleased to introduce today's host, Washington Trust Chairman and Chief Executive Officer, Ned Handy. Ned.
I'm now pleased to introduce today's host, Washington Trust Chairman and Chief Executive Officer, Ned Handy. Ned.
Speaker #3: Thanks, Sharon. Good morning and thank you for joining our fourth quarter conference call. We respect and appreciate your time and interest in Washington Trust.
Ned Handy: Thanks, Sharon. Good morning, and thank you for joining our Q4 conference call. We respect and appreciate your time and interest in Washington Trust. I'll begin with a brief overview of our results, and then Ron will provide more detail on our financial results for the quarter and the year. After our remarks, Mary and Bill will join us for the Q&A session. This quarter's results reflected continued earnings momentum and improving profitability. The quarter's performance was driven by margin expansion, continued in-market deposit growth, and increased revenues from wealth management. We closed out the year with a well-positioned balance sheet, a normalized provision for credit losses, and improved asset quality metrics. During 2025, we laid important groundwork for future growth with targeted investments in our wealth management and commercial banking business lines.
Ned Handy: Thanks, Sharon. Good morning, and thank you for joining our Q4 conference call. We respect and appreciate your time and interest in Washington Trust. I'll begin with a brief overview of our results, and then Ron will provide more detail on our financial results for the quarter and the year. After our remarks, Mary and Bill will join us for the Q&A session. This quarter's results reflected continued earnings momentum and improving profitability. The quarter's performance was driven by margin expansion, continued in-market deposit growth, and increased revenues from wealth management. We closed out the year with a well-positioned balance sheet, a normalized provision for credit losses, and improved asset quality metrics. During 2025, we laid important groundwork for future growth with targeted investments in our wealth management and commercial banking business lines.
Speaker #3: I'll begin with a brief overview of our results and then Ron will provide more detail on our financial results for the quarter and the year.
Speaker #3: After our remarks, Mary and Bill will join us for the Q&A session. This quarter's results reflected continued earnings momentum and improving profitability. The quarter's performance was driven by margin expansion, continued in-market deposit growth, and increased revenues from wealth management.
Speaker #3: We closed out the year with a well-positioned balance sheet, a normalized provision for credit losses, and improved asset quality metrics. During 2025, we laid important groundwork for future growth with targeted investments in our wealth management and commercial banking business lines.
Speaker #3: This included the wealth asset purchase from Lighthouse Financial Management and the hiring of our new Chief Commercial Banking Officer, Jim Brown, who has an extensive network and proven record in leading high-performing commercial banking teams.
Ned Handy: This included the wealth asset purchase from Lighthouse Financial Management and the hiring of our new Chief Commercial Banking Officer, Jim Brown, who has an extensive network and proven record in leading high-performing commercial banking teams. In this new year, we are continuing to build upon the positive momentum from these strategic investments. Last week, we brought on a dedicated institutional banking team to serve education, healthcare, and nonprofit providers throughout the Northeast region. This investment in our commercial banking business will help improve our balance sheet with high-quality C&I loans and strong deposit opportunities. We also expect to see wealth management opportunities come about. The ability to scale this high-quality new client base with an efficient staffing model will enhance earnings going forward. We're very excited about this key addition to Jim's commercial team and the growth potential that lies ahead.
This included the wealth asset purchase from Lighthouse Financial Management and the hiring of our new Chief Commercial Banking Officer, Jim Brown, who has an extensive network and proven record in leading high-performing commercial banking teams. In this new year, we are continuing to build upon the positive momentum from these strategic investments. Last week, we brought on a dedicated institutional banking team to serve education, healthcare, and nonprofit providers throughout the Northeast region. This investment in our commercial banking business will help improve our balance sheet with high-quality C&I loans and strong deposit opportunities. We also expect to see wealth management opportunities come about. The ability to scale this high-quality new client base with an efficient staffing model will enhance earnings going forward. We're very excited about this key addition to Jim's commercial team and the growth potential that lies ahead.
Speaker #3: In this new year, we are continuing to build upon the positive momentum from the strategic investments. Last week, we brought on a dedicated institutional banking team to serve education, healthcare, and nonprofit providers throughout the Northeast region.
Speaker #3: This investment in our commercial banking business will help improve our balance sheet with high-quality CNI loans and strong deposit opportunities. We also expect to see wealth management opportunities come about.
Speaker #3: The ability to scale this high-quality new client base with an efficient staffing model will enhance earnings going forward. We're very excited about this key addition to Jim's commercial team and the growth potential that lies ahead.
Ned Handy: We're also looking forward to our De Novo branch opening later this year in one of Rhode Island's fastest-growing communities, the city of Pawtucket, which will increase our presence in the northern part of the state. All these efforts will enhance our value as a full-service community bank and long-term partner to our customers and provide a solid foundation for the year ahead. With that, I'll turn the call over to Ron for some additional details on the quarter and the year. We'll then be glad to address any of your questions. Ron.
We're also looking forward to our De Novo branch opening later this year in one of Rhode Island's fastest-growing communities, the city of Pawtucket, which will increase our presence in the northern part of the state. All these efforts will enhance our value as a full-service community bank and long-term partner to our customers and provide a solid foundation for the year ahead. With that, I'll turn the call over to Ron for some additional details on the quarter and the year. We'll then be glad to address any of your questions. Ron.
Speaker #3: We're also looking forward to our de novo branch opening later this year in one of Rhode Island's fastest-growing communities, the city of Pawtucket, which will increase our presence in the northern part of the state.
Speaker #3: All these efforts will enhance our value as a full-service community bank and long-term partner to our customers, and provide a solid foundation for the year ahead.
Speaker #3: With that, I'll turn the call over to Ron for some additional details on the quarter and the year. We'll then be glad to address any of your questions.
Speaker #3: Ron?
Speaker #4: Okay. Thank you, Ned, and good morning, everyone. In the fourth quarter, we reported net income of $16 million or 83 cents per share, compared to $10.8 million or 56 cents per share for the preceding quarter.
Ron Ohsberg: Okay. Thank you, Ned, and good morning, everyone. In the fourth quarter, we reported net income of $16 million, or $0.83 per share, compared to $10.8 million, or $0.56 per share for the preceding quarter. On an adjusted basis, EPS was up 41% compared to last year's fourth quarter. Net interest income was $40.7 million, up by 5% from Q3, and 24% year-over-year. The margin was 2.56, up by 16 basis points and up by 61 basis points year-over-year. A better funding mix with higher in-market deposits and lower wholesale funding, as well as deposit rate management, contributed to this improvement. Q4 included $516,000 of loan prepayment fee income, which benefited the NEM by 3 basis points. Non-interest income was up 5% compared to Q3 and up by 15% year-over-year on an adjusted basis.
Ron Ohsberg: Okay. Thank you, Ned, and good morning, everyone. In the fourth quarter, we reported net income of $16 million, or $0.83 per share, compared to $10.8 million, or $0.56 per share for the preceding quarter. On an adjusted basis, EPS was up 41% compared to last year's fourth quarter. Net interest income was $40.7 million, up by 5% from Q3, and 24% year-over-year. The margin was 2.56, up by 16 basis points and up by 61 basis points year-over-year. A better funding mix with higher in-market deposits and lower wholesale funding, as well as deposit rate management, contributed to this improvement. Q4 included $516,000 of loan prepayment fee income, which benefited the NEM by 3 basis points. Non-interest income was up 5% compared to Q3 and up by 15% year-over-year on an adjusted basis.
Speaker #4: On an adjusted basis, EPS was up 41% compared to last year's fourth quarter. Net interest income was $40.7 million, up by 5% from Q3 in 24% year-over-year.
Speaker #4: The margin was 256, up by 16 basis points, and up by 61 basis points year-over-year. A better funding mix with higher in-market deposits and lower wholesale funding as well as deposit rate management contributed to this improvement.
Speaker #4: Q4 included $516,000 of loan prepayment fee income, which benefited the net by 3 basis points. Non-interest income was up 5% compared to Q3 and up by 15% year-over-year on an adjusted basis.
Ron Ohsberg: Wealth management revenues were up 5%, and average AUA for the fourth quarter increased by 4% and 9% year-over-year. Mortgage banking revenues totaled $3.3 million, down seasonally by 7% and up 14% year-over-year. Origination and sales volumes increased by 21% and 25%, respectively. Our mortgage pipeline at 31 December was $81 million, down seasonally by 37% from the end of September. Full-year mortgage originations totaled $667 million, up by 31% from 2024. Q4 loan-related derivative income was up by $810,000 in the quarter. Non-interest expense totaled $38 million in Q4, up by 6%. On a full-year adjusted basis, non-interest expense was up by 7%. In the fourth quarter, salaries and benefits expense was up by $973,000, or 4%, reflecting higher levels of performance and volume-based compensation, as well as increased staffing.
Ron Ohsberg: Wealth management revenues were up 5%, and average AUA for the fourth quarter increased by 4% and 9% year-over-year. Mortgage banking revenues totaled $3.3 million, down seasonally by 7% and up 14% year-over-year. Origination and sales volumes increased by 21% and 25%, respectively. Our mortgage pipeline at 31 December was $81 million, down seasonally by 37% from the end of September. Full-year mortgage originations totaled $667 million, up by 31% from 2024. Q4 loan-related derivative income was up by $810,000 in the quarter. Non-interest expense totaled $38 million in Q4, up by 6%. On a full-year adjusted basis, non-interest expense was up by 7%. In the fourth quarter, salaries and benefits expense was up by $973,000, or 4%, reflecting higher levels of performance and volume-based compensation, as well as increased staffing.
Speaker #4: Wealth management revenues were up 5% and average AUA for the fourth quarter increased by 4% and 9% year-over-year. Mortgage banking revenues totaled $3.3 million down seasonally by 7% and up 14% year-over-year.
Speaker #4: Origination and sales volumes increased by 21% and 25%, respectively. Our mortgage pipeline at December 31 was $81 million, down seasonally by 37% from the end of September.
Speaker #4: Full-year mortgage originations totaled $667 million, up by 31% from 2024. Q4 loan-related derivative income was up by $810,000 in the quarter. Non-interest expense totaled $38 million in Q4, up by 6%.
Speaker #4: On a full-year adjusted basis, non-interest expense was up by 7%. In the fourth quarter, salaries and benefits expense was up by $973,000 or 4%, reflecting higher levels of performance and volume-based compensation as well as increased staffing.
Ron Ohsberg: Other non-interest expenses were up by $1.3 million in Q4, largely due to a $1 million contribution made to our charitable foundation. Our full-year effective tax rate was 22.5%. We expect our full-year 2026 rate to be approximately 22%. Turning to the balance sheet, total loans were stable, increasing modestly by $12 million from 30 September 2024. In-market deposits were up by 1% from the end of Q3 and 9% year-over-year, and wholesale funding was down $165 million, or 21% from the end of September. Total equity amounted to $544 million, up by $11 million from the end of Q3. The dividend remained at $0.56 per share. Turning to credit, in the fourth quarter, the provision for credit losses normalized, and our asset quality metrics improved. At 31 December 2024, non-accruing loans were 25 basis points on total loans. Non-accruing commercial loans were zero.
Other non-interest expenses were up by $1.3 million in Q4, largely due to a $1 million contribution made to our charitable foundation. Our full-year effective tax rate was 22.5%. We expect our full-year 2026 rate to be approximately 22%. Turning to the balance sheet, total loans were stable, increasing modestly by $12 million from 30 September 2024. In-market deposits were up by 1% from the end of Q3 and 9% year-over-year, and wholesale funding was down $165 million, or 21% from the end of September. Total equity amounted to $544 million, up by $11 million from the end of Q3. The dividend remained at $0.56 per share. Turning to credit, in the fourth quarter, the provision for credit losses normalized, and our asset quality metrics improved. At 31 December 2024, non-accruing loans were 25 basis points on total loans. Non-accruing commercial loans were zero.
Speaker #4: Other non-interest expenses were up by 1.3 million in Q4, largely due to a $1 million contribution made to our charitable foundation. Our full-year effective tax rate was 22.5%.
Speaker #4: We expect our full-year 2026 rate to be approximately 22%. Turning to the balance sheet, total loans were stable, increasing modestly by $12 million from September 30.
Speaker #4: In-market deposits were up by 1% from the end of Q3 and 9% year-over-year, and wholesale funding was down $165 million or 21% from the end of September.
Speaker #4: Total equity amounted to $544 million, up by $11 million from the end of Q3. The dividend remained at 56 cents per share. Turning to credit, in the fourth quarter, the provision for credit losses normalized and our asset quality metrics improved.
Speaker #4: At December 31st, non-accruing loans were 25 basis points on total loans. Non-accruing commercial loans were zero. Past due loans were 22 basis points on total loans.
Ron Ohsberg: Past due loans were 22 basis points on total loans. There was one loan past due at 31 December, and that was brought current in January. We had net recoveries for the quarter of $160,000. At this point, I'll turn the call back to Ned.
Past due loans were 22 basis points on total loans. There was one loan past due at 31 December, and that was brought current in January. We had net recoveries for the quarter of $160,000. At this point, I'll turn the call back to Ned.
Speaker #4: There was one CRE loan past due at December 31, and that was brought current in January. We had net recoveries for the quarter of $160,000.
Speaker #4: And at this point, I'll turn the call back to Ned.
Ned Handy: Thank you, Ron, and we'll now take any questions you might have.
Ned Handy: Thank you, Ron, and we'll now take any questions you might have.
Speaker #1: Thank you, Ron. And we'll now take any questions you might
Speaker #1: have. Thank
Operator: Thank you. Please press star followed by the number one if you'd like to ask a question, and ensure your device is unmuted locally when it's your turn to speak. If you change your mind or your question's already been answered, you can withdraw from the queue by pressing star followed by the number two. Our first question today comes from Mark Fitzgibbon with Piper Sandler. Please go ahead.
Operator: Thank you. Please press star followed by the number one if you'd like to ask a question, and ensure your device is unmuted locally when it's your turn to speak. If you change your mind or your question's already been answered, you can withdraw from the queue by pressing star followed by the number two. Our first question today comes from Mark Fitzgibbon with Piper Sandler. Please go ahead.
Speaker #5: you. Please press star followed by the number one. If you'd like to ask a question, and ensure your device is unmuted locally when it's your turn to speak.
Speaker #5: If you change your mind, or your question's already been answered, you can withdraw from the queue by pressing star followed by the number two.
Speaker #5: Our first question today comes from Mark Fitzgibbon with Piper Sandler. Please go ahead.
Mark Fitzgibbon: Hey, guys. Good morning. Nice quarter.
Mark Fitzgibbon: Hey, guys. Good morning. Nice quarter.
Speaker #6: Hey, guys. Good morning. Nice quarter.
Speaker #1: Thank you, Mark. Good
Ned Handy: Thank you, Mark. Good morning.
Ned Handy: Thank you, Mark. Good morning.
Speaker #1: morning. You
Mark Fitzgibbon: You bet. I guess first question, Ron, I'm curious how you're thinking about the margin. Do you feel like that sort of mid-250 level is kind of sustainable as we move into the early part of 2026?
Mark Fitzgibbon: You bet. I guess first question, Ron, I'm curious how you're thinking about the margin. Do you feel like that sort of mid-250 level is kind of sustainable as we move into the early part of 2026?
Speaker #6: bet. I guess first question, Ron, I'm curious how you think it about the margin. Do you feel like that sort of two mid-250 level is kind of sustainable as we move into the early part of 2026?
Speaker #1: I do, Mark. And I can give you I can give you kind of the full-year outlook on the NAM. I think you're all aware of the swap termination that'll happen at the end of April.
Ned Handy: I do, Mark, and I can give you kind of the full-year outlook on the NEM. I think you're all aware of the swap termination that'll happen at the end of April. So I'll talk about that first. So in the second quarter, we expect the margin to increase 9 basis points related to that item and another 4 basis points in the third quarter. So that's a run rate benefit of 13 basis points that'll be fully baked in in the third quarter. Outside of that, if we talk about organic expansion, we're projecting 3 to 4 basis points per quarter. That is assuming no changes in the Fed funds rate. So that would bring our Q4 estimate to $278 to $282.
Ron Ohsberg: I do, Mark, and I can give you kind of the full-year outlook on the NEM. I think you're all aware of the swap termination that'll happen at the end of April. So I'll talk about that first. So in the second quarter, we expect the margin to increase 9 basis points related to that item and another 4 basis points in the third quarter. So that's a run rate benefit of 13 basis points that'll be fully baked in in the third quarter. Outside of that, if we talk about organic expansion, we're projecting 3 to 4 basis points per quarter. That is assuming no changes in the Fed funds rate. So that would bring our Q4 estimate to $278 to $282.
Speaker #1: So I'll talk about that first. So in the second quarter, we expect the margin to increase 9 basis points related to that item. And another 4 basis points in the third quarter.
Speaker #1: So that's a run-rate benefit of 13 basis points that'll be fully baked in in the third quarter. Outside of that, if we talk about organic expansion, we're projecting 3 to 4 basis points per quarter.
Speaker #1: That is assuming no changes in the Fed funds rate. So that would bring our Q4 estimate to 278 to 282.
Speaker #6: Okay, great. Secondly, I guess I know credit is really good here, but optically, the reserve looks a little light relative to your peers. How do you guys think about that?
Mark Fitzgibbon: Okay. Great. Secondly, I guess I know credit is really good here, but optically, the reserve looks a little light relative to your peers. How do you guys think about that? And is there a conscious plan to sort of nudge that up over time with maybe qualitative factors?
Mark Fitzgibbon: Okay. Great. Secondly, I guess I know credit is really good here, but optically, the reserve looks a little light relative to your peers. How do you guys think about that? And is there a conscious plan to sort of nudge that up over time with maybe qualitative factors?
Speaker #6: And is there a conscious plan to sort of nudge that up over time with maybe qualitative factors?
Ned Handy: Yeah. Bill, do you want to jump in on that?
Ned Handy: Yeah. Bill, do you want to jump in on that?
Speaker #1: Yeah. Bill, do you want to jump in on that?
Speaker #6: Sure. Mark, as you know, we follow the CISO guidelines, which essentially say this is our lifetime loss estimate. We are on the lower side of the spectrum with our peers, although not unduly so.
Mark Fitzgibbon: Sure. Mark, we, as you know, follow the CECL guidelines, which essentially say this is our lifetime loss estimate, and we are on the lower side of the spectrum with our peers, although not unduly so. We run the numbers, we look at our history, and we're very comfortable that it's adequate for our portfolio. And so I think you can expect it may tick up a few bps, tick down a few bps here or there, but we're comfortable in that mid-70 coverage range just based on our portfolio and the loss estimates for it. But obviously, it's something we spend a lot of time on, and we'll be more conservative on the call side when it's merited. Okay. And then you mentioned your.
Bill Ray: Sure. Mark, we, as you know, follow the CECL guidelines, which essentially say this is our lifetime loss estimate, and we are on the lower side of the spectrum with our peers, although not unduly so. We run the numbers, we look at our history, and we're very comfortable that it's adequate for our portfolio. And so I think you can expect it may tick up a few bps, tick down a few bps here or there, but we're comfortable in that mid-70 coverage range just based on our portfolio and the loss estimates for it. But obviously, it's something we spend a lot of time on, and we'll be more conservative on the call side when it's merited.
Speaker #6: We run the numbers. We look at our history. And we're very comfortable that it's adequate for our portfolio. And so I think you can expect it may tick up a few bips tick down a few bips here or there, but we're comfortable in that mid-70 coverage range just based on our portfolio.
Speaker #6: And the loss estimates for it. But obviously, it's something we spend a lot of time on, and we'll be more conservative on the call side when it's merited.
Mark Fitzgibbon: Okay. And then you mentioned your.
Speaker #6: Okay. And then. I'm
Speaker #1: Yeah. And Mark, I'm sorry—Mark.
Ned Handy: Yeah. And then.
Ned Handy: Yeah. And then.
Mark Fitzgibbon: I'm sorry.
Mark Fitzgibbon: I'm sorry.
Speaker #6: sorry.
Ned Handy: I'm sorry, Mark. I would just make one other point. I mean, we still have a relatively large residential portfolio, and so the reserve allocation on that is less than commercial, right? And we'd like to see our residentials come down, to be honest, but that does have an impact on the weighted average reserve coverage.
Ned Handy: I'm sorry, Mark. I would just make one other point. I mean, we still have a relatively large residential portfolio, and so the reserve allocation on that is less than commercial, right? And we'd like to see our residentials come down, to be honest, but that does have an impact on the weighted average reserve coverage.
Speaker #1: I would just make one other point. I mean, we still have a relatively large residential portfolio. And so the reserve allocation on that is less than commercial, right?
Speaker #1: And we'd like to see our residentials come down, to be honest. But that does have an impact on the weighted average reserve
Speaker #1: coverage. Okay.
Mark Fitzgibbon: Okay. Great. And then, Ned, in your opening comments, you made a point that you think there's going to be some wealth management opportunities. Should we take that to mean you're looking at potential M&A in the wealth side, or is that more sort of organic hiring and that sort of thing?
Mark Fitzgibbon: Okay. Great. And then, Ned, in your opening comments, you made a point that you think there's going to be some wealth management opportunities. Should we take that to mean you're looking at potential M&A in the wealth side, or is that more sort of organic hiring and that sort of thing?
Speaker #6: Great. And then, Ned, in your opening comments, you made a point that you think there's going to be some wealth management opportunities. Should we take that to mean you're looking at potential M&A in the wealth side, or is that more sort of organic hiring and that sort of
Speaker #6: thing? Actually, Mark, I was referring
Ned Handy: Actually, Mark, I was referring specifically to the institutional banking team, which serves in large part the not-for-profit sector, higher-end not-for-profit sector. So that was really focused on endowments and retirement funds that might come with that, with growth in that portfolio.
Ned Handy: Actually, Mark, I was referring specifically to the institutional banking team, which serves in large part the not-for-profit sector, higher-end not-for-profit sector. So that was really focused on endowments and retirement funds that might come with that, with growth in that portfolio.
Speaker #1: specifically to the institutional banking team, which is serves in large part the not-for-profit sector, higher-end not-for-profit sector. So that was really focused on endowments and retirement funds that might come with that, with growth in that portfolio.
Mark Fitzgibbon: Gotcha. Thank you.
Mark Fitzgibbon: Gotcha. Thank you.
Speaker #6: Gotcha. Thank you.
Speaker #1: Yep. Thanks,
Ned Handy: Yep. Thanks, Mark.
Ned Handy: Yep. Thanks, Mark.
Speaker #5: Thank you, Mark. Our next question comes from Damon Dalmonte with KBW. Please go ahead.
Operator: Thank you. Our next question comes from Damon DelMonte with KBW. Please go ahead.
Operator: Thank you. Our next question comes from Damon DelMonte with KBW. Please go ahead.
Speaker #7: Hey, good morning, guys. Hope you're all doing well today. Just wanted to start off with kind of a morning—I just wanted to kind of start off with the outlook on expenses, kind of good control going in here to year-end, kind of around just wondering what your thoughts are on the full-year outlook and maybe any variability from a quarter-to-quarter perspective.
Damon DelMonte: Hey. Good morning, guys. Hope you're all doing well today. Just wanted to start off with the outlook on expenses, kind of good control going in here to year-end kind of run. Just wondering what your thoughts are on the full-year outlook and maybe any variability from a quarter-to-quarter perspective?
Damon DelMonte: Hey. Good morning, guys. Hope you're all doing well today. Just wanted to start off with the outlook on expenses, kind of good control going in here to year-end kind of run. Just wondering what your thoughts are on the full-year outlook and maybe any variability from a quarter-to-quarter perspective?
Speaker #1: Yeah, so Damon, I guess I'll break it. Salaries and benefits versus all other in Q1—we're looking at a 6% increase in expenses, which factors in the annual merit raise that comes into play at the beginning of the year.
Ned Handy: Yeah. So, Damon, I guess I'll break it: salaries and benefits versus all other. In Q1, we're looking at a 6% increase in expenses, which factors in annual merit raises, which come into play at the beginning of the year, FICA resets, and those types of things. But we've also made this investment in the institutional team that's coming on board. We also have, I think, as everyone probably has, increased medical insurance, those types of things. So that's what we're kind of seeing for Q1 on the salaries and benefits line. All other expenses, we're looking at year-over-year like a 5% increase. And we also have the branch coming online, so that's going to add to both our salary run rate as well as our expense run rate. Call it a total of $600,000 over the course of the year, starting in late summer, early fall.
Ron Ohsberg: Yeah. So, Damon, I guess I'll break it: salaries and benefits versus all other. In Q1, we're looking at a 6% increase in expenses, which factors in annual merit raises, which come into play at the beginning of the year, FICA resets, and those types of things. But we've also made this investment in the institutional team that's coming on board. We also have, I think, as everyone probably has, increased medical insurance, those types of things. So that's what we're kind of seeing for Q1 on the salaries and benefits line. All other expenses, we're looking at year-over-year like a 5% increase. And we also have the branch coming online, so that's going to add to both our salary run rate as well as our expense run rate. Call it a total of $600,000 over the course of the year, starting in late summer, early fall.
Speaker #1: FICA resets and those types of things. But we've also made this investment in the institutional team that's coming on board. We also have I think, as everyone probably has, increased medical insurance, those types of things.
Speaker #1: So that's what we're kind of seeing for Q1 on the salaries and benefits line. All other expenses, we're looking at year-over-year, like 5% increase and we also have the branch coming online.
Speaker #1: So that's going to add to both our salary run rate as well as our expense run rate. Call it a total of $600,000 over the course of the year, starting in late summer, early fall.
Damon DelMonte: Got it. Okay. Okay. Great. And then kind of can you just give a little update on kind of your outlook with loan growth? Are you optimistic that we can start to get back to that low, mid-single-digit range, kind of given what you're seeing, as well as the recent hires to the commercial lending team? I guess, yeah, just some color on the outlook for loan growth would be great. Thank you.
Damon DelMonte: Got it. Okay. Okay. Great. And then kind of can you just give a little update on kind of your outlook with loan growth? Are you optimistic that we can start to get back to that low, mid-single-digit range, kind of given what you're seeing, as well as the recent hires to the commercial lending team? I guess, yeah, just some color on the outlook for loan growth would be great. Thank you.
Speaker #7: Got it. Okay. Okay. Great. And then kind of can you just give a little update on kind of your outlook with loan growth? Are you optimistic that we can start to get back to that low-mid single-digit range, kind of given what you're seeing?
Speaker #7: And as well as the recent hires to the commercial lending team, I guess, yeah, just some color on the outlook for loan growth would be great.
Speaker #7: Thank you.
Speaker #1: Yeah.
Ned Handy: Yeah. Yeah. Listen, net loan growth wasn't where we wanted it to be kind of closing out the year. But we're expecting 4 to 5% growth in Q3, which would be kind of standard. The C&I team, we think, will grow at a rate faster than that. So I'm not going to put a target on that. They're just getting situated. And then we expect residential to be a net runoff like it was this year. So I would say all in, we're looking at, I would say, a very solid 5% year-over-year, which is an improvement over where we've been in 2025. And we'll leave it at that. But we do have we do have a lot of confidence in this team that we've just brought in, but we'll set the target there for now. Yeah. And, Damon, I would just add a little more color.
Ron Ohsberg: Yeah. Yeah. Listen, net loan growth wasn't where we wanted it to be kind of closing out the year. But we're expecting 4 to 5% growth in Q3, which would be kind of standard. The C&I team, we think, will grow at a rate faster than that. So I'm not going to put a target on that. They're just getting situated. And then we expect residential to be a net runoff like it was this year. So I would say all in, we're looking at, I would say, a very solid 5% year-over-year, which is an improvement over where we've been in 2025. And we'll leave it at that. But we do have we do have a lot of confidence in this team that we've just brought in, but we'll set the target there for now.
Speaker #1: Yeah, listen, net loan growth wasn't where we wanted it to be kind of closing out the year. We're expecting 4 to 5% growth in CRE, which would be kind of standard.
Speaker #1: The CNI team, we think, will grow at a rate faster than that. So I'm not going to put a target on that. They're just getting situated.
Speaker #1: And then we expect residential to be a net runoff like it was this year. So I would say, all in, we're looking at, I would say, a very solid 5% year-over-year, which is an improvement over where we've been in 2025.
Speaker #1: And we'll leave it at that. But we do have a lot of confidence in this team that we've just brought in.
Speaker #1: But we'll set the target there for
Speaker #1: now. Yeah.
Ned Handy: Yeah. And, Damon, I would just add a little more color.
Speaker #6: And Damon, I would just add a little more color. I mean, we had $180 million of credit formation in the quarter. We just had a lot of payoffs.
Ned Handy: I mean, we had $180 million of credit formation in the quarter. We just had a lot of payoffs. And the payoffs were some expected, some earlier than expected. And you saw that we got a pretty sizable prepayment penalty on one of them. But we don't expect that level of prepayment, of early prepayment, to continue. But the new team has been with us for 9 days, so we haven't seen pipeline growth yet. I think we'll be much better positioned next quarter to share our expectations. We have great expectations. They're a very seasoned team that's been in the market for a long time. They look at a lot of potential deal flow as they have for years and years.
I mean, we had $180 million of credit formation in the quarter. We just had a lot of payoffs. And the payoffs were some expected, some earlier than expected. And you saw that we got a pretty sizable prepayment penalty on one of them. But we don't expect that level of prepayment, of early prepayment, to continue. But the new team has been with us for 9 days, so we haven't seen pipeline growth yet. I think we'll be much better positioned next quarter to share our expectations. We have great expectations. They're a very seasoned team that's been in the market for a long time. They look at a lot of potential deal flow as they have for years and years.
Speaker #6: And the payoffs were some expected, some earlier than expected. And you saw that we got a pretty sizable prepayment penalty on one of them.
Speaker #6: But we don't expect that level of prepayment to early prepayment to continue. But the new team has been with us for nine days. So we don't we haven't seen pipeline growth yet.
Speaker #6: I think we'll be much better positioned next quarter to share our expectations. We have great expectations. They're a very seasoned team that's been in the market for a long time.
Speaker #6: They look at a lot of potential deal flow as they have for years and years. And so we have high hopes and great expectations, all in the CNI space, which we've been talking about for a while.
Ned Handy: And so we have high hopes and great expectations, all in the C&I space, which we've been talking about for a while, figuring out strategically how to kind of change the balance sheet around and grow the C&I side a little faster. The growth that Ron talked about on the Q3 side is a little bit due to the continued concentration level. And so we're being careful on that front and really want to focus on helping this team be successful on the C&I front.
And so we have high hopes and great expectations, all in the C&I space, which we've been talking about for a while, figuring out strategically how to kind of change the balance sheet around and grow the C&I side a little faster. The growth that Ron talked about on the Q3 side is a little bit due to the continued concentration level. And so we're being careful on that front and really want to focus on helping this team be successful on the C&I front.
Speaker #6: Figuring out strategically how to kind of change the balance sheet around and grow the CNI side a little faster the growth that Ron talked about on the CRE side is a little bit due to the continued concentration level.
Speaker #6: And so we're being careful on that front, and really want to focus on helping this team be successful in the CNI.
Speaker #6: front. Got
Damon DelMonte: Got it. Great. I appreciate you taking my questions. Thank you.
Damon DelMonte: Got it. Great. I appreciate you taking my questions. Thank you.
Speaker #7: Great. I appreciate you taking my questions. Thank you.
Speaker #1: Thanks, Damon.
Ned Handy: Thanks, Damon.
Ned Handy: Thanks, Damon.
Speaker #5: Thank you. Our next question today comes from Laurie Hunziker with Seaport Research Partners. Your line's open. Please go
Operator: Thank you. Our next question today comes from Laurie Hunsicker with Seaport Research Partners. Your line's open. Please go ahead.
Operator: Thank you. Our next question today comes from Laurie Hunsicker with Seaport Research Partners. Your line's open. Please go ahead.
Speaker #8: Yeah. ahead. Hi. Good morning. Just to circle back to the CNI group, can you share with us how many people are there and how much they did last year collectively?
Laura Hunsicker: Yeah. Hi. Good morning.
Laurie Hunsicker: Yeah. Hi. Good morning.
Ned Handy: Good morning, Laurie.
Ned Handy: Good morning, Laurie.
Laura Hunsicker: Just to circle back to the C&I group, can you share with us how many people are there and how much they did last year collectively? Maybe where they came?
Laurie Hunsicker: Just to circle back to the C&I group, can you share with us how many people are there and how much they did last year collectively? Maybe where they came?
Speaker #8: Maybe where they came?
Speaker #1: I don't have details on what they did last year collectively, but they're four people in the team. They came over. We will add a treasury management specialist to that team.
Ned Handy: I don't have details on what they did last year collectively, but there are four people in the team that came over. We will add a treasury management specialist to that team because of their tendency to deliver deposits. They've had, and the leader of the group has 30+ years in this space in the Northeast region, very well-known, and they've been highly successful at prior institutions. So, yeah, we're very confident, Laurie. And, again, I think they've been here nine days. Let's take a little time to build the pipeline up, but we'll report in detail, I think, probably as soon as next quarter.
Ned Handy: I don't have details on what they did last year collectively, but there are four people in the team that came over. We will add a treasury management specialist to that team because of their tendency to deliver deposits. They've had, and the leader of the group has 30+ years in this space in the Northeast region, very well-known, and they've been highly successful at prior institutions. So, yeah, we're very confident, Laurie. And, again, I think they've been here nine days. Let's take a little time to build the pipeline up, but we'll report in detail, I think, probably as soon as next quarter.
Speaker #1: Because of their tendency to deliver deposits, they are they've had a the leader of the group has 30-plus years in this space in the Northeast region.
Speaker #1: Very well-known and they've been highly successful at prior institutions. So yeah, we're very confident, Laurie, and again, I think they've been here nine days.
Speaker #1: Let's take a little time to build the pipeline up, but we'll report in detail—I think probably as soon as next quarter.
Speaker #8: Okay. And where did they come
Laura Hunsicker: Okay. And where did they come from?
Laurie Hunsicker: Okay. And where did they come from?
Speaker #8: from?
Speaker #1: They were most
Ned Handy: They were most recently at Brookline.
Ned Handy: They were most recently at Brookline.
Speaker #1: recently at Brookline.
Speaker #8: Gotcha. Okay. Gotcha. So then, is that focus basically in the greater Boston MSA?
Laura Hunsicker: Gotcha. Okay. Gotcha. So then is that focus basically in the greater Boston MSA?
Laurie Hunsicker: Gotcha. Okay. Gotcha. So then is that focus basically in the greater Boston MSA?
Speaker #1: Yeah. I'm sorry. Laurie, ask that one more
Ned Handy: I'm sorry, Laurie. Ask that one more time.
Ned Handy: I'm sorry, Laurie. Ask that one more time.
Speaker #8: Yeah. So the loan focus, is that going to be in the greater Boston MSA?
Laura Hunsicker: Yeah. So the loan focus, is that going to be in the greater Boston MSA?
Laurie Hunsicker: Yeah. So the loan focus, is that going to be in the greater Boston MSA?
Speaker #1: Northeast region. So, broader than just the Boston MSA.
Ned Handy: Northeast region. So broader than just the Boston MSA.
Ned Handy: Northeast region. So broader than just the Boston MSA.
Speaker #8: Gotcha. Okay. And then going to expenses, Ron, the one-quarter increase—sorry, the 6% increase for one quarter off fourth quarter—that's obviously netting out the charitable foundation charge.
Laura Hunsicker: Gotcha. Okay. And then going to expenses, Ron, the one quarter increase, sorry, the 6% increase for one quarter off four quarters, that's obviously netting out the charitable foundation charge. Is that correct? Or are you thinking about.
Laurie Hunsicker: Gotcha. Okay. And then going to expenses, Ron, the one quarter increase, sorry, the 6% increase for one quarter off four quarters, that's obviously netting out the charitable foundation charge. Is that correct? Or are you thinking about.
Speaker #8: Is that correct, or are you thinking
Speaker #8: about? That from Yeah.
Ned Handy: Yeah.
Ron Ohsberg: Yeah.
Laura Hunsicker: That from the $38 million?
Laurie Hunsicker: That from the $38 million?
Speaker #8: the $38 million base? Yeah. Okay. Okay. And then how should we think about the charitable foundation charge in 26? I think you previously guided to 500,000, but should we be thinking that at a median?
Ned Handy: Yeah.
Ron Ohsberg: Yeah.
Laura Hunsicker: Okay. Okay. And then how should we think about the charitable foundation charge in 2026? I think you previously guided to $500,000, but should we be thinking that at $1 million?
Laurie Hunsicker: Okay. Okay. And then how should we think about the charitable foundation charge in 2026? I think you previously guided to $500,000, but should we be thinking that at $1 million?
Speaker #1: Yeah. Yeah. We penciled in 750 for the end of the
Ned Handy: Yeah. We penciled in $750 for the end of the year.
Ron Ohsberg: Yeah. We penciled in $750 for the end of the year.
Speaker #1: year. Okay.
Laura Hunsicker: Okay. Great. And then I guess branching, obviously, we've got that ticket coming. Is there anything else you're thinking about, or should we be thinking about kind of maybe one branch in 2027 as well? How do you think about that?
Laurie Hunsicker: Okay. Great. And then I guess branching, obviously, we've got that ticket coming. Is there anything else you're thinking about, or should we be thinking about kind of maybe one branch in 2027 as well? How do you think about that?
Speaker #8: Great. And then I guess branching, obviously, we've got that ticket coming. Is there anything else you're thinking about, or should we be thinking about kind of maybe one branch in 27 as well?
Speaker #8: How do you think about
Speaker #8: that? Yeah.
Ned Handy: Yeah. So for 2026, that's it. But Michelle Kile, our head of retail banking, has developed a plan that we're reviewing as part of our strategic outlook that it may not be full-service branches. It might be alternative delivery, ATMs, and the like that she's developing a sort of full sketch on. So nothing else on the docket in 2026, but I think it's safe to say that we will continue to invest in our retail footprint in the outer years. Laurie, we've done one or two branches a year for the last five years. I think that order of magnitude is probably reasonable going forward. The form of it might be a little different.
Ned Handy: Yeah. So for 2026, that's it. But Michelle Kile, our head of retail banking, has developed a plan that we're reviewing as part of our strategic outlook that it may not be full-service branches. It might be alternative delivery, ATMs, and the like that she's developing a sort of full sketch on. So nothing else on the docket in 2026, but I think it's safe to say that we will continue to invest in our retail footprint in the outer years. Laurie, we've done one or two branches a year for the last five years. I think that order of magnitude is probably reasonable going forward. The form of it might be a little different.
Speaker #1: So for 26, the ticket's it. But Michelle Kyle, our head of retail banking, has developed a plan that we're reviewing as part of our strategic outlook that it may not be full-service branches.
Speaker #1: It might be alternative delivery, ATMs, and the like that she's developing—a sort of full sketch on. So, nothing else on the docket in 2026, but I think it's safe to say that we will continue to invest in our retail footprint in the outer years.
Speaker #1: Laurie, we've done one or two branches a year for the last five years. I think that order of magnitude is probably reasonable going forward.
Speaker #1: The form of it might be a little different.
Speaker #8: Okay. Okay. That's great. And obviously, credit, you're probably one of the few banks in the entire country with zero CRE non-performers, zero CNI non-performers, and booking recoveries.
Laura Hunsicker: Okay. Okay. That's great. And obviously, credit. You're probably one of the few banks in the entire country with zero Q3 non-performers, zero C&I non-performers, and booking recoveries. But just a very quick question. The $6 million of office classified, any color on that, and when does that mature?
Laurie Hunsicker: Okay. Okay. That's great. And obviously, credit. You're probably one of the few banks in the entire country with zero Q3 non-performers, zero C&I non-performers, and booking recoveries. But just a very quick question. The $6 million of office classified, any color on that, and when does that mature?
Speaker #8: But just very quick question. The $6 million of office classified, any color on that, and when does that
Speaker #8: mature? Yeah.
Ned Handy: Yeah. Yeah, Bill, you want to take that one?
Ned Handy: Yeah. Yeah, Bill, you want to take that one?
Speaker #1: Yeah. Bill, you want to take that
Speaker #1: one? Sure.
Mark Fitzgibbon: Sure. Sure. That matures in 2031. So plenty of running room there. Extremely strong, dedicated sponsors. Occupancy right now is in the mid-40% but growing, so the building's getting close to break-even. I think it's just going to be a long, slow nursing process, but the sponsors are fully committed, and they are building it up slowly. So we feel comfortable about it. That's why it's accruing. And by the way, it's completely current. So we think we're going to nurse our way through on this one.
Bill Ray: Sure. Sure. That matures in 2031. So plenty of running room there. Extremely strong, dedicated sponsors. Occupancy right now is in the mid-40% but growing, so the building's getting close to break-even. I think it's just going to be a long, slow nursing process, but the sponsors are fully committed, and they are building it up slowly. So we feel comfortable about it. That's why it's accruing. And by the way, it's completely current. So we think we're going to nurse our way through on this one.
Speaker #3: Sure. That matures in 2031, so plenty of room and runway there. Extremely strong, dedicated sponsors. Occupancy right now is in the mid-40%, but growing.
Speaker #3: So, the building's getting close to break-even. I think it's just going to be a long, slow nursing process. But the sponsors are fully committed.
Speaker #3: And they are building it up slowly. So we feel comfortable about it. That's why it's accruing. And by the way, it's completely current. So we think we're going to nurse our way through on this one.
Speaker #8: Great, great. Well, congratulations on credit—really, really great. Okay. So, putting it all together, your earnings power is obviously very, very strong. In Q3, you had dialed back comments around buybacks, and we're seeing buybacks ramp up across the board.
Laura Hunsicker: Great. Great. Well, congratulations on credit. Really, really great. Okay. So putting it all together, your earnings power is obviously very, very strong. In Q3, you had dialed back comments around buybacks, and we're seeing buybacks ramp up across the board. As we're looking here, your CET1, almost 12%, your risk-based 13%. I mean, why wouldn't you revisit buybacks here? How do you think about that?
Laurie Hunsicker: Great. Great. Well, congratulations on credit. Really, really great. Okay. So putting it all together, your earnings power is obviously very, very strong. In Q3, you had dialed back comments around buybacks, and we're seeing buybacks ramp up across the board. As we're looking here, your CET1, almost 12%, your risk-based 13%. I mean, why wouldn't you revisit buybacks here? How do you think about that?
Speaker #8: As we're looking here, your CET1 is almost 12%, your risk-based is 13%. I mean, why wouldn't you revisit buybacks here? How do you think about that?
Speaker #1: Yeah. Laurie, I think it's our kind of our standard answer that we take it under consideration all the time. And taking into account other ways that we think that we need to deploy capital.
Ned Handy: Yeah. Laurie, I think it's kind of our standard answer that we take it under consideration all the time and take into account other ways that we think that we need to deploy capital. So not saying that we're going to do more and not saying that we won't, but we'll just have to take that as it comes.
Ron Ohsberg: Yeah. Laurie, I think it's kind of our standard answer that we take it under consideration all the time and take into account other ways that we think that we need to deploy capital. So not saying that we're going to do more and not saying that we won't, but we'll just have to take that as it comes.
Speaker #1: So not saying that we're going to do more and not saying that we won't. But we'll just have to take that as it
Speaker #1: comes. Okay.
Laura Hunsicker: Okay. And just remind me, what's existing in your current authorization?
Laurie Hunsicker: Okay. And just remind me, what's existing in your current authorization?
Speaker #8: And just remind me, what's existing in your current authorization?
Speaker #1: I don't have that information off the top, Laurie. I have to look that up.
Ned Handy: I don't have that information off the top, Laurie. I have to look that up.
Ron Ohsberg: I don't have that information off the top, Laurie. I have to look that up.
Speaker #8: Okay. Okay. Great. Hey, thanks so much. Great job on this.
Laura Hunsicker: Okay. Okay. Great. Hey, thanks so much. Great job on this quarter.
Laurie Hunsicker: Okay. Okay. Great. Hey, thanks so much. Great job on this quarter.
Speaker #8: quarter. Okay.
Ned Handy: Okay. Thanks, Laurie.
Ned Handy: Okay. Thanks, Laurie.
Speaker #1: Thanks, Laurie.
Speaker #8: Thank you. And next question comes from Ross Haberman with RLH Investments. Please go ahead.
Operator: Thank you. Our next question comes from Ross Haberman with RLH Investments. Please go ahead.
Operator: Thank you. Our next question comes from Ross Haberman with RLH Investments. Please go ahead.
Speaker #3: Good morning, gentlemen. What's my questions have been answered? Thank you. Could you just talk about your wealth management and what you're doing to basically expand that a little faster in 26?
Mark Fitzgibbon: Good morning, gentlemen. Most of my questions have been answered. Thank you. Could you just talk about your wealth management and what you're doing to basically expand that a little faster in 2026? Thank you.
Ross Haberman: Good morning, gentlemen. Most of my questions have been answered. Thank you. Could you just talk about your wealth management and what you're doing to basically expand that a little faster in 2026? Thank you.
Speaker #3: Thank
Speaker #3: you.
Ned Handy: Thank you, Ross. Good morning. So, yeah, we've added some business development officers. We are hopeful, although I think we need a little more than nine days' time to pass, but we're hopeful that this team that is focused mostly on the nonprofit sector will help us with the various things that will come out of that client base, which is generally higher ed, healthcare, and private schools, that sort of thing that tend to have endowments and retirement plans. So we're hopeful there. M&A, we're happy with the Lighthouse deal that we did in 2025. That's a part of the ongoing strategy. It's probably not the primary focus. And prices are high, and so we have to be careful about price and culture and fit. And, again, we're happy with what we bought in 2025.
Ned Handy: Thank you, Ross. Good morning. So, yeah, we've added some business development officers. We are hopeful, although I think we need a little more than nine days' time to pass, but we're hopeful that this team that is focused mostly on the nonprofit sector will help us with the various things that will come out of that client base, which is generally higher ed, healthcare, and private schools, that sort of thing that tend to have endowments and retirement plans. So we're hopeful there. M&A, we're happy with the Lighthouse deal that we did in 2025. That's a part of the ongoing strategy. It's probably not the primary focus. And prices are high, and so we have to be careful about price and culture and fit. And, again, we're happy with what we bought in 2025.
Speaker #1: So yeah, we've added some business development officers. We are hopeful, although I think we need a little more than nine days' time to pass.
Speaker #1: But we're hopeful that this team, which is focused mostly on the nonprofit sector, will help us with the various things that will come out of that client base, which is generally higher ed, healthcare, and private schools— that sort of thing that tends to have endowments and retirement plans.
Speaker #1: So we're hopeful there. M&A we're happy with the Lighthouse deal that we did in 2025. That's a part of the ongoing strategy. It's probably not the primary focus.
Speaker #1: And prices are high. And so we have to be careful about price and culture and fit and we're, again, we're happy with what we bought in 2025.
Speaker #1: And so we're not aggressively looking for opportunities, but we're opportunistic. And we'll keep our eyes open on the M&A front. And in that case, it would be relatively smaller tuck-in transactions that, again, that fit with our style of how we go to market and how we run the group.
Ned Handy: And so we're not aggressively looking for opportunities, but we're opportunistic, and we'll keep our eyes open on the M&A front. And in that case, it would be relatively smaller tuck-in transactions that, again, fit with our style of how we go to market and how we run the group. Well, so when one of those.
And so we're not aggressively looking for opportunities, but we're opportunistic, and we'll keep our eyes open on the M&A front. And in that case, it would be relatively smaller tuck-in transactions that, again, fit with our style of how we go to market and how we run the group. Well, so when one of those.
Speaker #1: Well, so one
Mark Fitzgibbon: And so we're also adding some assets for averages. Sorry.
Ross Haberman: And so we're also adding some assets for averages. Sorry.
Speaker #1: Sorry. I was just Sorry.
Ned Handy: So I was just going to say we're also adding.
Ned Handy: So I was just going to say we're also adding.
Speaker #1: Going to say we've also added. We've also turned on On.
Mark Fitzgibbon: And so we're also adding.
Ned Handy: And so we're also.
Speaker #3: assets.
Mark Fitzgibbon: On assets?
Ross Haberman: On assets?
Ned Handy: On wealth.
Ron Ohsberg: On wealth.
Speaker #1: the wealth?
Speaker #3: Well, on wealth—yeah, sorry—your fee structure, sorry. Your average fees, is it somewhere between a half and 100 basis points?
Mark Fitzgibbon: On wealth. Yeah. Yeah. Sorry. Your fee structure, sorry, your average fees, is it somewhere between a half and 100 basis points?
Ross Haberman: On wealth. Yeah. Yeah. Sorry. Your fee structure, sorry, your average fees, is it somewhere between a half and 100 basis points?
Speaker #1: Yeah, I would say all in, on average, it's about, I think, 60 basis points.
Ned Handy: Yeah. I would say all in on average, it's about, I think, 60 basis points.
Ron Ohsberg: Yeah. I would say all in on average, it's about, I think, 60 basis points.
Mark Fitzgibbon: Yeah. Got it. Okay. I'm sorry. I cut you guys off. You were going to say something. I apologize.
Ned Handy: Yeah.
Mark Fitzgibbon: Got it. Okay. I'm sorry. I cut you guys off. You were going to say something. I apologize.
Speaker #3: Got it. Yeah. Okay. I'm sorry. I cut you guys off. You were going to say something. I
Speaker #3: apologize. No, no.
Ned Handy: No, no. You got the 60 basis points, right? Yeah.
Ned Handy: No, no. You got the 60 basis points, right?
Speaker #1: You got the 60 basis points, right? Yeah.
Ron Ohsberg: Yeah.
Mark Fitzgibbon: Yes, I did.
Mark Fitzgibbon: Yes, I did.
Speaker #1: Okay. I was just going to say that yes, I did. We've also added some people on the financial planning side of things, so we think that's a great retention tool.
Ned Handy: Okay. Yeah. I was just going to say that we've also added someone in the financial planning side of things. So we think that's a great retention tool. We think it's a great way to appeal to sort of next-gen and full families. And so we continue to invest in that side of the business.
Ned Handy: Okay. Yeah. I was just going to say that we've also added someone in the financial planning side of things. So we think that's a great retention tool. We think it's a great way to appeal to sort of next-gen and full families. And so we continue to invest in that side of the business.
Speaker #1: We think it's a great way to appeal to sort of next-gen and full families and so we continue to invest in that side of the business.
Speaker #3: Thank you very much.
Mark Fitzgibbon: Thank you very much.
Laurie Hunsicker: Thank you very much.
Speaker #1: Thanks, Ross.
Ned Handy: Thanks, Ross. Laurie, just to follow up on your question, we had 850 authorized, and we've got 582,000 shares remaining.
Ned Handy: Thanks, Ross. Laurie, just to follow up on your question, we had 850 authorized, and we've got 582,000 shares remaining.
Speaker #2: And Laurie, just to follow up on your question, we had 850 authorized, and we've got 582,000 shares.
Speaker #2: remaining.
Speaker #8: Thank you. And just a final
Operator: Thank you. Just a final reminder, please press star one if you'd like to ask a question today. We have nothing else on the line, so I'll pass you back over to Ned for any closing comments.
Operator: Thank you. Just a final reminder, please press star one if you'd like to ask a question today. We have nothing else on the line, so I'll pass you back over to Ned for any closing comments.
Speaker #8: reminder, please press star one if you'd like to ask a question today. We have nothing else on the line. So I'll pass you back over to Ned for any closing
Speaker #8: comments. Thank you, Olivia.
Ned Handy: Thank you, Lydia. And thank you all. As we move into the new year, we remain committed to delivering value as a full-service community bank and long-term financial partner to our customers with a disciplined focus on long-term performance. So really appreciate your time today and your interest and support, and we look forward to speaking to you all again soon. Have a great day, everybody.
Ned Handy: Thank you, Lydia. And thank you all. As we move into the new year, we remain committed to delivering value as a full-service community bank and long-term financial partner to our customers with a disciplined focus on long-term performance. So really appreciate your time today and your interest and support, and we look forward to speaking to you all again soon. Have a great day, everybody.
Speaker #1: And thank you all. As we move into the new year, we remain committed to delivering value as a full-service community bank and long-term financial partner to our customers.
Speaker #1: With a disciplined focus on long-term performance, so we really appreciate your time today, and your interest and support. We look forward to speaking to you all again soon.
Speaker #1: Have a great day, everybody.
Operator: This concludes our call today. Thank you very much for joining. You may now disconnect your line.
Operator: This concludes our call today. Thank you very much for joining. You may now disconnect your line.
