TORONTO, Jan. 28, 2026 /PRNewswire/ -- 3iQ Corp. ("3iQ"), a global pioneer in institutional digital asset investment solutions, is pleased to announce the appointment of Chris Desjardins as Chief Technology Officer. Chris is a technology executive and entrepreneur with over twenty years...
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Capitol Federal Financial, Inc.® (NASDAQ:CFFN) (the "Company," "we" or "our"), the parent company of Capitol Federal Savings Bank (the "Bank"), announced preliminary results today for the quarter ended December 31, 2025. For best viewing results, please view this release in Portable Document Format (PDF) on our website, https://ir.capfed.com.Capitol Federal Financial, Inc., ended the current quarter with total assets of $9.78 billion, stockholders' equity of $1.04 billion and net income of $20.3 million. The continued growth in assets and improvement in net income is a direct result of the strategic operational changes that the Board and management continue to execute on. Stockholders' equity decreased during the current quarter due to strategic share repurchases and dividend payments, continuing our enhancement of stockholder value.During the current quarter, executing on our strategic initiatives resulted in our commercial loan portfolio and commercial deposits growing by $162.6 million to $2.28 billion and $19.5 million to $527.7 million, respectively. We continue to grow our commercial loan portfolio through redeploying funds received from the repayment of correspondent loans. We expect that growth in the commercial deposit base will continue to lower our cost of funds.John B. Dicus, Chairman and CEO, stated, "We are focused on our commitment to deliver long-term value to stockholders through the disciplined execution of our strategic changes. This is reflected in a more diversified loan portfolio, and a growing and diversified deposit base, both of which provide expanded income streams. We expect these benefits to continue as we implement technology and processes that enable us to deliver more commercial products and services through our seasoned team of professionals focused on our commercial business lines. We are building on our disciplined capital management approach which has returned $2.03 billion to stockholders through share repurchases and dividends since 2010. We continue to focus on all areas of the Bank's operations that drive long-term value for stockholders."Highlights for the current quarter include:net income of $20.3 million, up from $18.8 million for the quarter ended September 30, 2025 (the "prior quarter");net interest margin increased ten basis points to 2.19% from 2.09% the prior quarter;basic and diluted earnings per share of $0.16;an efficiency ratio of 53.66%, an improvement from 56.84% the prior quarter;an operating expense ratio of 1.24%, an improvement from 1.27% the prior quarter;paid dividends of $0.085 per share; andrepurchased 2,376,633 shares of common stock at an average price of $6.86 per share.Balance sheet highlights include:total assets of $9.78 billion at quarter-end;tangible book value per share of $7.95 at quarter-end;commercial loan growth of $162.6 million, or 30.7% annualized, during the current quarter;commercial deposits growth of $19.5 million, or 15.3% annualized, since September 30, 2025;distributed $25.0 million from the Bank to the Company;on December 17, 2025, the Company announced a special cash dividend of $0.04 per share, which was paid on January 23, 2026;on January 27, 2026, the Company announced a cash dividend of $0.085 per share, payable on February 20, 2026 to stockholders of record as of the close of business on February 6, 2026.Strategic Banking InitiativesThe Company continues its progression to a full-service commercial bank by investing in technology, people, products, and services. Our investments in technology have allowed us to launch new services and products, while our seasoned and well-connected commercial bankers, and our trust and wealth advisors deliver access to new customer groups. Our expanded product suite of treasury management services enables us to service these new customers. Increased marketing and business development efforts have increased the depth of customer relationships. As we move through the third year of our digital transformation, we are seeing our efforts bear fruit and expect progress to continue.Strategic Actions. The long-term success of our transition to a full-service bank is predicated on management's continued focus on deepening relationships with consumer and commercial customers. Management and the Board have committed resources to support the growth of talented, skilled, and experienced bankers, investments in technology, expanded marketing and outreach, as well as the development and increased internal monitoring of performance metrics intended to ensure we are on the path to achieve our performance objectives. Through our experienced relationship managers, we deliver customized solutions using advanced digital platforms and sophisticated cash management tools. We are leveraging our centralized organizational structure to respond quickly to customers. We are actively pursuing opportunities to expand our non-interest-bearing commercial deposit base and diversify fee-based revenue streams through strategic growth in treasury management services, trust and wealth management services, insurance, and small business banking.Commercial Lending. During the first quarter of the current fiscal year, we closed on $364.6 million in commercial loans compared to $263.1 million during the prior quarter. Commercial loans continue to grow as a percentage of our overall loan portfolio, comprising 28% of our loan portfolio at December 31, 2025, compared to 26% and 21% at September 30, 2025 and December 31, 2024, respectively. To maintain strong credit quality, in addition to disciplined underwriting and ongoing credit administration, we monitor concentration levels by collateral type, geographic location and borrowing relationship. The Bank utilizes commercial loan pricing and profitability software that provides insights on new lending opportunities based on the full customer banking relationship. We utilize software that provides market intelligence regarding competitor pricing to assist loan officers when preparing a loan offering. This enhances our ability to profitably compete with other financial institutions in our markets as well as those outside our markets.Treasury Management. The Bank services commercial customers through a competitive suite of treasury management products and an experienced team of treasury management officers. This team is focused on the deposit and cash management needs of commercial customers and growing this line of business through the acquisition of new customers located both in our immediate market areas, and those who we lend to outside of our local market areas. In fiscal year 2026, a team of business development officers is also tasked with growing the deposit base within the small business customer segment, focused on serving small businesses in our market areas with a dedicated line of products specifically designed for these customers. Our treasury management officers and business development officers often land depository relationships independent of a lending relationship. This will be a focus area for our sales teams as well as the Bank continues to diversify funding sources and seeks to increase fee revenue tied to depository accounts. During the second quarter of fiscal year 2026, the Bank expects to introduce digital onboarding for small business customers using industry-leading risk management and screening tools, which will replace many manual verification tasks. We are evaluating additional technology in order to capture a larger share of their business with even more products and services. Within calendar year 2026, we expect to implement new technology for lockbox services, integrated accounts receivables, purchase cards, and corporate cards.Digital Banking. We are advancing towards a seamless digital banking experience for all customers, enhancing the Bank's ability to attract and retain deposits and lower the cost to service our customers. This strategy includes a new deposit account onboarding platform and digital banking enhancements for debit cardholders, which will allow customers to begin using their card immediately online and in digital wallets without waiting for the delivery of a physical card. These enhancements are on track to be implemented in the second quarter of fiscal year 2026. The Bank is taking advantage of add-on technologies that will integrate into our digital banking experience for consumers, small businesses, and commercial customers.Private Banking, Trust and Wealth Management. We have begun to implement private wealth management products and services, with some customers on-boarded during the first quarter of the current fiscal year. We are continuing to expand our comprehensive suite of private banking products and services which is a new line of business for the Bank. Private banking relationships are defined as customers with $5.0 million or more in personal relationships with the Bank by way of loans, deposits, or assets under management. We believe that our private banking line of business will be a gateway to driving off-balance sheet revenue and bridge the gap between high-net-worth depository customers, small business owners and key commercial customers, and corporate trustee opportunities for the Bank.Stockholder Value. Delivering long-term sustainable stockholder value continues to be our North Star while also maintaining a strong capital position. As part of our historically robust and disciplined approach to capital management, we continue to generate returns to stockholders through dividend payments and share repurchases. Total dividends declared and paid during fiscal year 2025 were $44.3 million. During the first quarter of fiscal year 2026, the Company repurchased 2,376,633 shares for $16.3 million. Since completing our second-step conversion in December 2010, we have returned $2.03 billion to stockholders through $1.58 billion in cash dividends and $456.2 million in share repurchases. For the remainder of fiscal year 2026, it is the intention of the Board of Directors to continue the regular quarterly cash dividend of $0.085 per share and to seek further opportunities for value-enhancing share repurchases.Comparison of Operating Results for the Three Months Ended December 31, 2025 and September 30, 2025For the quarter ended December 31, 2025, the Company recognized net income of $20.3 million, or $0.16 per share, compared to net income of $18.8 million, or $0.14 per share, for the quarter ended September 30, 2025. The increase in net income was due primarily to higher net interest income, partially offset by higher income tax expense. The net interest margin increased ten basis points, from 2.09% for the prior quarter to 2.19% for the current quarter due mainly to growth in the higher yielding commercial loan portfolio.Interest and Dividend IncomeThe following table presents the components of interest and dividend income for the time periods presented, along with the change measured in dollars and percent. For the Three Months Ended December 31, September 30, Change Expressed in: 2025 2025 Dollars Percent (Dollars in thousands) INTEREST AND DIVIDEND INCOME: Loans receivable$89,792 $87,343 $2,449 2.8%Mortgage-backed securities ("MBS") 11,341 11,808 (467) (4.0)Cash and cash equivalents 2,773 2,148 625 29.1 Federal Home Loan Bank Topeka ("FHLB") stock 2,032 2,163 (131) (6.1)Investment securities 51 582 (531) (91.2)Total interest and dividend income$105,989 $104,044 $1,945 1.9 The increase in interest income on loans receivable was due mainly to increases in the average balance and yield of the commercial loan portfolio compared to the prior quarter. The decrease in interest income on MBS and investment securities was due primarily to a decrease in the average balance of each portfolio compared to the prior quarter, as cash flows from those portfolios were used to fund commercial loan growth. The increase in interest income on cash and cash equivalents was due to an increase in the average balance.Interest ExpenseThe following table presents the components of interest expense for the time periods presented, along with the change measured in dollars and percent. For the Three Months Ended December 31, September 30, Change Expressed in: 2025 2025 Dollars Percent (Dollars in thousands) INTEREST EXPENSE: Deposits$37,500 $37,204 $296 0.8%Borrowings 17,172 18,057 (885) (4.9)Total interest expense$54,672 $55,261 $(589) (1.1)The decrease in borrowings expense was due to a decrease in the average balance, due mainly to FHLB borrowings that matured between periods and were not replaced. Deposit growth was used to repay these borrowings.Provision for Credit LossesThe Company recorded a provision for credit losses of $1.1 million during the current quarter compared to a provision for credit losses of $519 thousand for the prior quarter. The provision for credit losses in the current quarter was due primarily to commercial loan growth.Non-Interest IncomeThe following table presents the components of non-interest income for the time periods presented, along with the change measured in dollars and percent. For the Three Months Ended December 31, September 30, Change Expressed in: 2025 2025 Dollars Percent (Dollars in thousands) NON-INTEREST INCOME: Deposit service fees$2,872 $2,873 $(1) —%Insurance commissions 789 1,018 (229) (22.5)Other non-interest income 1,818 1,900 (82) (4.3)Total non-interest income$5,479 $5,791 $(312) (5.4)Insurance commissions were higher in the prior quarter, due primarily to the receipt of commissions that exceeded accruals, with no similar activity in the current quarter, along with insurance industry changes that reduced commissions on certain lines of business in the current quarter. Due to these industry changes, we are broadening our focus on commercial insurance lines during fiscal year 2026, which aligns with our strategy of expanding our commercial banking services.Non-Interest ExpenseThe following table presents the components of non-interest expense for the time periods presented, along with the change measured in dollars and percent. For the Three Months Ended December 31, September 30, Change Expressed in: 2025 2025 Dollars Percent (Dollars in thousands) NON-INTEREST EXPENSE: Salaries and employee benefits$15,747 $15,936 $(189) (1.2%)Information technology and related expense 5,134 5,053 81 1.6 Occupancy, net 3,450 3,292 158 4.8 Regulatory and outside services 1,789 1,590 199 12.5 Federal insurance premium 1,111 1,114 (3) (0.3)Advertising and promotional 1,056 1,915 (859) (44.9)Deposit and loan transaction costs 716 658 58 8.8 Office supplies and related expense 481 490 (9) (1.8)Other non-interest expense 992 970 22 2.3 Total non-interest expense$30,476 $31,018 $(542) (1.7)The increase in regulatory and outside services was due primarily to an increase in new relationships with outside service providers and additional services provided by current providers, of which approximately $325 thousand is not expected to recur in future periods. The decrease in advertising and promotional expense was due primarily to the timing of campaigns and seasonal sponsorships compared to the prior quarter.The Company's efficiency ratio was 53.66% for the current quarter compared to 56.84% for the prior quarter. The improvement in the efficiency ratio was due to higher net interest income during the current quarter, supported by lower non-interest expense. The efficiency ratio is a measure of a financial institution's total non-interest expense as a percentage of the sum of net interest income (pre-provision for credit losses) and non-interest income. A lower value generally indicates that it is costing the financial institution less money to generate revenue. The Company's operating expense ratio (annualized) for the current quarter was 1.24% compared to 1.27% for the prior quarter. The operating expense ratio was lower in the current quarter due to lower non-interest expense. The operating expense ratio is a measure of a financial institution's total non-interest expense as a percentage of average assets, providing insight into how efficiently the Company is managing its expenses in relation to its assets and does not take into consideration changes in interest rates.Income Tax ExpenseThe following table presents pretax income, income tax expense, and net income for the time periods presented, along with the change measured in dollars and percent and the effective tax rate. For the Three Months Ended December 31, September 30, Change Expressed in: 2025 2025 Dollars Percent (Dollars in thousands) Income before income tax expense$25,214 $23,037 $2,177 9.5%Income tax expense 4,910 4,224 686 16.2 Net income$20,304 $18,813 $1,491 7.9 Effective Tax Rate 19.5% 18.3% Income tax expense was higher in the current quarter due to a higher effective tax rate and higher pretax income compared to the prior quarter. The effective tax rate was higher in the current quarter than the prior quarter due primarily to a slightly higher projected state tax rate in the current fiscal year.Comparison of Operating Results for the Three Months Ended December 31, 2025 and 2024The Company recognized net income of $20.3 million, or $0.16 per share, for the current quarter, compared to net income of $15.4 million, or $0.12 per share, for the prior year quarter. The increase in net income was due mainly to higher net interest income, partially offset by higher non-interest expense and income tax expense. The net interest margin increased 33 basis points, from 1.86% for the prior year quarter to 2.19% for the current quarter. The increase was due mainly to growth in the higher yielding commercial loan portfolio.Interest and Dividend IncomeThe following table presents the components of interest and dividend income for the time periods presented, along with the change measured in dollars and percent. For the Three Months Ended December 31, Change Expressed in: 2025 2024 Dollars Percent (Dollars in thousands) INTEREST AND DIVIDEND INCOME: Loans receivable$ 89,792 $ 81,394 $ 8,398 10.3%MBS11,341 11,024 317 2.9Cash and cash equivalents2,773 1,871 902 48.2FHLB stock2,032 2,352 (320) (13.6)Investment securities51 981 (930) (94.8)Total interest and dividend income$ 105,989 $ 97,622 $ 8,367 8.6The increase in interest income on loans receivable was due primarily to the continued shift of loan balances from the one- to four-family loan portfolio to higher yielding commercial loans, along with growth in the commercial loan portfolio funded with cash flows from the deposit portfolio and partially from the investment securities portfolio. Interest income on cash and cash equivalents increased due largely to an increase in the average balance compared to the prior year quarter. The decrease in interest income on investment securities was due to a decrease in average balance, due primarily to securities that were called or matured between periods and were not replaced in their entirety.Interest ExpenseThe following table presents the components of interest expense for the time periods presented, along with the change measured in dollars and percent. For the Three Months Ended December 31, Change Expressed in: 2025 2024 Dollars Percent (Dollars in thousands) INTEREST EXPENSE: Deposits$37,500 $37,345 $155 0.4%Borrowings 17,172 18,047 (875) (4.8)Total interest expense$54,672 $55,392 $(720) (1.3)The decrease in interest expense on borrowings was due to a decrease in the average balance, which was partially offset by a higher weighted average interest rate. The decrease in the average balance of borrowings was due mainly to FHLB borrowings that matured between periods and were not renewed. Cash flows from the deposit portfolio were used, in part, to pay off maturing FHLB borrowings. The increase in the weighted average interest rate was due primarily to higher market interest rates on FHLB borrowings that matured and were renewed between periods, along with lower rate advances that were not renewed, which increased the overall rate of the remaining advances.Provision for Credit LossesThe Company recorded a provision for credit losses of $1.1 million during the current quarter compared to a provision for credit losses of $677 thousand for the prior year quarter. See additional details in the "Comparison of Operating Results for the Three Months Ended December 31, 2025 and September 30, 2025" above for additional information regarding the provision for credit losses during the current quarter.Non-Interest IncomeThe following table presents the components of non-interest income for the time periods presented, along with the change measured in dollars and percent. For the Three Months Ended December 31, Change Expressed in: 2025 2024 Dollars Percent (Dollars in thousands) NON-INTEREST INCOME: Deposit service fees$2,872 $2,707 $165 6.1%Insurance commissions 789 776 13 1.7 Other non-interest income 1,818 1,210 608 50.2 Total non-interest income$5,479 $4,693 $786 16.7 Other non-interest income was higher in the current quarter due mainly to an increase in bank-owned life insurance ("BOLI") income due to a change in rates and an increase in the crediting rate as a result of updates to certain policies that were executed in the second half of the prior fiscal year.Non-Interest ExpenseThe following table presents the components of non-interest expense for the time periods presented, along with the change measured in dollars and percent. For the Three Months Ended December 31, Change Expressed in: 2025 2024 Dollars Percent (Dollars in thousands) NON-INTEREST EXPENSE: Salaries and employee benefits$15,747 $14,232 $1,515 10.6%Information technology and related expense 5,134 4,550 584 12.8 Occupancy, net 3,450 3,333 117 3.5 Regulatory and outside services 1,789 1,113 676 60.7 Federal insurance premium 1,111 1,038 73 7.0 Advertising and promotional 1,056 822 234 28.5 Deposit and loan transaction costs 716 591 125 21.2 Office supplies and related expense 481 399 82 20.6 Other non-interest expense 992 1,070 (78) (7.3)Total non-interest expense$30,476 $27,148 $3,328 12.3 The increase in salaries and employee benefits was mainly attributable to an increase in full-time equivalent employees between periods, merit increases and salary adjustments to remain market competitive. The increase in information technology and related expense was due mainly to an increase in software licensing expense. The increase in regulatory and outside services was due primarily to an increase in new relationships with outside service providers and additional services provided by current providers, of which approximately $325 thousand is not expected to recur in future periods. The increase in advertising and promotional expense was due to timing of campaigns compared to the prior year quarter.The Company's efficiency ratio was 53.66% for the current quarter compared to 57.86% for the prior year quarter. The improvement in the efficiency ratio was due primarily to higher net interest income compared to the prior year quarter, partially offset by higher non-interest expense. The Company's operating expense ratio (annualized) for the current quarter was 1.24% compared to 1.14% for the prior year quarter. The operating expense ratio was higher in the current quarter due mainly to higher non-interest expense, partially offset by higher average assets compared to the prior year quarter.Income Tax ExpenseThe following table presents pretax income, income tax expense, and net income for the time periods presented, along with the change measured in dollars and percent and effective tax rate. For the Three Months Ended December 31, Change Expressed in: 2025 2024 Dollars Percent (Dollars in thousands) Income before income tax expense$25,214 $19,098 $6,116 32.0%Income tax expense 4,910 3,667 1,243 33.9 Net income$20,304 $15,431 $4,873 31.6 Effective Tax Rate 19.5% 19.2% Income tax expense was higher in the current quarter due mainly to higher pretax income.Financial Condition as of December 31, 2025The following table summarizes the Company's financial condition at the dates indicated. Annualized December 31, September 30, Percent 2025 2025 Change (Dollars and shares in thousands)Total assets$9,778,400 $9,778,701 —%AFS securities 829,704 867,216 (17.3)Loans receivable, net 8,176,736 8,111,961 3.2 Deposits 6,758,632 6,591,448 10.1 Borrowings 1,829,914 1,950,770 (24.8)Stockholders' equity 1,041,320 1,047,677 (2.4)Equity to total assets at end of period 10.6% 10.7% Average number of basic and diluted sharesoutstanding 128,953,166 129,874,022 (2.8)The loan portfolio increased $64.8 million during the current quarter as cash flows from the securities portfolio were used to fund loan growth. Commercial loans grew $162.6 million mainly in the commercial real estate portfolio, partially offset by a $98.6 million decrease in one- to four-family loans. The Bank expects to fund approximately $60.0 million of undisbursed amounts on existing commercial real estate and commercial construction loans and approximately $5.0 million of commercial real estate and commercial construction commitments during the March 31, 2026 quarter. The near-term outlook for commercial loan balances is growth of approximately 1% in the quarter ending March 31, 2026, with overall loan growth of approximately 18% for the fiscal year. It is expected that repayments from our one- to four-family loan portfolio will continue to be directed toward supporting commercial loan growth, aligning with our ongoing commitment to expand commercial banking services. Maintaining strong credit quality remains a top priority as we expand our commercial loan portfolio. The weighted average debt service coverage ratio ("DSCR") for commercial loan originations and new participations during the current quarter was 2.52x and the weighted average loan-to-value ("LTV") for commercial real estate and construction loans originated and new participations was 72%. The weighted average DSCR and LTV for our commercial real estate and construction loan portfolios was 1.73x and 63%, respectively, at December 31, 2025.Deposits increased $167.2 million during the current quarter, due mainly to the Bank's high yield savings account offering and retail checking accounts. Management has continued to focus on retaining and growing deposits through the Bank's high yield savings account product, which, as of December 31, 2025, had an annual percentage yield of 3.80% for accounts that meet the $10 thousand balance minimum. The annual percentage yield on the high yield savings account product was decreased to 3.70% mid-January 2026.Borrowings decreased $120.9 million due to the maturity of $100.0 million in borrowings during the current quarter that were not replaced, along with principal payments made on the Bank's amortizing FHLB advances. Cash flows from the deposit portfolio were used to pay down the borrowings portfolio during the current quarter.The following table summarizes loan originations and participations, deposit activity, and borrowing activity, along with certain related weighted average rates, during the periods indicated. The borrowings presented in the table have original contractual terms of one year or longer. For the Three Months Ended December 31, 2025 September 30, 2025 Amount Rate Amount Rate (Dollars in thousands)Loan originations and participations One- to four-family and consumer: Originated$95,788 6.18% $88,055 6.61% Commercial: Originated 281,081 6.48 251,192 6.58 Participations 83,520 6.37 11,952 6.85 $460,389 6.40 $351,199 6.60 Deposit activity Retail non-maturity deposits$162,250 $(19,124) Commercial non-maturity deposits 19,133 88,336 Retail/Commercial certificates of deposit (10,231) 85,893 Borrowing activity Maturities and repayments (171,168) 2.34 (121,168) 3.30 New borrowings 50,000 3.64 — — Stockholders' EquityStockholders' equity totaled $1.04 billion at December 31, 2025, a decrease of $6.4 million from September 30, 2025. Consistent with our goal to operate a sound and profitable financial organization that delivers long-term stockholder value, we actively seek to maintain a well-capitalized status for the Bank in accordance with regulatory standards. As of December 31, 2025, all of the Bank's capital ratios exceeded the well-capitalized requirements, and the Bank exceeded internal policy thresholds for sensitivity to changes in interest rates. As of December 31, 2025, the Bank's community bank leverage ratio was 9.5%.During the quarter ended December 31, 2025, the Company repurchased 2,376,633 shares of common stock at an average price of $6.86 per share, or $16.3 million in total. The Company currently has $54.8 million remaining authorized under its existing stock repurchase plan. The Company intends to continue to opportunistically repurchase stock from time to time based upon market conditions, available liquidity and other factors. Although our existing repurchase plan has no expiration date we are required to annually seek the Federal Reserve Bank of Kansas City's ("FRB") non-objection for the buyback amount. The FRB's current non-objection for the Company to repurchase up to $75 million of stock expires in February 2026. The Company is in the process of preparing the required documentation to seek the FRB's non-objection for the Company to continue to buy back its stock through the period when the current authorized amount is fully utilized. It is likely that the Company will then seek non-objection for additional stock repurchase authority.During the quarter ended December 31, 2025, the Company paid regular quarterly cash dividends totaling $11.0 million, or $0.085 per share. On December 17, 2025, the Company announced a special cash dividend of $0.04 per share, or approximately $5.1 million, which was paid on January 23, 2026 to stockholders of record on January 9, 2026. On January 27, 2026, the Company announced a regular quarterly cash dividend of $0.085 per share, or approximately $10.8 million, payable on February 20, 2026 to stockholders of record as of the close of business on February 6, 2026. The special cash dividend, in addition to the Company's history of regular quarterly dividends and opportunistic share repurchases demonstrates Capitol Federal Financial, Inc.'s multi-channel focus on delivering stockholder value through disciplined capital allocation which balances investments in the future of the Company while simultaneously pursuing incremental opportunities to return capital to stockholders. For the remainder of fiscal year 2026, it is the intention of the Company's Board of Directors to pay out a regular quarterly cash dividend of $0.085 per share, totaling $0.34 per share for the year.Dividend payments depend upon a number of factors, including the Company's financial condition and results of operations, regulatory capital compliance, regulatory limitations on the Bank's ability to make capital distributions to the Company, the Bank's current tax earnings and accumulated earnings and profits, and the amount of cash at the holding company level.The Board of Directors continue to evaluate various alternatives for capital allocation to enhance stockholder value, including the repurchase of stock, the payment of additional cash dividends, or retaining earnings to support future growth. Since our second-step conversion in December 2010, we have returned $2.03 billion in capital to stockholders through dividends totaling $1.58 billion and stock repurchases totaling $456.2 million. This is supported by our holistic approach to managing the balance sheet through continuous modeling of the Bank's performance, risk management, our commitment to credit quality and periodic stress testing.At December 31, 2025, Capitol Federal Financial, Inc., at the holding company level, had $14.9 million in cash on deposit at the Bank. During the three months ended December 31, 2025, the Bank distributed $25.0 million from the Bank to the Company. The Bank is expected to continue to be in a positive tax accumulated earnings and profit balance during fiscal year 2026, so it is anticipated that the Bank will be in a position to make earnings distributions to the Company during fiscal year 2026. Earnings distributions from the Bank to the Company will be limited to the extent necessary to prevent the Bank from re-entering a negative accumulated earnings and profit position and be required to pay the pre-1988 bad debt recapture tax on earnings moved from the Bank to the Company.The following table presents a reconciliation of total to net shares outstanding as of December 31, 2025.Total shares outstanding129,836,672Less unallocated Employee Stock Ownership Plan ("ESOP") shares and unvested restricted stock(2,591,657)Net shares outstanding127,245,015Capitol Federal Financial, Inc. is the holding company for the Bank. As of December 31, 2025, the Bank had 46 branch locations in Kansas and Missouri and is one of the largest residential lenders in the State of Kansas. News and other information about the Company can be found at the Bank's website, http://www.capfed.com.Forward-Looking StatementsExcept for the historical information contained in this press release, the matters discussed herein may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements about our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions. The words "may," "could," "should," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan," and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks and uncertainties, including: changes in policies or the application or interpretation of laws and regulations by regulatory agencies and tax authorities; other governmental initiatives affecting the financial services industry; changes in accounting principles, policies or guidelines; fluctuations in interest rates and the effects of inflation or a potential recession, whether caused by Federal Reserve action or otherwise; changes to existing trade policies that could affect economic activity or specific industry sectors; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor or depositor sentiment; demand for loans in the Company's market areas; the future earnings and capital levels of the Bank and the impact of potential pre-1988 bad debt recapture, which could affect the ability of the Company to pay dividends in accordance with its dividend policies; competition; and other risks detailed from time to time in documents filed or furnished by the Company with the Securities and Exchange Commission. Actual results may differ materially from those currently expected. These forward-looking statements represent the Company's judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update these forward-looking statements.SUPPLEMENTAL FINANCIAL INFORMATIONCAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARYCONSOLIDATED BALANCE SHEETS (Unaudited)(Dollars in thousands, except per share amounts) December 31, September 30, 2025 2025 ASSETS: Cash and cash equivalents (includes interest-earning deposits of $210,223 and $229,566)$232,634 $252,443 Available-for-sale ("AFS"), at estimated fair value (amortized cost of $809,099 and $847,369) 829,704 867,216 Loans receivable, net (allowance for credit losses ("ACL") of $24,572 and $24,039) 8,176,736 8,111,961 FHLB stock, at cost 85,060 90,662 Premises and equipment, net 88,753 89,314 Income taxes receivable, net — 220 Deferred federal income tax assets, net 22,744 23,826 Other assets 342,769 343,059 TOTAL ASSETS$9,778,400 $9,778,701 LIABILITIES: Deposits$6,758,632 $6,591,448 Borrowings 1,829,914 1,950,770 Advances by borrowers 28,523 65,416 Income taxes payable, net 237 — Deferred state income tax liabilities, net 2,228 2,056 Other liabilities 117,546 121,334 Total liabilities 8,737,080 8,731,024 STOCKHOLDERS' EQUITY: Preferred stock, $.01 par value; 100,000,000 shares authorized, no shares issued or outstanding — — Common stock, $.01 par value; 1,400,000,000 shares authorized, 129,836,672 and 132,204,305 shares issued and outstanding as of December 31, 2025 and September 30, 2025, respectively 1,298 1,322 Additional paid-in capital 1,126,227 1,142,711 Unearned compensation, ESOP (24,367) (24,780)Accumulated deficit (78,044) (87,331)Accumulated other comprehensive income ("AOCI"), net of tax 16,206 15,755 Total stockholders' equity 1,041,320 1,047,677 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$9,778,400 $9,778,701See accompanying notes to consolidated financial statements.CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF INCOME (Unaudited)(Dollars in thousands) For the Three Months Ended December 31, September 30, December 31, 2025 2025 2024INTEREST AND DIVIDEND INCOME: Loans receivable$89,792 $87,343 $81,394MBS 11,341 11,808 11,024Cash and cash equivalents 2,773 2,148 1,871FHLB stock 2,032 2,163 2,352Investment securities 51 582 981Total interest and dividend income 105,989 104,044 97,622 INTEREST EXPENSE: Deposits 37,500 37,204 37,345Borrowings 17,172 18,057 18,047Total interest expense 54,672 55,261 55,392 NET INTEREST INCOME 51,317 48,783 42,230 PROVISION FOR CREDIT LOSSES 1,106 519 677NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 50,211 48,264 41,553 NON-INTEREST INCOME: Deposit service fees 2,872 2,873 2,707Insurance commissions 789 1,018 776Other non-interest income 1,818 1,900 1,210Total non-interest income 5,479 5,791 4,693 NON-INTEREST EXPENSE: Salaries and employee benefits 15,747 15,936 14,232Information technology and related expense 5,134 5,053 4,550Occupancy, net 3,450 3,292 3,333Regulatory and outside services 1,789 1,590 1,113Federal insurance premium 1,111 1,114 1,038Advertising and promotional 1,056 1,915 822Deposit and loan transaction costs 716 658 591Office supplies and related expense 481 490 399Other non-interest expense 992 970 1,070Total non-interest expense 30,476 31,018 27,148INCOME BEFORE INCOME TAX EXPENSE 25,214 23,037 19,098INCOME TAX EXPENSE 4,910 4,224 3,667NET INCOME$20,304 $18,813 $15,431Average Balance SheetsThe following tables present the average balances of our assets, liabilities, and stockholders' equity, and the related annualized weighted average yields and rates on our interest-earning assets and interest-bearing liabilities for the periods indicated, as well as selected performance ratios and other information for the periods shown. Weighted average yields are derived by dividing annualized income by the average balance of the related assets, and weighted average rates are derived by dividing annualized expense by the average balance of the related liabilities, for the periods shown. Average outstanding balances are derived from average daily balances. The weighted average yields and rates include amortization of fees, costs, premiums and discounts, which are considered adjustments to yields/rates. Weighted average yields on tax-exempt securities are not calculated on a fully taxable equivalent basis. For the Three Months Ended December 31, 2025 September 30, 2025 December 31, 2024 Average Interest Average Interest Average Interest Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Amount Paid Rate Amount Paid Rate Amount Paid Rate (Dollars in thousands)Assets: Interest-earning assets: One- to four-family loans: Originated$3,748,022 $36,490 3.89% $3,794,781 $36,521 3.85% $3,925,427 $36,375 3.71%Purchased 2,113,076 17,469 3.31 2,167,994 17,668 3.26 2,338,395 18,984 3.25 Total one- to four-family loans 5,861,098 53,959 3.68 5,962,775 54,189 3.63 6,263,822 55,359 3.54 Commercial loans: Commercial real estate 1,776,342 26,456 5.83 1,670,205 24,317 5.70 1,303,095 18,755 5.63 Commercial and industrial 215,211 3,868 7.03 196,992 3,515 6.98 132,026 2,217 6.57 Commercial construction 198,300 3,316 6.54 182,855 3,050 6.53 171,627 2,784 6.35 Total commercial loans 2,189,853 33,640 6.01 2,050,052 30,882 5.89 1,606,748 23,756 5.79 Consumer loans 114,588 2,193 7.59 113,979 2,272 7.91 110,661 2,279 8.19 Total loans receivable(1) 8,165,539 89,792 4.36 8,126,806 87,343 4.27 7,981,231 81,394 4.05 MBS(2) 826,320 11,341 5.49 860,833 11,808 5.49 781,252 11,024 5.64 Investment securities(2)(3) 4,000 51 5.13 45,467 582 5.13 72,561 981 5.41 FHLB stock 88,223 2,032 9.14 94,288 2,163 9.10 99,151 2,352 9.41 Cash and cash equivalents 274,154 2,773 3.96 192,755 2,148 4.36 154,752 1,871 4.73 Total interest-earning assets 9,358,236 105,989 4.49 9,320,149 104,044 4.43 9,088,947 97,622 4.27 Other non-interest-earning assets 468,876 468,378 463,322 Total assets$9,827,112 $9,788,527 $9,552,269 Liabilities and stockholders' equity: Interest-bearing liabilities: Full story available on Benzinga.com
John Marshall Bancorp, Inc. (NASDAQ:JMSB) (the "Company"), parent company of John Marshall Bank (the "Bank"), reported net income of $5.9 million for the quarter ended December 31, 2025 compared to $4.8 million for the quarter ended December 31, 2024, an increase of $1.1 million or 23.9%. Diluted earnings per common share were $0.42 for the quarter ended December 31, 2025 compared to $0.33 for the quarter ended December 31, 2024, an increase of 27.3%. Annualized return on average assets was 1.01% for the quarter ended December 31, 2025 compared to 0.85% for the quarter ended December 31, 2024, an increase of 18.8%.Selected HighlightsAccelerating Earnings Momentum – Net income of $5.9 million for the quarter ended December 31, 2025 represented a 9.5% increase over the $5.4 million net income reported for the quarter ended September 30, 2025 or an annualized quarter-over-quarter increase of 37.5%. The quarter ended December 31, 2025 marked the sixth consecutive quarter of quarterly net income growth. Diluted earnings per common share were $0.42 for the quarter ended December 31, 2025 and represented a 10.5% increase over the $0.38 diluted earnings per common share reported for the quarter ended September 30, 2025 or an annualized quarter-over-quarter increase of 41.8%.Strong Loan Growth and Exceptional Loan Demand – The Company's loan portfolio, net of unearned income, grew $37.3 million or 7.6% annualized during the fourth quarter 2025. Loans, net of unearned income, increased $103.2 million or 5.5% from December 31, 2024 to December 31, 2025. The Company's loan pipeline remained strong with $139.7 million in new commitments recorded during the three months ended December 31, 2025, a 46.7% improvement on the $95.2 million of new commitments recorded during the three months ended September 30, 2025. The most recent quarter's new commitment production represented the highest quarterly level since the fourth quarter of 2022. New commitments represent loans closed, but not necessarily fully funded as of the end of the respective reporting period.Higher Net Interest Income – For the three months ended December 31, 2025, the Company reported net interest income of $15.9 million, a $1.9 million or 13.3% increase over the prior year quarter.Continued Net Interest Margin Growth – Net interest margin expanded for the seventh consecutive quarter to 2.73%, a 21 basis point improvement from the 2.52% reported for the fourth quarter of 2024. The Company continued to decrease its funding costs as the Federal Reserve lowered the effective federal funds rate over the past year.Positive Operating Leverage – Revenues (net interest income plus non-interest income) grew 17.5% for the twelve months ended December 31, 2025 relative to the twelve months ended December 31, 2024. Over the same period, overhead increased 5.5%. Non-interest expense was $8.0 million for the quarter ended December 31, 2025, a decrease of $1.1 million or 11.8% when compared to the quarter ended September 30, 2025.Strong Asset Quality – As of December 31, 2025 the Company had no non-accrual loans and no other real estate owned assets.Growing Book Value per Share and Dividends – Book value per share increased from $17.28 as of December 31, 2024 to $18.70 as of December 31, 2025, an 8.2% increase. Including the $0.30 per share annual cash dividend declared on April 22, 2025 and paid on July 7, 2025, the annual book value return was 10.0%. On January 27, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.09 per share on the Company's common stock. The dividend is payable on March 4, 2026 to shareholders of record at the close of business on February 11, 2026. The annualized quarterly cash dividend represents a 20% increase over the 2025 annual cash dividend.Robust Capitalization – Each of the Bank's regulatory capital ratios remained well in excess of the regulatory well-capitalized thresholds as of December 31, 2025. During the twelve months ended December 31, 2025, the Company repurchased 135,640 shares of its common stock at a weighted average price of $17.80. The aggregate repurchase activity was accretive to the Company's book value per share.Chris Bergstrom, President and Chief Executive Officer, commented, "We are pleased to report a 24% increase in net income for 2025. We grew our loan portfolio over $103 million in 2025, with 35% of that growth coming in the 4th quarter. The nearly $140 million in loan commitments booked during the quarter should provide a nice tailwind headed into 2026. Loan growth and the re-pricing of our funding and bond portfolios drove the seventh consecutive quarter of net interest margin expansion and 17.5% revenue growth. We believe that additional Federal Open Market Committee rate reductions and a continuing normalization of the yield curve could enhance our profitability. We continue to invest in technology and personnel to cultivate new relationships and deepen existing ones. Despite increasing our headcount by 5%, overhead grew only 5.5% during 2025 and resulted in significant operating leverage. As we look ahead to 2026, we remain focused on delivering tailored banking services and exceptional client experiences. The strength of our balance sheet and consistent performance enabled us to implement a quarterly cash dividend. We believe our fortress balance sheet allows us to focus on continued growth and drive increased returns and shareholder value."Balance Sheet, Liquidity and Credit QualityTotal assets were $2.33 billion at December 31, 2025, $2.32 billion at September 30, 2025, and $2.23 billion at December 31, 2024. Total assets increased $8.0 million or 1.4% annualized since September 30, 2025 and $98.0 million or 4.4% from December 31, 2024.Total loans, net of unearned income, increased $37.3 million or 7.6% annualized to $1.98 billion at December 31, 2025 compared to $1.94 billion at September 30, 2025 and increased $103.2 million or 5.5% from $1.87 billion at December 31, 2024. The increase in loans from September 30, 2025, was primarily attributable to growth in construction & development loans and residential mortgage loans, partially offset by a decline in investor real estate loans. All other portfolios remained relatively unchanged during the most recent quarter. Refer to the Loan, Deposit and Borrowing Detail table for further information.The carrying value of the Company's fixed income securities portfolio was $212.3 million at December 31, 2025, $205.7 million at September 30, 2025, and $222.3 million at December 31, 2024. The increase in carrying value of the Company's fixed income securities portfolio since September 30, 2025 was primarily attributable to purchases of six fixed income securities, designated as available-for-sale, with the total carrying amount of $16.4 million. As of December 31, 2025, 95.3% of our bond portfolio carried the implied guarantee of the United States government or one of its agencies. At December 31, 2025, 67.5% of the fixed income portfolio was invested in amortizing bonds, which provides the Company with a source of steady cash flow. At December 31, 2025, the fixed income portfolio had an estimated weighted average life of 3.9 years. The available-for-sale portfolio comprised approximately 60% of the fixed income securities portfolio and had a weighted average life of 3.1 years at December 31, 2025. The held-to-maturity portfolio comprised approximately 40% of the fixed income securities portfolio and had a weighted average life of 5.2 years at December 31, 2025.The Company's balance sheet remains highly liquid. The Company's liquidity position, defined as the sum of cash, unencumbered securities and available secured borrowing capacity, totaled $827.0 million as of December 31, 2025 compared to $824.3 million as of September 30, 2025 and represented 35.6% and 35.5% of total assets, respectively. In addition to available secured borrowing capacity, the Bank had available federal funds lines of $110.0 million at December 31, 2025.Total deposits were relatively unchanged at $1.97 billion at December 31, 2025 compared to September 30, 2025, and increased $79.9 million or 4.2% from $1.89 billion at December 31, 2024. During the most recent quarter, total deposits increased $3.5 million or 0.2% when compared to September 30, 2025, primarily due to a 3.6% or $13.4 million increase in interest-bearing demand deposits, a 1.3% or $4.7 million increase in money market accounts, and a 1.0% or $4.4 million increase in core time deposits. These increases were partially offset by a 3.2% or $14.2 million decrease in non-interest bearing demand deposits. Detail on the deposit activity can be seen in the Loan, Deposit and Borrowing Detail table. As of December 31, 2025, the Company had $691.5 million of deposits that were not insured or not collateralized compared to $682.8 million and $659.2 million at September 30, 2025 and December 31, 2024, respectively.Federal Home Loan Bank ("FHLB") advances remained unchanged at $56.0 million as of December 31, 2025 compared to September 30, 2025 and December 31, 2024. The three FHLB advances have a weighted average fixed interest rate of 3.99%. In addition to outstanding FHLB advances, total borrowings as of December 31, 2025 included subordinated debt totaling $24.9 million.Shareholders' equity increased $19.0 million or 7.7% to $265.6 million at December 31, 2025 compared to $246.6 million at December 31, 2024. Book value per share was $18.70 as of December 31, 2025 compared to $17.28 as of December 31, 2024, an increase of 8.2%. The year-over-year change in book value per share was primarily due to the Company's earnings over the previous twelve months and a decrease in accumulated other comprehensive loss, resulting from an increase in the market value of our available-for-sale investment portfolio. This increase was partially offset by cash dividend paid and increased share count from shareholder option exercises and restricted share award issuances, partially offset by the Company's share repurchases during the period.The Bank's capital ratios remained well above regulatory thresholds for well-capitalized banks. As of December 31, 2025, the Bank's total risk-based capital ratio was 16.3%, compared to 16.6% at September 30, 2025, and 16.2% at December 31, 2024.During the quarter ended December 31, 2025, the Company charged-off a commercial business U.S. Small Business Administration ("SBA") 7(a) loan in the total amount of $361 thousand. The charged-off amount represented the unguaranteed portion of the loan. The Company has submitted a reimbursement claim to the SBA for the guaranteed portion of the loan in the amount of $1.1 million and expects to be paid in full during the first quarter of 2026. As of December 31, 2025, the Company had no non-accrual loans and no other real estate owned assets.At December 31, 2025, the allowance for loan credit losses was $19.8 million or 1.0% of outstanding loans, net of unearned income, compared to $19.7 million or 1.02% of outstanding loans, net of unearned income, at September 30, 2025. The increase in the allowance for loan credit losses during the most recent quarter is predominantly attributable to the growth of the loan portfolio along with the impact of management's assessment of qualitative factors, mainly related to the evaluation of the existing local economic conditions, as well as considerations of the concentrations of the Company's loan segments. These factors contributing to an increase in allowance for credit losses were partially offset by the previously mentioned charge-off of the commercial business SBA 7(a) loan.At December 31, 2025, the allowance for credit losses on unfunded loan commitments was $1.3 million compared to $1.1 million at September 30, 2025, due to a higher amount of available loan commitments.The Company did not have an allowance for credit losses on held-to-maturity securities as of December 31, 2025 or September 30, 2025. As of December 31, 2025, 93.2% of our held-to-maturity portfolio carried the implied guarantee of the United States government or one of its agencies.The Company believes its owner occupied and non-owner occupied commercial real estate portfolios continue to be of sound credit quality. The following table demonstrates their strong debt-service-coverage and loan-to-value ratios as of December 31, 2025. Commercial Real Estate Owner OccupiedNon-owner OccupiedAsset ClassWeighted Average Loan-to-Value(1) Weighted Average Debt Service Coverage Ratio(2) Number of Total Loans Principal Balance(3)(Dollars in thousands)Weighted Average Loan-to-Value(1) Weighted Average Debt Service Coverage Ratio(2) Number of Total Loans Principal Balance(3)(Dollars in thousands)Warehouse & Industrial49.3%3.2x55$68,62947.3%2.3x43$100,089Office57.6%3.7x136 87,04544.3%2.0x57 105,309Retail58.9%3.1x43 77,43949.9%1.8x144 447,696Church25.0%2.5x16 24,98871.2%1.0x2 5,625Hotel/Motel- - - - - - - -50.6%1.5x12 82,539Other(4)36.1%3.4x39 65,38544.8%2.2x7 15,362Total 289$323,486 265$756,620(1)Loan-to-value is determined at origination date and is divided by principal balance as of December 31, 2025.(2)The debt service coverage ratio ("DSCR") is calculated from the primary source of repayment for the loan. Owner occupied DSCR's are derived from cash flows from the owner occupant's business, property and their guarantors, while non-owner occupied DSCR's are derived from the net operating income of the property.(3)Principal balance excludes deferred fees or costs.(4)Other asset class is primarily comprised of schools, daycares and country clubs.The following charts provide geographic detail and stated maturity summaries for the Company's non-owner occupied office portfolio as of December 31, 2025: Non-owner occupied office: GeographyGeographyCommitment(in 000s) PercentageVirginia$70,639 64.4%Maryland24,217 22.1%DC14,315 13.1%Other427 0.4%Total$109,598 100.0% Non-owner occupied office: MaturityMaturityYearCommitment(in 000s) Percentage20265,766 5.3%20276,553 6.0%202814,215 13.0%202926,488 24.1%2030+56,576 51.6%Total$109,598 100.0%Income Statement ReviewQuarterly ResultsThe Company reported net income of $5.9 million for the fourth quarter of 2025, an increase of $1.1 million or 23.9% when compared to $4.8 million for the fourth quarter of 2024.For the three months ended December 31, 2025, net interest income increased $1.8 million or 13.3% to $15.9 million compared to $14.1 million for the three months ended December 31, 2024. During the same period, interest income grew $1.2 million or 4.2%, driven by higher interest income on loans, while interest expense declined by $0.7 million or 5.1%, predominantly due to lower interest expense on time deposits, interest-bearing checking accounts and money market accounts.The annualized net interest margin for the fourth quarter of 2025 was 2.73% as compared to 2.52% for the same period in 2024. The increase in net interest margin was primarily due to an increase in average balances of the loan portfolio in combination with the lower rates on interest-bearing deposits.The cost of interest-bearing liabilities was 3.28% for the fourth quarter of 2025 compared to 3.62% for the same quarter in the prior year driven by the 35 basis points decline in rates on interest-bearing deposits. Rates declined across all deposit categories, most notably in interest-bearing demand deposits, time deposits, and money market accounts, which declined by 38 basis points, 37 basis points, and 36 basis points, respectively. The yield on interest-earning assets was 4.99% for the fourth quarter of 2025 compared to 5.01% for the same period in 2024 primarily due to a three basis points decrease in loan yield coupled with an 81 basis points decrease in yield on interest-bearing deposits in other banks. These decreases were partially offset by a 12 basis points increase in securities yield. Average loans increased by $107.9 million between the three months ended December 31, 2025 and the three months ended December 31, 2024, which was primarily attributable to origination volume in the construction & development and residential mortgage loan portfolios subsequent to December 31, 2024.Management has been repricing deposits concurrently with each of the three federal funds rate cuts totaling 75 basis points since September 2025. Management believes that the full benefit of these rate reductions has yet to be realized and expects that the repricing of time deposits should continue to reduce the cost of funds and have a positive impact on the Company's net interest margin prospectively.The Company recorded a $624 thousand provision for credit losses for the fourth quarter of 2025 compared to $298 thousand for the fourth quarter of 2024. Provision for credit losses on funded loans totaled $451 thousand, while provision for credit losses on unfunded loan commitments totaled $173 thousand during the three months ended December 31, 2025. The provision for credit losses on funded loans during the most recent quarter reflected the impact of the charge-off of the unguaranteed portion of a commercial business SBA 7(a) loan, as well as the growth of the Company's loan portfolio quarter-over-quarter coupled with the impact of management's assessment of the qualitative adjustments related to existing local economic conditions and loan segments concentrations.Non-interest income increased $128 thousand or 45.6% during the fourth quarter of 2025 compared to the fourth quarter of 2024. This increase was primarily attributable to a $108 thousand increase in gains recorded on sales of the guaranteed portions of the SBA 7(a) loans in combination with the $100 thousand increase in mark-to-market adjustments on investments related to the Company's nonqualified deferred compensation ("NQDC") plan.Non-interest expense increased $26 thousand or 0.3% during the fourth quarter of 2025 compared to the fourth quarter of 2024 primarily resulting from an increase in salaries and employee benefits and higher professional fees. These increases were partially offset by lower occupancy expense. Salaries and employee benefits increased by $100 thousand, which was mainly related to increases in headcount within the Bank during the current fiscal year. Professional fees increased by $89 thousand due to higher consulting fees. The $91 thousand decrease in occupancy expense was due to a lower office rent resulting from the renegotiation of certain leases during the current year.For the three months ended December 31, 2025, annualized non-interest expense to average assets was 1.36% compared to 1.41% for the three months ended December 31, 2024. This decrease was primarily due to the growth in average assets and stable non-interest expense, when comparing the two periods. For the three months ended December 31, 2025, the efficiency ratio declined to 48.8% compared to 55.4% for the three months ended December 31, 2024. The improvement in the efficiency ratio was due to a 14.0% growth in total revenue, which outpaced 0.3% increase in non-interest expense over the period.Return on average assets for the quarter ended December 31, 2025 was 1.01% and return on average equity was 8.89% compared to 0.85% and 7.71%, respectively, for the fourth quarter of 2024.Year-End ResultsThe Company reported net income of $21.2 million for the twelve months ended December 31, 2025, an increase of $4.1 million or 24.0% when compared to the same period in 2024.Net interest income for the twelve months ended December 31, 2025 increased $9.5 million or 18.6% compared to the same period of 2024. The net interest margin for the twelve months ended December 31, 2025 was 2.68% as compared to 2.28% for the same period in the prior year. These increases were driven primarily by the decrease in rates of interest-bearing deposits coupled with increases in average balances and yields of the loan portfolio.The cost of interest-bearing liabilities was 3.37% for the twelve months ended December 31, 2025 compared to 3.78% for the twelve months ended December 31, 2024. The decrease in the cost of interest-bearing liabilities was primarily due to a 40 basis points decrease in the cost of interest-bearing deposits as a result of the repricing of the Company's time deposits coupled with a decrease in rates offered on money market, interest-bearing demand deposits and savings deposit accounts since the fourth quarter of 2024. The yield on interest-earning assets was 5.01% for the twelve months ended December 31, 2025 compared to 4.91% for the same period in 2024. The increase in yield on interest-earning assets was primarily due to a 13 basis point increase in loan yield and an eight basis point increase in securities yield, as a result of higher prevailing interest rates as assets repriced subsequent to the fourth quarter of 2024. Average loans increased $73.1 million between the twelve months ended December 31, 2025 and 2024, which was primarily attributable to origination volume in the construction & development and residential mortgage loan portfolios subsequent to December 31, 2024. These positive contributing factors to the year-over-year increase in the net interest margin were partially offset by lower yields and average balances of interest-bearing deposits in other banks.The Company recorded a $1.7 million provision for credit losses for the twelve months ended December 31, 2025 compared to a $0.4 million recovery of provision for credit losses for the twelve months ended December 31, 2024. The provision for credit losses during the twelve months ended December 31, 2025 was primarily a result of growth of the loan portfolio and the related changes in the portfolio mix, coupled with the impact of the charge-off of the unguaranteed portion of a commercial business SBA 7(a) loan and management's assessment of the qualitative adjustments reflecting changing local economic conditions monitored throughout the year.Non-interest income decreased $197 thousand or 8.7% during the twelve months ended December 31, 2025 compared to the same period of 2024. The decrease was primarily driven by a $198 thousand decrease in the recorded gain on sale of the government guaranteed portion of the SBA 7(a) loans due to lower sale activity along with the $88 thousand decrease in insurance commissions. These decreases were partially offset by a $166 thousand increase to the mark-to-market adjustments on the Company's NQDC plan and a $37 thousand increase in swap fee income.Non-interest expense increased $1.8 million or 5.5% during the twelve months ended December 31, 2025 compared to the same period in 2024 primarily resulting from increases in salaries and employee benefits and other expense, predominantly due to higher data processing service fees and professional fees. The $1.5 million or 7.7% increase in salaries and employee benefits was mainly associated with the higher headcount within the Company and an increase in incentive compensation tied to the Company's operating performance. The investments made to expand the headcount during the current year are expected to contribute to the future growth of the Company and subsequent increases in revenues. Increase in incentive compensation was commensurate with the 24% year-over-year increase in net income and the fact that the Company's operating performance for 2025 exceeded the budget and strategic plan. The $168 thousand or 7.6% increase in data processing service fees was primarily due to contractual increases and volume-based activity. Professional fees increased $146 thousand or 14.6% for the period, driven primarily by higher consulting fees. These increases were partially offset by a decrease in the Company's occupancy expense, which declined by $216 thousand or 12.3%, due to a decrease in office rent as a result of the renegotiation of more favorable terms on certain leases.For the twelve months ended December 31, 2025, non-interest expense to average assets was 1.48% compared to 1.41% for the twelve months ended December 31, 2024. The increase was primarily due to higher non-interest expenses, as outlined above, when comparing the two periods.For the twelve months ended December 31, 2025, the efficiency ratio was 53.6% compared to 59.7% for the twelve months ended December 31, 2024. The improvement in the efficiency ratio was due to a 17.5% growth in total revenue, which outpaced a 5.5% increase in non-interest expense over the period.Return on average assets for the twelve months ended December 31, 2025 was 0.93% and return on average equity was 8.26% compared to 0.76% and 7.16%, respectively, for the twelve months ended December 31, 2024.About John Marshall Bancorp, Inc.John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, and Tysons, Virginia, as well as Rockville, Maryland, and Washington, D.C. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and professionals in the Washington, D.C. Metropolitan area. The Bank offers a comprehensive line of sophisticated banking products and services that rival those of the largest banks along with experienced staff to help achieve customers' financial goals. Dedicated relationship managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including charter and private schools, government contractors, health services, nonprofits and associations, professional services, property management companies and title companies. Learn more at www.johnmarshallbank.com.Cautionary Note Regarding Forward-Looking StatementsIn addition to historical information, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," "will," "should," "may," "view," "opportunity," "potential," or similar expressions or expressions of confidence. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and the Bank include, but are not limited to, the following: the concentration of our business in the Washington, D.C. metropolitan area and the effect of changes in the economic, political and environmental conditions on this market, including potential reductions in spending by the U.S. Government and related reductions in the federal workforce; adequacy of our allowance for loan credit losses, allowance for unfunded commitments credit losses, and allowance for credit losses associated with our held-to-maturity and available-for-sale securities portfolios; deterioration of our asset quality; future performance of our loan portfolio with respect to recently originated loans; the level of prepayments on loans and mortgage-backed securities; liquidity, interest rate and operational risks associated with our business; changes in our financial condition or results of operations that reduce capital; our ability to maintain existing deposit relationships or attract new deposit relationships; changes in consumer spending, borrowing and savings habits; inflation and changes in interest rates that may reduce our margins or reduce the fair value of financial instruments; changes in the monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; additional risks related to new lines of business, products, product enhancements or services; increased competition with other financial institutions and fintech companies; adverse changes in the securities markets; changes in the financial condition or future prospects of issuers of securities that we own; our ability to maintain an effective risk management framework; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory structure and in regulatory fees and capital requirements; compliance with legislative or regulatory requirements; results of examination of us by our regulators, including the possibility that our regulators may require us to increase our allowance for credit losses or to write-down assets or take similar actions; potential claims, damages, and fines related to litigation or government actions; the effectiveness of our internal controls over financial reporting and our ability to remediate any future material weakness in our internal controls over financial reporting; geopolitical conditions, including trade restrictions and tariffs, and acts or threats of terrorism and/or military conflicts, or actions taken by the U.S. or other governments in response to trade restrictions and tariffs, and acts or threats of terrorism and/or military conflicts, negatively impacting business and economic conditions in the U.S. and abroad; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses thereto; technological risks and developments, and cyber threats, attacks, or events; changes in accounting policies and practices; our ability to successfully capitalize on growth opportunities; our ability to retain key employees; deteriorating economic conditions, either nationally or in our market area, including higher unemployment and lower real estate values; implications of our status as a smaller reporting company and as an emerging growth company; and other factors discussed in the Company's reports (such as our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results. John Marshall Bancorp, Inc. Financial Highlights (Unaudited)(Dollar amounts in thousands, except per share data) At or For the Three Months Ended At or For the Twelve Months Ended December 31 December 31 2025 2024 2025 2024 Selected Balance Sheet Data Cash and cash equivalents $129,974 $122,469 $129,974 $122,469 Total investment securities 222,760 232,732 222,760 232,732 Loans, net of unearned income 1,975,360 1,872,173 1,975,360 1,872,173 Allowance for loan credit losses 19,805 18,715 19,805 18,715 Total assets 2,332,550 2,234,947 2,332,550 2,234,947 Non-interest bearing demand deposits 432,733 433,288 432,733 433,288 Interest-bearing deposits 1,539,552 1,459,127 1,539,552 1,459,127 Total deposits 1,972,285 1,892,415 1,972,285 1,892,415 Federal Home Loan Bank advances 56,000 56,000 56,000 56,000 Shareholders' equity 265,638 246,614 265,638 246,614 Summary Results of Operations Interest income $29,164 $27,995 $113,257 $110,133 Interest expense 13,224 13,929 52,693 59,086 Net interest income 15,940 14,066 60,564 51,047 Provision for (recovery of) credit losses 624 298 1,688 (370) Net interest income after provision for (recovery of) credit losses 15,316 13,768 58,876 51,417 Non-interest income 409 281 2,074 2,271 Non-interest expense 7,971 7,945 33,567 31,809 Income before income taxes 7,754 6,104 27,383 21,879 Net income 5,916 4,776 21,233 17,121 Per Share Data and Shares Outstanding Earnings per common share - basic $0.42 $0.34 $1.49 $1.20 Earnings per common share - diluted $0.42 $0.33 $1.49 $1.20 Book value per share $18.70 $17.28 $18.70 $17.28 Weighted average common shares (basic) 14,142,249 14,196,309 14,189,520 14,172,166 Weighted average common shares (diluted) 14,142,249 14,224,287 14,194,601 14,206,109 Common shares outstanding at end of period 14,204,877 14,269,469 14,204,877 14,269,469 Performance Ratios Return on average assets (annualized) 1.01% 0.85% 0.93% 0.76%Return on average equity (annualized) 8.89% 7.71% 8.26% 7.16%Net interest margin (annualized) 2.73% 2.52% 2.68% 2.28%Non-interest income as a percentage of average assets (annualized) 0.07% 0.05% 0.09% 0.10%Non-interest expense to average assets (annualized) 1.36% 1.41% 1.48% 1.41%Efficiency ratio 48.8% 55.4% 53.6% 59.7% Asset Quality Non-performing assets to total assets 0.05% 0.45% 0.05% 0.45%Non-performing loans to total loans 0.05% 0.53% 0.05% 0.53%Allowance for loan credit losses to non-performing assets 18.3x 1.9x 18.3x 1.9xAllowance for loan credit losses to total loans 1.00% 1.00% 1.00% 1.00%Net charge-offs to average loans (annualized) 0.07% - -% 0.02% - -% Loans 30-89 days past due and accruing interest $- - $- - $- - $- - 90 days past due and still accruing interest 1,084 9,978 1,084 9,978 Non-accrual loans - - - - - - - - Other real estate owned - - - - - - - - Non-performing assets (1) 1,084 9,978 1,084 9,978 Capital Ratios (Bank Level) Equity / assets 12.2% 11.9% 12.2% 11.9%Total risk-based capital ratio 16.3% 16.2% 16.3% 16.2%Tier 1 risk-based capital ratio 15.2% 15.2% 15.2% 15.2%Common equity tier 1 ratio 15.2% 15.2% 15.2% 15.2%Leverage ratio 12.5% 12.4% 12.5% 12.4% Other Information Number of full time equivalent employees 139 132 139 132 # Full service branch offices 8 8 8 8 (1)Non-performing assets consist of non-accrual loans, loans 90 days or more past due and still accruing interest and other real estate owned. John Marshall Bancorp, Inc. Consolidated Balance Sheets(Dollar amounts in thousands, except per share data) % Change December 31, September 30, December 31, Last Three Year Over 2025 2025 2024 Months YearAssets (Unaudited) (Unaudited) * Cash and due from banks $6,492 $8,867 $5,945 (26.8)% 9.2 %Interest-bearing deposits in banks 123,482 154,778 116,524 (20.2)% 6.0 %Securities available-for-sale, at fair value 123,852 116,378 130,257 6.4 % (4.9)%Securities held-to-maturity at amortized cost, fair value of $77,575, $77,647, and $76,270 at 12/31/2025, 9/30/2025, and 12/31/2024, respectively 88,421 89,291 92,009 (1.0)% (3.9)%Restricted securities, at cost 7,644 7,641 7,634 - - % 0.1 %Equity securities, at fair value 2,843 2,809 2,832 1.2 % 0.4 %Loans, net of unearned income 1,975,360 1,938,108 1,872,173 1.9 % 5.5 %Allowance for loan credit losses (19,805) (19,714) (18,715) 0.5 % 5.8 %Net loans 1,955,555 1,918,394 1,853,458 1.9 % 5.5 %Bank premises and equipment, net 1,315 1,424 1,318 (7.7)% (0.2)%Accrued interest receivable 5,890 5,819 5,996 1.2 % (1.8)%Right of use assets 4,551 4,583 5,013 (0.7)% (9.2)%Other assets 12,505 14,560 13,961 (14.1)% (10.4)%Total assets $2,332,550 $2,324,544 $2,234,947 0.3 % 4.4 % Liabilities and Shareholders' Equity Liabilities Deposits: Non-interest bearing demand deposits $432,733 $446,925 $433,288 (3.2)% (0.1)%Interest-bearing demand deposits 745,323 727,295 705,097 2.5 % 5.7 %Savings deposits 34,683 39,427 44,367 (12.0)% (21.8)%Time deposits 759,546 755,181 709,663 0.6 % 7.0 %Total deposits 1,972,285 1,968,828 1,892,415 0.2 % 4.2 %Federal Home Loan Bank advances 56,000 56,000 56,000 - - % - - %Subordinated debt, net 24,875 24,854 24,791 0.1 % 0.3 %Accrued interest payable 2,124 1,869 2,394 13.6 % (11.3)%Lease liabilities 4,819 4,941 5,369 (2.5)% (10.2)%Other liabilities 6,809 8,360 7,364 (18.6)% (7.5)%Total liabilities 2,066,912 2,064,852 1,988,333 0.1 % 4.0 % Shareholders' Equity Preferred stock, par value $0.01 per share; authorized 1,000,000 shares; none issued - - - - - - N/M N/M Common stock, nonvoting, par value $0.01 per share; authorized 1,000,000 shares; none issued - - - - - - N/M N/M Common stock, voting, par value $0.01 per share; authorized 30,000,000 shares; issued and outstanding, 14,204,877 at 12/31/2025 including 58,821 unvested shares, issued and outstanding, 14,216,781 at 9/30/2025 including 51,085 unvested shares, issued and outstanding, and 14,269,469 at 12/31/2024 including 54,388 unvested shares, issued and outstanding 141 142 142 (0.7)% (0.7)%Additional paid-in capital 95,699 96,311 97,173 (0.6)% (1.5)%Retained earnings 176,913 170,998 159,951 3.5 % 10.6 %Accumulated other comprehensive loss (7,115) (7,759) (10,652) (8.3)% (33.2)%Total shareholders' equity 265,638 259,692 246,614 2.3 % 7.7 %Total liabilities and shareholders' equity $2,332,550 $2,324,544 $2,234,947 0.3 % 4.4 % * Derived from audited consolidated financial statements. John Marshall Bancorp, Inc. Consolidated Statements of Income(Dollar amounts in thousands, except per share data) Three Months Ended Twelve Months Ended December 31, December 31, 2025 2024 % Change 2025 2024 % Change (Unaudited) (Unaudited) (Unaudited) * Interest and Dividend Income Interest and fees on loans $26,433 $25,044 5.5 % $102,651 $96,332 6.6 %Interest on investment securities, taxable 1,053 1,091 (3.5)% 4,198 4,692 (10.5)%Interest on investment securities, tax-exempt 9 9 - - % 36 36 - - %Dividends 120 128 (6.3)% 484 391 23.8 %Interest on deposits in other banks 1,549 1,723 (10.1)% 5,888 8,682 (32.2)%Total interest and dividend income 29,164 27,995 4.2 % 113,257 110,133 2.8 % Interest Expense Deposits 12,303 13,008 (5.4)% 49,027 54,492 (10.0)%Federal funds purchased - - - - N/M 2 2 - - %Federal Home Loan Bank advances 572 572 - - % 2,268 745 204.4 %Federal Reserve Bank borrowings - - - - N/M - ...Full story available on Benzinga.com
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LEXINGTON, S.C., Jan. 28, 2026 /PRNewswire/ -- HighlightsNet income of $4.830 million for the fourth quarter of 2025 and $19.205 million for the year ended December 31, 2025. Net income, excluding the after-tax effect of merger expenses, of $5.357 million for the fourth quarter of 2025, and $20.348 million for the year ended December 31, 2025.Diluted EPS of $0.62 per common share for the fourth quarter of 2025 and $2.47 per common share for the year ended December 31, 2025. Diluted EPS per common share, excluding the after-tax effect of merger expenses, of $0.69, for the fourth quarter of 2025 and $2.62 for the year ended December 31, 2025.Net interest margin on a tax equivalent basis of 3.32% with margin expansion of five basis points during the fourth quarter of 2025 compared to the prior linked quarter. This is the seventh consecutive quarter of margin expansion.Total loan growth of $90.5 million, or 7.4%, during the year ended December 31, 2025 and $31.7 million during the fourth quarter of 2025, an annualized growth rate of 9.8%.Total deposits increased $73.6 million, or 4.4%, during the year ended December 31, 2025. Total deposits declined $21.6 million, or 1.2%, during the fourth quarter of 2025 compared to the prior linked quarter. Total deposit growth, excluding brokered CDs, was $84.1 million during the year ended December 31, 2025, a 5.0% growth rate. There were no brokered CDs at December 31, 2025 compared to $10.4 million at December 31, 2024. Average total deposits and average pure deposits (total deposits less certificates of deposit) increased $17.8 million and $18.8 million, respectively, in the fourth quarter of 2025 compared to the third quarter of the year.In the investment advisory line of business, assets under management (AUM) were a record $1.170 billion at December 31, 2025, up from $1.103 billion at September 30, 2025 and $926.0 million at December 31, 2024. Investment advisory revenue was $2.146 million for the fourth quarter of 2025 and $7.565 million for the year ended December 31, 2025.Mortgage line of business total production in the fourth quarter of 2025 was $44.4 million with fee revenue of $698 thousand and for the year ended December 31, 2025 total production was $202.7 million with fee revenue of $3.3 million.Key credit quality metrics continue to be excellent with 2025 net charge-offs of $52 thousand; net loan recoveries, excluding overdrafts, of $23 thousand; non-performing assets of 0.02% and past due loans of 0.07% at year-end 2025.Cash dividend of $0.16 per common share, the 96th consecutive quarter of cash dividends paid to common shareholders.On January 8, 2026, the company completed its acquisition of Signature Bank of Georgia.Today, First Community Corporation (NASDAQ:FCCO), the holding company for First Community Bank, reported net income for the fourth quarter of 2025 of $4.830 million as compared to $5.192 million in the third quarter of 2025 and $4.232 million in the fourth quarter of 2024. Diluted earnings per common share were $0.62 for the fourth quarter of 2025 as compared to $0.67 for the third quarter of 2025 and $0.55 for the fourth quarter of 2024. Net income, excluding the after-tax effect of merger expenses was $5.357 million for the fourth quarter of 2025. Diluted earnings per common share, excluding the after-tax effect of merger expenses, was $0.69.For the year ended December 31, 2025, net income was $19.205 million compared to $13.955 million for 2024, an increase of 37.6%. Diluted earnings per share for the year ended December 31, 2025 was $2.47, compared to $1.81 for 2024, an increase of 36.5%. Net income, excluding the after-tax impact of merger expenses, was $20.348 million for the year ended December 31, 2025. Diluted earnings per common share for year ended December 31, 2025, excluding the after-tax effect of merger expenses, was $2.62.Cash Dividend and Capital The Board of Directors has approved a cash dividend for the fourth quarter of 2025 of $0.16 per common share. This dividend is payable on February 24, 2026 to shareholders of record of the company's common stock as of February 10, 2026. First Community Corporation President and CEO, Mike Crapps commented, "The entire board is pleased that our performance enables the company to continue our cash dividend uninterrupted for 96 consecutive quarters." The company's Board of Directors has approved a plan to utilize up to $7.5 million of capital to repurchase shares of its common stock, which represented approximately 4.5% of total shareholders' equity as of December 31, 2025. This share repurchase plan expires on May 8, 2026. Under the repurchase plan, the company may repurchase shares from time to time. No shares have been repurchased under this plan. Mr. Crapps noted, "This approved share repurchase provides us with some flexibility in managing capital going forward." Each of the regulatory capital ratios for the bank exceed the well capitalized minimum levels currently required by regulatory statute. At December 31, 2025, the bank's regulatory capital ratios (Leverage, Tier I Risk Based and Total Risk Based) were 8.66%, 13.11%, and 14.16%, respectively. This compares to the same ratios as of December 31, 2024 of 8.40%, 12.87%, and 13.94%, respectively. As of December 31, 2025, the bank's Common Equity Tier I ratio was 13.11% compared to 12.87% at December 31, 2024. Further, the company's Tangible Common Equity to Tangible Assets (TCE) ratio was 7.47% as of December 31, 2025 compared to 7.15% at September 30, 2025 and 6.66% as of December 31, 2024. Tangible Book Value (TBV) per share increased during the quarter to $19.84 per share as of December 31, 2025 as compared to $19.06 as of September 30, 2025 and $16.93 as of December 31, 2024. Asset Quality The company's asset quality remains excellent. The non-performing assets (NPAs) were 0.02% of total assets at December 31, 2025 with $372 thousand in NPAs compared to 0.04% at September 30, 2025. The past due ratio for all loans was 0.07% at year-end 2025, unchanged from September 30, 2025. During the fourth quarter of 2025, the bank experienced net charge-offs of $40 thousand with overall net charge-offs for the year ended December 31, 2025 of $52 thousand. Net loan charge-offs excluding overdrafts were $4 thousand during the fourth quarter of 2025, with overall net loan recoveries excluding overdrafts for the year ended December 31, 2025 of $23 thousand. Other Loans Especially Mentioned (OLEM) increased to $5.2 million, an increase of $2.2 million, primarily due to two unrelated loan relationships, where financial performance has not been as planned; however, no losses are anticipated. The ratio of classified loans plus OREO stands at 0.76% of total bank regulatory risk-based capital as of December 31, 2025 compared to 0.80% on a linked quarter and 1.06% at the end of 2024. Balance SheetTotal loans increased during the fourth quarter of 2025 by $31.7 million to $1.311 billion at December 31, 2025, compared to $1.279 billion at September 30, 2025, which is an annualized growth rate of 9.8%. For the year ended December 31, 2025, loan growth was $90.5 million which is a 7.4% annual growth rate. Commercial loan production was $55.3 million during the fourth quarter of 2025 and $202.6 million for the year ended December 31, 2025, with advances of unfunded commercial construction loans of $14.3 million during the quarter and $48.8 million during the year. Loan payoffs and paydowns in 2025 were up approximately 6.4% compared to 2024. First Community Bank President and CEO Ted Nissen noted, "Loan growth was strong in 2025; a combination of loan production and advances of unfunded commercial loans available for draws even with the headwinds of payoffs and paydowns during the year." The yield on the loan portfolio was 5.84% in the fourth quarter of 2025 unchanged from the prior quarter even as the Federal Reserve lowered the federal funds rate three times in the fourth quarter of 2025. As previously disclosed, effective May 5, 2023, the company entered into a pay-fixed swap agreement with initial notional value of $150.0 million ($127.4 million at December 31, 2025 compared to $136.6 million at September 30, 2025) designated as a fair value hedge for fixed rate loans in the closed loan portfolio ("Loan Pay-Fixed Swap"). This fair value hedge converts the fixed rate to a synthetic floating SOFR rate and will mature on May 5, 2026. Excluding the Loan Pay-Fixed Swap, the yield on the loan portfolio was 5.79% in the fourth quarter of 2025 compared to 5.76% in the prior quarter. At December 31, 2025, total deposits were $1.750 billion compared to $1.676 billion at December 31, 2024, an increase of $73.6 million, representing an annual growth rate of 4.4%. Total deposits decreased $21.6 million during the fourth quarter of 2025 to $1.750 billion at December 31, 2025 compared to $1.771 billion at September 30, 2025. Average deposits in the fourth quarter of 2025 were $1.772 billion compared to $1.755 billion in the third quarter of 2025, an increase of $17.8 million. Pure deposits, which are defined as total deposits less certificates of deposit, decreased $26.4 million on a linked quarter basis to $1.436 billion at December 31, 2025. Average pure deposits were $1.461 billion in the fourth quarter of 2025 compared to $1.442 billion in the third quarter of the year, an increase of $18.8 million. Securities sold under agreements to repurchase, which are related to customer cash management accounts or business sweep accounts, were $107.2 million at December 31, 2025, an increase of $7.6 million on a linked quarter basis, a 30.2% annualized growth rate. As of December 31, 2025, the bank had no brokered deposits compared to $10.4 million at December 31, 2024. Total deposit growth in 2025, excluding brokered deposits, was $84.1 million for an annualized growth rate of 5.0%. Costs of deposits decreased eight basis points to 1.73% in the fourth quarter of 2025 compared to 1.81% in the third quarter of the year. Cost of funds decreased nine basis points on a linked quarter basis to 1.80% in the fourth quarter of 2025 from 1.89% in the third quarter of the year. Non-interest bearing deposits decreased by $16.0 million on a linked quarter basis to $467.3 million or 26.7% of total deposits and increased on an average basis for the quarter to $485.9 million from $475.3 million in the quarter ending September 30, 2025. Mr. Nissen commented, "A strength of our bank has been and continues to be the value of our deposit franchise." The bank has other short-term investments, primarily interest bearing cash at the Federal Reserve Bank, of $137.2 million at December 31, 2025 compared to $163.2 million at September 30, 2025. Further, the bank has additional sources of liquidity in the form of federal funds purchased lines of credit in the total amount of $102.5 million with four financial institutions and $10.0 million through the Federal Reserve Discount Window. The bank also has substantial borrowing capacity at the Federal Home Loan Bank (FHLB) of Atlanta with an approved line of credit of up to 25% of assets. There were no borrowings against these lines of credit as of December 31, 2025.The investment portfolio was $492.2 million at December 31, 2025 compared to $501.3 million at September 30, 2025. The yield was 3.30% during the fourth quarter of 2025 as compared to 3.41% in the third quarter of 2025. The effective duration of the investment portfolio was 3.1 at December 31, 2025. Accumulated Other Comprehensive Loss (AOCL) improved to $18.4 million at December 31, 2025 from $20.2 million at September 30, 2025.RevenueNet Interest Income/Net Interest MarginNet interest income for the for the year ended December 31, 2025 increased 19.2% to $62.0 million compared to $52.0 million for 2024. On a linked quarter basis, net interest income increased to $16.3 million in the fourth quarter of 2025 from $16.0 million in the third quarter of the year, an annualized increase of 7.9%. The net interest margin, on a taxable equivalent basis, was 3.32% for the fourth quarter of 2025 compared to 3.27% in the third quarter of 2025. This represents seven consecutive quarters of net interest margin expansion, with what the company believes is positive momentum entering the first quarter of 2026.The Loan Pay-Fixed Swap positively impacted interest on loans by $150 thousand during the fourth quarter of 2025 and $1.0 million for the year ended December 31, 2025. Loan yields and net interest margin both benefitted with an increase of five basis points and three basis points, respectively, during the fourth quarter of 2025 and eight basis points and five basis points, respectively, for the year ended December 31, 2025. Non-Interest IncomeTotal non-interest income was $4.288 million in the fourth quarter of 2025 compared to $4.469 million in the third quarter of the year and $3.608 million in the fourth quarter of 2024. Total non-interest income, for the year ended December 31, 2025 was $16.945 million, compared to $14.004 million for 2024. Total production in the mortgage line of business in the fourth quarter of 2025 was $44.4 million which was comprised of $25.8 million in secondary market loans, $3.0 million in adjustable rate mortgages (ARMs) and $15.6 million in construction loans. Fee revenue associated with the secondary market loans was $693 thousand in the fourth quarter of 2025 with a gain-on-sale margin of 2.69%. This compares to production in the third quarter of 2025 of $38.1 million which was comprised of $19.5 million in secondary market loans, $8.7 million in ARMs, and $9.9 million in construction loans. Fee revenue associated with the secondary market loans in the third quarter of 2025 was $930.7 thousand with a gain-on-sale margin of 2.91%. Production in the fourth quarter of 2024 was $41.88 million which was comprised of $24.04 million in secondary market loans, $7.92 million in ARMs, and $9.92 million in construction loans. Fee revenue associated with the secondary market loans was $707 thousand in the fourth quarter of 2024 with a gain-on-sale margin of 2.94%. Mr. Nissen noted, "While we are still experiencing the headwinds of a higher interest rate environment and low housing inventory, we are encouraged by recent trends." Revenue in the investment advisory line of business was $2.146 million in the fourth quarter of 2025 compared to $1.862 million in the third quarter of 2025 and $1.720 million in the fourth quarter of 2024. Total revenue in the investment advisory line of business in 2025 was $7.565 million compared to $6.181 million in 2024. AUM ended 2025 at $1.170 billion compared to $1.103 billion at September 30, 2025, and $926.0 million at year-end 2024. Non-Interest Expense / Taxes Total non-interest expense was $13.827 million in the fourth quarter of 2025, up $153 thousand from non-interest expense of $13.674 million in the third quarter of the year. Salaries and Benefits expense increased $114 thousand on a linked-quarter basis. Other expenses increased $183 thousand, primarily due to computer service charges and other miscellaneous items. Merger-related expenses were $120 thousand lower on a linked quarter. OtherSpecial meetings of shareholders related to the merger were held on Wednesday, November 19, 2025, with shareholders of both First Community Corporation and Signature Bank of Georgia approving the transaction. Required regulatory approvals were also received during the fourth quarter of 2025. On January 8, 2026, First Community Corporation completed the financial closing of its acquisition of Signature Bank of Georgia, with the operational systems conversion scheduled for mid‐March 2026. This acquisition provides First Community with entry into a new market as well as a new line of business focused on SBA and other government‐guaranteed lending. At December 31, 2025, Signature Bank of Georgia reported $197.8 million in loans and $235.3 million in deposits. The bank recorded a net interest margin of 4.44% for the fourth quarter of 2025.The financial information relating to Signature Bank of Georgia reflects historical, unaudited, standalone information for periods prior to the completion of the acquisition and is provided solely for informational purposes. Such information is not included in the company's consolidated financial statements for the periods presented and should not be considered indicative of the company's results of operations following the acquisition. The net interest margin of Signature Bank of Georgia represents a performance metric historically used by Signature Bank of Georgia in managing its operations and may not be calculated in the same manner as net interest margin reported by the company or other financial institutions. Accordingly, this information is not intended to be comparable to the company's net interest margin or to any pro forma financial information.About First Community CorporationFirst Community Corporation stock trades on The NASDAQ Capital Market under the symbol "FCCO" and is the holding company for First Community Bank, a local community bank based in the Midlands of South Carolina. First Community Bank is a full-service commercial bank offering deposit and loan products and services, residential mortgage lending, financial planning/investment advisory services, and SBA/USDA lending. First Community serves customers in the Midlands, Aiken, Upstate and Piedmont Regions of South Carolina as well as Augusta and Atlanta, Georgia. For more information, visit www.firstcommunitysc.com.FORWARD-LOOKING STATEMENTSThis news release and certain statements by our management may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans, goals, projections and expectations, and are thus prospective. Forward looking statements can be identified by words such as "anticipate", "expects", "intends", "believes", "may", "likely", "will", "plans", "positions", "future", "forward", or other statements that indicate future periods. Such risks, uncertainties and other factors, include, among others, the following: (1)the risk that anticipated cost savings or other expected benefits of the acquisition of Signature Bank of Georgia may not be realized; (2) potential disruption to client or employee relationships as a result of the acquisition of Signature Bank of Georgia; (3) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (4) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected; (5) the rate of delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (6) changes in legislation, regulation, policies or administrative practices, whether by judicial, governmental, or legislative action; (7) adverse conditions in the stock market, the public debt markets and other capital markets (including changes in interest rate conditions) could continue to have a negative impact on the company; (8) changes in interest rates, which have and may continue to affect our deposit and funding costs, net income, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of our assets, including our investment securities; (9) technology and cybersecurity risks, including potential business disruptions, reputational risks, and financial losses, associated with potential attacks on or failures by our computer systems and computer systems of our vendors and other third parties; (10) elevated inflation which causes adverse risk to the overall economy, and could indirectly pose challenges to our customers and to our business; (11) any increases in FDIC assessment which has increased, and may continue to increase, our cost of doing business; (12) the adverse effects of events beyond our control that may have a destabilizing effect on financial markets and the economy, such as epidemics and pandemics, war or terrorist activities, essential utility outages, government shutdowns, deterioration in the global economy, instability in the credit markets, disruptions in our customers' supply chains or disruption in transportation; and (13) risks, uncertainties and other factors disclosed in our most recent Annual Report on Form 10-K filed with the SEC, or in any of our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K filed with the SEC since the end of the fiscal year covered by our most recently filed Annual Report on Form 10-K, which are available at the SEC's Internet site (http://www.sec.gov).Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. We can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. FIRST COMMUNITY CORPORATIONBALANCE SHEET DATA(Dollars in thousands, except per share data)As ofDecember 31,September 30,June 30,March 31,December 31,20252025202520252024 Total Assets$ 2,057,732$ 2,066,598$ 2,046,265$ 2,039,371$ 1,958,021 Other Short-term Investments and CD's1137,184163,237151,323173,246123,455 Investment Securities Investments Held-to-Maturity195,135198,824201,761205,819209,436 Investments Available-for-Sale294,109299,529302,627286,944279,582 Other Investments at Cost2,9422,9422,8942,8942,679 Total Investment Securities492,186501,295507,282495,657491,697 Loans Held-for-Sale10,7378,97010,9757,0529,662 Loans1,311,0191,279,3101,260,0551,251,9801,220,542 Allowance for Credit Losses - Investments1919192423 Allowance for Credit Losses - Loans13,80613,47813,33013,60813,135 Allowance for Credit Losses - Unfunded Commitments531529490455480 Goodwill14,63714,63714,63714,63714,637 Other Intangibles289328368407446 Total Deposits1,749,5441,771,1641,754,0411,725,7181,675,901 Securities Sold Under Agreements to Repurchase107,18999,614103,640129,812103,110 Federal Funds Purchased----- Federal Home Loan Bank Advances----- Junior Subordinated Debt14,96414,96414,96414,96414,964 Accumulated Other Comprehensive Loss (AOCL)(18,401)(20,173)(21,863)(22,973)(25,459) Shareholders' Equity167,557161,568155,500149,959144,494 Book Value Per Common Share$ 21.78$ 21.01$ 20.23$ 19.52$ 18.90 Tangible Book Value Per Common Share (non-GAAP)$ 19.84$ 19.06$ 18.28$ 17.56$ 16.93 Equity to Assets8.14 %7.82 %7.60 %7.35 %7.38 % Tangible Common Equity to Tangible Assets (TCE Ratio) (non-GAAP)7.47 %7.15 %6.92 %6.66 %6.66 % Loan to Deposit Ratio (Includes Loans Held-for-Sale)75.55 %72.74 %72.46 %72.96 %73.41 % Loan to Deposit Ratio (Excludes Loans Held-for-Sale)74.93 %72.23 %71.84 %72.55 %72.83 % Allowance for Credit Losses - Loans/Loans1.05 %1.05 %1.06 %1.09 %1.08 %Regulatory Capital Ratios (Bank): Leverage Ratio8.66 %8.55 %8.44 %8.45 %8.40 % Tier 1 Capital Ratio13.11 %13.10 %13.04 %12.90 %12.87 % Total Capital Ratio14.16 %14.15 %14.10 %13.99 %13.94 % Common Equity Tier 1 Capital Ratio13.11 %13.10 %13.04 %12.90 %12.87 % Tier 1 Regulatory Capital$ 179,295$ 175,471$ 171,611$ 167,673$ 164,397 Total Regulatory Capital$ 193,650$ 189,497$ 185,450$ 181,759$ 178,034 Common Equity Tier 1 Capital$ 179,295$ 175,471$ 171,611$ 167,673$ 164,3971 Includes federal funds sold and interest-bearing depositsAverage Balances:Three months endedTwelve months endedDecember 31,December 31,2025202420252024 Average Total Assets$ 2,072,128$ 1,954,772$ 2,034,958$ 1,897,755 Average Loans (Includes Loans Held-for-Sale)1,302,8261,211,8801,271,6731,185,024 Average Investment Securities496,901486,074499,691491,039 Average Short-term Investments and CDs1166,191147,817155,596110,907 Average Earning Assets1,965,9181,845,7711,926,9601,786,970 Average Deposits1,772,4851,661,7821,733,7941,593,832 Average Other Borrowings116,907129,165126,862146,956 Average Shareholders' Equity164,514143,726155,397137,171Asset Quality: As of December 31,September 30,June 30,March 31,December 31,20252025202520252024Loan Risk Rating by Category (End of Period) Special Mention$ 5,186Full story available on Benzinga.com
Cartier publie son rapport NI 43‐101 mis à jour : le projet Cadillac affiche une forte hausse des ressources aurifères et un potentiel d’expansion majeur.
Motorola has launched two new smartphones in its G-series lineup: the Moto G17 and the Moto G17 Power. The company’s two new entry-level smartphones share very similar specs and design, including a MediaTek Helio G81 Extreme processor, a 60 Hz LCD display, a 50 MP Sony LYTIA 600 main camera, and up to 8 GB of RAM and up to 256 GB of storage.
NEW YORK--(BUSINESS WIRE)--After years of sluggishness due to persistently high levels of remote work brought on by the COVID-19 pandemic, office demand in the tech sector surged in 2025 and was the primary driver of growth nationally, according to the latest VTS Office Demand Index (VODI) report. Most notably, the tech-dominated markets of Seattle and San Francisco experienced meteoric rises in office demand, with both markets seeing year-over-year growth near 50 percent, up 46 and 45 percent,
Motorola has grown its Moto G series line of smartphones with the launch of a new model. The new Moto G77 has a new camera, a bigger battery, and a brighter display than its predecessor, the Moto G75.