Q4 2025 Financial Highlights
Total deposits grew by $373.7 million, or 1.8%, to $20.8 billion from Q3 2025. Loans increased by $479.4 million, or 2.9%, to $16.8 billion. Net interest income hit $204.4 million, up $2.5 million from the prior quarter, due to lower interest expenses.
The company issued $100 million in subordinated debt on December 22, 2025. It redeemed all $85 million of Series F Preferred Stock on December 15, 2025.
Full-Year 2025 Performance
For 2025, net income available to common shareholders was $209.2 million, or $6.26 per diluted share. ROAA measured 0.96%, and ROCE was 11.22%. Core earnings totaled $254.5 million, or $7.61 per diluted share, with core ROAA at 1.13% and core ROCE at 13.65%.
Deposits expanded by $1.9 billion, or 10.3%. Loans grew by $2.1 billion, or 14.5%. Net interest income set a record at $750.5 million, up 14.7% from 2024. CET1 capital ratio strengthened to 13.0% from 12.1% a year earlier.
Book value per share rose 14.2% to $61.87. Tangible book value per share increased similarly to $61.77. Total shareholders’ equity climbed $278.8 million, or 15.2%.
Balance Sheet and Credit Quality
Loans held for investment reached $16.8 billion, up 3.0% quarter-over-quarter and 16.0% year-over-year. Growth came from non-owner occupied CRE (+27.9% YoY), specialized lending (+21.4%), and multifamily (+10.6%). Investment securities fell to $2.7 billion.
Deposits’ average cost dropped 23 basis points to 2.54% in Q4. Uninsured deposits were $6.6 billion, or 32%, with 161% liquidity coverage. Borrowings rose to $1.7 billion.
Credit quality stayed strong. Non-performing assets ratio was 0.29%. Reserves covered 356% of non-performing loans. Provision for credit losses was $22 million. Net charge-offs totaled $14 million. Non-performing loans edged to 0.26% of loans.
Income Statement Breakdown
Non-interest income rose to $32.5 million, up from Q3, driven by lease income and gains on assets. Year-over-year, it surged due to reduced losses on securities sales. Non-interest expenses increased to $117.3 million, tied to salaries, lease depreciation, and one-time items. Income tax expense was $22.8 million, with a 23.4% effective rate.
Leadership and Outlook
Executive Chairman Jay Sidhu praised strategic growth and team performance. Sam Sidhu assumed CEO role on January 1, 2026.
For 2026, the company targets 8%-12% loan and deposit growth. Net interest income is projected at $800 million-$830 million. Non-interest expenses aim for $440 million-$460 million. CET1 targets 11.5%-12.5%, with a 23%-25% tax rate.