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Date

Jan. 30, 2026, 9 a.m. ET

Call participants

  • President and Chief Executive Officer — Jeremy B. Ford
  • Chief Financial Officer — William E. Furr

Takeaways

  • Full-Year Net Income -- $166 million, representing a 46% increase, with diluted EPS of $2.64.
  • Quarterly Net Income -- $41.6 million, equating to $0.69 per diluted share, and a return on average assets of 1.1%.
  • Full-Year Total Revenue -- Increased 8% to approximately $1.3 billion, while expenses grew 2%, resulting in a 6% positive operating leverage.
  • Net Interest Income (NII) -- Grew 7% for the year; fourth quarter NII was $112.5 million, up $7 million versus the prior year.
  • Net Interest Margin (NIM) -- Reached 302 basis points, up 30 basis points from 2024; PlainsCapital Bank’s NIM up 12 basis points year over year and ended the quarter at 329 basis points.
  • Allowance for Credit Losses (ACL) -- Ended the quarter at $91.5 million, with coverage ratio at 1.1% (inclusive of mortgage warehouse lending, coverage ratio was 1.15%).
  • Net Charge-Offs -- $11.5 million in the quarter, of which $9.5 million related to two large auto note credits, with $5.7 million previously reserved.
  • Deposits -- Average total deposits for the quarter were $10.7 billion, declining by $233 million, as $397 million in sweep deposits were returned to Hilltop Securities; ending deposit balances increased by $200 million, net of the sweep adjustment.
  • Interest-Bearing Deposit Costs -- Averaged 269 basis points in Q4, down 21 basis points sequentially, and 44 basis points year over year.
  • Loan Growth -- Average HFI loans reached $8.2 billion, up 1.8% quarter over quarter; period-end HFI loans increased $361 million year over year, primarily from commercial real estate.
  • Provision for Credit Loss -- $7.8 million in the quarter, attributed to net charge-offs and modest economic outlook deterioration.
  • PrimeLending Origination Volume -- $2.4 billion seasonally adjusted volume in the quarter, though the segment posted a $5 million pretax loss.
  • Mortgage-Related Income -- Q4 mortgage-related fees increased $2.5 million year over year, with refinance volumes up $168 million, or 49%.
  • Gain on Sale Margin -- Improved by 19 basis points for the year; management expects stable combined gain on sale margin and origination fees in the 350%-360% basis point range.
  • Hilltop Securities Net Revenue -- Delivered net revenue of $138 million, pretax income of $26 million, and an 18% pretax margin in the quarter.
  • Public Finance Net Revenue -- Increased 20% year over year in Q4; wealth management net revenues rose 16% to $53 million.
  • Return of Capital -- $229 million returned to stockholders in 2025 via share repurchases and dividends; $11 million in dividends, and $61 million in repurchases during Q4.
  • Common Equity Tier 1 Ratio -- Stood at 19.7% at period-end, reflecting strong capital levels.
  • Tangible Book Value Per Share -- Rose by $0.60 sequentially to $31.83.
  • Loan Pipeline Entering 2026 -- $2.6 billion, identified by management as "on the high side" historically.
  • Outlook for Bank Loan Growth in 2026 -- Expected to be 4%-6%, excluding PrimeLending and mortgage warehouse impacts.
  • NII Sensitivity -- "For every 25 basis points" change in rates, modeled asset sensitivity is "about four and a $5 million" in annual NII impact.
  • Broker-Dealer Pretax Margin Guidance -- Management described low-double-digit to low-teen range (10%-14%) as "appropriate."
  • Share Repurchase Authorization -- Set at $125 million for 2026, described as "pretty standard."
  • Dividend Increase -- Grew by 11% for the year.
  • Noninterest Expenses -- Increased by $6 million year over year to $269 million, mostly related to variable compensation, severance, and healthcare costs.
  • Business Line Performance -- PlainsCapital Bank expanded its net interest margin and grew loans; PrimeLending remained challenged, but achieved seasonally healthy origination; Hilltop Securities posted record public finance and positive wealth management results.

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Risks

  • Quarter included elevated net charge-offs of $11.5 million, of which $9.5 million were write-downs for two previously discussed auto note credits, with management recognizing, "We're disappointed by the charge-offs related to the auto credits."
  • PrimeLending reported a $5 million pretax loss in the quarter, with management stating, "profitability remains challenged as headwinds within the broader mortgage industry continue to weigh on total volumes and margins."
  • Management highlighted "uncertainty in the market regarding interest rates, inflation, and the overall health of the economy" as a factor influencing 2026 outlook.

Summary

Hilltop Holdings (HTH +1.85%) recorded notable full-year and quarterly growth in net income, driven by improvement in net interest income, deposit cost management, and increased business line fee revenues. Management emphasized a strong capital position via a 19.7% common equity tier 1 ratio and raised the dividend by 11%, while controlling expense growth to generate 6% positive operating leverage. Loan pipelines are robust heading into 2026, with expectations for 4%-6% bank loan growth and stable aggregate mortgage gain on sale revenue, as asset sensitivity modeling suggests NII could be moderately impacted by rate movements. Guidance for broker-dealer pretax margins remains unchanged in the low-double-digit to low-teen range, supported by segment diversification, but loan pricing competition and external macroeconomic factors continue to represent sources of risk.

  • Management returned $229 million to shareholders in 2025 through a mix of dividends and share repurchases, sustaining a proactive capital return policy.
  • Average interest-bearing deposit costs decreased both sequentially and year over year, supporting margin expansion within the banking segment.
  • Allowance for credit losses declined during the quarter, but higher net charge-offs were concentrated in two auto credits, with substantial prior reserving softening the direct EPS impact.
  • The mortgage segment showed sequential recovery in origination and fee income, though profitability remains pressured by persistent industry-wide headwinds.
  • Segment performance detail shows diversified fee income gains, including a 20% increase in public finance, and 16% growth in wealth management revenues at Hilltop Securities.

Industry glossary

  • Net Interest Margin (NIM): A measure of the difference between interest income generated and interest paid out, expressed as a percentage of average earning assets, critical for bank profitability analysis.
  • Allowance for Credit Losses (ACL): The reserve established to absorb estimated future credit losses, indicative of portfolio credit quality and risk management posture.
  • Gain on Sale Margin: The profit as a percentage of total mortgage sales, representing the spread banks earn when selling originated loans onto the secondary market.
  • Sweep Deposits: Customer funds automatically transferred into interest-bearing accounts or investment vehicles, often affecting balance sheet composition and net interest income volatility.
  • HFI Loans: Held-for-investment loans, meaning loans the bank intends to hold until maturity rather than sell.

Full Conference Call Transcript

Jeremy Ford.

Jeremy Ford: Thank you, Matt, and good morning. Before we review the results for the fourth quarter, I would like to spend time discussing the full year 2025. From a macro perspective, we saw a continued decline in short-term interest rates as the FOMC cut their target rate three times, totaling 75 basis points. The yield curve realized a further steepening through the year as long-term interest rates, namely the ten-year treasury note, remained range-bound between 4-4.5%. Hilltop Holdings Inc., akin to many of our banking peers, has benefited from the increased slope of the yield curve by realizing an increase in net interest income and net interest margin.

Specifically, at PlainsCapital Bank, proactive management of deposit costs has helped to increase NIM by 12 basis points when compared to the prior year. At PrimeLending, the combination of further expense optimization and a tightening in the spread between the going on mortgage rates and the ten-year treasury note helped to shrink operating losses for the year 2025. However, material headwinds of challenging affordability, low new home inventory, and increased ownership expenses continued to weigh on industry volumes and margins. Hilltop Securities, through strong execution in our core competencies, was able to produce a 13.5% pretax margin on net revenue of $501 million.

Finally, Hilltop Holdings Inc. returned $229 million to stockholders through the repurchase of shares and common dividends while delivering $166 million of net income, which represents a 46% increase over the prior year. I would like to thank our colleagues throughout Hilltop Holdings Inc. for their hard work and dedication in 2025. Moving to the fourth quarter, Hilltop Holdings Inc. reported net income of approximately $42 million or $0.69 per diluted share. Return on average assets for the period was 1.1%, and return on average equity was 7.6%. Summarizing our lines of businesses, PlainsCapital Bank realized a further expansion in net interest margin while continuing to see strong signs of core loan growth from a robust pipeline.

PrimeLending continued to optimize the expense base of the franchise while realizing a healthy seasonally adjusted origination volume of $2.4 billion. And Hilltop Securities saw continued positive results from the wealth management, public finance, and structured finance lines of business. Within the quarter, PlainsCapital Bank generated $43.5 million in pretax income and a 1.05% return on average assets. Net interest margin saw continued expansion to 329 basis points, largely due to the previously mentioned active management of deposit costs. While competition continues to increase within our markets, the bank has successfully increased lender headcount and continues to show a healthy loan pipeline.

These metrics signal the great brand reputation at PlainsCapital Bank, where we are known for providing excellent service and value to our banking customers. Total core deposits within our markets showed further increases, allowing the bank to return an additional $225 million of sweep deposits to our broker-dealer. That balance stands now at $100 million, which is down 82% relative to year-end 2024. Results in the quarter included a $7.9 million provision expense. This was largely due to the stress of, excuse me, this is largely driven by two stressed auto note credits that we have discussed in prior quarters. William Furr is going to provide further commentary on credit in his prepared remarks.

Overall, the bank continues to show tailwinds from strong loan growth, healthy core funding trends, and a positive interest rate environment that supports our expanded net interest margin. Moving to PrimeLending, where the company reported a pretax loss of $5 million during the fourth quarter. We realized a seasonally healthy start to the winter months from an origination volume perspective as a decline in going on mortgage rates spurred on a modest rebound relative to the very subdued second and third quarters of this year. However, profitability remains challenged as headwinds within the broader mortgage industry continue to weigh on total volumes and margins.

As is typical, we expect for the first quarter of the year to be a seasonally slow home buying environment, which should impact PrimeLending's origination volume. During this prolonged mortgage cycle, we have executed on several operational cost reductions at PrimeLending to optimize the business and create a more efficient platform. We will continue to pursue increased levels of efficiency while investing in ways to organically grow production headcount and total origination volumes in order to expand our operating leverage. During the quarter, Hilltop Securities generated pretax income of $26 million on net revenues of $138 million for a pretax margin of 18%.

Speaking to the business lines at Hilltop Securities, public finance services rounded out a very strong year by producing a 20% year-over-year increase in net revenues as they capitalized on increased industry issuance volumes. Structured finance net revenues increased by $2 million versus 2024. A decline in trading revenues was offset by a material increase in lock volumes on a year-over-year basis. Through wealth management, net revenues increased by 16% to $53 million when compared to 2024. The continued healthy results in 2025 are due in part to the growth from our advisory fees on higher managed balances and improved transaction revenues. Further, strength in revenues generated by sweep deposits continues to bolster our results.

Finally, fixed income services showed a modest increase in net revenues versus the prior year as both sales and trading revenues improved year-over-year. Overall, Hilltop Securities delivered another strong quarter to round a favorable year for the firm. We continue to focus on executing on our strategic initiatives as we aim to be a full solution provider to our clients. Moving to page four, Hilltop Holdings Inc. maintains solid capital levels with a common equity tier one capital ratio of 19.7%. Additionally, our tangible book value per share increased over the prior quarter by $0.60 to $31.83. During the period, we returned $11 million to stockholders through dividends and repurchased $61 million in shares. Thank you.

I'll now turn the presentation over to William Furr to discuss our financials in more detail.

William Furr: Thank you, Jeremy. I'll start on page five. As Jeremy discussed, for 2025, Hilltop Holdings Inc. reported consolidated income attributable to common stockholders of $41.6 million, equating to $0.69 per diluted share. The fourth quarter results include a $7.8 million provision for credit loss, which reflects the combined impacts of net charge-offs during the period and a modest deterioration in the economic condition outlook. Even with higher provision expense versus the prior year, we are pleased with solid growth in net interest income, which grew 7% versus the prior year, and noninterest income, which grew 11% versus the prior year, both of which contributed to a 26% improvement in Hilltop Holdings Inc.'s diluted EPS.

Turning to page six, for the full year of 2025, Hilltop Holdings Inc. reported consolidated income attributable to common stockholders of $165.6 million, equating to $2.64 per diluted share, representing growth of 46% versus the prior year's results, respectively. During the year, total revenues, including both net interest income and noninterest income, increased by 8% to approximately $1.3 billion, while expenses grew by 2%, resulting in positive operating leverage of 6% for the year-end 2025. Moving to page seven, Hilltop Holdings Inc.'s allowance for credit losses decreased during the quarter by $3.6 million to $91.5 million. During the quarter, Hilltop Holdings Inc. recorded net charge-offs of $11.5 million.

Included in these net charge-offs were write-downs of $9.5 million related to two large auto note credits that have been referenced on prior calls. During the fourth quarter, the expected cash flows from the two loan portfolios that support these credits declined substantially from prior period estimates. As a result, management decided to mark these assets to the updated fair value, thereby recognizing the charge-offs versus building and carrying an outsized allowance against these loans. Of the net charge-off amount for these auto credits, approximately $5.7 million had been previously reserved. In addition, the allowance for credit losses increased modestly for portfolio migration and some deterioration in the macroeconomic outlook.

At year-end, the allowance for credit losses of $91.5 million built an ACL to total loans, HFI ratio, of 1.1%. As we've seen over time, ACL can be volatile as it's impacted by economic assumptions, as well as changes in the mix and makeup of the credit portfolio. We continue to believe that future changes in the allowance for credit losses will be driven by net loan growth, portfolio credit migration trends, and changes in the macroeconomic outlook over time. Turning to page eight, net interest income in the fourth quarter equated to $112.5 million, which included $1 million of purchase accounting accretion, remaining relatively stable with the prior quarter and increasing by $7 million versus the prior year.

Net interest margin increased versus 2024 by 30 basis points to 302 basis points. Improvement in NIM and net interest income continues to be driven by the solid work our bank team is doing on managing deposit costs and growing lower-cost deposits within the bank. Through this portion of the cycle, we've maintained a 68% interest-bearing deposit beta, which has substantially improved versus our previous ALM model results of 50% to 55%.

While the team continues to focus on creating value for our clients while managing our overall net interest income, we do expect that the interest-bearing deposit beta will fall towards 60% to 65% if the Federal Reserve reduces rates an additional two to three times during this portion of the rate cycle. Moving to page nine, fourth quarter average total deposits were approximately $10.7 billion, declining versus 2024 by $233 million. The decline in average deposits was driven by management's decision to return on average $397 million of HTS sweep deposits back to Hilltop Securities to be deployed into their FDIC-insured sweep deposit program.

On an ending balance basis, deposits increased by approximately $200 million from 2025, net of the return of sweep deposits of $225 million. The growth in customer deposits was driven by expanded commercial relationships, coupled with positive seasonal deposit trends from our public sector clients at the bank. As a result of our ongoing pricing efforts, average interest-bearing deposit cost declined to 269 basis points, a decrease of 21 basis points versus the third quarter 2025 levels, which supports a decline in total deposit cost of 2%, which were down 44 basis points from the prior year period.

Currently, we expect that interest-bearing deposit costs will move somewhat lower over the coming quarters and then stabilize until we see any additional movement by the Federal Reserve on short-term rates. Moving to page 10, total noninterest income for 2025 equated to $217 million. Fourth quarter mortgage-related income and fees increased by $2.5 million versus the fourth quarter 2024, driven by improvement in both lock and originated volumes versus the same period in the prior year. While signs of improvement in our mortgage business are emerging, some of the significant macro challenges persist, whereby the combination of higher interest rates, home price inflation, insurance, and elevated tax costs continue to pressure volumes and margins.

Versus the same period at $1.9 billion, refinance volumes increased by $168 million or 49% versus the prior year period. Prior year, purchase mortgage volumes were relatively stable. During 2025, gain on sale margins improved by 19 basis points. Throughout 2025, our customers' desire to buy down their mortgage rate has also diminished. During the fourth quarter, public finance, wealth management, and structured finance business lines within Hilltop Securities all generated higher fee income versus the prior year period. Public finance benefited from higher market debt offerings across our customer base, and wealth benefited from the performance in the equity markets coupled with continued efforts to grow our producer and client base.

Structured finance results reflect higher lock volumes from first-time homebuyers across the state housing agencies we support. Other noninterest income grew $4.6 million versus the prior year period, largely driven by valuation adjustments and return on certain investments within our merchant banking investment portfolio. As we've noted in the past, it is important to recognize that both the fixed income services and structured finance businesses at Hilltop Securities can be volatile from period to period as they're impacted by interest rates, overall market liquidity, and production trends. Turning to page 11, noninterest expenses increased from the same period in the prior year by $6 million to $269 million.

Driving the increase in noninterest expense were higher variable compensation expenses, principally within the mortgage and securities businesses. In addition, compensation expenses were elevated during 2025 by $2.4 million of severance-related costs, as well as an increase in overall healthcare costs. Looking forward, we expect expenses other than variable compensation to remain relatively stable between $180 and $190 million per quarter as our ongoing focused efforts related to streamlining our operations and improving productivity continue to support lower headcount and improved throughput across our franchise, helping to offset the ongoing inflationary pressures that persist in the market. Moving to page 12, fourth quarter average HFI loans equated to $8.2 billion and grew by 1.8% versus the prior quarter.

On a period-ending basis, HFI loans increased versus 2024 by $361 million, driven by growth in commercial real estate lending. While the economy in Texas remains resilient, we do expect the competition for funded loans will remain very intense. As we look forward to 2026, we are expecting that full-year average bank loan growth of 4% to 6%, excluding the impact of loans retained from PrimeLending and mortgage warehouse lending. Moving to page 13, as is shown in the chart on the bottom left of the page, net charge-offs for the fourth quarter related to $11.5 million.

As noted earlier, the most significant charge-offs in the period related to the two auto note finance credits that we've discussed on prior calls, which accounted for $9.5 million of net charge-offs during the quarter. We previously reserved $5.7 million for these credits, and as a result, the full $9.5 million did not impact provision expense in the period. For the full year of 2025, net charge-offs equated to $16.9 million or 21 basis points of full-year average HFI loans. We're disappointed by the charge-offs related to the auto credits. We believe the credit quality remains stable across the portfolio and do not currently see any large systemic areas of concern.

As is shown on the graph, the bottom right of the page, the allowance for credit loss coverage at the bank ended the fourth quarter at 1.15%, including mortgage warehouse lending. Moving to page 14, as we moved into 2026, there continues to be a lot of uncertainty in the market regarding interest rates, inflation, and the overall health of the economy. That said, we provided our current outlook metrics for the coming year. As we've noted in the past, we're pleased with the work that our team has delivered to position our company for long-term success. Our outlook for 2026 reflects our current assessment of the economy and the markets where we participate.

Further, as the market changes and we adjust our business to respond, we'll provide updates to our outlook on our future quarterly calls. Operator, that concludes our prepared comments. We'll turn the call back to you for the Q&A section of the call.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. You will hear a prompt that your hand has been raised. And should you wish to cancel your request, please press star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. And your first question comes from the line of Matt Olney from Stephens. Please go ahead.

Matt Olney: Hey, thanks. Good morning, guys.

Jeremy Ford: Good morning.

Matt Olney: I'll start on the broker-dealer. It looks like those broker-dealer fees were good in the quarter, and guidance calls for those to be relatively stable in 2026. Hoping you could speak to a few of the business lines and expectations for 2026. And then, I guess, kind of part two of that, that pretax margin, I think it's been 13.5% over the last two years. Is that a good baseline to assume for 2026? Thanks.

Jeremy Ford: So, thanks for the question. You know, I think as we look into 2026, we feel very good about the franchise that is Hilltop Securities and the four primary business lines there. We go through them. Public finance had really saw record originations, both in the industry as well as here. And we expect that to remain reasonably strong going into the year 2026, notwithstanding kind of market changes. But our current view is that public finance, that business is set up to do well. And the investments we've made there continue to bear fruit. We continue to work diligently on fixed income services. We've noted over the last couple of quarters, and maybe years, that's been a challenging business.

It seems to be moderating and producing solid results. Again, relative to the investments we've made and expectations. So fixed income services, we're optimistic about. Wealth management, as we noted, has benefited from both the overall improved equity market conditions and the continuation of that this year. But we expect that business, given, again, investments we've made in people, our ability to attract and retain customers, as well as some of the technology investments we've made there, to continue to improve over time, but it is market dependent based on how the overall markets perform. And in structured finances, as we've always said, is directly correlated to first-time homebuyers across the housing agencies we support.

We believe there's going to continue to be a robust market for that going forward. But as we've noted in the past, we have seen certain states that have provided support, and, you know, that's certainly been helpful for overall origination volume, and we'll see if they continue to provide that support in the future. And I would just add, I'm really pleased with Hilltop Securities, the year they had this year and last, and the great management team, great businesses. And our public finance business, we're celebrating our eightieth anniversary this year. For it. So that just, I think it's a good indication of what a dominant public finance business we've had for a long time.

Matt Olney: And your question on pretax margin, it has been consistently 13.5% for the last couple of years. We've historically guided that's going to be low double digits to low teens, so 10 to 13%, 14%. So we feel like this is an appropriate range. What we've seen and certainly look forward to having a solid year in '26.

Matt Olney: Okay. Appreciate the color there. And then I guess the guidance, I believe, also assumes three Fed cuts during '26. I assume that impacts both NII and the broker-dealer fees. Just big picture, any color on the sensitivity of that if we were to get just, you know, on the low end of that one cut or even two cuts? Help us appreciate kind of what that would look like for NII and then the broker fee income.

Jeremy Ford: Yeah. I think broker fee income is going to be a little more difficult because there are clearly puts and takes there as it relates to, you know, certain things would improve if rates move lower, certain things will, you know, sweep income, for example, could be pressured. But that would be, you know, I'd say single-digit millions of dollars from an NII perspective, you know, we've noted there was an objective of ours to reduce overall asset sensitivity. We continued to do that. As you can see in the deck, we've got kind of modeled asset sensitivity on an instantaneous parallel basis of just over 4%.

And so every 25 basis points, in that environment on an annual basis, is about four and a $5 million of NII.

Matt Olney: Okay. That's great. I'll step back. Thank you.

Jeremy Ford: Thank you.

Operator: And your next question comes from the line of Michael Rose from Raymond James. Please go ahead.

Michael Rose: Hey, good morning, guys. Thanks for taking my questions. Just wanted to discuss capital. Obviously, nice to see the dividend increase. But I think the buyback authorization was down from last year and maybe a little bit less than at least what I was looking for. Can you just kind of discuss capital priorities? And clearly, we've seen a lot of M&A in and around your markets. I know you guys are kind of always in the hunt for deals. Just wanted to see if there's kind of any update from your perspective. I know you're a little bit hindered by the currency at this point. But has the opportunity set improved from here?

Jeremy Ford: Yeah. Thanks, Michael. No. I think, you know, we're really pleased with the capital we deployed and the way we're able to do it in 2025. I think it's a strong message that we've increased our dividend by 11%. And so that should be well received. And, you know, our share repurchase authorization of $125 million, I think, is about pretty standard for what we authorize. It's the beginning of the year. And then it'll just be something that we monitor throughout the year as far as the deployment of that. So that's kind of on the capital priorities. On the M&A, I mean, clearly, it's been an extremely active year in Texas, and a lot of deals being announced.

You know, I guess the forefront, yes, we are and continue to evaluate acquisition opportunities. At the same time, you know, we're also trying to make sure that we continue to focus on our own organic growth and, you know, try to take advantage of some of the dislocation that this may cause.

Michael Rose: Perfect. Maybe just to ask the flip side of the question. On the M&A conversation. I mean, there's not a lot of properties left in the state of size. You guys are clearly one of them. I know there's decent insider ownership here, but, you know, we just love to know, kind of discuss the potential possibility to maybe partner with a larger institution. You know, have you had any, you know, kind of informal or formal, you're probably not going to answer this, but any reach out from any larger banks at this point?

Jeremy Ford: No. For what we can disclose or discuss, you know, obviously, we're going to remain open to that and do what's in the best interest of the shareholders. You know, I think that our business model is different than, you know, a lot of the other more pure play banks, which is, you know, limited in the universe of people or bigger banks that would be attracted to it.

Michael Rose: Okay. Helpful. Maybe one just final one for me. Just the NII guide. I think it implies some further core margin compression. Well, if you can just maybe, at least for the first quarter, just kind of talk about the expectation. I understand Matt's question as well, but it would seem like there'd be a little bit more core margin pressure as we move into the first couple of quarters of the year.

Jeremy Ford: Well, I think what we've seen is pretty solid action and activity on our deposit cost side. So we feel like that's sustainable at this point. Again, we don't obviously don't control what the Fed does, so we'll play along as they make their updates and changes. We are and have seen, as noted on an ending balance basis, seen solid loan growth across the bank. So all those things we think are constructive. View that as reasonably constructive for the first quarter from our perspective.

Michael Rose: Helpful. Appreciate it. Thanks, guys.

Jeremy Ford: Thank you.

Operator: And your next question comes from the line of Wood Lay from KBW. Please go ahead.

Wood Lay: Hey, good morning, guys.

Jeremy Ford: Morning.

Wood Lay: Maybe turning on loan growth. It's a nice quarter on that front. Could you just talk about the loan pipeline entering 2026? Maybe also talk about just the loan pricing competition that you're seeing in your markets.

Jeremy Ford: Sure. Yeah. Our loan pipeline going into '26 is about $2.6 billion, which is on the high side for us. It built up higher, and then we had a lot of pull-through. But we're feeling really good about the organic loan growth that we're experiencing in our markets and just the expanding client reach that we've had. So I feel really good about the loan portfolio building. You know, on the pricing side, clearly, with rates coming down, we're, you know, our, I think, going on yield came down about 35 basis points in the quarter. So we are seeing that, you know, just with the rate environment.

Wood Lay: Yep. That makes sense. And then maybe just last for me, shifting over to mortgage. I appreciate the origination volume expectation provided in the outlook. But just any thoughts on gain on sale margins over the coming year?

Jeremy Ford: Yeah. I, where we, as we look forward, you know, I think we expect total revenue between both gain on sale margin and mortgage origination fees really to be stable. If you look in our chart, you kind of add those two bars together, you'll see they've been very stable. The mix changes as rates change and customers' preferences to buy down their rate or otherwise changes. But overall revenue around that 350 to 360 basis point range is kind of our expectation into the future. That's obviously down from what you would see in a more robust market.

But again, our view has been and continues to be going to see a steady improvement in the overall mortgage market, not a hockey stick change. As a result, we'd expect kind of aggregate revenues, gross revenues to be stable.

Wood Lay: Alright. Thank you.

Jeremy Ford: Thank you.

Operator: That ends our question and answer session.

Operator: Ladies and gentlemen, this concludes today's call. Thank you for participating. You may all disconnect.