INBKZ

• David Becker highlighted strong fourth quarter results with 21% quarterly revenue growth, strategic loan sale to Blackstone, and BaaS growth. - Nicole Lorch discussed SBA production realignment to prioritize credit quality, BaaS platform growth, and credit performance improvements in franchise and SBA portfolios. - Ken Lovik detailed fourth quarter financial results, net interest margin improvement, and 2026 outlook including loan growth, net interest margin expansion, and expense projections.

Expect loan growth in the range of 15% to 17% in 2026. Net interest margin expected to reach 2.75% to 2.8% by 2026. Noninterest income projected at $33 million to $35 million. Operating expenses projected at $111 million to $112 million. Provision for credit losses estimated at $50 million to $53 million, with the first half remaining elevated.

Net interest income grew 30% year over year. Banking as a service (BaaS) initiatives generated over $1.3 billion in new deposits in 2025, with payments volume exceeding $165 billion. In the SBA business, nearly $580 million in funded originations were achieved in 2025 despite industry challenges.

Isolated credit issues in SBA and franchise finance portfolios. Regulatory and market uncertainties impacting financial performance. Interest rate fluctuations affecting net interest margin and funding costs.

Q: Brett Rabatin asked about SBA loan balance sheet exposure and CD repricing.

A: Ken Lovik discussed deposit cost decreases, CD maturities, and lending yield expectations.

Q: Nathan Race inquired about interest reversals and credit cost outlook.

A: Ken Lovik addressed interest reversals in models and provision guidance.

Q: George Sutton asked about credit challenges and BaaS income impact.

A: Nicole Lorch and Ken Lovik discussed vintage analysis and BaaS income components.

Q: Emily Lee asked about fintech deposit growth impact.

A: Ken Lovik and Nicole Lorch talked about fintech deposit sources and revenue.

Q: Nathan Race inquired about balance sheet growth funding.

A: Ken Lovik and David Becker discussed loan to deposit ratio and funding flexibility.