Oct 30, 2026 earnings call — Transforming into a community bank, improving credit
Community Bank loans grew 25% during the quarter, an increase of $41 million.
Revenue $0.0B · EPS $-0.04
Key quotes
"And I want to highlight that the $3.2 million of net charge-offs during this quarter were absorbed within the plan."
"Total deposits increased by $25.3 million or 2.6%."
"These preferred shares have a conversion option priced at the company's last reported tangible book value per share, and we do expect many of those holders to select the conversion option versus seeking redemption."
Analyst Q&A 2
One-time items and unguaranteed loan losses
Q (Ross Haberman · RLH Investments): He asked how much of the quarter were non-recurring items. He also asked if $10 million of the $132 million unguaranteed loans was paid down, and whether the $2.9 million charge-offs were only on that unguaranteed portion and likely to continue.
A: They said there were no non-recurring items in the third quarter. They confirmed the $10 million paydown was on the unguaranteed loans and said they expect that runoff trend to continue. They said the charge-offs were only on the unguaranteed 7(a) loans and they hope the rate moderates as the portfolio seasons.
"In the third quarter, there was nothing that was non-recurring." — Alfred Rogers (CEO)
Reserve size for unguaranteed loans
Q (Ross Haberman · RLH Investments): He asked what the total allowance or reserve was against the $132 million of unguaranteed loans.
A: They said total ACL on the books at quarter end was just over $41.5 million. They said over $30 million of that ACL is allocated to the unguaranteed portfolio.
"The total ACL on the books at the end of the quarter was just over $41.5 million, and over $30 million of that is against the unguaranteed portfolio, Ross." — Alfred Rogers (CEO)