Oct 27, 2026 earnings call — Deposit growth, margin expansion, home equity growth
Company reported record total revenue of $68.7 million for the quarter.
Revenue $0.1B (est $0.1B) · EPS $1.34 (est $1.34)
Key quotes
"On the funding side, seasonal deposit inflows, strong customer retention, and new customer relationships supported deposit growth and improved our funding mixture in the third quarter."
"Reported net interest margin rose 15 basis points from the second quarter to 3.41%, exceeding our guidance range provided on our last call."
"Home equity remains a notable growth driver, up 7% during the quarter and 25% year over year, reaching a high of $392 million, while residential real estate grew modestly."
Analyst Q&A 3
deposit growth, margin, loan outlook
Q (Jed Strickland · Hovde Group): He asked how much of the strong deposit growth was seasonal versus likely to stick from new customers or residential accounts. He also asked whether the bank can defend roughly 340 NIM into 2027 if rates rise, and if commercial loan growth can return in Q4 or if maturities will cause declines.
A: Management said seasonal deposit move is about 1%-2% but they also saw new customer acquisition and inflows from larger customers, and their high-yield savings product helped drive growth. They said they are positioned to see continued margin expansion into 2027 though pending rate hikes could slow the pace and quarter-to-quarter results may be choppy. On loans they expect modest commercial growth in Q4, cited a $127 million commercial pipeline, two new hires in Massachusetts, and said residential is strong.
"I would say, we generally see neighborhood of 1%-2%, just overall deposit growth, just in terms of seasonality." — Mike Archer (CFO)
commercial hires and deposit deployment
Q (Steve Moss · Raymond James): He asked what types of commercial lenders were hired and what books they might bring. He also asked how the recent deposit cash will be deployed, and for updates on securities and loan cash flows and on new-loan pricing.
A: Simon said they added hires in Massachusetts and are building teams in Southern New Hampshire and Southern Maine, and that these hires are being self-funded through efficiency gains. Mike said a large customer parked deposits near quarter end, the funding base is optimized, and near term they will fund loans or put money into shorter-term investments. He said the securities portfolio cash flow is about $30 million-$40 million per quarter (around a $35 million midpoint), loan cash flows are about $200 million-$250 million per quarter, and portfolio origination was "right around 6.30%-ish" with near-term new-loan rates around "6.25%, 6.50."
"So our securities portfolio, up or down, we're pretty kind of in that $30 million-$40 million range per quarter on the investment book." — Mike Archer (CFO)
loan payoffs, home equity, provision change
Q (Damon DelMonte · KBW): He asked to confirm targeted payoffs caused flat end-of-period loan balances and whether home equity pipelines remain favorable into year end and 2027. He also asked why the provision was higher than expected given flat loan growth.
A: Simon confirmed a couple of targeted payoffs made sense and left loans flattish, and said they expect low single-digit loan growth through 2027. He said home equity is a strong contributor—up 7% in the quarter, 25% year over year, with a balance of $392 million—and they see good momentum heading into next year. Mike said the higher provision was driven by being up a basis point on the ACL-to-loans ratio (about a half million) and by setting aside some unfunded reserves tied to home equity pipelines; he said they feel comfortable at 92 basis points.
"I would say just I think one of the drivers is we're just up a basis point on our ACL to loans ratio." — Mike Archer (CFO)