Oct 23, 2026 earnings call — Record deposits, loans and AI progress
Deposits reached a record $22.6 billion, up 11% year over year.
Revenue $0.2B (est $0.2B) · EPS $2.27 (est $2.14)
Key quotes
"The cycle time for this process is down 95%."
"Those 2 verticals now represent more than 30% of cubiX deposit balances."
"The teams we have recruited since 2023 now hold $4.3 billion in deposits or 19% of our total deposit base. They added roughly $415 million in the third quarter alone, and more than $1 billion so far this year."
Analyst Q&A 8
Commercial loan demand and expense guidance
Q (Janet Lee · TD Cowen): The analyst asked how commercial borrower demand has changed after recent rate moves and whether the loan growth pipeline is sustainable. They also asked about the expected quarterly expense base and the exit rate into 2027.
A: Management said loan demand remains strong across the franchise and industry. Most loan growth occurred in September, which sets them up well for fourth quarter average balances. They will give expense guidance for 2027 and other material metrics on the fourth quarter call in January.
"Hi. Good morning. Noah, so first of all, I think, you know, loan demand continues to you know, remain strong at the franchise and, frankly, in the industry as a whole." — Samvir S. Sidhu (CEO)
NIM outlook and Palantir partnership
Q (JPMorgan): The analyst asked for a finer point on where fourth quarter NIM may land and the drivers, and how NIM might trend into 2027. They also asked whether the Palantir partnership is limited to account onboarding or could replace the bank's core.
A: Management said they do not give specific margin guidance but tightened their range and pointed to NII guidance you can use to infer margin. They noted third-quarter new loan yields came in at about 6.83 and said Palantir is working with them on complex commercial deposit account opening and data work; they are not trying to reinvent the world or replace the core.
"Yeah. You know, we do not give specific guidance on margin, but we did, obviously, tighten our range, you know, which you can impute from that, you know, where we expect NII to be for the fourth quarter." — Mark R. McCollom (CFO)
Cubix deposit mix, cross-border and efficiency
Q (Steve Moss · Raymond James): The analyst asked where Cubix balances sit now, how much of deposit growth came from title, and how to think about Cubix and cross-border correspondent banking. They also asked if efficiency ratio could move lower in 2027.
A: Management said Cubix has become more diversified and title contributed about $150 million on a spot basis; total non DA Cubix balances are about $1.4 billion and they had a $1.5 billion goal by year end. They described cross-border as leveraging their 24/7 money-movement network and technology to expand money movement. On efficiency, they said stay tuned for fourth-quarter guidance, but they are focused on moving toward a low-forties target while continuing technology investments.
"Total sort of non DA cubic balances are about $1.4 billion." — Samvir S. Sidhu (CEO)
Deposit costs, betas and AI effects
Q (Brian Wilczynski · Morgan Stanley): The analyst asked about the average cost of deposits among commercial teams and Cubix, and how deposit betas may play out in a rising rate environment. They also asked if AI investments could accelerate team ramp timelines and boost deposit growth.
A: Management said deposit beta in the first 30 days since the September rate hike has been about 33%, versus around 60% in the last upcycle, and that deposit cost from their teams is generally in the low twos range. They said AI work—especially reducing complex deposit account opening from days to minutes—should improve customer experience and could support and accelerate commercial deposit growth.
"So far, you know, from the first 30 days since the September rate hike, our deposit beta has been about 33%." — Mark R. McCollom (CFO)
Digital asset deposits and competition
Q (Peter Winter · D.A. Davidson): The analyst asked if larger clients are moving digital asset balances to other rails now that other banks and exchanges offer 24/7 settlement, and whether that could force the bank to start paying interest on formerly zero-cost deposits. They also asked if lifting the consent order changes how much digital assets the bank will hold or lend against, and where the digital deposits were this quarter.
A: Management said there has been no material change in customer activity from perceived competition and emphasized the large network effect of their 24/7 network, which remains non interest bearing. On the consent order being lifted, they said they are pleased but the regulatory agreements remain essentially the same and it does not change their day-to-day operations; they view risk management as a growing strength.
"There is really no, material change, you know, in our customer activity as a result of perceived, what I would describe as perceived competition." — Samvir S. Sidhu (CEO)
Digital asset totals and Cubix deposit costs
Q (Matthew Breese · Stephens): The analyst asked how much the digital asset deposit balance was this quarter. They then asked whether Cubix deposits are non-interest-bearing or if there are earnings credit rates, waived fees, or other expense items tied to that deposit base.
A: Management stated the digital asset deposit balance was about $3.1 billion. On Cubix deposits, they said the majority are non-interest-bearing — they clarified that about 70% of the title deposits are non-interest-bearing and only a very small portion, in the tens of millions, carry some expense; overall most are truly non-interest-bearing.
"Mean, they are they are predominantly, you know, 100% on interest bearing." — Samvir S. Sidhu (CEO)
Credit, Q4 expense items, AI partnerships
Q (Kelly Motta · KBW): The analyst asked if there are any incremental credit risks or early signs of borrower stress in the higher-rate environment and how borrower behavior is changing. They also asked if there are year-end housekeeping items that affect the Q4 expense step-up and how the Palantir partnership differs from work with OpenAI and whether AI could replace the core.
A: Management said credit was strong and steady this quarter, but they are watching the portfolio and note some rate resets next year could require restructurings for some borrowers. For Q4 expenses, they said the step-up reflects items that were low in Q3, expected normalization, additional incentive compensation, and continued tech investment. On AI, they said Palantir is focused on deposit onboarding and data ontology while OpenAI is used heavily on loans; the bank is focused on building end-to-end automated workflows and using AI tools to assist workflows rather than reinventing core software.
"Boring is always better when talking about the credit story for, you know, our company and the industry." — Mark R. McCollom (CFO)
NIM dynamics and hiring pipeline
Q (Manuel Navas · Piper Sandler): The analyst asked about new loan yields and the marginal cost of deposits and whether the September NIM of 3.25% should be seen as a floor for fourth quarter. They also asked about the new hires' backgrounds and which segments the hires are most focused on, and broader thoughts on next-year targets.
A: Management said loan origination yields in the quarter were about 6.83 and cost of deposits was $2.50, and they shared that the spot cost on deposits at September 30 was $2.47; they did not give a specific floor for the September NIM. On hiring, they said the new hires are broad across sectors with 50-plus new team members and about 60 revenue producers this year across 12 teams, and they have a strong hiring pipeline for 2027; formal guidance on 2027 will be given on the January call.
"Know, I will tell you that our spot balance on deposits, which as a CFO, I do not place as much emphasis on as the average balance, but our spot balance at September 30 was $2.47." — Mark R. McCollom (CFO)