Oct 13, 2026 earnings call — Strong loan and deposit growth
Loan growth accelerated to 9.7% annualized, with customer deposits up 11.2% annualized this quarter.
Revenue $0.2B (est $0.2B) · EPS $1.21 (est $1.21)
Key quotes
"This quarter's performance was highlighted by strong growth in both loans and deposits, solid profitability and stable credit quality."
"Deposit pricing remained competitive with our cost of deposits increasing 6 basis points and blended rates on new production ended the quarter at approximately 3%."
"Mortgage banking remains an important part of our long term retail strategy although the higher rate environment will likely reduce its earnings in the fourth quarter and 2027."
Analyst Q&A 8
loan growth and utilization
Q (Russell Gunther · Stephens): Analyst asked how utilization trended, where pipelines stand after strong growth, and whether high single-digit loan growth can be sustained or will slow at some rate level.
A: Management said loan growth was high single digits for the year and they expect to end the year in that range. They noted utilization was a few percent below normal on construction and C&I, leaving room to tap new lines, and pipelines remain robust though Q4 may see normal elevated payoffs.
"So our utilization rates were down 2% to 3%." — Michael Mettee
deposit cost trend
Q (Stephen Scouten · Piper Sandler): Analyst asked whether the blended new deposit rate will trend higher after the September rate hike and what recent weeks show about deposit cost direction.
A: Management said deposit costs rose in September versus July and August, reflecting the late-quarter rate increase and some large indexed deposits that pushed costs north of 3% in September. They expect deposit costs to likely stay in this range unless there is another hike sooner than expected.
"deposit costs in September were higher than July and August, but do think that is reflective of the rate increase" — Michael Mettee
asset sensitivity and margin outlook
Q (Will Jones · KBW): Analyst asked if asset sensitivity can offset future funding pressure from higher rates and at what point deposit competition might overcome that offset.
A: Management said roughly each 25 basis point Fed move should lift margin by about 3 basis points, but they moderated sensitivity expectations because fierce deposit competition can limit pass-through. They view margin guidance as net of accretion and noted some one-time items this quarter, but see room to grow relationships even with small margin compression.
"So I mean, roughly for every 25 basis point increase in fed funds, you should see, I would say around a 3 basis point increase in our margin." — Michael Mettee
North Carolina expansion and M&A stance
Q (Brett Rabatin · StoneX Group): Analyst asked about plans for Asheville and growth in North Carolina, and for updated thoughts on M&A likelihood and preferred targets.
A: Management said they converted the Asheville loan production office to a full service location and will build a beachhead there, with more locations to follow over time. On M&A, they said banks are typically sold not bought, but they are ready and would act if the right opportunity appears inside their regional footprint and with similar community bank cultures.
"And if the right thing comes along, then we would act upon that" — Christopher T. Holmes (CEO)
normalized new loan yields
Q (David Bishop · Hovde Group): Analyst asked what a 'perfect world' new production yield would be versus the recent 6.44 figure, and whether metro versus community deposit pricing differs.
A: Management said in a perfect world new loan yields would be 7%-plus, with upper 6s to low 7s being more normal, though competition can push yields lower. They also said deposit growth in metro (notably Nashville) was strong but they try to price fairly across metro and community markets with no material pricing difference by channel.
"Well, in a perfect world, it would be 7%-plus, I guess, if you think about the spread over the 5-year I think, yeah, we see a wide range of competition." — Michael Mettee
nonperforming loan details
Q (Steve Moss · Raymond James): Analyst asked about the size and type of the nonperforming loan(s) and how long they might remain on the books.
A: Management said the one loan they referenced is about $13 million, is adequately collateralized with largely liquid collateral, and they are working with the borrower toward a good outcome. They noted it was unplanned but the collateral gives options for resolution.
"The 1 loan we referenced is about $13 million in size, again, adequately collateralized, liquid collateral, for the most part." — Christopher T. Holmes (CEO)
securities portfolio and deployment plans
Q (Christopher William Marinac · Janney Montgomery Scott): Analyst asked if they would grow the securities portfolio more if loan deployment is limited or competitive pricing worsens.
A: Management said the securities portfolio is about 9% of assets and they have been in a range up to 14%-15% historically, so with large deposit growth they would deploy into floating rate securities as a temporary use of funds. They emphasized focus on relationship-driven balance sheet growth but will use securities tactically when deposit growth outpaces loan opportunities.
"The securities portfolio runs about 9% of total assets." — Michael Mettee
banker hiring and talent pipeline
Q (David Rochester · Cantor): Analyst asked about recent banker hiring, the talent pipeline, and opportunities from upcoming integrations.
A: Management said they hired about 10 bankers this quarter across community and metro markets, including Nashville, and the hiring pipeline is full. They focus on cultural fit and long-term recruitment plus developing early-career talent to build an organic pipeline while continuing selective external hires.
"We had around 10 or so this quarter that is generally the pace we have been going at." — Michael Mettee