Oct 23, 2026 earnings call — Margin expansion and deposit focus
Net interest margin was 3.55%, marking the 10th consecutive quarter of expansion.
Revenue $0.2B (est $0.2B) · EPS $0.65 (est $0.69)
Key quotes
"Our fully taxable equivalent net interest margin was 3.55% for the third quarter, compared to 3.48% during the second quarter and 3.36% during the third quarter of 2025."
"We believe that the continued growth in non-interest-bearing deposits that we saw in the third quarter provides encouraging evidence that our relationship banking efforts are resonating with clients."
"We repurchased approximately 2 million shares in the third quarter, totaling approximately $76 million, and repurchases since the initiation of the program in August 2025 totaled $347 million."
Analyst Q&A 10
deposit outlook for fourth quarter
Q (Andrew Terrell · Stephens): Analyst asked what they see for deposit growth in the fourth quarter and what gives them confidence deposits may inch up. He also asked whether NII can grow over the next 12 months without balance sheet growth or if balance sheet growth is needed.
A: Management said the midpoint of the fourth-quarter guide implies about flat year-over-year after removing branch sale effects and the large deposit. They said core strength is in non-interest-bearing balances, early fourth-quarter seasonality is stronger, and after adjusting for prior branch transactions the bank is already seeing NII expansion and views the deposit profile as stabilized.
"I think as you look to kind of the midpoint of that guide in the fourth quarter, that's generally implying about flat YoY when you back out some of those branch sales and that large deposit." — David Della Camera (CFO)
asset repricing pickup and deposit costs
Q (Matthew Clark · Piper Sandler): Analyst asked how much pickup in spreads to assume given current rates and asked for the spot deposit rate and deposit beta assumptions.
A: Management said the investment portfolio, five years plus, should see roughly a 40-50 basis point pickup. They also said new loan yields were around the mid 6% range and that interest-bearing deposit costs for the full month of September were 151 versus 149 in the quarter, with forward expectations aligned to their disclosures.
"Investment portfolio side, I think about five year plus, we'll call it the 40-50 basis point range is right." — David Della Camera (CFO)
share buyback appetite
Q (Jeff Rulis · D.A. Davidson): Analyst asked about buyback appetite for 2027 given about 10 million shares bought last year and whether roughly 2 million shares per quarter is a reasonable expectation going forward.
A: Management said they take a holistic approach to capital planning and remain comfortable deploying capital, and that they intend to continue deploying capital in the near term while balance sheet growth remains the first and most accretive option. They said there is no specific quarterly target and each quarter's activity will depend on facts and circumstances.
"Balance sheet growth is always going to be the first and most accretive option for capital allocation." — David Della Camera (CFO)
microphone check
Q (Andrew Liesch · StoneX Financial): Analyst simply checked whether the conference could hear him as his mic had been muted.
A: Management did not answer in this turn; the analyst was only checking his microphone before asking his question. The call operator responded in the next exchange and the analyst then proceeded with his question.
loan payoffs pushed to fourth quarter
Q (Andrew Liesch · StoneX Financial): Analyst asked to quantify the loan payoffs that were expected in the third quarter but pushed into the fourth, and wanted to know the starting point for loan balances in Q4. He also asked whether earning assets should start to rise with deposit growth.
A: Management said their year-end guidance was informed by expected payoffs and that some of those payoffs occurred in early October, but they did not give a specific figure and pointed to the midpoint of the loan guide as their best estimate. They said the payoffs come mainly from an out-of-market portfolio they are working through, and that earning assets depend on deposit growth; they have seen two consecutive quarters of non-interest-bearing expansion and intend to grow earning assets.
"Not a specific figure there, but I think the midpoint of the loan guide is a reasonable point, and that's what we think is our best estimate." — David Della Camera (CFO)
deposit guide cut and credit outlook
Q (Kelly Motta · KBW): Analyst asked why the deposit guide was reduced and what is driving that change. She also asked about credit quality, whether there are signs of incremental stress in the higher rate environment, and whether proactive credit work has helped.
A: Management said the guide tweak mostly reflects being closer to year-end and the exit of a large deposit, while underlying core deposits remain strong with consecutive quarters of non-interest-bearing growth. On credit, they said criticized loans are down 18% year-over-year, credit is reviewed consistently, they remain confident in their management of higher-rate impacts, and proactive credit risk management has been helpful.
"We are down in criticized loans 18% YoY." — Jim Reuter (CEO)
earning asset mix and branch economics
Q (Tim Coffey · Brean Capital): Analyst asked if the mix of earning assets could shift back toward loans from securities, and whether the current average deposits per branch of $79 million is the right level given higher rates and higher break-even points.
A: Management said near term they do not expect that mix to shift in the fourth quarter; they expect loans to decline and deposits to be flat to higher in the fourth quarter. On branches, they said break-even depends on branch cost and their footprint has lower-cost branches and a different expense structure, and branch optimization has improved average branch metrics about 10% over 18 months.
"Our loans decline, deposits flat to higher in the fourth quarter." — David Della Camera (CFO)
why push deposit growth; unfunded commitments
Q (Samuel Varga · UBS): Analyst asked why the bank prioritizes deposit growth given a shift toward securities in Q4 and asked for an update on unfunded commitments and pipelines in 3Q.
A: Management said deposit growth is their number one priority because it creates near- and long-term franchise value, and their reported lending balances will be lower in Q4 due to some near-term payoffs. They added they are not using rate promotions, have two consecutive quarters of non-interest-bearing growth, and that unfunded commitments rose in 3Q mainly in construction lines—these were well-priced projects that will fund more and impact 2027.
"I think deposit growth is always going to be our number one priority." — David Della Camera (CFO)
underlying commercial growth and efficiency
Q (Terry McEvoy · Wells Fargo): Analyst asked what underlying loan growth looks like after planned payoffs and whether commercial production is accelerating and can continue into next year. He also asked about remaining efficiency opportunities and whether positive operating leverage is possible without balance sheet growth.
A: Management said they have seen a material year-over-year increase in commercial production and need one more increase for the underlying portfolio to grow; currently the reported book is closer to flat but modestly declining due to several portfolios affecting reported balances. On efficiency, they said they expect continued fixed asset repricing, significant cash flow in the investment portfolio, support from the yield curve, and stability plus modest growth in low-cost deposits to be powerful for NII through 2027, but they did not give a 2027 guide.
"I think as we look YoY, we have seen a material increase in commercial production." — David Della Camera (CFO)
expense base and ability to grow
Q (Jeff Rulis · D.A. Davidson): Analyst asked what the comment that the expense base supports earning asset growth means, whether the bank can hold the line on expenses and grow off current levels, and whether further investment is needed.
A: Management said they will provide 2027 guidance in January but that today they have the RMs, technology, and infrastructure needed to grow the bank without a step-up beyond normal investment. They also said normal inflationary factors and merit increases are reasonable to expect, but there is no significant missing piece of investment outside those normal factors.
"For the growth we want to go get, we have what we need in terms of RMs, technology, infrastructure." — Jim Reuter (CEO)