Oct 30, 2026 earnings call — Commercial lending-led balance sheet growth and guidance
Net interest income reached a new quarterly high of $54.3 million.
Revenue $0.1B (est $0.1B) · EPS $0.99 (est $1.05)
Key quotes
"Commercial lending continues to lead overall loan growth. Total commercial loans increased 3% from June 30, 2026, more than 10% from September 30, 2025."
"This supported stronger net interest income generation, which reached a new quarterly high of $54.3 million."
"We continue to focus on shifting some public deposits to our reciprocal portfolio, which helps to relieve collateral requirements in the securities portfolio."
Analyst Q&A 2
rate increase and loan growth
Q (Damon DelMonte · KBW): He asked how the September rate increase affected margins and how a December hike would change margins into 2027. He also asked about the loan growth outlook and whether securities balances would rebuild.
A: Management said about 43% of the loan book floats off prime and about 13% is adjustable from the 5-year point. They said monthly margin was about 3.72% at the end of September and they are targeting around 3.75 for the rest of the year; a December hike would have a fairly muted impact on quarterly margin. For loans, they said pipelines are strong, are being actively replenished, and they are optimistic about generating commercial loan growth through year end; securities will seasonally build back with short-term T-bill purchases and they are shifting some public-depositor collateral into reciprocal deposits.
"But as we wrapped up September our monthly margin was about 3.72%." — William Jack Plants (CFO)
deposit drivers and capital use
Q (Manuel Navas · Piper Sandler): He asked how much of the deposit inflow was seasonal public funds versus commercial wins and which deposit initiatives they are pushing. He also asked about targets for operating leverage next year and how buybacks fit into capital allocation.
A: They said year-to-date performance shows strong commercial deposit wins driven by investment in their treasury management platform and by leading with loan originations then bringing deposits. Management said primacy of relationship is a firm-wide focus and sales teams are aligned and incented to pair loans with deposits. For 2027 planning, they are targeting positive operating leverage of 200 to 300 basis points and an efficiency ratio approaching 55%; on buybacks they have purchased a total of 686 thousand shares since the program began and will balance repurchases with growth and other capital needs while shares look undervalued.
"But our target right now is positive operating leverage of 200 to 300 basis points and an efficiency ratio that is approaching 55%." — William Jack Plants (CFO)