Oct 23, 2026 earnings call — Loan and deposit growth, dividend and buyback
Management raised the quarterly dividend to $0.12 per share and approved a repurchase program for up to 1.2 million shares through September 2027.
Revenue $0.0B (est $0.0B) · EPS $0.49 (est $0.44)
Key quotes
"We also received final regulatory approval for a new share repurchase program, authorizing the repurchase of up to 1.2 million shares with an aggregate value of up to $24 million, which will run through September 2027."
"Our balance sheet growth continued at a healthy pace, including loans, which were up $50 million during the quarter, and deposits, which increased $43 million during the quarter, leaving us ahead of plan for deposit growth so far this year."
"We did see slightly higher net charge-offs of $1.9 million compared to $1.6 million in the second quarter, and those charge-offs again primarily reflect activity in our Business Express portfolio."
Analyst Q&A 3
deposit funding and margin outlook
Q (Bader Hijleh · Piper Sandler): He asked how deposits will keep funding loan growth and about competition and pricing on deposits.
A: Management said they continue to grow C&I relationship deposits and also compete in retail with CDs and money market promos. They expect deposit pricing pressure to remain but think loan growth and asset repricing can offset it, aiming to maintain a stable margin with some upside.
"I think the short answer, obviously, is we continue to grow in our C&I book." — Patrick Ryan (CEO)
Business Express credit exposure
Q (Parker Wittmann · D.A. Davidson): He asked how large the remaining exposure is in the Business Express portfolio and when net charge-offs and provisions will ease.
A: Management said it is hard to predict but they are seeing a slowdown in new problem loans and improvements in delinquencies. They tightened origination and renewal standards, reported year-to-date charge-offs around $8.5 million with 95% in Business Express, and said if credit cost falls to about 2% or 3% annualized the segment can return to profitability.
"And so I would tell you that anything new that's been originated, which hasn't been much, has been done according to much tighter standards." — Patrick Ryan (CEO)
cost ratio targets and loan yields
Q (David Bishop · Hovde Group): He asked about targets and timing for the operating expense-to-assets ratio into 2027 and longer term, and whether the 15 basis point loan-yield increase is a good baseline going forward.
A: Management said the goal is to get to the 190 during '27, possibly by the middle of '27, and they could return to the 180 longer term if business units scale and costs are reduced. On yields, they said most new loan pricing is in the high 6s to 7s, the quarter's weighted average spread was about 6.90%, and the 15 basis point increase is a reasonable baseline.
"Well, I think the goal throughout '27 is to get to the 190." — Patrick Ryan (CEO)