Oct 20, 2026 earnings call — One Florida acquisition and balance-sheet growth
Closed acquisition of One Florida on August 1st; adjusted net income was $134 million ($1.66 per share).
Revenue $0.4B (est $0.4B) · EPS $1.66 (est $1.66)
Key quotes
"We were also pleased to welcome new colleagues and clients through the transaction with One Florida Bank, which closed on August 1st."
"Excluding loans acquired from One Florida, loan growth met expectations at 4% annualized and continued to be funded by growth in core deposits."
"We did repurchase 1 million shares in the third quarter and have another 1 million shares remaining in this year's authority."
Analyst Q&A 8
margin sensitivity to rate changes
Q (Michael Rose · Raymond James): He asked how deposit costs and other factors affect margin. He also asked how loan demand and production would change if rates rise more than modeled.
A: Management said they assume a 25 basis point Fed hike in December so Q4 impact would be minimal. They are asset sensitive and expect modest NIM expansion of 3, 4, 5 basis points driven by organic balance sheet growth, successful promotional deposit programs, and reinvesting bond cash flows. They said loan production could slow in some categories with higher rates, but net benefit from asset sensitivity and new bankers (including One Florida) should outweigh headwinds; client sentiment is cautiously optimistic.
"For us, a modest NIM expansion is probably somewhere between 3, 4, 5 basis points, and then NII growing accordingly." — Mike Achary (CFO)
checking account mix and growth
Q (Ben Gerlinger · Citi): He asked how DDA (checking) mix will evolve after OFB and how that compares to growth in North Florida. He also asked if new hires will focus on deposits or be multi-tasking.
A: They said DDA mix fell partly due to One Florida's lower NIBs and seasonal factors and some customers moved into money market accounts. They expect much of the DDAs lost in Q3 to return in Q4 and are adding treasury and deposit-only roles while continuing to add bankers who drive both loans and deposits. New bankers have driven a large share of loan growth and a smaller but meaningful share of deposit growth this year.
"So we would expect a fair amount of the DDAs that we lost in the third quarter to come back to us in the fourth quarter." — Mike Achary (CFO)
building consistent banker culture
Q (Will Jones · KBW): He asked how the bank creates consistency among legacy bankers, not just new hires. He also asked about deposit promotion results and why tangible book value fell more than expected.
A: They said consistency comes from disciplined hiring, de-risking, adding dependable markets, and a One Bank Concept where teams prospect and serve clients together. They said promotional programs started late Q2 and then ran through Q3, which helped growth but raised deposit costs as they build liquidity for loan growth. On tangible book, the bigger inputs were the cash price for OFB, buybacks, and the OCI impact.
"Around the bank, there is a coined phrase called the One Bank Concept. That One Bank Concept is the collegial operating agreements and then the practice of having that collegial operating style across all of our lines of business and credit." — John Hairston (CEO)
banker hiring and future deposit costs
Q (Brett Rabatin · StoneX Group): He asked why net new bankers fell to 38 and whether the next hires will be deposit-focused. He also asked if cost of funds will keep rising and whether betas might pick up in 2027.
A: They said the quarter-end count was 38 but the current count is 42 and they expect to finish the year around 50 net new bankers, excluding 20 added with One Florida. They said deposit costs rose 12 basis points quarter-over-quarter and they expect a similar increase in Q4 as promotional programs continue; their beta expectations are in the deck and they expect to hit or come close to them.
"But our expectation is that we still wrap the year at around 50." — John Hairston (CEO)
energy exposure and treasury integration
Q (Jon Rau · Barclays): He asked if the bank's stance on energy loans has changed and if customer demand in that segment has shifted. He also asked how One Florida's treasury platform is integrating.
A: They said they exited RBL and midstream services years ago and now the total energy concentration is well below 1% and will stay below 1%. For Q4 they expect growth from commercial real estate, C&D, healthcare, and C&I. On treasury, One Florida had a strong treasury function; the vendor is different but philosophy is similar, and they adopted One Florida's HOA banking facility to expand across the footprint.
"That total concentration is well below 1%, and it'll stay below 1%." — John Hairston (CEO)
local project growth and M&A plans
Q (Feddie Strickland · Hovde Group): He asked whether the bank must change its growth approach in Mississippi and Louisiana because of new manufacturing and data center projects. He also asked about M&A appetite after closing One Florida.
A: They said the build-out in those markets is a game changer and organic growth in Mississippi and Louisiana has ticked up, with more deposit impact now and potential loan opportunities later as projects mature. They said they remain focused on organic balance sheet growth, are completing the One Florida conversion, and will consider M&A opportunistically rather than actively pursuing deals right now.
"I think we're seeing organic growth rates in Mississippi and Louisiana that clearly have ticked upward a good bit." — John Hairston (CEO)
buybacks and capital targets
Q (Gary Tenner · D.A. Davidson): He asked if the timeline to restore TCE changed excluding AOCI and when they'd resume buybacks, mentioning a 9% TCE threshold.
A: They said nothing has changed and the intent was to use the buyback authority in the second half; they bought back 1 million shares in Q3 and planned to do so again in Q4. They said they prefer not to let TCE fall below 8%, Common Equity Tier 1 is 11.53 and their comfort zone there is about 12 to 12.5%, and they expect to grow TCE 25, 30 basis points excluding buybacks.
"All things equal, the preference would be not to let that go below 8%." — Mike Achary (CFO)
syndicated loan share and hedges
Q (Stephen Scouten · Piper Sandler): He asked if the SNC (syndicated) loan percent including OFB could be used to add organic growth. He also asked about changes to the hedging strategy and recent cash flow hedges.
A: They said SNC fell to about 8.6% mainly because One Florida increased the denominator and that is a modest tailwind, but they will not chase syndicated loans just to use the room; they will pick credits that match yield and risk appetite. On hedging, they use cash flow and fair value hedges to manage asset sensitivity and added a couple hundred million of hedges to right-size per policy.
"It is down to about 8.6%, I think, for the end of the quarter." — John Hairston (CEO)