Oct 23, 2026 earnings call — Loan growth driven by new banking talent
Net income was about $6 million, or $0.60 per diluted share in Q3, up 88% versus Q3 2025.
Revenue $0.0B (est $0.0B) · EPS $0.60 (est $0.60)
Key quotes
"The new banking talent added over the past several years and increasingly over the past few months, and our healthy economic activity across our markets, fueled strong loan production that was diversified across markets, industries, and loan categories."
"Our NIM increased 5 basis points from the prior quarter to 2.95%. This was primarily due to an increase in yield on average interest-earning assets, partially offset by an increase in cost of funds."
"Trust and investment management fees increased 2.6% from the prior quarter, driven by increases in investment agency, trust, and retirement fees."
Analyst Q&A 4
loan pipeline and mortgage activity
Q (Hannah Wynn · KBW): They asked how loan pipelines look for Q4 and into 2027 and whether another double-digit quarter like 14% is likely. They also asked how mortgage activity will trend if rates keep rising.
A: Management said pipelines are stronger now and credit committees are seeing more upcoming credits than in the first half. They said their forecast for the year of "10%-ish growth" looks on track and a "15% run rate" into 2027 seems reasonable. On mortgages, they said mortgages are a small part of revenue, production is down nationwide but they are outperforming and have cut fixed expenses and added MLOs.
"So pipelines are stronger and continue to be strong." — Scott Wylie (CEO·CHAIR)
deposit rates, beta, borrowings, ROA timing
Q (Matthew Clark · Piper Sandler): They asked for the spot deposit rate at end-September and what beta to assume on interest-bearing deposits if rates rise. They also asked about end-of-quarter borrowings and timing to reach a 1% ROA.
A: David said the spot deposit rate for total deposits was 2.86% at the end of September and described $740 million in index money market accounts that translate to 100% beta and $760 million in standard money market accounts with a 28% beta on the September hike. On borrowings, David said averages should normalize. Scott said they expect to be operating at a 1% ROA during 2027 but would not pin down mid-year versus full-year today, and they can see a path to 1.5% ROA over the medium term under stable market conditions.
"Yes, Matt, the spot deposit rate for total deposits was 2.86% at the end of September." — David Weber (CFO)
drivers of noninterest balances and payoffs
Q (Liam Coohill · Hovde Group): They asked what drove the strong noninterest-bearing balance growth in this rate environment. They also asked how payoffs might trend in a higher-rate environment and whether payoffs are mostly variable-rate loans. They finished asking about the tax benefit and normalized tax rate.
A: Scott said growth came from business-owner focus, a stronger business development effort, an upgraded treasury management team, required relationship deposits on loans, and many senior hires from competitors helping win clients. David said payoffs have no clear trend, "seems to be about $100 million a quarter," may bounce around, and higher rates create opportunities as clients shop banks. Julie said payoff yields were about 6.26% versus origination yields of 6.79%, which helps NIMs. David confirmed the tax benefit was one-time and a 23% effective tax rate is a reasonable normalized estimate.
"The payoff number seems to be about $100 million a quarter." — David Weber (CFO)
loan growth outlook and $10M note
Q (William Dezellem · Tieton Capital Management): They asked if the factors driving loan growth are accelerating and whether quarters with ~20% year-over-year loan growth are possible. They also asked for details on the roughly $10 million redemption of notes.
A: Scott said the "green shoots" are showing up more and create opportunities into 2027, and he prefers mid-teen loan growth rather than targeting 20% to remain selective. David said the $10 million were subordinated Tier 2 notes issued in November 2020 that were eligible for call, and they called the full $10 million, which reduces holding company debt and helps NIM and capital management.
"I think that mid-teen growth is a great place to be." — Scott Wylie (CEO·CHAIR)