Oct 28, 2026 earnings call — CIBC Caribbean acquisition progress and Q3 results
Net income was $61 million, $1.50 per share, and closing of CIBC Caribbean expected in the first half of 27.
Revenue $0.2B (est $0.2B) · EPS $1.58 (est $1.49)
Key quotes
"The transaction remains on track with regulatory approvals financing activities and integration planning progressing as expected."
"Deposits remained elevated at the quarter end but we have received notice prior to quarter end that approximately $500 million worth of deposits would exit within weeks."
"We continue to expect quarterly core non interest expenses to be in the range of $93 million to $95 million until we close the CIBC Caribbean transaction."
Analyst Q&A 3
Interest income outlook with deposit outflows
Q (Timothy Switzer · KBW): The analyst asked how recent rate hikes have affected NIM across the U.S. and other jurisdictions and what the outlook is going forward. He also asked the NII impact of deposits moving off the balance sheet and whether to use the normalized NIM to estimate that impact.
A: Management said NIM has been slow to move and is pulling through with a 50% overall beta. They expect NIM to be relatively flat in the short term, as deposit outflows are offset by asset repricing in investments and short-term cash and some modest rise in deposit costs. They said NII should be relatively flat in the short term with a positive bias into the medium term.
"So in the short term, we expect NIM to be relatively flat." — Michael L. Schrum (CFO)
Deal balance sheet actions and expense run rate
Q (Evan · Raymond James): The analyst asked whether the deal will lead to balance sheet optimization, such as repositioning loans or securities, and whether any CIBC Caribbean businesses will be grown or run off. He also asked if the high $90 million per quarter expense level is a reasonable core run rate and whether Halifax relocation still offers savings.
A: They said the CIBC Caribbean investment portfolio is mainly US treasury, short and curated, and they are reviewing some sovereign securities in Bahamas and Barbados and may restructure before closing to avoid adding credit risk. Management said the acquired credit book largely aligns with their underwriting and is well performing. On expenses they said this quarter was high due to nonrecurring items but they are confident they can get to a $93 million to $95 million run rate, and noted they almost have 300 people in Halifax while still looking for further opportunities.
"we still believe confident that we can get to a $93 million to $95 million." — Michael L. Schrum (CFO)
Deposit outflows, loan yields, and growth
Q (Robert Rutschow · Wells Fargo): The analyst asked if most deposit outflows will come from cash and whether the bank will keep the same balance sheet size. He also asked about the decline in loan yields and whether yields should bounce back, and whether the bank will lean into faster GDP growth in some acquired islands to drive synergies.
A: They said the balance sheet will be smaller by $500 million and that the outflows will come out of cash first. They noted they have $3.8 billion cash in short term securities, that the outflows were expected and were modeled, and that deposits should come into a range of $12 billion to $12.5 billion. On loan yields they said many ARMs are resetting to floating which has lowered loan yield, loans are generally stable, and on the deal they see opportunities to take retail market share and grow with GDP over the medium to long term.
"The balance sheet will be smaller by $500 million We have a lot of cash." — Michael L. Schrum (CFO)