Oct 27, 2026 earnings call — Record revenue and net interest income
Company reported record revenue of $185 million and record net interest income of $149 million in Q3.
Revenue $0.2B (est $0.2B) · EPS $0.35 (est $0.34)
Key quotes
"We delivered $185 million in revenue, and $149 million in net interest income for the third quarter both records in the company's history."
"We continue to drive strong momentum in our C&I business with $201 million of average C&I loan growth in the third quarter representing 31% year over year growth."
"We recently held the official grand opening of our second financial center in Columbus, and we expect our third and fourth financial centers to open by the end of the year."
Analyst Q&A 8
Margin drivers and growth strategy
Q (Jeff Rulis · D. A. Davidson): He asked if borrowing would lighten in Q4 as core deposit growth comes in and wanted a walk-through of margin puts and takes into next year. He also asked whether the bank will favor acquisitions or de novos into 2027.
A: Management said the recent rate hike and the sub debt payoff should help margin, and they expect NIM around 3.73% given those items. They said deposit growth could allow them to reduce other borrowings in Q4. On growth strategy, they will act on highly accretive acquisitions but are focused inwardly on launching and measuring de novo branches in Columbus, with all 5 branches opened by end of Q1 2027.
"Additionally, we will get the benefit of the sub debt payoff." — Douglas Schosser (CFO)
Fee income outlook and expenses
Q (Daniel Tamayo · Raymond James): He asked for clarity on fee income guidance for Q4 and what a reasonable run-rate or annual growth should look like. He also asked whether expense levels around 4.25% (about $109 million) are a reasonable run rate and if the bank can produce positive operating leverage next year.
A: Management broke fee income into parts: service charges depend on customer behavior and are fairly stable, trust is largely annuitized, and other noninterest income is more volatile. They said the trend implies about $7 million to $8 million of the volatile components per quarter and highlighted wealth and SBA as fee drivers. On expenses, they expect continued investment-driven drift, some volatility from commissions in wealth, and they target 200 basis points of positive operating leverage on an annual basis.
"But, again, if you look at our trend, you would definitely be in the, $7 million to $8 million range as sort of quarterly expectation." — Douglas Schosser (CFO)
Credit outlook and deposit competition
Q (Brian Foran · Truist): He asked whether the fourth-quarter provision/losses look likely to push full-year credit costs to the low end of guidance. He also asked how worried the bank should be about deposit competition driving higher deposit costs in 2027.
A: Management said they expect to be at the low end of the loss range for the year but remain conservative because fourth-quarter events can change outcomes. They said deposits are always competitive but the bank has a loyal, granular deposit base and markets with less competition, and they can accept a basis point or two of higher deposit costs to win growth when needed. They will report Columbus branch performance after at least one branch has a full year.
"So we wanted to suggest that we are gonna be at the low end of the range." — Douglas Schosser (CFO)
Origination yields and loan pipeline
Q (David Bishop · Truist): He asked what average origination yields looked like this quarter versus last quarter and whether the loan pipeline is showing any fallouts from higher rates, especially for CRE and construction.
A: Management said originations were pretty similar quarter over quarter, with mix differences affecting yields and some competitive pressure on price. They suggested low- to mid-6s for new origination yields is a reasonable range depending on mix. They also said pipelines have held up well, CRE payoffs remain high but the CRE portfolio is nearing an inflection with stabilization likely within the next one to two quarters.
"Yeah, we are obviously targeting a bit of a higher level overall, but I think if you go with low- to mid-6s, that is reasonable." — Douglas Schosser (CFO)
Loan demand and NIM sensitivity
Q (Emily Noelle Lee · KBW): She asked which loan categories and geographies show the most strength, which national verticals are most promising, and how much a 25 basis point rate hike would move NII or NIM.
A: Management said growth is broad-based across national verticals with franchise showing strong percentage growth off a small base, and regional CRE beginning to stabilize. They said asset sensitivity generally would add a couple of basis points to NIM but with a lag because deposit pricing follows later. They added the September rate rise will influence Q4, but a hike late in the fourth quarter would not materially affect Q4 margin.
"I would tell you that generally speaking, I think the asset sensitivity is gonna add a couple of base points to NIM, but it is delayed, and it also tends to be driven a lot by, deposit pricing as well." — Douglas Schosser (CFO)
C&I growth and deposit details
Q (Matthew Breese · Stephens Incorporated): He asked how sustainable the strong C&I growth is into 2027 and whether stabilizing CRE would change overall loan growth guidance. He also asked for spot deposit costs at period end and how management thinks about deposit betas.
A: Management said they prefer balanced growth and would slow indirect lending to allow commercial growth when appropriate, keeping overall asset growth aligned with deposit growth. They declined to provide spot deposit cost detail and said they have not provided that level of detail on deposit pricing or detailed deposit betas. They noted growth mix choices rather than an expectation of repeating very high percentage growth in commercial every year.
"We have not provided that level of detail on deposit pricing." — Douglas Schosser (CFO)
NIM drivers, ops improvements, commercial deposits
Q (Manuel Navas · Piper Sandler): He asked why fourth-quarter NIM lift is modest, what the new CIO is doing to optimize operations, and whether treasury management fees are included in service charges plus update on commercial deposit gathering.
A: Management said purchase accounting is a wildcard for NIM and they view 3.73% as a reasonable fourth-quarter expectation after the sub debt payoff and recent rate rise. They said the new CIO is evaluating legacy systems and processes to find tech and workflow improvements that should drive cost saves, reduce friction, and improve customer experience, with some investments planned in 2027. They confirmed treasury management fee income is included in service charges, have seen growth there, and expect a lag as commercial loans convert into deposit relationships.
"So, yes, the treasury management fee income would be part of that overall service charges, and we have seen some nice growth in there." — Douglas Schosser (CFO)
Capital returns and buybacks
Q (Daniel Tamayo · Raymond James): He asked whether the bank is now closer to using buybacks after the sub debt redemption and if there is a total return or payout target they are aiming for.
A: Management said they are closer to considering buybacks but are unlikely to act in Q4, wanting clarity on capital rules before making big commitments. They noted they currently return over 50% of earnings via dividends and prefer to lower that payout ratio by growing the firm; they are working with the board and have a $50 million authorization available as a potential buyback lever.
"I think now that we have our capital pretty well established, again, I really like to understand where capital rules are going to go before we start making big commitments there." — Douglas Schosser (CFO)