Oct 27, 2026 earnings call — Record earnings and Presence integration
Company reported net income of $11.8 million for the quarter, driven by higher net interest income of $28 million.
Revenue $0.0B (est $0.0B) · EPS $1.08 (est $0.94)
Key quotes
"With the completion of the Presence Bancshares integration, we continue to explore ways to work smarter across all locations and functions."
"We delivered record earnings while continuing to execute on our strategic priorities."
"In the third quarter, 1 of the businesses held by this borrower were purchased by a new entity. As a result, we received past due interest and related fees that we did not expect to collect."
Analyst Q&A 2
Bankruptcy impact, loan status, fee income
Q (Matthew Breese · Stephens): He asked how much of the $28 million and the 11 basis points of NIM increase came from the bankruptcy settlement, and asked about expectations for 4Q 2026 NIM and beyond. He also asked about the status of the remaining $7 million tied to the borrower and about sustainability of higher fee income.
A: Management said about $400 thousand of the NIM was related to the bankruptcy settlement and noted some debt financing and fees crossed the quarter. They put the remaining loans on nonaccrual, said they are real estate secured with loan-to-values that are okay, and do not foresee a large loss. They also said increasing fee income has been a long-term strategy and they view the level as sustainable.
"There was about $400 thousand in the NIM related to that." — John Martin McCaffery Jr. (CFO)
Loan growth, competition, M&A, tax rate
Q (Daniel Cardenas · Brean Capital): He asked for color on loan growth, including impact from paydowns and the Q4 pipeline. He also asked whether competition has become irrational, for thoughts on M&A activity, and what the tax rate should be going forward.
A: They said more paydowns and payoffs than expected softened loan growth, but loan growth itself was good and the pipeline into Q4 is strong; most loans repricing are moving up and payoffs sometimes include prepayment fees. They described competition as generally rational on deposit and loan pricing, with larger deals possibly more aggressive, and said the recent merger is largely digested and the M&A environment is active but not prompting many sellers. On tax rate, they said it has been a bit higher due to nondeductible merger items and indicated a rate around 21.5% to 22.0%.
"But I think in that 21.5% to 22.0% is probably a good place for us to be on tax rate." — John Martin McCaffery Jr. (CFO)