Oct 29, 2026 earnings call — Core conversion completed and record revenue
Total operating revenues of $238 million marked another record quarter.
Revenue $0.2B (est $0.2B) · EPS $0.65 (est $0.61)
Key quotes
"Their planning, collaboration, effort, and focus on the customer experience resulted in a very successful conversion."
"We funded approximately $550 million of commercial loans during the quarter, and our pipeline remains over $3 billion."
"As Tony noted, our adjusted net income for the third quarter was $84 million, or $0.65 per share, which increased 17.5% versus the third quarter of 2025."
Analyst Q&A 5
deposit and loan growth
Q (Feddie Strickland · Hovde): Can deposit growth, especially non-interest-bearing balances, continue with higher rates? Also asked if loan growth will tick up and whether pay-downs are slowing, plus accretion outlook.
A: Management said they expect deposits to continue to grow, though acquisition costs may rise with market rates. Non-interest-bearing demand grew 5% this quarter and they expect some expansion but outcome depends on rates. They feel confident in the commercial loan pipeline and expect about 6% loan growth, and Adriano projects accretion to "tick down" to around 60-62 for the next 12 months.
"Well, our expectation that deposits will continue to grow." — Tony Labozzetta (CEO)
purchase accounting and core conversion
Q (Tim Switzer · KBW): What is the expected purchase accounting impact going forward? Also asked what immediate benefits the core conversion produced and near-term opportunities. Finally asked how NIM should behave with further hikes.
A: Adriano said purchase accounting for securities and loans should be between $60 million and $62 million for the next 12 months, about $15 million a quarter. Tony said the core conversion was executed very well and improved data capabilities and an internal AI agent called B, which should increase efficiencies and decision making. Adriano said the balance sheet is mostly neutral to rate moves and a 25 basis point hike may create one to two basis points of compression, but they have strategies to sustain a stable margin.
"For securities and loans, we anticipate somewhere between $60 million and $62 million for the next 12 months." — Adriano Duarte (CFO)
expense growth and repricing
Q (Steve Moss · Raymond James): How should we think about expense growth cadence for 2027 and the investments you are making? Also asked whether back-book loan and security repricing will lift cash flows in 2027, and whether higher C&I mix affects reserve ratios.
A: Adriano said on a core basis they expect to finish the year right around $474 million in total expenses and project growth between 3.5% and 3.75% into 2027. For repricing, they expect about $3.3 billion in loans to reprice over the next 12 months moving from about 5.75% to 6.5% or higher, and about $350 million of securities repricing. On credit, they said the pool reserve has been stable around 90 basis points, some increases were one-off reserves, and they do not see broad issues today.
"On a core basis, Steve, we expect to finish out the year right around $474 million in total and probably a growth between 3.5% and 3.75% off of that into 2027." — Adriano Duarte (CFO)
loan growth, fees, and buybacks
Q (Manuel Navas · Piper Sandler): Is the current loan pipeline a sustainable run rate into next year and what are opportunities for loan growth? Also asked for details on the fourth-quarter fee guide and an update on opportunistic share buybacks and pace.
A: Tony said yes, they project 5%-6% loan growth next year based on capacity and producers, and they will not relax credit standards. Adriano said wealth and insurance fees should grow, bank fee income should pick up in Q4 after conversion-related overlaps, strong SBA loan sales are coming, and BOLI was about $3.5 million higher than typical in Q3. On buybacks, Adriano said their threshold is about the $22 mark, they buy when the stock dips below that, and they have purchased about 370,000 shares.
"Right now, the threshold is about that $22 mark." — Adriano Duarte (CFO)
loan-to-deposit and M&A activity
Q (Matthew Breese · Stephens): What were municipal deposits at period end and what is the all-in incremental cost of deposits now versus a quarter ago? Also asked whether reaching a 97% loan-to-deposit ratio requires higher-cost deposit growth or loan growth, and how active M&A conversations are.
A: Adriano said the all-in incremental cost of deposits is about 3.25 today and a quarter ago it was around the 285-295 range, and municipal deposits are right around $3.6 billion. Tony said the 97% loan-to-deposit range is a target for operating the business and they intend to grow loans funded by multiple core deposit initiatives; hitting 97% requires growing all deposit verticals. On M&A, Tony said conversations are always happening, they have optionality, are not forced to do deals, and the primary focus remains organic growth.
"The all-in is about 3.25, Matthew, where probably a quarter ago, we were around 285-295 range." — Adriano Duarte (CFO)