Oct 22, 2026 earnings call — Merger-driven growth and March conversion
Reported diluted EPS $2.40 and adjusted EPS $2.69; loans grew $1.7 billion linked quarter.
Revenue $1.3B (est $1.3B) · EPS $2.69 (est $2.62)
Key quotes
"We added 96 experienced revenue producers this quarter, 222 year to date, and October is running strong enough that we expect to clear the top end of our original 225-250 target."
"Lastly, integration remains on schedule for operational and brand conversion in March 2027."
"Net charge-offs were $50 million, or 23 basis points for the quarter, consistent with expectations and within our full-year range."
Analyst Q&A 14
NIM drivers and liquidity plan
Q (Casey Haire · Autonomous): Asked about the Category IV liquidity build impact and whether the $3 billion implies a 3–5 basis point cost, and asked how long the fixed-rate asset repricing tailwind lasts and its size.
A: Management said their liquidity plans remain unchanged and each $1 billion of debt issuance moves funding cost by a couple basis points. They said fixed-rate asset repricing will continue through 2027 into 2028 and should help as marked loans mature and reprice at higher yields.
"The fixed rate asset repricing will continue through 2027 and into 2028." — Jamie Gregory (CFO)
Quarterly margin drivers and deposit/loan pricing
Q (John Pancari · Evercore): Asked why the top end of the 2026 margin guide was nudged down and what they're seeing on deposit pricing competition and loan pricing trends.
A: They expect PAA and loan fees to reverse in Q4, giving a tailwind, and see a small Q4 margin expansion despite HQLA growth headwinds. Management also said frontline bankers show pricing discipline: new loan production yielded about 6.5% and new deposits about 2.7%.
"Our base case for the fourth quarter is that the margin slightly expands for the fourth quarter compared to the third quarter." — Jamie Gregory (CFO)
Incremental margin and leadership retention
Q (Ebrahim Poonawala · BofA): Asked how to think about incremental blended margin on growth and raised concern about legacy leadership departures causing banker attrition 12–18 months out.
A: They said incremental growth margin stays around the 330 basis point context and growth could be a slight headwind, about one basis point for 10% growth. Management pushed back on the attrition concern, noting Rob McCabe will stay and saying they have 95% revenue producer retention and many hires are bringing clients.
"We have 95% retention of our revenue producers, which is below what we've done in previous years." — Kevin Blair (CEO)
Fee synergies and BHG credit outlook
Q (Jared Shaw · Barclays): Asked whether fee synergies accelerate after conversion and whether BHG charge-offs will stay in a similar range as rates rise.
A: They said core fees and wealth are up, revenue synergies are about $20 million year-to-date and should ramp after the March conversion when all are on one platform; they remain committed to over $100 million of revenue synergies. On BHG, they said charge-offs and delinquencies are declining, underwriting and borrower quality are strong, and the company chose tighter pricing to protect credit.
"As you know, we have committed to over $100 million in revenue synergies." — Kevin Blair (CEO)
BHG growth drivers and reserve build
Q (John McDonald · Truist): Asked what drove BHG's higher production and how they view optionality around the business; also asked how to think about reserve ratios and adding for growth.
A: They said BHG's pricing and third-party pipelines are driving production and the partnership is strong; they view quarters like this as making BHG more attractive and will remain supportive. On reserves, management said the reserve build was driven by the economy and growth, with a current weighting toward below-consensus scenarios; if the outlook improves the allowance-to-loan ratio should decline.
"If you look at the reserve build this quarter, it is all the economy and it is all because of growth." — Jamie Gregory (CFO)
Buybacks timing and liquidity build changes
Q (Ryan Kenny · Morgan Stanley): Asked when buybacks might restart and whether regulatory changes could change the pace of the liquidity (HQLA/debt) build.
A: Their priority is reaching a 10.25% CET1; they expect to keep accreting capital in the next quarters and will consider buybacks only if they have excess capital after prioritizing client growth. They said regulatory threshold changes could alter timing but have not changed near-term plans to build liquidity.
"Our priority right now is getting to that 10.25% CET1." — Jamie Gregory (CFO)
Hiring focus and credit concerns
Q (Michael Rose · Raymond James): Asked which areas or geographies they are focused on for hires and whether there are credit concerns if rates rise.
A: They said they recruit leaders who bring teams and aim to add density across their 60 MSAs rather than target specific geographies; pipelines are robust and they expect to exceed hiring targets. On credit, they said they are not seeing major issues, have looked into higher-risk areas, use cash-flow monitoring, and feel good about the portfolio's quality.
"We have a lot of opportunity to add density in the 60 MSAs that we serve today." — Kevin Blair (CEO)
Cash level and BHG profit sustainability
Q (Timur Braziler · UBS): Asked why cash and FHLB balances stayed high into Q3 and how wholesale funding and broker deposits factor into Q4; also asked if BHG's on-balance revenue is sustainable.
A: They said cash averaged about $5 billion in Q3 and they expect that level to continue into Q4, noting they plan for broker growth and core deposit seasonality to provide funding flexibility. They also said BHG investment income should continue at a similar level into the fourth quarter.
"I would expect to see that level, not necessarily what you have seen at some of the quarter ends, but around $5 billion in cash for the rest of this year." — Jamie Gregory (CFO)
Capital metrics and normalized charge-offs
Q (Chris McGratty · KBW): Asked how important tangible common equity (TCE) is to them and what a normalized charge-off level looks like for the combined company.
A: They said TCE is watched because others watch it but they focus more on CET1 including AOCI as the key metric for B3 Fed proposals and manage to that. On charge-offs, management said a 20-25 basis point range is a reasonable operating level for the foreseeable future in the current benign credit environment.
"I don't know what normal is, Chris, but I'd say this 20-25 is a good level for us for the foreseeable future." — Kevin Blair (CEO)
CET1 timing and hires outlook
Q (Anthony Elian · JPMorgan): Asked when CET1 will hit 10.25% and why 2027 hiring range was left unchanged despite strong hiring this year.
A: They said the recent quarter-to-quarter capital accretion trends suggest reaching 10.25% in a few quarters is reasonable if trends continue. On hiring, they deferred providing a 2027 update until December and said not to read the unchanged range as a sign the pipeline is drying up.
"You could look at that and run it forward and project getting to a 10.25% in a few quarters." — Jamie Gregory (CFO)
Deposit pricing and PAA shortfall
Q (Christopher Marinac · Brean Capital): Asked whether deposit growth and pricing are driven by exceptions or new producers, and why PAA was slower in the quarter.
A: They said new hires are bringing notable deposit balances and new deposits priced near 270 basis points, with many commercial deposits indexed so fewer exceptions are required. On PAA, they said a single loan prepayment that paid off at a premium caused about a $2 million headwind and overall slower prepayments in the quarter.
"So that was a $2 million headwind to PAA in the third quarter, which is fairly impactful to the quarter." — Jamie Gregory (CFO)
Profitability timing of new hires
Q (Ed Najarian · Hovde Group): Asked whether new hires this year will be profitable by 2027 and how to think about the embedded pipeline of profitability from recent hires.
A: They said prior cohorts show strong embedded growth and estimated about $20 billion of future loan growth from partially migrated bankers. The most recent cohort covers about 88% of their cash compensation in year one, and bankers in year one-to-three typically cover two-to-three times their cash compensation.
"That cohort today has a cash compensation coverage ratio of about 88%." — Kevin Blair (CEO)
Non-interest deposits and loan demand
Q (David Chiaverini · Jefferies): Asked how to think about keeping non-interest-bearing deposits near 20% with higher rates and whether higher rates have affected C&I loan demand.
A: They said higher rates make it harder to maintain that level, but they expect relative stability with slight pressure on the ratio next year. On loan demand, they said client surveys show resilience and no notable drop in C&I pipelines, though clients are concerned about margin pressure.
"We do expect to see relative stability with slight pressure on that ratio as we go through next year." — Jamie Gregory (CFO)
Category IV threshold and Q4 deposit mix
Q (Janet Lee · TD Cowen): Asked how far regulators would need to move the Category IV threshold (e.g., to $50 billion) to rethink the $1 billion annual liquidity build, and whether Q4 deposit guide includes broker deposits.
A: They said a $50 billion shift would not meaningfully change timing and they are still executing debt issuance because they expect to be subject to the threshold in the near term. They also said Q4 deposit guidance does contemplate broker deposits alongside core and seasonal growth and is embedded in the midpoint assumptions.
"If it moves $50 billion and we cross that in a couple of years, it is not a tremendous difference to us as far as the timing of any of the needs." — Jamie Gregory (CFO)