Oct 20, 2026 earnings call — Record operating revenue and organic growth
Posted record operating revenue of $57.5 million and operating earnings of $18.6 million for the quarter.
Revenue $0.1B (est $0.1B) · EPS $1.10 (est $0.96)
Key quotes
"We again delivered excellent growth on both sides of the balance sheet, with 15% annualized organic loan growth and 12% annualized core deposit growth."
"Net interest income increased $1.3 million to 49.4 million and net interest margin was 3.45%, in line with our stated guidance."
"Operating noninterest expense totaled 36.4 million up $2.4 million from the prior quarter."
Analyst Q&A 7
seasonality, deposit growth, margin and EPS
Q (Will Jones · KBW): Asked whether there was seasonality this quarter, how deposit beta and future rate hikes affect margin, and if the $1 EPS run-rate still looks achievable.
A: Management said Q3 saw a pickup in new and existing client activity and they expect another good growth quarter in Q4, saying they are out of their usual seasonality trend. They confirmed new deposits were 3.33 for the quarter and said deposit beta is about 70%, so they expect to be fairly neutral to incremental rate moves; they still view the $1 EPS target as on track.
"And feel really good about our ability not just to hit that, but our ability to continue to move EPS higher." — William Young Carroll Jr. (CEO)
loan pipeline, reinvestment, deposit rates, expense growth
Q (Russell Gunther · Stephens): Asked whether higher Fed hikes could cause pipeline fallout that threatens loan growth, where investment and deposit reinvestment yields are, and what intermediate expense growth might look like.
A: Management said the loan pipeline still feels healthy but acknowledged another 2 to 3 hikes could impact 2027; they credited their teams' prospecting for continued originations. They said they are buying bonds at SOFR plus 85 (in the 5-plus range) and that spot deposit pricing is roughly $4.10 for 7-month CDs, $4.15 for 13-month CDs and $3.60–$3.70 for money markets as they target about 90–95% of Fed funds. On expenses they said they expect roughly 5% to 6% growth off a Q4 run rate while still seeking operating leverage.
"We are trying to target, got it, 90 95 percent of Fed funds." — Ronald J. Gorczynski (CFO)
deposit blended rate, loan yields, long-term targets, M&A
Q (Stephen Scouten · Piper Sandler): Asked what blended deposit costs are, current loan yields and spreads, whether management will provide longer-term profitability targets, and if M&A is back on the table.
A: Management said all-in deposit cost is about $3.35 and that pricing competition is real, with more exception pricing requests. They reported September loan yield was 6.78 and said they are working on longer-term targets and will share them when ready. For M&A they said organic growth and adding regional bankers is priority and any deal would have to be uniquely accretive, not just size for size.
"We are coming in at the $3.35 range. All in." — Ronald J. Gorczynski (CFO)
fee income, mortgage strength, loan repricing, demand
Q (Brett Rabatin · Stonex Group): Asked whether Q4 fee income guide is $7.5 million and why it is softer, why mortgage was strong in Q3, how repricing of maturing loans will play out, and whether higher rates are slowing demand.
A: Management confirmed Q4 fee income guidance of $7.5 million and said the softness is mainly mortgage seasonality. They said mortgage was strong due to new originator hires and better processing efficiency, giving a good pipeline. On repricings they said they are getting about 100–110 basis points over original rates and retaining roughly 80–85% of renewals in house; demand has not meaningfully slowed yet but more hikes could slow activity into 2027.
equipment finance stress, NII, liquidity floor
Q (Steve Moss · Raymond James): Asked how large the equipment finance portfolio is, what stress you've seen, and how NII growth and liquidity might change to fund loans.
A: Management said they saw some delinquency creep in equipment finance tied to smaller transport operators and higher diesel, but it remains manageable. They said that equipment finance exposure is about 145 million and that annualized NII growth for Q4 is likely closer to 3%; liquidity could be reduced modestly but they are near a floor and might have about 80 million more flexibility.
"I am just saying it is it is about a 145 million or so." — Rhett D. Jordan
CRE losses, reserves, future provisions
Q (Chris Adamo · KBW Capital): Asked for CRE loss rate this quarter and how they see losses, provisions, and reserves moving forward.
A: Management said losses so far this year have been small and mostly from the equipment finance sub-portfolio. They do not anticipate significant additional losses and said the allowance is positioned very well for current conditions.
"I mean, we feel like our allowance is positioned very well with where we are today." — Rhett D. Jordan
closing remarks
Q (Miller Welborn): No question; operator said there were no further questions and turned the call back for closing remarks.
A: Management thanked listeners for joining and expressed appreciation for interest in what they are building at the bank. They closed by wishing everyone a great day and saying they will talk soon.