Oct 22, 2026 earnings call — Record earnings and balance sheet update
Reported record earnings per share of $1.9 for the quarter.
Revenue $0.1B (est $0.1B) · EPS $1.09 (est $0.99)
Key quotes
"We delivered record earnings per share of $1.9 up nearly 20% from a year ago and almost 7% from last quarter."
"As an example of that commitment, we completed a significant upgrade to our online banking platform for all customers in Q3, and we will roll out a similar significant upgrade for our mobile banking platform in Q4."
"Our allowance for credit losses was stable at 1.16% of gross loans, reflecting the overall quality of the loan portfolio and our focus on maintaining improvements we have made over the past several years."
Analyst Q&A 5
Loan growth drivers and M&A plans
Q (Justin Crowley · Piper Sandler): Analyst asked what is causing lower origination activity and how management thinks about loan growth if rates rise. He also asked for pipeline detail and an update on M&A posture and obstacles.
A: Management said they are balancing loan volume and spread. They will keep spreads on new commercial loans to defend net interest margin, which limits growth. They are hiring C&I bankers and expect more C&I activity next year; higher cap rates are lowering appraisals so they require more borrower capital and tightened underwriting.
"We plan on maintaining that you know, that focus on maintaining spread in order to defend the net interest margin." — David G. Antolik (PRESIDENT)
Securities cash flow and hiring effects
Q (David Bishop · Hovde Group): Analyst asked about expected cash flows from fixed-rate loans and securities over the next year, roll-off versus roll-on yields, and whether recent C&I hires face non-compete issues. He also asked about deposit/treasury wins pipeline.
A: They said the securities book is fairly laddered and will generate about $100 million to $150 million a year of cash flow. On loans, commercial spreads are slightly higher by about 10 to 15 basis points and there are some 3- and 5-year resets (~$100 million) in 2027 with bigger pickups. Most new banker hires have non-solicits to work through; they also hired in business banking and said deposit pipeline activity is steady while they upgrade payments, online banking, and mobile capabilities.
"we have a fairly laddered portfolio, so it runs maybe a $100 million to $150 million or so." — Mark Kochvar
Cost of new funding and buyback plans
Q (Kelly Motta · KBW): Analyst asked what the incremental cost of new funding is and how management expects deposit beta to behave. He also asked about resuming the buyback.
A: They said competition on CDs and money markets has increased and incremental funding cost is around the low 4s, though some costs are higher. They are defending relationships and will keep evaluating. Management said they are looking more seriously at resuming the buyback in the fourth quarter and are watching price and market conditions; AOCI helped capital this quarter.
"So we are seeing at the at the increment kind of in the low 4s is as a place where we can we can put a stake in the ground" — Mark Kochvar
NIM vs volume and cap rate effects
Q (Matthew Breese · Stephen): Analyst asked what spread compression looks like and how rising cap rates are affecting underwriting and lending decisions.
A: They said rising cap rates are already affecting appraisal values and they stress-test cash flows using rates about 200 to 300 basis points above current levels. That makes deals harder unless they lower loan rates (which hurts profitability) or require more borrower capital, so they are staying disciplined. They noted spread compression over the past 12–15 months on CRE and rising deposit competition, so they will balance growth with profitability and credit quality.
"so we apply a stressed rate at you know, 200 to 300 basis points above that." — David G. Antolik (PRESIDENT)
Credit outlook and fee income trend
Q (Daniel Tamayo · Raymond James): Analyst asked if there are credit concerns in criticized or classified loans and how charge-offs might trend. He also asked about fee income going forward.
A: They said they do not see signs in the credit ratings that would indicate deterioration and they actively stress test and review credits; a slight uptick in criticized assets in Q3 has remediation plans and they expect improvement in Q4. On fee income, they expect a run rate in the mid 14 to pushing on 15 and said the Durbin timing supports a steadier run rate into 2027.
"We do not see anything in the credit rating stack that would lead us to believe that credit results would deteriorate" — David G. Antolik (PRESIDENT)