Oct 20, 2026 earnings call — Margin expansion and credit improvement
Guided Q4 margin to 285-290 and reported Q3 net income of $19.4 million.
Revenue $0.1B (est $0.1B) · EPS $1.01 (est $0.87)
Key quotes
"We're going to guide to a range of 285-290."
"But the pipeline going forward, we've got about a $230 million pipeline as of 9/30, which is weighted towards C&I with about $40 million of that today in the institutional group."
"The improvement was largely driven by the resolution of an office loan of $22.3 million that was placed on non-accrual in the first quarter."
Analyst Q&A 3
Margins, deposits, and Q4 expenses
Q (Damon DelMonte · KBW): He asked how margins will trend in the back half of the year and into 2027 after recent rate hikes. He also asked what is driving non-interest-bearing deposit growth and the outlook for fourth-quarter expenses.
A: Management guided Q4 margin to a range of 285-290 and said they remain modestly asset sensitive; the guidance currently includes only the September rate hike and each 25 basis point hike likely adds 1-2 basis points to the run rate. They said non-interest-bearing deposit growth was largely driven by the institutional banking team onboarding operating accounts and by broad retail and commercial deposit efforts. For expenses, they said Q3 came in below the prior $1 million increase estimate and they expect about a $1.5 million increase in Q4 for branches, marketing, technology, and personnel, with the annual $750,000 charitable contribution incremental to that.
"We're going to guide to a range of 285-290." — Ron Ohsberg (CFO)
Loan repricing, CRE, and loan growth mix
Q (Justin Crowley · Piper Sandler): He asked to confirm the benefit from the terminated swap and for detail on loan repricings through the end of 2027, including volume and rate pickup. He also asked whether five-year fixed-to-floating CRE and the loan mix between CRE and C&I will provide benefit, and about loan growth prospects.
A: Management confirmed the terminated-swap benefit. They said they have about $2.1 billion of SOFR and prime-based loans that reset monthly, so those reprice immediately when the Fed changes rates, and their $2 billion residential book is amortizing and gives a tailwind of about 1-2 basis points per quarter. Ned said maturing CRE underwritten at lower rates can give some lift but tightening spreads and competition reduce that benefit; they reported annualized total portfolio growth of 5% and commercial growth of about 10%, with quarterly commercial growth of 2.3% and a $230 million pipeline weighted toward C&I (about $40 million in institutional).
"We've got, call it about $2.1 billion of SOFR and prime-based loans." — Ron Ohsberg (CFO)
Q4 expenses, branches, credit, and buyback
Q (Laurie Hunsicker · Seaport): She asked whether Q4 expense is about $41 million including the $750,000 charitable contribution, timing and run rate for the new branches, plans for branches in 2027, loan-to-deposit targets and deposit competition, spot margin, details on loans moved to non-accrual and lab-space credits, and whether buybacks will resume.
A: They confirmed Q4 expense is about $41 million including the $750,000 charitable gift and said the Bristol and Pawtucket branches should open around the end of the quarter; a branch has an ongoing run rate of about $750,000-$800,000 a year and a partial-quarter add is reasonable. They said they have no specific loan-to-deposit target to share, will try to grow deposits roughly alongside loan growth, and will use wholesale funding when needed; Ron indicated spot margin was about 285 for September. On credit, Bill said the Class A loan was moved to non-performing for valuation risk though sponsors never missed payments and the property matures in 2031; the $6.6 million lab loan is moving toward an exit with sponsors, and the $28 million lab property is 95% leased with positive trends and may move out of special mention once quarter-end rent payments are confirmed. Ned said they have no plans to buy back stock right now because the price is high and they prefer to deploy capital into loan growth.
"We don't have any plans to buy stock back at this point." — Ned Handy (CEO·CHAIR)