Oct 22, 2026 earnings call — Loan growth and expansion markets
Net income excluding merger charges was $86 million and total loans grew 5.1% year-over-year.
Revenue $0.3B (est $0.3B) · EPS $0.89 (est $0.88)
Key quotes
"Total loans increased 5.1% year-over-year and 8.7% annualized sequentially as our teams converted pipeline opportunities across our footprint."
"In the third quarter, we were able to generate about 8,400 new customer accounts."
"With the third quarter loan growth funded with a heavier mix of higher cost wholesale borrowings, we anticipate our net interest margin for the fourth quarter to potentially be a basis point or 2 below the 3.60% that we reported here in the third quarter."
Analyst Q&A 6
deposit growth and loan sizing
Q (William Jones · KBW): He asked why balances were flat despite positive momentum and whether timing pushed growth into Q4. He also asked what loan-to-deposit ratio they'd be comfortable with and if they can defend current margin levels.
A: Management said they opened about 8,400 new customer accounts but closed 37 branches, which caused some runoff, and that deposits were already up a couple of hundred million dollars this quarter and should finish strong. They said they'd be comfortable with the loan-to-deposit ratio in the mid-90s, somewhere around 95-ish. On margin, they said 3.60% is defendable into 2027 and cited about $250 million in securities cash flows per quarter (about $1 billion annually) repricing upward about 180 basis points from 3.30% to about 5.10% plus loan repricings.
"And so I feel very good about where we ended up, even though it was flat." — Jeffrey Jackson (CEO)
market performance, hiring, deposit timing
Q (Manuel Navas · Piper Sandler): He asked how core markets are doing and expectations for growth. He also asked where they plan to hire next and when deposits typically follow lending in new markets.
A: Management said Cincinnati/Columbus just surpassed $1 billion in production this year and the Mid-Atlantic also had record production. They said Tennessee has surpassed $1 billion in production in about 3 years with over $700 million in loans outstanding and a growing deposit base. On hiring, they expect to add 1 or 2 to the health care team and 1 or 2 in Florida, and they expect Florida to open 3 branches near the end of first quarter with deposit flows picking up this quarter and next; Tennessee LPOs should produce stronger deposits by midyear next year.
"So they just surpassed $1 billion in production this year, an all-time record there." — Jeffrey Jackson (CEO)
loan growth and market runway
Q (Karl Shepard · RBC): He asked if anything could slow their strong loan production and asked for sizing and runway in Florida and Nashville.
A: Management said the main risks would be heavier CRE payoffs or a massive interest-rate hike (they mentioned 150 or 200 basis points as an example), but the pipeline remains very solid. They said total production this year will probably be near $5 billion versus $2 billion in 2024, and that Florida could finish the year with about $0.5 billion in loans and grow into a $2 billion franchise by 2028. They said Tennessee already has about $750 million in loans and around $100 million plus in deposits and could see Nashville reach $1 billion and the state reach $1.5 billion to $2 billion by 2028.
"The only thing that could knock us off would be heavier CRE payoffs." — Jeffrey Jackson (CEO)
branch cuts and expense guidance
Q (Russell Elliott Gunther · Stephens): He asked whether they will further optimize the branch network to save costs and if expense guidance or other strategic options are planned. He also asked about deposit betas and what underpins the 3.60% NIM defense.
A: Management said there are more options to optimize the branch network and they could see some 2-for-1 or 3-for-1 actions, with potential cost saves to be finalized by fourth-quarter results and likely mid-single digits to low double digits. They reiterated Q4 expense guidance around $153 million and explained drivers like a $2 million health care rebate and about $1 million in deferred comp that would show up in Q4, mainly increasing employee benefits. On funding, they said they're modeling about a 50% deposit beta, may increase rates on CDs, money markets and private client accounts, and expect asset repricing to largely offset higher funding costs while maintaining a deposit mix about 24%, 25% noninterest-bearing and the other 75% interest-bearing.
"I think you could potentially see some 2-for-1, 3-for-1s." — Jeffrey Jackson (CEO)
2027 expenses and credit/reserves
Q (Daniel Tamayo · Raymond James): He asked if the 3%–5% year-over-year expense growth continues into 2027 or will slow with fewer hires. He also asked about the held-for-sale Premier loan, expected losses, and reserve trends.
A: Management said they are finalizing the 2027 budget but generally expect expense growth in the 3% to 5% range year-over-year and will provide more detailed guidance likely in the first quarter. On credit, they said the held-for-sale is one of three Premier credits, they expect it to be resolved and do not expect any loss on it, and they anticipate at least 2 of the 3 (if not all) will be resolved this quarter. On reserves, they said allowance coverage moved from 1.12% to 1.08% (down about 4 basis points) driven by a fully reserved charge-off and a $95 million decline in criticized and classified loans (about 55 basis points), and said the coverage ratio has been around 1.10% for many quarters and is unlikely to get much lower.
"We do not expect any loss on that." — Jeffrey Jackson (CEO)
loan pricing and deposit incentives
Q (David Bishop · Hovde Group): He asked if loan pricing in new markets like Florida differs from legacy markets. He also asked whether they are changing compensation to drive more core deposit growth.
A: Management said they have not seen any difference in loan pricing in Florida and that Florida teams have been successful at charging and getting loan fees. They said they will tweak incentive plans to reward deposits more, breaking out noninterest-bearing and interest-bearing accounts with a heavy focus on deposits this quarter and especially next year.
"No, we have not seen any difference at all." — Jeffrey Jackson (CEO)