Core Insights - The company reported strong financial results for the third quarter of 2025, with significant growth in net interest income and non-interest income, leading to a net income of $20.1 million or $0.99 per diluted share [3][4][20] - The company expects to exceed previous guidance for return on average assets (ROAA) and return on equity (ROE), projecting ROAA to exceed 115 basis points and ROE to be greater than 12% [2][20] - Loan growth was primarily driven by commercial lending, particularly in the Upstate New York market, with total commercial loans increasing by 1.6% from June 30, 2025, and 8.3% year over year [1][4][5] Financial Performance - Net interest income reached a record high of $51.8 million, up 5.4% from the previous quarter, while non-interest income increased by 13.6% to $12.1 million [14][15] - The efficiency ratio improved to about 58%, below the targeted 60% threshold, indicating effective expense management [20] - The company anticipates full-year expenses to be approximately $141 million, slightly higher than the original guidance of $140 million [19] Loan and Deposit Growth - Total loans grew by 1.2%, with commercial lending being the main contributor, while total deposits increased by 3.9% to $5.36 billion [4][10] - Consumer indirect loan balances showed a slight increase of 0.6% from the previous quarter, although they were down 4.1% year over year [6] - Residential lending remained flat compared to the previous year, with a healthy pipeline for mortgage and home equity applications, up 12% and 11% year over year, respectively [7] Credit Quality - The company reported a low annualized net charge-off ratio of 18 basis points, significantly lower than the previous quarter and in line with the prior year [8][9] - Non-performing loans increased slightly to 74 basis points but showed a notable decrease from 94 basis points a year ago, indicating overall solid asset quality [9][10] Capital Management - The company has improved its tangible common equity (TCE) to 8.74% and common equity Tier 1 ratio to 11.15%, reflecting strong earnings and active balance sheet management [21][22] - A share repurchase plan was refreshed, indicating confidence in capital levels and a strategy to support share value [21][22] Outlook - The company is optimistic about maintaining loan growth momentum into 2026, with expectations for mid-single-digit growth rates [5][29] - Guidance for net interest margin is tightened to between 350 and 355 basis points, with expectations for modest margin pressure in the fourth quarter due to recent Federal Open Market Committee (FOMC) activities [13][14]

Financial Data and Key Metrics Changes - Adjusted net income for Q3 2025 was $72.6 million, with adjusted earnings per share at $0.76, resulting in an adjusted return on assets of 1.55% and an adjusted return on tangible common equity of 19.3% [4][6] - Record revenue was achieved in Q3, driven by a robust net interest margin of 4.02% and record non-interest income, which represented 31% of total net revenue [4][7] - Tangible book value per share increased to $16.19, a 5% increase from the previous quarter and a 14% increase year-over-year [6][12] Business Line Data and Key Metrics Changes - Loan balances declined modestly by $72 million during the quarter, primarily due to lower production in specialty lending areas and an increase in construction originations [5][10] - Non-interest income reached a record high of $73.6 million, led by leasing and foreign exchange businesses, with higher syndication fees contributing to the increase [10][11] - Non-interest expenses increased due to higher incentive compensation tied to fee income, but overall expenses were well managed [5][11] Market Data and Key Metrics Changes - Average deposit balances increased by $157 million, driven by higher broker deposits and money market accounts, despite a seasonal decline in public funds [7][10] - The company maintained 21% of total balances in non-interest bearing accounts, focusing on growing lower-cost deposit balances [7] Company Strategy and Development Direction - The company expects loan growth to return to mid-single digits in Q4 2025, driven by strong commercial lending and seasonal public fund inflows [13][34] - The integration of pending acquisitions, including Westfield and BankFinancial, is anticipated to enhance operational efficiency and expand market reach [15][64] - The company aims to maintain an industry-leading net interest margin and is preparing for potential rate cuts while managing deposit costs [13][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong performance in Q4 2025, with expectations for continued growth in fee income and stable credit costs [14][43] - The company anticipates that credit costs will remain steady, with net charge-offs expected to be in the mid-20 basis points range [43] - Management highlighted the competitive deposit environment but indicated that proactive measures have been taken to manage deposit costs effectively [52] Other Important Information - The company recorded $9.1 million in provision expense during the quarter, driven by net charge-offs, with an allowance for credit losses (ACL) coverage of 1.38% of total loans [8][12] - The company is committed to providing attractive returns to shareholders, with 33% of earnings returned through dividends during the period [12] Q&A Session Summary Question: NDFI loan exposure details - The company has approximately $434 million in the NDFI portfolio, which is conservatively managed and primarily consists of traditional REITs [17][20] Question: Impact of rate cuts on net interest margin - Each 25 basis point rate cut is expected to create about 5 basis points of margin pressure initially, with recovery as deposit costs adjust [21][22] Question: Loan growth expectations and verticals driving growth - Strong commercial lending is expected to drive growth, with specific contributions from Summit funding and commercial real estate [32][34] Question: Fourth quarter fee and expense guidance - The increase in fourth quarter expenses is primarily driven by higher forecasts from Bannockburn and other business segments [40][41] Question: Credit cost outlook - Credit costs are expected to remain steady, with a run rate of mid-20 basis points anticipated [43] Question: Capital management and buyback considerations - The company plans to assess capital ratios post-acquisitions before considering buybacks, especially if trading below tangible book value [45][46] Question: Deposit competition and funding growth - The company expects to manage deposit costs effectively despite competitive pressures, aided by liquidity from acquisitions [52][54]

Financial Data and Key Metrics Changes - Adjusted net income for Q3 2025 was $72.6 million, with adjusted earnings per share at $0.76, resulting in an adjusted return on assets of 1.55% and an adjusted return on tangible common equity of 19.3% [3][5] - Record revenue was achieved in Q3, driven by a robust net interest margin of 4.02% and record non-interest income, which represented 31% of total net revenue [3][6] - Tangible book value per share increased by 5% from the previous quarter to $16.19, and tangible common equity increased by 47 basis points to 8.87% [5][11] Business Line Data and Key Metrics Changes - Loan balances declined modestly by $72 million during the quarter, primarily due to lower production in specialty businesses and a higher percentage of construction originations [4][9] - Non-interest income reached a record high of $73.6 million, led by leasing and foreign exchange businesses, with higher syndication fees contributing to the increase [6][10] - Non-interest expenses increased due to higher incentive compensation tied to fee income, but overall expenses were well managed [4][10] Market Data and Key Metrics Changes - Average deposit balances increased by $157 million, driven by higher broker deposits and money market accounts, despite a seasonal decline in public funds [6][9] - The company maintained 21% of total balances in non-interest bearing accounts, focusing on growing lower-cost deposit balances [6] Company Strategy and Development Direction - The company expects loan growth to return to mid-single digits in Q4 2025, with strong commercial lending as the primary driver [12][32] - The integration of pending acquisitions, including Westfield and BankFinancial, is anticipated to enhance operational efficiency and expand market reach [14][63] - The company aims to maintain an industry-leading net interest margin and expects it to range between 3.92% and 3.97% in the next quarter [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong performance in Q4 2025, with expectations for increased origination volumes and strong deposit growth [12][14] - Credit costs are expected to remain stable, with annualized net charge-offs projected at 18 basis points [7][42] - The company anticipates a continued focus on expense management while evaluating capital actions to support shareholder returns [11][44] Other Important Information - The company has received regulatory approval for the Westfield transaction, expected to close in early November 2025 [14] - The company is committed to providing attractive returns to shareholders, with 33% of earnings returned through common dividends [11] Q&A Session Summary Question: NDFI loan exposure details - The NDFI portfolio stands at approximately $434 million, conservatively managed with no adversely rated credit, primarily consisting of traditional REITs [16][19] Question: Impact of rate cuts on net interest margin - Each 25 basis point rate cut is expected to create about five basis points of near-term pressure on the margin, with a potential recovery as deposit costs adjust [20][22] Question: Loan growth expectations and verticals driving growth - Strong commercial lending is expected to drive growth, with specific verticals like Summit funding projected to perform well in Q4 [31][32] Question: Fourth quarter fee and expense guidance - The increase in fourth quarter expenses is primarily driven by higher forecasts from Bannockburn and other commission-based businesses [40][41] Question: Credit cost outlook - Credit costs are expected to remain steady, with a run rate of 25 to 30 basis points anticipated [42] Question: Capital management and buyback considerations - The company plans to assess capital ratios post-acquisitions before considering buybacks, particularly if trading below tangible book value [44]

Financial Data and Key Metrics Changes - Adjusted net income for Q3 2025 was $72.6 million, with adjusted earnings per share at 76 cents, resulting in an adjusted return on assets of 1.55% and an adjusted return on tangible common equity of 19.3% [4][12] - The net interest margin remained strong at 4.02%, despite a slight decline of three basis points from the previous quarter [9][13] - Tangible book value per share increased by 5% from the previous quarter to $16.19, and tangible common equity ratio increased by 47 basis points to 8.87% [7][18] Business Line Data and Key Metrics Changes - Noninterest income reached a record of $73.6 million, representing 31% of total net revenue for the quarter, driven by leasing and foreign exchange businesses [5][10] - Loan balances decreased by $72 million during the quarter, primarily due to lower production in specialty lending areas and increased construction originations [6][14] - Average deposit balances increased by $157 million, driven by higher brokered CDs and money market accounts [10][14] Market Data and Key Metrics Changes - Asset quality metrics remained stable, with nonperforming assets flat as a percentage of total assets and annualized net charge-offs at 18 basis points, showing slight improvement from the previous quarter [7][12] - The company maintained 21% of total balances in noninterest-bearing accounts, focusing on growing lower-cost deposit balances [10] Company Strategy and Development Direction - The company expects loan growth to return to mid-single digits by the end of the year, driven by strong commercial lending and seasonal public fund inflows [19][43] - The integration of pending acquisitions, including Westfield, is anticipated to enhance operational efficiency and expand market reach [21][76] - The company is committed to providing attractive returns to shareholders, with 33% of earnings returned through dividends [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong origination volumes in Q4, with expectations for continued profitability and growth momentum into 2026 [19][22] - The company anticipates credit costs to remain stable, with a projected charge-off rate of 25 to 30 basis points in the current environment [54] - Management noted competitive deposit market conditions but expects a reduction in deposit costs due to recent rate cuts [66] Other Important Information - The company has received regulatory approval for the Westfield acquisition, expected to close in early November [21] - The allowance for credit losses (ACL) coverage increased slightly to 1.38% of total loans, with a total provision expense of $9.1 million recorded during the quarter [11][17] Q&A Session Summary Question: NDFI loan exposure details - The NDFI portfolio stands at approximately $434 million, primarily composed of traditional REITs and conservatively managed with no adversely rated credits [28] Question: Impact of rate cuts on net interest margin - Each 25 basis point rate cut is expected to exert about five basis points of pressure on the margin, with a potential starting point of around 3.90% for early next year [32] Question: Loan growth expectations and verticals driving growth - Strong commercial lending is expected to be the primary driver of growth, with projections for a 5% annualized growth rate [43] Question: Fourth quarter fee and expense guidance - The increase in fourth quarter guidance is primarily driven by higher forecasts from Bannockburn and Summit, with expectations for continued growth in those areas [52] Question: Capital management and buyback considerations - The company plans to assess capital ratios post-acquisitions before considering stock buybacks, especially if trading below tangible book value [58]

Financial Data and Key Metrics Changes - The company reported net income available to common shareholders of $20.1 million or $0.99 per diluted share for Q3 2025, reflecting strong financial results [4] - Return on average assets (ROAA) and return on average equity (ROAE) improved to 132 basis points and 13.31% respectively, both up notably from previous periods [5] - Full year 2025 guidance for ROAA is now expected to exceed 115 basis points, up from 110 basis points, and ROAE is expected to be greater than 12%, up from 11.25% [5] Business Line Data and Key Metrics Changes - Loan growth was 1.2%, driven by commercial lending, while total deposits increased by 3.9% [4] - Total commercial loans reached approximately $3 billion, reflecting a 1.6% increase from the previous quarter and an 8.3% increase year over year [6] - Consumer indirect balances increased by 0.6% from the previous quarter but were down 4.1% year over year [9] Market Data and Key Metrics Changes - The company experienced strong commercial growth in Upstate New York, particularly in the Syracuse region, supported by significant investments in the area [7] - The housing market remains tight in Rochester and Buffalo, with home prices continuing to rise, although new listings and inventory have increased year over year [10] Company Strategy and Development Direction - The company aims for profitable organic growth and anticipates a strong finish to 2025, with incremental performance expected in 2026 [25] - The opening of a satellite office in Sarasota, Florida, is part of the strategy to better serve clients and tap into new markets [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining momentum heading into 2026, anticipating that pent-up demand for credit will be released with future rate cuts [8] - The company is focused on expense management to maintain positive operating leverage and a favorable efficiency ratio [22] Other Important Information - The company expects total deposits at year-end 2025 to be generally flat compared to the previous year [14] - Noninterest income for the year is expected to exceed the original guidance of up to $42 million [21] Q&A Session Summary Question: Margin outlook with potential rate cuts - Management indicated that while margins may decline modestly in the fourth quarter, they expect a recovery in 2026 as new loan production and cost management continue [27][30] Question: Buyback activity - Management expressed satisfaction with the board's approval of the buyback plan, indicating it as an option to support shares [31] Question: Loan growth expectations - Management is optimistic about achieving mid-single-digit growth rates as they build out their financial plan for 2026 [32][33]

Financial Data and Key Metrics Changes - Adjusted net income for Q3 2025 was $72.6 million, with adjusted earnings per share at $0.76, resulting in an adjusted return on assets of 1.55% and an adjusted return on tangible common equity of 19.3% [4][10] - Record revenue was achieved in Q3, driven by a robust net interest margin of 4.02% and record non-interest income, which represented 31% of total net revenue [4][8] - Tangible book value per share increased to $16.19, a 5% increase from the previous quarter and a 14% increase year-over-year [6][13] Business Line Data and Key Metrics Changes - Loan balances declined modestly by $72 million during the quarter, primarily due to lower production in specialty lending areas and an increase in construction originations [5][11] - Non-interest income reached a record high of $73.6 million, led by leasing and foreign exchange businesses, with higher syndication fees contributing to the increase [8][12] - Non-interest expenses increased due to higher incentive compensation tied to fee income, but core expenses remained well managed [9][12] Market Data and Key Metrics Changes - Average deposit balances increased by $157 million, driven by higher broker deposits and money market accounts, despite a seasonal decline in public funds [8][11] - The company maintained 21% of total balances in non-interest bearing accounts, focusing on growing lower-cost deposit balances [8] Company Strategy and Development Direction - The company expects loan growth to return to mid-single digits in Q4 2025, with strong commercial lending as the primary driver [15][30] - The integration of pending acquisitions, including Westfield and BankFinancial, is anticipated to enhance growth and efficiency, with a focus on expanding into new markets [15][17] - The company aims to maintain an industry-leading net interest margin and is preparing for potential rate cuts while managing deposit costs [15][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong performance in Q4 2025, with expectations for increased origination volumes and strong deposit growth [15][17] - Credit costs are expected to remain stable, with net charge-offs projected to be in the mid-20 basis points range [37] - The company is optimistic about its financial performance and the momentum heading into 2026, driven by the pending acquisitions [17][59] Other Important Information - The company has received regulatory approval for the Westfield transaction, expected to close in early November 2025 [15][17] - The allowance for credit losses (ACL) coverage increased slightly to 1.38% of total loans, reflecting a conservative approach to modeling potential losses [9][13] Q&A Session Summary Question: NDFI loan exposure details - The NDFI portfolio stands at approximately $434 million, primarily composed of traditional REITs and conservatively managed with no adversely rated credit [20] Question: Impact of rate cuts on net interest margin - Each 25 basis point rate cut is expected to exert about five basis points of near-term pressure on margin, with a gradual recovery as deposit costs adjust [23] Question: Loan growth expectations and verticals driving growth - Strong commercial lending is anticipated to drive growth, with specific verticals including Summit funding and commercial real estate projected to contribute positively [30] Question: Fourth quarter expense guidance - The increase in expenses for Q4 is primarily driven by higher forecasts from Bannockburn and Summit, with expectations for continued growth in those areas [34] Question: Capital management post-acquisitions - The company plans to assess capital ratios after the acquisitions and may consider buybacks if trading below tangible book value [39]

Core Insights - Richmond Mutual Bancorporation, Inc. reported a net income of $3.6 million, or $0.37 diluted earnings per share, for Q3 2025, marking a 42% increase from Q2 2025 and a 54% increase from Q3 2024 [1][2][3] Financial Performance - The growth in net income and diluted earnings per share was primarily driven by higher net interest income due to an expanded net interest margin [2] - Net interest income before the provision for credit losses increased by $536,000, or 5.0%, to $11.3 million in Q3 2025 compared to Q2 2025, and increased by $1.9 million, or 19.7%, from Q3 2024 [5][12] - The annualized net interest margin improved to 3.07% in Q3 2025, up from 2.93% in Q2 2025 and 2.60% in Q3 2024 [13][12] Income Statement Highlights - Interest income rose by $467,000, or 2.2%, to $21.8 million in Q3 2025 compared to Q2 2025, and increased by $1.6 million, or 7.7%, from Q3 2024 [6] - Interest expense decreased by $68,000, or 0.6%, to $10.5 million in Q3 2025 compared to Q2 2025, and decreased by $310,000, or 2.9%, from Q3 2024 [10] - Noninterest income increased by $218,000, or 20.2%, to $1.3 million in Q3 2025 compared to Q2 2025, but decreased by $27,000, or 2.0%, from Q3 2024 [15] Balance Sheet Summary - Total assets were $1.5 billion as of September 30, 2025, with loans and leases totaling $1.2 billion [12][18] - Total deposits increased by $24.3 million, or 2.2%, to $1.1 billion at September 30, 2025, compared to December 31, 2024 [24] - Stockholders' equity rose to $140.0 million at September 30, 2025, an increase of $7.2 million, or 5.4%, from December 31, 2024 [26] Credit Quality - Nonperforming loans and leases totaled $10.8 million, or 0.90% of total loans and leases, at September 30, 2025, compared to $6.8 million, or 0.58%, at December 31, 2024 [20] - The allowance for credit losses increased to $16.4 million, or 1.37% of total loans and leases outstanding, at September 30, 2025 [21] Management Commentary - The CEO expressed satisfaction with the third quarter results, highlighting the strength of the core banking model and the importance of customer care and community support amid economic uncertainties [3]

Financial Data and Key Metrics Changes - Earnings per share (EPS) for the third quarter was $0.94, excluding merger-related charges, representing a 68% increase year-over-year [3][4] - Net income, excluding merger and restructuring expenses, was $90 million for the quarter [4][11] - The efficiency ratio improved by 10 percentage points year-over-year to 55% due to expense synergies from the Premier acquisition [4][12] - Net interest margin increased to 3.53%, up 58 basis points year-over-year [15][12] - Total assets reached $27.5 billion, a 49% increase year-over-year [12] Business Line Data and Key Metrics Changes - Fee income grew by 52% year-over-year, driven by organic growth across various businesses, particularly wealth management [3][12] - Total portfolio loans increased by 52% year-over-year, including $5.9 billion from the Premier acquisition and $594 million from organic growth [12][14] - Non-interest income for the quarter was $44.9 million, a 51.5% increase year-over-year [16] Market Data and Key Metrics Changes - Total deposits grew organically by more than $570 million year-over-year, reaching $21.3 billion [7][14] - Commercial real estate payoffs totaled $235 million in the third quarter, impacting loan growth [7][13] - The commercial loan pipeline stood at approximately $1.5 billion, with over 40% tied to new markets [7][8] Company Strategy and Development Direction - The company is focused on operational excellence to support long-term profitable growth and enhance shareholder value [3][4] - Plans to optimize the financial center network include closing 27 financial centers and opening new locations in Tennessee and Ohio [9][10] - The strategy emphasizes organic growth through loan production offices (LPOs) and expanding into new markets [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about mid-single-digit loan growth for 2025 despite headwinds from commercial real estate payoffs [8][20] - The company anticipates a rebound in net interest margin during the fourth quarter due to improved funding costs and loan growth [20] - Management highlighted strong customer satisfaction scores and successful integration of the Premier acquisition [6][3] Other Important Information - The company raised $230 million in Series B preferred stock to redeem Series A preferred stock and support general corporate purposes [18][19] - The effective tax rate is expected to be around 19.5% for the year [22] Q&A Session Summary Question: Loan growth and commercial real estate paydowns - Management noted strong loan production with $2.3 billion in new production this year, and expects mid-single-digit loan growth for the remainder of the year despite paydowns [25][27] Question: Margin expectations - Management confirmed expectations for 3 to 5 basis points of quarterly margin expansion, with no significant disruptions anticipated for 2026 [28][29] Question: Impact of branch closures on expenses - Management indicated that branch closures will provide a tailwind to expenses, allowing for potential reinvestment in technology and personnel [38][40] Question: Healthcare team growth potential - The healthcare team has closed about $250 million in loans and could potentially achieve $300 million to $500 million in loans annually [49] Question: Deposit competition - Management stated that deposit competition remains similar to previous quarters, with expectations for relief on deposit pricing due to commercial real estate payoffs [74] Question: Capital management and buyback plans - Management is focused on capital build and indicated that buybacks are less likely in the near term [61][66]

Core Insights - Shore Bancshares reported a net income of $14.3 million for Q3 2025, a decrease from $15.5 million in Q2 2025 and an increase from $11.2 million in Q3 2024 [1][9] - The company demonstrated resilience despite a decline in net income due to a significant marine loan write-off and softer noninterest income, while achieving growth in net interest margin and book value per share [3][9] Financial Performance - Net interest income for Q3 2025 was $48.7 million, up from $47.3 million in Q2 2025 and $43.3 million in Q3 2024, driven by an increase in interest income on loans [19][28] - The net interest margin (NIM) increased to 3.42% in Q3 2025 from 3.35% in Q2 2025, with loan yields rising by 6 basis points and funding costs decreasing by 6 basis points [20][9] - Noninterest income decreased to $7.7 million in Q3 2025 from $9.3 million in Q2 2025, primarily due to reduced mortgage banking revenue [22][9] Asset Quality - Nonperforming assets increased to $28.1 million, or 0.45% of total assets, in Q3 2025, up from 0.33% in Q2 2025, attributed to commercial real estate and consumer loans [13][9] - The allowance for credit losses (ACL) was $59.6 million, representing 1.22% of loans, slightly up from 1.21% at the end of 2024 [9][21] Balance Sheet Highlights - Total assets reached $6.28 billion as of September 30, 2025, a 0.8% increase from $6.23 billion at the end of 2024, primarily due to a $111 million increase in the loan portfolio [4][9] - Total deposits increased by $214.2 million to $5.53 billion in Q3 2025, driven by seasonal growth in municipal deposits [14][9] Capital Ratios - The tangible common equity ratio improved to 7.80% at September 30, 2025, compared to 7.17% at the end of 2024 [5][9] - Tier 1 and Total Risk-Based Capital Ratios were 10.82% and 12.88%, respectively, as of September 30, 2025 [5][9] Efficiency Metrics - The efficiency ratio for Q3 2025 was 61.00%, slightly up from 60.83% in Q2 2025 but significantly improved from 67.49% in Q3 2024 [26][9] - Non-GAAP efficiency ratio was 57.30% for Q3 2025, compared to 56.73% in Q2 2025 and 62.10% in Q3 2024 [26][9]

Financial Data and Key Metrics Changes - Adjusted earnings per share increased by 5.7% quarter-over-quarter and 24.4% year-over-year [3] - Return on assets (ROA) improved to 1.11% from 0.87% in the same quarter last year [3] - Net interest income rose by $2.4 million, or 4.3%, from the prior quarter [6] - Net interest margin increased to 3.64% from 3.51% in the previous quarter [7] - Total capital ratios remain above well-capitalized thresholds, with the tangible common equity (TCE) ratio rising to 9.8% from 9.4% [8] Business Line Data and Key Metrics Changes - Total loan balances decreased by $5.7 million, despite an increase in loan originations [4] - Loan yields in the portfolio were 5.53%, up three basis points from the previous quarter [4] - Total deposits increased by $73 million, with non-interest-bearing deposits rising by $33.7 million [5] - Investment balances decreased by $33 million due to expected principal cash flows [5] Market Data and Key Metrics Changes - The average interest rate for new commercial loans was 6.67%, up 12 basis points from the previous quarter [16] - The deposit pipeline ended the quarter at $149 million, compared to $132 million in the second quarter [16] Company Strategy and Development Direction - The pending merger with Olympic Bank Corp is expected to enhance profitability and growth in the Puget Sound market [3] - The company aims to return to traditional loan growth rates of mid to high single digits in 2026 [25] - The focus remains on managing loan-to-deposit ratios, with a target of reaching 85% [64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in credit quality despite economic volatility, noting no material impact on credit metrics [12] - The company anticipates continued deposit growth and a positive outlook for loan production in the upcoming quarters [17] - Management is closely monitoring the economic environment but sees no immediate threats to loan demand [27] Other Important Information - Non-accrual loans totaled $17.6 million, representing 0.37% of total loans, an increase from 0.21% in the previous quarter [9] - The company halted lost trade activity and did not purchase any securities in Q3 to preserve capital for the acquisition [6] Q&A Session Summary Question: What is the spot cost of deposits and NIM for September? - The spot rate on interest-bearing deposits was 1.87%, and the NIM for September was 3.66% [23] Question: How much opportunity is there to reduce rates on non-maturity deposits? - There is potential to reduce rates on approximately $1 billion in exception-priced deposits currently costing close to 3% [24] Question: What is the outlook for organic loan growth in 2026? - The company expects to return to mid to high single-digit growth rates in 2026, with positive net advances anticipated [25][26] Question: How has competition been trending in the markets? - Competition remains strong, with pricing competition on deposits varying by geography [42] Question: What are the capital priorities post-deal approval and integration? - The focus will be on preserving capital during the transaction costs associated with the merger, with potential for future buybacks to be evaluated later [62]