Financial Data and Key Metrics Changes - The company reported a net income of $22.5 million for the quarter, with a net interest margin (NIM) of 4.59%, return on equity (ROE) of 17.64%, and return on assets (ROA) of 2.13% [3][12] - Diluted earnings per share (EPS) were $2.67, and tangible book value was reported at $59.98 [3][12] Business Line Data and Key Metrics Changes - Loan purchases amounted to $152.7 million with an invested amount of $144.6 million, marking one of the largest purchase quarters in recent years [4] - Originations totaled $134 million, with a notable decrease in the originated loan book by $39 million, while the purchase loan book increased by $31 million [6][12] - The SBA activity included funding of $42 million and sales of $53 million, with a significant decrease in gains due to changes in SBA rules [5][14] Market Data and Key Metrics Changes - The company noted a robust origination pipeline, with a strong performance in the real estate and financing markets, despite some loan payoffs [8][10] - The average loan balances decreased by $92 million compared to the previous quarter, impacting interest income [7][12] Company Strategy and Development Direction - The company is optimistic about its new insured small business loan product with NUITY, which has seen a strong start since its launch [9] - There is a focus on maintaining a disciplined credit approach while pursuing growth opportunities in both purchased and originated loans [10][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future loan growth, citing a healthy pipeline and the expectation of increased demand once the government reopens [24][52] - The company is closely monitoring asset quality and has implemented measures to mitigate risks associated with fraud in lender finance [43][45] Other Important Information - The company experienced a decrease in total assets from $4.28 billion to $4.17 billion, attributed to paydowns and payoffs [12] - Capital remains strong with a tier one leverage ratio of 12.21% [13] Q&A Session Summary Question: Changes in cost structure with NUITY - The cost structure changed to a flat fee per loan submitted instead of a split in the gain on sale [20] Question: Expectations for SBA loan gains in Q4 - Uncertainty exists due to variables like the government shutdown, but a ramp-up in activity is expected once operations resume [24] Question: Increase in professional fees - Temporary employees and heightened legal fees related to new products contributed to the increase [25] Question: Health of lender finance portfolio - The company maintains a robust monitoring system to mitigate fraud risks and is comfortable with asset quality [43][45] Question: Visibility on loan payoffs this quarter - A larger amount of payoffs than typical was observed, impacting transactional income [48] Question: Lower tax rate this quarter - Changes in state apportionment laws and stock vesting contributed to the lower tax rate, with expectations of a 31% to 32% effective tax rate going forward [53][54]