Financial Data and Key Metrics Changes - Net income for Q3 2025 was $9.9 million or $0.18 per diluted share, with a return on assets of 0.56% and a return on average tangible common equity of 6.16% [4] - Excluding adjusting items, net income was $28.4 million or $0.53 per diluted share [5] - The net interest margin improved to 5.05%, a 20 basis point increase from the previous quarter and a 41 basis point increase year over year [7][19] - Common equity Tier one decreased to 12.44% from 13.77% in the previous quarter, but remains stable compared to the same period last year [7] Business Line Data and Key Metrics Changes - Total loans increased by $1.27 billion from the previous quarter, primarily due to the acquisition of Bancorp Financial [8] - Non-interest income increased by $2.1 million compared to the prior year, driven by a 26.1% increase in wealth management fees [13] - The allowance for credit losses on loans increased to $75 million, or 1.43% of total loans, reflecting the acquisition's impact [12] Market Data and Key Metrics Changes - The total cost of deposits rose to 133 basis points from 84 basis points in the prior linked quarter [8] - The loan to deposit ratio was 91.4% as of September 30, 2025, compared to 83.3% in the previous quarter [8] Company Strategy and Development Direction - The company is focused on the effective integration of Evergreen Bank and optimizing the balance sheet post-acquisition [15] - A 17% increase in the common dividend was announced, reflecting confidence in the company's performance [28] - The company aims to reduce reliance on wholesale funding and is interested in acquiring additional deposits [16][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the remainder of 2025 following the Evergreen acquisition and the onboarding of new team members [28] - The company anticipates a low to mid single-digit growth rate heading into 2026, supported by robust pipelines in various sectors [82] - Concerns about credit quality were downplayed, with management indicating that most classified assets are well-collateralized [50] Other Important Information - The company recorded $5.1 million in net loan charge-offs, primarily from the powersports portfolio [11] - Non-interest expense increased by $19.7 million compared to the prior linked quarter, largely due to acquisition costs [15] Q&A Session Summary Question: Potential runoff of exception price deposits - Management indicated there is about $200 million in market-priced funding, with a goal to replace it with more traditional deposits over the next 6 to 18 months [31][34] Question: Future originations in Power Sport - The focus will be on originating across all tiers, with a historical emphasis on the top two tiers [36] Question: Loan growth outlook - Management expects low to mid single-digit growth heading into 2026, with a strong pipeline in various sectors [82] Question: Charge-off trajectory - Charge-offs are expected to stabilize around 30 basis points, with management optimistic about credit quality [48] Question: Margin expectations - Management does not anticipate significant movement in margins, suggesting a stable outlook [95]