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, reflecting a significant impact from the acquisition of Bancorp Financial [5] - The tangible equity ratio declined by 42 basis points to 10.41%, but remains 27 basis points higher than the same period last year [7] - Net interest margin improved to 5.05%, a 20 basis point increase from the previous quarter and 41 basis points year-over-year [8][18] Business Line Data and Key Metrics Changes - Total loans increased by $1.27 billion, primarily due to $1.19 billion of loans acquired with Bancorp Financial [9] - Non-interest income increased by $2.1 million compared to the prior year, driven by a 26.1% increase in wealth management fees [13] - Non-interest expense rose by $19.7 million compared to the prior linked quarter, largely due to acquisition costs [15] Market Data and Key Metrics Changes - The loan-to-deposit ratio increased to 91.4% as of September 30, 2025, compared to 83.3% last quarter [9] - The total cost of deposits was 1.33%, up from 0.84% in the previous quarter [8] Company Strategy and Development Direction - The company is focused on the effective integration of Evergreen Bank Group and optimizing the balance sheet post-acquisition [15] - A 17% increase in the common dividend reflects confidence in the company's performance [25] - The company aims to maintain core expense growth around 4% into 2026, excluding impacts from the Evergreen acquisition [23] 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 [25] - The company anticipates a low single-digit growth rate in 2025, supported by robust pipelines in various sectors [63] - Management is confident in the credit quality and collateral positions despite some increases in non-performing loans [10][69] Other Important Information - The allowance for credit losses on loans increased to $75 million, or 1.43% of total loans, reflecting adjustments related to the acquisition [11] - The company is well-prepared for potential economic challenges and has a strong capital position [20] Q&A Session Summary Question: Potential runoff of exception price deposits - Management indicated a couple hundred million dollars in market-priced funding, with a goal to transition back to core deposit types over the next 6 to 18 months [27][28] Question: Future originations in PowerSport - The focus remains on originating loans across all tiers, with a historical emphasis on the top two tiers [30][31] Question: Loan growth outlook - Management expects low to mid-single-digit growth heading into 2026, with strong pipelines in various sectors [63][87] Question: Charge-off trajectory - Charge-offs were primarily administrative, with a positive outlook on credit quality moving forward [54][69] Question: M&A strategy - The company is open to future acquisitions, particularly focused on deposit-heavy opportunities [73][74] Question: Wealth management growth - Wealth management fees saw a significant increase, with expectations for continued growth [78][80]