Question · Q3 2025
Michael Edward Rose with Raymond James & Associates asked for further insight into the net interest margin trajectory, specifically if the 3.27% September NIM is a good starting point for Q4 and if further rate cuts would lead to continued expansion or eventually be offset by deposit competition and lower loan rates. He also questioned the expected expense growth for the next year, considering both stability and planned investments, and inquired about any updated thoughts on potentially restructuring the securities portfolio given current capital allocation.
Answer
CFO Rob Anderson confirmed 3.27% as a good starting point for Q4 NIM, expecting expansion with further rate cuts due to the bank's liability-sensitive profile and aggressive money market rate cuts. He highlighted the significant opportunity to improve earnings by rebalancing the securities portfolio, which currently yields 3%. Regarding expenses, Rob Anderson projected the $13 million quarterly run rate to increase slightly next year due to new sales-facing hires, aiming for a low 50s efficiency ratio. He stated that securities portfolio restructuring is always on the table, but the recent share repurchase was a unique opportunity, and any future action would depend on interest rates and earn-back.