Question · Q3 2025
Steven Scouton with Piper Sandler asked for clarification on the 1Q2026 expense run rate, confirming the full inclusion of Sandy Spring cost saves. He also inquired about paydown levels in Q3 versus prior quarters and whether future growth relies on slowing paydowns or increased production. Additionally, he sought insight into why the net interest margin guidance range was tightened, removing theoretical upside.
Answer
EVP and CFO Rob Gorman indicated that a $190 million run rate for adjusted operating non-interest expense, excluding amortization, would be a good starting point for 1Q2026, encompassing all Sandy Spring cost saves. President and CEO John Asbury and EVP and Wholesale Banking Group Executive David Ring noted that Q3 paydowns were consistent with prior quarters, with future growth primarily driven by higher production levels rather than a slowdown in paydowns. Rob Gorman explained that the margin guidance adjustment was due to where Q3 ended and a dialing back of accretion income impacts, though core margin expansion is still anticipated.