Loading...
01/11 13:00
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals strong financial performance with high loan yields and stable funding costs. The Q&A section highlights robust loan growth, particularly in Columbus and the agricultural sector, and plans to manage expenses effectively. Although management was vague about competitive deposit impacts, the overall outlook is positive with expected margin stability and improved credit quality. The company's strategic focus on growth and efficiency, combined with optimistic guidance on mortgage volume, supports a positive sentiment. However, no market cap data limits the prediction's precision.
Net Income $4 million with diluted earnings per share of $0.64, up $0.29 or approximately 83% compared to the prior year quarter. The increase was driven by disciplined lending, core deposit growth, and careful expense management.
Tangible Book Value Per Share Ended the quarter at $17.21, up from $16.49 last year, or a 4.4% increase. Excluding the acquisition payment for Marblehead, it is up 8.9%.
Net Interest Income $12.3 million, an increase of over 21% from the $10.2 million in the third quarter of 2024. The growth was due to disciplined lending and deposit growth.
Loan Growth Approximately $80.6 million, or 7.8%, over the prior year quarter. This marks the sixth consecutive quarter of sequential loan growth.
Deposit Growth Nearly $103 million, or 9%, inclusive of the $51 million in deposits related to Marblehead. Excluding Marblehead deposits, overall deposit growth was 4.5%.
Assets Under Care Now exceed $3.5 billion, consisting of bank assets of $1.5 billion, residential servicing portfolio of $1.5 billion, and wealth assets of over $563 million.
Mortgage Originations $67.6 million, down from both the prior year and linked quarters. However, the pipeline has strengthened slightly with rates at or below 6%.
Operating Expenses Decreased approximately 3% from the linked quarter and up slightly compared to the prior year. Year-to-date expense growth, excluding one-time merger costs, was 9.5%, below the 18.5% year-to-date revenue growth.
Noninterest Income Up 2.9% from the prior year quarter at $4.2 million, but down 15.9% from the linked quarter. The increase from the prior year was driven by increased mortgage servicing rights and title service fees.
Charge-offs Returned to more historic levels, successfully eliminating nearly $1.3 million in nonperforming loans from the linked quarter by way of payoffs and upgrades.
Allowance for Credit Losses Remained robust at 1.44% of total loans, providing 345% coverage of nonperforming assets.
Total Operating Revenue Increased to $16.6 million, a 15.9% rise from the $14.3 million in the prior year. The growth was mainly driven by net interest income.
Loan Income Topped $16 million for the second consecutive quarter, reflecting higher levels of outstandings and contractual repricing of the portfolio.
Loan Yields Reached a new high of 5.95%, up 23 basis points, pushing earning asset yield up 18 basis points to 5.31%.
Funding Costs Total interest expense for the quarter was $6.5 million, up just $113,000 or less than 2% from the prior year. The rate on interest-bearing liabilities was 2.33%, down 19 basis points from the prior year.
Fee Income Fairly consistent at between $4 million and $5 million per quarter. Total mortgage banking contribution was nearly $1.5 million, higher compared to the third quarter of 2024 by over 10%.
Operating Expenses (Detailed) Down from the linked quarter by 3% and up from the prior year by just $500,000 or 4.5%. This includes all operating costs for Marblehead.
Delinquencies Slightly lower than the linked quarter at 45 basis points, with total delinquent loans down $1.7 million from the prior year.
Classified Loans Well down from the prior year by nearly $1.3 million or 21%.
Integration of Marblehead clients: Successfully completed integration of Marblehead clients, adding nearly 2,500 deposit accounts with a weighted average cost of approximately 1.2%.
Mortgage originations: Mortgage originations for the quarter were $67.6 million, down from prior year and linked quarters, but pipeline has strengthened with rates at or below 6%.
Residential loan sale gains: Improved by 13% year-to-date compared to prior year.
Expansion into Napoleon, Ohio: Preparing to enter Napoleon, Ohio, targeting $800 million in deposits in the market.
Agricultural lending expansion: Added an experienced lender in the agricultural production sector, aiming to grow the portfolio from $65 million to $100 million within a year.
Revenue growth: Total operating revenue increased to $16.6 million, a 15.9% rise from the prior year.
Loan growth: Loans grew by $80.6 million (7.8%) year-over-year, marking the sixth consecutive quarter of growth.
Deposit growth: Deposits grew by $103 million (9%), inclusive of $51 million from Marblehead.
Operating expenses: Decreased by 3% from the linked quarter and up slightly compared to the prior year.
Asset quality: Charge-offs fell to 0 basis points, and nonperforming assets reduced to $4.9 million.
Strategic partnership with Advisory Alpha: Transitioning wealth group to a new partnership to expand marketing materials and add CFP professionals.
Hybrid office model: Refining and expanding hybrid office model to enhance client connectivity and efficiency.
Mortgage Originations: Mortgage originations for the quarter were $67.6 million, down from both the prior year and linked quarters. The company has been absent from any meaningful refinance volume in 2025, which could impact revenue from this segment.
Operating Expenses: Operating expenses decreased approximately 3% from the linked quarter but were up slightly compared to the prior year. Year-to-date expense growth, excluding one-time merger costs, was 9.5%, which could pressure margins if revenue growth slows.
Nonperforming Loans: Nonperforming loans totaled $4.9 million, and while progress has been made in reducing these, the company acknowledges room for improvement. The top quartile performing peer group has consistently lower ratios, indicating a potential competitive disadvantage.
Funding Costs: Funding costs are expected to rise in the coming quarters, which could offset margin appreciation and impact profitability.
Economic Conditions: The operating environment remains competitive, and economic uncertainties could impact the company's ability to maintain its growth trajectory.
Agricultural Lending: The company is expanding its agricultural lending portfolio, but this sector can be volatile and subject to external risks such as weather and commodity price fluctuations.
Integration of Acquisitions: While the integration of Marblehead clients and operations has been successful, future acquisitions may pose challenges in maintaining customer retention and operational efficiency.
Loan Portfolio Concentration: The majority of loan growth has occurred in the Columbus market and in the commercial real estate product line, which could expose the company to geographic and sector-specific risks.
Market Expansion: The company is preparing to enter a new market in Napoleon, Ohio, targeting $800 million in deposits. This expansion is expected to drive growth and leverage the community bank brand.
Loan Growth: The company anticipates delivering high single-digit loan growth in 2026, funded by bond portfolio runoff, 4%-5% deposit growth, and targeted wholesale borrowings.
Deposit Growth: Deposit growth is projected at 4%-5% in 2026, with a focus on maintaining a stable deposit franchise.
Interest Rate Environment: The company expects further reductions by the Federal Reserve, potentially expanding mortgage volume and providing a tailwind for performance in the final quarter of 2025.
Agricultural Lending: The company plans to expand its agricultural lending portfolio from $65 million to $100 million within a year, supported by the addition of an experienced lender in the ag production sector.
Operational Efficiency: The company aims to maintain strong asset quality metrics and reduce nonperforming assets to a target level of 25 basis points in the coming quarters.
Capital Management: The company plans to continue share repurchases and maintain a dividend payout, with a focus on enhancing shareholder value.
Dividend Announcement: A dividend of $0.155 per share was announced, equating to a 3.1% yield and representing 24% of the company's earnings. This marks the 13th consecutive year of increasing the annual dividend payout to shareholders.
Share Repurchase Program: During the quarter, 101,000 shares were repurchased at an average price of just under $20, totaling $4.5 million for the year. This represents 45% of the company's earnings and has reduced the share count, contributing to an increase in tangible book value per share.
The earnings call reveals strong financial performance with high loan yields and stable funding costs. The Q&A section highlights robust loan growth, particularly in Columbus and the agricultural sector, and plans to manage expenses effectively. Although management was vague about competitive deposit impacts, the overall outlook is positive with expected margin stability and improved credit quality. The company's strategic focus on growth and efficiency, combined with optimistic guidance on mortgage volume, supports a positive sentiment. However, no market cap data limits the prediction's precision.
The earnings call highlights strong financial performance with increased mortgage originations, commercial real estate loans, and noninterest income. Despite a slight increase in operating expenses, the company maintains a robust allowance for credit losses and anticipates improved asset quality. Optimistic guidance in mortgage and loan growth, along with stable net interest margin projections, further support a positive outlook. The Q&A section reinforces this sentiment, with management expressing confidence in achieving ambitious targets and managing expenses effectively. Overall, these factors suggest a likely positive stock price movement in the short term.
The earnings call shows mixed signals: strong loan growth, improved net interest income, and a record high in deposits are positive. However, challenges in mortgage origination, increased operating expenses, and potential risks in asset quality are concerning. The Q&A section reveals some uncertainty around loan growth and economic factors. Despite a dividend increase and share repurchase, these positives are offset by the cautious outlook on deposits and margins. Given these mixed factors, the stock price is likely to remain stable, hence a neutral sentiment.
The earnings call presents a mixed picture. While there's growth in deposits, mortgage originations, and net interest income, challenges like regulatory issues, supply chain difficulties, and acquisition risks persist. The Q&A highlights management's cautious approach, especially concerning the Marblehead acquisition. Despite shareholder returns via dividends and buybacks, slight declines in net income and EPS, along with increased expenses, suggest balanced sentiment. The stock price is likely to remain stable over the next two weeks, as positive developments are offset by ongoing concerns and uncertainties.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
