WSBCO · WSBCO Q2 FY2026 earnings call record财报电话会记录

“At June 30th, our commercial pipeline reached a record $2.3 billion, increasing more than 40% from the prior quarter and 90% since year-end.”

“To highlight a few of the second quarter's year-over-year accomplishments, we grew pre-tax, pre-provision core earnings 11%, driven by strong annualized loan growth of 8.3%.”

“The second quarter margin of 3.63% was consistent with our first quarter outlook and improved 4 basis points year-over-year, primarily due to lower funding costs, and improved 6 basis points sequentially due to asset repricing and 3 basis points or $1.7 million of accretion from unscheduled early payoffs of acquired loans.”

“Gross swap fees were $2.8 million in the second quarter and $4 million on a year-to-date basis, as we are seeing solid customer demand from our commercial swap product and expect to see some meaningful improvement in swap fees in the back half of the year from our new Florida market.”

“Our CET1 ratio at 10.7% as of June 30th was within our targeted range of a 10.5%-11% which allowed us to return capital to our shareholders through the repurchase of approximately 300,000 shares on the open market during the second quarter.”

“We anticipate our net interest margin for the remainder of the year to be relatively consistent to the second quarter around that 3.60% range, as we expect loan growth in the back half of the year to accelerate and initially outpace deposit growth, requiring a blend of higher cost wholesale funding mixed with lower cost deposits.”

“Equipment and software expenses are expected to increase somewhat as compared to 2025 as we continue to invest in products, services, and technology to improve the customer experience and drive revenue growth.”

“Once you get into the kind of 2027, which we're not going to get too detailed there, but we do have one rate hike right now projected in the back half in December of 2026, and we do think that there's some opportunity to boost margin a couple of basis points off of that.”

“Likewise, if we don't grow deposits at the pace that we model, that would provide a little bit of headwind to margin.”

“To the extent that we don't see the loan growth maintaining that 10.7%, say, CET1, and we start to see that tick upwards to 10.8%, 10.9%, 11%, 11.1%, that's when we really start pulling the trigger, I think, on buyback.”

“We saw $0.50 pick up this quarter, and of course, some of that was impacted by the buyback.”

“Once again, with our pipelines being at all-time highs, $2.3 billion, and 30% of that is from LPOs, we feel like we will grow through any sort of potential payoffs.”