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Date
Friday, Oct. 24, 2025, at 8:30 a.m. ET
Call participants
- President and Chief Executive Officer — Archie Brown
- Chief Financial Officer — Jamie Anderson
- Chief Credit Officer — Bill Harrod
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Takeaways
- Adjusted net income -- $72.6 million, resulting in adjusted earnings per share of $0.76.
- Net interest margin -- 4.02% net interest margin, a three-basis-point decrease from the linked quarter.
- Non-interest income -- $73.6 million, achieving a new record for the company and comprising 31% of total adjusted net revenue.
- Asset quality -- Non-performing assets remained flat as a percentage of total assets at 41 basis points; net charge-offs annualized at 18 basis points.
- Loan balances -- Decreased by $72 million, mainly due to declines in Oak Street, ICRE, and C&I portfolios, partially offset by growth in Summit and Consumer segments.
- Average deposit balances -- Increased by $157 million, with growth in brokered CDs and money market accounts offsetting a decline in public funds.
- Efficiency initiatives -- Full-time equivalent headcount has been reduced by approximately 200, or 9%, since the launch of the initiative two years ago.
- Allowance for credit losses (ACL) -- Coverage increased to 1.38% of total loans, up four basis points from the prior quarter; provision expense was $9.1 million, driven primarily by net charge-offs.
- Tangible book value per share -- Rose to $16.19.
- Tangible common equity (TCE) ratio -- Increased 47 basis points from June 30 to 8.87% at quarter-end.
- Operating expense -- Led by higher incentive compensation tied to record fee income.
- Pending acquisitions -- Regulatory approval received for the Westfield transaction, with closing anticipated in early November and an expected $8 million expense impact for November and December 2025.
- Q4 guidance -- Expected annualized mid-single-digit loan growth, core deposit increases expected, net interest margin projected at 3.92%-3.97% (assuming two 25 basis point rate cuts), and fee income guided between $77 million and $79 million (including $18 million-$20 million from foreign exchange and $21 million-$23 million from leasing business).
- Shareholder capital return -- 33% of earnings returned via common dividend.
- NDFI portfolio -- $434 million in balances at quarter-end, primarily in high-investment grade REITs and securitizations, with no adversely rated credits.
Summary
First Financial (FFBC 0.95%) reported its highest non-interest income in company history, driven by leasing, foreign exchange activities, and increased syndication fees. The company achieved record revenue alongside sequential increases in tangible book value and capital ratios, despite a modest loan balance decline attributed to specialty business activity and higher construction originations. Management confirmed a stable credit outlook, steady asset quality, and reaffirmed efficiency gains, with further improvements anticipated following integration of pending acquisitions.
- Jamie Anderson stated, "Adjusted net income was $72.6 million or $0.76 per share for the quarter."
- The company forecasts a 120 basis point decrease in tangible common equity ratio following the all-cash Westfield closing, with future buybacks evaluated after two to three quarters based on capital levels and trading multiples.
- "We expect our fourth-quarter credit cost to approximate third-quarter levels and ACL coverage to remain stable as a percent of loans," according to management's forward-looking commentary.
- Workforce efficiency initiatives have reached about 90% completion for legacy operations, while modeled cost savings from Westfield and Bank Financial are projected to primarily materialize in 2026.
Industry glossary
- ICRE: Investor Commercial Real Estate, a loan portfolio category focused on income-producing properties not occupied by the borrower.
- Summit: First Financial's specialized business unit focused on equipment leasing and related financing activities.
- Oak Street: Internal portfolio or business line at First Financial transacting in specialty finance assets; context references commercial verticals subject to higher payoff rates.
- NDFI: Non-Depository Financial Institutions; a lending portfolio targeting financial firms not holding customer deposits, such as REITs and certain asset managers.
- Bannockburn: The company's foreign exchange services subsidiary, contributing to fee income.
- ACL: Allowance for credit losses; a reserve representing management's estimate of expected future credit losses in the loan portfolio.
Full Conference Call Transcript
Archie Brown: Thanks, Scott. Good morning, everyone, and thank you for joining us on today's call. Yesterday afternoon, we announced our financial results for the third quarter. 2025 was another outstanding quarter for First Financial. Adjusted net income was $72.6 million, and adjusted earnings per share were $0.76, which resulted in an adjusted return on assets of 1.55% and an adjusted return on tangible common equity of 19.3%. We achieved record revenue in the third quarter, driven by a robust net interest margin and record non-interest income. We have successfully maintained asset yields while moderating our funding costs, which combined to result in an industry-leading net interest margin.
In addition, our diverse income streams remained a positive differentiator for us, with our adjusted non-interest income representing 31% of total net revenue for the quarter. Expenses continue to be well managed. Excluding incentives tied to strong performance and the record fee income, total non-interest expenses were flat compared to the second quarter. Our workforce efficiency efforts continued during the period, and to date, we have successfully reduced our full-time equivalents by approximately 200 or 9% since we began the initiative two years ago. We expect further efficiencies subsequent to the integration of our pending acquisitions. Loan balances declined modestly during the quarter, falling short of our expectations.
Lower production in our specialty businesses, along with a greater percentage of construction originations, which fund over time, drove the modest decline. Loan pipelines are very healthy as we enter the fourth quarter, and we expect to return to mid-single-digit loan growth to close out the year. Asset quality metrics were stable for the third quarter. Non-performing assets were flat as a percent of assets, and annualized net charge-offs were 18 basis points, which was a slight improvement from the linked quarter. We are very happy that our strong earnings led to continued growth in tangible book value per share and tangible common equity during the quarter.
Tangible book value per share of $16.19 increased 5% from the linked quarter and 14% from a year ago, while tangible common equity increased 47 basis points from June 30 to 8.87% at the September. I will now turn the call over to Jamie to discuss these results in greater detail. After Jamie is done, I will wrap up with some additional forward-looking commentary and closing remarks. Jamie?
Jamie Anderson: Thank you, Archie, and good morning, everyone. Slides four, five, and six provide a summary of our most recent financial results. The third quarter was another exceptional quarter with outstanding earnings, robust net interest margin, and record fee income. Net interest margin remains very strong at 4.02%. Asset yields declined slightly while we managed deposit costs to a modest increase. Loan balances declined slightly during the quarter as production slowed in our specialty lending areas and slower funding construction originations increased as a percentage of the portfolio. Average deposit balances increased $157 million due to higher broker deposits and money markets, offset by a seasonal decline in public funds.
We maintained 21% of our total balances in non-interest-bearing accounts and remain focused on growing lower-cost deposit balances. Turning to the income statement, third-quarter fee income was another record, led by our leasing and foreign exchange businesses. Additionally, we had higher syndication fees and income on other investments. Non-interest expenses increased from the linked quarter due to an increase in incentive compensation, which is tied to fee income. Our efficiency efforts continue to impact our results positively and remain ongoing. Our ACL coverage increased slightly during the quarter to 1.38% of total loans. We recorded $9.1 million of provision expense during the period, which was driven by net charge-offs.
Overall, asset quality trends were in line with expectations, with lower net charge-offs and non-performing asset balances remaining flat. Net charge-offs were 18 basis points on an annualized basis, while NPAs and classified assets were both relatively flat for the period. From a capital standpoint, our ratios are in excess of both internal and regulatory targets. Tangible book value increased $0.79 to $16.19, while our tangible common equity ratio increased 47 basis points to 8.87%. Slide seven reconciles our GAAP earnings to adjusted earnings, highlighting items that we believe are important to understanding our quarterly performance. Adjusted net income was $72.6 million or $0.76 per share for the quarter.
Non-interest income was adjusted for a small loss on the sale of investment securities, while non-interest expense adjustments exclude the impact of acquisition and efficiency costs, tax credit investment write-downs, and other expenses not expected to recur. As depicted on Slide eight, these adjusted earnings equate to a return on average assets of 1.55%, a return on average common equity of 19%, and a pre-tax pre-provision ROA of 2.15%. Turning to slides nine and ten, net interest margin decreased three basis points from the linked quarter to 4.02%. Asset yields declined two basis points from the prior quarter, while total funding costs increased one basis point.
Slide 12 illustrates our current loan mix and balance changes compared to the linked quarter. Loan balances decreased $72 million during the period. As you can see on the right, the decline was driven by decreases in the Oak Street, ICRE, and C&I portfolios, which outpaced growth in Summit and Consumer. Slide 14 shows our deposit mix as well as the progression of average deposits from the linked quarter. In total, average deposit balances increased $157 million during the quarter, driven primarily by a $166 million increase in brokered CDs and a $106 million increase in money market accounts. These increases were offset by a seasonal decline in public funds. Slide 16 highlights our non-interest income for the quarter.
Total fee income increased to $73.6 million during the quarter, which was the highest quarter in the history of the company. Bannockburn and Summit both had solid quarters. Additionally, other non-interest income increased $2.8 million for the quarter due to higher syndication fees and elevated income on other investments. Non-interest expense for the quarter is outlined on slide 17. Core expenses increased $5.7 million during the period. This was driven by higher incentive compensation related to fee income and the overall strong performance by the company. Turning now to slides eighteen and nineteen.
Our ACL model resulted in a total allowance, which includes both funded and unfunded reserves, of $180 million and $9.1 million of total provision expense during the period. This resulted in an ACL that was 1.38% of total loans, which was a four-basis-point increase from the second quarter. Provision expense was primarily driven by net charge-offs, which were 18 basis for the period. Additionally, our NPAs to total assets held steady at 41 basis points, and classified asset balances totaled 1.18% of total assets. We continue to believe that we have modeled conservatively to build a reserve that reflects the losses we expect from our portfolio.
We anticipate our ACL coverage will remain relatively flat in future periods as our model responds to changes in the macroeconomic environment. Finally, as shown on slides twenty and twenty-one, capital ratios remain in excess of regulatory minimums and internal targets. During the third quarter, tangible book value increased to $16.19, while the TCE ratio increased 47 basis points to 8.87%. Our total shareholder return remains strong, with 33% of our earnings returned to our shareholders during the period in the common dividend. We maintain our commitment to provide an attractive return to our shareholders, and we continue to evaluate capital actions that support that commitment.
I will now turn it back over to Archie for some comments on our outlook.
Archie Brown: Thank you, Jamie. Before we conclude our prepared remarks, I want to comment on our outlook for the fourth quarter, which can be found on Slide 22. As we close the year, we expect origination volumes to increase, which should accelerate our growth. Specific to the fourth quarter, excluding Westfield, we expect loan growth to be in the mid-single digits on an annualized basis. We expect core deposit balances to increase and combine with seasonal public fund inflows to result in strong deposit growth.
Our net interest margin remains among the highest in the peer group, and we expect it to be in a range between 3.92-3.97% over the next quarter, assuming a 25 basis point rate cut in both October and December. This includes a modest bump in margin from the addition of Westfield in early November. We expect our fourth-quarter credit cost to approximate third-quarter levels and ACL coverage to remain stable as a percent of loans. We are estimating fee income to be between $77 million and $79 million, which includes $18 million to $20 million for foreign exchange and $21 million to $23 million for the leasing business revenue. This range includes the expected impact from Westfield.
Non-interest fee expense is expected to be between $142 million and $144 million and reflect our continued focus on expense management. This range includes the impact from Westfield, which is expected to be approximately $8 million for the months of November and December. While we remain confident that we will realize our modeled cost savings, we expect the majority of those savings to materialize in 2026 once Westfield has been fully integrated. With respect to our pending acquisitions, we have received formal regulatory approval for the Westfield transaction and anticipate closing in early November. Our initial preparations for the bank financial close are underway, and we are more excited than ever to expand our reach into the Chicago market.
We have filed the necessary applications and expect to receive approval from the regulators in the coming months, eyeing a close during 2026. We are very excited to have the Westfield Panbank Financial Associates join our team. In summary, we are very proud of our financial performance for the first nine months of the year, which resulted in industry-leading profitability. We expect to have another strong quarter to close 2025 and build positive momentum as we head into 2026. With that, we will now open up the call for questions.
Operator: Thank you. We will now begin the question and answer session. Your first question today comes from the line of Brendan Nosal from Hoe Group. Your line is open.
Brendan Nosal: Hey. Good morning, everybody. Hope you are doing well. Morning, Brett. Maybe just starting off here on a topic that's of interest today. NDFI loan exposure. I think if I look at your reg filings from last quarter, it's a little over $50 million or 4% of loans. I know that it's not huge, but can you just kind of walk us through that book? And let us know whether that exposure falls into any of the known commercial verticals that you already have today. Thanks.
Archie Brown: Yeah. Brenda, no. We will have Bill Harrod cover that, Wendell.
Bill Harrod: Alright. Great. We have, as of the end of the quarter, about $434 million in the NDFI portfolio. It's a diversified, conservatively managed, and anchored in high investment grade tier, with currently no adversely rated credit. The bulk of the portfolio is made up of traditional REITs of about $3.4 million across 46 notes, averaging about $7 million consisting of a variety of publicly traded or privately held entities with investment grade or equivalent. We do have a securitization book within that portfolio of $73 million across seven relationships with loan structure used in S&P methodology to high investment grade ratings. And we monitor those on a monthly basis with borrowing basis and independent third-party exams on a routine basis.
And that makes up the bulk of what we have in the NDFI portfolio.
Brendan Nosal: Awesome. That's really helpful color. Thanks for sharing that prep for us. Maybe turning to the net interest margin, totally get the guide for next quarter, no surprise given recent and forthcoming rate cuts. I am just kind of curious though if we get those two cuts in the fourth quarter, how should we think about margin early in next year? I think in the past you said that each cut is five to six basis points of near-term pressure before it grinds back up on lagged funding costs. So any color there would be helpful.
Jamie Anderson: Yes, Brendan, this is Jamie. So on the margin and again so the other thing you have to keep in mind is we have Westfield coming into the mix. So that's going to create a little bit of noise, and it actually helps us going forward here. Mitigate a little bit of our asset sensitivity. So but if you look at kind of the legacy the legacy company in the margin, the way that it reacts to those 25 basis point cuts, like I said, and you mentioned it as well, we get about five basis points of margin pressure for each of those 25 basis point cuts.
And it you know, the way of the timing of that way that, the way that will kind of fold in is you get a, you know, a little bit more pain immediately from the from the cut. And then as deposit costs catch up, you know, we start to actually move that move that back up. But really five basis points of pressure. So if you think about our margin right now, in that four range, if we get those two, then we kind of start the year in that $3.9 ish. In that $3.90 ish range.
But then when you factor in Westfield, you know, and with the purchase accounting and how that will work, know, we get a little bit of improvement in the margin from them. So that starts to help mitigate some of that pressure if we have those expected rate cuts here at the end of the year.
Brendan Nosal: Yep. Yep. Okay. That makes sense. Thank you for taking my questions.
Bill Harrod: Thanks, brother.
Operator: Your next question comes from the line of Schulie from KBW. Your line is open.
Mark Schulie: Hey guys, good morning.
Archie Brown: Good morning, Mark.
Mark Schulie: Maybe one more on the margin. I am trying to think about, you know, on the asset side, loan yields were strong and actually ticked up in the quarter. So I was just curious like what new loan originations are coming on today with you guys sort of returning to growth and what you are expecting for the total sort of portfolio yield in the near term?
Archie Brown: Yeah. Mark, this is Archie. I will start and Jim, you can kind of come in to me if you want to amplify. But you know, the rate cut certainly that we had affects, origination yields as well. And so we are probably before the cut around seven on origination yields and it's closer, I guess, like high six is so you said six eighty, six ninety. And it's going to come in closer to the mid sixes. When you look at the month of September, it was probably right around six fifty, maybe six fifty unchanged.
So we would say sort of right now in that range it may triple drop down a little bit more with some more rate cuts because again, lot of we do is commercial oriented tied to variable rates.
Jamie Anderson: Yeah. And, Mark, I mean, like, we have talked about in, in previous quarters, you know, if you again, looking at the legacy First Financial portfolio absent Westfield, we still have about 60% of our loan book that, that moves on the short end. So obviously, those, cuts will impact the yield, with on the loan side.
Mark Schulie: Yeah. That makes sense. And then maybe just on the growth, so you mentioned pipelines are strong, and I was just curious, like, what specific verticals or markets you expect to drive that growth, you know, over the next couple quarters? Thanks.
Archie Brown: Yeah, Mark, this is Archie again. Yes, maybe talk about loan growth kind of overall. Our production, if you just look at total commitments, Q3 was on par with Q2. So pretty strong. I would argue strongest of the year in both cases. But we saw the actual fundings from that drop compared to what we saw in prior quarter. So lower fundings, primarily construction related then we did see a dip in line utilization on the commercial side. That accounted for a little bit of the little bit of lower overall growth in the quarter. As we look in Q4, strong commercial, is the biggest driver.
We have, you different verticals within commercial, but strong commercial is the big driver. Summit funding this is always their peak quarter for production. So that will be another big driver. Commercial real estate will have a little bit of growth is what we are projecting in Q4. And probably the only vertical that has a little bit of pressure is in our Oak Street group. Just looks like they have got a lot more payoff pressure that we are expecting here in Q4. But the combination of it all gets you to the number that we are projecting of 5% annualized growth.
Mark Schulie: Yeah. That makes sense. Appreciate the color. Thanks for taking my questions.
Archie Brown: Thanks, Mark.
Operator: Your next question comes from the line of Daniel Tamayo from Raymond James. Line is open.
Daniel Tamayo: Thank you. Good morning, guys.
Archie Brown: Morning, Danny.
Daniel Tamayo: Maybe just one on the fees and expenses. So the 4Q guide pulling out Westfield just for a second was higher than you know, what I you know, what we were looking for and certainly what the three q number was. Just curious, you know, if there's something seasonal, unusual, unique in the fourth quarter or maybe if you can kind of give us some indication of what the run rate would look like going into '26?
Jamie Anderson: Yes. Danny, it's Jamie. Really, the big impact from the third quarter to the fourth quarter in that, like, again, I think you are looking at just x Westfield kind of the legacy First Financial numbers is really from Bannockburn. The forecast that we are getting from them for the fourth quarter is a little higher even than what we had in the strong third quarter. A little bit of bump as well as on Summit related to the operating leases. And then and then our wealth our wealth department, especially on the on the m and a and investment banking side up just a little bit. From that division that we have there.
So it's really those three areas primarily though driven by Bannockburn. And they and like, we have we have talked before, Danny. I mean, they can that can bounce around a little bit. So, I mean, to, to kind of talk about that, you know, long, long term, we look at that business kind of year over year now as growing, you know, in that, you know, in that generally, in that 10% range.
Archie Brown: Yeah. And, Jane, those are all commission based kind of businesses. So when they do well, you are going to see more commission paid out, which drives the salary cost.
Daniel Tamayo: Yep. That's great. No. It's very helpful. Excuse me. And you know, my other question, I guess, on the on the credit side. So a good quarter from a credit perspective. Guiding to similar credit costs. Just curious how long you think those play out. I in the past, we have talked about a little bit higher run rate on the charge off side. Any read throughs in the in the near term past the fourth quarter on credit?
Archie Brown: Dan, this is Archie. I do not I mean, I think it's kind of steady as we go. We have we have I think, been saying all year 25 to 30 basis points kind of mid-20s. It seems to be the run rate for us in the current environment. And I think over a period of quarters, that's what we would expect.
Daniel Tamayo: Understood. Okay. And then lastly, on the capital front, so you got the two deals closing here. In the near term. Take a little bit of a hit to capital. But curious, you will still have pretty strong CET1 how you are thinking about buybacks? You probably think that stock is a little undervalued right now. Once we get past the deals, like if there's a bogey you are looking at on the capital side or you know, any color with it there would be would be great.
Jamie Anderson: Yeah, Danny. This is Jamie. So, yeah, I think you said it well. What we will do here over the next really, probably two to three quarters is you know, let the deals flow in and kind of see where we are shaken out in terms of capital ratios at that point. I mean, we are building, TCE relatively and tangible book value relatively quickly at this point. And we will take the TCE takes about 120 basis point hit.
In the once we close the Westfield deal just because of the all cash nature of it, And then we will let the next two or three quarters kind of play out and then see where we are and see where we are trading in terms of, you know, multiple at that point. You know, if we are trading anywhere in that, you know, one fifty of tangible book value or below, you know, we would we would potentially look at buybacks at that point.
Daniel Tamayo: Great. Thanks for all the color, guys. Appreciate it.
Jamie Anderson: Talk to you, Danny.
Operator: Your next question comes from the line of Terry McEvoy from Stephens. Your line is open.
Terry McEvoy: Hi, thanks. Good morning, everybody.
Archie Brown: Good morning, Terry.
Terry McEvoy: Talking to some of the other banks that are in your metro markets in your footprint, kind of surprised with the deposit competition a bit stronger than I would have guessed in your cost of funds up a few basis points quarter over quarter. So can you maybe just talk about deposit competition and you did not have loan growth this quarter next quarter you are guiding towards that. Does that kind of drive those deposit costs higher as you look to fund that growth?
Archie Brown: Yes, Terry, this is Archie. I will start. It was modestly up for the quarter. I mean, I would argue that it was flattish. And with the rate cut that occurred, we did take some I think, decisive actions on the deposit side that went into effect really this quarter. So now we have more short-term rate cuts coming, but we would expect a reduction in our deposit cost going forward Q4. I mean, it was pretty did a pretty aggressive cut. And, yeah, we are mean, the market's competitive, but if you look at our loan to deposit ratio, and we felt, even with some loan growth, we felt we could take a little bit more aggressive actions.
And we will look to do more here with more Fed cuts. And then I think one of the things we like about Bank Financial, again, one, they have lower deposit and funding costs than we do. And that market from what we can see, still has a little more rational pricing than what we are seeing here kind of in Southwest Ohio.
Jamie Anderson: Yes, the other thing, Terry, to keep in mind, I mean, we do have the a little bit higher some loan growth in the fourth quarter and then going forward. But we do not think that puts a lot of pressure on our deposit cost because of the liquidity that we get coming in and the and especially in the bank financial deal. If it closes in the '26, So they already have a relatively low loan to deposit ratio, and then we are selling the multifamily portfolio, which will then create even more liquidity for us to utilize for loan growth or to pay off borrowings or to reinvest.
Terry McEvoy: That's great. Thank you. And nice to see the FX trading and the 4Q guide higher at 18% to percent. I just want to make sure that run rate looking out into 26%, do you think that is more consistent of year or is this more of just a couple of strong quarters and next year we will go back to some of your prior comments on the outlook for that revenue line?
Archie Brown: Well, certainly Q4 would be a peak for them, Terry, if they hit the numbers that are being projected. And as Jamie said, it sort of bounces around. We look at it more on kind of annual or kind of four-quarter basis rolling even. They will we have owned them now for quite a while, and what we have observed is they grow they may flatten out a little bit, then they another growth spurt. But if you think 5% to 10% kind of growth rate, I think you are in the ballpark for what we would expect them to do.
Jamie Anderson: Yeah. Terry, and this is Jamie. As we get into as we look out kind of in the twenty-six, I mean, that will I would not annualize this fourth quarter number that we are talking about. So I would look more into '26 at like a $65 million to $70 million you know, type of a run rate for them.
Terry McEvoy: Perfect. Again, thanks for taking my questions. Have a nice weekend.
Archie Brown: Thanks, Terry.
Jamie Anderson: Thank you, Derek.
Operator: Your next question comes from the line of Jon Arfstrom from RBC. Your line is open.
Jon Arfstrom: Good morning guys.
Archie Brown: Hey, John.
Jon Arfstrom: Hey. Jamie, in your prepared comments, touched on the workforce efficiency efforts. Can you talk a little bit about where you are in that journey? And then when you look at the two acquisitions, what kind of opportunities do you see there? Because seems like you are, you know, you are going to apply this framework over the top of those two deals.
Archie Brown: Yes, John. This is Archie. I will start. We are probably 90% of the way through the company. First Financial legacy company now. So there's a little bit left in some areas, but it's probably going to be a couple of quarters more to get a little bit of opportunity out of those areas. So I think we alluded to in our comments that we think the opportunity to continue to get efficiency comes from the two acquisitions. And I think in the Westfield case, we had said around 40% expense reduction from the combination. And we are I think we are well on our way to achieve that, maybe slightly exceed it.
Bank Financial was maybe just a little bit less because there's a bigger branch count. But what we had modeled, again, we are well on our way to exceed that. And that includes us in both those markets adding back roles to drive more revenue. Some of the businesses we have that maybe those banks did not have we are adding appropriate people to help us grow in those markets. And even with that, we would still achieve the expense that we have reductions that we modeled in those deals.
Jon Arfstrom: Yeah. That makes sense. Yes, some good opportunities there, obviously, for production. And Terry took a couple of my questions on deposits. But Jamie, can you just remind us of the typical seasonal flows on deposits that you see in the in the fourth quarter?
Jamie Anderson: Yeah. So we just to yeah. To remind you and everybody else, we get a seasonal bump in public funds mainly from Indiana, property taxes are due. So we get those in May and November. And so, typically, we will get call it, around a $150 to $200 million kind of extra you know, of deposits in those, in those quarters on average. And then they a little bit more skewed, I would say, to the to the second quarter, but call it $150 million to $200 million in both of those quarters. And then and then they run out in the in the subsequent quarter and kind of go back down to the base level.
But that's pretty much like clockwork. I mean, it happens pretty much every quarter. And then so that's what you saw here in the third quarter. Where those public funds running down by $100 to $150 million. And then, you know, we just replace those with sometimes we just replace those with broker CDs or just or borrowings.
Jon Arfstrom: No. Okay. That's helpful. Thanks a lot, guys.
Archie Brown: Yep. See you, John.
Operator: And that concludes our question and answer session. I will now turn the call back over to Archie Brown for closing comments.
Archie Brown: Thank you, Rob. I want to thank everybody for joining us today. We really feel great about the quarter we had and are excited about the fourth quarter and the momentum we are building for 2026 with the pending acquisitions. Look forward to talking to you again in a quarter. Have a great day and weekend.
Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.