The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Joseph Yanchunis - Raymond James. - Analyst
: Good morning.
Question: Joseph Yanchunis - Raymond James. - Analyst
: So I was hoping to dig a little more into the US RPP program. And perhaps I missed this in the materials, but what were balances at quarter end?
Question: Joseph Yanchunis - Raymond James. - Analyst
: $125 million. Okay. And then how many partners are you generating loans for at this point? Is it just Watercress?
Question: Joseph Yanchunis - Raymond James. - Analyst
: And then additionally, can you the partner pipeline. It is just Watercress, I think on the prior quarter call, you mentioned there was a couple of other
partners that were ramping at this point. Do you still expect those to that we do you expect you'll be able to fund those loans? Or will they kind of
move to the securitization financing offering route?
Question: Joseph Yanchunis - Raymond James. - Analyst
: So it would be fair to say the securitized financing offering will drive the majority of the growth from here on out.
Question: Joseph Yanchunis - Raymond James. - Analyst
: Got it. Okay. And then shifting gears here. As you had mentioned, you have a lot of optionality with your tokenized deposits and assuming the
pilot program runs smoothly and you get the regulatory green light to proceed, how are you thinking about the best course of action to capitalize
on this opportunity?
Question: Joseph Yanchunis - Raymond James. - Analyst
: Got it. And then last one for me here. Kind of given the economic backdrop, I'm a bit surprised to see the Canadian insolvency deposits were
relatively flattish. Do you think there's room to increase these deposits in the near term?
Question: Joseph Yanchunis - Raymond James. - Analyst
: Okay, understood. I appreciate you taking my questions.
Question: Timothy Switzer - KBW - Analyst
: Good morning. Good, I have a follow-up on the security to-date securitizations product here. It sounds like this is a product you guys intend to
offer longer term, maybe modulating it depending on the market circumstances.
But how is this also working as a method to kind of get your foot in the door of some of the US partners? And you provided some commentary on
potential US partner sign-ups, but should we see the securitizations first and then maybe later in 2026, we'll see some actual RPP volume with new
US partners? How should we think about that?
Question: Timothy Switzer - KBW - Analyst
: Okay. Great. That's good to hear. And then can you provide some color on the NIM trajectory going forward? There's a lot of moving parts here
with I assume deposit costs should still move lower but then you're bringing on some of these securitizations, but I assume a lower yield than the
typical RPP and then you also have the elevated liquidity levels. Like where should that normalize? And what's the impact on the margin from that?
Question: Timothy Switzer - KBW - Analyst
: Okay. And when should this excess liquidity run off of the balance sheet? And what is the impact on the margin right now from.
Question: Timothy Switzer - KBW - Analyst
: Okay, great thank you, David.
Question: Andrew Scutt - Roth Capital Partners LLC - Analyst
: Good morning and thank you for taking my questions. .
Question: Andrew Scutt - Roth Capital Partners LLC - Analyst
: I am now I'm in Philadelphia, so close by to New York though, still in the northeast.
Question: Andrew Scutt - Roth Capital Partners LLC - Analyst
: So my first question on the loan growth in Canada. You guys kind of said that surprised the upside, strong sequential and year-over-year growth.
Can you kind of talk about the pockets where you saw strength?
Question: Andrew Scutt - Roth Capital Partners LLC - Analyst
: Yeah It's great to hear. My second question here is just on kind of the noninterest expenses. You guys had $4.2 million in additional expenses this
quarter, which was kind of right in line with what you guys expected. Can you just remind us again, I believe you'll probably have similar charges
in the fourth quarter. And then just can you kind of once again talk through the benefits this will provide the bank moving forward?
Question: Andrew Scutt - Roth Capital Partners LLC - Analyst
: Great. Well, it's wonderful to hear and thank you for taking my questions.
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