ASHEVILLE, N.C., April 23, 2026 (GLOBE NEWSWIRE) -- HomeTrust Bancshares, Inc. (NYSE: HTB) ("Company"), the holding company of HomeTrust Bank ("Bank"), today announced preliminary net income for the first quarter of the year ending December 31, 2026 and an increase in its quarterly cash dividend.
For the quarter ended March 31, 2026 compared to the quarter ended December 31, 2025:
- net income was $16.8 million compared to $16.1 million;
- diluted earnings per share ("EPS") were $0.99 compared to $0.93;
- annualized return on assets ("ROA") was 1.55% compared to 1.44%;
- annualized return on equity ("ROE") was 11.35% compared to 10.63%;
- net interest margin was 4.31% compared to 4.20%;
- provision for credit losses was $370,000 compared to $2.1 million;
- quarterly cash dividends continued at $0.13 per share totaling $2.2 million for both periods; and
- 533,240 shares of Company common stock were repurchased during the current quarter at an average price of $42.85 compared to 241,201 shares repurchased at an average price of $42.19 in the prior quarter.
The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.15 per common share, reflecting a $0.02, or 15.4%, increase over the previous quarter's dividend. This is the eighth increase of the quarterly dividend since the Company initiated cash dividends in November 2018. The dividend is payable on May 28, 2026 to shareholders of record as of the close of business on May 14, 2026.
“During the first quarter, we accelerated our pace of stock buybacks as part of our ongoing and prudent capital allocation strategy,” said Hunter Westbrook, President and Chief Executive Officer. “We also announced today an increase in our quarterly dividend, further demonstrating our confidence in the Company’s strength and future financial performance. Looking ahead, we remain poised to accelerate loan growth in the second half of 2026.
“Our strong 2025 financial results carried into the first quarter of 2026, highlighted by our top quartile net interest margin which expanded to 4.31%, as deposit mix changes and reductions in funding costs outpaced a slight decline in asset yields.
“Lastly, earlier this month we announced our partnership with the Asheville Tourists Baseball Team, the High-A affiliate of the Houston Astros, where their newly renovated ballpark has been renamed HomeTrust Park. This initiative reflects our continued commitment to supporting the people and communities we are proud to serve.”
WEBSITE: WWW.HTB.COM
Comparison of Results of Operations for the Three Months Ended March 31, 2026 and December 31, 2025
Net Income. Net income totaled $16.8 million, or $0.99 per diluted share, for the three months ended March 31, 2026 compared to $16.1 million, or $0.93 per diluted share, for the three months ended December 31, 2025, an increase of $648,000, or 4.0%. The results for the three months ended March 31, 2026 compared to the three months ended December 31, 2025 benefited from a $1.7 million decrease in the provision for credit losses and a $635,000 increase in noninterest income, partially offset by a $1.3 million increase in the noninterest expense. Details of the changes in the various components of net income are further discussed below.
Net Interest Income. The following table presents the distribution of average assets, liabilities and equity, as well as interest income earned on average interest-earning assets and interest expense paid on average interest-bearing liabilities. All average balances are daily average balances. Nonaccruing loans have been included in the table as loans carrying a zero yield.
Three Months Ended March 31, 2026 December 31, 2025(Dollars in thousands) AverageBalance
Outstanding Interest
Earned /
Paid
Yield /
Rate Average
Balance
Outstanding Interest
Earned /
Paid
Yield /
RateAssets Interest-earning assets Loans receivable(1) $3,793,994 $57,725 6.17% $3,809,902 $59,597 6.21%Debt securities available for sale 144,520 1,604 4.50 147,247 1,599 4.31 Other interest-earning assets(2) 227,051 2,168 3.87 223,267 2,271 4.04 Total interest-earning assets 4,165,565 61,497 5.99 4,180,416 63,467 6.02 Other assets 218,936 255,547 Total assets $4,384,501 $4,435,963 Liabilities and equity Interest-bearing liabilities Interest-bearing checking accounts $561,216 $1,101 0.80% $540,889 $1,013 0.74%Money market accounts 1,369,569 8,616 2.55 1,361,620 9,192 2.68 Savings accounts 170,227 28 0.07 171,803 30 0.07 Certificate accounts 830,675 7,105 3.47 926,678 8,674 3.71 Total interest-bearing deposits 2,931,687 16,850 2.33 3,000,990 18,909 2.50 Junior subordinated debt 10,231 188 7.45 10,204 199 7.74 Borrowings 16,667 154 3.75 10,152 146 5.71 Total interest-bearing liabilities 2,958,585 17,192 2.36 3,021,346 19,254 2.53 Noninterest-bearing deposits 759,493 751,864 Other liabilities 67,106 61,085 Total liabilities 3,785,184 3,834,295 Stockholders' equity 599,317 601,668 Total liabilities and stockholders' equity $4,384,501 $4,435,963 Net earning assets $1,206,980 $1,159,070 Average interest-earning assets to average interest-bearing liabilities 140.80% 138.36% Non-tax-equivalent Net interest income $44,305 $44,213 Interest rate spread 3.63% 3.49%Net interest margin(3) 4.31% 4.20%Tax-equivalent(4) Net interest income $44,740 $44,661 Interest rate spread 3.67% 3.54%Net interest margin(3) 4.36% 4.24%(1) Average loans receivable balances include loans held for sale and nonaccruing loans.
(2) Average other interest-earning assets consist of FRB stock, FHLB stock, SBIC investments and deposits in other banks.
(3) Net interest income divided by average interest-earning assets.
(4) Tax-equivalent results include adjustments to interest income of $435 and $448 for the three months ended March 31, 2026 and December 31, 2025, respectively, calculated based on combined federal and state tax rates of 23% and 24% for the same periods, respectively.
Total interest and dividend income for the three months ended March 31, 2026 decreased $2.0 million, or 3.1%, when compared to the three months ended December 31, 2025. A decline of $1.9 million, or 3.1%, in loan interest income drove this change, primarily due to fewer days in the current quarter and the impact of decreases in the federal funds rate upon loan yields, partially offset by an increase of $348,000 in accretion income.
Total interest expense for the three months ended March 31, 2026 decreased $2.1 million, or 10.7%, when compared to the three months ended December 31, 2025. A decline of $2.1 million, or 10.9%, in deposit interest expense drove this change, the result of a decline in the average balance of certificate accounts, specifically brokered deposits, a decline in the average cost of funds across funding categories, and fewer days in the current quarter.
The following table shows the effects that changes in average balances (volume), including differences in the number of days in the periods compared, and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities:
Increase / (Decrease)Due to Total
Increase/
(Decrease)
(Dollars in thousands) Volume Rate Interest-earning assets Loans receivable $(1,532) $(340) $(1,872)Debt securities available for sale (65) 70 5 Other interest-earning assets (10) (93) (103)Total interest-earning assets (1,607) (363) (1,970)Interest-bearing liabilities Interest-bearing checking accounts 14 74 88 Money market accounts (138) (438) (576)Savings accounts (1) (1) (2)Certificate accounts (1,057) (512) (1,569)Junior subordinated debt (3) (8) (11)Borrowings 91 (83) 8 Total interest-bearing liabilities (1,094) (968) (2,062)Increase in net interest income $92
Provision for Credit Losses. The provision for credit losses is the amount of expense that, based on our judgment, is required to maintain the allowance for credit losses ("ACL") at an appropriate level under the current expected credit losses model.
The following table presents a breakdown of the components of the provision for credit losses:
Three Months Ended(Dollars in thousands) March 31, 2026 December 31, 2025
$ Change % ChangeProvision for credit losses Loans $945 $1,525 $(580) (38)%Off-balance sheet credit exposure (575) 555 (1,130) (204)Total provision for credit losses $370 $2,080 $(1,710) (82)%
For the quarter ended March 31, 2026, the "loans" portion of the provision for credit losses was primarily the result of the following, offset by net charge-offs of $1.8 million during the quarter:
- $0.5 million benefit driven by changes in the loan mix.
- $0.2 million provision due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments.
- $0.6 million decrease in specific reserves on individually evaluated loans.
For the quarter ended December 31, 2025, the "loans" portion of the provision for credit losses was primarily the result of the following, offset by net charge-offs of $3.1 million during the quarter:
- $0.9 million benefit driven by changes in the loan mix.
- $0.1 million benefit due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments.
- $0.6 million decrease in specific reserves on individually evaluated loans.
For the quarters ended March 31, 2026 and December 31, 2025, the amounts recorded for off-balance sheet credit exposure were the result of changes in the balance of loan commitments, loan mix, projected economic forecast and qualitative allocations as outlined above.
Noninterest Income. Noninterest income for the three months ended March 31, 2026 increased $635,000, or 6.8%, when compared to the quarter ended December 31, 2025. Changes in the components of noninterest income are discussed below:
Three Months Ended(Dollars in thousands) March 31, 2026
December 31, 2025
$ Change % ChangeNoninterest income Service charges and fees on deposit accounts $2,414 $2,534 $(120) (5)%Loan income and fees 692 926 (234) (25)Gain on sale of loans held for sale 2,654 1,926 728 38 Bank owned life insurance ("BOLI") income 892 976 (84) (9)Operating lease income 1,892 2,032 (140) (7)Gain on sale of premises and equipment 377 65 312 480 Other 1,110 937 173 18 Total noninterest income $10,031 $9,396 $635 7%
- Loan income and fees: The decrease was primarily the result of $144,000 less in interest rate swap fees in addition to smaller decreases across several other loan fee categories.
- Gain on sale of loans held for sale: The increase was primarily driven by an increase in the sales volume of HELOC loans originated for sale, partially offset by reduced sales volume of residential mortgage loans and SBA commercial loans. There were $103.0 million of HELOCs originated for sale which were sold during the current quarter with gains of $934,000 compared to $13.7 million sold with gains of $121,000 in the prior quarter. There were $23.3 million of residential mortgage loans sold for gains of $431,000 during the current quarter compared to $31.1 million sold with gains of $606,000 in the prior quarter. There were $16.4 million in sales of the guaranteed portion of SBA commercial loans with gains of $1.2 million for the current quarter compared to $18.9 million sold and gains of $1.5 million for the prior quarter. Our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a net gain of $68,000 for the current quarter compared to a net loss of $295,000 for the prior quarter.
- Gain on sale of premises and equipment: In both periods presented, gains were recognized on the sale of excess parcels of land.
Noninterest Expense. Noninterest expense for the three months ended March 31, 2026 increased $1.3 million, or 4.0%, when compared to the three months ended December 31, 2025. Changes in the components of noninterest expense are discussed below:
Three Months Ended(Dollars in thousands) March 31, 2026
December 31, 2025
$ Change % ChangeNoninterest expense Salaries and employee benefits $19,877 $18,541 $1,336 7%Occupancy expense, net 2,630 2,572 58 2 Computer services 2,877 2,798 79 3 Operating lease depreciation expense 1,516 1,582 (66) (4)Telecom, postage and supplies 581 542 39 7 Marketing and advertising 417 514 (97) (19)Deposit insurance premiums 484 483 1 — Core deposit intangible amortization 374 411 (37) (9)Other 4,219 4,251 (32) (1)Total noninterest expense $32,975 $31,694 $1,281 4%
- Salaries and employee benefits: The increase was primarily the result of a $449,000 increase in incentive compensation and $409,000 in additional FICA taxes.
Income Taxes. The amount of income tax expense is influenced by the amount of pre-tax income, tax-exempt income, changes in the statutory rate and the effect of changes in valuation allowances maintained against deferred tax benefits. The effective tax rates for the three months ended March 31, 2026 and December 31, 2025 were 20.1% and 18.7%, respectively, with the quarter-over-quarter increase driven by the prior quarter impact of the Company's investment in a tax credit equity fund.
Balance Sheet Review
Total assets decreased by $159.3 million to $4.4 billion and total liabilities decreased by $151.0 million to $3.8 billion at March 31, 2026 as compared to December 31, 2025. These changes can be traced to the use of proceeds from both loan sales and loan paydowns to offset a $70.5 million decline in deposits. The decrease in deposits was the result of a $116.1 million reduction in brokered deposits, partially offset by an increase of $45.7 million in all other deposit categories.
Stockholders' equity decreased $8.3 million, or 1.4%, to $592.4 million at March 31, 2026 as compared to December 31, 2025. Activity within stockholders' equity included $16.8 million in net income and $1.4 million in share-based compensation and stock option exercises, more than offset by $2.2 million in cash dividends declared and $23.1 million in stock repurchases. In addition, accumulated other comprehensive income declined by $622,000 due to an increase in the unrealized loss on available for sale securities due to higher market interest rates.
As of March 31, 2026, the Bank was considered "well capitalized" in accordance with its regulatory capital guidelines and exceeded all regulatory capital requirements.
Asset Quality
The ACL on loans was $40.6 million, or 1.14% of total loans, at March 31, 2026 compared to $41.5 million, or 1.16% of total loans, at December 31, 2025. The drivers of this change are discussed in the "Comparison of Results of Operations for the Quarters Ended March 31, 2026 and December 31, 2025 – Provision for Credit Losses" section above.
Net loan charge-offs totaled $1.8 million for the quarter ended March 31, 2026 compared to $3.1 million and $1.3 million for the three months ended December 31, 2025 and March 31, 2025, respectively. For all three periods, net charge-offs were concentrated within our equipment finance portfolio, primarily related to over-the-road truck loans, where we recognized net charge-offs of $1.5 million, $2.0 million and $1.0 million for the same periods, respectively. Annualized net charge-offs as a percentage of average loans were 0.19% for the three months ended March 31, 2026 as compared to 0.33% and 0.14% for the three months ended December 31, 2025 and March 31, 2025, respectively.
The following table sets forth the composition of nonperforming assets, made up of nonaccrual loans and repossessed assets, across our asset categories.
(Dollars in thousands) March 31, 2026 December 31, 2025 March 31, 2025Nonaccruing loans Commercial real estate Construction and land development $854 $381 $— Commercial real estate – owner occupied 11,256 10,467 8,583 Commercial real estate – non-owner occupied 6,704 6,566 3,552 Multifamily — — 38 Total commercial real estate 18,814 17,414 12,173 Commercial Commercial and industrial 10,578 9,786 2,965 Equipment finance 6,096 6,690 5,065 Total commercial 16,674 16,476 8,030 Residential real estate Construction and land development — — 132 One-to-four family 3,632 2,961 2,203 HELOCs 7,140 6,523 4,033 Total residential real estate 10,772 9,484 6,368 Consumer 479 402 388 Total nonaccruing loans $46,739 $43,776 $26,959 Total repossessed assets 316 657 1,058 Total nonperforming assets $47,055 $44,433 $28,017 Total nonperforming assets as a percentage of total assets 1.07% 0.98% 0.61% Total SBA loans included in nonaccrual loans $22,720 $20,647 $6,459 Portion of SBA loans fully guaranteed by the SBA 16,348 14,885 2,374 Total nonaccruing loans, excluding the balance fully guaranteed by the SBA 30,391 28,891 24,585 Total repossessed assets 316 657 1,058 Total nonperforming assets, excluding the balance fully guaranteed by the SBA $30,707 $29,548 $25,643 Total nonperforming assets, excluding the balance fully guaranteed by the SBA, as a percentage of total assets 0.70% 0.65% 0.56%
SBA loans made up 48.5%, 46.5% and 23.1% of total nonperforming assets at March 31, 2026, December 31, 2025 and March 31, 2025, respectively. The year-over-year increase was primarily the result of a management decision to accelerate the repurchase of the sold portion of nonperforming SBA loans (fully guaranteed portion) to simplify the workout process.
Classified assets increased by $6.0 million, or 9.1%, to $72.2 million, or 1.65% of total assets, as of March 31, 2026 when compared to the balance of $66.2 million, or 1.46% of total assets, as of December 31, 2025. Similarly, classified assets increased by $31.5 million, or 77.4%, to $72.2 million, or 1.65% of total assets, as of March 31, 2026 when compared to the balance of $40.7 million, or 0.89% of total assets, as of March 31, 2025. SBA loans made up the largest portion of classified assets at $25.7 million and $27.3 million, respectively, as of March 31, 2026 and December 31, 2025, of which $18.1 million and $19.8 million, respectively, was fully guaranteed. The remaining population of classified assets as of March 31, 2026 included $10.0 million of HELOCs, $9.3 million of 1-4 family residential real estate loans, $7.7 million of equipment finance loans (concentrated in the transportation sector) and $7.4 million of non-owner occupied CRE loans.
About HomeTrust Bancshares, Inc.
HomeTrust Bancshares, Inc. (NYSE: HTB), headquartered in Asheville, North Carolina, is the holding company for HomeTrust Bank, a state-chartered community bank operating over 30 locations across North Carolina, South Carolina, East Tennessee, Southwest Virginia, and Georgia. With total assets of $4.4 billion as of March 31, 2026, the Company’s goal is to remain a high-performing, regional community bank, guided by our strategy to be a best place to work. Reflecting this focus, the Company has been named one of Bank Director’s “Best U.S. Banks,” one of Forbes’ “America’s Best Banks,” one of S&P Global’s “Top 50 Community Banks,” and named to the 2025 KBW Honor Roll. In addition, the Company has been recognized as one of American Banker’s “Best Banks to Work For,” received a “Most Loved Workplace” certification by Best Practices Institute, named as one of Best Companies Group’s “America’s Best Workplaces,” as well as being named a “Best Place to Work” in all five states in which it operates.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but instead are based on certain assumptions including statements with respect to the Company's beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance and projections of financial items. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by forward-looking statements. The factors that could result in material differentiation include, but are not limited to expected revenues, cost savings, synergies and other benefits from merger and acquisition activities might not be realized to the extent anticipated, within the anticipated time frames, or at all, costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected, and goodwill impairment charges might be incurred; increased competitive pressures among financial services companies; changes in the interest rate environment; changes in general economic conditions, both nationally and in our market areas; the impact of geopolitical instability and trade policies on our operations including the imposition of tariffs and retaliatory tariffs; natural disasters; legislative and regulatory changes; and the effects of inflation, a potential recession, and other factors described in the Company's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission - which are available on the Company's website at www.htb.com and on the SEC's website at www.sec.gov. Any of the forward-looking statements that the Company makes in this press release or in the documents the Company files with or furnishes to the SEC are based upon management's beliefs and assumptions at the time they are made and may turn out to be wrong because of inaccurate assumptions, the factors described above or other factors that management cannot foresee. The Company does not undertake, and specifically disclaims any obligation, to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
(Dollars in thousands) March 31, 2026 December 31, 2025(1) September 30, 2025 June 30, 2025 March 31, 2025Assets Cash $14,505 $14,411 $15,435 $16,662 $14,303 Interest-bearing deposits 286,188 310,281 300,395 280,547 285,522 Cash and cash equivalents 300,693 324,692 315,830 297,209 299,825 Certificates of deposit in other banks 13,619 18,841 20,833 23,319 25,806 Debt securities available for sale, at fair value 149,729 142,540 145,682 143,942 150,577 FHLB and FRB stock 13,614 13,636 14,325 15,263 13,602 SBIC investments 19,461 18,818 18,346 17,720 17,746 Loans held for sale, at fair value 6,562 7,005 7,907 1,106 2,175 Loans held for sale, at the lower of cost or fair value 101,930 198,688 189,047 169,835 151,164 Total loans, net of deferred loan fees and costs 3,546,580 3,578,154 3,643,619 3,671,951 3,648,609 Allowance for credit losses – loans (40,607) (41,479) (43,086) (44,139) (44,742)Loans, net 3,505,973 3,536,675 3,600,533 3,627,812 3,603,867 Premises and equipment, net 62,210 62,400 62,437 62,706 62,347 Accrued interest receivable 14,636 15,973 17,077 16,554 18,269 Deferred income taxes, net 8,514 9,922 9,789 9,968 9,288 BOLI 94,555 93,930 93,474 92,576 91,715 Goodwill 34,111 34,111 34,111 34,111 34,111 Core deposit intangibles, net 4,474 4,848 5,259 5,670 6,080 Other assets 56,260 63,556 57,487 60,262 71,488 Total assets $4,386,341 $4,545,635 $4,592,137 $4,578,053 $4,558,060 Liabilities and stockholders' equity Liabilities Deposits $3,639,542 $3,709,997 $3,698,227 $3,666,178 $3,736,360 Junior subordinated debt 10,245 10,220 10,195 10,170 10,145 Borrowings 90,000 165,000 230,000 265,000 177,000 Other liabilities 54,147 59,728 57,882 57,431 69,106 Total liabilities 3,793,934 3,944,945 3,996,304 3,998,779 3,992,611 Stockholders' equity Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding — — — — — Common stock, $0.01 par value, 60,000,000 shares authorized(2) 168 173 175 175 176 Additional paid in capital 144,465 166,856 176,289 174,900 176,682 Retained earnings 451,127 436,524 422,615 408,178 393,026 Unearned Employee Stock Ownership Plan ("ESOP") shares (3,306) (3,438) (3,571) (3,703) (3,835)Accumulated other comprehensive income (loss) (47) 575 325 (276) (600)Total stockholders' equity 592,407 600,690 595,833 579,274 565,449 Total liabilities and stockholders' equity $4,386,341 $4,545,635 $4,592,137 $4,578,053 $4,558,060 (1) Derived from audited financial statements.
(2) Shares of common stock issued and outstanding were 16,803,185 at March 31, 2026; 17,286,289 at December 31, 2025; 17,520,425 at September 30, 2025; 17,492,143 at June 30, 2025; and 17,552,626 at March 31, 2025.
(Dollars in thousands) March 31, 2026
December 31, 2025
Interest and dividend income Loans $57,725 $59,597 Debt securities available for sale 1,604 1,599 Other investments and interest-bearing deposits 2,168 2,271 Total interest and dividend income 61,497 63,467 Interest expense Deposits 16,850 18,909 Junior subordinated debt 188 199 Borrowings 154 146 Total interest expense 17,192 19,254 Net interest income 44,305 44,213 Provision for credit losses 370 2,080 Net interest income after provision for credit losses 43,935 42,133 Noninterest income Service charges and fees on deposit accounts 2,414 2,534 Loan income and fees 692 926 Gain on sale of loans held for sale 2,654 1,926 BOLI income 892 976 Operating lease income 1,892 2,032 Gain on sale of premises and equipment 377 65 Other 1,110 937 Total noninterest income 10,031 9,396 Noninterest expense Salaries and employee benefits 19,877 18,541 Occupancy expense, net 2,630 2,572 Computer services 2,877 2,798 Operating lease depreciation expense 1,516 1,582 Telecom, postage and supplies 581 542 Marketing and advertising 417 514 Deposit insurance premiums 484 483 Core deposit intangible amortization 374 411 Other 4,219 4,251 Total noninterest expense 32,975 31,694 Income before income taxes 20,991 19,835 Income tax expense 4,219 3,711 Net income $16,772 $16,124
Three Months Ended
March 31, 2026
December 31, 2025
Net income per common share(1) Basic $1.00 $0.94 Diluted $0.99 $0.93 Average shares outstanding Basic 16,582,376 16,936,740 Diluted 16,716,089 17,070,906 Book value per share at end of period $35.26 $34.75 Tangible book value per share at end of period(2) $33.02 $32.56 Cash dividends declared per common share $0.13 $0.13 Total shares outstanding at end of period 16,803,185 17,286,289 (1) Basic and diluted net income per common share have been prepared in accordance with the two-class method.
(2) See Non-GAAP reconciliations below for adjustments.
Three Months Ended March 31, 2026 December 31, 2025Performance ratios(1) Return on assets (ratio of net income to average total assets) 1.55% 1.44%Return on equity (ratio of net income to average equity) 11.35 10.63 Yield on earning assets 5.99 6.02 Rate paid on interest-bearing liabilities 2.36 2.53 Average interest rate spread 3.63 3.49 Net interest margin(2) 4.31 4.20 Average interest-earning assets to average interest-bearing liabilities 140.80 138.36 Noninterest expense to average total assets 3.05 2.83 Efficiency ratio 60.69 59.12 Efficiency ratio – adjusted(3) 60.62 58.80 (1) Ratios are annualized where appropriate.
(2) Net interest income divided by average interest-earning assets.
(3) See Non-GAAP reconciliations below for adjustments.
(2) See Non-GAAP reconciliations below for adjustments.
(Dollars in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025Commercial real estate Construction and land development $317,497 $277,028 $268,953 $267,494 $247,539 Commercial real estate – owner occupied 527,375 562,049 540,807 561,623 570,150 Commercial real estate – non-owner occupied 823,672 832,502 861,244 877,440 867,711 Multifamily 109,564 110,912 115,403 113,416 118,094 Total commercial real estate 1,778,108 1,782,491 1,786,407 1,819,973 1,803,494 Commercial loans Commercial and industrial 392,114 378,686 399,155 367,359 349,085 Equipment finance 286,455 311,356 340,322 360,499 380,166 Municipal leases 167,371 166,396 164,967 168,623 163,554 Total commercial 845,940 856,438 904,444 896,481 892,805 Residential real estate Construction and land development 48,715 45,617 51,110 53,020 56,858 One-to-four family 619,735 633,511 636,857 640,287 631,537 HELOCs 218,283 217,310 216,122 205,918 199,747 Total residential real estate 886,733 896,438 904,089 899,225 888,142 Consumer 35,799 42,787 48,679 56,272 64,168 Total loans, net of deferred loan fees and costs 3,546,580 3,578,154 3,643,619 3,671,951 3,648,609 Allowance for credit losses – loans (40,607) (41,479) (43,086) (44,139) (44,742)Loans, net $3,505,973 $3,536,675 $3,600,533 $3,627,812 $3,603,867
(Dollars in thousands) March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
Core deposits Noninterest-bearing accounts $730,666 $707,748 $689,352 $698,843 $721,814 NOW accounts 575,525 546,387 537,954 561,524 573,745 Money market accounts 1,393,120 1,374,635 1,343,008 1,323,762 1,357,961 Savings accounts 171,754 171,455 172,883 179,980 184,396 Total core deposits 2,871,065 2,800,225 2,743,197 2,764,109 2,837,916 Certificates of deposit 768,477 909,772 955,030 902,069 898,444 Total $3,639,542 $3,709,997 $3,698,227 $3,666,178 $3,736,360
Non-GAAP Reconciliations
In addition to results presented in accordance with generally accepted accounting principles utilized in the United States ("GAAP"), this earnings release contains certain non-GAAP financial measures, which include: the efficiency ratio, tangible book value, tangible book value per share and the tangible equity to tangible assets ratio. The Company believes these non-GAAP financial measures and ratios as presented are useful for both investors and management to understand the effects of certain items and provide an alternative view of its performance over time and in comparison to its competitors. These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for total stockholders' equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
Set forth below is a reconciliation to GAAP of the Company's efficiency ratio:
Three Months Ended(Dollars in thousands) March 31, 2026
December 31, 2025
Noninterest expense $32,975 $31,694 Net interest income $44,305 $44,213 Plus: tax-equivalent adjustment 435 448 Plus: noninterest income 10,031 9,396 Less: BOLI death benefit proceeds in excess of cash surrender value — 92 Less: gain on sale of premises and equipment 377 65 Net interest income plus noninterest income – adjusted $54,394 $53,900
Set forth below is a reconciliation to GAAP of tangible book value and tangible book value per share:
(Dollars in thousands, except per share data) March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
Total stockholders' equity $592,407 $600,690 $595,833 $579,274 $565,449 Less: goodwill, core deposit intangibles, net of taxes 37,556 37,844 38,160 38,477 38,793 Tangible book value $554,851 $562,846 $557,673 $540,797 $526,656 Common shares outstanding 16,803,185 17,286,289 17,520,425 17,492,143 17,552,626 Book value per share $35.26 $34.75 $34.01 $33.12 $32.21 Tangible book value per share $33.02 $32.56 $31.83 $30.92 $30.00
Set forth below is a reconciliation to GAAP of tangible equity to tangible assets:
(Dollars in thousands) March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
Tangible equity(1) $554,851 $562,846 $557,673 $540,797 $526,656 Total assets 4,386,341 4,545,635 4,592,137 4,578,053 4,558,060 Less: goodwill, core deposit intangibles, net of taxes 37,556 37,844 38,160 38,477 38,793 Total tangible assets $4,348,785 $4,507,791 $4,553,977 $4,539,576 $4,519,267