Hoyne Bancorp, Inc.
For the period ended Jun 30, 2026. Filed Aug 11, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 11, 2026
HYNE$18.18-2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-12.
0001104659-26-059252
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-11.
0001104659-26-094047
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 60 previous paragraphs and 57 current paragraphs.
28 unchanged; 20 reworded; 9 added; 11 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 36 previous and 37 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
$161.1 million. For the three months ended June 30, 2026, we had a net income of $96,000 compared to a net income of $118,000 for the three months ended June 30, 2025. For the six months ended June 30, 2026, we had a net loss of $22,000 compared to a net loss of $47,000 for the six months ended June 30, 2025.
Current report
Of the significant accounting policies used in the preparation of our consolidated financial statements, we have identified certain items as critical accounting policies based on the associated estimates, assumptions, judgements and complexity. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Current report
Other Assets. Other assets increased $1.1 million, or 65.4%, to $2.9 million as of June 30, 2026 from $1.7 million as of December 31, 2025. The increase was primarily due to an increase in other investments purchased to enhance the yield on interest earning assets.
Current report
Loans Receivable, Net. Loans receivable, net increased $14.3 million, or 5.4%, to $282.2 million as of June 30, 2026, from $267.9 million as of December 31, 2025. The increase includes $28.6 million in net commercial loan growth offset by a $13.8 million decrease in one to four residential loans and participations.
Current report
Deposits. Deposits decreased $9.0 million, or 2.8%, to $312.6 million as of June 30, 2026 from $321.6 million as of December 31, 2025. The decrease was due to a decline of $18.8 million in passbook accounts and certificates of deposit offset by an increase of $9.8 million in NOW and money market accounts.
Current report
Interest Expense on Deposits. Interest expense on deposits decreased $650,000, or 40.1%, to $983,000 for the three months ended June 30, 2026, compared to $1.6 million for the three months ended June 30, 2025. The decrease was primarily caused by the decrease in the amount of deposits and in interest rates. Interest expense on deposits decreased $1.3 million, or 38.3%, to $2.0 million for the six months ended June 30, 2026, compared to $3.3 million for the six months ended June 30, 2025. The decrease was primarily similarly caused by the decrease in deposits and interest rates.
Current report
Noninterest Income. Noninterest income increased $179,000, or 82.1%, to $397,000 for the three months ended June 30, 2026, compared to $218,000 for the three months ended June 30, 2025. The increase was due primarily to the increase in customer service fees due to commercial loan fees and BOLI income. Noninterest income increased $260,000, or 62.5%, to $676,000 for the six months ended June 30, 2026 compared to $416,000 for the six months ended June 30, 2025. The increase was primarily due to the increase in customer service fees due to commercial loan fees and BOLI income.
Current report
Noninterest Expense. Noninterest expense increased $1.3 million, or 39.5%, to $4.5 million for the three months ended June 30, 2026 compared to $3.2 million for the three months ended June 30, 2025. The increase was primarily caused by the increase in compensation due to annual raises and bonuses, audit, consulting and legal expenses. Noninterest expense increased $2.4 million, or 35.8%, to $9.1 million for the six months ended June 30, 2026, compared to $6.7 million for the six months ended June 30, 2025. The increase was primarily caused by the increase in compensation, audit, consulting and legal expenses.
Current report
consists of changes in deposits, was ($9.0 million) and $18,000 for the six months ended June 30, 2026 and 2025, respectively.
Removed paragraphs (11)
Previous report
The following accounting policies comprise those that management believes are the most critical to aid in fully understanding and evaluating our reported financial results. These policies require numerous estimates or economic assumptions that may prove inaccurate or may be subject to variations which may significantly affect our reported results and financial condition for the period or in future periods.
Previous report
Allowance for Credit Losses. The allowance for credit losses is the estimated amount considered necessary to cover expected, but unconfirmed credit losses in the loan portfolio at the balance sheet date. The allowance is established through the provision for credit losses which is charged against income. In determining the allowance for credit losses, we make significant estimates and have identified this policy as one of our most critical accounting policies.
Previous report
We perform a quarterly evaluation of the allowance for credit losses. Our determination of the adequacy of the allowance for credit losses is based on the assessment of the expected credit losses on loans over the expected life of the loans. Consideration is given to a variety of factors in establishing this estimate including, but not limited to, current economic conditions, delinquency statistics, geographic and industry concentrations, the adequacy of the underlying collateral, the financial strength of the borrower, results of internal loan reviews and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change.
Previous report
In accordance with the provisions of the accounting standards under CECL, we estimate the allowance for credit losses balance using relevant available information from both internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience of a defined peer group, by affiliate, paired with economic forecasts, provide the basis for the quantitatively modeled estimates of expected credit losses. We adjust our quantitative model, as necessary, to reflect conditions not already considered by the quantitative model. These adjustments are commonly known as the qualitative factors.
Previous report
The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. We use the average historical loss method to measure the quantitative portion of the allowance for credit losses over the forecast and reversion periods.
Previous report
Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When we determine that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.
Previous report
Loans Receivable, Net. Loans receivable, net increased $20.7 million, or 7.7%, to $288.6 million as of March 31, 2026 from $267.9 million as of December 31, 2025. The increase reflects the continued emphasis on growing the commercial loan portfolio.
Previous report
Deposits. Deposits decreased $9.6 million, or 3.0%, to $312.0 million as of March 31, 2026 from $321.6 million as of December 31, 2025 due to the maturity of certificates of deposit that did not renew due to the interest rate environment.
Previous report
Interest Expense on Deposits. Interest expense on deposits decreased $614,000, or 36.2%, to $1.1 million for the three months ended March 31, 2026 compared to $1.7 million for the three months ended March 31, 2025. The decrease was primarily caused by the decrease in deposits as interest rates remained relatively unchanged.
Previous report
Noninterest Expense. Noninterest expense increased $1.1 million, or 32.3%, to $4.5 million for the three months ended March 31, 2026 compared to $3.4 million for the three months ended March 31, 2025. The increase was primarily
Previous report
caused by the increase in compensation expense due to the payment of additional bonuses and compensation adjustments during the quarter.
Reworded paragraphs (20)
Previous wording
This discussion and analysis is intended to assist in the understanding of our financial performance through a discussion of our financial condition as of March 31, 2026 (unaudited) and as compared to our financial condition as of December 31, 2025 (audited) and our results of operations for the three month periods ended March 31, 2026 and 2025 (unaudited). This section should be read in conjunction with the unaudited consolidated financial statements and notes thereto appearing in Part 1 Item 1 of this Quarterly Report on Form 10-Q.
Current wording
This discussion and analysis is intended to assist in the understanding of our financial performance through a discussion of our financial condition as of June 30, 2026 (unaudited) and as compared to our financial condition as of December 31, 2025 and our results of operations for the three and six month periods ended June 30, 2026 and 2025 (unaudited). This section should be read in conjunction with the unaudited consolidated financial statements and notes thereto appearing in Part 1 Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
Our primary sources of funds consist of attracting deposits from the general public and using those funds and other sources to originate loans to our customers and invest in securities. As of March 31, 2026, we had total assets of $477.2 million, including $288.6 million in net loans and $103.7 million of investment securities available-for-sale, and investment securities held-to-maturity of $27.2 million, total deposits of $312.0 million and total stockholders’ equity of $161.1 million. For the three months ended March 31, 2026, we had a net loss of $118,000 compared to a net loss of $166,000 for the three months ended March 31, 2025.
Current wording
Our primary sources of funds consist of attracting deposits from the general public and using those funds and other sources to originate loans to our customers and invest in securities. As of June 30, 2026, we had total assets of $480.0 million, including $282.3 million in net loans and $100.9 million of investment securities available-for-sale, and investment securities held-to-maturity of $25.9 million, total deposits of $312.6 million and total stockholders’ equity of
Previous wording
Total Assets. Total assets decreased $12.2 million or 2.5% to $477.2 million as of March 31, 2026 compared to $489.4 million as of December 31, 2025. The decrease resulted primarily from decreases in cash and cash equivalents of $34.1 million, investment securities available-for-sale of $3.0 million, and investment securities held to maturity of $1.2 million. These decreases were offset by increases in loans receivable, net of $20.7 million, and Bank Owned Life Insurance of $5.2 million.
Current wording
Total Assets. Total assets decreased $9.4 million or 1.9% to $480.0 million as of June 30, 2026 compared to $489.4 million as of December 31, 2025. The decrease resulted primarily from decreases in cash and cash equivalents of $22.2 million, investment securities available-for-sale of $5.8 million, and investment securities held to maturity of $2.5 million. These decreases were offset by increases in loans receivable, net of $14.3 million, Bank Owned Life Insurance of $5.4 million, and other assets of $1.1 million.
Previous wording
Cash and Cash Equivalents. Cash and cash equivalents decreased $34.1 million, or 71.7%, to $13.5 million as of March 31, 2026 compared to $47.6 million as of December 31, 2025. The decrease was primarily the result of funding loan originations and purchasing additional BOLI.
Current wording
Cash and Cash Equivalents. Cash and cash equivalents decreased $22.2 million, or 46.7%, to $25.4 million as of June 30, 2026 compared to $47.6 million as of December 31, 2025. The decrease was primarily the result of funding commercial loan originations and purchasing additional BOLI to enhance the yield on interest earning assets.
Previous wording
Investment Securities Available-for-Sale. Investment securities available-for-sale decreased $3.0 million, or 2.8%, to $103.7 million as of March 31, 2026 from $106.7 million as of December 31, 2025 as a result of maturities and paydowns. The liquidity from the decrease was used to fund the increase in our loan portfolio.
Current wording
Investment Securities Available-for-Sale. Investment securities available-for-sale decreased $5.8 million, or 5.4%, to $100.9 million as of June 30, 2026, from $106.7 million as of December 31, 2025 as a result of maturities and paydowns. The resulting liquidity was used to fund loan portfolio originations.
Previous wording
Investment Securities Held-to-Maturity. Investment securities held-to-maturity decreased $1.2 million, or 4.2%, to $27.2 million as of March 31, 2026 from $28.4 million as of December 31, 2025 as a result of maturities and paydowns. The liquidity from the decrease was used to fund the increase in our loan portfolio.
Current wording
Investment Securities Held-to-Maturity. Investment securities held-to-maturity decreased $2.5 million, or 8.6%, to $25.9 million as of June 30, 2026, from $28.4 million as of December 31, 2025 as a result of maturities and paydowns. The liquidity from the decrease was used to fund the increase in our loan portfolio.
Previous wording
Allowance for Credit Losses. As of March 31, 2026, the allowance for credit losses on loans (“ACL”) increased $135,000 or 5.0%, to $2.8 million as of March 31, 2026 from $2.7 million as of December 31, 2025, due to an increase in the provision as a result of the growth in the loan portfolio.
Current wording
Allowance for Credit Losses. As of June 30, 2026, the allowance for credit losses on loans (“ACL”) increased $270,000 or 10.1%, to $3.0 million as of June 30, 2026, from $2.7 million as of December 31, 2025, due to an increase in the provision for credit loss as a result of the growth in the commercial loan portfolio.
Previous wording
Bank Owned Life Insurance. Bank Owned Life Insurance increased $5.2 million, or 34.7%, to $20.1 million as of March, 31, 2026 from $14.9 million as of December 31, 2025, due primarily to the purchase of additional policies.
Current wording
Bank Owned Life Insurance. Bank Owned Life Insurance increased $5.4 million, or 36.2%, to $20.3 million as of June 30, 2026, from $14.9 million as of December 31, 2025, due primarily to the purchase of additional policies to enhance the yield on interest earning assets.
Previous wording
Premises and Equipment, Net. Premises and equipment, net decreased $111,000, or 1.5%, to $7.3 million as of March, 31, 2026 from $7.4 million as of December 31, 2025, due primarily to depreciation.
Current wording
Premises and Equipment, Net. Premises and equipment, net decreased $83,000, or 1.1%, to $7.3 million as of June 30, 2026 from $7.4 million as of December 31, 2025, due primarily to depreciation expense.
Previous wording
Total Stockholders’ Equity. Total stockholders’ equity for the first three months of 2026 decreased $283,000, or 0.2%, to $161.1 million from $161.4 million as of December 31, 2025. The decrease was due primarily to an increase in accumulated other comprehensive loss of $257,000 during the first three months of 2026 due to the rate environment for available-for-sale assets.
Current wording
Total Stockholders’ Equity. Total stockholders’ equity for the first six months of 2026 decreased $223,000, or 0.1%, to $161.1 million from $161.4 million as of December 31, 2025. The decrease was due primarily to an increase in accumulated other comprehensive loss of $397,000 during the first six months of 2026 due to interest rate environment.
Previous wording
Comparison of Operating Results for Three Months Ended March 31, 2026 and March 31, 2025
Current wording
Comparison of Operating Results for Three and Six Months Ended June 30, 2026 and June 30, 2025
Previous wording
General. For the three months ended March 31, 2026 compared to the same period in 2025, net loss decreased $48,000, or 28.7%, to a net loss of $118,000 for the three months ended March 31, 2026 compared to a net loss of $166,000 for the same period in 2025. The primary reasons for the decrease in net loss was an increase of $578,000 in total interest income and a decrease in interest expense on deposits of $614,000, offset by a decrease of $20,000 in noninterest income and an increase of $1.1 million in noninterest expense.
Current wording
General. For the three months ended June 30, 2026 compared to the same period in 2025, net income decreased $22,000, or 18.6%, to net income of $96,000 compared to a net income of $118,000 for the same period in 2025. The primary reason for the decrease in net income was an increase of $1.3 million in total noninterest expense, offset by an increase of $414,000 in interest income, an increase of $179,000 in noninterest income, a decrease of $650,000 in interest expense, and a decrease in tax expense of $22,000. For the six months ended June 30, 2026 compared to the same period in 2025, net loss decreased by $25,000, or 46.8%, to a net loss of $22,000 compared to a net loss of $47,000 for the same period in 2025. The primary reason for the decrease in net loss was an increase of $890,000 in interest income, a decrease of $1.3 million in interest expense, and an increase of $260,000 in noninterest income offset by an increase of $2.4 million in noninterest expense.
Previous wording
Interest Income. Interest income increased $578,000, or 12.3%, to $5.3 million for the three months ended March 31, 2026 compared to $4.7 million for the same period in 2025. The increase in interest income was due to a $614,000 increase in interest income on loans receivable as a result of the growth in the commercial loan portfolio. The increase was partially offset by a $134,000 decrease in interest income on investment securities due to a decrease in account balances as a result of maturities and paydowns. Other interest income increased by $98,000. The excess liquidity generated from the decrease in investment securities and cash account balances was used to fund the growth in the commercial loan portfolio.
Current wording
Interest Income. Interest income increased $414,000, or 8.3%, to $5.4 million for the three months ended June 30, 2026 compared to $5.0 million for the same period in 2025. The increase in interest income was due to a $626,000 increase in interest income on loans receivable as a result of the growth in the commercial loan portfolio. The increase was partially offset by a $114,000 decrease in interest income on investment securities due to a decrease in balances as a result of maturities and paydowns. Other interest income decreased by $98,000 due to lower average yields on cash and cash equivalents. The excess liquidity generated from the decrease in investment securities and cash account balances was used to fund the growth in the commercial loan portfolio. Interest income increased $890,000, or 9.1%, to $10.7 million for the six months ended June 30, 2026, compared to $9.8 million for the same period in 2025. The increase in interest income for the six month period was due to a $1.1 million increase in interest income on loans receivable in the commercial loan portfolio. The increase was partially offset by $237,000 decrease in interest income on investments due to a decrease in balances as a result of maturities and paydowns. Other interest income decreased by $13,000 due to lower average yields on cash and cash equivalents.
Previous wording
Provision for Credit Losses. The provision for credit losses was flat at $135,000 for both the three months ended March 31, 2026 and 2025.
Current wording
Provision for Credit Losses. The provision for credit losses was flat at $135,000 for both the three months ended June 30, 2026 and 2025, and at $270,000 for both the six months ended June 30, 2026 and 2025. The additional provision expense was recorded primarily due to the growth in the loan portfolio.
Previous wording
Tax Expense (benefit). Tax expense (benefit) decreased $21,000, or 27.3%, to $56,000 for the three months ended March 31, 2026, from $77,000 for the same period in 2025. The major factor in the decrease was the lower net loss between the periods.
Current wording
Tax Expense (benefit). Tax expense (benefit) decreased $22,000, or 30.5%, to $50,000 for the three months ended June 30, 2026, from $72,000 for the same period in 2025. The major factor in the decrease was the lower net income between the periods. Tax benefit increased $1,000, or 20.0%, to a benefit of $6,000 for the six months ended June 30, 2026, from a benefit of $5,000 for the same period in 2025, primarily as a result of the lower net loss between the periods.
Previous wording
Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities of securities. We also have the ability to borrow from the FHLB of Chicago. As of March 31, 2026, we had no outstanding advances from the FHLB of Chicago, and had the capacity to borrow approximately $65.7 million from the FHLB of Chicago.
Current wording
Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities of securities. We also have the ability to borrow from the FHLB of Chicago and Bankers Bank. As of June 30, 2026, we had no outstanding FHLB advances, and had the capacity to borrow approximately $57.9 million from the FHLB of Chicago and $23.0 million from Bankers Bank.
Previous wording
Our cash flows are comprised of three primary classifications: cash flows provided by (used in) operating activities, investing activities, and financing activities. Net cash provided by (used in) operating activities was ($821,000) and $905,000 for the three months ended March 31, 2026 and 2025, respectively. Net cash provided by (used in) investing activities, which consists primarily of change in loans receivable, was ($22.1 million) and $2.3 million for the three months ended March 31, 2026 and 2025, respectively. Net cash provided by (used in) financing activities, which primarily consists of change in deposits, was ($11.2 million) and $12.6 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Our cash flows are comprised of three primary classifications: cash flows provided by (used in) operating activities, investing activities, and financing activities. Net cash provided by (used in) operating activities was ($1.3 million) and $2.7 million for the six months ended June 30, 2026 and 2025, respectively. Net cash provided by (used in) investing activities, which consists primarily of changes in loans receivable, was ($11.9 million) and $5.8 million for the six months ended June 30, 2026 and 2025, respectively. Net cash provided by (used in) financing activities, which primarily
Previous wording
As of March 31, 2026, Hoyne Savings Bank was considered well capitalized under the regulatory framework for prompt corrective action. During the year ended December 31, 2023, Hoyne Savings Bank elected to begin using the Community Bank Leverage Ratio Framework (the “CBLRF”). Under CBLRF, if a qualifying depository institution or depository institution holding company elects to use such measure, such institution or holding company will be considered well capitalized if its ratio of Tier 1 capital to average total consolidated assets (i.e., leverage ratio) exceeds 9.0% subject to a limited two-quarter grace period, during which the leverage ratio cannot go 100 basis points below the then- applicable threshold, and will not be required to calculate and report risk-based capital ratios. Hoyne Savings Bank’s Tier 1 capital to average assets for the leverage ratio was 27.8% and 24.8% as of March 31, 2026 and December 31, 2025, respectively. Additionally, as of March 31, 2026, we exceeded all of our regulatory capital requirements with a Tier 1 leverage capital level by $90.0 million, or 18.8%.
Current wording
As of June 30, 2026, the Bank was considered well capitalized under the regulatory framework for prompt corrective action. During the year ended December 31, 2023, the Bank elected to begin using the Community Bank Leverage Ratio Framework (the “CBLRF”). Under CBLRF, if a qualifying depository institution or depository institution holding company elects to use such measure, such institution or holding company will be considered well capitalized if its ratio of Tier 1 capital to average total consolidated assets (i.e., leverage ratio) exceeds 9.0% subject to a limited two-quarter grace period, during which the leverage ratio cannot go 100 basis points below the then- applicable threshold, and will not be required to calculate and report risk-based capital ratios. The Bank’s Tier 1 capital to average assets for the leverage ratio was 27.3% and 24.8% as of June 30, 2026 and December 31, 2025, respectively. Additionally, as of June 30, 2026, the Bank exceeded all applicable regulatory capital requirements, including the Tier 1 leverage capital level by $85.3 million, or 18.3%.
Previous wording
substantial portion of the maturing certificates of deposit will be renewed. However, if a substantial portion of these deposits is not retained, we may utilize FHLB of Chicago advances or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.
Current wording
Off-Balance Sheet Arrangements*.*As of June 30, 2026, we had $71.7 million of outstanding commitments to originate loans. We had unfunded construction loans as of June 30, 2026 of $12.9 million. Certificates of deposit that are scheduled to mature in less than one year from June 30, 2026, totaled $138.2 million. Management expects that a substantial portion of the maturing certificates of deposit will be renewed. However, if a substantial portion of these deposits are not retained, we may utilize FHLB of Chicago advances or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.
Previous wording
The table above indicates that as of March 31, 2026, in the event of an immediate and sustained 300 basis point increase in interest rates, our net interest income for the twelve months ending March 31, 2027 would be expected to decrease by $1.2 million, or 6.3% to $17.6 million.
Current wording
The table above indicates that as of June 30, 2026, in the event of an immediate and sustained 300 basis point increase in interest rates, our net interest income for the twelve months ending June 30, 2027 would be expected to decrease by $1.0 million, or 5.2% to $18.8 million.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Off-Balance Sheet Arrangements*.*As of March 31, 2026, we had $57.5 million of outstanding commitments to originate loans. We had unfunded construction loans as of March 31, 2026 of $14.0 million. Certificates of deposit that are scheduled to mature in less than one year from March 31, 2026, totaled $147.4 million. Management expects that a