HOME BANCORP, INC.
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
View on SEC.govAbout this filing
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.
Sep 30, 2026 · Filed Nov 4, 2026
HBCP$60.94+0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-03.
0001628280-26-051688
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001628280-26-069912
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 94 previous paragraphs and 93 current paragraphs.
51 unchanged; 37 reworded; 5 added; 5 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 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 (5)
Current report
•During the three and nine months ended September 30, 2026, the Company recorded provisions for credit losses of $1.0 million and $2.7 million, respectively. The provision for the three months ended September 30, 2026 was primarily attributable to increased reserves on individually analyzed loans, partially offset by the reduction in total loans, while the provision for the nine months ended September 30, 2026 was driven by increased reserves on individually analyzed loans, loan growth, and net charge-offs. During the three and nine months ended September 30, 2025, the Company reversed $229,000 and provisioned $654,000, respectively, to the ALL.
Current report
•Total interest expense was $13.8 million and $40.5 million for the three and nine months ended September 30, 2026, respectively, down $1.3 million, or 8.5%, and down $5.3 million, or 11.7%, from the three and nine months ended September 30, 2025.
Current report
Net income for the third quarter of 2026 was $10.1 million, down $2.3 million, or 18.3%, compared to the third quarter of 2025. Diluted EPS for the third quarter of 2026 was $1.28, down $0.31 compared to the third quarter of 2025.
Current report
During the three and nine months ended September 30, 2026, the Company recorded provisions of $1.0 million and $2.7 million, respectively. The provision for the three months ended September 30, 2026 was primarily attributable to increased reserves on individually analyzed loans, partially offset by the reduction in total loans, while the provision for the nine months ended September 30, 2026 was driven by increased reserves on individually analyzed loans, loan growth, and net charge-offs. During the three months ended September 30, 2025, the Company reversed $229,000 of the ALL, primarily due to loan reduction during the quarter. During the nine months ended September 30, 2025, the Company provisioned $654,000 to the ALL, primarily due to an increase in nonaccrual loans during the year.
Current report
Noninterest income for the nine months ended September 30, 2026 totaled $11.9 million, up $395,000, or 3.4%, from $11.5 million earned for the same period in 2025. Noninterest income increased over the comparable periods primarily due to increases in service fees and charges (up $294,000) and bank card fees (up $111,000).
Removed paragraphs (5)
Previous report
•During the three and six months ended June 30, 2026, the Company provisioned $762,000 and $1,684,000, respectively, to the ALL, primarily due to loan growth and net charge-offs. During the three and six months ended June 30, 2025, the Company provisioned $489,000 and $883,000, respectively, to the ALL.
Previous report
•Total interest expense was $13.4 million and $26.7 million for the three and six months ended June 30, 2026, respectively, down $1.9 million, or 12.2% and down $4.1 million, or 13.2% from the three and six months ended June 30, 2025.
Previous report
Net income for the second quarter of 2026 was $11.6 million, up $285,000, or 2.5%, compared to the second quarter of 2025. Diluted EPS for the second quarter of 2026 was $1.48, up $0.03 compared to the second quarter of 2025.
Previous report
During the three and six months ended June 30, 2026, the Company provisioned $762,000 and $1.7 million, respectively, to the ALL, primarily due to loan growth and net charge-offs. During the three and six months ended June 30, 2025, the Company provisioned $489,000 and $883,000, respectively, to the ALL, primarily due to loan growth.
Previous report
Noninterest income for the six months ended June 30, 2026 totaled $7.7 million, down $68,000, or 0.9%, from $7.7 million earned for the same period in 2025. Noninterest income decreased over the comparable periods primarily due to decreases in other income (down $216,000) and gain on sale of loans (down $32,000), which were partially offset by an increase in service fees and charges (up $190,000).
Reworded paragraphs (37)
Previous wording
The purpose of this discussion and analysis is to focus on significant changes in the financial condition of the Company and the Bank from December 31, 2025 through June 30, 2026 and on its results of operations for the three and six months ended June 30, 2026 and 2025. This discussion and analysis is intended to highlight and supplement information presented elsewhere in this quarterly report on Form 10-Q, particularly the consolidated financial statements and related notes appearing in Item 1.
Current wording
The purpose of this discussion and analysis is to focus on significant changes in the financial condition of the Company and the Bank from December 31, 2025 through September 30, 2026 and on its results of operations for the three and nine months ended September 30, 2026 and 2025. This discussion and analysis is intended to highlight and supplement information presented elsewhere in this quarterly report on Form 10-Q, particularly the consolidated financial statements and related notes appearing in Item 1.
Previous wording
The Company reported net income for the second quarter of 2026 of $11.6 million, or $1.48 diluted EPS, up $285,000, or 2.5%, compared to the second quarter of 2025. Net income for the second quarter of 2025 totaled $11.3 million, or $1.45 diluted EPS. For the six months ended June 30, 2026, the Company reported net income $23.0 million, or $2.93 diluted EPS, up $681,000 from $22.3 million, or $2.82 diluted EPS, reported for the six months ended June 30, 2025.
Current wording
The Company reported net income for the third quarter of 2026 of $10.1 million, or $1.28 diluted EPS, down $2.3 million, or 18.3%, compared to the third quarter of 2025. Net income for the third quarter of 2025 totaled $12.4 million, or $1.59 diluted EPS. For the nine months ended September 30, 2026, the Company reported net income of $33.1 million, or $4.21 diluted EPS, down $1.6 million from $34.7 million, or $4.41 diluted EPS, reported for the nine months ended September 30, 2025.
Previous wording
Key components of the Company’s performance during the three and six months ended June 30, 2026 include:
Current wording
Key components of the Company’s performance during the three and nine months ended September 30, 2026 include:
Previous wording
•Assets increased $110.6 million, or 3.2%, from December 31, 2025 to $3.6 billion at June 30, 2026.
Current wording
•Assets increased $103.7 million, or 3.0%, from December 31, 2025 to $3.6 billion at September 30, 2026.
Previous wording
•Total loans were $2.8 billion at June 30, 2026, up $34.9 million, or 1.3%, from December 31, 2025.
Current wording
•Total loans were $2.8 billion at September 30, 2026, up $30.8 million, or 1.1%, from December 31, 2025.
Previous wording
•The ALL totaled $34.0 million, or 1.22% of total loans, at June 30, 2026 compared to $33.1 million, or 1.21% of total loans, at December 31, 2025. The ACL, which is comprised of the ALL plus the allowance for unfunded lending commitments, totaled $35.6 million, or 1.28% of total loans, at June 30, 2026 compared to $34.8 million, or 1.27% of total loans, at December 31, 2025.
Current wording
•The ALL totaled $34.4 million, or 1.24% of total loans, at September 30, 2026 compared to $33.1 million, or 1.21% of total loans, at December 31, 2025. The ACL, which is comprised of the ALL plus the allowance for unfunded lending commitments, totaled $36.1 million, or 1.30% of total loans, at September 30, 2026 compared to $34.8 million, or 1.27% of total loans, at December 31, 2025.
Previous wording
•Nonperforming assets ("NPAs") increased $3.1 million, or 8.6%, from $36.1 million, or 1.03% of total assets, at December 31, 2025 to $39.2 million, or 1.09% of total assets, at June 30, 2026. The increase in NPAs during the six months ended June 30, 2026 was primarily attributable to multiple loan relationships (with the largest relationship totaling $1.3 million) moving to nonaccrual status during 2026, which was partially offset by paydowns.
Current wording
•Nonperforming assets ("NPAs") increased $17.6 million, or 48.8%, from $36.1 million, or 1.03% of total assets, at December 31, 2025 to $53.7 million, or 1.49% of total assets, at September 30, 2026. The increase in NPAs during the nine months ended September 30, 2026 was primarily attributable to multiple loan relationships (with the largest relationship totaling $7.3 million) moving to nonaccrual status during 2026, which was partially offset by payoffs and paydowns.
Previous wording
•Total deposits amounted to $3.1 billion at June 30, 2026, an increase of $96.1 million, or 3.2%, from December 31, 2025.
Current wording
•Total deposits amounted to $3.1 billion at September 30, 2026, an increase of $80.7 million, or 2.7%, from December 31, 2025.
Previous wording
•The net interest margin was 4.24% and 4.20% for the three and six months ended June 30, 2026, respectively, up 20 bps and 22 bps from the three and six months ended June 30, 2025. The increase was primarily due to a decline in the average cost of interest-bearing liabilities.
Current wording
•The net interest margin was 4.19% and 4.20% for the three and nine months ended September 30, 2026, respectively, up 9 bps and 18 bps from the three and nine months ended September 30, 2025. The increase was primarily due to a decline in funding costs.
Previous wording
•The average rate paid on total interest-bearing deposits was 2.28% and 2.29% for the three and six months ended June 30, 2026, respectively, down 24 bps and 23 bps from the three and six months ended June 30, 2025.
Current wording
•The average rate paid on total interest-bearing deposits was 2.33% and 2.30% for the three and nine months ended September 30, 2026, respectively, down 24 bps and 24 bps from the three and nine months ended September 30, 2025.
Previous wording
•Noninterest income for the second quarter of 2026 was $3.9 million, up $203,000, or 5.5%, compared to the second quarter of 2025, primarily due to increases in gain on sale of loans (up $115,000), service fees and charges (up $62,000), and other income (up $50,000), which were partially offset by a decrease in bank card fees (down $32,000). For the six months ended June 30, 2026, noninterest income was down $68,000, or 0.9%, from the comparable period in 2025 primarily due to decreases in other income (down $216,000) and gain on sale of loans (down $32,000), which were partially offset by an increase in service fees and charges (up $190,000).
Current wording
•Noninterest income for the third quarter of 2026 was $4.2 million, up $463,000, or 12.4%, compared to the third quarter of 2025, primarily due to increases in other income (up $215,000), bank card fees (up $127,000), and service fees and charges (up $104,000). For the nine months ended September 30, 2026, noninterest income was up $395,000, or 3.4%, from the comparable period in 2025 primarily due to increases in service fees and charges (up $294,000) and bank card fees (up $111,000).
Previous wording
•Noninterest expense for the second quarter of 2026 was $24.6 million, up $2.1 million, or 9.6%, compared to the second quarter of 2025, primarily due to an increase in compensation and benefits (up $1.7 million) and the absence of a reversal to the ACL on unfunded commitments ($970,000), which were partially offset by decreases in other expenses (down $445,000) and franchise and shares tax (down $143,000). For the six months ended June 30, 2026, noninterest expense was up $3.5 million, or 8.0%, from the comparable period in 2025 primarily due to an increase in compensation and benefits (up $2.8 million) and the absence of a reversal to the ACL on unfunded commitments ($970,000), partially offset by a decrease in franchise and shares tax (down $279,000).
Current wording
•Noninterest expense for the third quarter of 2026 was $26.3 million, up $3.8 million, or 16.8%, compared to the third quarter of 2025, primarily due to increases in foreclosed assets, net (up $1.7 million primarily for write downs on foreclosed assets due to updated values or contracts), compensation and benefits (up $1.6 million), other expenses (up $356,000), and data processing and communication (up $278,000), which were partially offset by a decrease in occupancy (down $81,000). For the nine months ended September 30, 2026, noninterest expense was up $7.3 million, or 11.0%, from the comparable period in 2025 primarily due to an increase in compensation and benefits (up $4.4 million), foreclosed assets, net (up $1.5 million primarily for write downs on foreclosed assets due to updated values or contracts), the absence of a reversal to the ACL on unfunded commitments ($970,000), and other expenses (up $697,000), partially offset by a decrease in franchise and shares tax (down $222,000).
Previous wording
Total loans at June 30, 2026 were $2.8 billion, up $34.9 million, or 1.3%, from December 31, 2025.
Current wording
Total loans at September 30, 2026 were $2.8 billion, up $30.8 million, or 1.1%, from December 31, 2025.
Previous wording
At June 30, 2026, the ALL totaled $34.0 million, or 1.22% of total loans, up $852,000 from $33.1 million, or 1.21% of total loans, at December 31, 2025. During the six months ended June 30, 2026, the Company provisioned $1.7 million to the ALL primarily due to loan growth and net charge-offs. Net loan charge-offs totaled $832,000 for the six months ended June 30, 2026.
Current wording
At September 30, 2026, the ALL totaled $34.4 million, or 1.24% of total loans, up $1.3 million from $33.1 million, or 1.21% of total loans, at December 31, 2025. During the nine months ended September 30, 2026, the Company provisioned $2.7 million to the ALL primarily due to increased reserves on individually analyzed loans, loan growth, and net charge-offs. Net loan charge-offs totaled $1.4 million for the nine months ended September 30, 2026.
Previous wording
At June 30, 2026 and December 31, 2025, loans identified as credit deteriorated loans and individually evaluated for expected losses were $4.5 million and $6.2 million, respectively. The following tables provide a summary of loans individually evaluated for credit losses as of the dates indicated.
Current wording
At September 30, 2026 and December 31, 2025, loans identified as credit deteriorated loans and individually evaluated for expected losses were $8.9 million and $6.2 million, respectively. The following tables provide a summary of loans individually evaluated for credit losses as of the dates indicated.
Previous wording
Federal regulations and our policies require that we utilize an internal asset classification system as a means of reporting problem and potential problem assets. We have incorporated an internal asset classification system, substantially consistent with Federal banking regulations, as a part of our credit monitoring system. Federal banking regulations set forth a classification scheme for problem and potential problem assets as “substandard,” “doubtful” or “loss” assets. An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” assets include those characterized by the “distinct possibility” that the insured institution will sustain “some loss” if the deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions and values, “highly questionable and improbable.” Assets classified as “loss”
Current wording
Federal regulations and our policies require that we utilize an internal asset classification system as a means of reporting problem and potential problem assets. We have incorporated an internal asset classification system, substantially consistent with Federal banking regulations, as a part of our credit monitoring system. Federal banking regulations set forth a classification scheme for problem and potential problem assets as “substandard,” “doubtful” or “loss” assets. An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” assets include those characterized by the “distinct possibility” that the insured institution will sustain “some loss” if the deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions and values, “highly questionable and improbable.” Assets classified as “loss” are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted.
Previous wording
At June 30, 2026 and December 31, 2025, loans classified as substandard totaled $68.9 million and $61.1 million, respectively. There were no assets classified as doubtful at either date. For additional information, refer to Note 5 to the Consolidated Financial Statements.
Current wording
At September 30, 2026 and December 31, 2025, loans classified as substandard totaled $82.9 million and $61.1 million, respectively. There were no assets classified as doubtful at either date. For additional information, refer to Note 5 to the Consolidated Financial Statements.
Previous wording
Total nonperforming loans decreased by $7.8 million, or 22.7%, to $26.4 million at June 30, 2026, compared to $34.2 million at December 31, 2025. The decrease was primarily attributable to three loan relationships with an aggregate outstanding balance of $12.0 million at June 30, 2026 that transferred to foreclosed assets and paydowns, which was partially offset by multiple loan relationships (with the largest relationship totaling $1.3 million) moving to nonaccrual status during 2026.
Current wording
Total nonperforming loans increased by $8.0 million, or 23.4%, to $42.2 million at September 30, 2026, compared to $34.2 million at December 31, 2025. The increase was primarily attributable to multiple loan relationships (with the largest relationship totaling $7.3 million) moving to nonaccrual status during 2026, which was partially offset primarily by six loan relationships with an aggregate outstanding balance of $15.3 million at September 30, 2026 that transferred to foreclosed assets, along with payoffs and paydowns.
Previous wording
(1)Nonaccrual acquired loans include PCD loans of $1.1 million and $1.2 million at June 30, 2026 and December 31, 2025, respectively.
Current wording
(1)Nonaccrual acquired loans include PCD loans of $0.0 million and $1.2 million at September 30, 2026 and December 31, 2025, respectively.
Previous wording
The Company’s investment securities portfolio totaled $409.1 million as of June 30, 2026, an increase of $16.6 million, or 4.2%, from December 31, 2025. During the second quarters of 2026 and 2025, the Company had no gains or losses related to the sale of available for sale investment securities. At June 30, 2026, the Company had a net unrealized loss on its available for sale investment securities portfolio of $25.0 million, compared to a net unrealized loss of $23.4 million at December 31, 2025. The Company’s investment securities portfolio had an effective duration of 3.4 years and 3.3 years at June 30, 2026 and December 31, 2025, respectively.
Current wording
The Company’s investment securities portfolio totaled $415.6 million as of September 30, 2026, an increase of $23.1 million, or 5.9%, from December 31, 2025. During the years 2026 and 2025, the Company had no gains or losses related to the sale of available for sale investment securities. At September 30, 2026, the Company had a net unrealized loss on its available for sale investment securities portfolio of $36.5 million, compared to a net unrealized loss of $23.4 million at December 31, 2025. The Company’s investment securities portfolio had an effective duration of 3.6 years and 3.3 years at September 30, 2026 and December 31, 2025, respectively.
Previous wording
The following table summarizes activity in the Company’s investment securities portfolio during the six months ended June 30, 2026.
Current wording
The following table summarizes activity in the Company’s investment securities portfolio during the nine months ended September 30, 2026.
Previous wording
Deposits totaled $3.1 billion at June 30, 2026, an increase of $96.1 million, or 3.2%, compared to December 31, 2025. The following table summarizes the changes in the Company’s deposits from December 31, 2025 to June 30, 2026.
Current wording
Deposits totaled $3.1 billion at September 30, 2026, an increase of $80.7 million, or 2.7%, compared to December 31, 2025. The following table summarizes the changes in the Company’s deposits from December 31, 2025 to September 30, 2026.
Previous wording
The average rate paid on interest-bearing deposits was 2.28% for the second quarter of 2026, down 24 bps compared to the second quarter of 2025. At June 30, 2026, certificates of deposit maturing within the next 12 months totaled $714.7 million.
Current wording
The average rate paid on interest-bearing deposits was 2.33% for the third quarter of 2026, down 24 bps compared to the third quarter of 2025. At September 30, 2026, certificates of deposit maturing within the next 12 months totaled $729.4 million.
Previous wording
The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with Federal Deposit Insurance Corporation ("FDIC") regulations) were $959.4 million at June 30, 2026 and $885.4 million at December 31, 2025. Public funds in excess of the FDIC insurance limits are fully collateralized.
Current wording
The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with Federal Deposit Insurance Corporation ("FDIC") regulations) were $933.7 million at September 30, 2026 and $885.4 million at December 31, 2025. Public funds in excess of the FDIC insurance limits are fully collateralized.
Previous wording
The average balance of total FHLB advances was $0.0 million for the second quarter of 2026, down $114.0 million compared to the second quarter of 2025.
Current wording
The average balance of total FHLB advances was $0.0 million for the third quarter of 2026, down $39.4 million compared to the third quarter of 2025.
Previous wording
Total shareholders’ equity increased $18.4 million, or 4.2%, from $435.1 million at December 31, 2025 to $453.5 million at June 30, 2026. Shareholders' equity increased primarily due to net income of $23.0 million, which was partially offset by an increase in the accumulated other comprehensive loss on available for sale investment securities and cash dividends paid on the common stock during the six months ended June 30, 2026.
Current wording
Total shareholders’ equity increased $18.0 million, or 4.1%, from $435.1 million at December 31, 2025 to $453.1 million at September 30, 2026. Shareholders' equity increased primarily due to net income of $33.1 million, which was partially offset by an increase in the accumulated other comprehensive loss on available for sale investment securities and cash dividends paid on the common stock during the nine months ended September 30, 2026.
Previous wording
The Company uses its liquidity to fund existing and future loan commitments, to fund maturing certificates of deposit and demand deposit withdrawals, to invest in other interest-earning assets and to meet operating expenses. At June 30, 2026, certificates of deposit maturing within the next 12 months totaled $714.7 million. Based upon historical experience, the Company anticipates that a significant portion of the maturing certificates of deposit will be redeposited with us.
Current wording
The Company uses its liquidity to fund existing and future loan commitments, to fund maturing certificates of deposit and demand deposit withdrawals, to invest in other interest-earning assets and to meet operating expenses. At September 30, 2026, certificates of deposit maturing within the next 12 months totaled $729.4 million. Based upon historical experience, the Company anticipates that a significant portion of the maturing certificates of deposit will be redeposited with us.
Previous wording
In addition to cash flow from loan and securities payments and prepayments as well as from sales of securities available for sale, the Company has significant borrowing capacity available to fund liquidity needs. In recent years, the Company has utilized borrowings as a cost efficient addition to deposits as a source of funds. Borrowings consist of advances from the FHLB of Dallas, of which the Company is a member. Under terms of the collateral agreement with the FHLB, the Company pledges residential mortgage loans and investment securities as well as the Company’s stock in the FHLB as collateral for such advances. For the six months ended June 30, 2026, the average balance of outstanding FHLB advances was $949,000. At June 30, 2026, the Company had $0.0 million in total outstanding FHLB advances.
Current wording
In addition to cash flow from loan and securities payments and prepayments as well as from sales of securities available for sale, the Company has significant borrowing capacity available to fund liquidity needs. In recent years, the Company has utilized borrowings as a cost efficient addition to deposits as a source of funds. Borrowings consist of advances from the FHLB of Dallas, of which the Company is a member. Under terms of the collateral agreement with the FHLB, the Company pledges residential mortgage loans and investment securities as well as the Company’s stock in the FHLB as collateral for such advances. For the nine months ended September 30, 2026, the average balance of outstanding FHLB advances was $629,000. At September 30, 2026, the Company had no outstanding FHLB advances.
Previous wording
Net income for the six months ended June 30, 2026 was $23.0 million, up $681,000, compared to the six months ended June 30, 2025. Diluted EPS for the six months ended June 30, 2026 was $2.93, up $0.11 compared to the six months ended June 30, 2025.
Current wording
Net income for the nine months ended September 30, 2026 was $33.1 million, down $1.6 million, compared to the nine months ended September 30, 2025. Diluted EPS for the nine months ended September 30, 2026 was $4.21, down $0.20 compared to the nine months ended September 30, 2025.
Previous wording
Net interest income is the difference between the interest income earned on interest-earning assets, such as loans and investment securities, and the interest expense paid on interest-bearing liabilities, such as deposits and borrowings. The Company’s net interest income is largely determined by our net interest spread, which is the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities, and the relative amounts of interest-earning assets and interest-bearing liabilities. The Company’s taxable equivalent ("TE") net interest spread was 3.47% and 3.21% for the quarters ended June 30, 2026 and 2025, respectively, and 3.44% and 3.16% for the six months ended June 30, 2026 and 2025, respectively.
Current wording
Net interest income is the difference between the interest income earned on interest-earning assets, such as loans and investment securities, and the interest expense paid on interest-bearing liabilities, such as deposits and borrowings. The Company’s net interest income is largely determined by our net interest spread, which is the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities, and the relative amounts of interest-earning assets and interest-bearing liabilities. The Company’s taxable equivalent ("TE") net interest spread was 3.40% and 3.26% for the quarters ended September 30, 2026 and 2025, respectively, and 3.43% and 3.19% for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
Net interest income totaled $35.8 million for the second quarter of 2026, up $2.5 million, or 7.4%, compared to the second quarter of 2025. For the six months ended June 30, 2026, net interest income totaled $70.3 million, up $5.2 million, or 8.0%, compared to the six months ended June 30, 2025.
Current wording
Net interest income totaled $35.9 million for the third quarter of 2026, up $1.8 million, or 5.3%, compared to the third quarter of 2025. For the nine months ended September 30, 2026, net interest income totaled $106.2 million, up $7.0 million, or 7.1%, compared to the nine months ended September 30, 2025.
Previous wording
The Company’s TE net interest margin, which is net interest income as a percentage of average interest-earning assets, was 4.24% and 4.04% for the quarters ended June 30, 2026 and 2025, respectively. For the same periods, the average loan yield was 6.46% and 6.50%, respectively.
Current wording
The Company’s TE net interest margin, which is net interest income as a percentage of average interest-earning assets, was 4.19% and 4.10% for the quarters ended September 30, 2026 and 2025, respectively. For the same periods, the average loan yield was 6.40% and 6.53%, respectively. The Company’s net interest margin increased over the comparable periods, primarily due to lower funding costs in the third quarter of 2026. However, during the third quarter of 2026, the net interest margin was adversely impacted by approximately 9 basis points due to lower loan yields resulting from the transfer of six loan relationships to nonaccrual status. These transfers resulted in approximately $862,000 in interest income reversals, reducing the average loan yield by approximately 12 basis points.
Previous wording
The net interest margin for the six months ended June 30, 2026 and 2025 was 4.20% and 3.98%, respectively. For the same periods, the average loan yield was 6.43% and 6.46%, respectively.
Current wording
The net interest margin for the nine months ended September 30, 2026 and 2025 was 4.20% and 4.02%, respectively. For the same periods, the average loan yield was 6.42% and 6.49%, respectively. The Company's net interest margin increased over the comparable periods, primarily due to lower funding costs in 2026, which was partially offset by loans transferred to nonaccrual status, reducing the net interest margin by approximately 3 basis points and the average loan yield by approximately 5 basis points in 2026.
Previous wording
Noninterest income for the second quarter of 2026 totaled $3.9 million, up $203,000, or 5.5%, from $3.7 million earned for the same period in 2025. Noninterest income increased over the comparable period primarily due to increases in gain on sale of loans (up $115,000), service fees and charges (up $62,000), and other income (up $50,000), which were partially offset by a decrease in bank card fees (down $32,000).
Current wording
Noninterest income for the third quarter of 2026 totaled $4.2 million, up $463,000, or 12.4%, from $3.7 million earned for the same period in 2025. Noninterest income increased over the comparable period primarily due to increases in other income (up $215,000), bank card fees (up $127,000), and service fees and charges (up $104,000).
Previous wording
Noninterest expense for the second quarter of 2026 totaled $24.6 million, up $2.1 million, or 9.6%, from the second quarter of 2025. Noninterest expense increased over the comparable quarter primarily due to an increase in compensation and benefits (up $1.7 million) and the absence of a reversal to the ACL on unfunded commitments ($970,000), which were partially offset by decreases in other expenses (down $445,000) and franchise and shares tax (down $143,000).
Current wording
Noninterest expense for the third quarter of 2026 totaled $26.3 million, up $3.8 million, or 16.8%, from the third quarter of 2025. Noninterest expense increased over the comparable quarter primarily due to an increase in foreclosed assets, net (up $1.7 million primarily for write downs on foreclosed assets due to updated values or contracts), compensation and benefits (up $1.6 million), other expenses (up $356,000), and data processing and communication (up $278,000), which were partially offset by a decrease in occupancy (down $81,000).
Previous wording
Noninterest expense for the six months ended June 30, 2026 totaled $47.5 million, up $3.5 million, or 8.0%, from the same period in 2025. Noninterest expense increased over the comparable quarter primarily due to an increase in compensation and benefits (up $2.8 million) and the absence of a reversal to the ACL on unfunded commitments ($970,000), partially offset by a decrease in franchise and shares tax (down $279,000).
Current wording
Noninterest expense for the nine months ended September 30, 2026 totaled $73.8 million, up $7.3 million, or 11.0%, from the same period in 2025. Noninterest expense increased over the comparable quarter primarily due to an increase in compensation and benefits (up $4.4 million), foreclosed assets, net (up $1.5 million primarily for write downs on foreclosed assets due to updated values or contracts), the absence of a reversal to the ACL on unfunded commitments ($970,000), and other expenses (up $697,000), partially offset by a decrease in franchise and shares tax (down $222,000).
Previous wording
Income tax expense for the three and six months ended June 30, 2026 totaled $2.8 million and $5.8 million, respectively, compared to $2.8 million and $5.7 million for the three and six months ended June 30, 2025, respectively. The Company's effective tax rates for the second quarters of 2026 and 2025 were 19.4% and 20.0%, respectively. For the six months ended June 30, 2026 and 2025, the Company's effective tax rates were 20.1% and 20.3%, respectively.
Current wording
Income tax expense for the three and nine months ended September 30, 2026 totaled $2.7 million and $8.5 million, respectively, compared to $3.2 million and $8.8 million for the three and nine months ended September 30, 2025, respectively. The Company's effective tax rates for the third quarters of 2026 and 2025 were 21.0% and 20.5%, respectively. For the nine months ended September 30, 2026 and 2025, the Company's effective tax rates were 20.4% and 20.3%, respectively.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted.