FVCBankcorp, Inc.
For the period ended Sep 30, 2026. Filed Nov 5, 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 5, 2026
FVCB$16.25-0.2%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 2026-08-06.
0001675644-26-000081
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001675644-26-000091
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 191 previous paragraphs and 192 current paragraphs.
104 unchanged; 83 reworded; 4 added; 4 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 20 previous and 19 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 (4)
Current report
Noninterest income was $303 thousand and $1.0 million for the three months ended September 30, 2026 and 2025, respectively. Noninterest expense was $10.0 million for the three months ended September 30, 2026 compared to $9.5 million for the three months ended September 30, 2025, an increase of $514 thousand, or 5%.
Current report
Provision for credit losses was $596 thousand and $680 thousand for the nine months ended September 30, 2026 and 2025, respectively. Noninterest income was $3.3 million and $2.7 million for the nine months ended September 30, 2026 and 2025, respectively, an increase of $627 thousand, or 23%. Noninterest expense was $30.4 million and $28.0 million for the nine months ended September 30, 2026 and 2025, respectively, an increase of $2.4 million, or 9%.
Current report
2.42% for the nine months ended September 30, 2026 compared to 2.75% for the same nine month period of 2025, a decrease of 33 basis points. Average noninterest-bearing deposits increased $16.3 million to $376.6 million for the nine months ended September 30, 2026 compared to $360.3 million for the same period of 2025.
Current report
For the nine months ended September 30, 2026 and 2025, we recorded noninterest income of $3.3 million and $2.7 million, respectively, an increase of $627 thousand, or 23%. The nine month period of 2026 includes a one-time pre-tax gain of $847 thousand for the completed sale of our interest in Bearing Insurance Group, LLC to an unaffiliated third party during the second quarter of 2026. Fee income from loans was $238 thousand for the nine months ended September 30, 2026, compared to $145 thousand for the same period of 2025. Service charges on deposit accounts totaled $1.3 million for the nine months ended September 30, 2026, compared to $873 thousand for the nine months ended September 30, 2025, an increase of $391 thousand, or 45%. Income from the minority interest in ACM was $437 thousand for the nine months ended September 30, 2026, compared to $1.0 million for the same period of 2025. During the nine months ended September 30, 2025, we unwound $15 million of our pay-fixed/receive floating interest rate swaps and the funding associated with that hedge, resulting in a gain of $154 thousand. No such gain was recorded during 2026.
Removed paragraphs (4)
Previous report
Noninterest income was $2.2 million and $1.0 million for the three months ended June 30, 2026 and 2025, respectively, an increase of $1.1 million, or 113%. Noninterest expense was $10.6 million for the three months ended June 30, 2026 compared to $9.4 million for the three months ended June 30, 2025, an increase of $1.2 million, or 12%.
Previous report
Provision for credit losses was $409 thousand and $305 thousand for the six months ended June 30, 2026 and 2025, respectively. Noninterest income was $3.0 million and$1.7 million for the six months ended June 30, 2026 and 2025, respectively, an increase of $1.4 million, or 81%. Noninterest expense was $20.5 million and $18.6 million for the six months ended June 30, 2026 and 2025, respectively, an increase of $1.9 million, or 10%.
Previous report
Forthe six months ended June 30, 2026 and 2025, werecorded noninterest income of $3.0 million and $1.7 million, respectively, an increase of $1.4 million, or 81%. The six month period of 2026 includes the aforementioned pre-tax gain on the completed sale of our equity interest in Bearing Insurance Group, LLC.
Previous report
Fee income from loans was $187 thousand for the six months ended June 30, 2026, compared to $110 thousand for the same period of 2025. Service charges on deposit accounts totaled $789 thousand for the six months ended June 30, 2026, compared to $552 thousand for the six months ended June 30, 2025, an increase of $237 thousand, or 43%. Income from BOLI increased to $147 thousand for the six months ended June 30, 2026 compared to $141 thousand for the same period of 2025. Income from the minority interest in ACM was $840 thousand for the six months ended June 30, 2026, compared to $492 thousand for the same period of 2025, an increase of $348 thousand, or 71%.
Reworded paragraphs (83)
Previous wording
The following presents management’s discussion and analysis of our consolidated financial condition at June 30, 2026 and December 31, 2025 and the results of our operations for the three and six months ended June 30, 2026 and 2025. This discussion should be read in conjunction with our unaudited consolidated financial statements and the notes thereto appearing elsewhere in this report and the audited consolidated financial statements and the notes to consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025. Results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results of operations for the balance of 2026, or for any other period. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause results to differ materially from management’s expectations.
Current wording
The following presents management’s discussion and analysis of our consolidated financial condition at September 30, 2026 and December 31, 2025 and the results of our operations for the three and nine months ended September 30, 2026 and 2025. This discussion should be read in conjunction with our unaudited consolidated financial statements and the notes thereto appearing elsewhere in this report and the audited consolidated financial statements and the notes to consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025. Results of operations for the three and nine months ended September 30, 2026 are not necessarily indicative of the results of operations for the balance of 2026, or for any other period. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause results to differ materially from management’s expectations.
Previous wording
The following factors, among others, could cause the financial performance of the Company to differ materially from that expressed in such forward-looking statements:
Current wording
The following factors, among others, could cause our financial performance to differ materially from that expressed in such forward-looking statements:
Previous wording
•general business and economic conditions, including higher inflation and its impacts, nationally or in the markets that the Company serves could adversely affect, among other things, real estate valuations, unemployment levels, the ability of businesses to remain viable, consumer and business confidence, and consumer or business spending, which could lead to decreases in demand for loans, deposits, and other financial services that the Company provides and increases in loan delinquencies and defaults;
Current wording
•general business and economic conditions, including higher inflation and its impacts, nationally or in the markets that we serve could adversely affect, among other things, real estate valuations, unemployment levels, the ability of businesses to remain viable, consumer and business confidence, and consumer or business spending, which could lead to decreases in demand for loans, deposits, and other financial services that we provide and increases in loan delinquencies and defaults;
Previous wording
•the concentration of the Company's business in and around the Washington, D.C. metropolitan area and the effects of changes in the economic, political, and environmental conditions on this market, including shutdowns of the U.S. governmentand potential reductions in spending by the U.S. government and related reductions in the federal workforce;
Current wording
•the concentration of our business in and around the Washington, D.C. metropolitan area and the effects of changes in the economic, political, and environmental conditions on this market, including shutdowns of the U.S. governmentand potential reductions in spending by the U.S. government and related reductions in the federal workforce;
Previous wording
•the impact of the interest rate environment on the Company's business, financial condition and results of operation, and its impact on the composition and costs of deposits, loan demand, and the values and liquidity of loan collateral, securities, and interest sensitive assets and liabilities;
Current wording
•the impact of the interest rate environment on our business, financial condition and results of operations, and its impact on the composition and costs of deposits, loan demand, and the values and liquidity of loan collateral, securities, and interest sensitive assets and liabilities;
Previous wording
•changes in the Company's liquidity requirements could be adversely affected by changes in its assets and liabilities;
Current wording
•changes in our liquidity requirements could be adversely affected by changes in our assets and liabilities;
Previous wording
•the management of risks inherent in the Company's real estate loan portfolio, and the risk of a prolonged downturn in the real estate market, which could impair the value of loan collateral and the ability to sell collateral upon any foreclosure;
Current wording
•the management of risks inherent in our real estate loan portfolio, and the risk of a prolonged downturn in the real estate market, which could impair the value of loan collateral and the ability to sell collateral upon any foreclosure;
Previous wording
•changes in market conditions, specifically declines in the commercial and residential real estate market, volatility and disruption of the capital and credit markets, and soundness of other financial institutions that the Company does business with;
Current wording
•changes in market conditions, specifically declines in the commercial and residential real estate market, volatility and disruption of the capital and credit markets, and soundness of other financial institutions that we do business with;
Previous wording
•the Company's investment securities portfolio is subject to credit risk, market risk, and liquidity risk as well as changes in the estimates used to value the securities in the portfolio;
Current wording
•our investment securities portfolio is subject to credit risk, market risk, and liquidity risk as well as changes in the estimates used to value the securities in the portfolio;
Previous wording
•declines in the Company's common stock price or the occurrence of what management would deem to be a triggering event that could, under certain circumstances, cause us to record a noncash impairment charge to earnings in future periods;
Current wording
•declines in our common stock price or the occurrence of what management would deem to be a triggering event that could, under certain circumstances, cause us to record a noncash impairment charge to earnings in future periods;
Previous wording
•potential exposure to fraud, negligence, computer theft and cyber-crime, and the Company's ability to maintain the security of its data processing and information technology systems;
Current wording
•potential exposure to fraud, negligence, computer theft and cyber-crime, and our ability to maintain the security of our data processing and information technology systems;
Previous wording
•the effect of acquisitions and partnerships the Company may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions;
Current wording
•the effect of acquisitions and partnerships we may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions;
Previous wording
•the Company's involvement, from time to time, in legal proceedings and examination and remedial actions by regulators;
Current wording
•our involvement, from time to time, in legal proceedings and examination and remedial actions by regulators;
Previous wording
Net interest income is our primary source of revenue. We define revenue as net interest income plus noninterest income. We manage our balance sheet and interest rate risk exposure to maximize, and concurrently stabilize, net interest income. We do this by monitoring our liquidity position and the spread between the interest rates earned on interest-earning assets and the interest rates paid on interest-bearing liabilities. We attempt to minimize our exposure to interest rate risk, but are unable to eliminate it entirely. In addition to managing interest rate risk, we also analyze our loan portfolio for exposure to credit risk. Loan defaults and foreclosures are inherent risks in the banking industry, and we attempt to limit our exposure to these risks by carefully underwriting and then monitoring our extensions of credit. In addition to net interest income, noninterest income is a complementary source of revenue for us and includes, among other things, service charges on deposits and loans, income from our minority membership interest in Atlantic Coast Mortgage, LLC ("ACM"), merchant services fee income, insurance commission income, income from bank-owned life insurance ("BOLI"), and gains and losses on sales of investment securities available-for-sale.
Current wording
Net interest income is our primary source of revenue. We define revenue as net interest income plus noninterest income. We manage our balance sheet and interest rate risk exposure to maximize, and concurrently stabilize, net interest income. We do this by monitoring our liquidity position and the spread between the interest rates earned on interest-earning assets and the interest rates paid on interest-bearing liabilities. We attempt to minimize our exposure to interest rate risk, but are unable to eliminate it entirely. In addition to managing interest rate risk, we also analyze our loan portfolio for exposure to credit risk. Loan defaults and foreclosures are inherent risks in the banking industry, and we attempt to limit our exposure to these risks by carefully underwriting and then monitoring our extensions of credit. In addition to net interest income, noninterest income is a complementary source of revenue for us and includes, among other things, service charges on deposits and loans, income from our minority membership interest in Atlantic Coast Mortgage, LLC ("ACM"), merchant services fee income, income from bank-owned life insurance ("BOLI"), and gains and losses on sales of investment securities available-for-sale.
Previous wording
Results of Operations— Three and Six Months Ended June 30, 2026 and 2025
Current wording
Results of Operations— Three and Nine Months Ended September 30, 2026 and 2025
Previous wording
We recorded net income of $8.2 million, or $0.45 diluted earnings per share, for the three months ended June 30, 2026, compared to net income of $5.7 million, or $0.31 diluted earnings per share, for the three months ended June 30, 2025, an increase of $2.6 million, or 45%.
Current wording
We recorded net income of $6.6 million, or $0.37 diluted earnings per share, for the three months ended September 30, 2026, compared to net income of $5.6 million, or $0.31 diluted earnings per share, for the three months ended September 30, 2025, an increase of $1.1 million, or 19%.
Previous wording
Net interest income increased $3.4 million, or 22%, to $19.1 million for the three months ended June 30, 2026, compared to $15.8 million for the same period of 2025. Provision for credit losses totaled $241 thousand for the three months ended June 30, 2026 compared to $105 thousand for the three months ended June 30, 2025.
Current wording
Net interest income increased $2.4 million, or 15%, to $18.4 million for the three months ended September 30, 2026, compared to $16.0 million for the same period of 2025. Provision for credit losses totaled $186 thousand for the three months ended September 30, 2026 compared to $375 thousand for the three months ended September 30, 2025.
Previous wording
The annualized return on average assets for the three months ended June 30, 2026 and 2025 was 1.48% and 1.02%, respectively. The annualized return on average equity for the three months ended June 30, 2026 and 2025 was 12.50% and 9.39%, respectively.
Current wording
The annualized return on average assets for the three months ended September 30, 2026 and 2025 was 1.17% and 1.00%, respectively. The annualized return on average equity for the three months ended September 30, 2026 and 2025 was 9.77% and 9.05%, respectively.
Previous wording
For the six months ended June 30, 2026, we recorded net income of $14.6 million, or $0.81 diluted earnings per share, compared to net income of $10.8 million, or $0.59 diluted earnings per share for the six months ended June 30, 2025. Net interest income for the six months ended June 30, 2026 was $36.6 million, compared to $30.8 million for the same period of 2025, an increase of $5.7 million, or 19%.
Current wording
For the nine months ended September 30, 2026, we recorded net income of $21.2 million, or $1.17 diluted earnings per share, compared to net income of $16.4 million, or $0.90 diluted earnings per share for the nine months ended September 30, 2025. Net interest income for the nine months ended September 30, 2026 was $55.0 million, compared to $46.8 million for the same period of 2025, an increase of $8.1 million, or 17%.
Previous wording
Core operating earnings (non-GAAP) for the three months ended June 30, 2026 and 2025 were $7.6 million and $5.5 million, respectively, an increase of $2.0 million, or 36%. For the six months ended June 30, 2026 and 2025, core operating earnings were $14.1 million and $10.7 million, respectively, an increase of $3.4 million, or 32%. See table below for additional information on core operating earnings.
Current wording
Core operating earnings (non-GAAP) for the three months ended September 30, 2026 and 2025 were $6.6 million and $5.6 million, respectively, an increase of $1.1 million, or 19%. For the nine months ended September 30, 2026 and 2025, core operating earnings were $20.8 million and $16.3 million, respectively, an increase of $4.5 million, or 28%. See table below for additional information on core operating earnings.
Previous wording
Diluted core operating earnings per share (non-GAAP) for the three months ended June 30, 2026 and 2025 were $0.42 and $0.30, respectively. For the six months ended June 30, 2026 and 2025, diluted core operating earnings per share were $0.78 and $0.58, respectively.
Current wording
Diluted core operating earnings per share (non-GAAP) for the three months ended September 30, 2026 and 2025 were $0.37 and $0.31, respectively. For the nine months ended September 30, 2026 and 2025, diluted core operating earnings per share were $1.15 and $0.89, respectively.
Previous wording
The following table presents average balance information, interest income, interest expense and the corresponding average yields earned and rates paid for the six months ended June 30, 2026 and 2025. Average balance presented are based on daily average for each of the periods presented.
Current wording
The following table presents average balance information, interest income, interest expense and the corresponding average yields earned and rates paid for the three months ended September 30, 2026 and 2025. Average balances presented are based on daily averages for each of the periods presented.
Previous wording
(1)Nonaccrual loans are included in average balances and do not have a material effect on the average yield. Interest income on non-accruing loans was not material for the quarters presented. Net loan fees and late charges included in interest income on loans totaled $1.6 million and $501 thousandfor the quarters ended June 30, 2026 and 2025, respectively.
Current wording
(1)Nonaccrual loans are included in average balances and do not have a material effect on the average yield. Interest income on non-accruing loans was not material for the quarters presented. Net loan fees and late charges included in interest income on loans totaled $420 thousand and$478 thousand for the quarters ended September 30, 2026 and 2025, respectively.
Previous wording
Net interest income totaled $19.1 million for the three months ended June 30, 2026 compared to $15.8 million for the three months ended June 30, 2025, an increase of $3.4 million, or 22%. The increase in net interest income for the second quarter of 2026 compared to the year ago quarter was primarily due to an increase in interest income from both increased yields on and level of average loans receivable. Additionally, we recorded $1.0 million in loan fees related to the prepayment of a commercial real estate loan during the second quarter of 2026. Interest expense decreased compared to the year ago quarter as deposits continue to reprice to lower interest rates.
Current wording
Net interest income totaled $18.4 million for the three months ended September 30, 2026 compared to $16.0 million for the three months ended September 30, 2025, an increase of $2.4 million, or 15%. The increase in net interest income for the third quarter of 2026 compared to the year ago quarter was primarily due to an increase in interest income from both increased yields and average loans receivable combined with a decrease in interest expense on deposits.
Previous wording
Our net interest margin for the three months ended June 30, 2026 and 2025 was 3.53% and 2.90%, respectively, an increase of 63 basis points, or 22%. The increase in net interest margin is a result of continued repricing of our loans receivable portfolio along with improvement in the cost of funding sources. In addition, net interest income for the second quarter of 2026 included $1.0 million in loan fees related to the prepayment of a commercial real estate loan at the end of the quarter. When excluding these loan fees, net interest margin was 3.35% for the second quarter of 2026, an increase of 45 basis points from the quarter ended June 30, 2025.
Current wording
Our net interest margin for the three months ended September 30, 2026 and 2025 was 3.32% and 2.91%, respectively, an increase of 41 basis points, or 14%. The increase in net interest margin is a result of continued repricing of our loans receivable portfolio along with improvement in the cost of funding sources.
Previous wording
Average interest-earning assets for each of the three month periods ended June 30, 2026 and June 30, 2025 was $2.18 billion. The yield on interest-earning assets increased 33 basis points to 5.72% for the three months ended June 30, 2026, compared to 5.39% for the same period of 2025. Total interest income increased $1.7 million, or 6%, to $31.1 million for the three months ended June 30, 2026 compared to $29.4 million for the three months ended June 30, 2025.
Current wording
Average interest-earning assets for the three month periods ended September 30, 2026 and September 30, 2025 was $2.20 billion and $2.19 billion, respectively. The yield on interest-earning assets increased 6 basis points to 5.52% for the three months ended September 30, 2026, compared to 5.46% for the same period of 2025. Total interest income increased $583 thousand, or 2%, to $30.4 million for the three months ended September 30, 2026 compared to $29.8 million for the three months ended September 30, 2025.
Previous wording
Average interest-bearing deposits at other financial institutions, consisting primarily of excess cash reserves, decreased $50.3 million to $72.7 million for the quarter ended June 30, 2026, compared to $123.0 million for the quarter ended June 30, 2025. The decrease in our excess cash reserves is primarily due to an increase in loan originations, as average loans receivable increased $59.5 million year-over-year. The yield on average interest-bearing deposits at other financial institutions decreased 78 basis points to 3.67% for the quarter ended June 30, 2026 compared to 4.45% for the same period of 2025, primarily as a result of the Federal Open Market Committee's decision to decrease its targeted federal funds rate 75 basis points during the course of 2025.
Current wording
Average interest-bearing deposits at other financial institutions, consisting primarily of excess cash reserves, decreased $7.7 million to $156.2 million for the quarter ended September 30, 2026, compared to $163.9 million for the quarter ended September 30, 2025. The decrease in our excess cash reserves is primarily due to an increase in loan originations, as average loans receivable increased $41.7 million year-over-year. The yield on average interest-bearing deposits at other financial institutions decreased 63 basis points to 3.77% for the quarter ended September 30, 2026 compared to 4.40% for the same period of 2025, primarily as a result of the Federal Open Market Committee's decision to decrease its targeted federal funds rate 75 basis points during the course of 2025.
Previous wording
Total average interest-bearing liabilities was $1.56 billion and $1.60 billion for the three months ended June 30, 2026 and 2025, respectively. Our cost of interest-bearing liabilities decreased 35 basis points to 3.07% for the three months ended June 30, 2026, compared to 3.42% for the same period of 2025. Interest expense decreased $1.7 million to $11.9 million for the three months ended June 30, 2026, compared to $13.7 million for the three months ended June 30, 2025. The decrease in the average rate was the primary driver of the decrease in interest expense for the second quarter of 2026 compared to the same period of 2025, a result of the aforementioned decrease in the targeted federal funds rate during 2025.
Current wording
Total average interest-bearing liabilities was $1.56 billion and $1.60 billion for the three months ended September 30, 2026 and 2025, respectively, a decrease of $40.0 million. Our cost of interest-bearing liabilities decreased 37 basis points to 3.04% for the three months ended September 30, 2026, compared to 3.41% for the same period of 2025. Interest expense decreased $1.8 million to $12.0 million for the three months ended September 30, 2026, compared to $13.8 million for the three months ended September 30, 2025. The decrease in the average rate was the primary driver of the decrease in interest expense for the third quarter of 2026 compared to the same period of 2025, a result of the aforementioned decrease in the targeted federal funds rate during 2025.
Previous wording
Total average interest-bearing deposits decreased $12.3 million to $1.52 billion for the three months ended June 30, 2026 compared to $1.53 billion for the three months ended June 30, 2025. Interest expense on deposits decreased $1.6 million to $11.4 million for the three months ended June 30, 2026 compared to $13.0 million for the three months ended June 30, 2025, primarily as a result of the decrease in interest rates on interest-bearing deposits. The cost of interest-bearing deposits decreased 40 basis points to 2.99% for the three months ended June 30, 2026 compared to 3.39% for the same period of 2025. Average noninterest-bearing deposits increased $17.7 million to $379.3 million for the three months ended June 30, 2026, compared to $361.6 million for the three months ended June 30, 2025. Average wholesale deposits decreased $48.3 million to $199.3 million for the three months ended June 30, 2026 compared to $247.6 million for the three months ended June 30, 2025. Cost of deposits (which includes noninterest-bearing deposits) was 2.40% for the three months ended June 30, 2026 compared to 2.74% for the same three month period of 2025, a decrease of 34 basis points, or 12%.
Current wording
Total average interest-bearing deposits increased $3.9 million to $1.54 billion for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Interest expense on deposits decreased $1.6 million to $11.5 million for the three months ended September 30, 2026 compared to $13.1 million for the three months ended September 30, 2025, primarily as a result of the decrease in interest rates on interest-bearing deposits. The cost of interest-bearing deposits decreased 42 basis points to 2.96% for the three months ended September 30, 2026 compared to 3.38% for the same period of 2025. Average noninterest-bearing deposits increased $30.0 million to $394.6 million for the three months ended September 30, 2026, compared to $364.6 million for the three months ended September 30, 2025. Average wholesale deposits decreased $39.8 million to $195.1 million for the three months ended September 30, 2026 compared to $234.9 million for the three months ended September 30, 2025. Cost of deposits (which includes noninterest-bearing deposits) was 2.36% for the three months ended September 30, 2026 compared to 2.73% for the same three month period of 2025, a decrease of 37 basis points, or 14%.
Previous wording
Average other borrowed funds decreased $40.3 million to $9.7 million for the quarter ended June 30, 2026, compared to $50.0 million for the quarter ended June 30, 2025. Interest expense on other borrowed funds decreased $372 thousand, or 79%, to $96 thousand for the quarter ended June 30, 2026, compared to $468 thousand for the same period of 2025. The cost of other borrowed funds increased 21 basis points to 3.96% for the three months ended June 30, 2026 compared to 3.75% for the three months ended June 30, 2025.
Current wording
Average other borrowed funds decreased $49.6 million to $369 thousand for the quarter ended September 30, 2026, compared to $50.0 million for the quarter ended September 30, 2025. Interest expense on other borrowed funds decreased $475 thousand to $3 thousand for the quarter ended September 30, 2026, compared to $478 thousand for the same period of 2025. The cost of other borrowed funds decreased 55 basis points to 3.23% for the three months ended September 30, 2026 compared to 3.78% for the three months ended September 30, 2025.
Previous wording
Average long-term debt, net of issuance costs, includes our unsecured senior notes since their issuance on February 11, 2026 and our subordinated debt issued in October 2020 until it was redeemed on January 15, 2026. For the second quarter of 2025, our subordinated debt paid a fixed rate of 4.77%. The unsecured senior notes pay a fixed rate of 6.75%, an increase of 198 basis points when compared to the rate on the subordinated debt from the year ago quarter. The change in both our average volume, which increased $5.7 million for the quarter ended June 30, 2026 compared to the same period of 2025, and the 255 basis point increase in average rate for our long-term debt during that same period, is primarily a result of the abovementioned change in debt instruments during 2026. Interest expense on long-term debt, net of issuance costs, increased $231 thousand to $476 thousand for the quarter ended June 30, 2026 compared to $245 thousand for the quarter ended June 30, 2025.
Current wording
Average long-term debt, net of issuance costs, includes our unsecured senior notes since their issuance on February 11, 2026 and our subordinated debt issued in October 2020 until it was redeemed on January 15, 2026. For the third quarter of 2025, our subordinated debt paid a fixed rate of 4.77%. The unsecured senior notes pay a fixed rate of 6.75%, an increase of 198 basis points when compared to the rate on the subordinated debt from the year ago quarter. The change in both our average volume, which increased $5.8 million for the quarter ended September 30, 2026 compared to the same period of 2025, and the 260 basis point increase in average rate for our long-term debt during that same period, is primarily a result of the abovementioned change in debt instruments during 2026. Interest expense on long-term debt, net of issuance costs, increased $237 thousand to $482 thousand for the quarter ended September 30, 2026 compared to $245 thousand for the quarter ended September 30, 2025.
Previous wording
The following table presents average balance information, interest income, interest expense and the corresponding average yields earned and rates paid for the three months ended June 30, 2026 and 2025. Average balance presented are based on daily average for each of the periods presented.
Current wording
The following table presents average balance information, interest income, interest expense and the corresponding average yields earned and rates paid for the nine months ended September 30, 2026 and 2025. Average balance presented are based on daily average for each of the periods presented.
Previous wording
(1)Nonaccrual loans are included in average balances and do not have a material effect on the average yield. Interest income on non-accruing loans was not material for the periods presented. Net loan fees and late charges included in interest income on loans totaled $2.2 million and $1.0 million for the six months ended June 30, 2026 and 2025, respectively.
Current wording
(1)Nonaccrual loans are included in average balances and do not have a material effect on the average yield. Interest income on non-accruing loans was not material for the periods presented. Net loan fees and late charges included in interest income on loans totaled $2.6 million and $1.5 million for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
The following table shows the effect of variations in the volume and mix of our assets and liabilities, as well as the changes in interest rates, had on the interest earned from our interest-earning assets and interest incurred on our interest-bearing liabilities for the six months ended June 30, 2026 as compared to the same period of 2025.
Current wording
The following table shows the effect of variations in the volume and mix of our assets and liabilities, as well as the changes in interest rates, had on the interest earned from our interest-earning assets and interest incurred on our interest-bearing liabilities for the nine months ended September 30, 2026 as compared to the same period of 2025.
Previous wording
Net interest income for the six months ended June 30, 2026 and 2025, was $36.6 million and $30.8 million, respectively, an increase of $5.7 million, or 19%. The increase in net interest income was primarily due to an increase in interest income of $2.9 million and a decrease in interest expense of $2.8 million for the six months ended June 30, 2026 compared to the same period of 2025. Additionally, as previously mentioned, we recorded $1.0 million in loan fees related to the prepayment of a commercial real estate loan during the second quarter of 2026.
Current wording
Net interest income for the nine months ended September 30, 2026 and 2025, was $55.0 million and $46.8 million, respectively, an increase of $8.1 million, or 17%. The increase in net interest income was primarily due to an increase in interest income of $3.5 million and a decrease in interest expense of $4.6 million for the nine months ended September 30, 2026 compared to the same period of 2025.
Previous wording
Our net interest margin for thesix months ended June 30, 2026 and 2025 was 3.40% and 2.87%, respectively, anincrease of 53 basis points, or 18%. The increase in our net interest margin was a result of continued repricing of our loan renewals and newly originated loans to current market interest rates over the past year along with the reduction in the cost of our funding sources. In addition, net interest income for the six months ended June 30, 2026 included $1.0 million in loan fees related to the prepayment of a commercial real estate loan. When excluding these loan fees, net interest margin was 3.30% for the six months ended June 30, 2026, an increase of 43 basis points from the six months ended June 30, 2025.
Current wording
Our net interest margin for the nine months ended September 30, 2026 and 2025 was 3.37% and 2.88%, respectively, an increase of 49 basis points, or 17%. The increase in our net interest margin was a result of continued repricing of our loan renewals and newly originated loans to current market interest rates over the past year along with the increase in loan fees, primarily related to the prepayment of a commercial real estate loan during the second quarter of 2026. When excluding these loan fees, net interest margin was 3.31% for the nine months ended September 30, 2026, an increase of 43 basis points from the nine months ended September 30, 2025.
Previous wording
Average interest-earning assets for each of the six month periods ended June 30, 2026 and 2025 was $2.17 billion. The yield on interest-earning assets increased 29 basis points to 5.61% for the six months ended June 30, 2026, compared to 5.32% for the same period of 2025. Total interest income increased $2.9 million, or 5%, to $60.9 million for the six months ended June 30, 2026 compared to $58.0 million for the six months ended June 30, 2025. The increase in average volume was the main driver of the increase to our interest income, contributing $2.8 million of the increase for the six months ended June 30, 2026, compared to the same six month period of 2025, along with an increase in the average rate which increased interest income by $1.5 million.
Current wording
Average interest-earning assets increased $7.9 million to $2.18 billion for the nine months ended September 30, 2026 as compared to $2.17 billion for the same period of 2025. The yield on interest-earning assets increased 19 basis points to 5.58% for the nine months ended September 30, 2026, compared to 5.39% for the same period of 2025. Total interest income increased $3.5 million, or 4%, to $91.3 million for the nine months ended September 30, 2026 compared to $87.8 million for the nine months ended September 30, 2025. The increase in average volume was the main driver of the increase to our interest income, contributing $2.6 million of the increase for the nine months ended September 30, 2026, compared to the same nine month period of 2025, along with an increase in the average rate which increased interest income by $887 thousand.
Previous wording
Average loans receivable increased $62.2 million to $1.93 billion for the six months ended June 30, 2026. Loan interest income for the six months ended June 30, 2026 increased $4.3 million compared to the same six month period of 2025, primarily as a result of the change in our loan mix towards commercial and industrial loans, which earn a higher yield than other portions of our loan portfolio. The yield on average loans increased 29 basis points to 6.01% for the six months ended June 30, 2026, compared to 5.72% for the six months ended June 30, 2025. For the six months ended June 30, 2026, net loan fees included in interest income increased $1.2 million to $2.2 million compared to $1.0 million for the six months ended June 30, 2025, primarily due to the aforementioned early prepayment of a commercial real estate loan during the second quarter of 2026. When excluding this early prepayment fee, the yield on loans for the six months ended June 30, 2026 was 5.90%, an increase of 18 basis points when compared to the six months ended June 30, 2025. Average balances of nonperforming loans, which consist of nonaccrual loans, are included in the net interest margin calculation and did not have a material impact on our net interest margin in 2026 and 2025.
Current wording
Average loans receivable increased $55.3 million to $1.91 billion for the nine months ended September 30, 2026 compared to $1.85 billion for the nine months ended September 30, 2025. Loan interest income for the nine months ended September 30, 2026 increased $5.3 million compared to the same nine month period of 2025, primarily as a result of the change in our loan mix towards commercial and industrial loans, which earn a higher yield than other portions of our loan portfolio. The yield on average loans increased 20 basis points to 6.00% for the nine months ended September 30, 2026, compared to 5.80% for the nine months ended September 30, 2025.
Previous wording
Average loans receivable increased $59.5 million to $1.92 billion for the three months ended June 30, 2026, compared to $1.86 billion for the three months ended June 30, 2025. The yield on average loans increased 33 basis points to 6.13% for the three months ended June 30, 2026, compared to 5.80% for the three months ended June 30, 2025. Included in loan interest income are net loan fees related to the net accretion of origination fees and collection of prepayment penalties. For the three months ended June 30, 2026, net loan fees included in interest income increased $1.1 million to $1.6 million compared to $501 thousand for the three months ended June 30, 2025, primarily due to the aforementioned early prepayment of a commercial real estate loan during the second quarter of 2026. When excluding this early prepayment fee, the yield on loans for the second quarter of 2026 was 5.93%, an increase of 13 basis points when compared to the year ago quarter ended June 30, 2025, as average loan yields continue to increase through new loan originations and loans repricing to current market interest rates. Average balances of nonperforming loans, which consist of nonaccrual loans, are included in the net interest margin calculation and did not have a material impact on our net interest margin in 2026 and 2025.
Current wording
For the nine months ended September 30, 2026, net loan fees included in interest income increased $1.1 million to $2.6 million compared to $1.5 million for the nine months ended September 30, 2025, primarily due to the aforementioned early prepayment of a commercial real estate loan during the second quarter of 2026. When excluding this early prepayment fee, the yield on loans for the nine months ended September 30, 2026 was 5.95%, an increase of 15 basis points when compared to the nine months ended September 30, 2025. Average balances of nonperforming loans, which consist of nonaccrual loans, are included in the net interest margin calculation and did not have a material impact on our net interest margin in 2026 and 2025.
Previous wording
Average interest-bearing deposits at other financial institutions, consisting primarily of excess cash reserves, decreased $43.0 million to $62.5 million for the six months ended June 30, 2026, compared to $105.5 million for the same six month period of 2025. The decrease in our cash reserves is primarily a result of the $62.2 million increase in average loans receivable year-over-year. The yield on average interest-bearing deposits at other financial institutions decreased 79 basis points to 3.66% for the six months ended June 30, 2026 compared to 4.45% for the same period of 2025, primarily as a result of the decrease in the targeted federal funds rate during 2025. Interest income earned on average deposits at other financial institutions decreased $1.2 million to $1.1 million for the six months ended June 30, 2026 compared to $2.3 million for the same period of 2025.
Current wording
Average interest-bearing deposits at other financial institutions, consisting primarily of excess cash reserves, decreased $31.1 million to $94.1 million for the nine months ended September 30, 2026, compared to $125.2 million for the same nine month period of 2025. The decrease in our cash reserves is primarily a result of the $55.3 million increase in average loans receivable year-over-year. The yield on average interest-bearing deposits at other financial institutions decreased 69 basis points to 3.74% for the nine months ended September 30, 2026 compared to 4.43% for the same period of 2025, primarily as a result of the decreases in the targeted federal funds rate during 2025. Interest income earned on average deposits at other financial institutions decreased $1.5 million to $2.6 million for the nine months ended September 30, 2026 compared to $4.1 million for the same period of 2025.
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Current report — wording carried from elsewhere
Average loans receivable increased $41.7 million to $1.87 billion for the three months ended September 30, 2026, compared to $1.83 billion for the three months ended September 30, 2025. The yield on average loans increased 9 basis points to 5.99% for the three months ended September 30, 2026, compared to 5.90% for the three months ended September 30, 2025. Included in loan interest income are net loan fees related to the net accretion of origination fees and collection of prepayment penalties. Average balances of nonperforming loans, which consist of nonaccrual loans, are included in the net interest margin calculation and did not have a material impact on our net interest margin in 2026 and 2025.