HomeTrust Bancshares, Inc. Announces Financial Results for the Third Quarter of the Year Ending December 31, 2026 and Declaration of a Quarterly Dividend
ASHEVILLE, N.C.--(BUSINESS WIRE)--HomeTrust Bancshares, Inc. (NYSE: HTB) ("Company"), the holding company of HomeTrust Bank ("Bank"), today announced preliminary net income for the third quarter of the year ending December 31, 2026 and approval of its quarterly cash dividend.
For the quarter ended September 30, 2026 compared to the quarter ended June 30, 2026:
- net income was $18.0 million compared to $15.6 million;
- diluted earnings per share ("EPS") were $1.11 compared to $0.94;
- annualized return on assets ("ROA") was 1.65% compared to 1.46%;
- annualized return on equity ("ROE") was 12.06% compared to 10.44%;
- net interest margin was 4.46% compared to 4.41%;
- provision for credit losses was $805,000 compared to $920,000;
- gain on the sale of fixed assets was $21,000 compared to $1.1 million;
- loss on the redemption of junior subordinated debt securities was $0 compared to $1.1 million;
- merger-related expense was $904,000 compared to $0;
- utilization of purchased renewable energy income tax credits resulted in a $1.9 million federal income tax benefit compared to $0;
- quarterly cash dividends continued at $0.15 per share totaling $2.4 million for each period; and
- 923,897 shares of Company common stock were repurchased during the current quarter at an average price of $48.03 compared to 153,606 shares repurchased at an average price of $46.31 in the prior quarter.
For the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025:
- net income was $50.4 million compared to $48.2 million;
- diluted EPS were $3.04 compared to $2.79;
- annualized ROA was 1.55% compared to 1.46%;
- annualized ROE was 11.28% compared to 11.20%;
- net interest margin was 4.39% compared to 4.27%;
- provision for credit losses was $2.1 million compared to $4.9 million;
- gain on the sale of our two Knoxville, Tennessee branches was $0 compared to $1.4 million;
- merger-related expense was $904,000 compared to $0;
- utilization of purchased renewable energy income tax credits resulted in a $1.9 million federal income tax benefit compared to $0;
- cash dividends were $0.43 per share totaling $7.1 million compared to $0.36 per share totaling $6.2 million; and
- 1,610,743 shares of Company common stock were repurchased at an average price of $46.15 compared to 93,212 shares of Company common stock repurchased at an average price of $35.41 in the same period last year.
The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.15 per common share payable on November 25, 2026 to shareholders of record as of the close of business on November 12, 2026.
“Our third-quarter financial results continued the momentum established in the first half of the year, as our top-quartile net interest margin expanded to 4.46%," said Hunter Westbrook, President and Chief Executive Officer. “We also accelerated the pace of share repurchases as part of our ongoing and prudent capital management strategy. Earlier this month, we announced the completion of the stock repurchase program initiated in August 2026 and authorized the repurchase of an additional 5% of our outstanding shares. These actions allow the Company to deploy excess capital and reflect our conviction that the Company’s shares are currently undervalued.
“In August, we were excited to announce the signing of a definitive merger agreement where HomeTrust will acquire Blue Ridge Bankshares, Inc., the holding company for Blue Ridge Bank, expanding HomeTrust’s footprint into desirable Virginia markets and creating a commercial bank with more than $7 billion in assets and over 60 locations across the Southeast. I’m enthusiastic about the proforma company and the opportunity to welcome our new Virginia teammates to the HTB team. Blue Ridge brings a strong deposit franchise, a growing commercial loan portfolio, and deep local relationships that complement our existing footprint and capabilities. This transaction represents a compelling opportunity to further strengthen our presence in the attractive Virginia market and accelerate our growth and profitability strategies.”
WEBSITE: WWW.HTB.COM
Proposed Merger with Blue Ridge Bankshares, Inc.
On August 16, 2026, the Company, Blue Ridge Bankshares, Inc., a Virginia corporation (“Blue Ridge”), and Kinloch Merger Sub, Inc., a Virginia corporation and wholly owned subsidiary of the Company (“Merger Sub”), entered into an Agreement and Plan of Merger (the “merger agreement”). Pursuant to the terms and conditions set forth in the merger agreement, Merger Sub will merge with and into Blue Ridge (the “merger”), with Blue Ridge continuing as the surviving corporation, and immediately following the merger, Blue Ridge will merge with and into the Company (the “second step merger”), with the Company continuing as the surviving corporation.
Immediately following the second step merger, Blue Ridge Bank, National Association, the wholly owned bank subsidiary of Blue Ridge, will merge with and into HomeTrust Bank, the wholly owned bank subsidiary of the Company, with HomeTrust Bank as the surviving bank.
Subject to the terms and conditions of the merger agreement, at the effective time of the merger (“effective time”), each share of Blue Ridge common stock issued and outstanding immediately prior to the effective time, subject to limited exceptions, will be converted into the right to receive 0.086 of a share of Company common stock, plus cash in lieu of any fractional shares.
The transaction has been approved by the boards of directors of both companies, and all required regulatory applications have been filed. The transaction is expected to close early in the first quarter of 2027, subject to all regulatory and shareholder approvals and the satisfaction of customary closing conditions.
The total value of the transaction will fluctuate based on the Company's stock price prior to closing. Upon completion of the transaction, Blue Ridge shareholders are expected to own approximately 35% of the Company. The combined company will continue to trade on the NYSE under the ticker symbol "HTB."
Comparison of Results of Operations for the Three Months Ended September 30, 2026 and June 30, 2026
Net Income. Net income totaled $18.0 million, or $1.11 per diluted share, for the three months ended September 30, 2026 compared to $15.6 million, or $0.94 per diluted share, for the three months ended June 30, 2026, an increase of $2.4 million, or 14.9%. The results for the three months ended September 30, 2026 compared to the three months ended June 30, 2026 were positively impacted by a $1.2 million increase in net interest income and a $1.4 million decrease in income tax expense as a result of the Company's utilization of purchased renewable energy income tax credits. Details of the changes in the various components of net income are further discussed below.
Net Interest Income. The following table presents the distribution of average assets, liabilities and equity, as well as interest income earned on average interest-earning assets and interest expense paid on average interest-bearing liabilities. All average balances are daily average balances. Nonaccruing loans have been included in the table as loans carrying a zero yield.
| Three Months Ended | ||||||||||||||||||
| September 30, 2026 |
| June 30, 2026 | ||||||||||||||||
(Dollars in thousands) |
Average
|
|
Interest
|
|
Yield /
|
|
Average
|
|
Interest
|
|
Yield /
| ||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Loans receivable(1) | $ | 3,804,490 |
|
| $ | 59,330 |
| 6.19 | % |
| $ | 3,770,898 |
|
| $ | 57,507 |
| 6.12 | % |
Debt securities available for sale |
| 144,381 |
|
|
| 1,701 |
| 4.67 |
|
|
| 152,647 |
|
|
| 1,667 |
| 4.38 |
|
Other interest-earning assets(2) |
| 187,346 |
|
|
| 1,858 |
| 3.93 |
|
|
| 199,135 |
|
|
| 1,999 |
| 4.03 |
|
Total interest-earning assets |
| 4,136,217 |
|
|
| 62,889 |
| 6.03 |
|
|
| 4,122,680 |
|
|
| 61,173 |
| 5.95 |
|
Other assets |
| 177,503 |
|
|
|
|
|
|
| 175,077 |
|
|
|
|
| ||||
Total assets | $ | 4,313,720 |
|
|
|
|
|
| $ | 4,297,757 |
|
|
|
|
| ||||
Liabilities and equity |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest-bearing checking accounts | $ | 545,273 |
|
| $ | 1,109 |
| 0.81 | % |
| $ | 556,610 |
|
| $ | 1,128 |
| 0.81 | % |
Money market accounts |
| 1,407,617 |
|
|
| 9,160 |
| 2.58 |
|
|
| 1,376,199 |
|
|
| 8,678 |
| 2.53 |
|
Savings accounts |
| 164,285 |
|
|
| 28 |
| 0.07 |
|
|
| 170,067 |
|
|
| 28 |
| 0.07 |
|
Certificate accounts |
| 727,258 |
|
|
| 6,010 |
| 3.28 |
|
|
| 712,224 |
|
|
| 5,744 |
| 3.23 |
|
Total interest-bearing deposits |
| 2,844,433 |
|
|
| 16,307 |
| 2.27 |
|
|
| 2,815,100 |
|
|
| 15,578 |
| 2.22 |
|
Junior subordinated debt |
| — |
|
|
| — |
| — |
|
|
| 8,449 |
|
|
| 151 |
| 7.17 |
|
Borrowings |
| 12,346 |
|
|
| 119 |
| 3.82 |
|
|
| 15,978 |
|
|
| 150 |
| 3.77 |
|
Total interest-bearing liabilities |
| 2,856,779 |
|
|
| 16,426 |
| 2.28 |
|
|
| 2,839,527 |
|
|
| 15,879 |
| 2.24 |
|
Noninterest-bearing deposits |
| 812,327 |
|
|
|
|
|
|
| 806,566 |
|
|
|
|
| ||||
Other liabilities |
| 53,623 |
|
|
|
|
|
|
| 50,949 |
|
|
|
|
| ||||
Total liabilities |
| 3,722,729 |
|
|
|
|
|
|
| 3,697,042 |
|
|
|
|
| ||||
Stockholders' equity |
| 590,991 |
|
|
|
|
|
|
| 600,715 |
|
|
|
|
| ||||
Total liabilities and stockholders' equity | $ | 4,313,720 |
|
|
|
|
|
| $ | 4,297,757 |
|
|
|
|
| ||||
Net earning assets | $ | 1,279,438 |
|
|
|
|
|
| $ | 1,283,153 |
|
|
|
|
| ||||
Average interest-earning assets to average interest-bearing liabilities |
| 144.79 | % |
|
|
|
|
|
| 145.19 | % |
|
|
|
| ||||
Non-tax-equivalent |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Net interest income |
|
| $ | 46,463 |
|
|
|
|
| $ | 45,294 |
|
| ||||||
Interest rate spread |
|
|
|
| 3.75 | % |
|
|
|
|
| 3.71 | % | ||||||
Net interest margin(3) |
|
|
|
| 4.46 | % |
|
|
|
|
| 4.41 | % | ||||||
Tax-equivalent(4) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Net interest income |
|
| $ | 46,902 |
|
|
|
|
| $ | 45,752 |
|
| ||||||
Interest rate spread |
|
|
|
| 3.79 | % |
|
|
|
|
| 3.76 | % | ||||||
Net interest margin(3) |
|
|
|
| 4.50 | % |
|
|
|
|
| 4.45 | % | ||||||
(1) | Average loans receivable balances include loans held for sale and nonaccruing loans. |
(2) | Average other interest-earning assets consist of FRB stock, FHLB stock, SBIC investments and deposits in other banks. |
(3) | Net interest income divided by average interest-earning assets. |
(4) | Tax-equivalent results include adjustments to interest income of $439 and $458 for the three months ended September 30, 2026 and June 30, 2026, respectively, calculated based on a combined federal and state tax rate of 23%. |
Total interest and dividend income for the three months ended September 30, 2026 increased $1.7 million, or 2.8%, when compared to the three months ended June 30, 2026. An increase of $1.0 million in accretion income was the primary driver of this change, in addition to the impact of an additional day in the current quarter.
Total interest expense for the three months ended September 30, 2026 increased $547,000, or 3.4%, when compared to the three months ended June 30, 2026. An increase of $729,000, or 4.7%, in deposit interest expense drove this change, the result of increases in both the average balances of and rates paid on money market and certificate accounts, partially offset by a decrease in interest expense associated with the redemption of junior subordinated debt securities during the prior quarter.
The following table shows the effects that changes in average balances (volume), including differences in the number of days in the periods compared, and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities:
|
Increase / (Decrease)
|
| Total
Increase/
| ||||||||
(Dollars in thousands) | Volume |
| Rate |
| |||||||
Interest-earning assets |
|
|
|
|
| ||||||
Loans receivable | $ | 1,157 |
|
| $ | 666 |
|
| $ | 1,823 |
|
Debt securities available for sale |
| (72 | ) |
|
| 106 |
|
|
| 34 |
|
Other interest-earning assets |
| (98 | ) |
|
| (43 | ) |
|
| (141 | ) |
Total interest-earning assets |
| 987 |
|
|
| 729 |
|
|
| 1,716 |
|
Interest-bearing liabilities |
|
|
|
|
| ||||||
Interest-bearing checking accounts |
| (11 | ) |
|
| (8 | ) |
|
| (19 | ) |
Money market accounts |
| 298 |
|
|
| 184 |
|
|
| 482 |
|
Savings accounts |
| (1 | ) |
|
| 1 |
|
|
| — |
|
Certificate accounts |
| 187 |
|
|
| 79 |
|
|
| 266 |
|
Junior subordinated debt |
| (151 | ) |
|
| — |
|
|
| (151 | ) |
Borrowings |
| (33 | ) |
|
| 2 |
|
|
| (31 | ) |
Total interest-bearing liabilities |
| 289 |
|
|
| 258 |
|
|
| 547 |
|
Increase in net interest income |
|
|
|
| $ | 1,169 |
| ||||
Provision for Credit Losses. The provision for credit losses is the amount of expense that, based on our judgment, is required to maintain the allowance for credit losses ("ACL") at an appropriate level under the current expected credit losses model.
The following table presents a breakdown of the components of the provision for credit losses:
| Three Months Ended |
|
|
|
| ||||||||
(Dollars in thousands) | September 30, 2026 |
| June 30, 2026 |
| $ Change |
| % Change | ||||||
Provision for credit losses |
|
|
|
|
|
|
| ||||||
Loans | $ | 790 |
| $ | 1,020 |
|
| $ | (230 | ) |
| (23 | )% |
Off-balance sheet credit exposure |
| 15 |
|
| (100 | ) |
|
| 115 |
|
| 115 |
|
Total provision for credit losses | $ | 805 |
| $ | 920 |
|
| $ | (115 | ) |
| (13 | )% |
For the quarter ended September 30, 2026, the "loans" portion of the provision for credit losses was primarily the result of the following, offset by net charge-offs of $1.1 million during the quarter:
- $0.5 million benefit driven by changes in the loan mix.
- $0.2 million provision due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments.
For the quarter ended June 30, 2026, the "loans" portion of the provision for credit losses was primarily the result of the following, offset by net charge-offs of $1.8 million during the quarter:
- $0.2 million provision driven by changes in the loan mix.
- $0.4 million benefit due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments.
- $0.6 million decrease in specific reserves on individually evaluated loans.
For the quarters ended September 30, 2026 and June 30, 2026, the amounts recorded for off-balance sheet credit exposure were the result of changes in the balance of loan commitments, loan mix, projected economic forecast and qualitative allocations as outlined above.
Noninterest Income. Noninterest income for the three months ended September 30, 2026 decreased $178,000, or 1.9%, when compared to the quarter ended June 30, 2026. Changes in the components of noninterest income are discussed below:
| Three Months Ended |
|
| |||||||||
(Dollars in thousands) | September 30, 2026 |
| June 30, 2026 |
| $ Change |
| % Change | |||||
Noninterest income |
|
|
|
|
|
|
| |||||
Service charges and fees on deposit accounts | $ | 2,586 |
| $ | 2,627 |
| $ | (41 | ) |
| (2 | )% |
Loan income and fees |
| 1,178 |
|
| 501 |
|
| 677 |
|
| 135 |
|
Gain on sale of loans held for sale |
| 1,592 |
|
| 1,874 |
|
| (282 | ) |
| (15 | ) |
Bank owned life insurance ("BOLI") income |
| 925 |
|
| 893 |
|
| 32 |
|
| 4 |
|
Operating lease income |
| 1,731 |
|
| 1,407 |
|
| 324 |
|
| 23 |
|
Gain on sale of premises and equipment |
| 21 |
|
| 1,101 |
|
| (1,080 | ) |
| (98 | ) |
Other |
| 1,036 |
|
| 844 |
|
| 192 |
|
| 23 |
|
Total noninterest income | $ | 9,069 |
| $ | 9,247 |
| $ | (178 | ) |
| (2 | )% |
- Loan income and fees: The increase was primarily the result of an increase of $771,000 in prepayment penalty fees, partially offset by a $61,000 decrease in other loan servicing fees.
- Gain on sale of loans held for sale: The decrease was primarily driven by a drop in the sales volume of the guaranteed portion of SBA commercial loans and residential mortgage loans originated for sale, partially offset by an increase in the sales volume of HELOC loans. There were $60.9 million of HELOCs originated for sale which were sold during the current quarter with gains of $329,000 compared to $17.2 million sold with gains of $93,000 in the prior quarter. There were $12.9 million in sales of the guaranteed portion of SBA commercial loans with gains of $925,000 during the current quarter compared to $15.3 million sold and gains of $1.3 million for the prior quarter. There were $26.5 million of residential mortgage loans sold for gains of $399,000 during the current quarter compared to $39.9 million sold with gains of $481,000 in the prior quarter. Lastly, our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a net loss of $61,000 for the current quarter compared to a net gain of $4,000 for the prior quarter.
- Operating lease income: The increase was the result of net gains of $274,000 upon contract termination versus net losses of $387,000 in the prior quarter, partially offset by a $337,000 decrease in contract earnings.
- Gain on sale of premises and equipment: In both periods presented, gains were recognized on the sale of excess real estate and other equipment.
Noninterest Expense. Noninterest expense for the three months ended September 30, 2026 increased $158,000, or 0.5%, when compared to the three months ended June 30, 2026. Changes in the components of noninterest expense are discussed below:
| Three Months Ended |
|
| |||||||||
(Dollars in thousands) | September 30, 2026 |
| June 30, 2026 |
| $ Change |
| % Change | |||||
Noninterest expense |
|
|
|
|
|
|
| |||||
Salaries and employee benefits | $ | 20,128 |
| $ | 20,169 |
| $ | (41 | ) |
| — | % |
Occupancy expense, net |
| 2,551 |
|
| 2,417 |
|
| 134 |
|
| 6 |
|
Computer services |
| 2,934 |
|
| 3,027 |
|
| (93 | ) |
| (3 | ) |
Operating lease depreciation expense |
| 1,127 |
|
| 1,378 |
|
| (251 | ) |
| (18 | ) |
Telecom, postage and supplies |
| 558 |
|
| 509 |
|
| 49 |
|
| 10 |
|
Marketing and advertising |
| 837 |
|
| 584 |
|
| 253 |
|
| 43 |
|
Deposit insurance premiums |
| 468 |
|
| 481 |
|
| (13 | ) |
| (3 | ) |
Core deposit intangible amortization |
| 303 |
|
| 302 |
|
| 1 |
|
| — |
|
Merger-related expense |
| 904 |
|
| — |
|
| 904 |
|
| 100 |
|
Loss on redemption of junior subordinated debt securities |
| — |
|
| 1,079 |
|
| (1,079 | ) |
| (100 | ) |
Other |
| 4,327 |
|
| 4,033 |
|
| 294 |
|
| 7 |
|
Total noninterest expense | $ | 34,137 |
| $ | 33,979 |
| $ | 158 |
|
| — | % |
- Operating lease depreciation expense: The decrease was due to a decline in the population of operating lease contracts (assets being depreciated) quarter-over-quarter.
- Marketing and advertising: The increase was associated with the launch of online deposit account opening.
- Merger-related expense: The current quarter includes costs incurred related to professional fees and due diligence performed associated with the Company's pending acquisition of Blue Ridge. No such costs were incurred in the prior quarter.
- Loss on redemption of junior subordinated debt securities: We previously established a fair value mark (discount) on the junior subordinated debt securities assumed through our merger with Quantum Capital Corp. and had been accreting the discount into interest expense. Associated with our redemption of the debt instruments last quarter, we wrote-off the remaining discount as an expense.
Income Taxes. The amount of income tax expense is influenced by the amount of pre-tax income, tax-exempt income, income tax credits, changes in the statutory rate and the effect of changes in valuation allowances maintained against deferred tax benefits. The effective tax rates for the three months ended September 30, 2026 and June 30, 2026 were 12.7% and 20.4%, respectively, with the quarter-over-quarter decrease driven by the recognition of a $1.9 million benefit associated with the Company's utilization of purchased income tax credits.
Comparison of Results of Operations for the Nine Months Ended September 30, 2026 and September 30, 2025
Net Income. Net income totaled $50.4 million, or $3.04 per diluted share, for the nine months ended September 30, 2026 compared to $48.2 million, or $2.79 per diluted share, for the nine months ended September 30, 2025, an increase of $2.2 million, or 4.4%. The results for the nine months ended September 30, 2026 compared to the prior year were positively impacted by a $3.5 million increase in net interest income, a $2.8 million decrease in the provision for credit losses, and a $1.4 million increase in noninterest income, partially offset by a $7.6 million increase in noninterest expense. In addition, income tax expense declined by $2.0 million primarily as a result of the Company's utilization of purchased renewable energy income tax credits. Details of the changes in the various components of net income are further discussed below.
Net Interest Income. The following table presents the distribution of average assets, liabilities and equity, as well as interest income earned on average interest-earning assets and interest expense paid on average interest-bearing liabilities. All average balances are daily average balances. Nonaccruing loans have been included in the table as loans carrying a zero yield.
| Nine Months Ended | ||||||||||||||||||
| September 30, 2026 |
| September 30, 2025 | ||||||||||||||||
(Dollars in thousands) |
Average
|
|
Interest
|
|
Yield /
|
|
Average
|
| Interest
Earned /
|
|
Yield /
| ||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Loans receivable(1) | $ | 3,789,833 |
|
| $ | 174,562 |
| 6.16 | % |
| $ | 3,827,840 |
|
| $ | 180,802 |
| 6.32 | % |
Debt securities available for sale |
| 147,182 |
|
|
| 4,972 |
| 4.52 |
|
|
| 149,525 |
|
|
| 5,107 |
| 4.57 |
|
Other interest-earning assets(2) |
| 204,365 |
|
|
| 6,025 |
| 3.94 |
|
|
| 168,984 |
|
|
| 6,762 |
| 5.35 |
|
Total interest-earning assets |
| 4,141,380 |
|
|
| 185,559 |
| 5.99 |
|
|
| 4,146,349 |
|
|
| 192,671 |
| 6.21 |
|
Other assets |
| 190,354 |
|
|
|
|
|
|
| 262,029 |
|
|
|
|
| ||||
Total assets | $ | 4,331,734 |
|
|
|
|
|
| $ | 4,408,378 |
|
|
|
|
| ||||
Liabilities and equity |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest-bearing checking accounts | $ | 554,308 |
|
| $ | 3,338 |
| 0.81 | % |
| $ | 560,348 |
|
| $ | 3,656 |
| 0.87 | % |
Money market accounts |
| 1,384,601 |
|
|
| 26,453 |
| 2.55 |
|
|
| 1,335,414 |
|
|
| 27,457 |
| 2.75 |
|
Savings accounts |
| 168,172 |
|
|
| 85 |
| 0.07 |
|
|
| 180,760 |
|
|
| 106 |
| 0.08 |
|
Certificate accounts |
| 756,340 |
|
|
| 18,859 |
| 3.33 |
|
|
| 917,394 |
|
|
| 27,474 |
| 4.00 |
|
Total interest-bearing deposits |
| 2,863,421 |
|
|
| 48,735 |
| 2.28 |
|
|
| 2,993,916 |
|
|
| 58,693 |
| 2.62 |
|
Junior subordinated debt |
| 6,189 |
|
|
| 339 |
| 7.32 |
|
|
| 10,155 |
|
|
| 618 |
| 8.14 |
|
Borrowings |
| 14,981 |
|
|
| 423 |
| 3.78 |
|
|
| 24,117 |
|
|
| 835 |
| 4.63 |
|
Total interest-bearing liabilities |
| 2,884,591 |
|
|
| 49,497 |
| 2.29 |
|
|
| 3,028,188 |
|
|
| 60,146 |
| 2.66 |
|
Noninterest-bearing deposits |
| 792,989 |
|
|
|
|
|
|
| 740,785 |
|
|
|
|
| ||||
Other liabilities |
| 57,177 |
|
|
|
|
|
|
| 63,791 |
|
|
|
|
| ||||
Total liabilities |
| 3,734,757 |
|
|
|
|
|
|
| 3,832,764 |
|
|
|
|
| ||||
Stockholders' equity |
| 596,977 |
|
|
|
|
|
|
| 575,614 |
|
|
|
|
| ||||
Total liabilities and stockholders' equity | $ | 4,331,734 |
|
|
|
|
|
| $ | 4,408,378 |
|
|
|
|
| ||||
Net earning assets | $ | 1,256,789 |
|
|
|
|
|
| $ | 1,118,161 |
|
|
|
|
| ||||
Average interest-earning assets to average interest-bearing liabilities |
| 143.57 | % |
|
|
|
|
|
| 136.96 | % |
|
|
|
| ||||
Non-tax-equivalent |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Net interest income |
|
| $ | 136,062 |
|
|
|
|
| $ | 132,525 |
|
| ||||||
Interest rate spread |
|
|
|
| 3.70 | % |
|
|
|
|
| 3.55 | % | ||||||
Net interest margin(3) |
|
|
|
| 4.39 | % |
|
|
|
|
| 4.27 | % | ||||||
Tax-equivalent(4) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Net interest income |
|
| $ | 137,394 |
|
|
|
|
| $ | 133,814 |
|
| ||||||
Interest rate spread |
|
|
|
| 3.74 | % |
|
|
|
|
| 3.59 | % | ||||||
Net interest margin(3) |
|
|
|
| 4.44 | % |
|
|
|
|
| 4.31 | % | ||||||
(1) | Average loans receivable balances include loans held for sale and nonaccruing loans. |
(2) | Average other interest-earning assets consist of FRB stock, FHLB stock, SBIC investments and deposits in other banks. |
(3) | Net interest income divided by average interest-earning assets. |
(4) | Tax-equivalent results include adjustments to interest income of $1,332 and $1,289 for the nine months ended September 30, 2026 and 2025, respectively, calculated based on combined federal and state tax rates of 23% and 24% for the same periods, respectively. |
Total interest and dividend income for the nine months ended September 30, 2026 decreased $7.1 million, or 3.7%, when compared to the nine months ended September 30, 2025. A decline of $6.2 million, or 3.5%, in loan interest income drove this change, primarily due to runoff in the equipment finance portfolio and a decline in the average balance of HELOC loans held for sale. Accretion income on acquired loans of $2.4 million and $1.7 million was recognized during the same periods, respectively, and was included in loan interest income.
Total interest expense for the nine months ended September 30, 2026 decreased $10.6 million, or 17.7%, when compared to the nine months ended September 30, 2025. A decline of $10.0 million, or 17.0%, in deposit interest expense drove this change, primarily the result of a decline in the average balance of certificate accounts, specifically brokered deposits, in addition to a decline in the average cost of funds across funding categories.
The following table shows the effects that changes in average balance
Contacts
C. Hunter Westbrook – President and Chief Executive Officer
Tony J. VunCannon – Executive Vice President, Chief Financial Officer, Corporate Secretary and Treasurer
828-259-3939
Read full story here
Mentioned In This Article
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