HONOLULU--(BUSINESS WIRE)--American Savings Bank, N.A. (NYSE: ASBH) (“ASB” or the “Bank”) today reported financial results for the quarter ended September 30, 2026.
Highlights for the Third Quarter |
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Net Income |
Diluted Earnings per Share |
Net Interest Income |
Net Interest Margin (NIM) |
Cost of Deposits |
Efficiency Ratio |
Book Value per Share1 |
$29.0 million |
$0.45 |
$76.4 million |
3.61% |
0.68% |
60.6% |
$10.64 |
$29.6 million as adjusted |
$0.46 as adjusted |
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Executive Commentary |
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“We reached an important milestone in the third quarter with the completion of our initial public offering and are pleased to report results for the first time as a public company,” said Ann Teranishi, president and chief executive officer. “This achievement reflects our teammates’ hard work and dedication to supporting our customers and communities every day. We are proud to build on more than 100 years of serving Hawaii with a straightforward, reliable business model. Our results demonstrate the strength of our franchise, with quarter-over-quarter margin expansion, improved efficiency, and stronger earnings and capital ratios.” |
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Income Statement Highlights |
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(amounts in millions, except per share data) |
Three Months Ended |
Prior Quarter |
Year-Over-Year |
|||||||||||||||||||||
September 30, 2026 |
June 30, 2026 |
September 30, 2025 |
$ |
% |
$ |
% |
||||||||||||||||||
Net income |
$ |
29.0 |
$ |
27.2 |
$ |
20.0 |
$ |
1.8 |
6.7 |
% |
$ |
9.0 |
45.2 |
% |
||||||||||
Diluted earnings per share |
0.45 |
0.42 |
0.31 |
0.03 |
7.1 |
0.14 |
45.2 |
|||||||||||||||||
Net interest income |
76.4 |
75.2 |
71.7 |
1.2 |
1.5 |
4.7 |
6.5 |
|||||||||||||||||
Noninterest income |
21.0 |
23.8 |
2.4 |
(2.8 |
) |
(11.7 |
) |
18.6 |
761.8 |
|||||||||||||||
Noninterest expense |
59.0 |
61.1 |
58.0 |
(2.1 |
) |
(3.4 |
) |
1.0 |
1.7 |
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Balance Sheet Highlights |
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(amounts in millions, except per share data) |
As of |
Prior Quarter End |
Year-Over-Year |
|||||||||||||||||||||
September 30, 2026 |
June 30, 2026 |
September 30, 2025 |
$ |
% |
$ |
% |
||||||||||||||||||
Total assets |
$ |
8,936.9 |
$ |
9,049.2 |
$ |
8,795.0 |
$ |
(112.2 |
) |
(1.2 |
)% |
$ |
141.9 |
1.6 |
% |
|||||||||
Investment securities |
1,909.9 |
1,941.8 |
1,790.5 |
(31.9 |
) |
(1.6 |
) |
119.4 |
6.7 |
|||||||||||||||
Loans receivable |
6,214.7 |
6,238.5 |
6,090.5 |
(23.8 |
) |
(0.4 |
) |
124.2 |
2.0 |
|||||||||||||||
Deposits |
8,053.9 |
8,191.5 |
7,946.1 |
(137.6 |
) |
(1.7 |
) |
107.8 |
1.4 |
|||||||||||||||
Book value per share1 |
10.64 |
10.65 |
9.93 |
(0.01 |
) |
(0.1 |
) |
0.71 |
7.2 |
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Asset Quality Highlights |
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As of |
Prior Quarter |
Year-Over-Year |
||||||||||||||||||||||
September 30, 2026 |
June 30, 2026 |
September 30, 2025 |
bps |
bps |
||||||||||||||||||||
Allowance for credit losses to total loans, net |
0.97 |
% |
0.99 |
% |
0.92 |
% |
(2) |
5 |
||||||||||||||||
Nonperforming loans to total loans, net |
0.29 |
0.19 |
0.19 |
10 |
10 |
|||||||||||||||||||
Net charge-offs (annualized) to average loans |
0.11 |
— |
0.07 |
11 |
4 |
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Other Financial Metrics |
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Three Months Ended |
Prior Quarter |
Year-Over-Year |
||||||||||||||||||||||
September 30, 2026 |
June 30, 2026 |
September 30, 2025 |
bps |
bps |
||||||||||||||||||||
Net interest margin |
3.61 |
% |
3.57 |
% |
3.46 |
% |
4 |
15 |
||||||||||||||||
Return on avg. assets |
1.29 |
1.21 |
0.91 |
8 |
38 |
|||||||||||||||||||
Return on average tangible common equity |
16.68 |
15.87 |
12.62 |
81 |
406 |
|||||||||||||||||||
Efficiency ratio |
60.6 |
61.7 |
78.3 |
(110) |
(1,770) |
|||||||||||||||||||
Tier 1 leverage ratio |
9.24 |
9.10 |
8.93 |
14 |
31 |
|||||||||||||||||||
Tier 1 capital ratio |
13.69 |
13.49 |
13.17 |
20 |
52 |
|||||||||||||||||||
Total capital ratio |
14.76 |
14.59 |
14.19 |
17 |
57 |
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1 As of the periods presented, the Bank had no intangible assets and had an immaterial amount of preferred stock. Tangible book value is therefore substantially the same as book value. |
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Statement of Income
Net income for the quarter ended September 30, 2026, was $29.0 million, an increase of $1.8 million compared to the prior quarter and an increase of $9.0 million compared to the prior year. Excluding the $0.6 million net of tax impact of IPO-related expenses, net income would have been $29.6 million for the quarter ended September 30, 2026. Earnings per diluted share for the quarter ended September 30, 2026, was $0.45, an increase of $0.03 per diluted share compared to the prior quarter and an increase of $0.14 per diluted share compared to the prior year. Excluding the impact of IPO-related expenses, earnings per diluted share would have been $0.46 for the quarter ended September 30, 2026.
Net interest income for the quarter ended September 30, 2026, was $76.4 million, an increase of $1.2 million compared to the prior quarter and an increase of $4.7 million compared to the prior year. The increase compared to the prior quarter primarily reflects higher average loan balances and improved earning-asset yields, partially offset by lower average investment securities and interest-earning deposits in other financial institutions versus the comparable quarters.
Net interest margin for the quarter ended September 30, 2026, was 3.61%, an increase of 4 bps compared to the prior quarter and 15 bps compared to the prior year. The increase was driven primarily by higher investment securities, residential loan and consumer loan yields and continued run-off of higher rate time certificates versus comparable periods.
Provision for credit losses was $0.7 million for the quarter ended September 30, 2026, a decrease of $2.6 million compared to the prior quarter and an increase of $8.6 million compared to the prior year. The decrease from the prior quarter primarily reflects the absence of the provision recognized in the second quarter related to real estate-secured loans to a commercial relationship and headwinds within the hospitality sector. The year-over-year comparison reflects the $11.5 million reserve release associated with the consumer loan portfolio sale in the third quarter of 2025.
Noninterest income for the quarter ended September 30, 2026, was $21.0 million, a decrease of $2.8 million compared to the prior quarter and an increase of $18.6 million compared to the prior year. The decrease compared to the prior quarter primarily relates to a lower fair market value (“FMV”) adjustment related to bank-owned life insurance (“BOLI”). Excluding the FMV impact of BOLI, noninterest income would have been $1.3 million higher in the current quarter versus the prior quarter, driven primarily by higher service charges on deposit accounts, income from investment services and other income. The increase compared to the prior year was driven by the loss on sale of consumer loans recognized in the third quarter of 2025 when the Bank sold its portfolio of mainland solar and home improvement consumer loans.
Noninterest expense for the quarter ended September 30, 2026, was $59.0 million, a decrease of $2.1 million compared to the prior quarter and an increase of $1.0 million compared to the prior year. The decrease compared to the prior quarter primarily relates to a lower FMV adjustment related to the Bank’s deferred compensation liability included in Salaries and employee benefits. Excluding the FMV impact, noninterest expense would have increased $2.0 million compared to the prior quarter, driven primarily by higher salaries and employee benefits resulting from higher incentive accruals. Excluding the FMV impact, noninterest expense would have increased $3.8 million compared to the prior year, driven primarily by higher salaries and employee benefits and approximately $0.9 million of expenses related to our initial public offering.
The effective tax rate for the quarter ended September 30, 2026, was 23.0% compared to 21.6% in the prior quarter and 16.5% in the prior year. The increase in the effective tax rate was primarily due to higher pre-tax income and certain costs that are no longer deductible as a result of being a public company.
Balance Sheet
Total assets at September 30, 2026, were $8.9 billion, $112.2 million lower than June 30, 2026, and $141.9 million higher compared to September 30, 2025. The decrease from prior quarter primarily relates to a decrease in interest-bearing deposits in other financial institutions as well as modest declines in loans and investment securities.
Total deposits were $8.1 billion, a decrease of $137.6 million, or 1.7%, compared to prior quarter and an increase of 1.4% compared to prior year. Core deposits decreased $92.1 million compared to June 30, 2026, primarily due to a decrease in interest-bearing checking, partially offset by growth in noninterest-bearing checking and savings accounts. The cost of deposits for the third quarter of 2026 was 0.68%, a decrease of 1 bp from the second quarter and a decrease of 9 bps compared to the prior year.
Book value per common share and tangible book value per common share at September 30, 2026, were $10.64 per common share, compared to $10.65 per common share at June 30, 2026, and $9.93 per common share at September 30, 2025. The balance at quarter-end compared to prior quarter primarily reflects third quarter net income offset by dividends paid in the third quarter and an increase in accumulated other comprehensive loss related to fair value changes of available-for-sale investment securities. The increase compared to prior year primarily reflects net income during the trailing twelve months offset by dividends paid during the same period.
Asset Quality
Allowance for credit losses was $60.2 million, or 0.97% of total loans, net at September 30, 2026, compared to $61.5 million, or 0.99% of total loans, at June 30, 2026, and $56.0 million, or 0.92% of total loans, at September 30, 2025. Net charge-offs for the quarter ended September 30, 2026, were $1.8 million, or 0.11% as a percentage of average loans (annualized), compared to $0.1 million, or less than 1 bp, in the prior quarter and $1.1 million, or 0.07%, compared to the prior year. The decrease in the allowance and increase in charge-offs as of and for the quarter ended September 30, 2026, compared to the prior quarter included a partial charge-off of a nonperforming commercial construction loan.
Nonaccrual loans at September 30, 2026, were $12.6 million, or 0.20% of total loans, net of deferred loan fees and discounts, compared to $8.4 million, or 0.13%, at June 30, 2026, and $8.5 million, or 0.14%, at September 30, 2025.
Capital
Total stockholders’ equity was $691.7 million on September 30, 2026, compared to $692.5 million on June 30, 2026. The tier 1 leverage ratio was 9.24% at September 30, 2026, compared to 9.10% at June 30, 2026, and 8.93% at September 30, 2025.
On October 27, 2026, ASB’s Board of Directors declared a cash dividend on common stock of $0.27 per share of common stock to stockholders of record as of November 9, 2026. The dividend will be paid on November 20, 2026.
Conference Call and Webcast Details
ASB will host a conference call and webcast to discuss third quarter 2026 results and provide further business updates.
Date: Friday, October 30, 2026 |
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Time: 2:00 P.M. Eastern | 1:00 P.M. Central | 11:00 A.M. Pacific | 8:00 A.M. Hawaii |
|
Participant Toll-Free Dial-in Number: 1-833-461-5787 |
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Participant International Dial-in Number: 1-585-542-9983 |
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Conference ID: 477 004 733 |
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Webcast URL: https://events.q4inc.com/attendee/477004733 |
About American Savings Bank
ASB is a Hawaii-based, full-service community bank serving Hawaii’s consumers, businesses and communities since 1925. ASB makes dreams possible for Hawaii’s residents by offering products and services that encourage financial wellness, empower families to become homeowners and help businesses thrive. ASB operates a network of 35 branches and over 120 ATMs in the State of Hawaii. With one of the state’s highest-rated mobile apps for banking, ASB is available anytime, anywhere, making banking easier for our customers. ASB pairs its customer experience with an award-winning employee experience that has received local and national recognition, including being named a Best Place to Work in Hawaii for 16 years.
Visit www.asbhawaii.com for more information.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended). These statements reflect our current views with respect to, among other things, future operating results and financial position, our business strategy and plans and market growth. These statements are often, but not always, made through the use of words or phrases such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan” or words or phrases of similar meaning, such as “will be positioned to.” These forward-looking statements are not statements of historical fact, and are based on current expectations, estimates and projections about our industry as well as certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. The forward-looking statements in this press release are only predictions and are based largely on our current expectations and projections about future events and trends that we believe may affect our business financial condition and results of operations. These forward-looking statements speak only as of the date of this press release and are subject to a number of known and unknown risks, uncertainties and assumptions. Moreover, we operate in a competitive and changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. For further information on some of these risk factors and important factors that could affect our future results and financial condition, see our filings with U.S. Office of the Comptroller of the Currency (“OCC”) including, but not limited to, our registration statement on Form S-1 that was declared effective by the OCC on September 15, 2026, relating to our initial public offering. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely upon these forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance or achievements. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this presentation, except as required by law.
American Savings Bank, N.A. |
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Financial Highlights |
Table 1 |
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Amounts in thousands, except per share data; unaudited |
As of or For the Three Months Ended |
Nine Months Ended |
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September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
|||||||||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
||||||||||||||||||||||
Operating Results |
||||||||||||||||||||||||||||
Net interest income |
$ |
76,370 |
$ |
75,217 |
$ |
74,244 |
$ |
74,020 |
$ |
71,710 |
$ |
225,831 |
$ |
209,109 |
||||||||||||||
Provision (benefit) for credit losses |
739 |
3,298 |
1,049 |
1,903 |
(7,816 |
) |
5,086 |
(2,737 |
) |
|||||||||||||||||||
Noninterest income |
21,046 |
23,827 |
20,103 |
22,836 |
2,442 |
64,976 |
(110,815 |
) |
||||||||||||||||||||
Noninterest expense |
59,008 |
61,083 |
56,879 |
81,040 |
58,049 |
176,970 |
165,816 |
|||||||||||||||||||||
Net income (loss) |
28,989 |
27,175 |
28,553 |
11,353 |
19,961 |
84,717 |
(41,547 |
) |
||||||||||||||||||||
Pre-tax, pre-provision income(1) |
38,408 |
37,961 |
37,468 |
15,816 |
16,103 |
113,837 |
(67,522 |
) |
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Performance Ratios |
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Return on average assets(2) |
1.29 |
% |
1.21 |
% |
1.27 |
% |
0.51 |
% |
0.91 |
% |
1.26 |
% |
(0.62 |
)% |
||||||||||||||
Adjusted return on average assets(1)(2) |
1.32 |
1.25 |
1.28 |
1.21 |
1.19 |
1.28 |
1.10 |
|||||||||||||||||||||
Return on average tangible common equity(1)(2) |
16.68 |
15.87 |
16.91 |
6.86 |
12.62 |
16.48 |
(9.29 |
) |
||||||||||||||||||||
Adjusted return on average tangible common equity(1)(2) |
17.04 |
16.36 |
17.05 |
16.26 |
16.52 |
16.81 |
16.62 |
|||||||||||||||||||||
Net interest margin(2) |
3.61 |
3.57 |
3.55 |
3.55 |
3.46 |
3.58 |
3.29 |
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Cost of deposits(2) |
0.68 |
0.69 |
0.69 |
0.72 |
0.77 |
0.69 |
0.81 |
|||||||||||||||||||||
Efficiency ratio |
60.6 |
61.7 |
60.3 |
83.7 |
78.3 |
60.9 |
168.7 |
|||||||||||||||||||||
Adjusted efficiency ratio(1) |
59.7 |
60.5 |
60.0 |
61.7 |
61.7 |
60.1 |
61.9 |
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Capital Ratios |
||||||||||||||||||||||||||||
Tier 1 leverage ratio |
9.24 |
% |
9.10 |
% |
9.03 |
% |
9.00 |
% |
8.93 |
% |
||||||||||||||||||
Tier 1 capital ratio |
13.69 |
13.49 |
13.49 |
13.46 |
13.17 |
|||||||||||||||||||||||
Total capital ratio |
14.76 |
14.59 |
14.55 |
14.52 |
14.19 |
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Common Stock Data3: |
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Basic earnings (loss) per share |
$ |
0.45 |
$ |
0.42 |
$ |
0.44 |
$ |
0.17 |
$ |
0.31 |
$ |
1.30 |
$ |
(0.64 |
) |
|||||||||||||
Diluted earnings (loss) per share |
$ |
0.45 |
$ |
0.42 |
$ |
0.44 |
$ |
0.17 |
$ |
0.31 |
$ |
1.30 |
$ |
(0.64 |
) |
|||||||||||||
Dividends declared per common share |
$ |
0.27 |
$ |
0.27 |
$ |
0.27 |
$ |
— |
$ |
— |
$ |
0.81 |
$ |
— |
||||||||||||||
Tangible book value per share |
$ |
10.64 |
$ |
10.65 |
$ |
10.48 |
$ |
10.31 |
$ |
9.93 |
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Weighted average common stock outstanding |
||||||||||||||||||||||||||||
Basic |
64,998 |
64,998 |
64,998 |
64,998 |
64,998 |
64,998 |
64,998 |
|||||||||||||||||||||
Diluted |
65,006 |
64,998 |
64,998 |
64,998 |
64,998 |
65,001 |
64,998 |
|||||||||||||||||||||
Average balances: |
||||||||||||||||||||||||||||
Average loans, including loans held for sale |
$ |
6,221,377 |
$ |
6,175,040 |
$ |
6,091,422 |
$ |
6,099,090 |
$ |
6,112,552 |
$ |
6,163,089 |
$ |
6,091,062 |
||||||||||||||
Average earning assets |
$ |
8,428,575 |
$ |
8,441,368 |
$ |
8,415,948 |
$ |
8,322,552 |
$ |
8,258,890 |
$ |
8,428,677 |
$ |
8,499,236 |
||||||||||||||
Average assets |
$ |
8,988,897 |
$ |
8,995,938 |
$ |
8,969,324 |
$ |
8,879,842 |
$ |
8,795,986 |
$ |
8,984,791 |
$ |
8,983,526 |
||||||||||||||
Average deposits |
$ |
8,118,001 |
$ |
8,143,415 |
$ |
8,123,212 |
$ |
8,028,080 |
$ |
7,969,399 |
$ |
8,128,190 |
$ |
8,012,120 |
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(1) These are non-GAAP financial measures we believe are helpful in interpreting our financial results. For more information on non-GAAP measures and for a reconciliation to the most directly comparable GAAP financial measures, see Statement on Management’s Use of Non-GAAP Financial Measures. |
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(2) Ratios are presented on an annualized basis. |
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(3) Common stock data for the three months ended June 30, 2026, March 31, 2026, December 31, 2025 and September 30, 2025, and the nine months ended September 30, 2026 and September 30, 2025, are adjusted for the Bank’s 7,222-to-1 forward split that became effective on September 15, 2026. |
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American Savings Bank, N.A. |
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Statements of Income (Loss) (unaudited) |
Table 2 |
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(amounts in thousands, except per share data) |
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
|||||||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
||||||||||||||||||||
Interest income |
||||||||||||||||||||||||||
Loans |
$ |
77,249 |
$ |
75,814 |
$ |
74,407 |
$ |
75,742 |
$ |
75,443 |
$ |
227,470 |
$ |
224,375 |
||||||||||||
Investment securities |
12,395 |
12,537 |
11,619 |
10,810 |
9,781 |
36,551 |
30,092 |
|||||||||||||||||||
Other |
793 |
907 |
2,053 |
2,117 |
1,892 |
3,753 |
9,897 |
|||||||||||||||||||
Total interest income |
90,437 |
89,258 |
88,079 |
88,669 |
87,116 |
267,774 |
264,364 |
|||||||||||||||||||
Interest expense |
||||||||||||||||||||||||||
Deposits |
13,945 |
14,020 |
13,835 |
14,649 |
15,405 |
41,800 |
48,565 |
|||||||||||||||||||
Other borrowings |
122 |
21 |
— |
— |
1 |
143 |
6,690 |
|||||||||||||||||||
Total interest expense |
14,067 |
14,041 |
13,835 |
14,649 |
15,406 |
41,943 |
55,255 |
|||||||||||||||||||
Net interest income |
76,370 |
75,217 |
74,244 |
74,020 |
71,710 |
225,831 |
209,109 |
|||||||||||||||||||
Provision (benefit) for credit losses |
739 |
3,298 |
1,049 |
1,903 |
(7,816 |
) |
5,086 |
(2,737 |
) |
|||||||||||||||||
Net interest income after provision (benefit) for credit losses |
75,631 |
71,919 |
73,195 |
72,117 |
79,526 |
220,745 |
211,846 |
|||||||||||||||||||
Noninterest income |
||||||||||||||||||||||||||
Service charges on deposit accounts |
5,430 |
4,935 |
4,771 |
5,277 |
5,144 |
15,136 |
14,698 |
|||||||||||||||||||
Other service charges and fees |
8,252 |
8,276 |
8,224 |
8,519 |
8,200 |
24,752 |
23,789 |
|||||||||||||||||||
Income from investment services |
4,283 |
3,997 |
3,684 |
3,906 |
3,682 |
11,964 |
10,345 |
|||||||||||||||||||
Mortgage banking income |
263 |
187 |
206 |
194 |
147 |
656 |
554 |
|||||||||||||||||||
Bank-owned life insurance |
1,683 |
5,730 |
2,497 |
4,239 |
4,455 |
9,910 |
7,375 |
|||||||||||||||||||
Loss on sale of investment securities, net |
— |
— |
— |
— |
— |
— |
(149,869 |
) |
||||||||||||||||||
Loss on sale of consumer loans |
— |
— |
— |
— |
(19,918 |
) |
— |
(19,918 |
) |
|||||||||||||||||
Other income, net |
1,135 |
702 |
721 |
701 |
732 |
2,558 |
2,211 |
|||||||||||||||||||
Total noninterest income |
21,046 |
23,827 |
20,103 |
22,836 |
2,442 |
64,976 |
(110,815 |
) |
||||||||||||||||||
Noninterest expense |
||||||||||||||||||||||||||
Salaries and employee benefits |
33,033 |
35,881 |
33,291 |
34,650 |
33,198 |
102,205 |
93,448 |
|||||||||||||||||||
Occupancy |
5,421 |
5,507 |
5,377 |
5,753 |
5,921 |
16,305 |
16,633 |
|||||||||||||||||||
Data processing |
5,614 |
5,668 |
5,492 |
5,781 |
5,532 |
16,774 |
16,392 |
|||||||||||||||||||
Services |
2,877 |
2,720 |
2,443 |
3,005 |
2,895 |
8,040 |
8,247 |
|||||||||||||||||||
Equipment |
2,314 |
2,287 |
2,273 |
2,292 |
2,253 |
6,874 |
6,964 |
|||||||||||||||||||
FDIC insurance |
1,043 |
1,079 |
1,076 |
1,363 |
1,394 |
3,198 |
4,772 |
|||||||||||||||||||
Marketing |
1,070 |
862 |
852 |
1,248 |
1,228 |
2,784 |
3,190 |
|||||||||||||||||||
Office supplies, printing and postage |
1,001 |
1,188 |
1,093 |
1,024 |
1,121 |
3,282 |
3,210 |
|||||||||||||||||||
Pension plan settlement |
— |
— |
(717 |
) |
21,275 |
— |
(717 |
) |
— |
|||||||||||||||||
Other expense |
6,635 |
5,891 |
5,699 |
4,649 |
4,507 |
18,225 |
12,960 |
|||||||||||||||||||
Total noninterest expense |
59,008 |
61,083 |
56,879 |
81,040 |
58,049 |
176,970 |
165,816 |
|||||||||||||||||||
Income (loss) before income taxes |
37,669 |
34,663 |
36,419 |
13,913 |
23,919 |
108,751 |
(64,785 |
) |
||||||||||||||||||
Income tax expense (benefit) |
8,680 |
7,488 |
7,866 |
2,560 |
3,958 |
24,034 |
(23,238 |
) |
||||||||||||||||||
Net income (loss) |
$ |
28,989 |
$ |
27,175 |
$ |
28,553 |
$ |
11,353 |
$ |
19,961 |
$ |
84,717 |
$ |
(41,547 |
) |
|||||||||||
Per common share data1: |
||||||||||||||||||||||||||
Basic earnings (loss) per share |
$ |
0.45 |
$ |
0.42 |
$ |
0.44 |
$ |
0.17 |
$ |
0.31 |
$ |
1.30 |
$ |
(0.64 |
) |
|||||||||||
Diluted earnings (loss) per share |
$ |
0.45 |
$ |
0.42 |
$ |
0.44 |
$ |
0.17 |
$ |
0.31 |
$ |
1.30 |
$ |
(0.64 |
) |
|||||||||||
Basic weighted-average shares outstanding |
64,998 |
64,998 |
64,998 |
64,998 |
64,998 |
64,998 |
64,998 |
|||||||||||||||||||
Diluted weighted-average shares outstanding |
65,006 |
64,998 |
64,998 |
64,998 |
64,998 |
65,001 |
64,998 |
|||||||||||||||||||
Dividends declared per common share |
$ |
0.27 |
$ |
0.27 |
$ |
0.27 |
$ |
— |
$ |
— |
$ |
0.81 |
$ |
— |
||||||||||||
Supplemental information |
||||||||||||||||||||||||||
FMV adjustment included in Bank-owned life insurance |
$ |
(297 |
) |
$ |
3,815 |
$ |
635 |
$ |
1,212 |
$ |
2,591 |
$ |
4,153 |
$ |
1,916 |
|||||||||||
FMV adjustment on deferred comp liability included in Salaries and employee benefits |
$ |
(297 |
) |
$ |
3,827 |
$ |
981 |
$ |
1,242 |
$ |
2,571 |
$ |
4,511 |
$ |
2,088 |
|||||||||||
(1) Common stock data for the three months ended June 30, 2026, March 31, 2026, December 31, 2025 and September 30, 2025, and the nine months ended September 30, 2026 and September 30, 2025, are adjusted for the Bank’s 7,222-to-1 forward split that became effective on September 15, 2026. |
||||||||||||||||||||||||||
American Savings Bank, N.A. |
||||||||||||||||||||
Balance Sheets (unaudited) |
Table 3 |
|||||||||||||||||||
(dollars in thousands) |
As of |
|||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
||||||||||||||||
Assets |
||||||||||||||||||||
Cash and due from banks |
$ |
165,047 |
$ |
145,718 |
$ |
133,593 |
$ |
112,962 |
$ |
123,680 |
||||||||||
Interest-bearing deposits in other financial institutions |
9,357 |
83,168 |
94,873 |
286,993 |
152,382 |
|||||||||||||||
Cash and cash equivalents |
174,404 |
228,886 |
228,466 |
399,955 |
276,062 |
|||||||||||||||
Investment Securities |
||||||||||||||||||||
Available-for-sale, at fair value |
847,996 |
865,754 |
938,614 |
755,884 |
676,959 |
|||||||||||||||
Held-to-maturity, at amortized cost |
1,061,892 |
1,076,007 |
1,089,344 |
1,101,853 |
1,113,537 |
|||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stock, at cost |
17,588 |
16,179 |
16,179 |
16,366 |
5,575 |
|||||||||||||||
Loans held for sale, at lower of cost or fair value |
1,084 |
4,485 |
— |
4,723 |
1,776 |
|||||||||||||||
Loans held for investment |
6,214,714 |
6,238,473 |
6,147,761 |
6,083,247 |
6,090,536 |
|||||||||||||||
Allowance for credit losses |
(60,220 |
) |
(61,535 |
) |
(58,292 |
) |
(57,557 |
) |
(56,008 |
) |
||||||||||
Net loans held for investment |
6,154,494 |
6,176,938 |
6,089,469 |
6,025,690 |
6,034,528 |
|||||||||||||||
Premises and equipment, net |
171,143 |
172,404 |
173,705 |
174,956 |
175,435 |
|||||||||||||||
Bank-owned life insurance |
220,255 |
218,567 |
212,836 |
210,340 |
211,395 |
|||||||||||||||
Accrued interest receivable |
30,440 |
30,261 |
30,525 |
29,435 |
28,800 |
|||||||||||||||
Mortgage servicing rights, net |
5,970 |
6,183 |
6,361 |
6,579 |
6,802 |
|||||||||||||||
Deferred tax asset |
120,111 |
115,919 |
111,155 |
111,415 |
110,632 |
|||||||||||||||
Other assets |
131,555 |
137,577 |
146,055 |
142,290 |
153,491 |
|||||||||||||||
Total assets |
$ |
8,936,932 |
$ |
9,049,160 |
$ |
9,042,709 |
$ |
8,979,486 |
$ |
8,794,992 |
||||||||||
Liabilities and stockholders' equity |
||||||||||||||||||||
Liabilities: |
||||||||||||||||||||
Noninterest-bearing |
$ |
2,533,312 |
$ |
2,524,356 |
$ |
2,523,695 |
$ |
2,498,000 |
$ |
2,454,299 |
||||||||||
Interest-bearing |
5,520,613 |
5,667,132 |
5,676,119 |
5,639,022 |
5,491,833 |
|||||||||||||||
Total deposits |
8,053,925 |
8,191,488 |
8,199,814 |
8,137,022 |
7,946,132 |
|||||||||||||||
Other borrowings |
31,300 |
— |
— |
— |
— |
|||||||||||||||
Other liabilities |
159,964 |
165,176 |
161,425 |
172,588 |
203,719 |
|||||||||||||||
Total liabilities |
$ |
8,245,189 |
$ |
8,356,664 |
$ |
8,361,239 |
$ |
8,309,610 |
$ |
8,149,851 |
||||||||||
Stockholders' equity: |
||||||||||||||||||||
Preferred stock |
$ |
5 |
$ |
5 |
$ |
5 |
$ |
5 |
$ |
— |
||||||||||
Common stock |
9 |
9 |
9 |
9 |
9 |
|||||||||||||||
Additional paid-in capital |
360,431 |
359,704 |
359,704 |
359,704 |
359,704 |
|||||||||||||||
Accumulated other comprehensive loss, net of tax benefits |
(147,082 |
) |
(134,118 |
) |
(135,474 |
) |
(136,020 |
) |
(149,397 |
) |
||||||||||
Retained earnings |
478,380 |
466,896 |
457,226 |
446,178 |
434,825 |
|||||||||||||||
Total stockholders' equity |
691,743 |
692,496 |
681,470 |
669,876 |
645,141 |
|||||||||||||||
Total liabilities and stockholders' equity |
$ |
8,936,932 |
$ |
9,049,160 |
$ |
9,042,709 |
$ |
8,979,486 |
$ |
8,794,992 |
||||||||||
American Savings Bank, N.A. |
||||||||||||||||||||||||||||||
Average Balances and Net Interest Margin (Quarter-to-Date) |
Table 4A |
|||||||||||||||||||||||||||||
Amounts in thousands; unaudited |
Three Months Ended |
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||||||||
September 30, 2026 |
June 30, 2026 |
September 30, 2025 |
||||||||||||||||||||||||||||
Average Balance |
Interest income / expense |
Yield / Rate(5) |
Average Balance |
Interest income / expense |
Yield / Rate(5) |
Average Balance |
Interest income / expense |
Yield / Rate(5) |
||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||
Interest-earning deposits |
$ |
54,951 |
$ |
515 |
3.66 |
% |
$ |
71,884 |
$ |
662 |
3.65 |
% |
$ |
161,501 |
$ |
1,803 |
4.37 |
% |
||||||||||||
FHLB and FRB stock |
16,719 |
278 |
6.63 |
16,274 |
245 |
6.02 |
5,575 |
89 |
6.34 |
|||||||||||||||||||||
Investment securities |
||||||||||||||||||||||||||||||
Taxable |
2,072,793 |
12,056 |
2.33 |
2,114,688 |
12,190 |
2.31 |
1,914,629 |
9,410 |
1.96 |
|||||||||||||||||||||
Non-taxable |
62,735 |
429 |
2.71 |
63,482 |
439 |
2.75 |
64,633 |
470 |
2.88 |
|||||||||||||||||||||
Total investment securities |
2,135,528 |
12,485 |
2.34 |
2,178,170 |
12,629 |
2.32 |
1,979,262 |
9,880 |
1.99 |
|||||||||||||||||||||
Loans |
||||||||||||||||||||||||||||||
Residential |
2,760,053 |
30,136 |
4.37 |
2,737,131 |
29,573 |
4.32 |
2,633,196 |
27,501 |
4.18 |
|||||||||||||||||||||
Commercial real estate |
1,575,008 |
19,540 |
4.88 |
1,573,001 |
19,402 |
4.89 |
1,451,276 |
18,367 |
4.97 |
|||||||||||||||||||||
Home equity line of credit |
913,856 |
10,822 |
4.70 |
923,577 |
10,735 |
4.66 |
945,742 |
11,230 |
4.71 |
|||||||||||||||||||||
Residential land |
14,165 |
299 |
8.44 |
13,671 |
288 |
8.45 |
16,901 |
345 |
8.16 |
|||||||||||||||||||||
Commercial construction |
197,741 |
3,205 |
6.37 |
186,216 |
3,123 |
6.66 |
209,974 |
3,841 |
7.19 |
|||||||||||||||||||||
Commercial & industrial |
643,030 |
9,130 |
5.60 |
629,432 |
8,850 |
5.61 |
658,796 |
9,776 |
5.85 |
|||||||||||||||||||||
Consumer |
117,524 |
4,351 |
14.69 |
112,012 |
4,064 |
14.55 |
196,667 |
4,644 |
9.38 |
|||||||||||||||||||||
Total loans(1)(2) |
6,221,377 |
77,483 |
4.94 |
6,175,040 |
76,035 |
4.92 |
6,112,552 |
75,704 |
4.91 |
|||||||||||||||||||||
Total interest-earning assets(3) |
8,428,575 |
90,761 |
4.28 |
% |
8,441,368 |
89,571 |
4.24 |
8,258,890 |
87,476 |
4.20 |
||||||||||||||||||||
Allowance for credit losses |
(62,377 |
) |
(58,844 |
) |
(61,624 |
) |
||||||||||||||||||||||||
Noninterest-earning assets |
622,699 |
613,414 |
598,720 |
|||||||||||||||||||||||||||
Total assets |
$ |
8,988,897 |
$ |
8,995,938 |
$ |
8,795,986 |
||||||||||||||||||||||||
Liabilities and stockholders' equity |
||||||||||||||||||||||||||||||
Interest-bearing deposits |
||||||||||||||||||||||||||||||
Savings |
$ |
2,833,597 |
$ |
3,977 |
0.56 |
% |
$ |
2,812,175 |
$ |
3,834 |
0.55 |
% |
$ |
2,760,548 |
$ |
3,617 |
0.52 |
% |
||||||||||||
Interest-bearing checking |
1,604,662 |
3,320 |
0.82 |
1,642,161 |
3,317 |
0.81 |
1,472,253 |
2,830 |
0.76 |
|||||||||||||||||||||
Money market |
563,408 |
3,455 |
2.43 |
549,705 |
3,311 |
2.42 |
530,324 |
4,173 |
3.12 |
|||||||||||||||||||||
Time certificates |
598,185 |
3,193 |
2.12 |
635,176 |
3,558 |
2.25 |
729,554 |
4,785 |
2.60 |
|||||||||||||||||||||
Total interest-bearing deposits |
5,599,852 |
13,945 |
0.99 |
5,639,217 |
14,020 |
1.00 |
5,492,679 |
15,405 |
1.11 |
|||||||||||||||||||||
Advances from Federal Home Loan Bank |
12,004 |
122 |
3.99 |
2,104 |
21 |
3.84 |
11 |
1 |
4.50 |
|||||||||||||||||||||
Federal Funds Purchased |
11 |
— |
3.75 |
— |
— |
— |
11 |
— |
4.50 |
|||||||||||||||||||||
Total interest-bearing liabilities |
5,611,867 |
14,067 |
0.99 |
% |
5,641,321 |
14,041 |
1.00 |
% |
5,492,701 |
15,406 |
1.11 |
% |
||||||||||||||||||
Noninterest-bearing liabilities |
||||||||||||||||||||||||||||||
Deposits |
2,518,149 |
2,504,198 |
2,476,720 |
|||||||||||||||||||||||||||
Other |
163,529 |
165,601 |
194,130 |
|||||||||||||||||||||||||||
Stockholders' equity |
695,352 |
684,818 |
632,435 |
|||||||||||||||||||||||||||
Total liabilities and stockholders' equity |
$ |
8,988,897 |
$ |
8,995,938 |
$ |
8,795,986 |
||||||||||||||||||||||||
Net interest income |
$ |
76,694 |
$ |
75,530 |
$ |
72,070 |
||||||||||||||||||||||||
Net interest margin (%)(4) |
3.61 |
% |
3.57 |
% |
3.46 |
% |
||||||||||||||||||||||||
Supplemental Information |
||||||||||||||||||||||||||||||
Total deposits including non-interest bearing |
$ |
8,118,001 |
0.68 |
% |
$ |
8,143,415 |
0.69 |
% |
$ |
7,969,399 |
0.77 |
% |
||||||||||||||||||
(1) Includes loans held for sale, at lower of cost or fair value, of $3.1 million, $2.5 million and $25.3 million for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. |
||||||||||||||||||||||||||||||
(2) Includes recognition of net deferred loan fees of $0.4 million, $0.3 million and $0.6 million for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively, together with interest accrued prior to suspension of interest accrual on nonaccrual loans. Includes nonaccrual loans. |
||||||||||||||||||||||||||||||
(3) Interest income and yield are expressed on a taxable-equivalent basis. Taxable-equivalent adjustments were $0.3 million, $0.3 million and $0.4 million for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025. |
||||||||||||||||||||||||||||||
(4) Annualized net interest income and expense are based on the day count convention at the interest-earning asset or interest-bearing liability level and is divided by average interest-earning assets. |
||||||||||||||||||||||||||||||
(5) Average yields and costs are presented on an annualized basis. |
||||||||||||||||||||||||||||||
American Savings Bank, N.A. |
||||||||||||
Analysis of Change in Net Interest Income |
Table 4B |
|||||||||||
Amounts in thousands; unaudited |
Three Months Ended September 30, 2026 |
|||||||||||
Compared to June 30, 2026 |
||||||||||||
Rate |
Volume |
Total |
||||||||||
Change in interest income(1) |
||||||||||||
Interest-earning deposits |
$ |
2 |
$ |
(149 |
) |
$ |
(147 |
) |
||||
FHLB and FRB stock |
26 |
7 |
33 |
|||||||||
Investment securities |
||||||||||||
Taxable |
112 |
(246 |
) |
(134 |
) |
|||||||
Non-taxable |
(5 |
) |
(5 |
) |
(10 |
) |
||||||
Total investment securities |
107 |
(251 |
) |
(144 |
) |
|||||||
Loans |
||||||||||||
Residential mortgage(2) |
327 |
236 |
563 |
|||||||||
Commercial real estate |
54 |
84 |
138 |
|||||||||
Home equity line of credit |
141 |
(54 |
) |
87 |
||||||||
Residential land |
— |
11 |
11 |
|||||||||
Commercial construction |
(124 |
) |
206 |
82 |
||||||||
Commercial & industrial |
(8 |
) |
288 |
280 |
||||||||
Consumer |
46 |
241 |
287 |
|||||||||
Total loans |
436 |
1,012 |
1,448 |
|||||||||
Total change in interest income |
$ |
571 |
$ |
619 |
$ |
1,190 |
||||||
Change in interest expense |
||||||||||||
Interest-bearing deposits |
||||||||||||
Savings |
$ |
(101 |
) |
$ |
(42 |
) |
$ |
(143 |
) |
|||
Interest-bearing checking |
(55 |
) |
52 |
(3 |
) |
|||||||
Money market |
(21 |
) |
(123 |
) |
(144 |
) |
||||||
Time certificates |
182 |
183 |
365 |
|||||||||
Total interest-bearing deposits |
5 |
70 |
75 |
|||||||||
Other borrowings |
||||||||||||
Advances from Federal Home Loan Bank |
(1 |
) |
(100 |
) |
(101 |
) |
||||||
Federal Funds Purchased |
— |
— |
— |
|||||||||
Total change in interest expense |
4 |
(30 |
) |
(26 |
) |
|||||||
Change in net interest income |
$ |
575 |
$ |
589 |
$ |
1,164 |
||||||
(1) The taxable-equivalent basis adjustments were not material. |
||||||||||||
(2) Includes residential construction loan interest income. |
||||||||||||
American Savings Bank, N.A. |
||||||||||||
Analysis of Change in Net Interest Income |
Table 4C |
|||||||||||
Amounts in thousands; unaudited |
Three Months Ended September 30, 2026 |
|||||||||||
Compared to September 30, 2025 |
||||||||||||
Rate |
Volume |
Total |
||||||||||
Change in interest income(1) |
||||||||||||
Interest-earning deposits |
$ |
(255 |
) |
$ |
(1,033 |
) |
$ |
(1,288 |
) |
|||
FHLB and FRB stock |
4 |
185 |
189 |
|||||||||
Investment securities |
||||||||||||
Taxable |
1,826 |
820 |
2,646 |
|||||||||
Non-taxable |
(27 |
) |
(14 |
) |
(41 |
) |
||||||
Total investment securities |
1,799 |
806 |
2,605 |
|||||||||
Loans |
||||||||||||
Residential mortgage(2) |
1,279 |
1,356 |
2,635 |
|||||||||
Commercial real estate |
(334 |
) |
1,507 |
1,173 |
||||||||
Home equity line of credit |
(25 |
) |
(383 |
) |
(408 |
) |
||||||
Residential land |
12 |
(58 |
) |
(46 |
) |
|||||||
Commercial construction |
(420 |
) |
(216 |
) |
(636 |
) |
||||||
Commercial & industrial |
(414 |
) |
(232 |
) |
(646 |
) |
||||||
Consumer |
(122 |
) |
(171 |
) |
(293 |
) |
||||||
Total loans |
(24 |
) |
1,803 |
1,779 |
||||||||
Total change in interest income |
$ |
1,524 |
$ |
1,761 |
$ |
3,285 |
||||||
Change in interest expense |
||||||||||||
Interest-bearing deposits |
||||||||||||
Savings |
$ |
(267 |
) |
$ |
(93 |
) |
$ |
(360 |
) |
|||
Interest-bearing checking |
(229 |
) |
(261 |
) |
(490 |
) |
||||||
Money market |
965 |
(247 |
) |
718 |
||||||||
Time certificates |
806 |
786 |
1,592 |
|||||||||
Total interest-bearing deposits |
1,275 |
185 |
1,460 |
|||||||||
Other borrowings |
||||||||||||
Advances from FHLB |
— |
(121 |
) |
(121 |
) |
|||||||
Total change in interest expense |
1,275 |
64 |
1,339 |
|||||||||
Change in net interest income |
$ |
2,799 |
$ |
1,825 |
$ |
4,624 |
||||||
(1) The taxable-equivalent basis adjustments were not material. |
||||||||||||
(2) Includes residential construction loan interest income. |
||||||||||||
American Savings Bank, N.A. |
||||||||||||||||||||
Average Balances and Net Interest Margin (Year-to-Date) |
Table 4D |
|||||||||||||||||||
Amounts in thousands; unaudited |
Nine Months Ended |
Nine Months Ended |
||||||||||||||||||
September 30, 2026 |
September 30, 2025 |
|||||||||||||||||||
Average Balance |
Interest income / expense |
Yield / Rate(5) |
Average Balance |
Interest income / expense |
Yield / Rate(5) |
|||||||||||||||
Assets |
||||||||||||||||||||
Interest-earning deposits |
$ |
107,915 |
$ |
2,986 |
3.65 |
% |
$ |
270,828 |
$ |
9,020 |
4.39 |
% |
||||||||
FHLB and FRB stock |
16,453 |
767 |
6.22 |
13,935 |
877 |
8.41 |
||||||||||||||
Investment securities |
||||||||||||||||||||
Taxable |
2,077,860 |
35,517 |
2.28 |
2,058,402 |
28,975 |
1.88 |
||||||||||||||
Non-taxable |
63,360 |
1,309 |
2.74 |
65,009 |
1,414 |
2.89 |
||||||||||||||
Total investment securities |
2,141,220 |
36,826 |
2.29 |
2,123,411 |
30,389 |
1.91 |
||||||||||||||
Loans |
||||||||||||||||||||
Residential mortgage |
2,747,766 |
89,256 |
4.33 |
2,625,107 |
81,917 |
4.16 |
||||||||||||||
Commercial real estate |
1,545,597 |
57,011 |
4.88 |
1,440,884 |
55,043 |
5.05 |
||||||||||||||
Home equity line of credit |
923,291 |
32,219 |
4.67 |
948,370 |
32,918 |
4.64 |
||||||||||||||
Residential land |
13,954 |
880 |
8.41 |
16,832 |
961 |
7.61 |
||||||||||||||
Commercial construction |
192,579 |
9,635 |
6.63 |
201,869 |
10,713 |
7.03 |
||||||||||||||
Commercial & industrial |
625,870 |
26,720 |
5.68 |
653,187 |
28,743 |
5.85 |
||||||||||||||
Consumer |
114,032 |
12,417 |
14.56 |
204,813 |
14,776 |
9.64 |
||||||||||||||
Total loans(1)(2) |
6,163,089 |
228,138 |
4.93 |
6,091,062 |
225,071 |
4.92 |
||||||||||||||
Total interest-earning assets(3) |
8,428,677 |
268,717 |
4.24 |
% |
8,499,236 |
265,357 |
4.15 |
|||||||||||||
Allowance for credit losses |
(59,716 |
) |
(63,452 |
) |
||||||||||||||||
Noninterest-earning assets |
615,830 |
547,742 |
||||||||||||||||||
Total assets |
$ |
8,984,791 |
$ |
8,983,526 |
||||||||||||||||
Liabilities and stockholders' equity |
||||||||||||||||||||
Interest-bearing deposits |
||||||||||||||||||||
Savings |
$ |
2,811,817 |
$ |
11,480 |
0.55 |
% |
$ |
2,722,451 |
$ |
9,623 |
0.47 |
% |
||||||||
Interest-bearing checking |
1,624,212 |
9,627 |
0.79 |
1,474,845 |
8,339 |
0.76 |
||||||||||||||
Money market |
557,884 |
10,136 |
2.43 |
514,662 |
12,065 |
3.13 |
||||||||||||||
Time certificates |
631,658 |
10,557 |
2.23 |
825,398 |
18,538 |
3.00 |
||||||||||||||
Total interest-bearing deposits |
5,625,571 |
41,800 |
0.99 |
5,537,356 |
48,565 |
1.17 |
||||||||||||||
Advances from Federal Home Loan Bank |
4,751 |
143 |
3.96 |
184,179 |
6,690 |
4.79 |
||||||||||||||
Federal funds purchased |
7 |
— |
3.75 |
4 |
— |
4.50 |
||||||||||||||
Total interest-bearing liabilities |
5,630,329 |
41,943 |
1.00 |
% |
5,721,539 |
55,255 |
1.29 |
% |
||||||||||||
Noninterest-bearing liabilities |
||||||||||||||||||||
Deposits |
2,502,619 |
2,474,764 |
||||||||||||||||||
Other |
166,551 |
190,997 |
||||||||||||||||||
Stockholders' equity |
685,292 |
596,226 |
||||||||||||||||||
Total liabilities and stockholders' equity |
$ |
8,984,791 |
$ |
8,983,526 |
||||||||||||||||
Net interest income |
$ |
226,774 |
$ |
210,102 |
||||||||||||||||
Net interest margin (%)(4) |
3.58 |
% |
3.29 |
% |
||||||||||||||||
Supplemental Information |
||||||||||||||||||||
Total deposits including non-interest bearing |
$ |
8,128,190 |
0.69 |
% |
$ |
8,012,120 |
0.81 |
% |
||||||||||||
(1) Includes loans held for sale, at lower of cost or fair value, of $2.6 million and $9.5 million for the nine months ended September 30, 2026 and 2025, respectively. |
||||||||||||||||||||
(2) Includes recognition of net deferred loan fees of $1.4 million and $1.7 million for the nine months ended September 30, 2026 and 2025, respectively, together with interest accrued prior to suspension of interest accrual on nonaccrual loans. Includes nonaccrual loans. |
||||||||||||||||||||
(3) Interest income and yield are expressed on a taxable-equivalent basis. Taxable-equivalent basis adjustments were $0.9 million and $1.0 million for the nine months ended September 30, 2026 and 2025, respectively. |
||||||||||||||||||||
(4) Annualized net interest income and expense are based on the day count convention at the interest-earning asset or interest-bearing liability level and is divided by average interest-earning assets. |
||||||||||||||||||||
(5) Average yields and costs are presented on an annualized basis. |
||||||||||||||||||||
American Savings Bank, N.A. |
||||||||||||
Analysis of Change in Net Interest Income |
Table 4E |
|||||||||||
Amounts in thousands; unaudited |
Nine Months Ended September 30, 2026 |
|||||||||||
Compared to September 30, 2025 |
||||||||||||
Rate |
Volume |
Total |
||||||||||
Change in interest income(1) |
||||||||||||
Interest-earning deposits |
$ |
(1,321 |
) |
$ |
(4,713 |
) |
$ |
(6,034 |
) |
|||
FHLB and FRB stock |
(252 |
) |
142 |
(110 |
) |
|||||||
Investment securities |
||||||||||||
Taxable |
6,248 |
294 |
6,542 |
|||||||||
Non-taxable |
(71 |
) |
(34 |
) |
(105 |
) |
||||||
Total investment securities |
6,177 |
260 |
6,437 |
|||||||||
Loans |
||||||||||||
Residential mortgage(2) |
3,424 |
3,915 |
7,339 |
|||||||||
Commercial real estate |
(1,888 |
) |
3,856 |
1,968 |
||||||||
Home equity line of credit |
206 |
(905 |
) |
(699 |
) |
|||||||
Residential land |
95 |
(176 |
) |
(81 |
) |
|||||||
Commercial construction |
(597 |
) |
(481 |
) |
(1,078 |
) |
||||||
Commercial & industrial |
(830 |
) |
(1,193 |
) |
(2,023 |
) |
||||||
Consumer |
(700 |
) |
(1,659 |
) |
(2,359 |
) |
||||||
Total loans |
(290 |
) |
3,357 |
3,067 |
||||||||
Total change in interest income |
$ |
4,314 |
$ |
(954 |
) |
$ |
3,360 |
|||||
Change in interest expense |
||||||||||||
Interest-bearing deposits |
||||||||||||
Savings |
$ |
(1,556 |
) |
$ |
(301 |
) |
$ |
(1,857 |
) |
|||
Interest-bearing checking |
(362 |
) |
(926 |
) |
(1,288 |
) |
||||||
Money market |
2,874 |
(945 |
) |
1,929 |
||||||||
Time certificates |
4,200 |
3,781 |
7,981 |
|||||||||
Total interest-bearing deposits |
5,156 |
1,609 |
6,765 |
|||||||||
Other borrowings |
||||||||||||
Advances from Federal Home Loan Bank |
989 |
5,558 |
6,547 |
|||||||||
Total change in interest expense |
6,145 |
7,167 |
13,312 |
|||||||||
Change in net interest income |
$ |
10,459 |
$ |
6,213 |
$ |
16,672 |
||||||
(1) The taxable-equivalent basis adjustments were not material. |
||||||||||||
(2) Includes residential construction loan interest income. |
||||||||||||
American Savings Bank, N.A. |
||||||||||||||||||||
Loans Receivable Held for Investment |
Table 5 |
|||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||
Amounts in thousands; unaudited |
2026 |
2026 |
2026 |
2025 |
2025 |
|||||||||||||||
Real estate loans: |
||||||||||||||||||||
Residential mortgage |
$ |
2,750,382 |
$ |
2,745,794 |
$ |
2,726,230 |
$ |
2,739,266 |
$ |
2,664,847 |
||||||||||
Commercial real estate |
1,569,377 |
1,586,748 |
1,555,263 |
1,484,535 |
1,463,763 |
|||||||||||||||
Home equity line of credit |
905,074 |
915,405 |
924,051 |
933,990 |
945,642 |
|||||||||||||||
Residential land |
13,170 |
14,579 |
13,531 |
14,609 |
16,017 |
|||||||||||||||
Commercial construction |
211,155 |
183,325 |
181,599 |
195,600 |
221,916 |
|||||||||||||||
Residential construction |
18,547 |
17,981 |
17,457 |
17,312 |
14,790 |
|||||||||||||||
Total real estate loans |
5,467,705 |
5,463,832 |
5,418,131 |
5,385,312 |
5,326,975 |
|||||||||||||||
Commercial & industrial |
642,824 |
661,964 |
625,579 |
591,316 |
654,865 |
|||||||||||||||
Consumer |
113,578 |
121,811 |
113,079 |
115,742 |
117,125 |
|||||||||||||||
Total loans |
6,224,107 |
6,247,607 |
6,156,789 |
6,092,370 |
6,098,965 |
|||||||||||||||
Deferred loan fees and discounts |
(9,393 |
) |
(9,134 |
) |
(9,028 |
) |
(9,123 |
) |
(8,429 |
) |
||||||||||
Total loans, net |
$ |
6,214,714 |
$ |
6,238,473 |
$ |
6,147,761 |
$ |
6,083,247 |
$ |
6,090,536 |
||||||||||
Deposit Liabilities by Type |
Table 6 |
||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
|||||||||||
Amounts in thousands; unaudited |
2026 |
2026 |
2026 |
2025 |
2025 |
||||||||||
Core deposits |
|||||||||||||||
Noninterest-bearing checking |
$ |
2,533,312 |
$ |
2,524,356 |
$ |
2,523,695 |
$ |
2,498,000 |
$ |
2,454,299 |
|||||
Interest-bearing checking |
1,595,557 |
1,682,538 |
1,664,709 |
1,664,668 |
1,486,734 |
||||||||||
Savings |
2,824,243 |
2,817,266 |
2,801,745 |
2,775,842 |
2,757,629 |
||||||||||
Money market |
529,441 |
550,532 |
554,843 |
523,870 |
533,623 |
||||||||||
Total core deposits |
7,482,553 |
7,574,692 |
7,544,992 |
7,462,380 |
7,232,285 |
||||||||||
Time certificates |
571,372 |
616,796 |
654,822 |
674,642 |
713,847 |
||||||||||
Total deposit liabilities |
$ |
8,053,925 |
$ |
8,191,488 |
$ |
8,199,814 |
$ |
8,137,022 |
$ |
7,946,132 |
|||||
American Savings Bank, N.A. |
|||||||||||||||
Loans Past Due and Nonaccrual Loans |
Table 7 |
||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
|||||||||||
Amounts in thousands; unaudited |
2026 |
2026 |
2026 |
2025 |
2025 |
||||||||||
Loans past due |
|||||||||||||||
Residential mortgage |
$ |
11,945 |
$ |
9,954 |
$ |
7,864 |
$ |
14,623 |
$ |
8,560 |
|||||
Commercial real estate |
— |
— |
— |
110 |
— |
||||||||||
Home equity line of credit |
5,206 |
5,019 |
4,971 |
5,564 |
3,838 |
||||||||||
Residential land |
— |
— |
— |
— |
— |
||||||||||
Commercial construction |
4,145 |
25,000 |
— |
— |
— |
||||||||||
Residential construction |
— |
— |
— |
— |
— |
||||||||||
Commercial & Industrial |
611 |
353 |
95 |
94 |
282 |
||||||||||
Consumer |
1,998 |
1,756 |
2,135 |
2,343 |
2,018 |
||||||||||
Total loans past due |
$ |
23,905 |
$ |
42,082 |
$ |
15,065 |
$ |
22,734 |
$ |
14,698 |
|||||
Loans past due 90 days or more and accruing |
|||||||||||||||
Residential mortgage |
$ |
5,757 |
$ |
3,506 |
$ |
3,351 |
$ |
2,481 |
$ |
2,964 |
|||||
Commercial real estate |
— |
— |
— |
— |
— |
||||||||||
Home equity line of credit |
— |
— |
— |
— |
— |
||||||||||
Residential land |
— |
— |
— |
— |
— |
||||||||||
Commercial construction |
— |
— |
— |
— |
— |
||||||||||
Residential construction |
— |
— |
— |
— |
— |
||||||||||
Commercial & Industrial |
— |
— |
— |
— |
— |
||||||||||
Consumer |
— |
— |
— |
— |
— |
||||||||||
Total loans past due 90 days or more and accruing |
$ |
5,757 |
$ |
3,506 |
$ |
3,351 |
$ |
2,481 |
$ |
2,964 |
|||||
Nonaccrual loans |
|||||||||||||||
Residential mortgage |
$ |
2,309 |
$ |
2,197 |
$ |
2,222 |
$ |
5,418 |
$ |
2,866 |
|||||
Commercial real estate |
— |
— |
— |
— |
— |
||||||||||
Home equity line of credit |
5,080 |
5,170 |
5,287 |
4,643 |
4,357 |
||||||||||
Residential land |
— |
— |
— |
— |
— |
||||||||||
Commercial construction |
4,145 |
— |
— |
14,962 |
— |
||||||||||
Residential construction |
— |
— |
— |
— |
— |
||||||||||
Commercial & Industrial |
143 |
129 |
87 |
120 |
105 |
||||||||||
Consumer |
893 |
915 |
1,107 |
1,107 |
1,194 |
||||||||||
Total nonaccrual loans |
$ |
12,570 |
$ |
8,411 |
$ |
8,703 |
$ |
26,250 |
$ |
8,522 |
|||||
Total loans, net |
$ |
6,214,714 |
$ |
6,238,473 |
$ |
6,147,761 |
$ |
6,083,247 |
$ |
6,090,536 |
|||||
American Savings Bank, N.A. |
||||||||||||||||||||
Reserve for Credit Losses |
Table 8 |
|||||||||||||||||||
(unaudited) |
Three Months Ended |
|||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||
(Dollars in thousands) |
2026 |
2026 |
2026 |
2025 |
2025 |
|||||||||||||||
Balance at beginning of period |
$ |
66,735 |
$ |
63,492 |
$ |
62,757 |
$ |
61,208 |
$ |
70,128 |
||||||||||
Provision (benefit) for credit losses |
739 |
3,298 |
1,049 |
1,903 |
(7,816 |
) |
||||||||||||||
Charge-offs |
||||||||||||||||||||
Residential mortgage |
— |
— |
— |
— |
— |
|||||||||||||||
Commercial real estate |
— |
— |
— |
— |
— |
|||||||||||||||
Home equity line of credit |
— |
— |
— |
15 |
— |
|||||||||||||||
Residential land |
— |
— |
— |
— |
— |
|||||||||||||||
Commercial construction |
2,126 |
— |
— |
— |
— |
|||||||||||||||
Residential construction |
— |
— |
— |
— |
— |
|||||||||||||||
Total real estate charge-offs |
2,126 |
— |
— |
15 |
— |
|||||||||||||||
Commercial & industrial |
178 |
10 |
84 |
177 |
61 |
|||||||||||||||
Consumer |
1,261 |
1,345 |
1,437 |
1,398 |
2,341 |
|||||||||||||||
Total charge-offs |
3,565 |
1,355 |
1,521 |
1,590 |
2,402 |
|||||||||||||||
Recoveries |
||||||||||||||||||||
Residential mortgage |
42 |
18 |
4 |
4 |
4 |
|||||||||||||||
Commercial real estate |
— |
— |
— |
— |
— |
|||||||||||||||
Home equity line of credit |
14 |
120 |
7 |
7 |
22 |
|||||||||||||||
Residential land |
101 |
29 |
1 |
— |
— |
|||||||||||||||
Commercial construction |
— |
— |
— |
— |
— |
|||||||||||||||
Residential construction |
— |
— |
— |
— |
— |
|||||||||||||||
Total real estate recoveries |
157 |
167 |
12 |
11 |
26 |
|||||||||||||||
Commercial & industrial |
621 |
317 |
297 |
370 |
383 |
|||||||||||||||
Consumer |
1,033 |
816 |
898 |
855 |
889 |
|||||||||||||||
Total recoveries |
1,811 |
1,300 |
1,207 |
1,236 |
1,298 |
|||||||||||||||
Net charge-offs |
1,754 |
55 |
314 |
354 |
1,104 |
|||||||||||||||
Balance at end of period |
$ |
65,720 |
$ |
66,735 |
$ |
63,492 |
$ |
62,757 |
$ |
61,208 |
||||||||||
Components: |
||||||||||||||||||||
Allowance for credit losses - loans |
$ |
60,220 |
$ |
61,535 |
$ |
58,292 |
$ |
57,557 |
$ |
56,008 |
||||||||||
Reserve for unfunded commitments |
5,500 |
5,200 |
5,200 |
5,200 |
5,200 |
|||||||||||||||
Total reserve for credit losses |
$ |
65,720 |
$ |
66,735 |
$ |
63,492 |
$ |
62,757 |
$ |
61,208 |
||||||||||
Ratios |
||||||||||||||||||||
Allowance for credit losses / total loans, net |
0.97 |
% |
0.99 |
% |
0.95 |
% |
0.95 |
% |
0.92 |
% |
||||||||||
Net charge-offs (annualized) / average total loans, net |
0.11 |
— |
0.02 |
0.02 |
0.07 |
|||||||||||||||
Statement on Management’s Use of Non-GAAP Financial Measures
To supplement the financial statements prepared and presented in accordance with GAAP, the Bank uses certain non-GAAP financial measures, as described below, to facilitate analysis of financial and business trends and for internal planning and forecasting purposes. We are presenting these non-GAAP financial measures because we believe, when taken collectively, they may be helpful to investors because they provide consistency and comparability with past financial performance by excluding certain items that may not be indicative of our business, results of operations or outlook.
However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As a result, non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for the financial statements presented in accordance with GAAP.
The Bank presents the following non-GAAP financial measures in this document:
- Adjusted noninterest income
- Adjusted noninterest expense
- Adjusted net income and Adjusted diluted earnings per share
- Pre-tax, pre-provision income
- Adjusted return on average assets
- Return on average tangible common equity and Adjusted return on average tangible common equity
- Adjusted Revenue
- Adjusted efficiency ratio
Reconciliations and explanations of each non-GAAP measure are described below. Each of the non-GAAP financial measures presented should be considered in context with GAAP financial results.
Adjusted noninterest income
Adjusted noninterest income is defined as noninterest income excluding loss on sale of investment securities and loss on sale of consumer loans. These adjustments resulted from certain balance sheet repositioning activities during the periods presented that we consider to be outside of the ordinary course of business. We believe this measure allows investors to assess our noninterest income, exclusive of activities unrelated to our ordinary course business activities. A reconciliation of Adjusted noninterest income to the most directly comparable financial measure, Noninterest income, is below.
Amounts in thousands; unaudited |
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
|||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
||||||||||||||||
Noninterest income |
$ |
21,046 |
$ |
23,827 |
$ |
20,103 |
$ |
22,836 |
$ |
2,442 |
$ |
64,976 |
$ |
(110,815 |
) |
|||||||
Loss on sale of investment securities, net |
— |
— |
— |
— |
— |
— |
149,869 |
|||||||||||||||
Loss on sale of consumer loans |
— |
— |
— |
— |
19,918 |
— |
19,918 |
|||||||||||||||
Adjusted noninterest income |
$ |
21,046 |
$ |
23,827 |
$ |
20,103 |
$ |
22,836 |
$ |
22,360 |
$ |
64,976 |
$ |
58,972 |
||||||||
Adjusted noninterest expense
Adjusted noninterest expense is defined as noninterest expense excluding pension plan settlement and IPO professional services and other related expense. The pension plan settlement is related to the termination of the ASB Retirement Plan in the fourth quarter of 2025. We believe this measure allows investors to assess our noninterest expense, exclusive of activities unrelated to our ordinary course business activities. A reconciliation of Adjusted noninterest expense to the most directly comparable financial measure, Noninterest expense, is below.
Amounts in thousands; unaudited |
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
|||||||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
||||||||||||||||||||
Noninterest expense |
$ |
59,008 |
$ |
61,083 |
$ |
56,879 |
$ |
81,040 |
$ |
58,049 |
$ |
176,970 |
$ |
165,816 |
||||||||||||
Pension plan settlement |
— |
— |
717 |
(21,275 |
) |
— |
717 |
— |
||||||||||||||||||
IPO professional services and other related expense |
(870 |
) |
(1,138 |
) |
(1,037 |
) |
— |
— |
(3,045 |
) |
— |
|||||||||||||||
Adjusted noninterest expense |
$ |
58,138 |
$ |
59,945 |
$ |
56,559 |
$ |
59,765 |
$ |
58,049 |
$ |
174,642 |
$ |
165,816 |
||||||||||||
Adjusted net income and Adjusted diluted earnings per share
Adjusted net income is defined as net income, excluding loss on sale of investment securities, loss on sale of consumer loans, pension plan settlement and IPO professional services and other related expense, net of taxes. These adjustments resulted from certain strategic activities during the periods presented that we consider to be outside of the ordinary course of business. A reconciliation of Adjusted net income and Adjusted diluted earnings per share to the most directly comparable financial measure, Net income (loss), is below.
Amounts in thousands, except per share amounts; unaudited |
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
|||||||||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
||||||||||||||||||||||
Net income (loss) |
$ |
28,989 |
$ |
27,175 |
$ |
28,553 |
$ |
11,353 |
$ |
19,961 |
$ |
84,717 |
$ |
(41,547 |
) |
|||||||||||||
Loss on sale of investment securities, net |
— |
— |
— |
— |
— |
— |
149,869 |
|||||||||||||||||||||
Loss on sale of consumer loans |
— |
— |
— |
— |
19,918 |
— |
19,918 |
|||||||||||||||||||||
IPO professional services and other related expense |
870 |
1,138 |
1,037 |
— |
— |
3,045 |
— |
|||||||||||||||||||||
Pension plan settlement |
— |
— |
(717 |
) |
21,275 |
— |
(717 |
) |
— |
|||||||||||||||||||
Release of allowance for credit losses - sale of consumer loans |
— |
— |
— |
— |
(11,500 |
) |
— |
(11,500 |
) |
|||||||||||||||||||
Non-GAAP pre-tax adjustments |
870 |
1,138 |
320 |
21,275 |
8,418 |
2,328 |
158,287 |
|||||||||||||||||||||
Tax effect of Non-GAAP adjustments |
(233 |
) |
(305 |
) |
(86 |
) |
(5,702 |
) |
(2,256 |
) |
(624 |
) |
(42,421 |
) |
||||||||||||||
Adjusted net income |
$ |
29,626 |
$ |
28,008 |
$ |
28,787 |
$ |
26,926 |
$ |
26,123 |
$ |
86,421 |
$ |
74,319 |
||||||||||||||
Diluted earnings per share |
$ |
0.45 |
$ |
0.42 |
$ |
0.44 |
$ |
0.17 |
$ |
0.31 |
$ |
1.30 |
$ |
(0.64 |
) |
|||||||||||||
Per share impact of Non-GAAP adjustments (after-tax) |
0.01 |
0 |
0.01 |
— |
0.24 |
0.09 |
0.03 |
1.78 |
||||||||||||||||||||
Adjusted diluted earnings per share |
$ |
0.46 |
$ |
0.43 |
$ |
0.44 |
$ |
0.41 |
$ |
0.40 |
$ |
1.33 |
$ |
1.14 |
||||||||||||||
Diluted weighted-average common stock outstanding |
$ |
65,006 |
$ |
64,998 |
$ |
64,998 |
$ |
64,998 |
$ |
64,998 |
$ |
65,001 |
$ |
64,998 |
||||||||||||||
Pre-tax, pre-provision income
Pre-tax, pre-provision income is defined as net income, excluding income tax expense (benefit) and provision (benefit) for credit losses. We believe this measure provides investors with useful and comparative information to assess trends in the Bank's core operations reflected in the quarter's results. A reconciliation of Pre-tax, pre-provision income to the most directly comparable financial measure, Net income (loss), is below.
Amounts in thousands; unaudited |
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
||||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
|||||||||||||||||
Net income (loss) |
$ |
28,989 |
$ |
27,175 |
$ |
28,553 |
$ |
11,353 |
$ |
19,961 |
$ |
84,717 |
$ |
(41,547 |
) |
||||||||
Income tax expense (benefit) |
8,680 |
7,488 |
7,866 |
2,560 |
3,958 |
24,034 |
(23,238 |
) |
|||||||||||||||
Provision (benefit) for credit losses |
739 |
3,298 |
1,049 |
1,903 |
(7,816 |
) |
5,086 |
(2,737 |
) |
||||||||||||||
Pre-tax, pre-provision income |
$ |
38,408 |
$ |
37,961 |
$ |
37,468 |
$ |
15,816 |
$ |
16,103 |
$ |
113,837 |
$ |
(67,522 |
) |
||||||||
Return on average assets and Adjusted return on average assets
Return on average total assets is defined as the ratio of annualized net income divided by average assets for the respective period. We believe this ratio measures our ability to generate profits from our assets. Adjusted return on average total assets is defined as the ratio of adjusted net income divided by average assets. We believe this ratio measures our ability to generate profits from our assets, exclusive of the impact of activities unrelated to our ordinary course business activities. A recalculation of Return on average assets and Adjusted return on average assets is below.
Amounts in thousands; unaudited |
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
|||||||||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
||||||||||||||||||||||
Net income (loss) |
$ |
28,989 |
$ |
27,175 |
$ |
28,553 |
$ |
11,353 |
$ |
19,961 |
$ |
84,717 |
$ |
(41,547 |
) |
|||||||||||||
Adjusted net income |
$ |
29,626 |
$ |
28,008 |
$ |
28,787 |
$ |
26,926 |
$ |
26,123 |
$ |
86,421 |
$ |
74,319 |
||||||||||||||
Average assets |
$ |
8,988,897 |
$ |
8,995,938 |
$ |
8,969,324 |
$ |
8,879,842 |
$ |
8,795,986 |
$ |
8,984,791 |
$ |
8,983,526 |
||||||||||||||
Return on average assets |
1.29 |
% |
1.21 |
% |
1.27 |
% |
0.51 |
% |
0.91 |
% |
1.26 |
% |
(0.62 |
)% |
||||||||||||||
Adjusted return on average assets |
1.32 |
% |
1.25 |
% |
1.28 |
% |
1.21 |
% |
1.19 |
% |
1.28 |
% |
1.10 |
% |
||||||||||||||
Return on average tangible common equity and Adjusted return on average tangible common equity
Return on average tangible common equity is defined as the ratio of annualized net income divided by average tangible common equity for the respective period. We believe this ratio measures our ability to generate profits from our tangible common equity. Adjusted return on average tangible common equity is defined as the ratio of adjusted net income divided by average tangible common equity. We believe this ratio measures our ability to generate profits from our tangible common equity, exclusive of the impact of activities unrelated to our ordinary course business activities. A recalculation of Return on average tangible common equity and Adjusted return on average tangible common equity is below. Tangible common equity is calculated as total stockholders' equity less intangible assets and preferred stock. The Bank had no intangible assets and an immaterial amount of preferred stock, therefore tangible common equity is substantially the same as stockholders’ equity.
Amounts in thousands; unaudited |
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
|||||||||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
||||||||||||||||||||||
Net income (loss) |
$ |
28,989 |
$ |
27,175 |
$ |
28,553 |
$ |
11,353 |
$ |
19,961 |
$ |
84,717 |
$ |
(41,547 |
) |
|||||||||||||
Adjusted net income |
$ |
29,626 |
$ |
28,008 |
$ |
28,787 |
$ |
26,926 |
$ |
26,123 |
$ |
86,421 |
$ |
74,319 |
||||||||||||||
Average tangible common equity |
$ |
695,347 |
$ |
684,813 |
$ |
675,483 |
$ |
662,337 |
$ |
632,435 |
$ |
685,287 |
$ |
596,226 |
||||||||||||||
Return on average tangible common equity |
16.68 |
% |
15.87 |
% |
16.91 |
% |
6.86 |
% |
12.62 |
% |
16.48 |
% |
(9.29 |
)% |
||||||||||||||
Adjusted return on average tangible common equity |
17.04 |
% |
16.36 |
% |
17.05 |
% |
16.26 |
% |
16.52 |
% |
16.81 |
% |
16.62 |
% |
||||||||||||||
Revenue and Adjusted Revenue
Revenue is defined as Net interest income plus Noninterest income. We believe this measure allows investors to monitor our ability to generate capital from operations. Adjusted revenue is defined as Net interest income plus Adjusted noninterest income. We believe this measure allows investors to monitor our ability to generate capital from operations, exclusive of the impact of activities unrelated to our ordinary course business activities. A recalculation of Revenue and Adjusted Revenue is below.
Amounts in thousands; unaudited |
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
|||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
||||||||||||||||
Net interest income |
$ |
76,370 |
$ |
75,217 |
$ |
74,244 |
$ |
74,020 |
$ |
71,710 |
$ |
225,831 |
$ |
209,109 |
||||||||
Noninterest income |
21,046 |
23,827 |
20,103 |
22,836 |
2,442 |
64,976 |
(110,815 |
) |
||||||||||||||
Total revenue |
97,416 |
99,044 |
94,347 |
96,856 |
74,152 |
290,807 |
98,294 |
|||||||||||||||
Loss on sale of investment securities, net |
— |
— |
— |
— |
— |
— |
149,869 |
|||||||||||||||
Loss on sale of consumer loans |
— |
— |
— |
— |
19,918 |
— |
19,918 |
|||||||||||||||
Adjusted total revenue |
$ |
97,416 |
$ |
99,044 |
$ |
94,347 |
$ |
96,856 |
$ |
94,070 |
$ |
290,807 |
$ |
268,081 |
||||||||
Efficiency ratio and Adjusted efficiency ratio
Efficiency ratio is defined as the ratio of Noninterest expense to Revenue. We believe this ratio allows investors to measure our operational efficiency. Adjusted efficiency ratio is defined as the Adjusted noninterest expense to Adjusted revenue. We believe this measure allows investors to measure our efficiency, exclusive of the impact of activities unrelated to our ordinary course business activities. A recalculation of Efficiency ratio and Adjusted efficiency ratio is below.
Amounts in thousands; unaudited |
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
|||||||||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
||||||||||||||||||||||
Noninterest expense |
$ |
59,008 |
$ |
61,083 |
$ |
56,879 |
$ |
81,040 |
$ |
58,049 |
$ |
176,970 |
$ |
165,816 |
||||||||||||||
Total revenue |
$ |
97,416 |
$ |
99,044 |
$ |
94,347 |
$ |
96,856 |
$ |
74,152 |
$ |
290,807 |
$ |
98,294 |
||||||||||||||
Efficiency ratio |
60.6 |
% |
61.7 |
% |
60.3 |
% |
83.7 |
% |
78.3 |
% |
60.9 |
% |
168.7 |
% |
||||||||||||||
Adjusted noninterest expense |
$ |
58,138 |
$ |
59,945 |
$ |
56,559 |
$ |
59,765 |
$ |
58,049 |
$ |
174,642 |
$ |
165,816 |
||||||||||||||
Adjusted total revenue |
$ |
97,416 |
$ |
99,044 |
$ |
94,347 |
$ |
96,856 |
$ |
94,070 |
$ |
290,807 |
$ |
268,081 |
||||||||||||||
Adjusted efficiency ratio |
59.7 |
% |
60.5 |
% |
60.0 |
% |
61.7 |
% |
61.7 |
% |
60.1 |
% |
61.9 |
% |
||||||||||||||