SANTA CRUZ, Calif., Oct. 27, 2026 (GLOBE NEWSWIRE) — West Coast Community Bancorp (Nasdaq: WCCB) (“Bancorp” or the “Company”), the parent company of West Coast Community Bank (the “Bank”), announced unaudited net income for the quarter ended September 30, 2026, of $16.7 million, compared to $12.2 million for the second quarter of 2026, representing an increase of 37.7%. Net income was $43.9 million and $36.7 million for the nine months ended September 30, 2026, and 2025, respectively, representing an increase of 19.7%. Diluted earnings per share (“EPS”) for the third quarter of 2026 were $1.59 compared to $1.16 for the second quarter of 2026. Diluted EPS was $4.17 and $3.45 for the nine months ended September 30, 2026, and 2025, respectively.
Earnings for the third quarter of 2026 reflected higher net interest income stemming from growth in all categories of average interest-earning assets, including growth in loans, as well as the recognition of a $920 thousand income tax benefit associated with the Bank’s purchase of renewable energy tax credits at a discount during the third quarter. This income tax benefit increased both basic and diluted EPS by approximately $0.09 during the three and nine months ended September 30, 2026. Earnings for the third quarter also benefited from the absence of $1.8 million of accelerated purchase discount accretion, which was recorded in the second quarter of 2026, and was associated with the redemption of higher-cost subordinated debentures assumed in the merger with 1st Capital Bancorp in 2024 (“sub debt redemption”). The sub debt redemption reduced both basic and diluted EPS by approximately $0.12 during the second quarter as well as for the nine months ended September 30, 2026.
“We delivered record quarterly earnings, marked by higher net interest income driven by solid loan growth – particularly by our San Luis Obispo County team – and overall higher average interest-earning assets funded through healthy deposit growth during the quarter,” said Krista Snelling, Chairman and Chief Executive Officer of West Coast Community Bancorp. “This quarter saw tremendous momentum across the business, including our expansion into Silicon Valley and the Peninsula and our Nasdaq listing. We continue to execute on our strategic priorities and growth initiatives, such as hiring our Private Banking team and opening new branches.”
As previously announced on October 19, 2026, the Bancorp Board of Directors declared a quarterly cash dividend of $0.29 per common share, reflecting a $0.04 per share increase over the previous quarterly dividend. This dividend is payable on or about November 6, 2026, to shareholders of record as of November 2, 2026. “Increasing the dividend reflects the strength of our business, the confidence of our Board in our capacity for future growth and a commitment to rewarding our shareholders,” added Snelling.
Financial Highlights
| As of or for the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||
| Selected Financial Data | |||||||||||||||||||
| Net income | $ | 16,740 | $ | 12,161 | $ | 12,061 | $ | 43,888 | $ | 36,657 | |||||||||
| Net interest margin | 5.18 | % | 4.90 | % | 5.26 | % | 5.06 | % | 5.27 | % | |||||||||
| Taxable equivalent net interest margin (a) | 5.20 | % | 4.92 | % | 5.28 | % | 5.08 | % | 5.29 | % | |||||||||
| Cost of funds (b) | 1.31 | % | 1.59 | % | 1.37 | % | 1.39 | % | 1.37 | % | |||||||||
| Efficiency ratio (c) | 42.31 | % | 46.24 | % | 43.13 | % | 43.97 | % | 44.88 | % | |||||||||
| Return on: | |||||||||||||||||||
| Average assets | 2.21 | % | 1.69 | % | 1.73 | % | 2.01 | % | 1.82 | % | |||||||||
| Average equity | 16.44 | % | 12.32 | % | 13.16 | % | 14.84 | % | 13.89 | % | |||||||||
| Average tangible equity (d) | 20.20 | % | 15.47 | % | 17.05 | % | 18.47 | % | 18.17 | % | |||||||||
| Allowance for credit losses on loans / gross loans | 1.57 | % | 1.55 | % | 1.74 | % | |||||||||||||
| Noninterest-bearing deposits to total deposits | 39.00 | % | 39.74 | % | 43.46 | % | |||||||||||||
| Gross loan-to-deposit ratio | 91.46 | % | 90.04 | % | 87.32 | % | |||||||||||||
| Percent growth in loans | 2.89 | % | 2.35 | % | 0.82 | % | 7.57 | % | 4.01 | % | |||||||||
| Percent growth in deposits | 1.29 | % | 1.96 | % | 7.79 | % | 3.15 | % | 5.44 | % | |||||||||
| Capital Ratios | |||||||||||||||||||
| Tier 1 leverage ratio | 12.07 | % | 12.11 | % | 11.37 | % | |||||||||||||
| Common equity tier 1 risk-based capital ratio | 13.33 | % | 13.22 | % | 12.93 | % | |||||||||||||
| Tier 1 risk-based capital ratio | 13.33 | % | 13.22 | % | 12.93 | % | |||||||||||||
| Total risk-based capital ratio | 14.59 | % | 14.47 | % | 14.65 | % | |||||||||||||
| Tangible common equity ratio (e) | 11.69 | % | 11.67 | % | 10.95 | % | |||||||||||||
| Share and Per Share Data | |||||||||||||||||||
| Basic earnings per share (“EPS”) | $ | 1.61 | $ | 1.17 | $ | 1.15 | $ | 4.23 | $ | 3.49 | |||||||||
| Diluted EPS | $ | 1.59 | $ | 1.16 | $ | 1.14 | $ | 4.17 | $ | 3.45 | |||||||||
| Book value per share | $ | 38.25 | $ | 37.90 | $ | 34.97 | |||||||||||||
| Tangible book value per share (f) | $ | 32.46 | $ | 32.01 | $ | 28.81 | |||||||||||||
| (a) Net interest margin is calculated by dividing annualized taxable equivalent net interest income, a non-GAAP measure, by period average interest-earning assets. Interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the federal statutory rate of 21 percent. Please see “Non-GAAP Financial Measures” below. | |||||||||||||||||||
| (b) Cost of funds is computed by dividing annualized interest expense by the sum of period average deposits and borrowings. | |||||||||||||||||||
| (c) Efficiency ratio, a non-GAAP measure, equals total noninterest expenses divided by the sum of net interest income and noninterest income. Please see “Non-GAAP Financial Measures” below. | |||||||||||||||||||
| (d) Return on average tangible equity, a non-GAAP measure, is calculated by dividing annualized net income (adjusted for the after-tax amortization of intangible assets) by average tangible equity for the period. Tangible common equity is defined in note (f) below. In this release we also may refer to tangible common equity as tangible equity. Please see “Non-GAAP Financial Measures” below. | |||||||||||||||||||
| (e) Tangible common equity ratio, a non-GAAP measure, is calculated by dividing tangible common equity, as defined in note (f) below, by assets less goodwill and other intangible assets. Please see “Non-GAAP Financial Measures” below. | |||||||||||||||||||
| (f) Tangible common equity, a non-GAAP measure, equals total shareholders’ equity less goodwill and other intangible assets. Tangible book value per share, a non-GAAP measure, divides tangible common equity by the number of shares outstanding at the period end. Please see “Non-GAAP Financial Measures” below. | |||||||||||||||||||
- Total loans, net of unaccreted purchase discount and deferred fees and costs, were $2.34 billion at September 30, 2026, compared to $2.27 billion at June 30, 2026, representing an increase of $65.6 million, or 2.9%. Loan growth was most notable in revolving commercial lines, especially in agriculture-related businesses sourced from our San Luis Obispo County team.
- Taxable equivalent net interest margin, a non-GAAP measure, was 5.20% and 4.92% for the quarters ended September 30, 2026, and June 30, 2026, respectively. The quarter-over-quarter increase is largely attributed to the absence of the sub debt redemption that occurred in the second quarter of 2026. Excluding the impact of sub debt redemption, the adjusted taxable equivalent net interest margin, a non-GAAP measure, was 5.19% for the second quarter of 2026. Please see “Non-GAAP Financial Measures” below.
- The cost of funds was 1.31% and 1.59% for the quarters ended September 30, 2026, and June 30, 2026, respectively. The quarter-over-quarter decrease in the cost of funds is attributed to the absence of the sub debt redemption that occurred in the second quarter. Excluding the impact of the sub debt redemption, the adjusted cost of funds, a non-GAAP measure, was approximately 1.29% for the second quarter of 2026. Please see “Non-GAAP Financial Measures” below.
- The efficiency ratio, a non-GAAP measure, was 42.31% and 46.24% for the quarters ended September 30, 2026, and June 30, 2026, respectively. The decrease in the efficiency ratio for the third quarter of 2026 is largely attributed to the absence of $1.8 million in accelerated accretion associated with the sub debt redemption in the second quarter, as well as higher net interest income in the third quarter driven by growth in average interest-earning assets. Excluding the impact of the sub debt redemption, the adjusted efficiency ratio, a non-GAAP measure, was 42.31% and 43.91% for the quarters ended September 30, 2026, and June 30, 2026, respectively. Please see “Non-GAAP Financial Measures” below.
- Return on average assets (“ROAA”) was 2.21% and 1.69% for the quarters ended September 30, 2026, and June 30, 2026, respectively. Excluding the benefit on the purchase of transferable renewable energy tax credits in the third quarter and the impact of accelerated accretion on the sub debt redemption that occurred in the second quarter, adjusted ROAA, a non-GAAP measure, was 2.08% and 1.87% for the quarters ended September 30, 2026, and June 30, 2026, respectively. Please see “Non-GAAP Financial Measures” below.
- Return on average equity (“ROAE”) was 16.44% and 12.32% for the quarters ended September 30, 2026, and June 30, 2026, respectively. ROAE was favorably impacted in the third quarter by the absence of accelerated accretion on the sub debt redemption that occurred in the second quarter and the benefit on the purchase of transferable renewable energy tax credits. Excluding these items, adjusted ROAE, a non-GAAP measure, was 15.53% and 13.62% for the quarters ended September 30, 2026, and June 30, 2026, respectively. Please see “Non-GAAP Financial Measures” below.
- Return on average tangible equity (“ROATE”), a non-GAAP measure, was 20.20% and 15.47% for the quarters ended September 30, 2026, and June 30, 2026, respectively. Excluding the benefit on the purchase of transferable renewable energy tax credits in the third quarter and accelerated accretion on the sub debt redemption that occurred in the second quarter, adjusted ROATE, a non-GAAP measure, was 19.13% and 17.01% for the quarters ended September 30, 2026, and June 30, 2026, respectively. Please see “Non-GAAP Financial Measures” below.
- Total provision for credit losses on loans and unfunded loan commitments was $7 thousand for the third quarter of 2026, compared to a provision for credit losses of $1.5 million for the second quarter. The quarter-over-quarter decrease is largely attributed to the full recovery of a previously substantially charged-off loan in the amount of $1.2 million, favorable changes in economic forecasts and qualitative factors used in the allowance for credit losses (“ACL”) model. These were partially offset by the impact of loan growth and the change in the mix of loans during the quarter as well as an increase in the allowance for certain individually evaluated loans.
- Total assets were $2.98 billion at September 30, 2026, compared to $2.95 billion at June 30, 2026, representing an increase of $38.4 million, or 1.3%, from June 30, 2026. The quarter-over-quarter increase in total assets is largely attributed to a $65.6 million increase in total loans.
- Total deposits were $2.56 billion at September 30, 2026, compared to $2.52 billion at June 30, 2026, representing an increase of $32.5 million, or 1.3%, from June 30, 2026. The increase in deposits during the third quarter was largely driven by the establishment of new client relationships.
- Bancorp’s regulatory capital ratios exceeded applicable minimum capital adequacy requirements, and the Bank continued to meet the regulatory capital thresholds necessary to be categorized as well capitalized under the prompt corrective action framework. Bancorp’s total risk-based capital ratio was 14.59% and 14.47% at September 30, 2026, and June 30, 2026, respectively. The tangible common equity ratio, a non-GAAP measure, was 11.69% and 11.67% at September 30, 2026, and June 30, 2026, respectively. Please see “Non-GAAP Financial Measures” below.
- Tangible book value per share, a non-GAAP measure, was $32.46 and $32.01 at September 30, 2026, and June 30, 2026, respectively. Please also see “Non-GAAP Financial Measures” below.
- Primary liquidity ratio, defined as cash and cash equivalents, deposits held in other banks and unpledged available for sale (“AFS”) securities as a percentage of total assets, was 11.7% and 13.0% at September 30, 2026, and June 30, 2026, respectively.
Net Interest Income and Net Interest Margin
Net interest income was $37.1 million for the third quarter of 2026, representing an increase of $4.0 million, or 12.0%, from $33.1 million for the second quarter of 2026. The quarter-over-quarter increase in net interest income is attributed to growth in average interest-earning assets during the third quarter and the absence of $1.8 million in accelerated accretion associated with the sub debt redemption that occurred in the second quarter. The increase in interest-earning assets is attributed to growth in loan balances during the quarter as well as higher average balances of investment securities and interest-earning cash. These increases were funded in part by higher average deposit balances during the quarter.
The taxable equivalent net interest margin, a non-GAAP measure, was 5.20% for the third quarter of 2026, compared to 4.92% for the second quarter, or 5.19%, on an adjusted basis when excluding the impact of the sub debt redemption, a non-GAAP measure. The modest quarter-over-quarter increase in the adjusted taxable equivalent net interest margin can be attributed to slightly higher overall yields on average interest-earning assets, including a seven-basis-point increase in the average yield on loans during the third quarter. This was partially offset by a slight increase in the adjusted cost of funds, a non-GAAP measure, during the third quarter that can be attributed to growth in money market deposits, coupled with slightly higher overall rates on deposits during the third quarter. The cost of funds for the third quarter of 2026 was 1.31%, compared to 1.59% for the second quarter, or 1.29% on an adjusted basis when excluding the impact of the sub debt redemption in the second quarter, a non-GAAP measure. Please see “Non-GAAP Financial Measures” below.
The following tables compare interest income, average interest-earning assets, interest expense, average interest-bearing liabilities, net interest income, net interest margin and cost of funds for each period presented:
| For the Three Months Ended | ||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||
| Average Balance |
Interest Income / Expense |
Avg Yield / Cost |
Average Balance |
Interest Income / Expense |
Avg Yield / Cost |
Average Balance |
Interest Income / Expense |
Avg Yield / Cost |
||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||
| Interest-earning cash | $ | 149,017 | $ | 1,386 | 3.69 | % | $ | 98,211 | $ | 893 | 3.65 | % | $ | 116,056 | $ | 1,284 | 4.39 | % | ||||||||
| Investment securities (1) | 394,507 | 3,797 | 3.82 | % | 382,863 | 3,530 | 3.70 | % | 385,235 | 3,374 | 3.47 | % | ||||||||||||||
| Loans (1) (2) | 2,300,973 | 40,659 | 7.01 | % | 2,233,133 | 38,631 | 6.94 | % | 2,109,593 | 38,356 | 7.21 | % | ||||||||||||||
| Total interest-earning assets (1) | 2,844,497 | 45,842 | 6.39 | % | 2,714,207 | 43,054 | 6.36 | % | 2,610,884 | 43,014 | 6.54 | % | ||||||||||||||
| Noninterest-earning assets | 167,307 | 165,372 | 161,773 | |||||||||||||||||||||||
| Total assets | $ | 3,011,804 | $ | 2,879,579 | $ | 2,772,657 | ||||||||||||||||||||
| LIABILITIES | ||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 243,538 | 606 | 0.99 | % | $ | 247,226 | 571 | 0.93 | % | $ | 248,684 | 665 | 1.06 | % | |||||||||||
| Money market deposits | 1,030,064 | 6,762 | 2.60 | % | 945,898 | 6,043 | 2.56 | % | 785,520 | 5,787 | 2.92 | % | ||||||||||||||
| Savings deposits | 170,096 | 365 | 0.85 | % | 160,143 | 306 | 0.77 | % | 181,256 | 441 | 0.97 | % | ||||||||||||||
| Time certificates of deposits | 136,962 | 819 | 2.37 | % | 139,526 | 844 | 2.43 | % | 152,992 | 1,125 | 2.92 | % | ||||||||||||||
| Subordinated debt | — | — | — | % | 7,794 | 1,991 | 102.46 | % | 11,052 | 229 | 8.22 | % | ||||||||||||||
| Total interest-bearing liabilities | 1,580,660 | 8,552 | 2.15 | % | 1,500,587 | 9,755 | 2.61 | % | 1,379,504 | 8,247 | 2.37 | % | ||||||||||||||
| Noninterest-bearing deposits | 999,936 | 959,162 | 1,008,555 | |||||||||||||||||||||||
| Noninterest-bearing liabilities | 27,110 | 23,876 | 20,913 | |||||||||||||||||||||||
| Total liabilities | 2,607,706 | 2,483,625 | 2,408,972 | |||||||||||||||||||||||
| EQUITY | 404,098 | 395,954 | 363,685 | |||||||||||||||||||||||
| Total liabilities and equity | $ | 3,011,804 | $ | 2,879,579 | $ | 2,772,657 | ||||||||||||||||||||
| Taxable equivalent net interest income and margin (1) | $ | 37,290 | 5.20 | % | $ | 33,299 | 4.92 | % | $ | 34,767 | 5.28 | % | ||||||||||||||
| GAAP net interest income and margin | $ | 37,110 | 5.18 | % | $ | 33,138 | 4.90 | % | $ | 34,634 | 5.26 | % | ||||||||||||||
| Cost of funds | 1.31 | % | 1.59 | % | 1.37 | % | ||||||||||||||||||||
| (1) Interest income on investment securities, interest income on loans, net interest income and net interest margin are presented here on a taxable equivalent basis, using the statutory federal income tax rate of 21 percent, and are non-GAAP financial measures. Please see “Non-GAAP Financial Measures” below. | ||||||||||||||||||||||||||
| (2) Average balances on loans outstanding include nonaccrual loans, unamortized net deferred loan fees/costs and unaccreted purchase discount on acquired loans. The amortization of net loan origination fees and accretion of purchase discount on acquired loans are included in interest income on loans. | ||||||||||||||||||||||||||
| For the Nine Months Ended | ||||||||||||||||||
| September 30, 2026 | September 30, 2025 | |||||||||||||||||
| Average Balance |
Interest Income / Expense |
Avg Yield / Cost |
Average Balance |
Interest Income / Expense |
Avg Yield / Cost |
|||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| ASSETS | ||||||||||||||||||
| Interest-earning cash | $ | 132,851 | $ | 3,646 | 3.67 | % | $ | 52,920 | $ | 1,734 | 4.38 | % | ||||||
| Investment securities (1) | 388,635 | 10,802 | 3.72 | % | 381,978 | 9,819 | 3.44 | % | ||||||||||
| Loans (1) (2) | 2,237,480 | 116,423 | 6.96 | % | 2,096,800 | 112,354 | 7.16 | % | ||||||||||
| Total interest-earning assets (1) | 2,758,966 | 130,871 | 6.34 | % | 2,531,698 | 123,907 | 6.54 | % | ||||||||||
| Noninterest-earning assets | 162,760 | 162,157 | ||||||||||||||||
| Total assets | $ | 2,921,726 | $ | 2,693,855 | ||||||||||||||
| LIABILITIES | ||||||||||||||||||
| Interest-bearing demand deposits | $ | 247,187 | 1,750 | 0.95 | % | $ | 251,187 | 1,951 | 1.04 | % | ||||||||
| Money market deposits | 967,283 | 18,549 | 2.56 | % | 736,528 | 15,660 | 2.84 | % | ||||||||||
| Savings deposits | 166,115 | 1,017 | 0.82 | % | 174,706 | 1,127 | 0.86 | % | ||||||||||
| Time certificates of deposits | 140,819 | 2,590 | 2.46 | % | 159,616 | 3,699 | 3.10 | % | ||||||||||
| Short-term borrowings | — | — | — | % | 12,317 | 412 | 4.47 | % | ||||||||||
| Subordinated debt | 5,175 | 2,155 | 55.68 | % | 11,293 | 860 | 10.18 | % | ||||||||||
| Total interest-bearing liabilities | 1,526,579 | 26,061 | 2.28 | % | 1,345,647 | 23,709 | 2.36 | % | ||||||||||
| Noninterest-bearing deposits | 975,278 | 972,525 | ||||||||||||||||
| Noninterest-bearing liabilities | 24,580 | 22,776 | ||||||||||||||||
| Total liabilities | 2,526,437 | 2,340,948 | ||||||||||||||||
| EQUITY | 395,289 | 352,907 | ||||||||||||||||
| Total liabilities and equity | $ | 2,921,726 | $ | 2,693,855 | ||||||||||||||
| Taxable equivalent net interest income and margin (1) | $ | 104,810 | 5.08 | % | $ | 100,198 | 5.29 | % | ||||||||||
| GAAP net interest income | $ | 104,330 | 5.06 | % | $ | 99,786 | 5.27 | % | ||||||||||
| Cost of funds | 1.39 | % | 1.37 | % | ||||||||||||||
| (1) Interest income on investment securities, interest income on loans, net interest income and net interest margin are presented here on a taxable equivalent basis, using the statutory federal income tax rate of 21 percent, and are non-GAAP financial measures. Please see “Non-GAAP Financial Measures” below. | ||||||||||||||||||
| (2) Average balances on loans outstanding include nonaccrual loans, unamortized net deferred loan fees/costs and unaccreted purchase discount on acquired loans. The amortization of net loan origination fees and accretion of purchase discount on acquired loans are included in interest income on loans. | ||||||||||||||||||
Noninterest Income
Noninterest income for the third quarter of 2026 was $1.3 million, compared to $1.2 million for the second quarter of 2026. The quarter-over-quarter increase is largely attributed to a $153 thousand special dividend that was received on our holdings of FHLB of San Francisco stock during the third quarter.
Noninterest Expense
Noninterest expense for the third quarter of 2026 was $16.3 million, compared to $15.9 million for the second quarter of 2026. The quarter-over-quarter increase is largely attributed to increases in data and item processing costs, professional fees and various other miscellaneous expenses, partially offset by a decrease in salaries and employee benefits. The increase in data and item processing costs during the third quarter is primarily associated with the absence of one-time credits received from our core system processor that were utilized in the second quarter. The increase in professional fees can be attributed to expenses incurred related to Bancorp becoming an SEC registrant and a Nasdaq-listed company in the third quarter, as well as various other expenses associated with regular third-party credit reviews and other consulting fees. The decline in salaries and employee benefits during the quarter was primarily associated with the absence of expense associated with annual director stock grants that occurred in the second quarter, as well as increased compensation deferrals attributed to successful loan originations during the third quarter.
Investment Portfolio
Securities issued by U.S. government-sponsored agencies, U.S. Treasury bonds and Small Business Administration (“SBA”) securities accounted for 52%, 26% and 1%, respectively, of the investment portfolio as of September 30, 2026. These securities carry explicit or implicit credit guarantees from the U.S. government and thus present minimal credit or liquidity risk. Municipal bonds, corporate bonds and private-label collateralized mortgage obligations/asset-backed instruments represent 17%, 2% and 2% of the carrying value of the portfolio, respectively, as of September 30, 2026.
The investment portfolio totaled $377.9 million at September 30, 2026, compared to $388.1 million at June 30, 2026. The decrease in the investment portfolio from June 30, 2026, was primarily due to an increase in unrealized losses on AFS securities of $14.8 million, stemming from a rise in intermediate-term interest rates during the period, and maturities, paydowns and sales during the third quarter totaling $16.0 million, partially offset by purchases of U.S. Treasury securities, totaling $19.9 million. The investment portfolio had an effective duration of 3.8 years as of September 30, 2026, and June 30, 2026.
Net unrealized losses on AFS securities were $23.8 million, or $16.8 million after-tax, at September 30, 2026, compared to $9.0 million, or $6.3 million after-tax, at June 30, 2026.
Loans and Asset Quality
Total loans, net of unaccreted purchase discount and deferred fees and costs, increased $65.6 million, or 2.9%, from June 30, 2026. Loan growth during the third quarter of 2026 was largely attributed to increases in revolving commercial lines, which grew by $66.4 million during the quarter. This increase was primarily attributed to agriculture-related lending by the Bank’s San Luis Obispo County team. New loan commitments originated during the third quarter were $199.1 million, driven by $86.8 million in new commercial and industrial (“C&I”) commitments and $57.9 million in new commercial real estate (“CRE”) loan commitments.
Nonaccrual loans of $11.9 million accounted for 0.51% of total loans at September 30, 2026, compared to $11.4 million, or 0.50%, of total loans at June 30, 2026. At September 30, 2026, nonaccrual loans included a $5.8 million hotel relationship, consisting of two loans, of which one has an SBA guarantee of approximately $3.7 million. Other nonaccrual loans at September 30, 2026, consisted primarily of SBA-related credits totaling $4.7 million that contained SBA guarantees of approximately $4.0 million, and two CRE loans totaling approximately $1.4 million. At September 30, 2026, government guarantees of $7.8 million reduced net credit exposure on nonaccrual loans to approximately $4.1 million.
Accruing loans past due 30-89 days totaled $2.3 million at September 30, 2026, an increase from $1.2 million at June 30, 2026. The balance of accruing loans past due 30-89 days primarily reflects a $1.9 million substandard CRE loan that is secured by a mixed-use property. There were no loans more than 90 days past due still accruing as of September 30, 2026, or June 30, 2026.
The ACL on loans was $36.6 million at September 30, 2026, or 1.57%, of total loans, compared to $35.1 million at June 30, 2026, or 1.55%, of total loans. The increase in the ACL during the third quarter is attributed to several factors including organic loan growth and changes in portfolio mix which increased the ACL by approximately $1.5 million, and a $1.2 million increase in the ACL for certain individually evaluated loans. These increases were partially offset by lower pooled reserve rates reflecting improvements in the economic forecast as well as improvements in certain qualitative factors used in the ACL model. The provision for credit losses on loans was $275 thousand for the third quarter of 2026, compared to $1.4 million in the second quarter of 2026. The quarter-over-quarter decrease in the provision is largely attributed to the factors just discussed in addition to the full recovery, upon payoff, of a previously substantially charged-off loan in the amount of $1.2 million that occurred in the third quarter.
The Bank recorded net recoveries for the third quarter of 2026 of $1.2 million. Net recoveries for the quarter were largely attributed to the full recovery previously discussed.
The ACL for unfunded commitments, recorded in other liabilities, was $2.6 million, or 0.38% of unfunded credit commitments at September 30, 2026, compared to $2.9 million, or 0.42%, at June 30, 2026. The decrease in the ACL for unfunded commitments reflected, in part, higher utilization of commercial lines, which reduced unfunded commitments, and lower reserve rates consistent with improvements in the qualitative factors used to determine the ACL for funded loans. Total unfunded commitments decreased by approximately $6.3 million during the third quarter to $675.0 million as of September 30, 2026.
The following table summarizes the composition of the Bank’s loan portfolio as of the dates indicated:
| As of | Change % vs. | ||||||||||||||||
| September 30, | June 30, | September 30, | June 30, | September 30, | |||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| SBA and business and industry loans | $ | 162,956 | $ | 168,665 | $ | 177,493 | (3.4 | )% | (8.2 | )% | |||||||
| Commercial term loans | 129,720 | 128,542 | 123,755 | 0.9 | % | 4.8 | % | ||||||||||
| Revolving commercial lines | 282,692 | 216,275 | 168,864 | 30.7 | % | 67.4 | % | ||||||||||
| Asset-based lines of credit | 54,343 | 49,926 | 45,117 | 8.8 | % | 20.4 | % | ||||||||||
| Construction loans | 254,825 | 262,513 | 246,774 | (2.9 | )% | 3.3 | % | ||||||||||
| Commercial real estate loans | 1,420,402 | 1,413,772 | 1,345,230 | 0.5 | % | 5.6 | % | ||||||||||
| Home equity lines of credit | 37,246 | 36,956 | 37,239 | 0.8 | % | — | % | ||||||||||
| Consumer and other loans | 6,263 | 8,198 | 3,596 | (23.6 | )% | 74.2 | % | ||||||||||
| Deferred loan expenses, net of fees | 2,610 | 2,281 | 2,160 | 14.4 | % | 20.8 | % | ||||||||||
| Total loans, net of deferred fees and costs | 2,351,057 | 2,287,128 | 2,150,228 | 2.8 | % | 9.3 | % | ||||||||||
| Purchase discount on acquired loans | (14,059 | ) | (15,722 | ) | (23,050 | ) | (10.6 | )% | (39.0 | )% | |||||||
| Total loans, net of unaccreted purchase discount | $ | 2,336,998 | $ | 2,271,406 | $ | 2,127,178 | 2.9 | % | 9.9 | % | |||||||
The following table summarizes delinquent and nonperforming loans, net of deferred fees and costs, and purchase discounts as of the dates indicated:
| As of or for the Periods Ended | |||||||||
| September 30, | June 30, | September 30, | |||||||
| 2026 | 2026 | 2025 | |||||||
| (Dollars in thousands) | |||||||||
| Loans past due 30-89 days | $ | 2,318 | $ | 1,244 | $ | 8,418 | |||
| Loans past due 30-89 days, net of government guaranteed amounts | $ | 2,318 | $ | 1,244 | $ | 4,693 | |||
| Delinquent loans (past due 90+ days still accruing) | $ | — | $ | — | $ | — | |||
| Nonaccrual loans | 11,881 | 11,442 | 14,355 | ||||||
| Other real estate owned | 6,874 | 6,874 | — | ||||||
| Nonperforming assets | $ | 18,755 | $ | 18,316 | $ | 14,355 | |||
| Nonperforming assets, net of government guaranteed amounts | $ | 11,007 | $ | 10,002 | $ | 12,495 | |||
| Net loan (recoveries) charge-offs QTD | $ | (1,214 | ) | $ | 944 | $ | — | ||
| Net loan charge-offs YTD | $ | 3,098 | $ | 4,312 | $ | 27 | |||
Deposits
Deposits totaled $2.6 billion at September 30, 2026, an increase of $32.5 million, or 1.3%, compared to June 30, 2026. The increase in deposits during the third quarter of 2026 was driven by the establishment of a few large new-client relationships that brought in money market deposits during the quarter, as well as seasonal deposit inflows. Noninterest-bearing deposits to total deposits was 39.0% and 39.7% at September 30, 2026, and June 30, 2026, respectively.
The 10 largest deposit relationships, excluding fully collateralized government agency deposits, represent approximately 15.0% of total deposits as of September 30, 2026. The Bank generally aggregates related depositors with entities and individuals that have the same deposit account signers as one deposit relationship.
The following table summarizes the composition of the Bank’s deposits as of the dates indicated:
| As of | Change % vs. | |||||||||||||
| September 30, | June 30, | September 30, | June 30, | September 30, | ||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||
| (Dollars in thousands) | ||||||||||||||
| Noninterest-bearing demand | $ | 996,593 | $ | 1,002,579 | $ | 1,058,787 | (0.6 | )% | (5.9 | )% | ||||
| Interest-bearing demand | 235,923 | 230,837 | 235,025 | 2.2 | % | 0.4 | % | |||||||
| Money markets | 1,023,335 | 984,500 | 810,311 | 3.9 | % | 26.3 | % | |||||||
| Savings | 166,787 | 166,673 | 181,282 | 0.1 | % | (8.0 | )% | |||||||
| Time certificates of deposit | 132,547 | 138,104 | 150,692 | (4.0 | )% | (12.0 | )% | |||||||
| Total deposits | $ | 2,555,185 | $ | 2,522,693 | $ | 2,436,097 | 1.3 | % | 4.9 | % | ||||
| Deposits – personal | $ | 776,887 | $ | 781,810 | $ | 779,312 | (0.6 | )% | (0.3 | )% | ||||
| Deposits – business | 1,778,298 | 1,740,883 | 1,656,785 | 2.1 | % | 7.3 | % | |||||||
| Total deposits | $ | 2,555,185 | $ | 2,522,693 | $ | 2,436,097 | 1.3 | % | 4.9 | % | ||||
Liquidity Position
The following table summarizes the Bank’s liquidity for each period reported:
| As of | ||||||||
| September 30, | June 30, | September 30, | ||||||
| 2026 | 2026 | 2025 | ||||||
| (Dollars in thousands) | ||||||||
| Cash and cash equivalents | $ | 116,929 | $ | 146,873 | $ | 143,504 | ||
| Interest-earning deposits in other financial institutions | 100 | 100 | 249 | |||||
| Unencumbered AFS securities | 232,614 | 235,993 | 326,183 | |||||
| Total on-balance-sheet liquidity | 349,643 | 382,966 | 469,936 | |||||
| Line of credit from the FHLB of San Francisco – collateralized | 736,073 | 723,750 | 662,537 | |||||
| Line of credit from the FRB of San Francisco – collateralized | 445,177 | 412,909 | 382,095 | |||||
| Lines at correspondent banks – unsecured | 100,000 | 100,000 | 100,000 | |||||
| Total external contingency liquidity capacity | 1,281,250 | 1,236,659 | 1,144,632 | |||||
| Less: short-term borrowings | — | — | — | |||||
| Net available liquidity sources | $ | 1,630,893 | $ | 1,619,625 | $ | 1,614,568 | ||
As of September 30, 2026, net liquidity of $1.63 billion exceeded uninsured and uncollateralized deposits of approximately $1.35 billion, with a coverage ratio of 120%.
Shareholders’ Equity
Total shareholders’ equity was $402.6 million at September 30, 2026, a $4.1 million, or 1.0%, increase compared to June 30, 2026. Tangible common equity, a non-GAAP measure, was $341.6 million at September 30, 2026, a $5.1 million, or 1.5%, increase compared to June 30, 2026. The quarter-over-quarter change in tangible common equity is largely attributed to net income of $16.7 million, activity related to stock-based compensation and the amortization of core deposit intangibles, together totaling $1.5 million, partially offset by an increase in accumulated other comprehensive loss of $10.5 million due to higher unrealized losses on AFS investment securities during the quarter, and dividends declared of $2.6 million. Tangible book value per share, a non-GAAP measure, was $32.46 at September 30, 2026, compared to $32.01 at June 30, 2026. Please see “Non-GAAP Financial Measures” below.
ABOUT WEST COAST COMMUNITY BANCORP AND WEST COAST COMMUNITY BANK
West Coast Community Bancorp is the bank holding company for West Coast Community Bank. Founded in 2004, the Bank is a top-rated, locally operated and full-service community bank headquartered in Santa Cruz, Calif. with branches in Aptos, Capitola, King City, Monterey, Salinas, San Jose, San Luis Obispo, San Mateo, Santa Cruz, Scotts Valley and Watsonville. West Coast Community Bank is distinguished from “big banks” by its relationship-based service, problem-solving focus and direct access to decision makers. The Bank also is an SBA Preferred Lending Partner. As a full-service bank, West Coast Community Bank offers competitive deposit and lending solutions for businesses and individuals; including business loans, lines of credit, commercial real estate financing, construction lending, asset-based lending, agricultural loans, SBA and USDA government guaranteed loans, credit cards, merchant services, remote deposit capture, mobile and online banking, bill payment and treasury management. Additional information regarding the Company’s recent industry recognition, community engagement, and financial performance is included in the accompanying investor presentation and at investors.wccb.com.
Forward-Looking Statements
This release may contain statements that we believe are, or may be considered to be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on our current beliefs, expectations or assumptions regarding the future of the business, future plans and strategies, operational results and other future conditions of the Company. All statements other than statements of historical fact included in this release may constitute forward-looking statements, including statements regarding the prospects of our industry or our prospects, plans, expected operating results, financial position or business strategy. In addition, forward-looking statements generally can be identified by the use of forward-looking words such as “plan,” “expect,” “look forward to,” “budget,” “scheduled,” “estimate,” “forecast,” “continue,” “intend,” “potential,” “anticipate,” “believe,” “should,” “may,” “could,” “would,” “might,” “seek,” “will,” “be taken,” “occur,” “be achieved” or the negative of these terms or variations of them or similar terms. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates (including but not limited to changes in depositor behavior and/or impacts on our core deposit intangible in relation thereto), inflation, government regulations and general economic conditions and competition within the business areas in which the Company and the Company’s clients are conducting their operations, including the impact of proposed or imposed tariffs or other trade restrictions, labor or supply chain issues, health of the real estate market in California, the Company’s ability to effectively execute its business plans, other factors beyond the Company’s control and those risks and uncertainties described in our filings with the Securities and Exchange Commission (“SEC”), which are available on the Investor Relations page of our website at investors.wccb.com and on the SEC’s website at www.sec.gov. Therefore, we caution you not to place undue reliance on any forward-looking statements contained herein, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.
Concurrent with this earnings release, the Company issued presentation slides providing supplemental information intended to be reviewed together with this release. Slides may be viewed online at: investors.wccb.com.
MEDIA CONTACTS
Krista Snelling, Chairman and Chief Executive Officer
Cecilia Situ, Executive Vice President and Chief Financial Officer
investorrelations@wccb.com
Consolidated Balance Sheets (Unaudited)
| As of | |||||||||||
| September 30, | June 30, | September 30, | |||||||||
| 2026 | 2026 | 2025 | |||||||||
| (Dollars in thousands) | |||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 116,929 | $ | 146,873 | $ | 143,504 | |||||
| Interest-earning deposits in other financial institutions | 100 | 100 | 249 | ||||||||
| Investment securities available for sale, net of allowance of credit losses of $0 | 371,517 | 381,745 | 428,007 | ||||||||
| Investment securities held to maturity, net of allowance for credit losses of $0 | 6,365 | 6,383 | 6,570 | ||||||||
| Loans held for investment | 2,336,998 | 2,271,406 | 2,127,178 | ||||||||
| Less: Allowance for credit losses on loans | (36,608 | ) | (35,119 | ) | (37,091 | ) | |||||
| Loans, net of allowance | 2,300,390 | 2,236,287 | 2,090,087 | ||||||||
| Non-marketable equity investments, at cost | 15,370 | 15,370 | 15,355 | ||||||||
| Premises and equipment, net | 10,677 | 10,814 | 10,206 | ||||||||
| Goodwill | 40,054 | 40,054 | 40,054 | ||||||||
| Core deposit intangible asset, net | 20,899 | 21,885 | 24,849 | ||||||||
| Bank-owned life insurance | 30,105 | 29,897 | 28,097 | ||||||||
| Accrued interest receivable and other assets | 71,178 | 55,797 | 51,193 | ||||||||
| Total assets | $ | 2,983,584 | $ | 2,945,205 | $ | 2,838,171 | |||||
| LIABILITIES | |||||||||||
| Deposits | |||||||||||
| Noninterest-bearing | $ | 996,593 | $ | 1,002,579 | $ | 1,058,787 | |||||
| Interest-bearing | 1,558,592 | 1,520,114 | 1,377,310 | ||||||||
| Total deposits | 2,555,185 | 2,522,693 | 2,436,097 | ||||||||
| Subordinated debentures | — | — | 11,092 | ||||||||
| Accrued interest payable and other liabilities | 25,809 | 24,024 | 22,486 | ||||||||
| Total liabilities | 2,580,994 | 2,546,717 | 2,469,675 | ||||||||
| SHAREHOLDERS’ EQUITY | |||||||||||
| Preferred stock, no par value; 10,000,000 shares authorized; no shares issued or outstanding | — | — | — | ||||||||
| Common stock, no par value; 30,000,000 shares authorized; 10,524,552, 10,513,743, and 10,537,167 outstanding as of September 30, 2026, June 30, 2026, and September 30, 2025, respectively | 200,013 | 199,528 | 203,493 | ||||||||
| Retained earnings | 218,780 | 204,667 | 170,992 | ||||||||
| Accumulated other comprehensive loss, net of taxes | (16,203 | ) | (5,707 | ) | (5,989 | ) | |||||
| Total shareholders’ equity | 402,590 | 398,488 | 368,496 | ||||||||
| Total liabilities and shareholders’ equity | $ | 2,983,584 | $ | 2,945,205 | $ | 2,838,171 | |||||
Consolidated Statements of Income (Unaudited)
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||
| Interest Income | |||||||||||||||||||
| Loans, including fees | $ | 40,568 | $ | 38,562 | $ | 38,334 | $ | 116,235 | $ | 112,288 | |||||||||
| Interest-earning deposits in other financial institutions | 1,386 | 893 | 1,284 | 3,646 | 1,734 | ||||||||||||||
| Taxable securities | 3,252 | 2,975 | 2,693 | 9,063 | 7,725 | ||||||||||||||
| Tax-exempt securities | 456 | 463 | 570 | 1,447 | 1,748 | ||||||||||||||
| Total interest income | 45,662 | 42,893 | 42,881 | 130,391 | 123,495 | ||||||||||||||
| Interest Expense | |||||||||||||||||||
| Deposits | 8,552 | 7,764 | 8,018 | 23,906 | 22,437 | ||||||||||||||
| Subordinated debentures | — | 1,991 | 229 | 2,155 | 860 | ||||||||||||||
| FHLB advances and other borrowings | — | — | — | — | 412 | ||||||||||||||
| Total interest expense | 8,552 | 9,755 | 8,247 | 26,061 | 23,709 | ||||||||||||||
| Net interest income before provision for credit losses | 37,110 | 33,138 | 34,634 | 104,330 | 99,786 | ||||||||||||||
| Provision for credit losses on loans | 275 | 1,386 | 3,540 | 1,533 | 5,442 | ||||||||||||||
| (Reversal of) provision for credit losses on unfunded loan commitments | (268 | ) | 128 | (50 | ) | (371 | ) | 50 | |||||||||||
| Net interest income after provision for credit losses | 37,103 | 31,624 | 31,144 | 103,168 | 94,294 | ||||||||||||||
| Noninterest Income | |||||||||||||||||||
| Service charges on deposits | 282 | 246 | 177 | 778 | 515 | ||||||||||||||
| Loan servicing fees | 81 | 101 | 126 | 289 | 394 | ||||||||||||||
| ATM fee income | 269 | 268 | 280 | 794 | 835 | ||||||||||||||
| Earnings on bank-owned life insurance | 208 | 205 | 185 | 613 | 547 | ||||||||||||||
| Dividends on non-marketable equity securities | 309 | 174 | 281 | 1,139 | 856 | ||||||||||||||
| Loss on sale of securities | (34 | ) | (65 | ) | (2 | ) | (2 | ) | (281 | ) | |||||||||
| Gain on sale of loans | — | — | — | 912 | — | ||||||||||||||
| Loss on sale of other assets | (29 | ) | — | — | (26 | ) | — | ||||||||||||
| Other | 217 | 247 | 238 | 692 | 817 | ||||||||||||||
| Total noninterest income | 1,303 | 1,176 | 1,285 | 5,189 | 3,683 | ||||||||||||||
| Noninterest Expense | |||||||||||||||||||
| Salaries and employee benefits | 8,660 | 9,114 | 8,300 | 26,312 | 25,538 | ||||||||||||||
| Occupancy | 910 | 944 | 797 | 2,711 | 2,517 | ||||||||||||||
| Furniture and equipment | 1,063 | 1,108 | 888 | 3,192 | 2,705 | ||||||||||||||
| Marketing, business development and shareholder-related expense | 431 | 352 | 519 | 1,066 | 1,440 | ||||||||||||||
| Data and item processing | 816 | 438 | 698 | 1,736 | 2,069 | ||||||||||||||
| Regulatory assessments, including federal deposit insurance | 394 | 403 | 369 | 1,188 | 1,160 | ||||||||||||||
| Amortization of core deposit intangibles | 986 | 987 | 1,068 | 2,959 | 3,202 | ||||||||||||||
| Professional fees | 779 | 439 | 629 | 2,475 | 1,358 | ||||||||||||||
| Acquisition-related expense | — | — | 150 | — | 497 | ||||||||||||||
| Other | 2,215 | 2,083 | 2,073 | 6,519 | 5,950 | ||||||||||||||
| Total noninterest expense | 16,254 | 15,868 | 15,491 | 48,158 | 46,436 | ||||||||||||||
| Income before income taxes | 22,152 | 16,932 | 16,938 | 60,199 | 51,541 | ||||||||||||||
| Income tax expense | 5,412 | 4,771 | 4,877 | 16,311 | 14,884 | ||||||||||||||
| Net income | $ | 16,740 | $ | 12,161 | $ | 12,061 | $ | 43,888 | $ | 36,657 | |||||||||
| Weighted Average Common Shares Outstanding | |||||||||||||||||||
| Basic | 10,380,906 | 10,369,791 | 10,489,496 | 10,369,257 | 10,505,896 | ||||||||||||||
| Diluted | 10,542,098 | 10,507,662 | 10,601,694 | 10,513,013 | 10,617,773 | ||||||||||||||
| Earnings per share | |||||||||||||||||||
| Basic | $ | 1.61 | $ | 1.17 | $ | 1.15 | $ | 4.23 | $ | 3.49 | |||||||||
| Diluted | $ | 1.59 | $ | 1.16 | $ | 1.14 | $ | 4.17 | $ | 3.45 | |||||||||
Non-GAAP Financial Measures
In addition to presenting the Company’s results of operations in accordance with generally accepted accounting principles (“GAAP”) in the United States of America, certain financial measures discussed herein are non-GAAP financial measures, examples of which include taxable equivalent net interest income, efficiency ratio, tangible common equity ratio and return on average tangible equity. Generally, a non-GAAP measure is a numerical measure of a company’s financial performance, financial position or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. We believe that the non-GAAP financial measures used herein provide helpful additional information about our operating results, performance trends and financial condition. Non-GAAP measures should not be considered a substitute for GAAP results and may not be comparable to similar measures used by other banking companies, among other limitations. Other companies may use the same or similar names for non-GAAP measures but may calculate them differently. As a result, caution should be used when comparing the Company’s non-GAAP measures with those of other companies.
Investors are encouraged to review the reconciliation of non-GAAP financial measures used herein to their most directly comparable GAAP financial measures, which are presented in the tables below.
The following tables present non-GAAP financial measures management believes provide useful information for understanding the operating results of our core business and a better comparison of financial performance. Such measures include taxable equivalent adjustments, adjustments related to the sub debt redemption in the second quarter of 2026, adjustments related to the income tax benefit from the investment in renewable energy tax credits in the third quarter of 2026, tangible common equity and the associated financial measures.
Non-GAAP Financial Measures
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||
| Total Interest Income (taxable equivalent): | |||||||||||||||||
| Total interest income on loans | $ | 40,568 | $ | 38,562 | $ | 38,334 | $ | 116,235 | $ | 112,288 | |||||||
| Add: taxable equivalent adjustment for loans | 91 | 69 | 22 | 188 | 66 | ||||||||||||
| Total interest income on loans (taxable equivalent) | $ | 40,659 | $ | 38,631 | $ | 38,356 | $ | 116,423 | $ | 112,354 | |||||||
| Total interest income on investment securities | $ | 3,708 | $ | 3,438 | $ | 3,263 | $ | 10,510 | $ | 9,473 | |||||||
| Add: taxable equivalent adjustment for investment securities | 89 | 92 | 111 | 292 | 346 | ||||||||||||
| Total interest income on investment securities (taxable equivalent) | $ | 3,797 | $ | 3,530 | $ | 3,374 | $ | 10,802 | $ | 9,819 | |||||||
| Total interest income on interest-earning cash | 1,386 | 893 | 1,284 | 3,646 | 1,734 | ||||||||||||
| Total interest income (taxable equivalent) | $ | 45,842 | $ | 43,054 | $ | 43,014 | $ | 130,871 | $ | 123,907 | |||||||
| Adjusted Interest Expense: | |||||||||||||||||
| Interest expense | $ | 8,552 | $ | 9,755 | $ | 8,247 | $ | 26,061 | $ | 23,709 | |||||||
| Less: accelerated accretion on sub debt redemption | — | (1,824 | ) | — | (1,824 | ) | (160 | ) | |||||||||
| Adjusted interest expense | $ | 8,552 | $ | 7,931 | $ | 8,247 | $ | 24,237 | $ | 23,549 | |||||||
| Net Interest Income (taxable equivalent): | |||||||||||||||||
| Net interest income | $ | 37,110 | $ | 33,138 | $ | 34,634 | $ | 104,330 | $ | 99,786 | |||||||
| Add: total taxable equivalent adjustment | 180 | 161 | 133 | 480 | 412 | ||||||||||||
| Net interest income (taxable equivalent) | $ | 37,290 | $ | 33,299 | $ | 34,767 | $ | 104,810 | $ | 100,198 | |||||||
| Adjusted Net Interest Income: | |||||||||||||||||
| Net interest income | $ | 37,110 | $ | 33,138 | $ | 34,634 | $ | 104,330 | $ | 99,786 | |||||||
| Add: accelerated accretion on sub debt redemption | — | 1,824 | — | 1,824 | 160 | ||||||||||||
| Adjusted net interest income | $ | 37,110 | $ | 34,962 | $ | 34,634 | $ | 106,154 | $ | 99,946 | |||||||
| Adjusted Net Interest Income (taxable equivalent): | |||||||||||||||||
| Net interest income | $ | 37,110 | $ | 33,138 | $ | 34,634 | $ | 104,330 | $ | 99,786 | |||||||
| Add: taxable equivalent adjustment | 180 | 161 | 133 | 480 | 412 | ||||||||||||
| Add: accelerated accretion on sub debt redemption | — | 1,824 | — | 1,824 | 160 | ||||||||||||
| Adjusted net interest income (taxable equivalent) | $ | 37,290 | $ | 35,123 | $ | 34,767 | $ | 106,634 | $ | 100,358 | |||||||
| Average loans | $ | 2,300,973 | $ | 2,233,133 | $ | 2,109,593 | $ | 2,237,480 | $ | 2,096,800 | |||||||
| Average investment securities | $ | 394,507 | $ | 382,863 | $ | 385,235 | $ | 388,635 | $ | 381,978 | |||||||
| Average interest-earning assets | $ | 2,844,497 | $ | 2,714,207 | $ | 2,610,884 | $ | 2,758,966 | $ | 2,531,698 | |||||||
| Average deposits and borrowed funds | $ | 2,580,596 | $ | 2,459,749 | $ | 2,388,059 | $ | 2,501,857 | $ | 2,318,172 | |||||||
| Non-GAAP Financial Measures (Continued) | For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||
| Yield on loans | 6.99 | % | 6.93 | % | 7.21 | % | 6.95 | % | 7.16 | % | |||||||||
| Yield on loans (taxable equivalent) | 7.01 | % | 6.94 | % | 7.21 | % | 6.96 | % | 7.16 | % | |||||||||
| Yield on investments | 3.73 | % | 3.60 | % | 3.36 | % | 3.62 | % | 3.32 | % | |||||||||
| Yield on investments (taxable equivalent) | 3.82 | % | 3.70 | % | 3.47 | % | 3.72 | % | 3.44 | % | |||||||||
| Yield on interest-earning assets | 6.37 | % | 6.34 | % | 6.52 | % | 6.32 | % | 6.52 | % | |||||||||
| Yield on interest-earning assets (taxable equivalent) | 6.39 | % | 6.36 | % | 6.54 | % | 6.34 | % | 6.54 | % | |||||||||
| Net interest margin | 5.18 | % | 4.90 | % | 5.26 | % | 5.06 | % | 5.27 | % | |||||||||
| Net interest margin (taxable equivalent) | 5.20 | % | 4.92 | % | 5.28 | % | 5.08 | % | 5.29 | % | |||||||||
| Adjusted Net interest margin (taxable equivalent) | 5.20 | % | 5.19 | % | 5.28 | % | 5.17 | % | 5.30 | % | |||||||||
| Cost of funds | 1.31 | % | 1.59 | % | 1.37 | % | 1.39 | % | 1.37 | % | |||||||||
| Adjusted cost of funds | 1.31 | % | 1.29 | % | 1.37 | % | 1.30 | % | 1.36 | % | |||||||||
| Adjusted Efficiency Ratio: | |||||||||||||||||||
| Noninterest expense | $ | 16,254 | $ | 15,868 | $ | 15,491 | $ | 48,158 | $ | 46,436 | |||||||||
| Noninterest income | $ | 1,303 | $ | 1,176 | $ | 1,285 | $ | 5,189 | $ | 3,683 | |||||||||
| Net interest income | $ | 37,110 | $ | 33,138 | $ | 34,634 | $ | 104,330 | $ | 99,786 | |||||||||
| Add: accelerated accretion on sub debt redemption | — | 1,824 | — | 1,824 | 160 | ||||||||||||||
| Adjusted net interest income | $ | 37,110 | $ | 34,962 | $ | 34,634 | $ | 106,154 | $ | 99,946 | |||||||||
| Efficiency ratio | 42.31 | % | 46.24 | % | 43.13 | % | 43.97 | % | 44.88 | % | |||||||||
| Adjusted efficiency ratio | 42.31 | % | 43.91 | % | 43.13 | % | 43.25 | % | 44.81 | % | |||||||||
| Adjusted Net Income and EPS: | |||||||||||||||||||
| Net income | $ | 16,740 | $ | 12,161 | $ | 12,061 | $ | 43,888 | $ | 36,657 | |||||||||
| Add: accelerated accretion on sub debt redemption | — | 1,824 | — | 1,824 | 160 | ||||||||||||||
| Less: tax adjustment for accelerated accretion on sub debt redemption (1) | — | (539 | ) | — | (539 | ) | (47 | ) | |||||||||||
| Less: renewable energy investment tax credit benefit | (920 | ) | — | — | (920 | ) | — | ||||||||||||
| Adjusted net income | $ | 15,820 | $ | 13,446 | $ | 12,061 | $ | 44,253 | $ | 36,770 | |||||||||
| Basic weighted average common shares outstanding | 10,380,906 | 10,369,791 | 10,489,496 | 10,369,257 | 10,505,896 | ||||||||||||||
| Diluted weighted average common shares outstanding | 10,542,098 | 10,507,662 | 10,601,694 | 10,513,013 | 10,617,773 | ||||||||||||||
| Basic EPS | $ | 1.61 | $ | 1.17 | $ | 1.15 | $ | 4.23 | $ | 3.49 | |||||||||
| Diluted EPS | $ | 1.59 | $ | 1.16 | $ | 1.14 | $ | 4.17 | $ | 3.45 | |||||||||
| Adjusted basic EPS | $ | 1.52 | $ | 1.29 | $ | 1.15 | $ | 4.27 | $ | 3.50 | |||||||||
| Adjusted diluted EPS | $ | 1.50 | $ | 1.28 | $ | 1.14 | $ | 4.21 | $ | 3.46 | |||||||||
| Non-GAAP Financial Measures (Continued) | For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||
| Return on Average Tangible Equity: | |||||||||||||||||||
| Net income | $ | 16,740 | $ | 12,161 | $ | 12,061 | $ | 43,888 | $ | 36,657 | |||||||||
| Add: amortization of intangible assets | 986 | 987 | 1,068 | 2,959 | 3,202 | ||||||||||||||
| Less: tax adjustment (1) | (291 | ) | (292 | ) | (316 | ) | (875 | ) | (947 | ) | |||||||||
| Net income, adjusted for amortization of intangibles | $ | 17,435 | $ | 12,856 | $ | 12,813 | $ | 45,972 | $ | 38,912 | |||||||||
| Net income | $ | 16,740 | $ | 12,161 | $ | 12,061 | $ | 43,888 | $ | 36,657 | |||||||||
| Add: accelerated accretion on sub debt redemption | — | 1,824 | — | 1,824 | 160 | ||||||||||||||
| Less: tax adjustment for accelerated accretion on sub debt redemption (1) | — | (539 | ) | — | (539 | ) | (47 | ) | |||||||||||
| Less: renewable energy investment tax credit benefit | (920 | ) | — | — | (920 | ) | — | ||||||||||||
| Net income, adjusted for accelerated accretion on sub debt redemption and renewable energy tax credit investment benefit | $ | 15,820 | $ | 13,446 | $ | 12,061 | $ | 44,253 | $ | 36,770 | |||||||||
| Net income, adjusted for amortization of intangibles | $ | 17,435 | $ | 12,856 | $ | 12,813 | $ | 45,972 | $ | 38,912 | |||||||||
| Add: accelerated accretion on sub debt redemption | — | 1,824 | — | 1,824 | 160 | ||||||||||||||
| Less: tax adjustment for accelerated accretion on sub debt redemption(1) | — | (539 | ) | — | (539 | ) | (47 | ) | |||||||||||
| Less: renewable energy investment tax credit benefit | (920 | ) | — | — | (920 | ) | — | ||||||||||||
| Net income, adjusted for amortization of intangibles, accelerated accretion on sub debt redemption, and renewable energy investment tax credit benefit | $ | 16,515 | $ | 14,141 | $ | 12,813 | $ | 46,337 | $ | 39,025 | |||||||||
| Average equity | $ | 404,098 | $ | 395,954 | $ | 363,685 | $ | 395,289 | $ | 352,907 | |||||||||
| Less: average intangible assets | (61,585 | ) | (62,579 | ) | (65,592 | ) | (62,568 | ) | (66,651 | ) | |||||||||
| Average tangible equity | $ | 342,513 | $ | 333,375 | $ | 298,093 | $ | 332,721 | $ | 286,256 | |||||||||
| Return on average equity | 16.44 | % | 12.32 | % | 13.16 | % | 14.84 | % | 13.89 | % | |||||||||
| Return on average equity, adjusted for accelerated accretion on sub debt redemption and renewable energy investment tax credit benefit | 15.53 | % | 13.62 | % | 13.16 | % | 14.97 | % | 13.93 | % | |||||||||
| Return on average tangible equity | 20.20 | % | 15.47 | % | 17.05 | % | 18.47 | % | 18.17 | % | |||||||||
| Return on average tangible equity, adjusted for accelerated accretion on sub debt redemption and renewable energy investment tax credit benefit | 19.13 | % | 17.01 | % | 17.05 | % | 18.62 | % | 18.23 | % | |||||||||
| Adjusted Return on Average Assets: | |||||||||||||||||||
| Net income | $ | 16,740 | $ | 12,161 | $ | 12,061 | $ | 43,888 | $ | 36,657 | |||||||||
| Add: accelerated accretion on sub debt redemption | — | 1,824 | — | 1,824 | 160 | ||||||||||||||
| Less: tax adjustment for accelerated accretion on sub debt redemption (1) | — | (539 | ) | — | (539 | ) | (47 | ) | |||||||||||
| Less: renewable energy investment tax credit benefit | (920 | ) | — | — | (920 | ) | — | ||||||||||||
| Net income, adjusted for accelerated accretion on sub debt redemption and renewable energy investment tax credit benefit | $ | 15,820 | $ | 13,446 | $ | 12,061 | $ | 44,253 | $ | 36,770 | |||||||||
| Average assets | $ | 3,011,804 | $ | 2,879,579 | $ | 2,772,657 | $ | 2,921,726 | $ | 2,693,855 | |||||||||
| Return on average assets | 2.21 | % | 1.69 | % | 1.73 | % | 2.01 | % | 1.82 | % | |||||||||
| Adjusted return on average assets | 2.08 | % | 1.87 | % | 1.73 | % | 2.03 | % | 1.82 | % | |||||||||
| (1) Adjusted by combined statutory federal income tax rate of 21 percent and statutory state income tax rate of 10.84 percent. | |||||||||||||||||||
| Non-GAAP Financial Measures (Continued) | As of or for the Three Months Ended | ||||||||||
| September 30, | June 30, | September 30, | |||||||||
| 2026 | 2026 | 2025 | |||||||||
| (Dollars in thousands, except per share data) | |||||||||||
| Tangible Common Equity: | |||||||||||
| Total shareholders’ equity | $ | 402,590 | $ | 398,488 | $ | 368,496 | |||||
| Less: goodwill and other intangibles | (60,953 | ) | (61,939 | ) | (64,903 | ) | |||||
| Tangible common equity | $ | 341,637 | $ | 336,549 | $ | 303,593 | |||||
| Add: accelerated accretion on sub debt redemption | — | 1,824 | — | ||||||||
| Less: tax adjustment (1) | — | (539 | ) | — | |||||||
| Adjusted tangible common equity (2) | $ | 341,637 | $ | 337,834 | $ | 303,593 | |||||
| Tangible book value per share | $ | 32.46 | $ | 32.01 | $ | 28.81 | |||||
| Adjusted tangible book value per share (2) | $ | 32.46 | $ | 32.13 | $ | 28.81 | |||||
| Tangible Assets: | |||||||||||
| Total assets | $ | 2,983,584 | $ | 2,945,205 | $ | 2,838,171 | |||||
| Less: goodwill and other intangibles | (60,953 | ) | (61,939 | ) | (64,903 | ) | |||||
| Tangible assets | $ | 2,922,631 | $ | 2,883,266 | $ | 2,773,268 | |||||
| Total shareholders’ equity to total assets | 13.49 | % | 13.53 | % | 12.98 | % | |||||
| Tangible common equity ratio | 11.69 | % | 11.67 | % | 10.95 | % | |||||
| (1) Adjusted by combined statutory federal income tax rate of 21 percent and statutory state income tax rate of 10.84 percent. | |||||||||||
| (2) Adjusted tangible common equity and adjusted tangible book value per share are presented to illustrate the effect of excluding the after-tax accelerated accretion associated with the completed subordinated-debt redemption. These measures do not represent Bancorp’s actual period-end equity or book value. | |||||||||||
