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Net Income: $20.8 million in Q3 2026, up from $19 million in Q2 2026.
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Diluted EPS: $1.06 in Q3 2026, compared to $0.96 in the linked quarter (near-record).
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Return on Average Assets: Improved to 1.53%.
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Efficiency Ratio: Improved to 58.1% from 61.6% in the linked quarter.
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Net Interest Income: $51.5 million, up $1.1 million from the linked quarter.
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Net Interest Margin (tax-equivalent): Stable at 4.00%.
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Loans Held for Investment: $3.83 billion, up ~$60 million (6.3% annualized organic growth); full-year growth guidance mid-single digits.
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Loan Yield: 6.75%, down from 6.81% in Q2 2026.
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Metro Market Loans (Dallas, Houston, El Paso): $1.71 billion, up ~$23 million; 44.6% of total loan portfolio.
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Non-Interest Income: $13.8 million, down from $14.1 million in Q2 2026; 21% of bank revenues.
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Mortgage Banking Revenue: $4.9 million, including a $1.6 million MSR valuation increase.
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Deposits: $4.66 billion, up $20 million from the linked quarter.
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Non-Interest-Bearing Deposits: $1.18 billion, or 25.3% of total deposits (up from 24.8% at June 30).
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Cost of Deposits: 207 basis points, down 1 bp from the linked quarter.
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Allowance for Credit Losses / Total Loans: 1.38%, down from 1.41% in the prior quarter.
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Provision for Credit Losses (Loans): $1 million, driven by organic loan growth and net charge-offs.
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Non-Performing Loans: 40 basis points of total loans; modest increase tied to Bank of Houston-acquired loans.
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Non-Interest Expense: $38.1 million, down $1.8 million from the linked quarter.
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Tangible Common Equity / Tangible Assets: 10.32%.
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Common Equity Tier 1 Ratio: 14.2%.
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Tangible Book Value per Share: $29.23, down from $29.60 at June 30 (AOCI decline of $25.5 million, partly offset by $17.4 million net income after dividends).
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Dividend: 30th consecutive quarterly dividend announced for Q4 2026.
Release Date: October 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Net income increased to $20.8 million and diluted EPS rose to $1.06, up from $0.96 in the prior quarter.
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Return on average assets improved to 1.53% and the efficiency ratio improved to 58.1%.
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Loans held for investment grew by $60 million, or 6.3% annualized, to $3.83 billion, driven by healthy loan production.
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Net interest margin remained stable at 4.00% on a tax-equivalent basis.
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Nonperforming loans remained low at 40 basis points of total loans, and the largest credit has already returned to performing status.
