Key Highlights

  • Bank of Hawaii (NYSE:BOH) reported EPS of USD 1.49 and a margin of 2.82%, up for a tenth straight quarter, while non-performing assets rose to USD 43.4 million on one commercial mortgage and the board added USD 200 million to buybacks.
  • City Holding (NASDAQ:CHCO) posted record EPS of USD 2.43 with a margin of 4.04% and raised its quarterly dividend 15% to USD 1.00, while nonperforming assets held at 0.24% of loans and no shares were repurchased in the quarter.
  • German American Bancorp (NASDAQ:GABC) earned a record USD 38.6 million with a margin of 4.42%, but deposits fell USD 59.3 million from the second quarter while loans grew, which makes funding costs the main test for the bank.
  • Lakeland Financial (NASDAQ:LKFN) earned a third-quarter record of USD 28.9 million, or USD 1.14 per share, with loans up 8%, while watch list loans rose to 3.56% of loans from 3.00% a year earlier.

Bank of Hawaii (NYSE:BOH): tenth straight margin gain

Bank of Hawaii reported net income of USD 64.3 million for the quarter, up 0.7% from USD 63.8 million in the second quarter and up from USD 53.3 million a year earlier. Diluted EPS of USD 1.49 was up about 24% from USD 1.20, simple arithmetic on two reported figures. Net interest margin was 2.82% against 2.46% a year earlier. CEO Jim Polk called it a quarter of solid performance supported by continued expense discipline and attributed the margin gain to asset repricing and deposit repricing. The bank also tied results to deposit repricing actions across the quarter. Noninterest expense was USD 112.3 million, flat on USD 112.4 million a year earlier, while noninterest income fell to USD 42.7 million from USD 46.0 million. Loans and leases were USD 14.4 billion, up 2.1% since December 31, 2025, and deposits were USD 20.5 billion, down 3.3% over the same period because of runoff in public funds and lower commercial balances.

City Holding (NASDAQ:CHCO): record EPS and a 15% dividend rise

City Holding, a West Virginia bank holding company, earned USD 34.6 million in the third quarter, against USD 33.3 million in the second quarter and USD 35.2 million a year earlier. Diluted EPS of USD 2.43 was a record, and nine-month EPS was USD 6.98 against USD 6.75. Net interest margin of 4.04% was up from 3.97% in the second quarter and flat with a year earlier, helped by higher loan yields, higher average loan balances and a higher investment yield. Loans reached USD 4.55 billion, up USD 48.4 million, with commercial and industrial loans up 4.4%. Period-end deposits were USD 5.36 billion, and noninterest-bearing balances drove the increase in average deposits. Nonperforming assets were stable at USD 10.9 million, past-due loans were USD 8.3 million, or 0.18% of loans, and the provision was a USD 0.1 million recovery against a USD 0.4 million provision in the second quarter. The company cited a commercial real estate loan upgrade and lower historical loss rates, partly offset by qualitative adjustments and one commercial loan downgrade.

German American Bancorp (NASDAQ:GABC): record profit and a deposit test

German American Bancorp, an Indiana bank holding company, earned a record USD 38.6 million against USD 35.1 million a year earlier, lifting EPS about 10% to USD 1.03. Net interest income was USD 83.5 million, up about 3% from the second quarter and about 10% from a year earlier. Margin was 4.42% against 4.06%. Because loan discount accretion from past acquisitions inflates reported margin, management also showed a core margin of 4.26%. Noninterest income was USD 18.7 million, with deposit service income up about 7% from the second quarter. A year earlier it included a USD 975,000 debt extinguishment gain. Noninterest expense rose to USD 53.1 million on health insurance, staffing, repairs and donations. End-of-period loans grew USD 210.8 million, about 4%, from a year earlier, led by commercial real estate. Deposits fell USD 78.0 million, about 1%, over the same period, with non-interest-bearing deposits near 28% of the total. The provision for credit losses was USD 0.5 million against USD 1.5 million in the second quarter.

Lakeland Financial (NASDAQ:LKFN): record quarter and rising watch list

Lakeland Financial, the Indiana holding company for Lake City Bank, earned USD 28.9 million, up 9% from a year earlier and USD 0.4 million from the second quarter. Diluted EPS of USD 1.14 was up 11%. For nine months, net income was USD 83.8 million, up 14%, and EPS was USD 3.31, up 16%. Total revenue was USD 73.0 million, up 6%. Net interest income of USD 60.7 million was up 8% year over year and 4% from the second quarter. Core deposits were USD 6.05 billion, up USD 204.3 million, or 3%, and the efficiency ratio improved to 49.5% from 50.7%. Year-to-date results are running ahead of the third quarter pace. The provision for credit losses was USD 1.2 million against USD 2.0 million a year earlier. Net charge-offs were USD 3.0 million, including a USD 2.8 million partial charge-off on a previously reserved nonperforming credit. Nonperforming loans were 0.32% of loans, improved from 0.36%, but watch list loans rose to 3.56% of loans from 3.00% a year earlier.

HBT Financial (NASDAQ:HBT): strong margin and a pending deal

HBT Financial, an Illinois bank holding company, earned USD 31.4 million, up from USD 27.8 million in the second quarter and USD 19.8 million a year earlier. Adjusted EPS was also USD 0.86 against USD 0.78 and USD 0.65. Net interest income of USD 70.3 million was up 1.8% from the second quarter and 40.7% year over year, and loans rose from USD 3.40 billion to USD 4.78 billion, about 41%, simple arithmetic on two reported figures. Return on assets was 1.85%. Noninterest expense was USD 42.7 million, including USD 1.0 million of acquisition costs, and the efficiency ratio improved to 48.73% from 50.67%. Return on average equity was 16.17%, and noninterest income was USD 14.2 million. The provision was a negative USD 0.6 million, nonperforming assets were USD 10.8 million, or 0.16% of assets, and the company booked net recoveries of USD 0.5 million. The allowance was 1.26% of loans, or 599% of nonperforming loans.

Where Things Stand

The answer is that the standouts are the banks whose margins widened without a funding problem. City Holding (NASDAQ:CHCO) reached 4.04%. HBT Financial (NASDAQ:HBT) reached 4.35% with EPS of USD 0.86. German American Bancorp (NASDAQ:GABC) set a record but its deposits shrank. Lakeland Financial (NASDAQ:LKFN) grew loans 8% yet watch list loans rose. Bank of Hawaii (NYSE:BOH) has the lowest margin at 2.82%, though it has widened for ten straight quarters. Credit was clean across the group, including at HBT Financial (NASDAQ:HBT), but deposits are the shared risk. This is not investment advice.