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Bank of Salem

Salem, AR · Cert 11243 · Smith Associated Banking Corp.

State charter, Fed member · FED · 4 branches

Q2 2026

$261.5MAssets
$200.3MLoans
$227.6MDeposits
$32.4MEquity
Loan mix
84%RE $154.8M10%C&I $18.4M6%Consumer $11.3MQ2 2025Q2 2026
Deposit mix
78%Interest-bearing $177.6M22%Noninterest $50.1MQ2 2025Q2 2026

NIM

6.35%Q2 ’246.53%Q2 ’256.62%Q2 ’26-1%+6%

Non-interest income vs. expense

2.64%Q2 ’242.55%Q2 ’252.56%Q2 ’26+2%+1%

Executive Summary

  • Earnings: ROA of 1.67%, up 7 bps year over year; NIM at 4.56%.
  • Asset quality: problem loans at 1.79% of loans (+153 bps YoY), with net charge-offs at 0.26%.
  • Capital: tier 1 leverage ratio of 12.43%, up 24 bps from a year ago.
  • Funding: loans stand at 87.97% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

1.67%+7 bps YoY

Net Interest Margin (YTD, annualized)

4.56%+25 bps YoY

Efficiency Ratio (YTD, annualized)

51.56%-246 bps YoY

Tier 1 Leverage Ratio

12.43%+24 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets1.61%1.58%1.55%1.74%1.67%+7 bps
Return on Equity13.38%13.18%12.91%14.33%13.68%+30 bps
Net Interest Margin4.31%4.33%4.26%4.39%4.56%+25 bps
Efficiency Ratio54.02%53.07%54.44%49.95%51.56%-246 bps
Non-Interest Burden2.13%2.10%2.13%2.00%2.16%+2 bps
Growth
Asset Growth (YoY)36.27%3.21%6.63%6.59%3.80%-3,247 bps
Loan Growth (YoY)44.26%3.58%3.39%0.37%0.70%-4,355 bps
Deposit Growth (YoY)34.22%2.73%6.48%6.53%3.36%-3,086 bps
Asset Quality
Nonperforming Loans / Loans0.27%1.91%2.09%1.90%1.79%+153 bps
Net Charge-Offs / Loans0.00%0.00%0.01%0.06%0.26%+26 bps
Allowance / Loans1.82%1.91%1.93%2.00%2.00%+18 bps
Allowance Coverage of NPLs6.9x1.0x0.9x1.1x1.1x-5.7x
Capital
Tier 1 Leverage Ratio12.19%12.40%12.54%12.44%12.43%+24 bps
Total Risk-Based Capital12.19%12.40%12.54%12.44%12.43%+24 bps
Equity / Assets11.98%12.01%12.14%12.12%12.39%+41 bps
Liquidity & Funding
Loans / Deposits90.29%90.09%88.22%85.48%87.97%-232 bps
Liquid Assets / Assets12.10%12.45%14.79%16.92%15.40%+330 bps
CRE / Total Capitaln/a94.95%93.02%91.63%n/an/a