PackageTrendsPeer
Letter portraitLegal landscapeQuarterYTD

Southwest Heritage Bank

Scottsdale, AZ · Cert 29087 · Bancorp 34 Inc.

SL · OCC · 8 branches

Q2 2026

$892.8MAssets
$707.2MLoans
$753.6MDeposits
$122.3MEquity
Loan mix
88%RE $618.2M12%C&I $87.7M0%Consumer $0.1MQ2 2025Q2 2026
Deposit mix
79%Interest-bearing $594.5M21%Noninterest $159.1MQ2 2025Q2 2026

NIM

6.23%Q2 ’245.79%Q2 ’255.75%Q2 ’26-9%+4%

Non-interest income vs. expense

3.00%Q2 ’242.84%Q2 ’252.84%Q2 ’26-6%-6%

Market Position · Phoenix-Mesa-Chandler, AZ · 2026 SOD (annual) · 0.2% share · #27 of 55 inst. · $0.3B of $192.0B

0.2% Maricopa
1.3% Pima
2.9% Dona Ana
12.5% Otero

Executive Summary

  • Earnings: ROA of 0.94%, down 14 bps year over year; NIM at 3.78%.
  • Asset quality: problem loans at 0.67% of loans (+2 bps YoY), with net charge-offs at 0.31%.
  • Capital: tier 1 leverage ratio of 13.36%, up 150 bps from a year ago.
  • Funding: loans stand at 93.84% of deposits as of Q2 2026.

Financial Results

Return on Assets (quarter, annualized)

0.94%-14 bps YoY

Net Interest Margin (quarter, annualized)

3.78%+14 bps YoY

Efficiency Ratio (quarter, annualized)

66.84%-523 bps YoY

Tier 1 Leverage Ratio

13.36%+150 bps YoY

Discrete quarter, annualized.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets1.08%0.87%0.82%0.85%0.94%-14 bps
Return on Equity9.15%6.95%6.25%6.46%7.03%-212 bps
Net Interest Margin3.63%3.46%3.65%3.81%3.78%+14 bps
Efficiency Ratio72.07%73.54%71.33%68.21%66.84%-523 bps
Non-Interest Burden2.74%2.66%2.72%2.71%2.58%-17 bps
Growth
Asset Growth (YoY)1.06%-4.25%-2.24%-2.64%-3.74%-481 bps
Loan Growth (YoY)-8.04%-1.79%5.38%4.35%4.55%+1,258 bps
Deposit Growth (YoY)3.08%-3.34%-4.31%-4.31%-5.61%-868 bps
Asset Quality
Nonperforming Loans / Loans0.64%1.73%1.60%1.83%0.67%+2 bps
Net Charge-Offs / Loans-0.92%0.03%0.00%0.27%0.31%+123 bps
Allowance / Loans1.55%1.41%1.37%1.31%1.23%-32 bps
Allowance Coverage of NPLs2.4x0.8x0.9x0.7x1.8x-0.6x
Capital
Tier 1 Leverage Ratio11.86%12.26%12.90%13.16%13.36%+150 bps
Total Risk-Based Capital15.44%15.54%15.42%15.93%16.25%+82 bps
Equity / Assets12.01%12.97%13.24%13.11%13.70%+168 bps
Liquidity & Funding
Loans / Deposits84.73%90.52%93.41%90.19%93.84%+912 bps
Liquid Assets / Assets10.76%5.83%3.89%7.07%4.70%-606 bps
CRE / Total Capitaln/a460%474%469%n/an/a