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Hearthside Bank Corporation

Middlesboro, KY · Cert 31236 · HFB Financial Corp.

State charter, non-member · FDIC · 8 branches

Q2 2026

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks under $1B in assets in KY3

Basis

Quarter: Q2 2026, the quarter ended June 30, 2026, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

Banks under $1B in assets in KY (n=69). Each measure ranks only the institutions that reported it, so n varies by measure.

Peer groups below the disclosure floor are suppressed.

Peer standing

Capital

49

Q2 2024Q2 2026peer median (50)

Asset Quality

65

Q2 2024Q2 2026peer median (50)

Profitability

32

Q2 2024Q2 2026peer median (50)

Liquidity

88

Q2 2024Q2 2026peer median

Efficiency

23

Q2 2024Q2 2026peer median (50)

Growth

No peer data yet

Capital, Asset Quality, Profitability, Efficiency: higher is always a stronger peer standing (▲ better, ▼ worse). Liquidity, Growth: the score reflects closeness to the peer median -- 100 is sitting exactly at the median, falling the same way whether the bank runs above or below it.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

Hearthside Bank Corporation

Middlesboro, KY · Cert 31236 · HFB Financial Corp.

State charter, non-member · FDIC · 8 branches

Q2 2026

$608.9MAssets
$456.9MLoans
$547.9MDeposits
$55.0MEquity
Loan mix
92%RE $417.3M4%C&I $20.2M3%Consumer $14.5MQ2 2025Q2 2026
Deposit mix
84%Interest-bearing $462.7M16%Noninterest $85.2MQ2 2025Q2 2026

NIM

4.84%Q2 ’245.17%Q2 ’255.36%Q2 ’26+14%+11%

Non-interest income vs. expense

2.98%Q2 ’243.08%Q2 ’253.11%Q2 ’26-2%+5%

Market Position · Knoxville, TN · 2026 SOD (annual) · 0.2% share · #35 of 42 inst. · $0.1B of $26.6B

41.3% Harlan
12.9% Claiborne
40.5% Bell
5.9% Campbell

Executive Summary

  • Earnings: ROA of 0.85%, up 16 bps year over year; NIM at 3.58%.
  • Asset quality: problem loans at 0.32% of loans (+15 bps YoY), with net recoveries of 0.01%.
  • Capital: tier 1 leverage ratio of 10.07%, up 10 bps from a year ago.
  • Funding: loans stand at 83.39% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

0.85%+16 bps YoY

Net Interest Margin (YTD, annualized)

3.58%+36 bps YoY

Efficiency Ratio (YTD, annualized)

72.20%-412 bps YoY

Tier 1 Leverage Ratio

10.07%+10 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.69%0.75%0.81%0.80%0.85%+16 bps
Return on Equity8.14%8.83%9.37%8.73%9.40%+126 bps
Net Interest Margin3.23%3.25%3.24%3.56%3.58%+36 bps
Efficiency Ratio76.32%73.57%72.72%73.78%72.20%-412 bps
Non-Interest Burden2.27%2.19%2.16%2.44%2.39%+11 bps
Growth
Asset Growth (YoY)4.44%6.62%1.73%4.14%8.20%+375 bps
Loan Growth (YoY)4.66%3.66%0.70%4.00%6.36%+169 bps
Deposit Growth (YoY)5.94%8.32%5.58%6.28%9.75%+380 bps
Asset Quality
Nonperforming Loans / Loans0.17%0.25%0.27%0.30%0.32%+15 bps
Net Charge-Offs / Loans0.01%0.01%0.02%-0.01%-0.01%-2 bps
Allowance / Loans1.19%1.20%1.22%1.21%1.24%+5 bps
Allowance Coverage of NPLs7.0x4.8x4.5x4.1x3.9x-3.1x
Capital
Tier 1 Leverage Ratio9.97%9.88%9.93%10.05%10.07%+10 bps
Total Risk-Based Capital15.27%15.15%15.50%15.20%15.52%+25 bps
Equity / Assets8.68%8.67%9.26%8.99%9.03%+35 bps
Liquidity & Funding
Loans / Deposits86.05%84.54%85.34%85.53%83.39%-266 bps
Liquid Assets / Assets2.58%4.41%1.77%1.74%3.75%+116 bps
CRE / Total Capitaln/a278%258%271%n/an/a

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas. Income-statement figures are year-to-date as filed, annualized (the UBPR convention). Each quarter includes the ones before it.

CallReports · callreports.ai· Performance TrendsGenerated 2026-10-11

Hearthside Bank Corporation

Middlesboro, KY · Cert 31236 · Peer group: banks under $1B in assets in KY (n=69) · HFB Financial Corp.

State charter, non-member · FDIC · 8 branches

Q2 2026

$608.9MAssets
$456.9MLoans
$547.9MDeposits
$55.0MEquity

Executive Summary

  • Strongest standing: net charge-offs / loans outperforms 68% of banks under $1B in assets in KY (rank 23 of 69).
  • Widest gap: efficiency ratio trails 77% of banks under $1B in assets in KY (rank 54 of 69).
  • Overall: at or above the peer median on 4 of 9 directional measures.

Return on Assets

0.83%

Rank 52 of 69

Net Interest Margin

3.58%

Rank 44 of 69

Efficiency Ratio

72.20%

Rank 54 of 69

Equity / Assets

9.03%

Rank 45 of 69

Non-interest income vs. expense

$4.3M$18.7MINCOMEEXPENSE
Unfavorable gap of $14.4M · efficiency ratio beats 23% of banks under $1B in assets in KY
Bank 72.20%Peer median 63.0%Q3 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets0.83%0.83%1.18%1.44%Beats 25%52 / 69
Return on Equity9.17%7.64%11.70%15.70%Beats 35%45 / 69
Net Interest Margin3.58%3.45%3.75%3.96%Beats 36%44 / 69
Efficiency Ratio72.20%55.32%62.99%70.80%Beats 23%54 / 69
Asset Quality
Nonperforming Loans / Loans0.32%0.18%0.52%1.14%Beats 61%28 / 69
Net Charge-Offs / Loans0.01%0.01%0.02%0.06%Beats 68%23 / 69
Capital
Tier 1 Capital Ratio14.27%11.33%13.58%16.27%Beats 55%31 / 69
Total Risk-Based Capital Ratio15.52%11.55%14.43%17.27%Beats 58%29 / 69
Equity / Assets9.03%8.31%9.91%12.53%Beats 35%45 / 69
Liquidity & Funding
Loans / Deposits83.39%71.40%81.07%88.03%55th pctl31 / 69
Loans / Assets75.04%61.10%68.66%76.68%65th pctl24 / 69
Brokered Deposits / Depositsn/aNot reported for this institution