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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