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Heritage Bank, Inc.

Burlington, KY · Cert 33119 · Commonwealth Holdings L L C

State charter, non-member · FDIC · 19 branches

Q2 2026

$2.0BAssets
$1.2BLoans
$1.8BDeposits
$144.2MEquity
Loan mix
83%RE $1.0B15%C&I $0.2B2%Consumer $0.0BQ2 2025Q2 2026
Deposit mix
79%Interest-bearing $1.4B21%Noninterest $0.4BQ2 2025Q2 2026

NIM

4.81%Q2 ’245.16%Q2 ’255.18%Q2 ’26+33%+9%

Non-interest income vs. expense

1.86%Q2 ’242.46%Q2 ’252.75%Q2 ’26+27%+8%

Market Position · Cincinnati, OH-KY-IN · 2026 SOD (annual) · 1.0% share · #7 of 54 inst. · $1.8B of $187.5B

19.5% Boone
12.8% Kenton
8.1% Campbell
45.3% Pendleton

Executive Summary

  • Earnings: ROA of 1.08%, up 5 bps year over year; NIM at 3.43%.
  • Asset quality: problem loans at 0.47% of loans (+11 bps YoY), with net charge-offs at 0.07%.
  • Capital: tier 1 leverage ratio of 9.01%, up 44 bps from a year ago.
  • Funding: loans stand at 67.86% of deposits as of Q2 2026.

Financial Results

Return on Assets (quarter, annualized)

1.08%+5 bps YoY

Net Interest Margin (quarter, annualized)

3.43%+27 bps YoY

Efficiency Ratio (quarter, annualized)

63.83%+10 bps YoY

Tier 1 Leverage Ratio

9.01%+44 bps YoY

Discrete quarter, annualized.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets1.03%1.09%1.36%1.00%1.08%+5 bps
Return on Equity16.88%16.93%20.93%15.11%15.36%-152 bps
Net Interest Margin3.16%3.28%3.35%3.28%3.43%+27 bps
Efficiency Ratio63.73%65.34%60.24%61.46%63.83%+10 bps
Non-Interest Burden1.78%1.86%1.72%1.79%1.93%+14 bps
Growth
Asset Growth (YoY)4.91%7.93%11.30%10.05%9.25%+434 bps
Loan Growth (YoY)10.46%12.18%10.77%9.42%2.84%-763 bps
Deposit Growth (YoY)5.03%6.76%11.38%9.33%8.12%+309 bps
Asset Quality
Nonperforming Loans / Loans0.36%0.29%0.31%0.27%0.47%+11 bps
Net Charge-Offs / Loans-0.06%-0.03%0.26%0.16%0.07%+13 bps
Allowance / Loans1.12%1.12%1.12%1.15%1.18%+6 bps
Allowance Coverage of NPLs3.1x3.9x3.7x4.3x2.5x-0.6x
Capital
Tier 1 Leverage Ratio8.57%8.74%8.39%8.58%9.01%+44 bps
Total Risk-Based Capital11.80%11.76%12.23%12.57%12.97%+117 bps
Equity / Assets6.23%6.60%6.41%6.81%7.23%+100 bps
Liquidity & Funding
Loans / Deposits71.35%73.35%65.82%69.01%67.86%-349 bps
Liquid Assets / Assets3.18%5.11%12.76%8.78%10.05%+687 bps
CRE / Total Capitaln/a492%476%478%n/an/a