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Heritage Bank of the Ozarks

Lebanon, MO · Cert 57576 · Cornerstone Bancshares Inc.

State charter, non-member · FDIC · 3 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 MO3

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 MO (n=82 to 83). 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

12

Q2 2024Q2 2026peer median (50)

Asset Quality

36

Q2 2024Q2 2026peer median (50)

Profitability

44

Q2 2024Q2 2026peer median (50)

Liquidity

72

Q2 2024Q2 2026peer median

Efficiency

41

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

Heritage Bank of the Ozarks

Lebanon, MO · Cert 57576 · Cornerstone Bancshares Inc.

State charter, non-member · FDIC · 3 branches

Q2 2026

$424.0MAssets
$329.4MLoans
$376.9MDeposits
$37.4MEquity
Loan mix
94%RE $292.3M4%C&I $12.0M2%Consumer $6.9MQ2 2025Q2 2026
Deposit mix
83%Interest-bearing $311.7M17%Noninterest $65.2MQ2 2025Q2 2026

NIM

5.57%Q2 ’245.94%Q2 ’255.86%Q2 ’26+12%-1%

Non-interest income vs. expense

2.74%Q2 ’242.50%Q2 ’252.66%Q2 ’26-13%+17%

Executive Summary

  • Earnings: ROA of 1.18%, down 22 bps year over year; NIM at 3.71%.
  • Asset quality: problem loans at 2.74% of loans (+253 bps YoY), with net charge-offs at 0.01%.
  • Capital: tier 1 leverage ratio of 9.64%, up 2 bps from a year ago.
  • Funding: loans stand at 87.38% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

1.18%-22 bps YoY

Net Interest Margin (YTD, annualized)

3.71%-2 bps YoY

Efficiency Ratio (YTD, annualized)

61.27%+566 bps YoY

Tier 1 Leverage Ratio

9.64%+2 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets1.39%1.35%1.27%1.13%1.18%-22 bps
Return on Equity16.84%16.26%15.28%13.27%13.67%-317 bps
Net Interest Margin3.74%3.63%3.60%3.61%3.71%-2 bps
Efficiency Ratio55.61%55.09%55.30%61.33%61.27%+566 bps
Non-Interest Burden1.73%1.67%1.68%2.00%2.03%+30 bps
Growth
Asset Growth (YoY)14.44%13.92%17.26%11.89%8.23%-621 bps
Loan Growth (YoY)14.48%14.01%14.52%13.23%11.27%-320 bps
Deposit Growth (YoY)12.45%13.76%19.80%12.17%9.78%-266 bps
Asset Quality
Nonperforming Loans / Loans0.22%0.21%2.28%3.43%2.74%+253 bps
Net Charge-Offs / Loans0.00%0.01%0.03%0.00%0.01%+1 bps
Allowance / Loans1.17%1.27%1.40%1.42%1.45%+28 bps
Allowance Coverage of NPLs5.4x6.1x0.6x0.4x0.5x-4.9x
Capital
Tier 1 Leverage Ratio9.62%9.32%9.31%9.38%9.64%+2 bps
Total Risk-Based Capital9.62%9.32%9.31%9.38%9.64%+2 bps
Equity / Assets8.44%8.41%8.33%8.67%8.83%+39 bps
Liquidity & Funding
Loans / Deposits86.20%83.53%84.01%86.91%87.38%+117 bps
Liquid Assets / Assets6.85%6.65%5.74%5.93%4.15%-270 bps
CRE / Total Capitaln/a372%368%359%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

Heritage Bank of the Ozarks

Lebanon, MO · Cert 57576 · Peer group: banks under $1B in assets in MO (n=82-83) · Cornerstone Bancshares Inc.

State charter, non-member · FDIC · 3 branches

Q2 2026

$424.0MAssets
$329.4MLoans
$376.9MDeposits
$37.4MEquity

Executive Summary

  • Strongest standing: net charge-offs / loans outperforms 65% of banks under $1B in assets in MO (rank 30 of 82).
  • Widest gap: total risk-based capital ratio trails 94% of banks under $1B in assets in MO (rank 78 of 83).
  • Overall: at or above the peer median on 2 of 9 directional measures.

Return on Assets

1.18%

Rank 49 of 83

Net Interest Margin

3.71%

Rank 51 of 83

Efficiency Ratio

61.31%

Rank 50 of 83

Equity / Assets

8.83%

Rank 63 of 83

Non-interest income vs. expense

$2.6M$11.1MINCOMEEXPENSE
Unfavorable gap of $8.5M · efficiency ratio beats 41% of banks under $1B in assets in MO
Bank 61.31%Peer median 58.8%Q3 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets1.18%0.96%1.32%1.75%Beats 41%49 / 83
Return on Equity13.31%9.66%12.96%15.76%Beats 52%40 / 83
Net Interest Margin3.71%3.35%3.85%4.16%Beats 39%51 / 83
Efficiency Ratio61.31%49.83%58.83%68.51%Beats 41%50 / 83
Asset Quality
Nonperforming Loans / Loans2.74%0.08%0.51%1.01%Beats 7%77 / 82
Net Charge-Offs / Loans0.01%0.00%0.01%0.06%Beats 65%30 / 82
Capital
Tier 1 Capital Ratio9.64%11.01%12.49%14.98%Beats 7%77 / 83
Total Risk-Based Capital Ratio9.64%11.13%13.01%15.10%Beats 6%78 / 83
Equity / Assets8.83%8.83%10.71%13.29%Beats 24%63 / 83
Liquidity & Funding
Loans / Deposits87.38%69.28%83.22%91.21%65th pctl29 / 82
Loans / Assets77.68%59.34%71.15%78.36%71st pctl24 / 83
Brokered Deposits / Depositsn/aNot reported for this institution