Exchange Bank Announces Third Quarter 2025 Earnings

Core Insights - Exchange Bank reported a net income after taxes of $8.6 million for Q3 2025, a significant increase from $4.9 million in Q3 2024, reflecting strong financial performance [3][8]. Income Statement - Net interest income rose by $3.3 million or 17% to $23.3 million in Q3 2025, driven by increased loan interest and fees, alongside reduced interest expenses due to lower borrowings [4][20]. - Non-interest income increased by $1.5 million or 25% to $7.4 million, attributed mainly to a $1.4 million gain from the sale of unused bank premises [5][20]. - Year-to-date net income for 2025 reached $21.2 million, up from $15.0 million in the same period of 2024, with net interest income increasing by $6.1 million or 10% [6][20]. Balance Sheet - Total assets decreased to $3.31 billion as of September 30, 2025, from $3.41 billion a year earlier, with cash and cash equivalents down by $6.6 million or 3% [9][19]. - Gross loans increased by $103.9 million or 6% year-over-year, totaling $1.7 billion, with strong asset quality maintained [11][19]. - The bank's liquidity position remains robust, with on-balance sheet liquidity at $915.7 million, representing 28% of total assets [8][12]. Capital and Regulatory Ratios - The total risk-based capital ratio stood at 19.46% as of September 30, 2025, well above the minimum requirements, with book equity increasing by $38.8 million or 13% since September 30, 2024 [15][20]. - The bank's regulatory capital was reported at $423.8 million, reflecting a $22.4 million or 6.0% increase from the previous year [15][20]. Deposits and Borrowings - Total deposits increased by $69.7 million or 2.5% year-over-year, totaling $2.89 billion, with a slight increase of $15.9 million or 0.6% from the previous quarter [13][19]. - Borrowings significantly decreased to $40 million from $245 million a year earlier, primarily due to improved cash flows from investments and higher deposit balances [14][19].