On July 30, 2026, the Bank of San Francisco released its financial results for the quarter ending June 30, revealing a net income of $1.7 million. This figure translates to $0.76 per diluted share, representing a decline from the $2.0 million, or $0.94 per diluted share, reported in the prior quarter. However, this is a slight improvement compared to $1.6 million, or $0.77 per diluted share, recorded during the same period in 2025.
For the first half of 2026, the bank achieved a net income of $3.7 million, equivalent to $1.70 per diluted share. This marks a 34% increase from the $2.7 million ($1.28 per diluted share) reported in the first half of 2025. The second quarter results showcased an annualized growth of 23% in loans and 32% in deposits, indicating a robust demand for the bank’s services.
The bank noted a slight contraction in its net interest margin (NIM), which decreased to 4.30% from 4.47% in the previous quarter, despite a year-on-year increase from 4.28%. This reduction is attributed to the implementation of a strategy aimed at extending the duration of liabilities and seasonal fluctuations in deposit categories.
By the end of June 2026, total assets rose to $863.6 million, reflecting a 29% increase compared to the same period last year. Total deposits also grew significantly, reaching $740.7 million, an increase of 27%. These gains were largely driven by new loan originations, showcasing strong client demand amidst a competitive banking landscape.
Non-interest expenses for the second quarter totaled $5.5 million, a 3% increase from the preceding quarter and a 23% rise year-on-year. Furthermore, the bank maintained strong credit quality, with non-performing loans standing at only 0.07% of total assets, down from 0.08% in the previous quarter and 0.17% year-on-year.
Bank management expressed confidence regarding future earnings potential, citing a substantial increase in loans exceeding the year-to-date average by $51 million. They highlighted the strategic approach to growth, including investments in technology and client services, aimed at strengthening operations and ensuring sustainable profitability.
Bank of San Francisco reported unaudited net income of $1.7 million, or $0.76 per diluted share for the quarter, which represents a decrease from $2.0 million or $0.94 per diluted share for the previous quarter ended March 31, 2026, but an increase from $1.6 million or $0.77 per diluted share for the same period a year prior. Over the first half of 2026, net income reached $3.7 million, reflecting a year-on-year increase.
For the quarter ending June 30, 2026, the net interest margin (NIM) was reported at 4.30%, a decrease from 4.47% in the previous quarter and slightly up from 4.28% in the prior year. This indicates a modest contraction which may impact future earnings.
Total assets of Bank of San Francisco increased to $863.6 million as of June 30, 2026, representing a 13% growth since March 31, 2026, and a 29% rise compared to June 30, 2025. The growth was attributed to a 32% rise in deposits, largely driven by new loan originations and strong demand for banking services, although some deposit categories experienced declines.
Non-interest expenses for the second quarter of 2026 totalled $5.5 million, which is an increase of 3% from the previous quarter and a 23% rise from the same quarter in the prior year. This growth in expenses could impact the Bank's profitability if not managed carefully.
At June 30, 2026, non-performing loans represented 0.07% of total assets, indicating a slight decline from 0.08% in the previous quarter and a decrease from 0.17% a year prior. This suggests a strengthening in credit quality, though ongoing vigilance is needed in this area.
As of June 30, 2026, the Bank reported a Tier 1 Leverage Ratio of 10.92%, and Tier 1 Risk-Based and Common Equity Tier 1 Ratios of 14.36%. These ratios indicate that the Bank remains well-capitalised and exceeds regulatory requirements, though there have been some declines compared to previous periods.
Management indicated a positive outlook for future earnings, citing a growth in earning assets, particularly in loans, which finished the quarter more than $51 million above the average year-to-date. However, they also acknowledged the impact of a modest contraction in net interest margin as a consideration for future performance.
The Bank's disclosures outline various risks that could impact operations, including local and national economic conditions, interest rate changes, potential client concerns arising from the financial performance of other institutions, and uncertainties related to public health crises. These factors could affect performance and earnings projections.