Infinity Bancorp (OTCQB:INFT), the holding company for Infinity Bank, reported financial results for the quarter ended September 30, 2026. The company recorded net income of $1.4 million and basic earnings per share of $0.44, while deposits and loans both increased from the end of the previous quarter.
#Loans and credit quality
Total loans stood at $260.5 million on September 30, 2026, compared with $255.1 million for the second quarter of 2026. That represented an increase of $5.4 million, or 2.1%. Compared with the fourth quarter of 2025, total loans were higher by $30.7 million, or 13.4%.
Infinity Bank funded $27.6 million in new loans and advances during the quarter. These fundings were offset by $22.3 million in payoffs, most of which the Bank said were expected under the contractual terms of the loans.
The loan-to-deposit ratio declined to 78.9% from 82.5% at June 30, 2026. The Bank recorded a credit to provision expense of $87 thousand during the quarter to maintain its allowance for credit losses at its current expected loss rate as a percentage of total loans. The Bank said this reflected stable credit quality and maintenance of an appropriate allowance level.
After recording $204 thousand in net charge-offs during the first quarter of 2026, the Bank reported no significant charge-offs in the second or third quarters. Its allowance for credit losses was 1.44%, down from 1.51% in the previous quarter.
#Deposits and funding
Total deposits reached $330.3 million at September 30, 2026, up $20.8 million, or 6.7%, from the second quarter and up $27.9 million, or 9.2%, from December 31, 2025.
Non-interest-bearing deposits represented 64% of total deposits. Non-interest-bearing demand accounts increased $36.6 million, or 20.8%, to $212.6 million. Interest-bearing deposits decreased by $15.8 million, or (11.8%), from the second quarter of 2026.
The company had no Federal Home Loan Bank or other borrowings outstanding at September 30, 2026. This compared with $5 million in overnight borrowings at December 31, 2025. Cost of funds was 1.19% for the quarter, compared with 1.28% in the previous quarter and 1.41% in the same quarter last year.
#Interest income and operating costs
Third-quarter net interest income was $5.1 million, an increase of $216 thousand, or 4.4%, from the second quarter of 2026 and an increase of $128 thousand, or 2.6%, from the third quarter of 2025. For the nine months ended September 30, 2026, net interest income was $14.7 million, up $599 thousand, or 4.2%, from the same period in 2025.
The net interest margin was 5.93% in the third quarter, up 9 basis points from the second quarter and up 12 basis points from the comparable period in 2025. For the first nine months of 2026, the net interest margin was 5.81%, compared with 5.84% for the same period in 2025.
Infinity Bancorp said changes in loan yields reflected three 25 basis point cuts in federal funds rates approved in the third and fourth quarters of 2025, partly offset by a 25 basis point increase late in the third quarter of 2026, along with changes in the portfolio mix. Total loan yields were 8.21% in the third quarter, compared with 8.34% in the second quarter and 8.92% in the third quarter of 2025.
Non-interest expense was $3.4 million for the quarter, up $484 thousand, or 16.9%, from the second quarter and up $392 thousand, or 13.2%, from the same quarter in 2025. For the nine months, non-interest expense increased $578 thousand, or 6.8%, to $9.1 million. The company attributed the increase primarily to marketing and promotional costs associated with a new deposit program.
The efficiency ratio was 64.1% for the quarter, compared with 57.1% at June 30, 2026, and 58.2% for the same quarter in 2025.
#Profitability and capital
Third-quarter net income and basic earnings per share were unchanged from the second quarter at $1.4 million and $0.44, respectively. Compared with the third quarter of 2025, profitability decreased $113 thousand and basic earnings per share decreased $0.03.
For the nine months ended September 30, 2026, net income was $4.0 million and basic earnings per share was $1.28, compared with $4.1 million and $1.30 for the first nine months of 2025. The company said higher net interest margin and non-interest income were largely offset by increased operating expenses.
At the end of the quarter, Infinity Bancorp reported a Tier 1 leverage ratio of 13.20%, a Tier 1 risk-based capital ratio of 15.50% and a total risk-based capital ratio of 18.10%. The company said its capital levels were well above regulatory requirements.
#Dividend and investment portfolio
On October 28, 2026, the company declared a $0.10 cash dividend. Shareholders of record as of November 16, 2026, are scheduled to receive the payment on November 30, 2026.
The book value of common stock was $14.49 at September 30, 2026, compared with $14.18 at June 30, 2026, and $13.13 at September 30, 2025.
The investment portfolio consists entirely of government agency or government-sponsored enterprise securities. The securities are held as available for sale, although the company said it did not currently intend to sell them. They are pledged to the Federal Home Loan Bank and allow the company to borrow approximately 95% of the portfolio's fair market value. The portfolio also provides approximately $650 thousand in monthly payments through amortisation, which are reinvested in higher-yielding assets. Its average life was 2.5 years at September 30, 2026.
#Company background and stated risks
Infinity Bancorp is the holding company for Infinity Bank, its sole subsidiary, and has no operations other than through the Bank. Infinity Bank is a community bank serving commercial businesses, professional service entities, their owners, employees and families. It provides deposit products and services, business loans and commercial real estate financing.
The company cautioned that forward-looking statements do not guarantee future performance and may be affected by risks and uncertainties. These include events occurring or not occurring because of circumstances outside the Bancorp's control; greater competition from financial institutions or non-financial institutions; interest-rate changes that could reduce interest margins; changes in deposits, loan demand or real estate values that could adversely affect the business; and unexpected or significant increases in loan losses.
Other stated risks include changes in accounting principles, policies or guidelines that could alter how the Bancorp's financial condition is perceived; changes in corporate or individual income tax laws that could adversely affect financial condition or results; less favourable national, local, securities-market or banking-industry conditions; and legislative or regulatory changes that could adversely affect the business.
The company also identified the possibility that technological changes could be more difficult or expensive than anticipated, information-technology security systems could fail or be breached, new business initiatives could be more difficult or expensive to complete, and litigation or matters before regulatory agencies could delay events. The company said actual results could differ materially from those expressed or implied by forward-looking statements.
#Key Takeaways
- Infinity Bancorp reported third-quarter net income of $1.4 million and basic EPS of $0.44.
- Total loans reached $260.5 million, while deposits rose to $330.3 million at September 30, 2026.
- Third-quarter net interest income was $5.1 million, and the net interest margin was 5.93%.
- The company had no FHLB or other borrowings outstanding at September 30, 2026.
- Infinity Bancorp declared a $0.10 cash dividend payable on November 30, 2026, to shareholders of record as of November 16, 2026.
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