SANTA ANA, CA / ACCESS Newswire / February 6, 2026 / Infinity Bancorp (OTCQB:INFT) (the "Company" or "Bancorp"), the holding company for Infinity Bank (the "Bank"), today announced financial results for the quarter ended, December 31, 2025.
Financial highlights for 2025:
Net income increased 38.4% to $5.4 million
Assets increased $23.3 million
Dividends of $0.35 per share were paid to shareholders
Total stockholders' equity increased $5.5 million
Earnings per share increased $0.42 to $1.71
Loans and Allowance for Credit Losses
Total loans were $229.8 million at December 31, 2025, compared to $214.4 million for the third quarter of 2025, an increase of $15.4 million, or 7.19%. When compared to December 31, 2024, total loans increased $3.5 million, or 1.54%. The Bank funded $28.0 million in new loans/advances in the fourth quarter of 2025. The fundings were offset by $13.8 million in payoffs, most of which were expected based on the contractual terms of the loans. The increase in loans caused the Bank's loan deposit ratio to increase to 76.0% as of December 31, 2025, from 65.9% as of September 30, 2025, and decrease from 79.5% at December 31, 2024.
To maintain the Bank's Allowance for Credit Losses (ACL) at its current level, as a percentage of total loans, the Bank recorded a provision of $349 thousand for the fourth quarter and did not record a provision during the third quarter of 2025. The Bank did not record any charge-offs or recoveries during the third quarter. The Bank's ACL decreased to 1.58% when compared to the previous quarter at 1.68% and decreased 6 basis points from December 31, 2024.
Yields on total loans decreased to 8.40% during the fourth quarter of 2025, compared to 8.92% from third quarter of 2025 and decreased from 9.12% in the fourth quarter, 2024. For the year ending December 31, 2025, yield on loans decreased to 8.79% compared to 9.31% for the same period in 2024. The decrease in yields was due to the reduction in the federal funds rates in 2024 and 2025 (100 basis points between September and December 2024 and another 75 basis points between September and December 2025).
Deposits and Borrowed Funds
Total deposits equaled $302.4 million at December 31, 2025, a decrease of $23.1 million, or (7.1%) from the third quarter of 2025, and an increase of $17.9 million, or 6.3% from December 31, 2024. Non-interest-bearing demand accounts decreased $25.1 million, or (12.6%) to $173.4 million as of December 31, 2025, and comprise 57.3% of total deposits. Non-interest-bearing demand accounts increased $23.0 million, or 15.3% when compared to December 31, 2024. Interest-bearing deposits increased by $2.0 million, or 1.6% when compared to third quarter of 2025 and decreased $5.2 million, or (3.9%) when compared to December 31, 2024. The changes in deposits were generally related to an increase in our number of customers as well as fluctuations in the operating account balances for our existing customers.
The Company's cost of funds was down to 1.36% for the quarter ending December 31, 2025, compared to 1.41% from the previous linked quarter and down from 2.04% for the same quarter last year. For the year ending December 31, 2025, the cost of funds decreased to 1.51% from 2.22% for the same period in 2024. Cost of funds decreased in response to decreases in the federal funds rate in 2024 and 2025 as well as the maturity of FHLB borrowings and brokered deposits over the past year. The FHLB borrowings and brokered deposits held during 2024 had a higher cost of funds.
Net-interest Income
Net-interest income for the fourth quarter of 2025 was $4.7 million, a decrease of $231 thousand, or (4.7%) from the third quarter of 2025 and an increase of $137 thousand, or 3.0% over the fourth quarter of 2024. For the year ending December 31, 2025, net-interest income was $18.9 million, an increase of $2.0 million, or 12.1% from the same period in 2024.
The Company's net interest margin for the fourth quarter of 2025 was down 47 basis points to 5.34% when compared to third quarter ending September 30, 2025, and down 24 basis points from 5.58% for the comparable period ended December 31, 2024. The net interest margin for the year ended December 31, 2025, increased to 5.71% compared to 5.57% for the same period in 2024. The decrease in the net interest margin in the fourth quarter of 2025 was due to three 25 basis point rate cuts implemented by the Federal Reserve from September through December 2025 and, to a limited extent, the change in the deposit mix between interest and non-interest-bearing accounts. The increase in the net interest margin when comparing the prior quarter and year ended December 31, 2024, was due to the decrease in the cost of funds as discussed above. The Company's primary source of net-interest income continues to be driven by interest on loans followed by other short-term investments.
Non-interest Income
Non-interest income for the fourth quarter of 2025 at $142 thousand was flat when compared to the third quarter of 2025 and up $20 thousand or 16.4% when compared to the same period in 2024. For the year ending December 31, 2025, non-interest income totaled $534 thousand, up $146 thousand, or 37.6% from linked period in 2024. Non-interest income continues to be driven primarily by fees on loans and deposit accounts.
Non-interest Expense
For the fourth quarter of 2025, non-interest expense totaled $2.8 million, a decrease of $122 thousand, or (4.1%) from the third quarter of 2025 and an increase of $210 thousand, or 8.0% when compared to same quarter in 2024. For the year ending December 31, 2025, non-interest expense increased $1.4 million, or 14.2%, to $11.4 million from linked period in 2024. The increases were driven primarily by an increase in salaries and employee benefits and other expense as the Company made small increases to staff to accommodate current and future growth as well as maintain our high standards of service and regulatory compliance. In addition, as inflation continues to increase costs for our third-party vendors and service providers, the Company's costs have risen as well. Nevertheless, the Company's efficiency ratio was 58.5% for the quarter ended December 31, 2025, compared to 58.2% at September 30, 2025, and 56.0% for the same quarter in 2024. The efficiency ratio for the year ending December 31, 2025, was 58.8% compared to 58% for the same period in 2024.
Net Income
For the fourth quarter of 2025 the Company's net income decreased $199 thousand to $1.3 million ($0.41 basic earnings per share) compared to $1.5 million, or $0.47 basic earnings per share for the third quarter of 2025. Profitability and basic earnings per share were flat when compared to the fourth quarter of 2024. For the year ending December 31, 2025, net income increased by $1.5 million, to $5.4 million ($1.71 basic earnings per share), compared to $3.9 million, or $1.29 basic earnings per share for 2024. The increase in net income for the year was driven by the Company's growth, expense management, and net interest margin.
For the year ending December 31, 2024, the return on average assets increased 34 basis points to 1.60% from 1.26% for the same period in 2024. For the year ending December 31, 2025, the return on average equity increased 179 basis points to 13.52% from 11.73% for the same period in 2024.
Capital Management and Subsequent Event
The Company continues to be well-capitalized and exceeds minimum regulatory requirement ratios with a tier 1 leverage ratio of 12.20%, tier 1 risk-based capital ratio of 16.19%, and a total risk-based capital ratio of 18.92%.
The book value of the Company's common stock was $13.50 as of December 31, 2025, up from $13.13 as of September 30, 2025, and up from $11.79 at December 31, 2024. The increase in the book value of the Company's common stock is primarily related to the additional income recorded in the quarter and year ending December 31, 2025, as well as the continued decrease in the unrealized loss on investment securities. The investment portfolio consists entirely of government agency or government sponsored enterprise securities and therefore, the risk of incurring an actual loss is unmeasurably low. Although the Company holds its investment securities ("securities") as available for sale, we do not have the intent to sell any securities currently. These securities are pledged to the Federal Home Loan Bank and provide the Company with liquidity by allowing us to borrow approximately 95% of the fair market value of the portfolio. Also, the securities are amortizing, which provides the Company with additional liquidity of approximately $650 thousand in monthly payments that are reinvested in higher yielding assets. As of December 31, 2025, the portfolio has an average life of 2.6 years.
On February 5, 2026, the Company declared a $0.09 cash dividend to shareholders of record as of February 20, 2026, payable on March 6, 2026.
ABOUT INFINITY BANCORP AND INFINITY BANK
Infinity Bank is the sole subsidiary of Infinity Bancorp. Infinity Bancorp, formed on October 21, 2022, is the bank holding company for Infinity Bank. The Bancorp does not have any operations other than through its sole subsidiary, Infinity Bank. The Bank is a community bank that commenced operations in February 2018. The Bank is focused on serving the banking needs of commercial businesses, professional service entities, their owners, employees, and families. The Bank offers a broad selection of depository products and services as well as business loan and commercial real estate financing products uniquely designed for each client. For more information about Infinity Bank and its services, please visit the website at www.infinity.bank
This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by use of words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions. Forward-looking statements are based upon various assumptions and analyses made by the Bancorp (which includes the Bank) considering management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guaranteeing future performance and are subject to risks, uncertainties, and other factors (many of which are beyond the Bancorp's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect the Bancorp's results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Bancorp's control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Bancorp; unanticipated or significant increases in loan losses; changes in accounting principles, policies or guidelines may cause the Bancorp's financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Bancorp's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Bancorp conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Bancorp currently anticipates; legislation or regulatory changes may adversely affect the Bancorp's business; technological changes may be more difficult or expensive than the Bancorp anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Bancorp anticipates; or litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Bancorp anticipates.
6 Hutton Centre Drive, Suite 100
Santa Ana, CA 92707
Bala Balkrishna | Victor Guerrero | Allison Duncan |
INFINITY BANCORP
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
December 31, | September 30, | December 31, | ||||||||||
| ASSETS: | ||||||||||||
| Cash and due from banks | $ | 97,077 | $ | 127,577 | $ | 69,057 | ||||||
| Securities available for sale | 27,106 | 28,718 | 34,947 | |||||||||
| Total Loans | 229,790 | 214,384 | 226,305 | |||||||||
| Allowance for credit losses | (3,639 | ) | (3,609 | ) | (3,702 | ) | ||||||
| Net Loans | 226,151 | 210,775 | 222,603 | |||||||||
| Premises and equipment, net | 1,276 | 1,185 | 1,307 | |||||||||
| Other assets | 4,377 | 4,465 | 4,753 | |||||||||
| TOTAL ASSETS | $ | 355,987 | $ | 372,720 | $ | 332,667 | ||||||
| LIABILITIES | ||||||||||||
| Deposits: | ||||||||||||
| Non-interest bearing | $ | 173,357 | $ | 198,424 | $ | 150,336 | ||||||
| Interest bearing | 128,994 | 127,029 | 134,156 | |||||||||
| Time certificates of deposit | 50 | 50 | 50 | |||||||||
| Total deposits | 302,401 | 325,503 | 284,542 | |||||||||
| Other liabilities | 2,290 | 2,184 | 2,363 | |||||||||
| FHLB and other borrowings | 5,000 | - | 5,000 | |||||||||
| Subordinated debt | 3,984 | 3,980 | 3,965 | |||||||||
| TOTAL LIABILITIES | 313,675 | 331,667 | 295,870 | |||||||||
| Stockholders' Equity: | ||||||||||||
| Common stock | 33,537 | 33,464 | 33,437 | |||||||||
| Retained earnings (Accumulated deficit) | 4,956 | 5,238 | 2,142 | |||||||||
| Net income | 5,364 | 4,079 | 3,877 | |||||||||
| Accumulated other comprehensive gain (loss) | (1,545 | ) | (1,728 | ) | (2,659 | ) | ||||||
| TOTAL STOCKHOLDERS' EQUITY | 42,312 | 41,053 | 36,797 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 355,987 | $ | 372,720 | $ | 332,667 | ||||||
INFINITY BANCORP
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
For the Three Months Ended | For the Year Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| Interest Income: | ||||||||||||||||||||
| Loans | $ | 4,631 | $ | 4,895 | $ | 5,159 | $ | 19,499 | $ | 19,380 | ||||||||||
| Investment securities | 113 | 123 | 137 | 498 | 580 | |||||||||||||||
| Other short-term investments | 1,038 | 995 | 777 | 3,312 | 2,873 | |||||||||||||||
| Total interest income | 5,782 | 6,013 | 6,073 | 23,309 | 22,833 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 1,002 | 1,023 | 1,328 | 4,121 | 5,021 | |||||||||||||||
| Borrowed funds | 68 | 47 | 170 | 327 | 989 | |||||||||||||||
| Total interest expense | 1,070 | 1,070 | 1,498 | 4,448 | 6,010 | |||||||||||||||
| Net interest income | 4,712 | 4,943 | 4,575 | 18,861 | 16,823 | |||||||||||||||
| Provision for credit losses | 349 | - | 240 | 495 | 1,594 | |||||||||||||||
| Net interest income after provision for credit losses | 4,363 | 4,943 | 4,335 | 18,366 | 15,229 | |||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Service charges | 91 | 91 | 66 | 334 | 213 | |||||||||||||||
| Other income | 51 | 52 | 56 | 200 | 175 | |||||||||||||||
| Total non-interest income | 142 | 143 | 122 | 534 | 388 | |||||||||||||||
| Non-interest expense: | ||||||||||||||||||||
| Salaries and employee benefits | 2,011 | 2,151 | 1,898 | 8,300 | 7,283 | |||||||||||||||
| Occupancy | 62 | 61 | 63 | 245 | 253 | |||||||||||||||
| Furniture, fixture & equipment | 21 | 37 | 36 | 135 | 159 | |||||||||||||||
| Data processing | 154 | 142 | 133 | 579 | 544 | |||||||||||||||
| Professional & legal | 175 | 161 | 214 | 612 | 637 | |||||||||||||||
| Marketing | 93 | 100 | 62 | 314 | 245 | |||||||||||||||
| Other expense | 323 | 309 | 223 | 1,213 | 856 | |||||||||||||||
| Total non-interest expense | 2,839 | 2,961 | 2,629 | 11,398 | 9,977 | |||||||||||||||
| Income before taxes | 1,666 | 2,125 | 1,828 | 7,502 | 5,640 | |||||||||||||||
| Income tax expense | 381 | 641 | 553 | 2,138 | 1,763 | |||||||||||||||
| Net Income | $ | 1,285 | $ | 1,484 | $ | 1,275 | $ | 5,364 | $ | 3,877 | ||||||||||
| Earnings per share ("EPS"): Basic | $ | 0.41 | $ | 0.47 | $ | 0.41 | $ | 1.71 | $ | 1.29 | ||||||||||
| Earnings per share ("EPS"): Dilutive | $ | 0.38 | $ | 0.44 | $ | 0.41 | $ | 1.64 | $ | 1.29 | ||||||||||
| Common shares outstanding | 3,133,641 | 3,127,641 | 3,121,015 | 3,133,641 | 3,121,015 | |||||||||||||||
INFINITY BANCORP
UNAUDITED CONSOLIDATED FINANCIAL HIGHLIGHTS
At and For the Three Months Ended | At and For the Year Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| Performance Ratios: | ||||||||||||||||||||
| Net interest margin | 5.34 | % | 5.81 | % | 5.58 | % | 5.71 | % | 5.57 | % | ||||||||||
| Cost of funds | 1.36 | % | 1.41 | % | 2.04 | % | 1.51 | % | 2.22 | % | ||||||||||
| Loan to deposit ratio | 75.99 | % | 65.86 | % | 79.53 | % | 75.99 | % | 79.53 | % | ||||||||||
| Yield on total loans | 8.40 | % | 8.92 | % | 9.12 | % | 8.79 | % | 9.31 | % | ||||||||||
| Return on average assets | 1.43 | % | 1.71 | % | 1.53 | % | 1.60 | % | 1.26 | % | ||||||||||
| Return on average equity | 12.44 | % | 14.57 | % | 13.96 | % | 13.52 | % | 11.73 | % | ||||||||||
| Efficiency ratio | 58.49 | % | 58.22 | % | 55.97 | % | 58.77 | % | 57.97 | % | ||||||||||
| Book value of common stock | $ | 13.50 | $ | 13.13 | $ | 11.79 | ||||||||||||||
| Asset Quality Summary: | ||||||||||||||||||||
| Allowance for credit losses/Total loans | 1.58 | % | 1.68 | % | 1.64 | % | 1.58 | % | 1.64 | % | ||||||||||
| Capital Ratios: | ||||||||||||||||||||
| Tier 1 risk-based capital ratio | 16.19 | % | 16.49 | % | 15.28 | % | 16.19 | % | 15.28 | % | ||||||||||
| Total risk-based capital ratio | 18.92 | % | 19.29 | % | 18.04 | % | 18.92 | % | 18.04 | % | ||||||||||
| Tier 1 leverage ratio | 12.20 | % | 12.21 | % | 11.95 | % | 12.20 | % | 11.95 | % | ||||||||||
SOURCE: Infinity Bank Santa Ana California
View the original press release on ACCESS Newswire