Hoyne Bancorp Swings to Profit Amidst Reorganization

Ticker: HYNE · Form: 10-Q · Filed: Nov 13, 2025 · CIK: 2073153

Sentiment: bullish

Topics: Regional Banking, Financial Performance, Mutual-to-Stock Conversion, Net Interest Income, Asset Growth, SEC Filings, Community Banking

Related Tickers: HYNE

TL;DR

**Hoyne Bancorp is finally turning the corner, but the real play is the upcoming conversion.**

AI Summary

Hoyne Bancorp, Inc. reported a significant turnaround in net income for the nine months ended September 30, 2025, reaching $31,086, a substantial improvement from a net loss of $1,535,928 in the prior year period. This was primarily driven by a robust increase in net interest income, which rose to $9,890,746 for the nine months ended September 30, 2025, up from $6,854,365 in the same period of 2024. Total assets increased to $454,753,756 as of September 30, 2025, from $449,513,195 at December 31, 2024. Loans receivable, net, grew to $249,401,082 from $240,928,137, while deposits slightly decreased to $356,820,526 from $357,291,930. The allowance for credit losses increased to $2,546,819 from $2,125,993, reflecting a higher provision for credit losses of $405,000 for the nine months ended September 30, 2025, compared to $351,000 in 2024. A notable strategic change is the ongoing conversion of Hoyne Savings, MHC to a stock form of organization, with Hoyne Bancorp, Inc. serving as the future stock holding company, though this reorganization was not yet completed as of September 30, 2025. The company also saw a significant increase in accumulated other comprehensive income, moving from a loss of $15,890,577 at December 31, 2024, to a loss of $11,603,379 at September 30, 2025, largely due to unrealized gains on available-for-sale securities.

Why It Matters

This filing reveals Hoyne Bancorp's successful pivot to profitability, driven by strong net interest income growth, which is crucial for investor confidence in a competitive banking landscape. The ongoing conversion to a stock holding company structure could unlock significant value for future shareholders by providing greater access to capital markets and potentially increasing liquidity. For customers, a more financially stable bank could mean continued or improved service offerings. In the broader market, this move signifies a small regional bank adapting its structure to enhance its competitive position against larger financial institutions, potentially leading to more dynamic local banking services.

Risk Assessment

Risk Level: medium — The risk level is medium due to the ongoing reorganization into a stock holding company, which introduces execution risk and regulatory uncertainties, as the conversion was not completed by September 30, 2025. While net income improved, the slight decrease in deposits to $356,820,526 from $357,291,930 indicates potential funding challenges or competitive pressures.

Analyst Insight

Investors should monitor the progress of Hoyne Bancorp's conversion to a stock holding company closely, as this event could be a significant catalyst for value creation. Evaluate the post-conversion capital structure and management's strategy for deploying new capital. Consider initiating a position if the conversion details offer a clear path to enhanced shareholder returns.

Financial Highlights

debt To Equity
N/A
revenue
$14,774,931
operating Margin
N/A
total Assets
$454,753,756
total Debt
N/A
net Income
$31,086
eps
N/A
gross Margin
N/A
cash Position
$26,928,118
revenue Growth
+20.75%

Revenue Breakdown

SegmentRevenueGrowth
Loans Receivable Interest Income$11,637,674+43.97%
Investment Securities Interest Income$2,371,395-27.73%
Total Interest Income$14,774,931+20.75%
Interest Expense on Deposits$4,884,185-9.24%
Net Interest Income$9,890,746+44.31%
Total Noninterest Income$648,376-25.73%

Key Numbers

Key Players & Entities

FAQ

What were Hoyne Bancorp's key financial results for the nine months ended September 30, 2025?

Hoyne Bancorp, Inc. reported a net income of $31,086 for the nine months ended September 30, 2025, a significant improvement from a net loss of $1,535,928 in the prior year. Net interest income increased to $9,890,746 from $6,854,365 in the same period of 2024.

How did Hoyne Bancorp's assets and liabilities change as of September 30, 2025?

Total assets for Hoyne Bancorp, Inc. increased to $454,753,756 as of September 30, 2025, from $449,513,195 at December 31, 2024. Loans receivable, net, grew to $249,401,082, while deposits slightly decreased to $356,820,526 from $357,291,930.

What is the significance of Hoyne Bancorp's mutual-to-stock conversion?

The conversion of Hoyne Savings, MHC to a stock form of organization, with Hoyne Bancorp, Inc. as the stock holding company, is a strategic move to potentially enhance capital-raising capabilities and provide greater flexibility for growth. As of September 30, 2025, the reorganization had not yet been completed.

What are the primary risks identified in Hoyne Bancorp's 10-Q filing?

The primary risks include those associated with the ongoing reorganization, as the conversion was not completed by September 30, 2025, introducing execution and regulatory uncertainties. Additionally, the slight decrease in deposits suggests potential funding challenges or increased competition in the deposit market.

How did Hoyne Bancorp's equity change during the period?

Total equity for Hoyne Bancorp, Inc. increased to $90,148,646 as of September 30, 2025, from $85,830,362 at December 31, 2024. This increase was significantly influenced by a $4,287,198 change in unrealized gain on available-for-sale securities, net of tax.

What was the trend in Hoyne Bancorp's provision for credit losses?

The provision for credit losses for Hoyne Bancorp, Inc. increased to $405,000 for the nine months ended September 30, 2025, compared to $351,000 for the same period in 2024. This led to an increase in the allowance for credit losses to $2,546,819.

What impact did investment securities have on Hoyne Bancorp's financial results?

Investment securities contributed $2,371,395 in interest income for the nine months ended September 30, 2025, down from $3,281,376 in 2024. However, unrealized gains on available-for-sale securities significantly improved accumulated other comprehensive loss by $4,287,198.

What is Hoyne Bancorp's principal business activity?

Hoyne Bancorp, Inc., through Hoyne Savings Bank, operates as a single segment primarily engaged in attracting retail deposits from the general public and investing those funds. Its principal lending products are fixed-rate mortgage loans secured by residential properties and commercial loans.

What should investors consider regarding Hoyne Bancorp's future outlook?

Investors should consider the potential for enhanced shareholder value post-conversion to a stock holding company, which could provide greater access to capital. The improved net income and growing loan portfolio suggest a positive operational trajectory, but the slight deposit decline warrants attention.

Has Hoyne Bancorp, Inc. completed its reorganization as of the filing date?

No, as of September 30, 2025, the reorganization of Hoyne Savings, MHC into the stock form of organization had not yet been completed. Hoyne Bancorp, Inc. had no assets or liabilities and had not conducted any business activities other than organizational activities.

Risk Factors

Industry Context

The banking industry is currently navigating a complex environment characterized by evolving interest rate landscapes and increasing regulatory scrutiny. While net interest margins have shown improvement for some institutions due to rising rates, competition for deposits remains intense. Digital transformation and cybersecurity are also critical focus areas, alongside managing credit risk in a potentially slowing economy.

Regulatory Implications

Hoyne Bancorp operates under strict banking regulations, including capital adequacy requirements and consumer protection laws. The ongoing organizational conversion introduces specific regulatory hurdles and compliance considerations. Any changes in monetary policy or banking legislation could materially affect the company's operations and profitability.

What Investors Should Do

  1. Monitor the progress and impact of the organizational conversion from MHC to stock form.
  2. Analyze the trend in net interest income and its drivers, particularly loan growth versus investment income.
  3. Assess the adequacy of the allowance for credit losses in relation to the growing loan portfolio.
  4. Evaluate the impact of the improved but still substantial accumulated other comprehensive loss on capital and liquidity.

Key Dates

Glossary

Net Interest Income
The difference between the interest income generated by a bank and the interest it pays out to its depositors and lenders. (A key indicator of a bank's core profitability from its lending and borrowing activities. Hoyne Bancorp saw a significant increase in this metric.)
Allowance for Credit Losses
An estimate of the amount of loans that a financial institution expects to be uncollectible. (Reflects the bank's assessment of the risk in its loan portfolio. An increase suggests higher perceived risk or a proactive approach to provisioning.)
Available-for-Sale (AFS) Securities
Investments in debt or equity securities that are not classified as held-to-maturity or trading securities. Their unrealized gains and losses are reported in other comprehensive income. (The unrealized gains on these securities significantly impacted Hoyne Bancorp's accumulated other comprehensive income, improving its overall equity position.)
Accumulated Other Comprehensive Income (Loss)
A component of shareholders' equity that includes unrealized gains and losses on certain investments and other items not included in net income. (The improvement in this account from a significant loss to a smaller loss indicates a positive shift in the value of certain assets, primarily AFS securities.)
Hoyne Savings, MHC
A mutual holding company that is the parent of Hoyne Bancorp, Inc. The 'MHC' signifies 'Mutual Holding Company'. (The ongoing conversion of this entity to a stock form is a significant strategic event for the company.)
Real Estate Owned (REO)
Properties that a financial institution has acquired through foreclosure and now holds on its balance sheet. (The increase in REO suggests a rise in foreclosed properties, which can carry management and disposition costs.)

Year-Over-Year Comparison

Compared to the prior year period, Hoyne Bancorp has demonstrated a remarkable financial turnaround, shifting from a significant net loss to a modest profit of $31,086 for the nine months ended September 30, 2025. This improvement is largely attributed to a substantial 44.31% increase in net interest income, reaching $9,890,746, driven by loan growth. Total assets have seen a slight increase to $454,753,756. While deposits remained relatively stable, the allowance for credit losses and its provision have increased, signaling a cautious approach to credit risk. A notable positive development is the improvement in accumulated other comprehensive loss, though it remains a significant factor.

Filing Stats: 4,423 words · 18 min read · ~15 pages · Grade level 17.3 · Accepted 2025-11-13 16:38:06

Filing Documents

Financial Statements

Financial Statements 4 Consolidated Statement of Financial Condition as of September 30, 2025 and December 31, 2024 4 Consolidated Statement of Operations and Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2025 and 2024 5 Consolidated Statement of Changes in Equity for the Three and Nine Months Ended September 30, 2025 and 2024 6 Consolidated Statement of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 7 Notes to the Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 39 Item 4.

Controls and Procedures

Controls and Procedures 39 Part II Other Information 40 Item 1.

Legal Proceedings

Legal Proceedings 40 Item 1A.

Risk Factors

Risk Factors 40 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 40 Item 3. Defaults Upon Senior Securities 40 Item 4. Mine Safety Disclosures 40 Item 5. Other Information 40 Item 6. Exhibits 40 Exhibit Index 41

Signatures

Signatures 42 2 Table of Contents Explanatory Note Hoyne Bancorp, Inc. was formed to serve as the stock holding company for Hoyne Savings Bank in connection with the conversion of Hoyne Savings, MHC, the mutual holding company and sole stockholder of Hoyne Financial Corporation and Hoyne Savings Bank, from the mutual form of organization to the stock form of organization. As of September 30, 2025, the reorganization had not yet been completed, and Hoyne Bancorp, Inc. had no assets or liabilities and had not conducted any business activities other than organizational activities. Accordingly, the unaudited consolidated financial statements and other financial information contained in this Quarterly Report on Form 10-Q relate solely to the consolidated financial results of Hoyne Savings, MHC, Hoyne Financial Corporation, and Hoyne Savings Bank. The unaudited consolidated financial statements and other financial information contained in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and related notes of Hoyne Savings, MHC at and for the years ended December 31, 2024 and 2023 contained in Hoyne Bancorp Inc.'s definitive prospectus dated September 30, 2025, as filed with the Securities Exchange Commission pursuant to Securities Act Rule 424(b)(3) on October 2, 2025 (the "Prospectus"). 3 Table of Contents

—FINANCIAL INFORMATION

PART I —FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements HOYNE SAVINGS, MHC AND SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL CONDITION September 30, 2025 December 31, 2024 (unaudited) (audited) Assets Cash and cash equivalents $ 26,928,118 $ 15,327,048 Certificates of deposit 870,000 1,350,000 Investment securities: Available-for-sale, (amortized cost of $ 125,068,724 at September 30, 2025 and $ 138,780,879 at December 31, 2024 respectively) 108,840,628 116,554,742 Held-to-maturity, at amortized cost 29,803,754 34,021,548 Federal Home Loan Bank of Chicago stock (FHLB) 1,165,700 1,165,700 Bankers Bank stock 992,250 992,250 Real Estate Owned (REO) 868,327 138,900 Loans receivable, net of allowance for credit losses of $ 2,546,819 at September 30, 2025 and $ 2,125,993 at December 31, 2024 249,401,082 240,928,137 Premises and equipment, net 7,330,738 7,749,515 Accrued interest receivable 1,393,852 1,481,853 Bank-owned life insurance (BOLI) 14,782,934 16,990,161 Core deposit intangibles 184,000 322,000 Deferred tax assets 9,198,324 10,805,732 Other assets 2,994,049 1,685,609 Total assets $ 454,753,756 $ 449,513,195 Liabilities and Equity Liabilities: Deposits $ 356,820,526 $ 357,291,930 Advances from borrowers for taxes and insurance 3,733,780 2,753,319 Accounts payable and accrued expenses 4,050,804 3,637,584 Total liabilities 364,605,110 363,682,833 Equity: Retained earnings 101,752,025 101,720,939 Accumulated other comprehensive loss ( 11,603,379 ) ( 15,890,577 ) Total equity 90,148,646 85,830,362 Total liabilities and equity $ 454,753,756 $ 449,513,195 The accompanying notes are an integral part of these condensed consolidated financial statements . 4 Table of Contents HOYNE SAVINGS, MHC AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three and Nine Months Ended September 30, 2025 a

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