QUILLAN FALLS, Wis., July 28, 2026. Quillan Falls Bancorp, Inc. (OTCQX: QFLB), the holding company for Quillan Falls Savings Bank, today reported net income of $1,562,000, or $0.65 per diluted share, for the quarter ended June 30, 2026, compared with $1,318,000, or $0.54 per diluted share, for the second quarter of 2025.
For the first six months of 2026, net income was $3,051,000, or $1.26 per diluted share, compared with $2,588,000, or $1.06 per diluted share, for the same period of 2025.
“Our margin kept recovering as older loans repriced, and we grew deposits without paying up for them. Credit remains clean across our farm, commercial and home loans, and capital keeps building.”
Thomas R. Kessling, President and Chief Executive Officer
Second-quarter highlights
- Net interest margin of 3.41%, up from 3.18% a year earlier and 3.33% in the first quarter of 2026.
- Net loans of $468.9 million, up 4.4% from June 30, 2025. Deposits of $548.3 million, up 3.1%, with no brokered deposits.
- Nonperforming assets of 0.31% of total assets, down from 0.38%.
- Book value per share of $26.64, up 8.1%. The Bank’s Tier 1 leverage ratio was 10.4%, well above the well-capitalized level.
Net interest income
Net interest income was $5,115,000, up $533,000, or 11.6%, from the second quarter of 2025. Interest income rose $445,000 to $7,690,000 as loan yields improved, and interest expense fell $88,000 to $2,575,000 as rates on maturing certificates of deposit eased.
Credit quality
The provision for credit losses was $110,000, compared with $150,000 a year earlier. Nonperforming assets were $1,990,000 at June 30, 2026, compared with $2,350,000 at June 30, 2025. The allowance for credit losses was $5,322,000, or 1.12% of total loans. Net charge-offs for the quarter were $14,000.
Noninterest income and expense
Noninterest income was $1,020,000, up 5.7%, led by trust and wealth management fees and debit card income. Noninterest expense was $3,995,000, up 8.0%, mainly from salaries and benefits and the core banking system upgrade. The efficiency ratio improved to 65.1% from 66.7%.
Capital and dividends
Shareholders’ equity was $64.4 million at June 30, 2026, or $26.64 per share, compared with $59.9 million, or $24.65 per share, a year earlier. During the quarter the company repurchased 4,200 shares at an average price of $31.12.
On May 20, 2026, the board declared a quarterly cash dividend of $0.24 per share, paid June 17, 2026 to shareholders of record on June 3, 2026.
Financial tables
| Item | Q2 2026 | Q2 2025 | 6 mo. 2026 | 6 mo. 2025 |
|---|---|---|---|---|
| Interest income | 7,690 | 7,245 | 15,230 | 14,363 |
| Interest expense | 2,575 | 2,663 | 5,176 | 5,353 |
| Net interest income | 5,115 | 4,582 | 10,054 | 9,010 |
| Provision for credit losses | 110 | 150 | 200 | 270 |
| Net interest income after provision | 5,005 | 4,432 | 9,854 | 8,740 |
| Noninterest income | 1,020 | 965 | 1,968 | 1,877 |
| Noninterest expense | 3,995 | 3,700 | 7,857 | 7,278 |
| Income before income taxes | 2,030 | 1,697 | 3,965 | 3,339 |
| Income tax expense | 468 | 379 | 914 | 751 |
| Net income | $1,562 | $1,318 | $3,051 | $2,588 |
| Diluted earnings per share | $0.65 | $0.54 | $1.26 | $1.06 |
| Dividends declared per share | $0.24 | $0.23 | $0.48 | $0.46 |
| Weighted average diluted shares | 2,421,300 | 2,433,900 | 2,422,600 | 2,435,000 |
Consolidated. Dollars in thousands, except per-share data.
| Item | June 30, 2026 | June 30, 2025 |
|---|---|---|
| Cash and cash equivalents | $21,486 | $19,730 |
| Securities available for sale | 111,952 | 110,543 |
| Loans, net of allowance of $5,322 and $5,046 | 468,913 | 449,187 |
| Premises and equipment | 12,384 | 12,910 |
| Bank-owned life insurance and other assets | 27,077 | 26,027 |
| Total assets | $641,812 | $618,397 |
| Deposits | $548,296 | $531,684 |
| Federal Home Loan Bank advances | 22,000 | 20,000 |
| Other liabilities | 7,144 | 6,823 |
| Shareholders’ equity | 64,372 | 59,890 |
| Total liabilities and shareholders’ equity | $641,812 | $618,397 |
Consolidated. Dollars in thousands.
| Item | Q2 2026 | Q2 2025 |
|---|---|---|
| Return on average assets (annualized) | 0.98% | 0.86% |
| Return on average equity (annualized) | 9.80% | 8.90% |
| Net interest margin | 3.41% | 3.18% |
| Efficiency ratio | 65.1% | 66.7% |
| Nonperforming assets to total assets | 0.31% | 0.38% |
| Allowance for credit losses to total loans | 1.12% | 1.11% |
| Tier 1 leverage ratio (Bank) | 10.4% | 10.0% |
| Book value per share | $26.64 | $24.65 |
| Shares outstanding | 2,416,250 | 2,429,600 |
About Quillan Falls Bancorp, Inc.
Quillan Falls Bancorp, Inc. is the holding company for Quillan Falls Savings Bank, founded in 1911 and based in Quillan Falls, Wisconsin. The bank serves Marder and Ashby counties from nine branches. The company’s common stock is quoted on the OTCQX Best Market under the symbol QFLB. The company reports under OTC Markets’ Alternative Reporting Standard and does not file reports with the Securities and Exchange Commission.
Forward-looking statements
This release contains forward-looking statements, including statements about net interest margin, loan and deposit growth, credit quality, dividends and capital. They are based on management’s current expectations and are subject to risks and uncertainties, including changes in interest rates, local economic and agricultural conditions, competition, regulation and the value of the securities portfolio. Actual results may differ materially. Quillan Falls Bancorp undertakes no obligation to update any forward-looking statement after the date it is made.