Hoyne Bancorp, Inc. (HYNE) 2025 Annual Report Summary
Business Context and Reporting Period
This Form 10-K covers the fiscal year ended December 31, 2025. The filing marks a pivotal transition for the company: on December 3, 2025, Hoyne Savings, MHC converted from a mutual holding company structure to a stock holding company structure, forming Hoyne Bancorp, Inc. as the new parent entity. The company operates as a savings and loan holding company for Hoyne Savings Bank, a community bank headquartered in Oak Park, Illinois, serving the Chicago metropolitan area. The bank focuses on commercial real estate, commercial and industrial loans, and residential mortgages.
Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Total Assets | $489.4 million | $449.5 million |
| Total Loans (Net) | $267.9 million | $240.9 million |
| Total Deposits | $321.6 million | $357.3 million |
| Stockholders' Equity | $161.4 million | $85.8 million |
| Net Income (Loss) | $232,690 | ($1,957,817) |
| Net Interest Margin | 3.24% | 2.38% |
| Non-Performing Assets | 0.24% of Total Assets | 0.40% of Total Assets |
| Allowance for Credit Losses | $2.68 million | $2.13 million |
Material Changes vs. Prior Period
- Capital Structure Transformation: The company completed its initial public offering (IPO) on December 3, 2025, selling 7,935,000 shares at $10.00 per share. This raised approximately $79.4 million in gross proceeds, increasing stockholders' equity by $75.6 million (88.0%) compared to 2024.
- Profitability Turnaround: The company reported a net income of $233,000 in 2025, reversing a net loss of $2.0 million in 2024. This improvement was driven by a $3.6 million increase in interest income and a $800,000 decrease in interest expense.
- Asset Growth: Total assets increased by $39.9 million (8.9%), primarily due to a $27.0 million increase in the loan portfolio and a $32.3 million increase in cash and cash equivalents resulting from the IPO.
- Deposit Decline: Total deposits decreased by $35.7 million (10.0%), largely due to a $31.6 million reduction in certificates of deposit as the company managed the interest rate environment.
- Portfolio Shift: The loan portfolio shifted toward commercial lending. Commercial real estate and commercial and industrial loans now comprise 56.2% of the total loan portfolio, up from a lower percentage in prior years, while residential loans decreased as a percentage of the total.
Guidance, Outlook, and Risks
Management Commentary: Management highlights the successful conversion to a stock form of ownership and the strengthening of the capital base. The company intends to use the proceeds from the offering to fund loan growth and support future business strategies. The company currently has no agreements to acquire other financial institutions but may pursue such opportunities in the future.
Risks and Contingencies:
- Material Weakness in Internal Controls: Management identified a material weakness in internal control over financial reporting related to the accounting for deferred tax assets and stock issuance activity during the reorganization. This was remediated as of the filing date, but it resulted in the disclosure controls and procedures being deemed ineffective as of December 31, 2025.
- Interest Rate Risk: The company is exposed to changes in interest rates. Modeling indicates that a 300 basis point increase in rates would decrease net interest income by 1.5% and net portfolio value by 10.2%.
- Credit Risk: While asset quality remains high with no charge-offs in 2025, the company notes that commercial real estate lending involves greater risk than residential lending due to larger loan sizes and dependency on property cash flows.
- Regulatory Compliance: As a bank holding company, the entity is subject to extensive regulation by the Federal Reserve Board, FDIC, and Illinois Department of Financial & Professional Regulation.
Investor Verification Checklist
- Verify the Remediation of Internal Controls: Confirm that the material weakness regarding deferred tax assets and stock issuance has been fully addressed and that no further restatements are anticipated.
- Assess Deposit Retention: Monitor the renewal rate of the $148.6 million in certificates of deposit maturing within one year, as a significant outflow could impact liquidity and funding costs.
- Review Commercial Loan Concentration: Analyze the performance of the growing commercial real estate and construction loan portfolio (56.2% of total loans) for early signs of stress in the local Chicago market.
- Monitor Capital Ratios: Verify that the company maintains its "well-capitalized" status under the Community Bank Leverage Ratio Framework (CBLRF), which requires a Tier 1 leverage ratio exceeding 9.0%.
- Check Dividend Policy: Note that the company currently does not intend to pay cash dividends; verify if this policy changes as the company stabilizes post-IPO.