Hoyne Bancorp, Inc. Annual Report: A Year in Review

I’ve put together this guide to help you understand how Hoyne Bancorp performed this year. My goal is to turn complex financial filings into clear information to help you decide if this company fits your investment goals.

---

1. What does this company do?

Hoyne Bancorp is a neighborhood bank based in Oak Park, Illinois. With a 138-year history, they focus on the basics: taking in local deposits and lending that money out. While they started as a residential mortgage lender, they are now shifting toward commercial real estate and business loans. The bank operates through its subsidiary, Hoyne Savings Bank, serving the Chicago area and Cook County.

2. A Major Milestone: Going Public

The biggest news this year is that Hoyne became a publicly traded company. On December 3, 2025, they converted from a mutual holding company—where depositors owned the bank—to a stock-based company. They raised $79.4 million by selling 7,940,000 shares at $10.00 each. These shares now trade on the Nasdaq under the symbol "HYNE." This cash boost significantly strengthened the bank’s equity, providing a solid foundation for future lending and growth.

3. Financial Health and Strategy

As of December 31, 2025, the bank held $489.4 million in assets and $385.2 million in deposits. They are currently using their new capital to pivot their loan portfolio.

• The Shift: They are moving away from being purely a residential mortgage lender. Commercial real estate and business loans now make up 56.2% of their portfolio, up from 48.5% last year. This shift aims to improve profit margins, as commercial loans typically pay more than traditional home mortgages.
• Conservative Growth: They maintain a capital ratio of 14.8%. This is well above the 5.0% "well-capitalized" regulatory requirement. This conservative approach ensures they have a strong buffer to absorb potential losses while growing steadily.

4. Major Wins and Challenges

• The Win: Raising $79.4 million significantly strengthened the balance sheet. This increased the bank’s tangible book value per share to $12.45. This cushion allows the bank to issue larger commercial loans without hitting regulatory limits.
• The Challenge: They operate in a crowded market and compete with larger banks that often have cheaper access to cash. They also face interest rate risks. With a profit margin of 2.85%, the bank is sensitive to interest rate changes. Because many of their loans have fixed rates, a rapid rise in interest rates can increase the cost of deposits faster than the income they earn from loans, which squeezes profits.

5. Key Risks for Investors

The biggest risk is the concentration of loans in the Illinois real estate market. About 82% of their loans are secured by property in the Chicago area. A local economic downturn could lead to more bad loans, which currently sit at a low 0.45%. Also, as a new public company, they face about $650,000 in new annual costs for regulatory compliance and shareholder relations.

6. Future Outlook

Now that they are a public company, they are playing the "long game." They plan to remain a local staple in Cook County while using their new resources to potentially acquire other financial companies or branches. Management prefers to grow by issuing more commercial loans, but they are open to acquisitions that boost earnings within two years.

---

Final Thought for Your Decision: When considering an investment in Hoyne Bancorp, weigh their strong capital position and shift toward higher-margin commercial lending against the risks of a concentrated local real estate portfolio and the competitive pressures of the Chicago banking market. As a newly public company, their success will largely depend on how effectively they deploy their new capital to scale these commercial operations.