Key Highlights

  • West Coast Community Bancorp posted the highest margin of the nine banks at 5.18%, against 3.41% at Camden National.
  • Eight of the nine banks widened their margins from a year earlier; West Coast's 5.18% was down from 5.26%.
  • Norwood Financial showed the largest year-over-year gain, 38 basis points to 4.01%.
  • The simple average margin across the nine was about 4.13%, a calculated figure.
  • Several banks flagged one-offs behind the margin, including Norwood's bankruptcy payoff and Camden's $4.2 million of fair value accretion.

Which Smaller Banks Posted the Highest Net Interest Margins in Their October 27 Results?

Nine banks reported third-quarter results on Tuesday, October 27, and their margins spread from 5.18% to 3.41%. West Coast Community Bancorp (NASDAQ:WCCB) reported 5.18%, First Financial (NASDAQ:THFF) 4.51%, First Community Bankshares (NASDAQ:FCBC) 4.46%, Eagle Bancorp Montana (NASDAQ:EBMT) 4.12%, First Commonwealth Financial (NYSE:FCF) 4.11% and Norwood Financial (NASDAQ:NWFL) 4.01%. NBT Bancorp (NASDAQ:NBTB) posted 3.78%, Franklin Financial (NASDAQ:FRAF) 3.58% and Camden National (NASDAQ:CAC) 3.41%.

Each company states its margin on its own basis, some taxable-equivalent and some GAAP, so the ranking is indicative rather than exact. Most of the releases gave no numeric guidance, which leaves the margin trend as the main forward question.

West Coast Community Bancorp: Did a Rebound to 5.18% Drive a Record Quarter?

Net income was $16.7 million, up 38.8% from $12.1 million, or $1.59 per diluted share ($1.50 adjusted) against $1.35 expected as screened. The margin recovered from 4.90% in the second quarter but sat below 5.26% a year ago, with the adjusted taxable-equivalent figure at 5.20%. Cost of funds fell to 1.31% from 1.59%, the efficiency ratio was 42.31%, and the quarterly dividend rose $0.04 to $0.29.

First Financial: How Did Record Net Interest Income Reach a 4.51% Margin?

Diluted EPS was $2.31 against $1.75 a year earlier and a screen estimate of $2.03, a 14.07% surprise as screened. Net interest income rose 16.3% to a record $63.5 million as the margin widened from 4.25%, helped by the CedarStone Financial acquisition that closed on March 1, 2026. The agreement to acquire First Illinois is expected to close in the first quarter of 2027.

First Community Bankshares: Why Did a 4.46% Margin Come With Faster Income Growth?

Net interest income was $35.87 million, and on a taxable-equivalent basis it rose 14.72%, which the company tied to higher average earning assets and lower funding costs. The margin edged up from 4.43%, while the spread widened 10 basis points to 4.16%. Diluted EPS was $0.81 against $0.67, adjusted EPS was $0.78 against a $0.77 screen estimate, and the Hometown Bancshares deal from the first quarter of 2026 supports the growth.

Eagle Bancorp Montana: Did Record Loan Growth Cost Profit at a 4.12% Margin?

Net income was $3.014 million, or $0.38 per diluted share, below $0.47 in the second quarter and a $0.54 screen estimate, a negative 29.19% surprise as screened. The margin slipped 3 basis points from June but was 18 basis points above a year earlier. Loans grew a record $159.0 million, and borrowings rose to $196.8 million from $52.1 million to fund them.

First Commonwealth Financial: What Lifted the Margin to 4.11%?

Core EPS was $0.45 against $0.39 a year earlier and a $0.46 estimate. The taxable-equivalent margin rose 10 basis points from the second quarter and 19 basis points from a year earlier, mostly on a 7 basis point drop in deposit costs. Net interest income was $116.3 million, but the provision rose to $14.2 million and nonperforming loans reached $95.2 million, or 0.99% of loans.

Norwood Financial: Did a Bankruptcy Payoff Flatter the 4.01% Margin?

Record net income of $11.763 million, or $1.08 per diluted share, compared with $0.89 a year earlier and a $0.95 estimate as screened. The fully taxable equivalent margin rose 38 basis points from a year ago and 11 from the prior quarter. Management credited balance sheet management and a one-time benefit from a borrower bankruptcy resolution, which the release does not quantify. Nonperforming loans rose to 0.73% of loans from 0.36%.

NBT Bancorp: How Did a 3.78% Margin Support a Higher Dividend?

Diluted EPS was $1.11 against $1.03 a year earlier and a $1.09 screen estimate. Net interest income rose 5.5% to $142.1 million, and the margin was up 12 basis points on the year, aided by organic loan growth and a $1.5 million rise in purchase accounting accretion. The fourth-quarter dividend was raised 8.1% to $0.40 per share.

Franklin Financial: Did a 3.58% Margin Hide Rising Nonperforming Loans?

Net income was $8.5 million, or $1.89 per diluted share, against $1.19 a year earlier and a $1.45 estimate, a 30.34% surprise as screened. Net interest income rose 11.0% to $20.2 million, and the margin widened from 3.32% a year ago and 3.50% in the second quarter. Nonperforming loans reached $17.8 million, or 1.11% of gross loans, versus 0.55% at year-end 2025.

Camden National: Is a 3.41% Margin Carrying Profit While Loans Stall?

Diluted EPS was $1.34 against $1.25 a year earlier, in line with the estimate. The margin widened 15 basis points from the second quarter and 25 from a year ago, and $4.2 million of net fair value mark accretion added 31 basis points. Loans were flat at $5.00 billion while deposits rose 8% year over year to $5.85 billion.

Net Interest Margins Compared: How Wide Is the Gap and Who Gained Most Year Over Year?

The gap between West Coast's 5.18% and Camden's 3.41% is 1.77 percentage points (calculated). The simple average of the nine margins is about 4.13% (calculated), and six of the nine reported 4.01% or higher. Eagle Bancorp Montana and First Commonwealth Financial are separated by one basis point, at 4.12% and 4.11%.

Using each company's stated year-ago margin, the changes were: Norwood +38 basis points, First Financial and Franklin Financial +26 each, Camden +25, First Commonwealth +19, Eagle +18, NBT +12, First Community +3 and West Coast minus 8 (all calculated). The average change was about +17.7 basis points (calculated).

What to Watch Next: Which Dividend Dates and Deal Closings Follow These Margins?

Camden National pays its $0.42 dividend on October 30. West Coast Community Bancorp has a November 2 record date for its $0.29 payout, due on or about November 6. Franklin Financial pays $0.34 on November 25 to holders of record on November 6, and First Community Bankshares pays $0.33 on November 27. Eagle Bancorp Montana pays $0.1475 on December 4, and NBT Bancorp pays $0.40 on December 15. First Commonwealth Financial held a call on October 28, and First Financial expects the First Illinois deal to close in the first quarter of 2027.