Marquette National Corporation Reports Third Quarter 2026 Results

Net income and EPS barely increased, but assets, loans, and deposits all declined.

What the company is saying

Marquette National Corporation reports year-to-date net income of $10.4 million for the first nine months of 2026, up only $91,000 from $10.3 million in the same period of 2025. Earnings per share rose by just $0.01 to $2.38. The company highlights increased net interest income of $6.5 million, other income up $605,000, and a $526,000 reduction in provision for credit losses as the main drivers of the modest profit increase. These gains were offset by a $5.1 million drop in realized and unrealized net gains on marketable equity securities and $2.5 million in higher expenses. Chairman & CEO Paul M. McCarthy provides this breakdown, directly attributing the small net income change to these factors. The company’s tone is factual, providing detailed period-over-period figures and offering no forward-looking guidance or promotional narrative.

What the data suggests

The disclosed numbers show a flat financial trajectory. Net income rose marginally by $91,000 year-over-year to $10.4 million, and EPS increased by $0.01 to $2.38. Total assets fell by $120 million to $2.105 billion, total loans dropped $12.6 million to $1.40 billion, and deposits decreased $51.9 million to $1.722 billion. Book value per share declined from $44.34 to $43.52, and tangible book value per share fell from $36.29 to $35.46. Net interest income improved by $6.5 million, but this was countered by a $5.1 million reduction in realized/unrealized gains on marketable equity securities and $2.5 million in higher expenses. Comprehensive income dropped sharply from $20.8 million to $725,000. The figures indicate that while core banking income improved, asset and deposit contraction and lower investment gains offset most of the benefit, resulting in stagnant bottom-line performance.

Analysis

The announcement is a standard quarterly financial disclosure, presenting realised results for the first nine months of 2026 with detailed numerical data on net income, EPS, assets, loans, deposits, and equity. The tone is factual and restrained, with no promotional or exaggerated language. All key claims about financial performance are supported by disclosed figures, and there are no aspirational or speculative statements about future growth or strategy. The only forward-looking content is the boilerplate caution regarding forward-looking statements, which is regulatory and not promotional. There is no mention of large capital outlays, strategic initiatives, or long-dated benefit projections. The data shows marginal year-over-year improvement in net income and EPS, but also declines in assets, loans, deposits, and book value per share, indicating a flat to slightly negative operational trend. There is no gap between narrative and evidence.

Risk flags

• ●Asset, loan, and deposit contraction signals potential underlying weakness in business momentum or customer retention, as total assets fell by $120 million, loans by $12.6 million, and deposits by $51.9 million since year-end 2025.
• ●The sharp drop in comprehensive income from $20.8 million to $725,000 suggests significant volatility in non-core income sources, particularly marketable equity securities, which could continue to impact bottom-line results.
• ●Expense growth outpaced revenue gains, with other expenses rising by $2.5 million year-over-year, eroding much of the benefit from improved net interest income and other income.

Bottom line

Marquette National Corporation’s financial results for the first nine months of 2026 show almost no growth in net income or EPS, with both metrics essentially flat year-over-year. The company’s core banking operations improved, as seen in higher net interest income and other income, but these gains were largely offset by lower investment gains and rising expenses. The decline in assets, loans, and deposits points to business contraction, not expansion. Comprehensive income fell sharply, highlighting volatility in non-core earnings. The company provides a clear breakdown of drivers but offers no forward-looking guidance or evidence of a turnaround. Investors should focus on whether the contraction in assets and deposits stabilises or accelerates in future quarters. The most important takeaway is that headline profit stability masks underlying declines in balance sheet strength and comprehensive income.

Announcement summary

(OTCQX:MNAT) Marquette National Corporation reported year-to-date net income of $10.4 million for the first nine months of 2026, compared to $10.3 million for the same period in 2025. Earnings per share for the first nine months of 2026 were $2.38, up from $2.37 in 2025. As of September 30, 2026, total assets were $2.105 billion, a decrease of $120 million from $2.225 billion at December 31, 2025. Total loans decreased by $12.6 million to $1.40 billion compared to $1.412 billion at the end of 2025. Total deposits decreased by $51.9 million to $1.722 billion compared to $1.774 billion at the end of 2025. Paul M. McCarthy, Chairman & CEO, attributed the $91,000 increase in net income year-to-date primarily to increased net interest income of $6.5 million, increased other income of $605,000, and a lower provision for credit losses of $526,000, partially offset by decreased realized/unrealized net gains on marketable equity securities of $5.1 million and increased expenses of $2.5 million. At September 30, 2026, total stockholders' equity was $196,862,000, compared to $194,603,000 at December 31, 2025. Shares outstanding were 4,388,274 at September 30, 2026, and 4,388,532 at December 31, 2025. Book value per share was $43.52 at September 30, 2026, compared to $44.34 at December 31, 2025. Tangible book value per share was $35.46 at September 30, 2026, compared to $36.29 at December 31, 2025. Net interest income for the nine months ended September 30, 2026, was $45,024,000, up from $38,517,000 in 2025. Provision for credit losses was $149,000 in 2026, down from $675,000 in 2025. Realized marketable equity securities gains, net, were $1,582,000 in 2026, compared to $9,996,000 in 2025. Unrealized holding gains (losses) on marketable equity securities were $1,194,000 in 2026, compared to $(2,140,000) in 2025. Other income was $12,402,000 in 2026, up from $11,797,000 in 2025. Other expense was $46,351,000 in 2026, compared to $43,614,000 in 2025. Income tax expense was $3,266,000 in 2026, compared to $3,536,000 in 2025. Comprehensive income was $725,000 in 2026, compared to $20,785,000 in 2025. Cash dividends declared per share were $0.99 in 2026, compared to $0.93 in 2025. Weighted average shares outstanding were 4,387,543 in 2026 and 4,372,431 in 2025. The company operates Marquette Bank, which serves communities in Chicagoland with branches in Chicago, Bolingbrook, Bridgeview, Evergreen Park, Hickory Hills, Lemont, New Lenox, Oak Forest, Oak Lawn, Orland Park, Summit, and Tinley Park, Illinois.

Disagree with this article?