Bank of the Southwest: Yields and Funding Costs
Data as of · Call Report Schedules RI and RC-K How we update
What the bank earns on its assets, what it pays for its funding, and the spread between them. Net interest margin is the output of the two: it is the engine of earnings for almost every commercial bank.
The standout move of Q2 2026 was in Cost of borrowings: 0.87 percentage points higher than in Q1 2026, at 3.87%. As of Q2 2026, Bank of the Southwest ranks first in New Mexico on net interest margin among 29 banks, at 6.78%. Against a median of 3.95% for banks in the $100M-1B asset tier, Bank of the Southwest reported 6.78% on net interest margin in Q2 2026, 2.83 points higher.
Asset yields
| Line item | Q2 2026 |
|---|---|
| Yield on earning assets | 6.94% |
| Yield on loans | 8.06% |
| Yield on securities | 4.92% |
Funding costs
| Line item | Q2 2026 |
|---|---|
| Cost of funds | 0.17% |
| Cost of interest-bearing deposits | 0.10% |
| Cost of interest-bearing liabilities | 0.47% |
| Cost of borrowings | 3.87% |
Spread and margin
| Line item | Q2 2026 |
|---|---|
| Net interest margin | 6.78% |
| Yield to cost spread | 6.47% |
Interest income and expense
| Line item | Q2 2026 |
|---|---|
| Interest income on loans | $2.4M |
| Total interest expense | $68K |
| Interest expense on deposits | $15K |
Yields and Funding Costs trend
Last 12 quarters as filed. Every value plotted here also appears in the tables above.
Yields and Funding Costs by quarter
| Quarter | Yield on earning assets | Cost of funds | Net interest margin | Loans | Securities |
|---|---|---|---|---|---|
| Q3 2023 | 6.78% | 0.02% | 6.76% | 7.82% | 4.68% |
| Q4 2023 | 7.21% | 0.02% | 7.19% | 8.16% | 4.94% |
| Q1 2024 | 7.01% | 0.02% | 6.98% | 7.89% | 5.00% |
| Q2 2024 | 7.21% | 0.03% | 7.18% | 8.15% | 4.98% |
| Q3 2024 | 7.12% | 0.03% | 7.09% | 8.23% | 4.98% |
| Q4 2024 | 7.02% | 0.03% | 6.99% | 8.17% | 4.89% |
| Q1 2025 | 6.86% | 0.04% | 6.82% | 8.13% | 4.97% |
| Q2 2025 | 6.99% | 0.02% | 6.97% | 8.20% | 5.06% |
| Q3 2025 | 6.86% | 0.01% | 6.85% | 8.08% | 5.10% |
| Q4 2025 | 6.81% | 0.01% | 6.80% | 7.91% | 5.06% |
| Q1 2026 | 6.88% | 0.03% | 6.85% | 7.91% | 5.03% |
| Q2 2026 | 6.94% | 0.17% | 6.78% | 8.06% | 4.92% |
Bank of the Southwest yields and funding costs, all the way back
Yields and Funding Costs back to 2001 · peer percentiles on every line item · Excel export
Unlock Bank of the Southwest, freeSource: Call Report Schedules RI and RC-K, as filed with the FFIEC and standardized by BankRegReports. Dollar amounts are as reported, point-in-time; income statement items are year-to-date through the report date. See the full Bank of the Southwest profile, peer group comparison, or how this data updates.
Regulator records: FDIC BankFind (cert 2247) · FFIEC NIC profile (RSSD 499752)