What changed in this filing

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Item 1. Financial Statements

2025-08-12 compared with 2025-05-02 · 151 added, 168 removed, 753 unchanged (30% of the section changed)

27 unchanged sentences

Less treasury stock, at cost -

shares at both March 31, 2025

shares at both June 30, 2025

and December 31, 2024, respectively

6 unchanged sentences

Consolidated Statements of Earnings

Quarter ended March 31,

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands, except share and per share data)

29 unchanged sentences

AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss)

Quarter ended March 31,

Consolidated Statements of Comprehensive Income

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands)

Other comprehensive income (loss), net of tax:

Unrealized net holding gain (loss) on securities, net of

tax expense of $

and tax benefit of $

, respectively

Other comprehensive income (loss)

Comprehensive income (loss)

Change in fair value on available-for-sale securities, net of tax

Other comprehensive income (loss), net of tax

Comprehensive income

See accompanying notes to consolidated financial statements

5 unchanged sentences

(Dollars in thousands, except share data)

Quarter ended March 31, 2025

Balance, December 31, 2024

income (loss)

Quarter ended June 30, 2025

Balance, March 31, 2025

Other comprehensive income

Cash dividends paid ($

Balance, June 30, 2025

Quarter ended June 30, 2024

Balance, March 31, 2024

Quarter ended March 31, 2024

Other comprehensive loss

Cash dividends paid ($

Sale of treasury stock

Balance, June 30, 2024

Six months ended June 30, 2025

Balance, December 31, 2024

Other comprehensive income

Cash dividends paid ($

Balance, June 30, 2025

Six months ended June 30, 2024

Balance, December 31, 2023

Cumulative effect of change in accounting

standard ASU 2023-12

Other comprehensive loss

1 unchanged sentence

Sale of treasury stock

Balance, March 31, 2024

Balance, June 30, 2024

See accompanying notes to consolidated financial statements

3 unchanged sentences

Consolidated Statements of Cash Flows

Quarter ended March 31,

Six months ended June 30,

(Dollars in thousands)

9 unchanged sentences

Increase in cash surrender value of bank-owned life insurance

Net decrease (increase) in other assets

Net (decrease) increase in accrued expenses and other liabilities

Net increase in other assets

Net increase in accrued expenses and other liabilities

Net cash provided by operating activities

8 unchanged sentences

Net increase in interest-bearing deposits

Net increase in federal funds purchased and securities sold

Net decrease in federal funds purchased and securities sold

under agreements to repurchase

57 unchanged sentences

include the determination of allowance for credit losses on loans and

investment securities, fair value of financial

investment securities, the fair value of financial

instruments, and the valuation of deferred tax assets and other real estate owned

Revenue Recognition

The Company’s sources of

income that fall within the scope of ASC 606 include service charges on

deposits, ATM

interchange fees and gains and losses on sales of OREO, all of which

are presented as components of noninterest income.

The following is a summary of the revenue streams that fall within the scope

Service charges on deposits, investment services, ATM

and interchange fees – Fees from these services are either

(i) transaction-based, for which the performance obligations are satisfied when the

individual transaction is

processed, or (ii) set periodic service charges, for which the performance

obligations are satisfied over the period

the service is provided.

Transaction-based

fees are recognized at the time the transaction is processed, and periodic

service charges are recognized over the service period.

Gains on sales of OREO

A gain on sale should be recognized when a contract for sale exists and control of the

asset has been transferred to the buyer.

ASC 606 lists several criteria required to conclude that a contract for sale

exists, including a determination that the institution will collect substantially all of the

consideration to which it is

In addition to the loan-to-value ratio, where the seller provides the purchaser

with financing, the analysis

is based on various other factors, including the credit quality of the

purchaser, the structure of the loan, and any

other factors that we believe may affect collectability.

Subsequent Events

1 unchanged sentence

transactions through the date of this filing that have occurred

subsequent to March 31, 2025.

subsequent to June 30, 2025.

The Company does not believe there were any material subsequent events during

period that would have required further recognition or disclosure in

the unaudited consolidated financial statements

included in this report.

that would have required further recognition or disclosure in the

unaudited consolidated financial statements included in

Reclassifications

Certain amounts reported in prior periods have been reclassified to

conform to the current-period presentation.

reclassifications had no effect on the Company’s

previously reported net earnings or total stockholders’ equity.

Accounting Developments

In the first quarter of 2025, the Company did not adopt any new accounting

BASIC AND DILUTED NET EARNINGS PER SHARE

Basic net earnings per share is computed by dividing net earnings by the weighted

average common shares outstanding for

the quarters ended March 31, 2025 and 2024, respectively.

Diluted net earnings per share reflect the potential dilution that

could occur upon exercise of securities or other rights for,

or convertible into, shares of the Company’s

common stock.

March 31, 2025 and 2024, respectively,

the Company had no such securities or rights issued or outstanding, and therefore,

no dilutive effect to consider for the diluted net earnings per share calculation.

The basic and diluted net earnings per share computations for the respective

periods are presented below

Quarter ended March 31,

(Dollars in thousands, except share and per share data)

Basic and diluted:

Weighted average

common shares outstanding

Net earnings per share

At March 31, 2025 and December 31, 2024, respectively,

In the first six months of 2025, the Company did not adopt any new accounting guidance.

At June 30, 2025 and December 31, 2024, respectively,

all securities within the scope of ASC 320,

Investments – Debt

and Equity Securities,

Investments – Debt and

Equity Securities,

were classified as available-for-sale.

The fair value and amortized cost for securities available-for-

sale by contractual maturity at March 31, 2025 and December 31, 2024,

respectively, are presented

The fair value and amortized cost for securities available-for-sale

by contractual maturity at June 30, 2025 and December 31, 2024, respectively,

are presented below.

Gross Unrealized

(Dollars in thousands)

March 31, 2025

June 30, 2025

Agency obligations (a)

18 unchanged sentences

million and $

at March 31, 2025 and December 31, 2024, respectively,

were pledged to secure public deposits,

securities sold under agreements to repurchase, FHLB advances, and for

purposes required or permitted by law.

million at June 30, 2025 and December 31, 2024,

respectively, were

pledged to secure public deposits,

securities sold under agreements to repurchase, FHLB advances, and

for other purposes required or permitted by law.

Included in other assets on the accompanying consolidated balance sheets include

1 unchanged sentence

carrying amounts of non-marketable equity investments were $

million at March 31, 2025 and December 31, 2024,

million at June 30, 2025 and December 31, 2024,

respectively.

3 unchanged sentences

Gross Unrealized Losses and Fair Value

The fair values and gross unrealized losses on securities at March 31, 2025

The fair values and gross unrealized losses on securities at June 30,

2025 and December 31, 2024, respectively,

segregated by those securities that have been in an unrealized loss position

for less than 12 months and 12 months or

longer, are presented below.

by those securities that have been in an unrealized loss position for less than 12

months and 12 months or longer, are

presented below.

Less than 12 Months

1 unchanged sentence

(Dollars in thousands)

March 31, 2025:

June 30, 2025:

Agency obligations

9 unchanged sentences

Because the Company currently does not intend to sell those securities that have an

unrealized loss at March 31, 2025, and it is not more-likely-than-not that the

Company will be required to sell the securities

unrealized loss at June 30, 2025, and it is not more-likely-than-not

that the Company will be required to sell the securities

before recovery of their amortized cost bases, which may be maturity,

7 unchanged sentences

adverse conditions related to the specific security.

The unrealized losses associated with securities at March 31, 2025 are

The unrealized losses associated with securities at June 30, 2025 are

driven by changes in interest rates and are not due to the credit quality of the securities,

and accordingly, no allowance

credit losses is considered necessary related to securities at March 31, 2025.

credit losses is considered necessary related to securities at June 30, 2025.

These securities will continue to be monitored

5 unchanged sentences

Realized Gains and Losses

The Company had no realized gains or losses on sale of securities during the quarter

ended March 31, 2025 and 2024,

respectively.

The Company had no realized gains or losses on sale of securities during the quarters

and six months ended June 30, 2025

and 2024, respectively.

LOANS AND ALLOWANCE

12 unchanged sentences

Loans secured by real estate were approximately 87.8% of the Company’s

total loan portfolio at March 31, 2025.

total loan portfolio at June 30, 2025.

2025, the Company’s geographic

loan distribution was concentrated primarily in Lee County,

surrounding areas.

The loan portfolio segment is defined as the level at which an entity develops and

documents a systematic method for

Alabama, and surrounding

The loan portfolio segment is defined as the level at which an entity develops

and documents a systematic method for

determining its allowance for credit losses.

35 unchanged sentences

Generally, the primary

source of repayment is the cash flow from business operations and activities of

the borrower, who owns the

source of repayment is the cash flow from business operations and activities

of the borrower, who owns the

– includes loans for hotels and motels.

10 unchanged sentences

repayment is dependent upon income generated from the real estate collateral.

The underwriting of these loans

underwriting of these loans

takes into consideration the occupancy and rental rates, as well as the financial

40 unchanged sentences

the Bank’s general loan policies and

procedures which require, among other things, proper documentation of each

procedures which require, among other things, proper documentation

borrower’s financial condition, satisfactory credit history,

1 unchanged sentence

The following is a summary of current, accruing past due, and nonaccrual

loans by portfolio segment and class as of March

loans by portfolio segment and class as of June

30, 2025 and December 31, 2024.

(Dollars in thousands)

March 31, 2025:

June 30, 2025:

Commercial and industrial

29 unchanged sentences

of the obligor (or guarantors, if

any) or by the fair value, less cost to acquire and sell, of any underlying collateral.

any) or by the fair value, less the estimated cost to acquire and sell any underlying

Special Mention – loans with potential weakness that may,

3 unchanged sentences

These loans are not adversely classified and do

not expose an institution to sufficient risk to warrant an

adverse classification.

not expose an institution to sufficient risk to warrant an adverse classification.

Substandard Accruing – loans that exhibit a well-defined weakness which

4 unchanged sentences

Company may incur a loss in the future if these weaknesses are not corrected.

Nonaccrual – includes loans where management has determined that

full payment of principal and interest is not

Nonaccrual – includes loans where management has determined that full payment

of principal and interest is not

Substandard accrual and nonaccrual loans are often collectively referred

2 unchanged sentences

segments and classes by year of origination as

of March 31, 2025 and December 31, 2024.

of June 30, 2025 and December 31, 2024.

Year of Origination

(Dollars in thousands)

March 31, 2025:

June 30, 2025:

Commercial and industrial

16 unchanged sentences

(Dollars in thousands)

March 31, 2025:

June 30, 2025:

Special mention

68 unchanged sentences

is presented below.

Quarter ended March 31,

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands)

6 unchanged sentences

Commercial and

Quarter ended March 31, 2025:

Quarter ended June 30, 2025:

Beginning balance

2 unchanged sentences

Ending balance

Quarter ended March 31, 2024:

Six months ended June 30, 2025:

Beginning balance

Net (charge-offs) recoveries

Provision for credit losses

Ending balance

Quarter ended June 30, 2024:

Beginning balance

Net (charge-offs)

Provision for credit losses

Ending balance

Six months ended June 30, 2024:

Beginning balance

Net recoveries (charge-offs)

1 unchanged sentence

Ending balance

The following table presents the amortized cost basis of collateral dependent loans,

which are individually evaluated to

determine expected credit losses for the respective periods:

The Company had no collateral dependent loans which were individually evaluated

at June 30, 2025.

The following table

presents the amortized cost basis of collateral dependent loans, which were

individually evaluated to determine expected

credit losses at December 31, 2024.

(Dollars in thousands)

March 31, 2025:

Construction and land development

December 31, 2024:

3 unchanged sentences

nonaccrual loans by major categories for the respective periods.

Nonaccrual Loans

(Dollars in thousands)

With No Allowance

With An Allowance

March 31, 2025

Commercial and industrial

Construction and land development

Nonaccrual Loans

June 30, 2025

Commercial real estate

Residential real estate

6 unchanged sentences

corresponding mortgage loans are sold.

An estimate of the Company’s MSRs is determined

using assumptions that market

participants would use in estimating future net servicing income, including

estimates of prepayment speeds, discount rate,

default rates, cost to service, escrow account earnings, contractual servicing

fee income, ancillary income, and late fees.

The Company has elected to measure its MSRs under the amortization

Under the amortization method, MSRs are

amortized in proportion to, and over the period of, estimated net servicing

Increases in market interest rates

generally increase the fair value of MSRs by reducing prepayments and

refinancings and therefore reducing the prepayment

The Company has recorded MSRs related to loans sold to Fannie Mae.

The Company generally sells conforming, fixed-

rate, closed-end, residential mortgages to Fannie Mae.

MSRs are included in other assets on the accompanying

consolidated balance sheets.

An estimate of the fair value of the Company’s

MSRs is determined using

assumptions that market participants would use in estimating future net

servicing income, including estimates of

prepayment speeds, discount rates, default rates, costs to service, escrow account

earnings, contractual servicing fee

income, ancillary income, and late fees.

Subsequent to the date of transfer, the Company

has elected to measure its MSRs

under the amortization method.

Under the amortization method, MSRs are amortized in proportion to, and over

of, estimated net servicing income.

The Company generally sells, without recourse, conforming, fixed-rate, closed-end,

residential mortgages to Fannie Mae,

where the Company services the mortgages sold and records MSRs.

MSRs are included in other assets on the

accompanying consolidated balance sheets.

The Company evaluates MSRs for impairment on a quarterly basis.

5 unchanged sentences

as the fair value changes.

Changes in the valuation allowance are recognized in earnings as a component of mortgage

Changes in the valuation allowance are recognized in earnings as a component

lending income.

The change in amortized MSRs and the related valuation allowance

for the quarters ended March 31, 2025 and 2024 are

presented below.

Quarter ended March 31,

The following table details the changes in amortized MSRs and the related valuation

allowance for the respective periods.

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands)

16 unchanged sentences

for an asset or liability at the measurement date.

GAAP establishes a fair value hierarchy for valuation inputs that gives the

highest priority to quoted prices in active

GAAP establishes a fair value hierarchy for valuation inputs that gives the highest

priority to quoted prices in active

markets for identical assets or liabilities and the lowest priority to unobservable inputs.

The fair value hierarchy is as

1—inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities

Level 1—inputs to the valuation methodology are quoted prices, unadjusted,

for identical assets or liabilities in active

Level 2—inputs to the valuation methodology include quoted prices for similar

4 unchanged sentences

or indirectly.

Level 3—inputs to the valuation methodology are unobservable and reflect

the Company’s own assumptions about

Level 3—inputs to the valuation methodology are unobservable and

reflect the Company’s own assumptions about

inputs market participants would use in pricing the asset or liability.

8 unchanged sentences

that transfers in and out of any level are expected to be infrequent.

For the quarter ended March 31, 2025, there were no

months ended June 30, 2025, there were no

transfers between levels and no changes in valuation techniques for the

25 unchanged sentences

The following table presents the balances of the assets and liabilities measured at fair

value on a recurring basis as of March

value on a recurring basis as of June

30, 2025 and December 31, 2024, respectively,

5 unchanged sentences

(Dollars in thousands)

March 31, 2025:

June 30, 2025:

Securities available-for-sale:

57 unchanged sentences

value on a nonrecurring basis as of

March 31, 2025 and December 31, 2024, respectively,

June 30, 2025 and December 31, 2024, respectively,

by caption, on the accompanying consolidated balance sheets and by

5 unchanged sentences

(Dollars in thousands)

March 31, 2025:

June 30, 2025:

Loans held for sale

5 unchanged sentences

Quantitative Disclosures for Level 3 Fair Value

At March 31, 2025 and December 31, 2024, the Company had no Level 3 assets measured

at fair value on a recurring basis.

For Level 3 assets measured at fair value on a non-recurring basis at March 31,

2025 and December 31, 2024, the

significant unobservable inputs used in the fair value measurements and

the range of such inputs with respect to such assets

are presented below.

At June 30, 2025 and December 31, 2024, the Company had no Level 3

assets measured at fair value on a recurring basis.

For Level 3 assets measured at fair value on a non-recurring basis at June 30, 2025

and December 31, 2024, the significant

unobservable inputs used in the fair value measurements and the range

of such inputs with respect to such assets are

presented below.

(Dollars in thousands)

1 unchanged sentence

Unobservable Input

March 31, 2025:

Collateral dependent loans

Appraisal discounts

June 30, 2025:

Mortgage servicing rights, net

47 unchanged sentences

and placement in the fair value hierarchy of the Company’s

instruments at March 31, 2025 and December 31, 2024 are presented below.

instruments at June 30, 2025 and December 31, 2024 are presented below.

This table excludes financial instruments for

15 unchanged sentences

(Dollars in thousands)

March 31, 2025:

June 30, 2025:

Financial Assets:

12 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements