What changed in this filing

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Item 1. Financial Statements

2026-08-11 compared with 2026-05-13 · 271 added, 167 removed, 892 unchanged (33% of the section changed)

24 unchanged sentences

Common stock of $

shares at March 31, 2026 and

shares at December 31, 2025

shares at June 30, 2026 and

shares at December 31, 2025, respectively

Additional paid-in capital

2 unchanged sentences

Less treasury stock, at cost -

shares at both March 31, 2026

shares at June 30, 2026

and December 31, 2025, 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)

4 unchanged sentences

Interest expense:

Short-term borrowings

Total interest expense

22 unchanged sentences

Consolidated Statements of Comprehensive Income

Quarter ended March 31,

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands)

Other comprehensive (loss) income, net of tax:

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

tax benefit (expense) of $

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

(expense) of $

, respectively

Other comprehensive (loss) income

Other comprehensive (loss) income, net of tax

Comprehensive income

6 unchanged sentences

(Dollars in thousands, except share data)

Quarter ended March 31, 2026

income (loss)

Quarter ended June 30, 2026

Balance, March 31, 2026

Other comprehensive loss

Cash dividends paid ($

Stock repurchases

Stock-based compensation expense

Balance, June 30, 2026

Quarter ended June 30, 2025

Balance, March 31, 2025

Other comprehensive income

Cash dividends paid ($

Balance, June 30, 2025

Six months ended June 30, 2026

Balance, December 31, 2025

1 unchanged sentence

Cash dividends paid ($

Stock repurchases

Stock-based compensation expense

1 unchanged sentence

compensation plans, net

Balance, March 31, 2026

Quarter ended March 31, 2025

Balance, June 30, 2026

Six months ended June 30, 2025

Balance, December 31, 2024

1 unchanged sentence

Cash dividends paid ($

Balance, March 31, 2025

Balance, June 30, 2025

ee 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

Income recognized from death benefit on bank-owned life insurance

Stock-based compensation expense

Net decrease in other assets

Net decrease in accrued expenses and other liabilities

Net increase in other assets

Net (decrease) increase in accrued expenses and other liabilities

Net cash provided by operating activities

Cash flows from investing activities:

Proceeds from prepayments and maturities of securities available-for

Proceeds from prepayments and maturities of securities available-for-sale

(Increase) decrease in loans, net

Net purchases of premises and equipment

Proceeds from bank-owned life insurance death benefit

Increase in FHLB stock

3 unchanged sentences

Net increase in interest-bearing deposits

Stock repurchases

Dividends paid

63 unchanged sentences

transactions through the date of this filing that have occurred

subsequent to March 31, 2026.

subsequent to June 30, 2026.

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

4 unchanged sentences

Accounting Developments

In the first quarter of 2026, the Company did not adopt any new accounting

In the first six months of 2026, 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, 2026 and 2025, 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.

During 2025, the Company granted restricted stock units (“RSUs”), which

vested during the first quarter of 2026.

RSUs are included in the computation of diluted net earnings per share using

the treasury stock method during the first

quarter of 2026.

No such securities were outstanding during the first quarter of 2025.

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

the weighted average common shares outstanding for

the respective period.

Diluted net earnings per share reflects

the potential dilution that could occur upon exercise of

securities or other rights for, or convertible into,

shares of the Company’s common stock.

During 2026, the Company

granted 8,172 restricted stock units (“RSUs”), which represent potential

common shares.

During 2025, the Company

granted 3,029 RSUs, which vested during the first quarter of 2026.

RSUs are included in the computation of diluted net

earnings per share using the treasury stock method.

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

periods are presented below:

Quarter ended March 31,

Quarter ended June 30,

Six months ended June 30,

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

8 unchanged sentences

Net earnings per share

At March 31, 2026 and December 31, 2025, respectively,

At June 30, 2026 and December 31, 2025, 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, 2026 and December 31, 2025,

respectively, are presented

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

by contractual maturity at June 30, 2026 and December 31, 2025, respectively,

are presented below.

Gross Unrealized

(Dollars in thousands)

March 31, 2026

June 30, 2026

Agency obligations (a)

18 unchanged sentences

million and $

million at March 31, 2026 and December 31, 2025,

million at June 30, 2026 and December 31, 2025,

respectively, were

6 unchanged sentences

carrying amounts of nonmarketable equity investments were $

million at both March 31, 2026 and December 31, 2025,

million at both June 30, 2026 and December 31, 2025,

respectively.

3 unchanged sentences

Gross Unrealized Losses and Fair Value

The fair values and gross unrealized losses on securities at March 31, 2026

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

2026 and December 31, 2025, 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, 2026:

June 30, 2026:

Agency obligations

10 unchanged sentences

due to changes in interest rates and not credit quality.

For the securities in the previous table, as of March 31, 2026 the Company does not intend to sell and

it is likely that

For the securities in the previous table, as of June 30, 2026 the Company does not intend

to sell and it is likely that

management will not be required to sell the securities prior to their anticipated recovery.

2 unchanged sentences

payments by the issuing agency.

management's analysis and judgement, there were no credit losses attributable

to the Company’s investments

obligations at March 31, 2026.

management's analysis and judgment, there were no credit losses attributable to

the Company’s investments in

obligations at June 30, 2026.

Investments in agency MBS are issued by Ginnie Mae, Fannie Mae, and

Each of these agencies provide a

Each of these agencies provides

guarantee of full and timely payments of principal and interest by the issuing

Based on management's analysis

judgement, there were no credit losses attributable to the Company’s

investments in agency MBS at March 31, 2026.

judgment, there were no credit losses attributable to the Company’s

investments in agency MBS at June 30, 2026.

State and Political Subdivisions

2 unchanged sentences

majority of the portfolio was rated AA or higher,

with no securities rated below investment grade at March 31, 2026.

Based on management's analysis and judgement, there were no credit

losses attributable to the Company’s

investments in

state and political subdivisions at March 31, 2026.

with no securities rated below investment grade at June 30, 2026.

on management's analysis and judgment, there were no credit losses attributable to the

Company’s investments in

political subdivisions at June 30, 2026.

Realized Gains and Losses

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

the quarters ended March 31, 2026 and 2025,

respectively.

The Company had no sales of securities during the quarters and six months

ended June 30, 2026 and 2025, respectively.

LOANS AND ALLOWANCE

11 unchanged sentences

Consumer installment

Total Loans, net of

unearned income before basis adjustment

Total loans, net of unearned

income before basis adjustment

Basis adjustment associated with fair value hedge (1)

Total Loans, net of

unearned income

(1) Represents the basis adjustment associated with application of hedge

accounting on certain loans.

Total loans, net of unearned

(1) Represents the basis adjustment associated with application of

hedge accounting on certain loans.

The basis adjustment

3 unchanged sentences

Loans secured by real estate were approximately 87.5% of the Company’s

total loan portfolio at March 31, 2026.

total loan portfolio at June 30, 2026.

2026, the Company’s geographic

loan distribution was concentrated primarily in Lee County,

surrounding areas.

Alabama, and surrounding

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

24 unchanged sentences

prospectively.

No adjustments

were made to prior periods.

Accordingly, the

allowance for credit losses and the provision for credit losses for prior periods have

not been revised.

Loan balances in

prior period tables have been reclassified to conform to the current period

presentation.

The following describes

21 unchanged sentences

Also included are loans and lines for

construction of residential, multi-family,

construction of residential, multifamily,

and commercial buildings.

24 unchanged sentences

– primarily includes loans to finance income-producing commercial

Loans in this class include loans for

neighborhood retail centers, medical and professional offices,

single retail stores, industrial buildings, and

warehouses leased generally to local businesses and residents.

Loans in this class include

loans for neighborhood retail centers, medical and professional offices,

single retail stores, industrial buildings,

and warehouses leased generally to local businesses and residents.

the primary source of repayment is

1 unchanged sentence

underwriting of these loans takes into

onsideration the occupancy and rental rates, as well as the financial health

consideration the occupancy and rental rates, as well as the financial health

of the borrower.

30 unchanged sentences

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, 2026 and December 31, 2025.

(Dollars in thousands)

March 31, 2026:

June 30, 2026:

Commercial and industrial

44 unchanged sentences

of principal and interest is not

The introduction of the municipal portfolio segment in 2026 impacts comparability

of credit quality disclosures to prior

The following tables present credit quality indicators for the loan portfolio segments and

classes by year of

origination as of March 31, 2026 and December 31, 2025.

During 2026, the Company established municipal loans as a separate portfolio

Certain prior period amounts have

been reclassified to conform to the current period presentation.

The following tables present credit quality indicators for the

loan portfolio segments and classes by year of origination as of June 30, 2026

and December 31, 2025.

Year of Origination

(Dollars in thousands)

March 31, 2026:

June 30, 2026:

Commercial and industrial

24 unchanged sentences

(Dollars in thousands)

March 31, 2026:

June 30, 2026:

Special mention

Substandard accruing

Total multi-family

Total multifamily

Current period gross charge-offs

31 unchanged sentences

Substandard accruing

Total commercial and industrial

Total municipal

Current period gross charge-offs

19 unchanged sentences

Substandard accruing

Total multi-family

Total multifamily

Current period gross charge-offs

34 unchanged sentences

is presented below.

Quarter ended March 31,

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands)

2 unchanged sentences

Total provision for credit

The provision for credit losses for the quarter reflects both changes in credit conditions

and the impact of the refinement in

portfolio segmentation, including the reclassification of loans previously

included in commercial and industrial loans.

following table details the changes in the allowance for credit losses for loans, by

portfolio segment, for the respective

The provision for credit losses for the quarter and six months reflects both changes

in credit conditions and the impact of

the refinement in portfolio segmentation during the first quarter of 2026, including

the reclassification of municipal loans

previously included in commercial and industrial loans.

The following table details the changes in the allowance for credit

losses for loans, by portfolio segment, for the respective periods.

(Dollars in thousands)

and industrial

Quarter ended March 31, 2026

Quarter ended June 30, 2026:

Beginning balance

2 unchanged sentences

Ending balance

Quarter ended March 31, 2025:

Six months ended June 30, 2026:

Beginning balance

2 unchanged sentences

Ending balance

Quarter ended June 30, 2025:

Beginning balance

Net (charge-offs) recoveries

Provision for credit losses

Ending balance

Six months ended June 30, 2025:

Beginning balance

Net (charge-offs) recoveries

Provision for credit losses

Ending balance

During the first quarter of 2026, the Company refined its loan portfolio

9 unchanged sentences

This refinement represents a change in accounting estimate and is accounted for prospectively.

No adjustments

were made to prior periods.

Accordingly, the

allowance for credit losses and the provision for credit losses for prior periods have

not been revised.

Loan balances in

prior period tables have been reclassified to present municipal loans as a separate

segment to conform to the current period

presentation.

The Company designates certain individually evaluated loans on nonaccrual status as collateral

15 unchanged sentences

The Company had no collateral dependent loans which were individually evaluated

at March 31, 2026.

at June 30, 2026.

The following table

5 unchanged sentences

Commercial real estate

At March 31, 2026 and December 31, 2025, the Company had one additional individually

evaluated commercial real estate

loan in the amount of $3.0 million that was not considered collateral dependent

and was accruing in accordance with its

At June 30, 2026 and December 31, 2025, the Company had one additional

individually evaluated commercial real estate

loan in the amount of $

million that was not considered collateral dependent and was accruing

in accordance with its

contractual terms.

This loan had an allowance of $0.5 million at March 31, 2026 and December

31, 2025, respectively.

The allowance for this loan was measured using the present value of expected

future cash flows, discounted at the loan’s

This loan had an allowance of $

million at June 30, 2026 and December 31, 2025, respectively.

allowance for this loan was measured using the present value of expected future cash

flows, discounted at the loan’s

effective interest rate.

9 unchanged sentences

Nonaccrual Loans

March 31, 2026

June 30, 2026

Residential real estate

3 unchanged sentences

The Company did not recognize any interest income on nonaccrual loans during

the quarters ended March 31, 2026 and

the quarter or six months ended June 30,

2026 and 2025.

There were no modifications to borrowers experiencing financial difficulty

during the quarters ended March 31, 2026 and

the quarter or six months ended June 30,

2026 and 2025.

STOCK-BASED COMPENSATION

Restricted stock units (“RSUs”) granted on July 24, 2025 vested during

the first quarter of 2026, resulting in no unvested

awards outstanding at March 31, 2026.

The Company recognized $

thousand of stock-based compensation expense in

the first quarter of 2026 related to these RSUs.

The Company maintains the 2024 Equity and Incentive Compensation

Plan (the “Plan”), which permits the grant of equity-

based awards, including restricted stock units (“RSUs”), to employees of the

Company and its subsidiaries.

On June 5, 2026, the Compensation Committee (the “Committee”) of

the Board of Directors adopted and approved grants

RSUs pursuant to the Plan and a Notice of Discretionary Equity Award

Agreement and related Terms

Conditions (together, the “RSU Award

The RSUs vest in installments of 33% in 2027, 33% in 2028, and

34% in 2029, subject to the recipient’s

continued service through each vesting date.

The grant-date fair value of the RSUs

per unit, based on the closing price of the Company’s

common stock on the date of grant, resulting in an

aggregate grant-date fair value of approximately $

The RSUs accrue dividend equivalents on unvested units

equal to cash dividends declared on the Company’s

common stock, which are subject to the same vesting conditions as the

underlying RSUs.

Upon vesting, the Company will withhold a portion of the shares otherwise issuable to

recipients’ tax withholding obligations.

The Company recognized approximately $

thousand of stock-based compensation expense related to this grant during

quarter and six months ended June 30, 2026.

Such expense is included in salaries and benefits expense, with a

orresponding increase to additional paid-in capital.

corresponding increase to additional paid-in capital.

At June 30, 2026, unrecognized compensation expense related to

unvested RSUs was approximately $200 thousand, which is expected to be

recognized over the remaining vesting period of

approximately three years.

The unvested RSUs had no dilutive effect on weighted average shares outstanding

quarter ended June 30, 2026, as determined under the treasury stock method.

RSUs granted on July 24, 2025 vested during the first quarter of 2026, and

no unvested awards remained outstanding at

June 30, 2026 related to that grant.

The Company recognized $

thousand of stock-based compensation expense during

the first six months of 2026 related to those RSUs.

COMMITMENTS AND CONTINGENT LIABILITIES

Contingent Liabilities

During the second quarter of 2026, the Company identified a loss contingency

in connection with the release of a mortgage

Based on the facts known to management, the Company determined

that a loss was probable and reasonably estimable

and recorded a pre-tax accrual of $

thousand within other noninterest expense for the quarter and six months ended June

30, 2026, in accordance with applicable accounting guidance for

loss contingencies.

The Company has submitted a claim to its insurer for recovery.

As of June 30, 2026, the Company has not recorded a

receivable for any potential insurance recovery,

as the recognition criteria for a gain contingency under generally accepted

accounting principles have not yet been satisfied.

Any recovery received from

the insurer will be recognized in the period

in which it is realized or realizable.

The Company enters into interest rate swaps to manage exposure to changes in interest

1 unchanged sentence

does not enter into derivative instruments for speculative or trading purposes.

As of March 31, 2026, the Company had two pay-fixed, receive-variable

interest rate swaps with an aggregate notional

amount of $22.0 million.

The swaps are designated as fair value hedges

of changes in the fair value of specified loans

attributable to changes in the benchmark interest rate (SOFR) and qualify

for the shortcut method under ASC 815,

The Company had two swaps designated as fair value hedges of changes

in the fair value of specified loans attributable to

changes in the benchmark interest rate (the SOFR overnight index

swap rate) that qualified for the shortcut method under

Derivatives and Hedging

at June 30, 2026, compared to one such swap at December 31, 2025.

Accrued interest

receivable related to the swaps is included in Other Assets or Other Liabilities, as applicable.

Under the terms of the swaps, the Company pays fixed rates and receives variable

rates based on SOFR.

hedges qualify for the shortcut method, the hedge relationships are assumed to

be perfectly effective, and therefore no

hedge ineffectiveness is recognized.

Accrued interest receivable related to the swaps is included in Other Assets or Other

Liabilities, as applicable.

rates based on SOFR (daily SOFR

compounded in arrears).

Because the hedges qualify for the shortcut method,

the hedge relationships are assumed to be

perfectly effective, and therefore no hedge ineffectiveness

is recognized.

The following table presents the fair value of derivative instruments designated

as hedging instruments as of March 31,

as hedging instruments as of June 30, 2026

and December 31, 2025:

1 unchanged sentence

(Dollars in thousands)

March 31, 2026:

June 30, 2026:

Interest rate swaps (fair value hedge)

6 unchanged sentences

Total interest rate swap

The following table presents the carrying amount of hedged loans and

the cumulative amount of fair value hedging

adjustments included in the carrying amount of the hedged loans:

Cumulative Fair

Value Hedging

Carrying Amount

Adjustment Included

(Dollars in thousands)

of Hedged Loans

in Carrying Amount

June 30, 2026:

Loans, net of unearned income

December 31, 2025:

Loans, net of unearned income

The following table presents the effect of fair value hedge accounting

on the Consolidated Statements of Earnings for the

quarter ended March 31, 2026:

Amount of Gain

(Loss) Recognized

Location of Gain

(Loss) Recognized

in Income on Hedged

(Loss) Recognized

Item Attributable

quarters and six months ended June 30, 2026 and 2025.

Gains and losses on both the interest rate swaps and the hedged

items attributable to the hedged risk are recognized in interest income (loans):

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands)

to Hedged Risk

Quarter ended March 31, 2026:

Interest rate swaps (fair value hedge)

Interest Income (Loans)

Total interest rate swap

Amount of gain (loss) recognized in income

on derivative

Amount of gain (loss) recognized in income

on hedged item attributable to hedged risk

Net impact on interest income (loans)

The Company had no derivatives designated as hedging instruments during

the quarter and six months ended June 30,

The Company is exposed to credit risk in the event of nonperformance by

39 unchanged sentences

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

quarter ended March 31, 2026, there were no

six months ended June 30, 2026, there were no

transfers between levels and no changes in valuation techniques for the

34 unchanged sentences

valuing the interest rate swaps are observable in active markets, the Company

classifies these instruments with Level 2 of

classifies these instruments within Level 2 of

the fair value hierarchy.

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, 2026 and December 31, 2025, respectively,

5 unchanged sentences

(Dollars in thousands)

March 31, 2026:

June 30, 2026:

Securities available-for-sale:

55 unchanged sentences

value on a nonrecurring basis as of

March 31, 2026 and December 31, 2025, respectively,

June 30, 2026 and December 31, 2025, respectively,

by caption, on the accompanying consolidated balance sheets and by

4 unchanged sentences

(Dollars in thousands)

March 31, 2026:

June 30, 2026:

Total assets at fair value

5 unchanged sentences

Quantitative Disclosures for Level 3 Fair Value

At March 31, 2026 and December 31, 2025, 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,

2026 and December 31, 2025, the

significant unobservable inputs used in the fair value measurements are

presented below.

At June 30, 2026 and December 31, 2025, 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, 2026

and December 31, 2025, the significant

unobservable inputs used in the fair value measurements are presented

(Dollars in thousands)

1 unchanged sentence

Unobservable Input

March 31, 2026:

June 30, 2026:

Mortgage servicing rights, net

49 unchanged sentences

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

instruments at March 31, 2026 and December 31, 2025 are presented below.

instruments at June 30, 2026 and December 31, 2025 are presented below.

This table excludes financial instruments

16 unchanged sentences

(Dollars in thousands)

March 31, 2026:

June 30, 2026:

Financial Assets:

Loans, net (1)

Loans held for sale

Financial Liabilities:

10 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