3 unchanged sentences
This section generally discusses the results of operations for 2025 compared to 2024.
−Removed: For discussion related to the results of operations and changes in financial condition for 2023 compared to 2022 refer to Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's 2023 Annual Report on Form 10-K filed with the SEC on February 28, 2024.
+Added: For discussion related to the results of operations and changes in financial condition for 2024 compared to 2023 refer to Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's 2024 Annual Report on Form 10-K filed with the SEC on March 5, 2025.
The Company intends for the discussion of financial condition and results of operations that follows to provide information that will assist the reader in understanding the Consolidated Financial Statements, the changes in certain key items in those financial statements from year to year, and the primary factors that accounted for those changes, as well as how certain accounting principles, policies, and estimates affect the Consolidated Financial Statements.
This discussion should be read in conjunction the Consolidated Financial Statements and the related notes that appear in Part II, Item 8 of this document.
+Added: Forward-Looking Statements and Factors that Could Affect Future Results
+Added: Certain statements contained in this Annual Report on Form 10-K that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically identified as such.
+Added: In addition, certain statements may be contained in the Company's future filings with the SEC, in press releases, and in oral and written statements made by the Company or with the Company's approval that are not statements of historical fact and constitute forward-looking statements within the meaning of the Act.
+Added: Examples of forward-looking statements include, but are not limited to:
+Added: (i) projections of revenues, expenses, income or loss, earnings or loss per share, the payment or nonpayment of dividends,
+Added: capital structure and other financial items;
+Added: (ii) statements of plans, objectives and expectations of the Company or its management or Board of Directors, including those relating to products, services or operations;
+Added: (iii) statements of future economic performance;
+Added: and (iv) statements of assumptions underlying such statements.
+Added: Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” “continue,” “remain,” “will,” “should,” “may,” and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.
+Added: Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those in such statements.
+Added: Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to:
+Added: • The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board and the implementation of tariffs and other protectionist trade policies.
+Added: • Inflation, interest rate, securities market, and monetary fluctuations.
+Added: • Changes in energy prices.
+Added: • Changes in freight rates.
+Added: • Local, regional, national, and international economic conditions and the impact they may have on the Company and its customers and its assessment of that impact.
+Added: • Changes in the financial performance and/or condition of the Company's borrowers.
+Added: • Changes in the mix of loan sectors and types or the level of non-performing assets and charge-offs.
+Added: • Changes in estimates of future allowance for credit losses requirements based upon the periodic review thereof under relevant regulatory and accounting requirements.
+Added: • Changes in the Company's liquidity position.
+Added: • Impairment of the Company's goodwill or other intangible assets.
+Added: • Changes in consumer spending, borrowing, and saving habits.
+Added: • Technological changes, including artificial intelligence.
+Added: • The cost and effects of cyber incidents or other failures, interruptions, or security breaches of the Company's systems or those of the Company's customers or third-party providers.
+Added: • Acquisitions and integration of acquired businesses.
+Added: • Changes in the reliability of the Company's vendors, internal control systems or information systems.
+Added: • The Company's ability to increase market share and control expenses.
+Added: • The Company's ability to attract and retain qualified employees.
+Added: • Changes in the Company's organization, compensation, and benefit plans.
+Added: • The soundness of other financial institutions.
+Added: • Volatility and disruption in national and international financial and commodity markets.
+Added: • Government intervention in the U.S.
+Added: financial system.
+Added: • Political or economic instability.
+Added: • Acts of God or of war or terrorism.
+Added: • The potential impact of climate change.
+Added: • The impact of pandemics, epidemics, or any other health-related crisis.
+Added: • The costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals.
+Added: • The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which the Company must comply.
+Added: • The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters.
+Added: • The Company's success at managing the risks involved in the foregoing items.
+Added: In addition, financial markets, international relations, and global supply chains have been significantly impacted by recent U.S.
+Added: trade policies and practices.
+Added: Due to the rapidly evolving and changing state of U.S.
+Added: trade policies, the amount and duration of any tariffs and their ultimate impact on the Company, its customers, financial markets, and the overall U.S.
+Added: and global economies is currently uncertain.
+Added: Nonetheless, prolonged uncertainty, elevated tariff levels or their wide-spread use in U.S.
+Added: trade policy could weaken economic conditions and adversely impact the ability of borrowers to repay outstanding loans or the value of collateral securing these loans or adversely affect financial markets or the values of securities.
+Added: To the extent that these risks may have a negative impact on the financial condition of borrowers or financial markets, it could also have a material adverse effect on the Company's business, financial condition and results of operations.
+Added: Forward-looking statements speak only as of the date on which such statements are made.The Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.
Executive Overview
1 unchanged sentence
In addition, the degree of automation such as electronic data interchange, imaging, work flow, and web-based solutions varies greatly among customers and industries.
−Removed: These factors
−Removed: combine so that pricing varies greatly among the customer base.
+Added: These factors combine so that pricing varies greatly among the customer base.
In general, however, Cass is compensated for its processing services through service fees, transactional level payment services, and investment of account balances generated during the payment process.
6 unchanged sentences
The Bank also assesses fees on other services such as cash management services.
−Removed: Industry-wide factors that impact the Company include the willingness of large corporations to outsource key business functions such as freight, energy, telecommunication and environmental payment and audit.
−Removed: The benefits that can be achieved by outsourcing transaction processing, and the management information generated by Cass’ systems can be influenced by factors such as the competitive pressures within industries to improve profitability, the general level of transportation costs, deregulation of energy costs, and consolidation of telecommunication providers.
+Added: Industry-wide factors that impact the Company include the willingness of large corporations to outsource key business functions such as freight, energy, and environmental payment and audit.
+Added: The benefits that can be achieved by outsourcing transaction processing, and the management information generated by Cass’ systems can be influenced by factors such as the competitive pressures within industries to improve profitability, the general level of transportation costs and deregulation of energy costs.
Economic factors that impact the Company include the general level of economic activity that can affect the volume and size of invoices processed, the ability to hire and retain qualified staff, and the growth and quality of the loan portfolio.
1 unchanged sentence
As discussed in greater detail in Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” a decline in the general level of interest rates can have a negative impact on net interest income and conversely, a rise in the general level of interest rates can have a positive impact on net interest income.
−Removed: The cost of fuel is another factor that has a significant impact on the transportation sector.
−Removed: As the price of fuel goes up or down, the Company’s earnings increase or decrease with the dollar amount of transportation invoices.
+Added: The cost of energy is another factor that has a significant impact on the transportation and facility sectors.
+Added: As the price of energy goes up or down, the Company’s earnings increase or decrease with the dollar amount of transportation and facility expense invoices.
The Company continues to operate profitably, posting a 1.43% return on average assets and 14.98% return on average equity.
The Company’s common equity Tier 1 capital ratio was 15.10% at December 31, 2025, significantly exceeding regulatory requirements.
−Removed: In addition, the Company has maintained exceptional credit quality with no non-performing loans at December 31, 2024, and no loan charge-offs during the year ended December 31, 2024.
+Added: In addition, the Company has maintained exceptional credit quality with no loan charge-offs during the year ended December 31, 2025.
The Company’s solid capital and liquidity positions, combined with ongoing earnings, are expected to continue to allow for investment in strategic opportunities when they become available, in addition to return of capital to shareholders.
4 unchanged sentences
Recent Industry Developments
−Removed: The transportation industry continues to experience a decline in overall freight rates caused by an ongoing freight recession.
−Removed: The freight recession adversely affects the number of freight transactions and dollar amount of invoices processed.
−Removed: Partially as a result, the Company's transportation invoice and dollar volumes declined 0.6% and 5.7%, respectively during the year ended December 31, 2024 as compared to the same period in 2023.
−Removed: Transportation dollar volumes are key to the Company’s revenue as higher volumes generally lead to an increase in payment float, which generates interest income, as well as an increase in payments in advance of funding, which generates financial fees.
+Added: While freight rates have recently begun gradually increasing after a number of quarters of decline since 2023, volumes continue to decline on a year-over-year basis, which continues to put pressure on transportation related processing fees.
+Added: In addition, carrier consolidation with small and medium-sized trucking companies exiting the market or selling to larger carriers continues to put downward pressure on financial fees as the smaller trucking companies were larger users of our quick pay solutions.
+Added: The Company started to see increased tariff related charges on shipping invoices of its clients beginning in April 2025.
+Added: The Company estimates that transportation dollar volumes were approximately $600 million higher in 2025 than 2024 due to the impact of tariffs.
+Added: The Company benefits from higher dollar volumes given the related increases in accounts and drafts payable and interest income.
+Added: The Company has experienced an increase in facility dollar volumes in recent quarters due to higher energy usage and prices, in addition to onboarding new clients with high dollar volumes as compared to the related transaction count.
+Added: Energy prices are rising due to a number of factors, including an aging power grid, and rising demand for electricity as a result of data center construction to power artificial intelligence and electric vehicles.
Recent Items of Note
−Removed: Average interest-earning assets for December 31, 2024 declined $65.4 million, or 3.1%, as compared to 2023.
−Removed: The Company had fewer funds to invest due to the loss of approximately $100.0 million of balances in February 2024 as a result of a cyber attack experienced by a CassPay client.
−Removed: CassPay offers solutions such as integrated payments, a B2B payment platform for clients.
−Removed: The loss of CassPay balances was partially offset by an increase in facility dollar volumes of 8.1%, leading to higher average accounts and drafts payable.
−Removed: Despite the decline in average interest-earning assets during the year, the Company’s liquidity position and balance sheet remains strong.
−Removed: The Company maintained average short-term investments of $326.2 million during 2024.
−Removed: In addition, all of the Company's investment securities are classified as available-for-sale and there were no outstanding borrowings at December 31, 2024.
−Removed: The Company recorded bad debt expense of $7.8 million for the year ended December 31, 2024 on a funding receivable related to a facility client.
−Removed: See Note 15, "Commitments and Contingencies" for further information.
−Removed: During July 2024, the Company approved an Amendment providing for the termination of its noncontributory defined-benefit pension plan.
−Removed: The Company recorded a one-time termination expense of approximately $3.5 million through operating expense related to the plan termination during the fourth quarter of 2024 as the plan liabilities were settled.
−Removed: The successful termination of the plan is expected to reduce run rate operating expense by approximately $1.0 million on an annual basis.
−Removed: In December 2024, the Company acquired AcuAudit, a freight audit platform for ocean and international air freight, from Acuitive Solutions LLC.
−Removed: The Asset Purchase Agreement reflects a base purchase price of $3.0 million and an earnout based on annualized recurring revenue at the end of 24 months.
−Removed: Current annualized recurring revenue is approximately $2.5 million.
−Removed: The Company expects the impact of the acquisition to be EBITDA neutral in 2025 and a minimal negative impact to diluted earnings per share driven by intangible amortization.
+Added: Net interest income increased $13.5 million, or 19.8%, as compared to the same period last year.
+Added: The increase in net interest income was attributable to the net interest margin improving to 3.83% as compared to 3.42% in the same period last year, in addition to an increase in average interest-earning assets of $136.8 million, or 6.8%.
+Added: The Company generally benefits from a higher interest rate environment due to a large percentage of its funding sources being non-interest bearing.
+Added: The One Big Beautiful Bill Act (“OBBBA”) was enacted on July 4, 2025.
+Added: Among other things, the new law makes permanent certain expiring business tax provisions of the Tax Cuts and Jobs Act (“TCJA”).
+Added: These include provisions which allow businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets and the cost of qualified domestic research and development.
+Added: The OBBBA also imposes a floor on tax deductions taken on charitable contributions.
+Added: The OBBBA also significantly changes U.S.
+Added: tax law related to foreign operations and certain tax credits.
+Added: The impact of the OBBBA is not expected to have a material impact on the Company's consolidated financial statements.
+Added: Discontinued Operations
+Added: On April 7, 2025, the Company signed an Asset Purchase Agreement providing for the sale of its Telecom Expense Management & Managed Mobility Services (“TEM”) business to Asignet USA Inc.
+Added: The sale closed on June 30, 2025.
+Added: We have applied discontinued operations accounting in accordance with FASB Accounting Standards Codification (“ASC”), Topic 205-20, “Presentation of Financial Statements – Discontinued Operations,” to the assets and liabilities sold related to the Company's TEM Business Unit as of and for the years ended December 31, 2025, 2024, and 2023, as applicable.
+Added: All financial information in this Annual Report on Form 10-K is reported on a continuing operations basis, unless otherwise noted.
+Added: See Note 2 and Note 20 to the Company's consolidated financial statements for further discussion regarding discontinued operations and subsequent events associated with discontinued operations.
Summary of Results
−Removed: Various indicators are used by management in evaluating the Company's financial condition and operating performance.
−Removed: Among these indicators are net income and earnings per share, total revenue, operating expense, asset quality indicators such as nonperforming assets to assets and net charge-offs to average loans, and return on average assets and equity.
(In thousands except per share data) For the Years Ended December 31, % Change
4 unchanged sentences
Provision for (release of) credit losses 348 447 (550) (22.1) % (181.3) %
+Added: Loss on sale of investment securities (3,534) (45) (173) N/M (74.0) %
Other 6,865 5,247 5,089 30.8 % 3.1 %
3 unchanged sentences
Income tax expense 7,647 4,887 6,574 56.5 % (25.7) %
+Added: Net income from continuing operations $ 31,112 $ 18,558 $ 27,890 67.6 % (33.5) %
+Added: Income from discontinued operations, net of tax $ 4,004 $ 610 $ 2,169 556.4 % (71.9) %
Net income $ 35,116 $ 19,168 $ 30,059 83.2 % (36.2) %
+Added: Diluted earnings per share from continuing operations $ 2.31 $ 1.35 $ 2.02 71.1 % (33.2) %
+Added: Diluted earnings per share from discontinued operations $ 0.30 $ 0.04 $ 0.16 650.0 % (75.0) %
Diluted earnings per share $ 2.61 $ 1.39 $ 2.18 87.8 % (36.2) %
1 unchanged sentence
Return on average equity 14.98 % 8.37 % 14.24 % — —
−Removed: The Company recorded revenue of $199.2 million in December 31, 2024, up 0.8% from the prior year, due to increases in processing fees and net interest income, partially offset by a decrease in financial fees and the negative variance in the provision for (release of) credit losses.
−Removed: Operating expenses increased 9.3% largely driven by $7.8 million of bad debt expense experienced on a funding receivable related to a facility client as well as a one-time non-cash expense of $3.5 million in the fourth quarter of 2024 related to the termination of its noncontributory defined-benefit pension plan.
−Removed: Net income was $19.2 million and diluted EPS was $1.39 per share, decreases of 36.2% for both from the prior year.
−Removed: The Company posted a 0.82% return on average assets and 8.37% return on average equity.
−Removed: The Company did not have any nonperforming assets at December 31, 2024 and did not have any loan charge-offs during 2024.
+Added: The Company recorded revenue of $190.8 million in 2025, up 5.3% from the prior year, largely due to an increase in net interest income, partially offset by a decrease in financial fees and a loss on sale of investment securities.
+Added: Operating expense decreased 3.6% in 2025, largely driven by $7.8 million of bad debt expense in 2024 and $2.0 million of bad debt recovery experienced in 2025.
+Added: Net income was $35.1 million and diluted EPS was $2.61 per share in 2025, increases of 83.2% and 87.8%, respectively, from the prior year.
+Added: The Company posted a 1.43% return on average assets and 14.98% return on average equity in 2025.
Further detail about the components of revenue and expenses are explained in the sections following.
5 unchanged sentences
2025 2024 2023 2025 v.
−Removed: Transportation invoice transaction volume 35,729 35,949 36,807 (0.6) % (2.3) %
−Removed: Transportation invoice dollar volume $ 36,113,169 $ 38,288,478 $ 44,749,359 (5.7) % (14.4) %
−Removed: Facility transaction volume (1)
−Removed: 17,135 13,857 12,990 23.7 % 6.7 %
−Removed: Facility dollar volume (1)
−Removed: $ 21,438,282 $ 19,836,821 $ 19,514,049 8.1 % 1.7 %
+Added: Transportation invoice volume 34,451 35,729 35,949 (3.6) % (0.6) %
+Added: Transportation dollar volume $ 36,447,471 $ 36,113,169 $ 38,288,478 0.9 % (5.7) %
+Added: Facility expense invoice volume 16,508 16,572 13,220 (0.4) % 25.4 %
+Added: Facility expense dollar volume $ 23,256,090 $ 20,272,451 $ 18,599,214 14.7 % 9.0 %
Average payments in advance of funding $ 175,129 $ 202,860 $ 234,865 (13.7) % (13.6) %
2 unchanged sentences
Other income $ 6,865 $ 5,247 $ 5,089 30.8 % 3.1 %
−Removed: (1) Includes utility, telecom and waste
−Removed: Processing fees increased $3.1 million, or 3.9%, during 2024 largely driven by a 23.7% increase in facility transaction volumes.
−Removed: Transportation invoice volumes decreased 0.6% over the same period.
−Removed: The decline in transportation volumes is primarily due to the on-going freight recession.
−Removed: Financial fees decreased $2.7 million, or 5.8%, in 2024 primarily attributable to the decline in transportation invoice dollar volumes of 5.7%.
−Removed: The decline in transportation invoice dollar volumes had a direct effect on the 13.6% decrease in average payments in advance of funding, which is the primary generator of financial fees.
−Removed: Other income increased $965,000, or 19.6%, in 2024 largely due to higher bank-owned life insurance revenue and TouchPoint fees.
+Added: Loss on sale of investment securities $ (3,534) $ (45) $ (173) N/M (74.0) %
+Added: Processing fees increased $68,000, or 0.1%, during 2025 compared to 2024, due to the AcuAudit acquisition in December 2024, partially offset by decreases in facility and transportation volumes of 0.4% and 3.6%, respectively.
+Added: The decline in transportation volumes was primarily due to the on-going freight recession and the impact of tariffs.
+Added: Facility expense invoice volumes were flat in 2025 after experiencing 25.4% growth in 2024.
+Added: Financial fees decreased $2.2 million, or 5.1%, in 2025 compared to 2024, which was primarily attributable to a 13.7% decrease in average payments in advance of funding in addition to the changes in the manner in which facility vendors receive payments.
+Added: Average payments in advance of funding declined in 2025 compared to 2024 due to the consolidation of freight carriers, partially offset by a 0.9% increase in transportation dollar volumes.
+Added: Other income increased $1.6 million, or 30.8%, during 2025 compared to 2024 primarily due to higher bank-owned life insurance income as well as growth in TouchPoint related church management software fees.
+Added: The Company sold $34.0 million of corporate investment securities with a weighted-average yield of 2.29% at a loss of $3.5 million in June 2025 in an effort to reposition the investment portfolio and improve the net interest margin and net interest income in future periods.
Net Interest Income
14 unchanged sentences
(1) Presented on a tax-equivalent basis using a tax rate of 21%.
−Removed: The increase in net interest income in 2024 as compared to 2023 is primarily due to an increase in the net interest margin to 3.42% as compared to 3.25% in the prior year.
−Removed: The increase in the net interest margin was partially offset by a decrease in average earning assets of $65.4 million, or 3.1%.
−Removed: The yield on interest-earning assets increased 39 basis points from 4.04%
−Removed: in 2023 to 4.43% in 2024 while the cost of interest-bearing liabilities increased 35 basis points from 2.84% in 2023 to 3.19% in 2024.
−Removed: Average loans decreased $6.9 million, or 0.7%, to $1.05 billion.
−Removed: This decrease was due to the Company opting to be more selective in booking new loans as a result of a decline in average deposits.
+Added: The $13.5 million increase in net interest income in 2025 as compared to 2024 was primarily due to an increase in net interest margin to 3.83% as compared to 3.42% in the prior year, in addition to the increase in average earning assets of $136.8 million, or 6.8%.
+Added: The yield on interest-earning assets increased 16 basis points from 4.43% in 2024 to 4.59% in 2025 while the cost of interest-bearing liabilities decreased 55 basis points from 3.19% in 2024 to 2.64% in 2025.
+Added: Average loans increased $54.3 million, or 5.2%, in 2025 compared to 2024, to $1.10 billion.
+Added: The Company experienced significant loan growth during the first quarter of 2025 and then a subsequent decline in loans during the remainder of the year.
The average yield on loans increased 37 basis points to 5.65% in 2025.
−Removed: Average investment securities decreased $97.5 million, or 13.3%, due to the sale and maturity of investment securities throughout 2024.
−Removed: The investment portfolio will expand and contract over time as the Company manages its liquidity and interest rate position.
−Removed: The average tax-equivalent yield on investment securities increased 19 basis points to 2.82% in 2024 as a result of purchases of new investment securities at current market interest rates, which are higher than the average interest rate in the current investment portfolio.
−Removed: Average short-term investments, consisting of interest-bearing deposits in other financial institutions and federal funds sold, increased $39.0 million, or 13.6%.
−Removed: The increase is primarily a result of the decline in average investment securities and loans, partially offset by a decrease in average funding sources.
−Removed: The average yield on short-term investments increased 5 basis points to 4.83% in 2024 primarily due to the higher short-term market interest rates when comparing the periods.
+Added: Average investment securities increased $58.8 million, or 9.2% in 2025 compared to 2024.
+Added: The increase was driven by the utilization of available liquidity arising from an increase in average accounts and drafts payable to purchase investment securities.
+Added: The average yield on taxable investment securities increased 41 basis points to 3.24% and the average yield on tax-exempt investment securities increased 43 basis points to 3.22%.
+Added: Average short-term investments, consisting of interest-bearing deposits in other financial institutions and federal funds sold, increased $23.7 million, or 7.3% in 2025 compared to 2024.
+Added: The increase is primarily a result of the increase in average funding sources, partially offset by the increase in average loans and average investment securities.
+Added: The average yield on short-term investments decreased 88 basis points to 3.95% primarily due to the decrease in the Federal Funds rate.
The majority of these short-term investments are held at the Federal Reserve Bank.
−Removed: The average balance of interest-bearing deposits increased $63.5 million, or 11.1%.
+Added: The average balance of interest-bearing deposits decreased $17.5 million, or 2.8% in 2025 compared to 2024.
Average non-interest-bearing demand deposits decreased $8.2 million, or 2.0%.
−Removed: The Company has experienced a migration of client funds from non-interest bearing to interest-bearing driven by the higher interest rate environment prior to the recent 100 basis point decline in the Federal Funds rate.
−Removed: The average rate paid on interest-bearing deposits increased 36 basis points to 3.19% in 2024 due to higher average short-term interest rates.
−Removed: Average accounts and drafts payable decreased $50.7 million, or 4.7%.
−Removed: The decrease in these balances, which are non-interest bearing, are primarily reflective of a cyber event at a CassPay client during the first quarter of 2024, which decreased average balances by approximately $100.0 million, and a decrease in transportation dollar volumes of 0.6%, partially offset by an increase in facility dollar volumes of 8.1%.
−Removed: Accounts and drafts payable are a significant source of funding generated by payment float from transportation and facility clients.
+Added: The Company has experienced deposit attrition due to a decrease in the overall level of some larger commercial deposits due to client funding needs for acquisitions and other purposes.
+Added: The average rate paid on interest-bearing deposits decreased 55 basis points to 2.64% in 2025 due to the decrease in the Federal Funds rate.
+Added: Average accounts and drafts payable increased $150.3 million, or 14.9%, in 2025 compared to 2024, to $1.16 billion.
+Added: The increase in average accounts and drafts payable was primarily driven by the increase in facility dollar volumes of 14.7% as well as the increase in transportation dollar volumes of 0.9%.
Distribution of Assets, Liabilities and Shareholders' Equity;
8 unchanged sentences
$ 1,103,067 $ 62,340 5.65 % $ 1,048,732 $ 55,362 5.28 % $ 1,055,668 $ 50,825 4.81 %
−Removed: Securities (4) :
+Added: Investment securities (4) :
Taxable 535,416 17,328 3.24 474,753 13,423 2.83 541,159 14,118 2.61
9 unchanged sentences
Goodwill and other intangibles 20,515 15,182 15,856
−Removed: Unrealized (loss) gain on investment securities (57,772) (68,893) (43,147)
+Added: Unrealized loss on investment securities (47,093) (57,772) (68,893)
Other assets 66,116 72,358 63,777
Allowance for credit losses (14,014) (13,369) (13,324)
+Added: Assets of discontinued operations 7,518 14,049 13,781
Total assets $ 2,460,414 $ 2,349,397 $ 2,419,608
8 unchanged sentences
Total interest-bearing liabilities 617,281 16,327 2.64 % 634,592 20,258 3.19 % 573,308 16,266 2.84 %
−Removed: Noninterest-bearing liabilities
+Added: Non-interest bearing liabilities
Demand deposits 406,551 414,711 512,608
1 unchanged sentence
Other liabilities 40,782 37,933 38,501
+Added: Liabilities of discontinued operations 1,301 23,460 24,836
Total liabilities 2,225,933 2,120,453 2,208,539
8 unchanged sentences
(2) Interest income on loans includes net loan fees of $744,000, $477,000, and $686,000 for 2025, 2024 and 2023, respectively.
−Removed: Loan fees include $0, $0, and $167,000 of Paycheck Protection Program ("PPP") loan fees for 2024, 2023 and 2022, respectively.
(3) Interest income is presented on a tax-equivalent basis assuming a tax rate of 21%.
7 unchanged sentences
$ 2,954 $ 4,024 $ 6,978 $ (338) $ 4,875 $ 4,537
+Added: Investment securities:
Taxable 1,832 2,073 3,905 (1,823) 1,128 (695)
26 unchanged sentences
Total loans $ 1,061,217 $ 1,081,989 $ 1,014,318
−Removed: The Company does not have any foreign loans.
−Removed: The Company's loan portfolio includes $110,000 of single family real estate mortgages, as the Company does not market its services to retail customers.
+Added: At December 31, 2025, the Company did not have any foreign loans or single family real estate mortgages, as the Company does not market its services to retail customers.
Also, the Company had no sub-prime mortgage loans or residential development loans in its portfolio in any of the years presented.
10 unchanged sentences
Construction 25,586 18,799 — 3,846 — — 48,231
+Added: Other — 27 — — — — 27
Total loans $ 139,022 $ 97,800 $ 512,112 $ 34,575 $ 263,889 $ 13,819 $ 1,061,217
9 unchanged sentences
When problems are identified, appraised values are updated on a continual basis, either internally or through an updated external appraisal.
−Removed: Loans increased $67.7 million, or 6.7%, to $1.08 billion at December 31, 2024.
−Removed: Franchise restaurant loans, which are included in commercial and industrial loans, increased $43.1 million during 2024.
+Added: Loans decreased $20.8 million, or 1.9%, to $1.06 billion at December 31, 2025 as compared to December 31, 2024.
+Added: Franchise restaurant loans, which are included in commercial and industrial loans, decreased $22.1 million during 2025.
Faith-based loans increased $3.2 million during 2025.
Additional details regarding the types and maturities of loans in the loan portfolio are contained in the tables above and in Item 8, Note 5.
−Removed: Performing loans subject to special monitoring increased from $5.5 million at December 31, 2023 to $51.2 million at December 31, 2024.
−Removed: These loans possess some credit deficiency or potential weakness which requires a higher level of management attention.
−Removed: The increase during 2024 is primarily due to a large franchise restaurant relationship that has experienced some level of financial weakness.
−Removed: However, the Company does not believe there is any concern of credit loss at December 31, 2024.
Provision and Allowance for Credit Losses on Loans and Allowance for Unfunded Commitments
−Removed: The Company recorded a provision for credit losses and off-balance sheet credit exposures of $447,000 in 2024 and a release of credit losses of $550,000 in 2023.
−Removed: The amount of the provision for (release of) credit losses was derived from the Company’s CECL model.
+Added: The Company recorded a provision for credit losses and off-balance sheet credit exposures of $348,000 and $447,000 in 2025 and 2024, respectively.
+Added: The amount of the provision for credit losses was derived from the Company’s CECL model.
The amount of the provision will fluctuate as determined by these analyses.
3 unchanged sentences
The allowance for unfunded commitments was $419,000 at December 31, 2025 and $273,000 at December 31, 2024.
−Removed: There were no nonperforming loans outstanding at December 31, 2024 or December 31, 2023.
+Added: The balance of nonperforming loans outstanding was $7.0 million at December 31, 2025 and $0 at December 31, 2024.
The ACL has been established and is maintained to estimate the lifetime credit losses expected in the loan portfolio.
1 unchanged sentence
Charges or credits are made to expense based on changes in the economic forecast, qualitative risk factors, loan volume, and individual loans.
−Removed: For loans that are individually
−Removed: evaluated, the Company uses two impairment measurement methods:
+Added: For loans that are individually evaluated, the Company uses two impairment measurement methods:
1) the present value of expected future cash flows and 2) collateral values.
42 unchanged sentences
Construction 4.6 3.2 1.6 2.4 4.1
−Removed: PPP — — — 0.7 12.3
Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
5 unchanged sentences
It is the policy of the Company to continually monitor its loan portfolio and to discontinue the accrual of interest on any loan for which collection is not probable.
−Removed: Subsequent payments received on such loans are applied to principal if collection of principal is not probable;
+Added: Subsequent payments received on such loans are applied to principal if collection
+Added: of principal is not probable;
otherwise, these receipts are recorded as interest income.
There was no interest income recognized on nonaccrual loans for the years ended 2025 and 2024.
−Removed: There were no nonaccrual loans at December 31, 2024 and December 31, 2023.
+Added: There were three nonaccrual loans with a balance of $7.0 million at December 31, 2025 and none at December 31, 2024.
There were no foreclosed assets at December 31, 2025 or December 31, 2024.
−Removed: The Company does not have any other interest-earning assets which would have been included in nonaccrual, past due or restructured loans if such assets were loans.
+Added: The Company did not have any other interest-earning assets which would have been included in nonaccrual, past due or restructured loans if such assets were loans.
Summary of Nonperforming Assets
3 unchanged sentences
Nonaccrual $ 3,770 $ — $ — $ 1,150 $ —
+Added: Contractually past due 90 days or more and still accruing — — — — —
+Added: Real estate – mortgage:
+Added: Nonaccrual 3,222 — — — —
+Added: Contractually past due 90 days or more and still accruing — — — — —
Total nonperforming loans $ 6,992 $ — $ — $ 1,150 $ —
1 unchanged sentence
Total nonperforming assets $ 6,992 $ — $ — $ 1,150 $ —
−Removed: Operating Expenses
−Removed: Operating expenses in 2024 compared to 2023 and 2022 include the following significant pre-tax components:
+Added: Operating Expense
+Added: Operating expense in 2025 compared to 2024 and 2023 include the following significant pre-tax components:
(In thousands) December 31,
2 unchanged sentences
Share-based compensation 4,186 3,052 4,007
−Removed: Net periodic pension cost (benefit) 4,172 878 (2,453)
+Added: Employee profit sharing 6,284 4,452 5,815
+Added: Net periodic pension cost — 4,169 878
Other benefits 18,886 17,293 17,591
2 unchanged sentences
Equipment 9,917 8,101 6,895
−Removed: Bad debt expense 7,847 — —
+Added: Bad debt (recovery) expense (2,000) 7,847 —
Amortization of intangible assets 1,172 692 692
1 unchanged sentence
Total operating expense $ 151,991 $ 157,742 $ 142,505
−Removed: Total operating expenses increased 9.3% in 2024 compared to 2023.
−Removed: Salaries and commissions increased $2.9 million, or 3.1%, as a result of merit increases and an increase in average full-time equivalent employees ("FTEs") of 1.6%.
−Removed: Share-based compensation decreased $1.0 million, reflecting the Company's financial performance and the impact on performance-based restricted stock between the periods.
−Removed: Net periodic pension cost increased $3.3 million.
+Added: Total operating expense decreased 3.6% in 2025 compared to 2024 largely driven by the $2.0 million bad debt recovery in 2025 compared to a $7.8 million bad debt expense on a funding receivable related to a facility client in 2024.
+Added: Personnel expenses increased $729,000, or 0.7% in 2025 compared to 2024 .
+Added: Salaries and commissions increased $339,000, or 0.4%, as a result of the AcuAudit acquisition and merit increases, partially offset by a decrease in average full-time equivalent employees ("FTEs") of 5.4% due to strategic investments in various technology initiatives.
+Added: compensation increased $1.1 million due to the improvement in earnings.
+Added: Other benefits increased $1.6 million, or 9.2%, due to higher health insurance costs, partially offset by the decline in average FTEs.
+Added: Net periodic pension cost decreased $4.2 million in 2025 compared to 2024.
The Company recorded a one-time non-cash expense of $3.5 million in the fourth quarter of 2024 related to the termination of its noncontributory defined-benefit pension plan.
−Removed: The termination of the plan is expected to reduce run rate operating expense by approximately $1.0 million on an annual basis.
−Removed: Other benefits, such as 401(k) match, health insurance and payroll taxes decreased $507,000, or 2.5%.
−Removed: Equipment expense increased $1.2 million, or 16.3%, primarily due to an increase in depreciation expense on software related to recently completed technology initiatives.
−Removed: The Company recorded bad debt expense during 2024 of $7.8 million on a funding receivable related to a facility client.
−Removed: While the Company is in the process of litigation to collect the receivable, a full write-off to bad debt expense was recorded as a result of a credit analysis.
−Removed: Other operating expense increased $1.3 million, or 4.2%, to $31.2 million.
−Removed: The Company incurred $1.3 million of late fees on facility transactions during 2024 driven by a check processing delay with a third-party vendor, the same CassPay client which incurred the cyber attack.
+Added: Equipment expense increased $1.8 million, or 22.4%, in 2025 compared to 2024, primarily due to an increase in depreciation expense on software related to recently completed technology initiatives.
+Added: The $480,000 increase in amortization of intangible assets in 2025 compared to 2024 was driven by the AcuAudit acquisition in December 2024.
+Added: The $1.0 million increase in other operating expense for 2025 includes a $1.1 million restructuring charge primarily related to the consolidation of the Company's non-transportation invoice and payment processing activities into a single Facilities division.
Income Tax Expense
1 unchanged sentence
When measured as a percent of pre-tax income, the Company’s effective tax rate was 19.70% and 20.80% in 2025 and 2024, respectively.
−Removed: The increase in the effective tax rate in 2024 compared to 2023 was primarily due to a lower level of tax-free interest income on municipal securities in the current year, in addition to $304,000 of tax penalties incurred in 2024 on the surrender and redeployment of bank-owned life insurance policies to increase future noninterest income.
+Added: The decrease in the effective tax rate in 2025 compared to 2024 is reflective of purchases of tax-exempt municipal investment securities during 2025 and the impact of certain tax credits.
+Added: Summary of Discontinued Operations
+Added: (In thousands except per share data) For the Years Ended December 31, % Change
+Added: 2025 2024 2023 2025 v.
+Added: Processing fees $ 7,630 $ 15,795 $ 17,837 (51.7) % (11.4) %
+Added: Financial fees 888 713 646 24.5 % 10.4 %
+Added: Other 3,402 1,494 2,059 127.7 % (27.4) %
+Added: Gain on sale of TEM business 3,550 — — N/M N/M
+Added: Total revenues 15,470 18,002 20,542 (14.1) % (12.4) %
+Added: Operating expense 10,156 17,229 17,649 (41.1) % (2.4) %
+Added: Income before income tax expense 5,314 773 2,893 587.5 % (73.3) %
+Added: Income tax expense 1,310 163 724 703.7 % (77.5) %
+Added: Net income from discontinued operations $ 4,004 $ 610 $ 2,169 556.4 % (71.9) %
+Added: Facility transaction volume 259 563 637 (54.0) % (11.6) %
+Added: Facility dollar volume $ 501,626 $ 1,165,831 $ 1,237,607 (57.0) % (5.8) %
+Added: Net income from discontinued operations for 2025 was $4.0 million, as compared to $610,000 in 2024, primarily reflecting a $3.6 million gain on the sale of the TEM business in June 2025.
Investment Portfolio
−Removed: Investment securities decreased $99.1 million, or 15.8%, during 2024 to $528.0 million at December 31, 2024.
−Removed: Treasury securities decreased $108.7 million to $0 at December 31, 2024 compared to $108.7 million at December 31,
−Removed: State and political securities decreased $47.1 million, or 21.5%, to $172.0 million at December 31, 2024.
−Removed: Mortgage-backed securities increased $75.5 million, or 47.8%, to $233.3 million at December 31, 2024.
+Added: Investment securities available-for-sale increased $242.8 million, or 46.0%, during 2025 to $770.8 million at December 31, 2025.
+Added: State and political securities increased $68.2 million, or 39.7%, to $240.2 million at December 31, 2025.
+Added: Mortgage-backed securities increased $245.4 million to $478.7 million at December 31, 2025.
+Added: Corporate bonds decreased $58.9 million to $28.9 million at December 31, 2025.
The investment portfolio provides the Company with a significant source of earnings, secondary source of liquidity, and mechanisms to manage the effects of changes in loan demand and interest rates.
Therefore, the size, asset allocation and maturity distribution of the investment portfolio will vary over time depending on management’s assessment of current and future interest rates, changes in loan demand, changes in the Company’s sources of funds and the economic outlook.
−Removed: During 2024, the Company purchased investment securities totaling $119.7 million and sold investment securities totaling $60.1 million.
−Removed: The Company generally utilized funds from maturities and sales of U.S.
−Removed: Treasury securities and state and political securities to increase short-term investments and fund purchases of mortgage-backed securities.
+Added: During 2025, the Company purchased investment securities totaling $435.2 million and sold investment securities totaling $129.9 million, including the sale of $34.0 million of
+Added: corporate bonds in June 2025 to reposition the investment portfolio.
+Added: The growth in the investment portfolio was primarily due to utilization of cash proceeds from an increase in funding sources.
There was no single issuer of securities in the investment portfolio at December 31, 2025 for which the aggregate amortized cost exceeded 10% of total shareholders' equity.
34 unchanged sentences
Accounts and drafts payable $ 1,124,858 $ 1,129,610 $ 1,053,269
−Removed: Total deposits decreased $172.9 million, or 15.2% during 2024.
−Removed: Noninterest-bearing demand deposits decreased $273.1 million, or 52.1%, to $251.2 million at December 31, 2024 and interest-bearing deposits increased $100.2 million, or 16.3%, to $716.7 million at December 31, 2024.
−Removed: The Company has experienced a migration of client funds from non-interest bearing to interest-bearing driven by the higher interest rate environment prior to the recent 100 basis point cumulative decline in the Federal Funds rate in the fourth quarter of 2024.
−Removed: The decrease in total deposits between the periods was also driven by timing of customer funds.
+Added: Total deposits increased $232.1 million, or 24.0% during 2025 compared to 2024.
+Added: Noninterest-bearing demand deposits increased $262.2 million, or 104.4%, to $513.4 million at December 31, 2025 and interest-bearing deposits decreased $30.1 million, or 4.2%, to $686.6 million at December 31, 2025.
+Added: The increase in total deposits between the periods was driven by timing of customer funds.
The average balance of deposits is more indicative of trends period to period.
−Removed: Accounts and drafts payable generated by the Company in its payment processing operations increased $77.9 million, or 7.3%, to $1.15 billion, at December 31, 2024.
−Removed: Due to the Company’s payment processing cycle, average balances are much more indicative of the underlying activity than period-end balances since point-in-time comparisons can be misleading if the comparison dates fall on different days of the week.
−Removed: Average accounts and drafts payable decreased $50.7 million, or 4.7%, to $1.03 billion during 2024.
−Removed: The decrease in these balances, which are non-interest bearing, are primarily reflective of a cyber event at a CassPay client during the first quarter of 2024, which decreased average balances by approximately $100.0 million, and a decrease in transportation dollar volumes of 0.6%, partially offset by an increase in facility dollar volumes of 8.1%.
+Added: Accounts and drafts payable generated by the Company in its payment processing operations decreased $4.8 million, or 0.4%, from the prior year to $1.12 billion, at December 31, 2025.
+Added: Due to the Company’s payment processing cycle,
+Added: average balances are much more indicative of the underlying activity than period-end balances since point-in-time comparisons can be misleading if the comparison dates fall on different days of the week.
+Added: Average accounts and drafts payable increased $150.3 million, or 14.9%, to $1.16 billion during 2025.
+Added: The increase in these balances, which are non-interest bearing, are primarily reflective of the increase in transportation and facility dollar volumes of 0.9%, and 14.7%, respectively.
The composition of average deposits and the average rates paid on those deposits is represented in the table entitled “Distribution of Assets, Liabilities and Shareholders' Equity;
15 unchanged sentences
The balance of liquid assets consists of cash and cash equivalents, which includes cash and due from banks, interest-bearing deposits in other financial institutions, federal funds sold, and money market funds.
−Removed: These balances totaled $349.7 million at December 31, 2024, a decrease of $22.7 million, or 6.1%, from December 31, 2023.
−Removed: The decrease during
−Removed: 2024 is primarily attributed to a decrease in deposits and an increase in loans, partially offset by decreases in securities available-for-sale and accounts and drafts receivable from customers and an increase in accounts and drafts payable.
−Removed: At December 31, 2024, cash and cash equivalents represented 14.6% of total assets and are the Company’s and its subsidiaries’ primary source of liquidity to meet future expected and unexpected loan demand, depositor withdrawals or reductions in accounts and drafts payable.
+Added: These balances totaled $392.3 million at December 31, 2025, an increase of $42.5 million, or 12.2%, from December 31, 2024.
+Added: The increase during 2025 is primarily attributed to an increase in deposits and a decrease in loans, partially offset by increases in securities available-for-sale and accounts and drafts receivable from customers.
+Added: At December 31, 2025, cash and cash equivalents represented 15.1% of total assets and were the Company’s and its subsidiaries’ primary source of liquidity to meet future expected and unexpected loan demand, depositor withdrawals or reductions in accounts and drafts payable.
Secondary sources of liquidity include the investment portfolio and borrowing lines.
−Removed: Total investment securities available-for-sale at fair value were $528.0 million at December 31, 2024, a decrease of $99.1 million, or 15.8%, from December 31, 2023.
+Added: Total investment securities available-for-sale at fair value were $770.8 million at December 31, 2025, an increase of $242.8 million, or 46.0%, from December 31, 2024.
Investment securities represented 29.6% of total assets at December 31, 2025.
8 unchanged sentences
Net income plus depreciation and amortization accounts for most of the operating cash provided.
−Removed: Net cash flows from investing and financing activities fluctuate greatly as the Company actively manages its investment and loan portfolios and customer activity influences changes in deposit and accounts and drafts payable balances.
+Added: Net cash flows from investing and financing activities fluctuate greatly as the Company actively manages its
+Added: investment and loan portfolios and customer activity influences changes in deposit and accounts and drafts payable balances.
Further analysis of the changes in these account balances is discussed earlier in this report.
3 unchanged sentences
Capital expenditures in 2026 are expected to primarily consist of purchases of equipment and software related to the payment and information processing services business.
−Removed: Net income plus amortization of intangible assets, net amortization of premium/discount on investment securities and depreciation of premises and equipment was $28.7 million and $39.5 million for the years ended December 31, 2024 and December 31, 2023, respectively, a decrease of $10.8 million year over year.
−Removed: The decrease was due to the decrease in net income of $10.9 million and lower net amortization of premium/discount on investment securities of $882,000, partially offset by an increase in depreciation of $1.1 million.
+Added: Net income plus amortization of intangible assets, net amortization of premium/discount on investment securities and depreciation of premises and equipment was $43.3 million and $28.5 million for the years ended December 31, 2025 and December 31, 2024, respectively, an increase of $14.8 million year over year.
+Added: The increase was due to the increase in net income of $15.9 million, an increase in amortization of intangible assets of $480,000, and an increase in depreciation of $1.0 million, partially offset by lower net amortization of premium/discount on investment securities of $2.6 million.
The net amortization of premium/discount on investment securities is dependent on the type of securities purchased and changes in the prevailing market interest rate environment.
−Removed: Other factors impacting the $2.0 million increase in net cash provided by operating activities include:
−Removed: • A decrease in share-based compensation expense of $1.0 million;
−Removed: • An increase in other operating activities, net of $8.2 million, primarily due to changes in various accounts receivable and payable;
−Removed: • An increase in current income tax liability of $2.3 million;
−Removed: • A change in the FASB ASC 715 pension adjustment of $2.6 million;
−Removed: • A change in the provision for (release of) credit losses of $1.0 million primarily due to changes in loans outstanding during the respective periods.
−Removed: On an overall basis, the Company's $2.0 million increase in net cash provided by operating activities was primarily due to changes in cash flows from fluctuations in tax and other accounts offset by the decline in net income.
+Added: Other factors impacting the $1.5 million decrease in net cash provided by operating activities include:
+Added: • A decrease in other operating activities, net of $15.9 million, primarily due to changes in various accounts receivable and payable;
+Added: • A decrease in the ASC 718 pension adjustment of $5.2 million;
+Added: • A decrease in net cash used from discontinued operations of $3.6 million;
+Added: partially offset by
+Added: • A smaller increase in accounts receivable, representing a positive variance of $3.5 million;
+Added: • An increase in the current income tax liability of $4.4 million.
There are several trends and uncertainties that may impact the Company’s ability to generate revenues and income at the levels that it has in the past.
In addition, these trends and uncertainties may impact available liquidity.
−Removed: Those that could
−Removed: significantly impact the Company include the general levels of interest rates, business activity, inflation, and energy costs as well as new business opportunities available to the Company.
+Added: Those that could significantly impact the Company include the general levels of interest rates, business activity, freight rates, inflation, and energy costs as well as new business opportunities available to the Company.
As a financial institution, a significant source of the Company’s earnings is generated from net interest income.
10 unchanged sentences
The relative level of energy costs can impact the Company’s earnings and available liquidity.
−Removed: Lower levels of energy costs will tend to decrease transportation and energy invoice amounts resulting in a corresponding decrease in accounts and drafts payable.
+Added: Lower levels of energy costs will tend to decrease transportation and facility expense invoice amounts resulting in a corresponding decrease in accounts and drafts payable.
Decreases in accounts and drafts payable generate lower interest income and reduce liquidity.
6 unchanged sentences
The Company and its banking subsidiary continue to exceed all regulatory capital requirements, as evidenced by the capital ratios at December 31, 2025 as shown in Item 8, Note 3 of this report.
−Removed: Cash dividends paid were $16.5 million and $16.0 million in 2024 and 2023, respectively.
−Removed: Shareholders’ equity was $229.0 million, or 9.6% of total assets, at December 31, 2024, a decrease of $779,000 as compared to December 31, 2023.
−Removed: The decrease was primarily a result of the payment of cash dividends of $16.5 million, and the repurchase of treasury shares of $7.2 million, partially offset by net income of $19.2 million and the decrease in accumulated other comprehensive loss of $2.3 million.
+Added: Cash dividends paid were $16.5 million for both 2025 and 2024.
+Added: Shareholders’ equity was $243.0 million, or 9.3% of total assets, at December 31, 2025, an increase of $14.0 million as compared to December 31, 2024.
+Added: The increase was primarily a result of net income of $35.1 million and the decrease in accumulated other comprehensive loss of $18.4 million, partially offset by the payment of cash dividends of $16.5 million, and the repurchase of treasury shares of $26.0 million.
Dividends from the Bank are a source of funds for payment of dividends by the Company to its shareholders.
2 unchanged sentences
As of December 31, 2025, unappropriated retained earnings of $31.1 million were available at the Bank for the declaration of dividends to the Company without prior approval from regulatory authorities.
−Removed: The Company maintains a treasury stock buyback program approved by the Board of Directors in October 2023 pursuant to which the Board of Directors has authorized the repurchase of up to 500,000 shares of the Company’s common stock and has no expiration date.
+Added: The Company maintains a treasury stock buyback program approved by the Board of Directors in November 2025 pursuant to which the Board of Directors has authorized the repurchase of up to 1,000,000 shares of the Company’s common stock and has no expiration date.
A total of 874,970 shares remain under the buyback program at December 31, 2025.
The Company repurchased a total of 617,415 shares at an aggregate cost of $26.0 million during the year ended December 31, 2025 and 167,455 shares at an aggregate cost of $7.2 million during the year ended December 31, 2024.
−Removed: A portion of the repurchased shares may be used for the Company’s employee benefit plans and the balance will be available
−Removed: for other general corporate purposes.
+Added: A portion of the repurchased shares may be used for the Company’s employee benefit plans and the balance will be available for other general corporate purposes.
The pace of future repurchase activity will depend on factors such as levels of regulatory capital, cash generation from operations, cash requirements for investments, repayment of debt, current stock price, business and market conditions, and other factors.
2 unchanged sentences
Impact of Inflation
−Removed: Inflation could have the impact of increasing our operating expenses, such as compensation expense.
+Added: Inflation could have the impact of increasing the Company's operating expenses, such as compensation expense.
Inflationary pressures may also have an impact on total assets, earnings and capital, which could impact the Company's ability to grow.
1 unchanged sentence
As a result of rising inflation, the Federal Reserve increased the Federal Funds rate throughout 2023 and 2024.
−Removed: The increase in the Federal Funds rate has contributed to the increase in the Company's net interest margin to 3.42% in 2024 from 3.25% in 2023 and 2.74% in 2022, therefore positively impacting net interest income.
−Removed: The Federal Reserve began to decrease the Federal Funds rate during the last four months of 2024 by a cumulative 100 basis points.
+Added: The increase in the Federal Funds rate contributed to the increase in the Company's net interest margin to 3.83% in 2025 from 3.42% in 2024 and 3.25% in 2023, therefore positively impacting net interest income.
+Added: The Federal Reserve began to decrease the Federal Funds rate during the last four months of 2024 by a cumulative 100 basis points and by another 75 basis points during the last four months of 2025.
Further decreases in the Federal Funds rate resulting from softening inflation or other reasons could negatively impact the Company's net interest margin and income in 2026.
21 unchanged sentences
In the normal course of business, the Company is party to activities that involve credit, market and operational risk that are not reflected in whole or in part in the Company’s consolidated financial statements.
−Removed: Such activities include traditional off-
−Removed: balance sheet credit-related financial instruments.
+Added: Such activities include traditional off-balance sheet credit-related financial instruments.
These financial instruments include commitments to extend credit, commercial letters of credit and standby letters of credit.
14 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.