What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-03-06 compared with 2025-03-05 · 284 added, 226 removed, 1062 unchanged (32% of the section changed)

7 unchanged sentences

Cash and cash equivalents 392,268 349,728

Securities available-for-sale, at fair value 528,021 627,117

Investment securities available-for-sale, at fair value 770,772 528,021

Loans 1,061,217 1,081,989

8 unchanged sentences

Other assets 59,889 67,741

Assets of discontinued operations — 14,413

Total assets $ 2,606,024 $ 2,395,081

5 unchanged sentences

Other liabilities 38,135 46,211

Liabilities of discontinued operations — 22,314

Total liabilities 2,363,026 2,166,051

22 unchanged sentences

Financial fees 40,398 42,584 45,339

Loss on sale of investment securities ( 3,534 ) ( 45 ) ( 173 )

Other 6,865 5,247 5,089

2 unchanged sentences

Interest and fees on loans 62,340 55,362 50,825

Interest and dividends on securities:

Interest and dividends on investment securities:

Taxable 17,328 13,422 14,118

13 unchanged sentences

Share-based compensation 4,186 3,052 4,007

Employee profit sharing 6,284 4,452 5,815

Net periodic pension cost — 4,169 878

3 unchanged sentences

Equipment 9,917 8,101 6,895

Bad debt expense 7,847 — —

Bad debt (recovery) expense ( 2,000 ) 7,847 —

Amortization of intangible assets 1,172 692 692

Other operating 31,242 29,983 22,078

Other operating expense 30,069 29,070 27,731

Total operating expense 151,991 157,742 142,505

Income before income tax expense 24,219 37,356 42,900

Income from continuing operations, before income tax expense 38,759 23,445 34,464

Income tax expense 7,647 4,887 6,574

Net income from continuing operations 31,112 18,558 27,890

Income from discontinued operations, net of tax 4,004 610 2,169

Net income $ 35,116 $ 19,168 $ 30,059

Basic earnings per share from continuing operations $ 2.36 $ 1.37 $ 2.06

Basic earnings per share from discontinued operations 0.30 0.05 0.16

Basic earnings per share $ 2.66 $ 1.42 $ 2.22

Diluted earnings per share from continuing operations $ 2.31 $ 1.35 $ 2.02

Diluted earnings per share from discontinued operations 0.30 0.04 0.16

Diluted earnings per share $ 2.61 $ 1.39 $ 2.18

7 unchanged sentences

Net income $ 35,116 $ 19,168 $ 30,059

Other comprehensive income (loss):

Net unrealized (loss) gain on securities available-for-sale ( 1,931 ) 12,605 ( 79,746 )

Other comprehensive income:

Net unrealized gain (loss) on securities available-for-sale 21,419 ( 1,931 ) 12,605

Tax effect ( 5,099 ) 459 ( 3,000 )

Reclassification adjustments for losses (gains) included in net income 45 173 ( 15 )

Reclassification adjustments for losses included in net income 3,534 45 173

Tax effect ( 841 ) ( 10 ) ( 41 )

FASB ASC 715 pension adjustment 5,191 2,550 1,504

ASC 715 pension adjustment — 5,191 2,550

Tax effect — ( 1,235 ) ( 607 )

Foreign currency translation adjustments, net of tax ( 576 ) ( 238 ) 172

Other comprehensive income (loss) 2,281 11,852 ( 59,774 )

Total comprehensive income (loss) $ 21,449 $ 41,911 $ ( 24,870 )

Other comprehensive income 18,437 2,281 11,852

Total comprehensive income $ 53,553 $ 21,449 $ 41,911

See accompanying notes to consolidated financial statements.

6 unchanged sentences

Net Income $ 35,116 $ 19,168 $ 30,059

net income from discontinued operations 4,004 610 2,169

Net income from continuing operations $ 31,112 $ 18,558 $ 27,890

Adjustments to reconcile net income to net cash provided by operating activities:

2 unchanged sentences

Depreciation 6,029 5,033 3,954

Losses (gains) on sales of securities 45 173 ( 15 )

Loss on sales of securities 3,534 45 173

Share-based compensation expense 4,186 3,052 4,007

Provision for (release of) credit losses 348 447 ( 550 )

Deferred income tax benefit ( 1,046 ) ( 284 ) ( 1,163 )

Increase in bank-owned life insurance ( 1,870 ) ( 1,165 ) ( 1,161 )

Increase (decrease) in current income tax liability 4,256 ( 192 ) ( 1,766 )

FASB ASC 715 pension adjustment, net of tax 5,191 2,550 1,504

ASC 715 pension adjustment, net of tax — 5,191 806

Increase in accounts receivable ( 322 ) ( 3,830 ) ( 3,082 )

Other operating activities, net ( 10,611 ) 5,322 ( 49 )

Net cash provided by operating activities - continuing operations 38,808 36,744 35,386

Net cash (used in) provided by operating activities - discontinued operations ( 1,371 ) 2,205 1,551

Net cash provided by operating activities 37,437 38,949 36,937

3 unchanged sentences

Purchases of securities available-for-sale ( 435,237 ) ( 119,744 ) ( 15,332 )

Net (increase) decrease in loans ( 67,671 ) 68,588 ( 122,326 )

Purchase of bank-owned life insurance — — ( 4,000 )

(Increase) decrease in payments in advance of funding ( 9,669 ) 94,914 ( 2,348 )

Net decrease (increase) in loans 20,772 ( 67,671 ) 68,588

Proceeds from sale of TEM business 18,000 — —

Decrease (increase) in payments in advance of funding 44,016 ( 9,669 ) 94,914

Purchases of premises and equipment, net ( 5,663 ) ( 8,512 ) ( 11,938 )

Asset acquisition — ( 2,954 ) —

Net cash provided by (used in) investing activities 3,951 284,662 ( 306,390 )

Net cash (used in) provided by investing activities - continuing operations ( 145,180 ) 4,768 287,048

Net cash used in investing activities - discontinued operations ( 99 ) ( 817 ) ( 2,386 )

Net cash (used in) provided by investing activities ( 145,279 ) 3,951 284,662

Cash Flows From Financing Activities:

Net (decrease) increase in noninterest-bearing demand deposits ( 273,129 ) ( 118,398 ) 60,115

Net increase (decrease) in interest-bearing demand and savings deposits 95,489 ( 34,106 ) ( 17,838 )

Net increase (decrease) in time deposits 4,742 36,101 ( 6,563 )

Net decrease (increase) in accounts and drafts receivable from customers 54,746 ( 14,872 ) ( 90,787 )

Net increase in accounts and drafts payable 77,907 3,769 17,204

Net increase (decrease) in noninterest-bearing demand deposits 262,204 ( 273,129 ) ( 118,398 )

Net (decrease) increase in interest-bearing demand and savings deposits ( 46,025 ) 95,489 ( 34,106 )

Net increase in time deposits 15,938 4,742 36,101

Net (increase) decrease in accounts and drafts receivable from customers ( 13,519 ) 54,746 ( 14,872 )

Net (decrease) increase in accounts and drafts payable ( 4,753 ) 76,341 5,407

Cash dividends paid ( 16,511 ) ( 16,463 ) ( 15,959 )

1 unchanged sentence

Other financing activities, net ( 1,299 ) ( 1,684 ) ( 834 )

Net cash used in financing activities ( 65,640 ) ( 150,072 ) ( 59,204 )

Net (decrease) increase in cash and cash equivalents ( 22,740 ) 171,526 ( 313,986 )

Net cash provided by (used in) financing activities - continuing operations 170,047 ( 67,206 ) ( 148,434 )

Net cash (used in) provided by financing activities - discontinued operations ( 19,665 ) 1,566 ( 1,639 )

Net cash provided by (used in) financing activities 150,382 ( 65,640 ) ( 150,073 )

Net increase (decrease) in cash and cash equivalents 42,540 ( 22,740 ) 171,526

Cash and cash equivalents at beginning of year 349,728 372,468 200,942

15 unchanged sentences

Comprehensive

Income (Loss) Total

Balance, December 31, 2022

9 unchanged sentences

( 5,773 ) ( 5,773 )

Other comprehensive loss ( 59,774 ) ( 59,774 )

Other comprehensive income 11,852 11,852

Balance, December 31, 2023

5 unchanged sentences

( 5,613 ) 3,929 ( 1,684 )

Exercise of SARs ( 238 ) 122 ( 116 )

Share-based compensation expense 3,199 ( 32 ) 3,167

26 unchanged sentences

Such reclassifications have no effect on previously reported net income or shareholders’ equity.

Use of Estimates In preparing the consolidated financial statements, Company management is required to make estimates and assumptions which significantly affect the reported amounts in the consolidated financial statements.

Financial results have been presented on a continuing operations basis for all periods shown, unless otherwise indicated.

As such, amounts related to components of the business that meet the criteria for classification as discontinued operations have been excluded from continuing operations and reported separately.

Additional information regarding the Company’s discontinued operations for the years ended 2025 and 2024, including the nature of the divestitures and their impact on the consolidated financial statements, is provided in Note 2 to the consolidated financial statements.

Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Actual results could differ from those estimates.

Significant items subject to such estimates and assumptions include the useful lives of fixed assets;

allowance for credit losses;

the valuation of deferred tax assets, fixed assets, investments, lease liabilities and right-of-use assets, and share-based compensation;

and reserves for employee benefit obligations, income tax uncertainties, and other contingencies.

Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company considers cash and due from banks, interest-bearing deposits in other financial institutions, and federal funds sold and other short-term investments to be cash and cash equivalents.

Investment in Debt Securities The Company classifies its investment securities as available-for-sale.

Investment Securities The Company classifies its investment securities as available-for-sale.

Securities classified as available-for-sale are carried at fair value.

28 unchanged sentences

Adjustments to historical loss information are made for concentration risk, asset quality trends, borrower’s ability to pay, collateral, and other environmental factors.

It is difficult to estimate how potential changes in any one economic factor or input might affect the overall ACL because a wide variety of factors and inputs are considered in estimating the allowance and changes in those factors and inputs considered may not occur at the same rate and may not be consistent across all loan types.

Additionally, changes in factors and inputs may be directionally inconsistent, such that improvement in one factor may offset deterioration in others.

The ACL is measured on a collective pool basis when similar risk characteristics exist.

22 unchanged sentences

However, for the faith-based CRE ACL, loss rates are determined using the Company’s long-run historical averages, as this loan segment is unique to the Company and does not represent a more than nominal percentage of peer loan portfolios.

The economic forecast is based on management’s assessment of the length and pattern of the current economic

The economic forecast is based on management’s assessment of the length and pattern of the current economic cycle.

The resulting annual charge off rate determined for each year in the WARM model is applied to the loan balances estimated in the attrition analysis.

38 unchanged sentences

Maintenance and repairs are charged to expense as incurred.

Intangible Assets Cost in excess of fair value of net assets acquired has resulted from business acquisitions.

Goodwill and Intangible Assets Goodwill and intangible assets have resulted from the excess purchase price over the estimated fair value of net assets acquired in a business combination.

Goodwill and intangible assets with indefinite useful lives are not amortized, but instead are tested for impairment at least annually.

Intangible assets with definite useful lives are amortized on a straight-line basis over their respective estimated useful lives.

Periodically, the Company reviews intangible assets for events or changes in circumstances that may indicate that the carrying amount of the assets may not be recoverable.

Intangible assets with finite useful lives are amortized on a straight-line basis over their respective estimated useful lives.

Periodically, the Company reviews finite intangible assets for events or changes in circumstances that may indicate that the carrying amount of the assets may not be recoverable.

Based on those reviews, adjustments of recorded amounts have not been required.

6 unchanged sentences

Upon reissuance, treasury stock is reduced based upon the average cost basis of shares held.

Comprehensive Income Comprehensive income consists of net income, changes in net unrealized gains (losses) on available-for-sale securities and pension liability adjustments and is presented in the accompanying consolidated statements of shareholders' equity and consolidated statements of comprehensive income.

Comprehensive Income Comprehensive income consists of net income, changes in net unrealized gains (losses) on available-for-sale investment securities and pension liability adjustments and is presented in the accompanying consolidated statements of shareholders' equity and consolidated statements of comprehensive income.

Processing Fees A majority of the Company’s fee revenue is attributable to providing services related to processing and payment of invoices.

22 unchanged sentences

Diluted earnings per share is computed by dividing net income by the sum of the weighted average number of common shares outstanding and the weighted average number of potential common shares outstanding.

Share-Based Compensation The Company follows FASB ASC 718, Accounting for Stock Options and Other Share-based Compensation (“ASC 718”), which requires that all share-based compensation be recognized as an expense in the financial statements and that such cost be measured at the fair value of the award.

Share-Based Compensation The Company follows ASC 718, Accounting for Stock Options and Other Share-based Compensation (“ASC 718”), which requires that all share-based compensation be recognized as an expense in the financial statements and that such cost be measured at the fair value of the award.

ASC 718 also requires that excess tax benefits related to stock option exercises and restricted stock awards be reflected as financing cash inflows instead of operating cash inflows.

2 unchanged sentences

These assumptions are updated annually and are disclosed in Note 11.

The Company follows FASB ASC 715, Compensation – Retirement Benefits (“ASC 715”), which requires companies to recognize the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its consolidated balance sheet and to recognize changes in that funded status in the year in which the changes occur through comprehensive income.

The Company follows ASC 715, Compensation – Retirement Benefits (“ASC 715”), which requires companies to recognize the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its consolidated balance sheet and to recognize changes in that funded status in the year in which the changes occur through comprehensive income.

The funded status is measured as the difference between the fair value of the plan assets and the projected benefit obligation as of the date of its fiscal year-end.

Fair Value Measurements The Company follows the provisions of FASB ASC 820, Fair Value Measurements and Disclosures , which defines fair value, establishes a framework for measuring fair value in GAAP, and outlines disclosures about fair value measurements.

As further described in Note 11 to the consolidated financial statements, the Company terminated its noncontributory defined-benefit pension plan during 2024.

Fair Value Measurements The Company follows the provisions of ASC 820, Fair Value Measurements and Disclosures , which defines fair value, establishes a framework for measuring fair value in GAAP, and outlines disclosures about fair value measurements.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

4 unchanged sentences

Financial instrument valuations are considered Level 3 when they are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable, and when determination of the fair value requires significant management judgment or estimation.

The Company records securities available for sale at their fair values on a recurring basis using Level 2 valuations.

The Company records investment securities available for sale at their fair values on a recurring basis using Level 2 valuations.

Additionally, the Company records individually evaluated credits and other real estate owned at their fair value on a nonrecurring basis.

1 unchanged sentence

Impact of New and Not Yet Adopted Accounting Pronouncements

In October 2023, the FASB issued 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative ("ASU 2023-06").

This ASU amends the ASC to incorporate certain disclosure requirements from SEC Release No.

33-10532 - Disclosure Update and Simplification that was issued in 2018.

The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited.

ASU 2023-06 is not expected to have a significant impact on the Company's financial statements.

In November 2023, the FASB issued 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures ("ASU 2023-07").

This ASU expands segment disclosure requirements for public entities to require disclosure of significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually.

ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

The adoption of ASU 2023-07 did not have a significant impact on the Company's financial statements.

See Note 17 to our financial statements.

In December 2023, the FASB issued 2023-09, Income Taxes (Topic 740):

2 unchanged sentences

It also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state, and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things.

ASU 2023-09 is effective for annual periods beginning after December 15, 2024, though early adoption is permitted.

ASU 2023-09 is not expected to have a significant impact on the Company's financial statements.

The adoption of ASU 2023-09 was effective for annual periods beginning after December 15, 2024 and can be seen in Note 14 to the consolidated financial statements.

In July 2025, the FASB issued Accounting Standards Update 2025-05, Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets ("ASU 2025-05").

ASU 2025-05 provides the option to elect a practical expedient to assume that the current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when developing a reasonable and supportable forecast as part of estimating expected credit losses on these assets.

ASU 2025-05 is effective for the Company for the fiscal years beginning after December 15, 2025 and interim periods within those fiscal years.

The Company does not expect adoption of ASU 2025-05 to have a material impact on its consolidated financial statements.

In September 2025, the FASB issued Accounting Standards Update 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06").

ASU 2025-06 clarified and modernized the accounting for costs related to internal-use software.

The amendments in 2025-06 remove all references to project stages throughout Subtopic 350-40 and clarify the threshold entities apply to begin capitalizing costs.

ASU 2025-06 is effective for the Company for fiscal years beginning after December 15, 2027 and interim periods within those fiscal years.

The Company is currently evaluating the impact of adoption of ASU 2025-06 on its consolidated financial statements.

In December 2025, the FASB issued Accounting Standards Update 2025-11, Interim Reporting (Topic 270):

Narrow‑Scope Improvements ("ASU 2025-11" ) .

ASU 2025-11 clarifies and enhances guidance under ASC 270 on interim financial reporting by (i) clarifying the scope of ASC 270 such that it now explicitly applies only to entities that issue complete interim financial statements and related notes under U.S.

GAAP, (ii) establishing clear guidance on the form of interim statements and notes, incorporating a comprehensive list of required interim disclosures drawn from across the ASC, and (iii) introducing a requirement to disclose material events and changes occurring after the end of the last annual period that could impact interim results.

ASU 2025-11 will be effective for the Company for interim periods beginning in 2028, though early adoption is permitted.

The Company does not expect the adoption of ASU 2025-11 to have a material impact on its consolidated financial statements.

Discontinued Operations and Assets and Liabilities Held for Sale

On April 7, 2025, the Company signed an Asset Purchase Agreement providing for the sale of its telecom expense management and managed mobility solutions business unit ("TEM Business Unit") to Asignet USA Inc ("Asignet") for a purchase price of $18.0 million.

The sale closed on June 30, 2025.

The Company also signed a Transition Services Agreement with Asignet to provide certain information technology, data ingestion, and payment processing services for a period of time not to exceed 18 months after closing.

The Company has applied discontinued operations accounting in accordance with ASC Topic 205-20, “Presentation of Financial Statements – Discontinued Operations,” to the assets and liabilities being sold related to the Company's TEM Business Unit as of and for the years ended December 31, 2025, 2024, and 2023, as applicable.

The sale of the TEM Business Unit represents a strategic shift due to the Company completely exiting both the telecom expense management and managed mobility solutions businesses.

The Company did not allocate any consolidated interest that is not directly attributable to or related to discontinued operations.

All financial information in the consolidated financial statements and notes to the consolidated financial statements is reported on a continuing operations basis, unless otherwise noted.

The TEM Business Unit is included in the Information Services operating segment.

The carrying amount of major classes of assets and liabilities included as part of discontinued operations at December 31, 2025 and 2024 were as follows:

(In thousands except share and per share data) 2025 2024

Premises and equipment, net $ — $ 3,598

Goodwill — 5,019

Other intangible assets, net — 93

Other assets — 5,703

Assets of discontinued operations $ — $ 14,413

Accounts and drafts payable — 19,665

Other liabilities — 2,649

Liabilities of discontinued operations $ — $ 22,314

Net income from discontinued operations for the years ended December 31, 2025, 2024, and 2023 is as follows:

For the Years Ended December 31,

(In thousands except per share data) 2025 2024 2023

Fee Revenue and Other Income:

Processing fees $ 7,630 $ 15,795 $ 17,837

Financial fees 888 713 646

Other 3,402 1,494 2,059

Gain on sale of TEM business 3,550 — —

Total fee revenue and other income 15,470 18,002 20,542

Operating Expense:

Salaries and commissions 6,637 11,533 11,562

Share-based compensation 27 116 132

Other benefits 1,414 2,406 2,612

Total personnel expenses 8,078 14,055 14,306

Occupancy 408 751 761

Equipment 110 204 242

Amortization of intangible assets 18 45 88

Other operating 1,542 2,174 2,252

Total operating expense 10,156 17,229 17,649

Income from discontinued operations, before income tax expense 5,314 773 2,893

Income tax expense 1,310 163 724

Net income from discontinued operations $ 4,004 $ 610 $ 2,169

Capital Requirements and Regulatory Restrictions

1 unchanged sentence

Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements.

Under capital adequacy guidelines, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices.

Under capital adequacy guidelines, the Company and the Bank must meet specific capital guidelines

that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices.

The Company’s and the Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

56 unchanged sentences

The market evaluation utilizes several sources which include “observable inputs” rather than “significant unobservable inputs” and therefore falls into the Level 2 category.

The table below presents the balances of securities available-for-sale

measured at fair value on a recurring basis.

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of debt and equity securities are summarized as follows:

The table below presents the balances of investment securities available-for-sale measured at fair value on a recurring basis.

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of debt and equity investment securities are summarized as follows:

December 31, 2025

15 unchanged sentences

Corporate bonds 95,841 3 ( 8,058 ) 87,786

Treasury Securities 109,836 — ( 1,115 ) 108,721

Asset backed securities issued or guaranteed by U.S.

29 unchanged sentences

Corporate bonds 7,901 99 66,860 7,960 74,761 8,059

Treasury securities — — 108,721 1,115 108,721 1,115

Asset backed securities issued or guaranteed by U.S.

1 unchanged sentence

Total $ 97,255 $ 2,193 $ 401,004 $ 57,512 $ 498,259 $ 59,705

There were 241 securities, or 96.0 %, in an unrealized loss position as of December 31, 2024 compared to 275 securities, or 98.9 %, in an unrealized loss position as of December 31, 2023.

The unrealized losses at December 31, 2024 were primarily attributable to changes in market interest rates after the securities were purchased.

The Company does not currently intend to sell, and based on current conditions, the Company does not believe it will be required to sell these available-for-sale securities before the recovery of the amortized cost basis, which may be the maturity dates of the securities.

There were 204 investment securities, or 67.3 %, in an unrealized loss position as of December 31, 2025 compared to 241 investment securities, or 96.0 %, in an unrealized loss position as of December 31, 2024.

The unrealized losses at December 31, 2025 were primarily attributable to changes in market interest rates after the investment securities were purchased.

The Company does not currently intend to sell, and based on current conditions, the Company does not believe it will be required to sell these available-for-sale investment securities before the recovery of the amortized cost basis, which may be the maturity dates of the investment securities.

Therefore, the unrealized losses are recorded in accumulated other comprehensive loss.

Of these securities, 215 , or 85.7 %, were in an unrealized loss position for greater than 12 months at December 31, 2024.

At December 31, 2024 and December 31, 2023, the Company had not recorded an allowance for credit losses on securities.

The amortized cost and fair value of debt and equity securities by contractual maturity are shown in the following table.

Of these investment securities, 177 , or 58.4 %, were in an unrealized loss position for greater than 12 months at December 31, 2025.

At December 31, 2025 and December 31, 2024, the Company had not recorded an allowance for credit losses on investment securities.

The amortized cost and fair value of debt and equity investment securities by contractual maturity are shown in the following table.

Expected maturities may differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties.

10 unchanged sentences

Total $ 805,504 $ 770,772

There were no securities pledged to secure public deposits or for other purposes at December 31, 2024.

There were no investment securities pledged to secure public deposits or for other purposes at December 31, 2025.

Proceeds from sales of investment securities classified as available-for-sale were $ 129.9 million in 2025, $ 60.1 million in 2024, and $ 111.6 million in 2023.

Gross realized gains on the sales in 2025, 2024, and 2023 were $ 429,000 , $ 4,000 , and $ 187,000 , respectively.

Gross realized losses on the sales in 2024, 2023, and 2022 were $ 49,000 , $ 360,000 and $ 0 , respectively.

Gross realized losses on the sales in 2025, 2024, and 2023 were $ 4.0 million, $ 49,000 and $ 360,000 , respectively.

The Company originates commercial, industrial and real estate loans to businesses and faith-based ministries throughout the metropolitan St.

21 unchanged sentences

Construction 35,288 — — — — 35,288

Other 27 — — — — 27

Total $ 1,054,225 $ — $ — $ — $ 6,992 $ 1,061,217

8 unchanged sentences

Construction 25,518 — — — — 25,518

Other 54 — — — — 54

Total $ 1,081,989 $ — $ — $ — $ — $ 1,081,989

12 unchanged sentences

Construction 35,288 — — 35,288

Other 27 — — 27

Total $ 1,020,109 $ 34,116 $ 6,992 $ 1,061,217

14 unchanged sentences

Construction 25,518 — — 25,518

Other 54 — — 54

Total $ 1,030,761 $ 51,228 $ — $ 1,081,989

2 unchanged sentences

Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, a term extension, or a combination thereof, among other things.

There were no loans modified during the year ended December 31, 2024.

There were three loans modified during the year ended December 31, 2023.

The terms were extended by periods of two to four years, and there was not an interest rate reduction associated with the modifications.

There were no commitments to lend additional funds to these borrowers at December 31, 2024 or December 31, 2023.

The following table shows the amortized cost of loans at December 31, 2023 that were both experiencing financial difficulty and modified during the year ended December 31, 2023, segregated by category and type of modification.

(In thousands) Payment Delay Term Extension Interest Rate Reduction Combination Term Extension and Interest Rate Reduction Percentage of Total Loans Held for Investment

Commercial and industrial $ — $ 22,354 $ — $ — 4.48 %

Total $ — $ 22,354 $ — $ — 2.20 %

There were no modified loans that had a payment default during the years ended December 31, 2024 or December 31, 2023 and that had been modified due to the borrower experiencing financial difficulty within the 12 previous months preceding the default.

There were two loans modified during the year ended December 31, 2025 and no loans modified during the year ended December 31, 2024.

Both loans modified during 2025 were paid off in full prior to December 31, 2025.

There were no modified loans that had a payment default during the years ended December 31, 2025 or 2024 and that had been modified due to the borrower experiencing financial difficulty within the 12 previous months preceding the default.

Upon the Company's determination that a modified loan has subsequently been deemed uncollectible, the loan is written off.

There were no loans written off during the years ended December 31, 2024 or December 31, 2023.

The Company had no loans evaluated for expected credit losses on an individual basis as of December 31, 2024 or December 31, 2023.

There were no foreclosed loans recorded as other real estate owned as of December 31, 2024 or December 31, 2023.

There were no loans written off during the years ended December 31, 2025 or 2024.

The Company had three loans evaluated for expected credit losses on an individual basis as of December 31, 2025 and no loans evaluated for expected credit losses on an individual basis as of December 31, 2024.

There were no foreclosed loans recorded as other real estate owned as of December 31, 2025 or 2024.

A summary of the ACL by category for the period ended December 31, 2025 is as follows:

1 unchanged sentence

Allowance for credit losses on loans:

Balance at January 1, 2024

Balance at December 31, 2024

$ 5,897 $ 1,023 $ 6,258 $ 217 $ 13,395

Provision for (release of) credit losses (1)

(Release of) provision for credit losses (1)

( 64 ) ( 134 ) 288 112 202

1 unchanged sentence

$ 5,833 $ 889 $ 6,546 $ 329 $ 13,597

(1) For the period ended December 31, 2024, there was a provision for credit losses of $ 141,000 for unfunded commitments.

(1) For the year ended December 31, 2025, there was a provision for credit losses of $ 146,000 for unfunded commitments.

A summary of the ACL by category for the period ended December 31, 2024 is as follows:

1 unchanged sentence

Allowance for credit losses on loans:

Balance at January 1,2023

Balance at December 31, 2023

$ 5,412 $ 1,093 $ 6,476 $ 108 $ 13,089

(Release of) provision for credit losses (1)

Provision for (release of) credit losses (1)

485 ( 70 ) ( 218 ) 109 306

1 unchanged sentence

$ 5,897 $ 1,023 $ 6,258 $ 217 $ 13,395

(1) For the period ended December 31, 2023, there was a release of credit losses of $ 100,000 for unfunded commitments.

(1) For the year ended December 31, 2024, there was a provision for credit losses of $ 141,000 for unfunded commitments.

As of December 31, 2025 and 2024, there were no loans to executive officers or directors, or their affiliates.

12 unchanged sentences

Acquired Intangible Assets

The Company accounts for intangible assets in accordance with FASB ASC 350, Goodwill and Other Intangible Assets , which requires that intangibles with indefinite useful lives be tested annually for impairment, or when management deems there is a triggering event, and those with finite useful lives be amortized over their useful lives.

In December 2024, the Company acquired the assets of AcuAudit, a freight audit platform for ocean and international air freight, from Acuitive Solutions LLC.

The Company recorded intangible assets of $ 6.4 million at December 31, 2024, including goodwill of $ 4.0 million, software of $ 2.2 million, and a customer list of $ 200,000 .

The amounts for these

intangible assets have been recorded on a provisional basis and will be adjusted upon the completion of a third party valuation during the first quarter of 2025.

The goodwill is deductible for tax purposes over 15 years, starting in 2024.

The intangible assets and results of AcuAudit are included in the Information Services operating segment.

The purchase price of the acquisition consisted of a cash payment of $ 3.0 million and potential contingent consideration in the form of an earn out based on annualized recurring subscription and transactional revenues from the AcuAudit software (ARR) at the end of 24 months.

The earn out is to be paid out in two installments, with the first payment made on January 1, 2026 based on ARR multiplied by 110%, multiplied by 80%.

The second earn out payment on January 1, 2027 is based on ARR times 110% minus the first earn out payment.

The Company valued the contingent earn out component at $3.5 million.

The fair value of the contingent consideration was estimated on the acquisition date as the present value of the expected future contingent payments, which were determined using a Monte Carlo simulation.

Any changes in the estimated fair value of the contingent earn out consideration, up to the contracted amount, will be reflected in the results of operations in future periods as they are identified.

The Company accounts for intangible assets in accordance with ASC 350, Goodwill and Other Intangible Assets , which requires that intangibles with indefinite useful lives be tested annually for impairment, or when management deems there is a triggering event, and those with finite useful lives be amortized over their useful lives.

Details of the Company’s intangible assets are as follows:

4 unchanged sentences

Amount Accumulated

Assets eligible for amortization:

Amortizing intangible assets:

Customer lists $ 6,215 $ ( 5,003 ) $ 6,314 $ ( 4,729 )

Patent 72 ( 40 ) 72 ( 36 )

Software 5,512 ( 3,244 ) 5,412 ( 2,358 )

Trade Name 373 ( 125 ) 373 ( 98 )

Other 500 ( 425 ) 500 ( 392 )

Unamortized intangible assets:

Indefinite-lived intangible assets:

Goodwill 16,164 — 16,333 —

Total intangible assets $ 28,264 $ ( 8,372 ) $ 28,432 $ ( 7,185 )

Customer lists are amortized over 5 to 10 years;

patents over 18 years, software over 3 years to 7 years, trade name over 10 years to 20 years and other intangible assets over 15 years.

Amortization of intangible assets amounted to $ 739,000 and $ 780,000 for the years ended December 31, 2024, and 2023, respectively.

Estimated future amortization of intangibles is $ 1,210,000 in 2025, $ 1,062,000 in 2026, $ 742,000 in 2027, $ 734,000 in 2028, and $ 703,000 in 2029.

Customer lists are amortized over 5 years to 10 years, software over 3 years to 7 years, and trade name over 10 years to 20 years.

Amortization of intangible assets amounted to $ 1.2 million and $ 692,000 for the years ended December 31, 2025, and 2024, respectively.

Estimated future amortization of intangibles is $ 1.0 million in 2026, $ 730,000 in 2027 and 2028, $ 699,000 in 2029, and $ 197,000 in 2030.

Interest-Bearing Deposits

10 unchanged sentences

Weighted average interest rate 1.73 % 2.51 %

(1) The scheduled maturities of time deposits not covered by deposit insurance consist of $ 17.3 million within one year and $ 4.4 million within one to three years.

(1) The scheduled maturities of time deposits not covered by deposit insurance consist of $ 24.4 million within one year and $ 778,000 within one to three years.

Interest expense consists of the following:

18 unchanged sentences

As of December 31, 2025, the Bank had unsecured lines of credit at six correspondent banks to purchase federal funds up to a maximum of $ 83.0 million in aggregate.

As of December 31, 2024, the Bank had secured lines of credit with the

Federal Home Loan Bank of $ 183.6 million collateralized by commercial mortgage loans.

As of December 31, 2024, the Company had lines of credit from three banks up to a maximum of $ 250.0 million in aggregate collateralized by state and political subdivision securities.

As of December 31, 2025, the Bank had secured lines of credit with the Federal Home Loan Bank of $ 239.9 million collateralized by commercial mortgage loans.

As of December 31, 2025, the Company had lines of credit from three banks up to a maximum of $ 225.0 million in aggregate collateralized by state and political subdivision investment securities.

There were no amounts outstanding as of December 31, 2025 and 2024 under any of the lines of credit.

3 unchanged sentences

Issuance of common stock:

Employee restricted stock grants 11,167

Employee restricted stock units vested 16,008

Performance-based stock vested 55,348

Directors’ stock grants 22,030

Employee restricted stock surrendered for tax obligations ( 37,925 )

Shares repurchased ( 617,415 )

3 unchanged sentences

Under the treasury stock method, stock appreciation rights (“SARs”) are dilutive when the average market price of the Company’s common stock, combined with the effect of any unamortized compensation expense, exceeds the SAR price during a period.

The calculations of basic and diluted earnings per share are as follows:

(In thousands except share and per share data) 2025 2024 2023

Net income from continuing operations $ 31,112 $ 18,558 $ 27,890

Net income from discontinued operations 4,004 610 2,169

Net income $ 35,116 $ 19,168 $ 30,059

Weighted-average common shares outstanding 13,181,884 13,501,930 13,530,005

Basic earnings per share from continuing operations $ 2.36 $ 1.37 $ 2.06

Basic earnings per share from discontinued operations $ 0.30 $ 0.05 $ 0.16

Basic earnings per share $ 2.66 $ 1.42 $ 2.22

Net income from continuing operations $ 31,112 $ 18,558 $ 27,890

Net income from discontinued operations 4,004 610 2,169

Net income $ 35,116 $ 19,168 $ 30,059

Weighted-average common shares outstanding 13,181,884 13,501,930 13,530,005

Effect of dilutive restricted stock, performance based restricted stock (“PBRS”), and SARs

275,641 286,011 255,526

Effect of dilutive restricted stock and stock appreciation rights 281,415 275,641 286,011

Weighted-average common shares outstanding assuming dilution 13,463,299 13,777,571 13,816,016

Diluted earnings per share from continuing operations $ 2.31 $ 1.35 $ 2.02

Diluted earnings per share from discontinued operations $ 0.30 $ 0.04 $ 0.16

Diluted earnings per share $ 2.61 $ 1.39 $ 2.18

1 unchanged sentence

Defined Benefit Plan

The Company has a noncontributory defined-benefit pension plan (the “Plan”), which covers eligible employees.

Effective December 31, 2016, the Plan was closed to all new participants.

Additionally, the Company froze the benefits of the Plan

as of February 28, 2021.

As such, subsequent to February 28, 2021, there is no service cost associated with the Plan.

During 2024, the Company terminated the Plan.

The Company maintained a noncontributory defined-benefit pension plan (the “Plan”), covering eligible employees.

The Plan was closed to new participants effective December 31, 2016, and Plan benefits were frozen as of February 28, 2021.

The Company terminated the Plan during 2024.

A summary of the activity in the Plan’s projected benefit obligation, assets, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows:

6 unchanged sentences

Balance, December 31

$ 784 $ 87,127

Fair value, January 1 $ 2,129 $ 86,754

1 unchanged sentence

Expenses paid from plan assets ( 209 ) ( 1,045 )

Transfer to defined contributions plan ( 1,196 ) —

Benefits paid ( 784 ) ( 84,576 )

Fair value, December 31

$ 2,129 $ 86,754

Funded status:

Accrued pension asset (liability) $ — $ 1,345

The following represent the major assumptions used to determine the projected benefit obligation of the Plan.

For 2024, the projected benefit obligation represents actual benefit payments to be made during the first quarter of 2025.

For 2024, the projected benefit obligation represents actual benefit payments made during the first quarter of 2025.

During the fourth quarter of 2024, the plan liabilities were settled with lump sum payments and the purchase of annuity contracts.

The remaining projected benefit obligation at December 31, 2024 represents benefit payments to be made to retirees prior to the administration of the Plan being taken over by the insurance company that assumed the annuity contracts from the Plan.

The remaining projected benefit obligation at December 31, 2024 represented benefit payments to be made to retirees prior to the administration of the Plan being taken over by the insurance company that assumed the annuity contracts in a sale from the Plan.

For 2024 and 2023, the Plan’s expected benefit cash flows were discounted using the FTSE Above Median Double-A Curve.

For 2023 and 2022 the Pri-2012 Mortality Table and MP-2022 Mortality Improvement Scale were used.

For 2023, the Pri-2012 Mortality Table and MP-2022 Mortality Improvement Scale were used.

2025 2024 2023

Weighted average discount rate 5.60 % 5.05 % 5.25 %

Weighted average discount rate N/A 5.60 % 5.05 %

Rate of increase in compensation levels N/A N/A N/A

The accumulated benefit obligation was $ 784,000 and $ 87.1 million as of December 31, 2024 and 2023, respectively.

The accumulated benefit obligation was $ 0 and $ 784,000 as of December 31, 2025 and 2024, respectively.

The Company made no contributions during 2025 or 2024 to the Plan.

The following pension benefit payments, as appropriate, are expected to be paid by the Plan:

2025 $ 784,000

2026 and thereafter —

The Plan’s net periodic pension cost (benefit) included the following components:

The Plan’s net periodic pension cost included the following components:

For the Year Ended

(In thousands) 2025 2024 2023

Service cost – benefits earned during the year $ — $ — $ —

Interest cost on projected benefit obligations — 4,280 4,314

1 unchanged sentence

Net amortization and deferral — 3,458 154

Net periodic pension cost (benefit) $ 4,172 $ 733 $ ( 2,564 )

The following represent the major assumptions used to determine the net periodic pension cost (benefit) of the Plan:

Net periodic pension cost $ — $ 4,172 $ 733

The following represent the major assumptions used to determine the net periodic pension cost of the Plan:

2025 2024 2023

Weighted average discount rate 5.05 % 5.25 % 2.85 %

Weighted average discount rate N/A 5.05 % 5.25 %

Rate of increase in compensation levels N/A N/A N/A

Expected long-term rate of return on assets 5.00 % 6.00 % 6.00 %

Prior to the Plan termination, the investment objective for the Plan was to maximize total return with a tolerance for average risk.

As of December 31, 2024, the remaining Plan assets of $2.1 million are fully invested in cash.

A summary of the fair value measurements by type of asset is as follows:

Fair Value Measurements as of December 31,

(In thousands) Total Quoted Prices

(Level 1) Observable

(Level 2) Total Quoted Prices

(Level 1) Observable

Cash $ 2,129 $ 2,129 $ — $ 614 $ 614 $ —

Real estate investment trusts — — — 2,849 — 2,849

Equity securities

Small/Mid Cap Growth — — — 987 — 987

Core — — — 3,811 — 3,811

Large Cap Passive — — — 3,333 — 3,333

Emerging Markets — — — 1,391 — 1,391

Core — — — 69,710 — 69,710

Opportunistic — — — 4,059 — 4,059

Total $ 2,129 $ 2,129 $ — $ 86,754 $ 614 $ 86,140

Expected long-term rate of return on assets N/A 6.00 % 6.00 %

As of December 31, 2024, the Plan assets of $2.1 million were fully invested in cash.

Supplemental Executive Retirement Plan

7 unchanged sentences

Benefits paid ( 656 ) ( 382 )

Actuarial gain ( 757 ) ( 150 )

Actuarial loss (gain) 176 ( 757 )

Balance, December 31

5 unchanged sentences

Rate of increase in compensation levels N/A N/A N/A

The accumulated benefit obligation was $ 8.8 million and $ 9.5 million as of December 31, 2024 and 2023, respectively.

The accumulated benefit obligation was $ 8.8 million as of December 31, 2025 and 2024, respectively.

Since this is an unfunded plan, there are no plan assets.

10 unchanged sentences

Net periodic pension cost $ 463 $ 450 $ 472

The pretax amounts in accumulated other comprehensive loss as of December 31 were as follows:

The Plan SERP

(In thousands) 2024 2023 2024 2023

Prior service cost $ — $ — $ — $ —

Net actuarial loss (gain) — 4,434 ( 1,044 ) ( 287 )

Total $ — $ 4,434 $ ( 1,044 ) $ ( 287 )

The estimated pretax prior service cost and net actuarial loss (gain) in accumulated other comprehensive loss at December 31, 2024 expected to be recognized as components of net periodic benefit cost in 2025 for both the Plan and SERP is $ 0 .

The pretax amounts in accumulated other comprehensive loss for the SERP as of December 31, 2025 and 2024 were a net actuarial gain of $ 855,000 and $ 1.0 million, respectively.

The estimated pretax prior service cost and net actuarial gain in accumulated other comprehensive loss at December 31, 2025 expected to be recognized as components of net periodic benefit cost in 2026 for the SERP is $ 0 .

The Company also maintains a noncontributory profit sharing program, which covers most of its employees.

27 unchanged sentences

The number of shares issued ranges from 0 % to 150 % of the target opportunity based on the actual achievement of financial goals for the three-year performance period.

Following is a summary of the activity of the PBRS, based on 100% of target value, for the year ended December 31, 2024:

The following is a summary of the activity of the PBRS, based on 100% of target value, for the year ended December 31, 2025:

Shares Weighted Average

9 unchanged sentences

The outstanding PBRS at December 31, 2025 will vest at scheduled vesting dates and the actual number of shares of common stock issued will range from 0 % to 150 % of the target opportunity based on the actual achievement of financial goals for the respective three-year performance period.

During 2024, there were no SARs granted and no expense recognized.

As of December 31, 2024, there was no unrecognized compensation expense related to SARs.

Changes in SARs outstanding for the year ended December 31, 2024 were as follows:

SARs Weighted Average Exercise Price

Balance at December 31, 2023

30,409 $ 46.70

Expired ( 30,409 ) 46.70

Balance at December 31, 2024

Exercisable at December 31, 2024

The total intrinsic value of SARs exercised during 2024 and 2023 was $ 0 and $ 508,000 , respectively.

The average remaining contractual term for SARs outstanding as of December 31, 2023 was 0.08 years, and the aggregate intrinsic value was $ 0 .

The total compensation cost for share-based payment arrangements was $ 3.2 million, $ 4.1 million, and $ 6.7 million in 2024, 2023, and 2022, respectively.

Other Operating Expense

12 unchanged sentences

State 240 612 1,087

Foreign 71 160 ( 193 )

Federal 6,244 ( 891 ) ( 242 )

1 unchanged sentence

Total income tax expense $ 7,647 $ 4,887 $ 6,574

A reconciliation of expected income tax expense (benefit), computed by applying the effective federal statutory rate of 21% for each year to income before income tax expense is as follows:

Income tax expense (benefit) broken out between Federal, state and foreign is as follows:

For the Years Ended December 31,

(In thousands) 2025 2024 2023

Federal $ 6,384 $ 4,271 $ 5,722

State 1,192 456 1,045

Foreign 71 160 ( 193 )

Total income tax expense $ 7,647 $ 4,887 $ 6,574

The Company adopted ASU 2023-09 on a prospective basis on January 1, 2025.

The following table presents required disclosure pursuant to ASU 2023-09 and reconciles the expected income tax expense (benefit) and effective tax rate, computed by applying the effective statutory rate of 21% for the year ended December 31, 2025 as follows:

For the Year Ended December 31, 2025

(In thousands) Amount Percent

U.S federal statutory tax rate $ 8,112 21.0 %

State and local income taxes, net of federal income tax effect (1)

Foreign tax effects 71 0.2 %

Tax credits ( 431 ) ( 1.1 ) %

Nontaxable or nondeductible items:

Tax-exempt income ( 1,246 ) ( 3.3 ) %

Share-based compensation adjustment 160 0.4 %

Other, net 39 0.1 %

Total income tax expense $ 7,647 19.7 %

(1) State taxes in Missouri and California made up the majority (greater than 50%) of the tax effect in this category.

The following table presents the required disclosures prior to the Company's adoption of ASU 2023-09 and reconciles the expected income tax expense (benefit), computed by applying the effective federal statutory rate of 21% for each year to income before income tax expense is as follows:

For the Years Ended

(In thousands) 2024 2023

Expected income tax expense $ 4,898 $ 7,278

13 unchanged sentences

Allowance for credit losses $ 3,236 $ 3,188

ASC 715 pension funding liability — 987

Supplemental executive retirement plan accrual 2,286 2,345

1 unchanged sentence

Unrealized loss on investment securities available-for-sale (1)

14,205 13,756

Research and development expenses — 760

5 unchanged sentences

ASC 715 supplemental executive retirement plan asset ( 249 ) ( 249 )

Pension — ( 967 )

Research and development expenses ( 4,711 ) —

Intangible assets ( 968 ) ( 1,900 )

4 unchanged sentences

Net deferred tax assets $ 8,691 $ 19,474

(1) The deferred tax asset associated with the unrealized losses on securities is mainly a result of changes in interest rates, and the unrealized losses are considered to be temporary as the fair value is expected to recover as the securities approach their respective maturity dates.

The issuers of the securities are of high credit quality and all principal amounts are expected to be paid when the securities mature.

(1) The deferred tax asset associated with the unrealized losses on investment securities is mainly a result of changes in interest rates, and the unrealized losses are considered to be temporary as the fair value is expected to recover as the investment securities approach their respective maturity dates.

The issuers of the investment securities are of high credit quality and all principal amounts are expected to be paid when the investment securities mature.

The Company does not intend to sell and it is more likely than not that the Company will not be required to sell the securities prior to their anticipated recovery.

12 unchanged sentences

As of December 31, 2025, 2024 and 2023, the Company had $ 183,000 , $ 70,000 and $ 117,000 , respectively, in accrued interest related to unrecognized tax benefits.

The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease by approximately $ 195,000 over the next 12 months.

The reduction primarily relates to the anticipated lapse in the statute of limitations.

The unrecognized tax benefits relate primarily to apportionment of taxable income among various state tax jurisdictions.

The Company is subject to income tax in the U.S.

2 unchanged sentences

In addition, the Company is subject to state tax examinations for the tax years 2021 through 2024.

The Company adopted ASU 2023-09 on a prospective basis on January 1, 2025.

The following table represents net income taxes paid (refunded), disaggregated by federal, state, and foreign taxes, including income taxes paid (refunded) in individual jurisdictions that are equal to or greater than 5% of total income taxes paid:

For the Year Ended December 31,

(In thousands) 2025

federal income taxes paid $ 4,103

State income taxes paid

California income taxes paid 290

Other state income taxes paid 645

Total state income taxes paid 935

Total foreign income taxes paid 98

Total income taxes paid $ 5,136

Disclosures about Fair Value of Financial Instruments

38 unchanged sentences

These off-balance sheet financial instruments generally have fixed expiration dates or other termination clauses and may require payment of a fee.

The approximate remaining terms of commercial and standby letters of credit range from less than one to five years .

The approximate remaining terms of commercial and standby letters of credit range from less than one year to five years .

Since these financial instruments may expire without being drawn upon, the total amounts do not necessarily represent future cash requirements.

13 unchanged sentences

("Rubicon") for failed reimbursement of invoices that were processed and paid by the Company on Rubicon's behalf and unpaid fees for Company services that were due for invoice management services and bill pay services, together with interest and penalties related to the foregoing amounts.

The Company recorded a write-off to bad debt expense of $7.8 million for the year ended December 31, 2024 related to this matter.

The Company strongly believes in the merits of its claim against Rubicon.

On April 22, 2024, Rubicon filed a counterclaim against the Company for failure to perform its obligations under the Master Services Agreement between the Company and Rubicon.

The Company believes these claims to be without merit and intends to vigorously defend itself against such claims.

The Company recorded a write-off to bad debt expense of $7.8 million for the year ended December 31, 2024 related to this matter.

On March 28, 2025, the Company and Rubicon, in order to fully resolve the above matters, signed a Settlement Agreement and Mutual Release whereby Rubicon made an initial payment to the Company of $2.0 million.

The Company recorded a bad debt recovery of $2.0 million in the consolidated statement of income for the year ended December 31, 2025 upon receipt of the initial payment of $2.0 million.

Rubicon also agreed to a fully amortizing, interest-bearing Promissory Note of $5.0 million, with annual payments, maturing July 1, 2029.

The Company will record any future payments received in accordance with the Settlement Agreement and Mutual Release as a bad debt recovery when cash is received.

Revenue from Contracts with Customers

Revenue is recognized as the obligation to the customer is satisfied.

The following is detail of the Company’s revenue from contracts with clients.

The Company’s revenue from contracts with clients is as follows:

Processing fees – The Company earns fees on a per-item or monthly basis for the invoice processing services rendered on behalf of customers.

1 unchanged sentence

Monthly fees are earned over the course of a month, representing the period over which the performance obligation is satisfied.

The contracts have no significant impact of variable consideration and no significant financing components.

The contracts have no significant variable consideration or financing components.

Financial fees – The Company earns fees on a transaction level basis for invoice payment services when making customer payments.

17 unchanged sentences

5,395 3,963 4,026

Loss on sale of investment securities ( 3,534 ) ( 45 ) ( 173 )

Total fee revenue and other income $ 109,858 $ 113,847 $ 109,925

7 unchanged sentences

In addition, this segment provides church management software and on-line generosity services primarily for faith-based ministries.

As discussed in Note 2 to the consolidated financial statements, the Company applied discontinued operations accounting to the assets and liabilities being sold related to the TEM Business Unit as of and for the years ended December 31, 2025, 2024 and 2023, as applicable.

The TEM Business Unit is included in the Information Services operating segment.

The Banking Services segment provides banking services primarily to privately held businesses, franchise restaurants and faith-based ministries, as well as supporting the banking needs of the Information Services segment.

The Company’s accounting policies for segments are the same as those described in Note 1 of this report.

Management and the chief operating decision maker evaluates segment performance based on pre-tax income after allocations for corporate expenses.

Management and the chief operating decision maker evaluate segment performance based on pre-tax income after allocations for corporate expenses.

Transactions between segments are accounted for at what management believes to be fair value.

9 unchanged sentences

and Other Total

Fee income $ 127,781 $ 2,643 $ 1,425 $ 131,849

Fee revenue and other income $ 108,348 $ 2,730 $ 2,314 $ 113,392

Loss on sale of investment securities — — ( 3,534 ) ( 3,534 )

Interest income 47,226 65,707 ( 15,367 ) 97,566

5 unchanged sentences

Equipment 8,880 1,037 — 9,917

Bad debt expense 7,847 — — 7,847

Intersegment (income) expense 3,896 ( 3,896 ) — —

Bad debt recovery ( 2,000 ) — — ( 2,000 )

Intersegment expense (income) 3,472 ( 3,472 ) — —

Other operating expense 23,135 8,106 — 31,241

Total operating expense 133,074 18,917 — 151,991

Pre-tax income $ 13,117 $ 6,738 $ 4,364 $ 24,219

Pretax income from continuing operations 21,441 18,884 ( 1,566 ) 38,759

Pretax income from discontinued operations 5,314 — — 5,314

Goodwill 16,028 136 — 16,164

6 unchanged sentences

and Other Total

Fee income $ 126,766 $ 2,713 $ 988 $ 130,467

Fee revenue and other income $ 109,779 $ 2,643 $ 1,470 $ 113,892

Loss on sale of investment securities — — ( 45 ) $ ( 45 )

Interest income 40,316 59,568 ( 11,839 ) $ 88,045

Interest expense 1,540 33,496 ( 14,778 ) 20,258

Release of credit losses — ( 550 ) — ( 550 )

Provision for credit losses — 447 — 447

Total net revenue 148,555 28,268 4,364 181,187

2 unchanged sentences

Equipment 6,762 1,339 — 8,101

Intersegment (income) expense 4,270 ( 4,270 ) — —

Bad debt expense 7,847 — — 7,847

Intersegment expense (income) 3,896 ( 3,896 ) — —

Other operating expense 20,883 8,879 — 29,762

Total operating expense 137,361 20,381 — 157,742

Pre-tax income $ 23,662 $ 11,587 $ 2,107 $ 37,356

Pretax income from continuing operations 11,194 7,887 4,364 23,445

Pretax income from discontinued operations 773 — — 773

Goodwill 16,197 136 — 16,333

6 unchanged sentences

and Other Total

Fee income $ 120,234 $ 3,606 $ 1,142 $ 124,982

Fee revenue and other income $ 106,224 $ 2,713 $ 1,161 $ 110,098

Loss on sale of investment securities — — ( 173 ) ( 173 )

Interest income 39,899 54,696 ( 11,835 ) 82,760

Interest expense 1,191 28,029 ( 12,954 ) 16,266

Provision for credit losses — 1,350 — 1,350

Release of credit losses — ( 550 ) — ( 550 )

Total net revenue 144,932 29,930 2,107 176,969

2 unchanged sentences

Equipment 6,048 847 — 6,895

Intersegment (income) expense 3,350 ( 3,350 ) — —

Intersegment expense (income) 4,270 ( 4,270 ) — —

Other operating expense 20,005 8,418 — 28,423

Total operating expense 124,907 17,598 — 142,505

Pre-tax income $ 26,480 $ 21,566 $ ( 5,146 ) $ 42,900

Pretax income from continuing operations 20,025 12,332 2,107 34,464

Pretax income from discontinued operations 2,893 — — 2,893

Goodwill 12,168 136 — 12,304

7 unchanged sentences

Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively.

Included in occupancy expense on the consolidated statements of income for 2024 was operating lease cost of $ 1.3 million, short-term lease cost of $ 356,000 , and there was no variable lease cost.

The Company paid cash of $ 1.3 million for operating lease amounts included in the measurement of lease liabilities for the year ended December 31, 2024.

Included in occupancy expense on the consolidated statements of income for 2025 was operating lease cost of $ 855,000 , short-term lease cost of $ 203,000 , and there was no variable lease cost.

The Company paid cash of $ 826,000 for operating lease amounts included in the measurement of lease liabilities for the year ended December 31, 2025.

No right-of-use assets were obtained in exchange for lease liabilities during the year ended December 31, 2025.

17 unchanged sentences

Subsequent Events

In accordance with FASB ASC 855, Subsequent Events , the Company has evaluated subsequent events after the consolidated balance sheet date of December 31, 2024, and there were no events identified that would require additional disclosures to prevent the Company’s consolidated financial statements from being misleading.

In accordance with ASC 855, Subsequent Events , the Company has evaluated subsequent events after the consolidated balance sheet date of December 31, 2025, and there were no other events identified that would require additional disclosures to prevent the Company’s consolidated financial statements from being misleading.

Condensed Financial Information of Parent Company

4 unchanged sentences

Short-term investments 22,507 50,410

Securities available-for-sale, at fair value 428,422 399,339

Investment securities available-for-sale, at fair value 708,710 428,422

Loans, net 47,236 53,841

7 unchanged sentences

Other assets 41,955 51,169

Assets from discontinued operations $ — $ 14,413

Total assets $ 1,377,697 $ 1,401,233

2 unchanged sentences

Other liabilities 18,448 25,894

Liabilities from discontinued operations — 22,314

Total liabilities 1,134,699 1,172,203

9 unchanged sentences

Financial fees 39,038 41,252 43,790

Other fees 4,485 3,804 2,606

Other 1,830 2,991 1,745

Net interest income after provision for (release of) credit losses 27,299 20,466 19,287

3 unchanged sentences

Total expenses 136,570 139,979 127,904

Income before income tax expense 16,648 30,203 36,146

Income tax (benefit) expense ( 2,520 ) 144 1,242

Income from continuing operations, before income tax expense 29,596 15,875 27,311

Income tax benefit ( 1,516 ) ( 2,683 ) ( 579 )

Net income from continuing operations $ 31,112 $ 18,558 $ 27,890

Income from discontinued operations, net of tax $ 4,004 $ 610 $ 2,169

Net income $ 35,116 $ 19,168 $ 30,059

4 unchanged sentences

Net income $ 35,116 $ 19,168 $ 30,059

net income from discontinued operations 4,004 610 2,169

Net income from continuing operations 31,112 18,558 27,890

Adjustments to reconcile net income to net cash provided by operating activities:

4 unchanged sentences

Other, net 10,418 12,485 9,958

Net cash provided by operating activities - continuing operations 30,552 25,890 16,218

Net cash (used in) provided by operating activities - discontinued operations ( 1,371 ) 2,206 1,551

Net cash provided by operating activities 29,181 28,096 17,769

Cash flows from investing activities:

Proceeds from sales of securities available-for-sale 33,130 86,722 3,838

Proceeds from maturities of securities available-for-sale 49,712 23,032 44,566

Purchases of securities available-for-sale ( 119,744 ) ( 15,332 ) ( 45,340 )

Net decrease (increase) in loans 16,992 3,977 ( 34,295 )

Net (increase) decrease in payments in advance of funding ( 9,669 ) 94,914 ( 2,347 )

Purchase of bank-owned life insurance — — ( 4,000 )

Proceeds from sales of investment securities available-for-sale 105,870 33,130 86,722

Proceeds from maturities of investment securities available-for-sale 67,591 49,712 23,032

Purchases of investment securities available-for-sale ( 435,237 ) ( 119,744 ) ( 15,332 )

Net decrease in loans 6,605 16,992 3,977

Proceeds from sale of TEM business 18,000 — —

Net decrease (increase) in payments in advance of funding 44,016 ( 9,669 ) 94,914

Purchases of premises and equipment, net ( 5,494 ) ( 8,469 ) ( 11,876 )

Asset acquisition — ( 2,954 ) —

Net cash (used in) provided by investing activities - continuing operations ( 198,649 ) ( 41,002 ) 181,437

Net cash used in investing activities - discontinued operations ( 99 ) ( 817 ) ( 2,386 )

Net cash (used in) provided by investing activities ( 198,748 ) ( 41,819 ) 179,051

Cash flows from financing activities:

Net decrease (increase) in accounts and drafts receivable from customers 54,746 ( 14,872 ) ( 90,787 )

Net increase in accounts and drafts payable 74,323 11,875 16,393

Net (increase) decrease in accounts and drafts receivable from customers ( 13,519 ) 54,746 ( 14,872 )

Net (decrease) increase in accounts and drafts payable ( 7,745 ) 72,757 13,514

Cash dividends paid ( 16,511 ) ( 16,463 ) ( 15,959 )

1 unchanged sentence

Other financing activities, net ( 1,299 ) ( 1,704 ) ( 834 )

Net cash provided by (used in) financing activities 103,642 ( 25,563 ) ( 95,729 )

Net increase (decrease) in cash and cash equivalents 89,931 171,257 ( 100,720 )

Net cash (used in) provided by financing activities - continuing operations ( 65,062 ) 102,088 ( 23,924 )

Net cash (used in) provided by financing activities - discontinued operations ( 19,665 ) 1,566 ( 1,639 )

Net cash (used in) provided by financing activities ( 84,727 ) 103,654 ( 25,563 )

Net (decrease) increase in cash and cash equivalents ( 254,294 ) 89,931 171,257

Cash and cash equivalents at beginning of year 293,103 203,172 31,915

54 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-K

Item 8. Financial Statements and Supplementary Data