What changed in this filing

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Item 1. Financial Statements

2026-05-12 compared with 2025-11-07 · 231 added, 318 removed, 719 unchanged (43% of the section changed)

1 unchanged sentence

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited) September 30,

(Unaudited) March 31,

2026 December 31,

7 unchanged sentences

Total Securities 295,452 279,895

Loans Held for Sale 107 900

Loans, Net of Allowance for Credit Losses of $ 10,146 and $ 9,805 at September 30, 2025 and December 31, 2024, Respectively

Loans, Net of Allowance for Credit Losses of $ 10,303 and $ 10,116 at March 31, 2026 and December 31, 2025, Respectively

1,147,534 1,152,144

18 unchanged sentences

Common Stock, $ 0.4167 Par Value;

35,000,000 Shares Authorized, 5,833,533 Shares Issued and 4,998,383 Shares Outstanding at September 30, 2025, with 5,787,744 and 5,132,654 Shares Issued and Outstanding at December 31, 2024.

35,000,000 Shares Authorized, 5,876,197 Shares Issued and 5,072,183 Shares Outstanding at March 31, 2026, with 5,835,325 and 5,036,509 Shares Issued and Outstanding at December 31, 2025.

Capital Surplus

2 unchanged sentences

93,081 90,625

Treasury Stock, at Cost ( 835,150 and 655,090 Shares at September 30, 2025 and December 31, 2024, Respectively)

Treasury Stock, at Cost ( 804,014 and 798,816 Shares at March 31, 2026 and December 31, 2025, Respectively)

( 19,947 ) ( 19,752 )

5 unchanged sentences

The accompanying notes are an integral part of these consolidated financial statements

CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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

13 unchanged sentences

NET INTEREST AND DIVIDEND INCOME 13,872 11,311

Provision (Recovery) for Credit Losses - Loans 336 25 269 ( 105 )

Recovery for Credit Losses - Unfunded Commitments ( 77 ) ( 66 ) ( 42 ) ( 9 )

Provision for Credit Losses - Loans 228 68

Provision (Recovery) for Credit Losses - Unfunded Commitments 13 ( 108 )

NET INTEREST AND DIVIDEND INCOME AFTER NET PROVISION (RECOVERY) FOR CREDIT LOSSES

2 unchanged sentences

Service Fees 554 462

Insurance Commissions 1 1 3 4

Other Commissions 76 64

Net Gain on Sale of Loans 11 22

Net (Loss) Gain on Investment Securities ( 11,752 ) 245 ( 11,821 ) 49

Net Gain (Loss) on Investment Securities 8 ( 69 )

Net Gain on Purchased Tax Credits 10 4

Gain on Sale of Subsidiary — 138 — 138

Net Gain on Disposal of Premises and Equipment — — — 274

Income from Bank-Owned Life Insurance 152 149

Net Gain on Bank-Owned Life Insurance Claims — — — 915

Other Income 151 155

TOTAL NONINTEREST (LOSS) INCOME ( 10,677 ) 1,233 ( 8,958 ) 3,839

TOTAL NONINTEREST INCOME 962 787

NONINTEREST EXPENSE

8 unchanged sentences

Advertising 142 119

Other Real Estate Owned 8 2 9 16

Amortization of Intangible Assets — 264 — 870

Other Expense 841 765

TOTAL NONINTEREST EXPENSE 10,012 9,802

Income (Loss) Before Income Tax (Benefit) Expense

( 7,020 ) 3,966 33 12,292

Income Tax (Benefit) Expense ( 1,324 ) 747 ( 131 ) 2,227

Net (Loss) Income $ ( 5,696 ) $ 3,219 $ 164 $ 10,065

(LOSS) EARNINGS PER SHARE

Income Before Income Tax Expense

Income Tax Expense 714 427

Net Income $ 3,867 $ 1,909

EARNINGS PER SHARE

Basic $ 0.77 $ 0.37

6 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

(Dollars in Thousands)

Net (Loss) Income $ ( 5,696 ) $ 3,219 $ 164 $ 10,065

Other Comprehensive Income:

Net Income $ 3,867 $ 1,909

Other Comprehensive (Loss) Income:

Change in Unrealized Loss on Available-for-Sale Debt Securities ( 1,909 ) 2,371

1,341 5,644 5,052 3,672

Income Tax Effect 406 ( 506 )

Reclassification Adjustment for Loss on Sale of Securities Included in Net Income (1)

11,757 — 11,757 —

Income Tax Effect (2)

( 2,505 ) — ( 2,505 ) —

Other Comprehensive Income, Net of Income Tax Effect

Other Comprehensive (Loss) Income, Net of Income Tax Effect

( 1,503 ) 1,865

Total Comprehensive Income $ 2,364 $ 3,774

(1) Reported in Net (Loss) Gain on Investment Securities on the Consolidated Statements of Income.

(2) Reported in Income Tax (Benefit) Expense on the Consolidated Statements of Income.

The accompanying notes are an integral part of these consolidated financial statements

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

Three Months Ended September 30, 2025 Shares Issued Common Stock Capital Surplus Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Total Stockholders' Equity

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

June 30, 2025 5,832,117 $ 2,430 $ 87,190 $ 94,178 $ ( 21,120 ) $ ( 14,316 ) $ 148,362

Comprehensive Income:

Net Loss — — — ( 5,696 ) — — ( 5,696 )

Other Comprehensive Income — — — — — 10,308 10,308

Stock-Based Compensation Expense — — 195 — — — 195

Exercise of Stock Options 1,416 1 30 — 566 — 597

Treasury stock purchased, at cost ( 249 shares)

— — — — ( 7 ) — ( 7 )

Dividends Paid ($ 0.26 Per Share)

— — — ( 1,294 ) — — ( 1,294 )

September 30, 2025 5,833,533 $ 2,431 $ 87,415 $ 87,188 $ ( 20,561 ) $ ( 4,008 ) $ 152,465

Three Months Ended September 30, 2024 Shares Issued Common Stock Capital Surplus Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Total Stockholders' Equity

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

June 30, 2024 5,783,588 $ 2,410 $ 85,718 $ 87,673 $ ( 14,568 ) $ ( 18,351 ) $ 142,882

Comprehensive Income:

Net Income — — — 3,219 — — 3,219

Other Comprehensive Income — — — — — 4,441 4,441

Stock-Based Compensation Expense — — 215 — — — 215

Exercise of Stock Options 5,850 3 139 — ( 148 ) — ( 6 )

Treasury Stock Purchased, at cost ( 18,220 shares)

— — — — ( 326 ) — ( 326 )

Dividends Paid ($ 0.25 Per Share)

— — — ( 1,285 ) — — ( 1,285 )

September 30, 2024 5,789,438 $ 2,413 $ 86,072 $ 89,607 $ ( 15,042 ) $ ( 13,910 ) $ 149,140

The accompanying notes are an integral part of these consolidated financial statements

Nine Months Ended September 30, 2025 Shares Issued Common Stock Capital Surplus Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Total Stockholders' Equity

Three Months Ended March 31, 2026 Shares Issued Common Stock Capital Surplus Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Total Stockholders' Equity

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

2 unchanged sentences

Net Income — — — 3,867 — — 3,867

Other Comprehensive Income — — — — — 13,227 13,227

Other Comprehensive Loss — — — — — ( 1,503 ) ( 1,503 )

Restricted Stock Awards Granted 30,425 13 ( 13 ) — — — —

Restricted Stock Awards Forfeited ( 200 ) — 2 — ( 2 ) — —

Stock-Based Compensation Expense — — 212 — — — 212

4 unchanged sentences

— — — ( 1,411 ) — — ( 1,411 )

September 30, 2025 5,833,533 $ 2,431 $ 87,415 $ 87,188 $ ( 20,561 ) $ ( 4,008 ) $ 152,465

Nine Months Ended September 30, 2024 Shares Issued Common Stock Capital Surplus Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Total Stockholders' Equity

March 31, 2026 5,876,197 $ 2,449 $ 88,083 $ 93,081 $ ( 19,947 ) $ ( 4,915 ) $ 158,751

Three Months Ended March 31, 2025 Shares Issued Common Stock Capital Surplus Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Total Stockholders' Equity

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

11 unchanged sentences

— — — ( 1,281 ) — — ( 1,281 )

September 30, 2024 5,789,438 $ 2,413 $ 86,072 $ 89,607 $ ( 15,042 ) $ ( 13,910 ) $ 149,140

March 31, 2025 5,828,717 $ 2,429 $ 86,960 $ 91,484 $ ( 17,214 ) $ ( 15,370 ) $ 148,289

The accompanying notes are an integral part of these consolidated financial statements

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Nine Months Ended September 30, 2025 2024

Three Months Ended March 31, 2026 2025

(Dollars in Thousands)

4 unchanged sentences

Depreciation and Amortization 445 442

Provision (Recovery) for Credit Losses - Loans 269 ( 105 )

Recovery for Credit Losses - Unfunded Commitments ( 42 ) ( 9 )

Net Loss (Gain) on Sale of Debt Securities

Provision for Credit Losses - Loans 228 68

Provision (Recovery) for Credit Losses - Unfunded Commitments 13 ( 108 )

Net Loss on Sale of Equity Securities

Net Unrealized Loss (Gain) Recognized on Equity Securities

Net Unrealized (Gain) Loss Recognized on Equity Securities ( 8 ) 56

Gain on Purchased Tax Credits ( 10 ) ( 4 )

Income from Bank-Owned Life Insurance ( 152 ) ( 149 )

Gain on Bank-Owned Life Insurance Death Benefit Claims — ( 915 )

Proceeds From Mortgage Loans Sold 303 2,063

1 unchanged sentence

Net Gain on Sale of Loans ( 11 ) ( 22 )

Loss on Sale of Other Real Estate Owned and Repossessed Assets — 30

Noncash Expense for Stock-Based Compensation 212 223

Increase in Accrued Interest Receivable ( 753 ) ( 1,160 )

Net Gain on Disposal of Premises and Equipment — ( 274 )

Increase in Deferred Income Tax 3,508 1,035

Decrease in Taxes Payable ( 448 ) ( 4,314 )

(Decrease) Increase in Accrued Interest Payable ( 527 ) 1,364

(Increase) Decrease in Accrued Interest Receivable ( 77 ) 57

(Benefit) Provision in Deferred Income Tax ( 406 ) 510

Increase in Taxes Payable 623 384

Payments on Operating Leases —

Decrease in Accrued Interest Payable ( 101 ) ( 46 )

Other, Net ( 1,356 ) 431

5 unchanged sentences

Proceeds from Sale of Debt Securities

Proceeds from Sale of Equity Securities

Net (Increase) Decrease in Loans ( 46,443 ) 50,551

Net Decrease in Loans 4,382 7,466

Purchase of Premises and Equipment ( 202 ) ( 101 )

Proceeds from Disposal of Premises and Equipment — 988

Proceeds From a Claim on Bank-Owned Life Insurance — 2,678

Investment in Low Income Housing Tax Credit

( 354 ) ( 604 )

Proceeds From Sale of Other Real Estate Owned — 132

Purchase of Restricted Equity Securities ( 4,880 ) —

Investment in Historical Tax Credit ( 217 ) —

Redemption of Restricted Equity Securities — 34

Net Cash Used in Investing Activities ( 48,451 ) ( 8,533 )

Net Cash (Used in) Provided by Investing Activities ( 13,432 ) 13,181

FINANCING ACTIVITIES

Net Increase in Deposits 50,903 86,661

Principal Payments on Other Borrowed Funds

Proceeds From Other Borrowed Funds 20,000 —

Net Increase (Decrease) in Deposits 35,632 ( 2,420 )

Cash Dividends Paid ( 1,411 ) ( 1,281 )

1 unchanged sentence

Exercise of Stock Options 341 573

Net Cash Provided by Financing Activities 41,989 82,474

Net Cash Provided by (Used in) Financing Activities 34,270 ( 5,506 )

Increase in Cash and Due from Banks 23,856 11,702

3 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Nine Months Ended September 30, 2025 2024

Three Months Ended March 31, 2026 2025

(Dollars in Thousands)

6 unchanged sentences

Transfer of Loans from Loans Held for Sale to Portfolio — 403

Other Real Estate Acquired in Settlement of Loans 158 150

Securities Purchased Not Settled 4,013 —

Syndicated Loans Purchased and Sold Not Settled, net — 2,985

1 unchanged sentence

Unfunded Commitment in Low Income Housing Tax Credit

Unfunded Commitment in Historical Tax Credits 555 —

The accompanying notes are an integral part of these consolidated financial statements

12 unchanged sentences

Actual results could differ significantly from those estimates.

Material estimates that are particularly susceptible to significant change in the near term relate to determination of the allowance for credit losses on loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, impairment evaluations of securities, goodwill and intangible assets impairment, and the valuation of deferred tax assets.

Material estimates that are particularly susceptible to significant change in the near term relate to determination of the allowance for credit losses on loans, goodwill and intangible assets impairment, and the valuation of deferred tax assets.

In the opinion of management, the accompanying unaudited interim financial statements include all adjustments considered necessary for a fair presentation of the Company’s financial position and results of operations at the dates and for the periods presented.

7 unchanged sentences

The Bank operates nine offices in Greene, Allegheny, Washington, Fayette and Westmoreland Counties in southwestern Pennsylvania, and three offices in Marshall and Ohio Counties in West Virginia.

On December 1, 2023, the Company announced that the Bank and EU entered into an Asset Purchase Agreement with World Insurance Associates, LLC ("World") pursuant to which EU sold substantially all of its assets to World for a purchase price of $ 30.5 million cash plus possible additional earn-out payments.

The sale of assets was completed December 8, 2023, and resulted in a pre-tax gain of $ 24.6 million.

This transaction did not meet the criteria for discontinued operations reporting.

During 2024, the Company recognized an additional gain of $ 138,000 following the final settlement of all liabilities and an earn-out payment of $ 708,000 .

During 2025, an additional $ 49,000 earn-out payment was recognized.

Operating Segments

An operating segment is defined as a component of an enterprise that engages in business activities which generate revenue and incur expense, and the operating results of which are reviewed by management.

The Company has evaluated the provisions of ASC Topic 280, Segment Reporting , and determined that at September 30, 2025 and December 31, 2024, the Company had one reportable segment, community banking services.

The Company has evaluated the provisions of ASC Topic 280, Segment Reporting , and determined that at March 31, 2026 and December 31, 2025, the Company had one reportable segment, community banking services.

Critical Accounting Policies;

4 unchanged sentences

The measurement of expected credit losses is applicable to loans receivable and securities measured at amortized cost.

It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of

It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit.

The ACL is established through a provision for credit losses that is charged against income.

22 unchanged sentences

Also included in the ACL on loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative analysis or the forecasts described above.

Factors that the Company considers include changes in lending policies and procedures, business conditions, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and non-accrual loans, and the effect of external factors such as competition, legal and regulatory requirements, among others.

Factors that the Company considers include changes in lending policies and procedures, business conditions, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and nonaccrual loans, and the effect of external factors such as competition, legal and regulatory requirements, among others.

Furthermore, the Company considers the inherent uncertainty in quantitative models that are built upon historical data.

1 unchanged sentence

On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics.

When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable.

If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less estimated costs to sell, at the reporting date, and the amortized cost basis of the loan.

When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the ACL will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable.

Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves.

ACL on Off-Balance Sheet Unfunded Commitments

The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancellable.

The Company is required to include unfunded commitments that are expected to be funded in the future within the ACL calculation, other than those that are unconditionally cancellable.

To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate.

7 unchanged sentences

If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security.

If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost.

If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the

fair value is less than the amortized cost.

Any impairment that has not been recorded through an ACL is recognized in other comprehensive income (loss), net of tax.

7 unchanged sentences

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of loans and available-for-sale securities.

Accrued interest receivable on loans is reported as a component of accrued interest receivable and other assets on the Consolidated Statement of Financial Condition, totaled $ 4.5 million at September 30, 2025 and $ 3.9 million at December 31, 2024 and is excluded from the estimate of credit losses.

Accrued interest receivable on available-for-sale securities, also a component of accrued interest receivable and other assets on the Consolidated Statement of Financial Condition, totaled $ 1.8 million at September 30, 2025 and $ 1.7 million at December 31, 2024 and is excluded from the estimate of credit losses.

Accrued interest receivable on loans is reported as a component of accrued interest receivable and other assets on the Consolidated Statement of Financial Condition, totaled $ 4.43 million at March 31, 2026 and $ 4.41 million at December 31, 2025 and is excluded from the estimate of credit losses.

Accrued interest receivable on available-for-sale securities, also a component of accrued interest receivable and other assets on the Consolidated Statement of Financial Condition, totaled $ 2.02 million at March 31, 2026 and $ 1.96 million at December 31, 2025 and is excluded from the estimate of credit losses.

Recent Accounting Standards

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

Improvements to Income Tax Disclosures .

This ASU requires that public entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold.

The ASU requires all entities to disclose on an annual basis (1) the amount of income taxes paid, disaggregated by federal, state and foreign taxes and (2) the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal or greater than five percent of total income taxes paid.

The ASU also requires that all entities disclose (1) income (loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic or foreign and (2) income tax expense (or benefit) from continuing operations disaggregated by federal (national), state and foreign.

This ASU is effective for public entities for annual periods beginning after December 15, 2024.

The Company does not expect the adoption of the ASU to have a material effect on the Company's consolidated statements of financial condition and results of operations.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE);

4 unchanged sentences

This ASU is effective for public entities for annual periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027.

The Company does not expect the adoption of the ASU to have a material effect on the Company's consolidated statements of financial condition and results of operations.

The One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S on July 4, 2025.

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The legislation has various effective dates, with certain provisions starting in 2025 and others implemented through 2027.

The Company is currently assessing the impact of the OBBBA on its consolidated statements of financial condition and results of operations.

The Company is currently evaluating the impact of this update on its disclosures, however does not expect the adoption of this update to have a material effect on its consolidated financial statements.

In November 2025, the FASB issued ASU 2025-08, Financial Instruments—Credit Losses (Topic 326):Purchased Loans.

The update expands the population of acquired financial assets subject to the gross-up approach in Topic 326 to include acquired seasoned loans without credit deterioration (excluding credit cards).

This ASU is effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods with early adoption permitted.

The amendments in this update are to be applied prospectively to loans that are acquired on or after the initial application date.

The Company adopted this update January 1, 2026 and will implement the guidance upon the occurrence of a future acquisition transaction.

In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements.

The update clarifies hedge accounting guidance and addresses issues arising from the global reference rate reform initiative.

There are five issues addressed:

1) expanding risks permitted to be aggregated for cash flow hedges to include those having a similar risk exposure;

2) provide cash flow accounting guidance on choose-your-rate debt instruments;

3) expand hedge accounting for forecasted purchases and sales of nonfinancial assets;

4) update guidance on net written options as hedging instruments;

5) refine foreign-currency-denominated debt instrument as hedging instrument and hedged item (dual hedge).

This ASU is effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.

The amendments in this update are to be applied on a prospective basis.

The Company does not expect the adoption of the ASU to have a material effect on its consolidated financial statements.

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

Narrow-Scope Improvements.

The update provides a comprehensive list of interim disclosures that are required by GAAP to provide clarity about the current requirements.

The update also includes a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity.

This ASU is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

The amendments in this update can be applied prospectively or retrospectively.

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

In December 2025, the FASB issued ASU 2025-12, Codification Improvements .

The amendments in this update represent changes that (1) clarify, (2) correct errors or (3) make minor improvements to the Codification.

The amendments are intended to make the Codification easier to understand and apply.

The amendments in this update are varied in nature and may affect the application of guidance in cases in which the original guidance may have been unclear.

The amendments in this update are effective for all entities for annual reporting beginning after December 15, 2026, and interim reporting for periods within those annual reporting periods.

Early adoption is permitted in amendments on an issue-by-issue basis.

The Company is currently evaluating the impact of the update on its financial disclosures, however does not expect the adoption of this update to have a material impact on its consolidated financial statements.

Earnings Pe r Share

3 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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

Net (Loss) Income

$ ( 5,696 ) $ 3,219 $ 164 $ 10,065

Net Income $ 3,867 $ 1,909

Weighted-Average Basic Common Shares Outstanding

4 unchanged sentences

5,318,874 5,471,006

(Loss) Earnings Per Share:

$ ( 1.14 ) $ 0.63 $ 0.03 $ 1.96

Earnings Per Share:

$ 0.77 $ 0.37

2 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Stock Options — 24,310

1 unchanged sentence

The following tables present the amortized cost and fair value of securities available-for-sale at the dates indicated:

September 30, 2025

March 31, 2026

(Dollars in Thousands)

Available-for-Sale Debt Securities:

Government Agencies

$ 2,000 $ — $ ( 33 ) $ 1,967

Obligations of States and Political Subdivisions

8 unchanged sentences

Equity Securities:

Total Equity Securities 917

Total Securities $ 295,452

2 unchanged sentences

Available-for-Sale Debt Securities:

Government Agencies

$ 4,996 $ — $ ( 1,051 ) $ 3,945

Obligations of States and Political Subdivisions

3 unchanged sentences

Collateralized Mortgage Obligations - Government-Sponsored Enterprises 72,266 576 ( 5,267 ) 67,575

Collateralized Mortgage Obligations - Non-Agency 10,671 1 ( 125 ) 10,547

Collateralized Loan Obligations 101,409 14 ( 205 ) 101,218

5 unchanged sentences

The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at the dates indicated:

September 30, 2025

March 31, 2026

Less than 12 months

1 unchanged sentence

(Dollars in Thousands)

Government Agencies

1 $ 1,967 $ ( 33 ) — $ — $ — 1 $ 1,967 $ ( 33 )

Mortgage Backed Securities- Government-Sponsored Enterprises 4 19,688 ( 92 ) 1 33 — 5 19,721 ( 92 )

8 unchanged sentences

(Dollars in Thousands)

Government Agencies — $ — $ — 1 $ 3,945 $ ( 1,051 ) 1 $ 3,945 $ ( 1,051 )

Obligations of States and Political Subdivisions 2 1,068 ( 16 ) 5 2,279 ( 133 ) 7 3,347 ( 149 )

Mortgage Backed Securities- Government-Sponsored Enterprises — $ — $ — 1 $ 47 $ — 1 $ 47 $ —

Collateralized Mortgage Obligations - Government-Sponsored Enterprises 3 13,357 ( 114 ) 7 18,782 ( 5,153 ) 10 32,139 ( 5,267 )

Collateralized Mortgage Obligations - Non-Agency 3 9,206 ( 125 ) — — — 3 9,206 ( 125 )

Collateralized Loan Obligations 10 68,567 ( 194 ) 2 11,174 ( 11 ) 12 79,741 ( 205 )

1 unchanged sentence

18 $ 94,625 $ ( 438 ) 13 $ 38,506 $ ( 6,135 ) 31 $ 133,131 $ ( 6,573 )

For debt securities, the Company does not believe that any individual unrealized loss as of September 30, 2025 or December 31, 2024, represents a credit related impairment.

For debt securities, the Company does not believe that any individual unrealized loss as of March 31, 2026 or December 31, 2025, represents a credit related impairment.

The Company performs a review of the entire securities portfolio on a quarterly basis to identify securities that may indicate a credit related impairment.

The unrealized losses on securities at September 30, 2025 and December 31, 2024 relate principally to changes in market interest rates subsequent to the acquisition of the specific securities.

The unrealized losses on securities at March 31, 2026 and December 31, 2025 relate principally to changes in market interest rates subsequent to the acquisition of the specific securities.

The Company does not intend to sell, and it is not more likely than not that it will be required to sell any of the securities in an unrealized loss position before recovery of its amortized cost or maturity of the security.

Total securities available to be pledged have a fair value of $ 247.9 million at September 30, 2025 and $ 251.3 million at December 31, 2024 of which securities with a fair value of $ 179.3 million and $ 176.2 million at September 30, 2025 and December 31, 2024, respectively, were pledged to secure uninsured public deposits, borrowings or for other purposes as required or permitted by law.

Total securities available to be pledged have a fair value of $ 272.0 million at March 31, 2026 and $ 256.7 million at December 31, 2025 of which securities with a fair value of $ 168.9 million and $ 172.6 million at March 31, 2026 and December 31, 2025, respectively, were pledged to secure uninsured public deposits, borrowings or for other purposes as required or permitted by law.

The scheduled maturities of securities available-for-sale are summarized as follows.

2 unchanged sentences

however, regular principal payments and prepayments of principal are received on a monthly basis.

September 30, 2025

March 31, 2026

(Dollars in Thousands)

2 unchanged sentences

Due after Five Years through Ten Years 35,486 34,820

36,580 35,598

Due after Ten Years 265,261 259,682

240,113 236,003

$ 276,757 $ 271,664

The following table presents the gain and loss on sales of debt securities, as well as the gain and loss on equity securities from both realized sales and unrealized market adjustments for the periods indicated.

All gains and losses presented in the table below are reported in Net (Loss) Gain on Investment Securities on the Consolidated Statements of Income.

Total $ 300,780 $ 294,535

The following table presents the gain and loss on equity securities from both realized sales and unrealized market adjustments for the periods indicated.

There was no realized gain or loss on sales of debt securities for the periods indicated.

All gains and losses presented in the table below are reported in Net Gain (Loss) on Investment Securities on the Consolidated Statements of Income.

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

(Dollars in thousands)

Debt Securities

Gross Realized Gain $ 423 $ — $ 423 $ —

Gross Realized Loss ( 12,180 ) — ( 12,180 ) —

Net Gain on Debt Securities $ ( 11,757 ) $ — $ ( 11,757 ) $ —

Equity Securities

Net Unrealized Gain (Loss) Recognized on Securities Held

$ 5 $ 245 $ ( 51 ) $ 49

Net Realized Loss Recognized on Securities Sold — ( 13 )

Net Gain (Loss) on Equity Securities

$ 5 $ 245 $ ( 64 ) $ 49

Net (Loss) Gain on Investment Securities $ ( 11,752 ) $ 245 $ ( 11,821 ) $ 49

During the three and nine months ended September 30, 2025, there were $ 11.8 million gross realized losses on the sale of debt securities as a result of the Company implementing a balance sheet repositioning strategy of its portfolio of available-for-sale securites.

The Company sold $ 117.8 million in market value of its lower-yielding investment securities with an average yield of 2.87 % and purchased $ 117.8 million of higher-yielding securities with an average yield of 5.43 %.

There were no gross unrealized losses on the sale of debt securities during the three and nine months ended September 30, 2024.

Net Gain (Loss) on Investment Securities $ 8 $ ( 69 )

Loans And Allowance For Credit Losses

5 unchanged sentences

The consumer segment consists primarily of indirect auto loans as well as personal installment loans and personal or overdraft lines of credit.

The other segments consists primarily of loans to municipal borrowers that are secured by improved property or other business asset.

Residential mortgage loans are typically longer-term loans and, therefore, generally present greater interest rate risk than the consumer and commercial loans.

12 unchanged sentences

The following table presents the classifications of loans as of the dates indicated:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(Dollars in Thousands)

9 unchanged sentences

$ 1,147,534 $ 1,152,144

Total unamortized net deferred loan fees were $ 839,000 and $ 846,000 at September 30, 2025 and December 31, 2024, respectively.

Included in total loans above are unamortized net deferred loan fees of $ 718 ,000 and $ 830 ,000 at March 31, 2026 and December 31, 2025, respectively.

The Company uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio.

5 unchanged sentences

Loans classified as loss are considered uncollectible and of such little value that continuance as an asset is not warranted.

The following tables present the Company’s loans by year of origination, loan segmentation and risk indicator summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard, Doubtful and Loss within the internal risk rating system as of the dates indicated.

Classified Loans by Origination Year (as of September 30, 2025)

(dollars in thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total

The following tables present the Company’s loans by year of origination, loan segmentation, risk indicator summarized by the aggregate Pass and the criticized categories of Special Mention and Substandard and gross charge-offs for the three months ended March 31, 2026 and year ended December 31, 2025.

The Company did not have any loans classified as Doubtful or Loss as of the dates indicated.

Classified Loans by Origination Year (as of March 31, 2026)

2026 2025 2024 2023 2022 Prior Revolving Loans Amortized Cost Basis Total

(Dollars in Thousands)

Pass $ 15,603 $ 18,479 $ 15,060 $ 28,507 $ 42,478 $ 185,828 $ 19,691 $ 325,646

1 unchanged sentence

Substandard — 427 — 2,113 73 616 — 3,229

Doubtful — — — — — — — —

Loss — — — — — — — —

Total 15,603 19,262 15,060 30,620 44,080 186,445 19,691 330,761

2 unchanged sentences

Substandard — 200 — — — 225 — 425

Doubtful — — — — — — — —

Loss — — — — — — — —

Total 13,602 98,158 71,155 52,300 68,475 242,490 3,849 550,029

2 unchanged sentences

Substandard — — — 812 — — — 812

Doubtful — — — — — — — —

Loss — — — — — — — —

Total 3,623 15,336 9,799 8,174 7,441 7,021 — 51,394

3 unchanged sentences

Substandard — 1,704 131 — — — — 1,835

Doubtful — — — — — — — —

Loss — — — — — — — —

Total 8,759 40,925 21,296 17,681 5,850 12,173 51,010 157,694

2 unchanged sentences

Substandard — — — — — 89 — 89

Doubtful — — — — — — — —

Loss — — — — — — — —

Total 209 620 342 4,866 14,338 8,015 8,330 36,720

2 unchanged sentences

Substandard — — — — — — — —

Doubtful — — — — — — — —

Loss — — — — — — — —

Total 62 99 105 3,835 21,670 4,350 1,118 31,239

Total Loans $ 41,858 $ 174,400 $ 117,757 $ 117,476 $ 161,854 $ 460,494 $ 83,998 $ 1,157,837

Gross Charge Offs $ — $ — $ 19 $ 64 $ 19 $ 102 $ 45 $ 249

Residential $ — $ — $ — $ — $ — $ — $ — $ —

Commercial — — — — — — — —

Construction — — — — — — — —

Total Real Estate — — — — — — — —

Commercial and Industrial

— — — — — — — —

Consumer — — 9 22 60 38 18 147

Other — — — — — — — —

Total Gross Charge Offs — — 9 22 60 38 18 147

Classified Loans by Origination Year (as of December 31, 2025)

(dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total

2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total

(Dollars in Thousands)

Pass $ 18,321 $ 15,378 $ 29,290 $ 43,086 $ 38,637 $ 156,386 $ 23,082 $ 324,180

1 unchanged sentence

Substandard — — 2,139 — — 592 — 2,731

Doubtful — — — — — — — —

Loss — — — — — — — —

Total 19,106 15,378 31,429 44,627 38,637 156,978 23,082 329,237

2 unchanged sentences

Substandard — 1,962 — — — 95 — 2,057

Doubtful — — — — — — — —

Loss — — — — — — — —

Total 99,359 77,144 55,898 69,488 81,953 166,212 2,126 552,180

2 unchanged sentences

Substandard — — 754 — — — — 754

Doubtful — — — — — — — —

Loss — — — — — — — —

Total 11,170 12,220 7,561 7,446 — 7,022 — 45,419

3 unchanged sentences

Substandard — — — — — — — —

Doubtful — — — — — — — —

Loss — — — — — — — —

Total 41,919 22,270 20,315 6,442 2,670 10,345 57,120 161,081

2 unchanged sentences

Substandard — — — — 25 82 — 107

Doubtful — — — — — — — —

Loss — — — — — — — —

Total 688 411 5,635 17,322 7,072 3,311 8,437 42,876

2 unchanged sentences

Substandard — — — — — — — —

Doubtful — — — — — — — —

Loss — — — — — — — —

Total 103 120 3,837 21,837 — 4,452 1,118 31,467

Total Loans $ 172,345 $ 127,543 $ 124,675 $ 167,162 $ 130,332 $ 348,320 $ 91,883 $ 1,162,260

Gross Charge Offs $ — $ 46 $ 329 $ 57 $ 54 $ 52 $ 114 $ 652

Residential $ 25 $ — $ — $ — $ — $ — $ — $ 25

Commercial — — — 19 — — — 19

Construction — — — — — — — —

Total Real Estate $ 25 — — 19 — — — 44

Commercial and Industrial

218 — — — — 5 — 223

Consumer — 4 19 95 23 97 64 302

Other — — — — — — — —

Total Gross Charge Offs $ 243 $ 4 $ 19 $ 114 $ 23 $ 102 $ 64 $ 569

The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of the dates indicated:

September 30, 2025

March 31, 2026

(Dollars in Thousands)

17 unchanged sentences

$ 1,152,312 $ 3,973 $ 665 $ — $ 4,638 $ 5,310 $ 1,162,260

Additional interest income that would have been recorded if the loans that were nonaccrual at September 30, 2025 were current was $ 20,000 and $ 101,000 for the three and nine months ended September 30, 2025, respectively, and $ 16,000 and $ 58,000 for the three and nine months ended September 30, 2024, respectively.

Additional interest income that would have been recorded if the loans that were nonaccrual at March 31, 2026 were current was $ 27,000 for the three months ended March 31, 2026, and $ 52,000 for the three months ended March 31, 2025.

The following table sets forth the amounts for amortized cost basis of loans on nonaccrual status, loans past due 90 days still accruing, and categories of nonperforming assets at the dates indicated.

September 30, 2025

March 31, 2026

Nonaccrual With No ACL Nonaccrual With ACL Loans Past Due 90 Days Still Accruing Total Nonperforming Assets

5 unchanged sentences

$ 1,797 $ 1,532 $ — 3,329

Total Other Real Estate Owned 158

Other Real Estate Owned

Total Nonperforming Assets

4 unchanged sentences

$ 2,210 $ 521 $ — $ 2,731

2,057 — — 2,057

Construction 131 284 — 415

Total Nonaccrual Loans

$ 4,505 $ 805 $ — 5,310

Total Other Real Estate Owned —

Other Real Estate Owned

Total Nonperforming Assets

No interest income on nonaccrual loans was recognized during the three and nine months ended September 30, 2025 and September 30, 2024.

No interest income on nonaccrual loans was recognized during the three months ended March 31, 2026 and March 31, 2025.

All modifications and refinancing, including those with borrowers that are experiencing financial difficulty are subject to the modification guidance in ASC 310-20.

3 unchanged sentences

Additionally, the effective interest rate should be recalculated based on the amortized cost basis of the new loan and a reassessment of contractual cash flow.

Modifications to Borrowers Experiencing Financial Difficulty

The following table presents the amortized cost of loans to borrowers experiencing financial difficulty by portfolio segment and type of modification during the periods presented:

Three and Nine Months Ended September 30, 2025

Extension Payment

Delay Interest

Reduction Term

Reduction Total % of Portfolio Segment

dollars in thousands

Residential $ — $ — $ — $ 359 $ 359 0.11 %

Construction — 308 — — 308 0.79 %

$ — $ 308 $ — $ 359 $ 667 0.06 %

(1) Excludes loans that were fully paid off or fully charged off by period end

The following table describes the effect of loan modifications made to borrowers experiencing financial difficulty during the periods presented.

Three and Nine Months Ended September 30, 2025

Weighted Average

Term Extension

(in months) Weighted Average

Payment Delay

(in months) Weighted Average

Interest Rate

Residential 86 — 1.50 %

Construction — 6 — %

For the three and nine months ended September 30, 2024, there were no new loan modifications to borrowers experiencing financial difficulty.

The recorded investment of residential real estate loans for which formal foreclosure proceedings were in process according to applicable requirements of the local jurisdiction was $ 453 ,000 and $ 1.2 million at September 30, 2025 and December 31, 2024, respectively.

For the three months ended March 31, 2026 and March 31, 2025, there were no new loan modifications to borrowers experiencing financial difficulty.

The recorded investment of residential real estate loans for which formal foreclosure proceedings were in process according to applicable requirements of the local jurisdiction was $ 662 ,000 and $ 892 ,000 at March 31, 2026 and December 31, 2025, respectively.

The activity in the ACL - Loans is summarized below by primary segments for the periods indicated:

(Dollars in Thousands)

June 30, 2025 $ 2,545 $ 3,404 $ 892 $ 1,946 $ 705 $ 230 $ 9,722

December 31, 2025 $ 2,526 $ 3,153 $ 1,205 $ 2,562 $ 450 $ 220 $ 10,116

— — — — ( 147 ) — ( 147 )

— — — 36 70 — 106

Provision (Recovery) for Credit Losses - Loans 173 85 145 58 ( 172 ) 47 336

September 30, 2025 $ 2,727 $ 3,489 $ 1,037 $ 2,046 $ 570 $ 277 $ 10,146

(Recovery) Provision for Credit Losses - Loans ( 24 ) 80 112 9 49 2 228

March 31, 2026 $ 2,502 $ 3,233 $ 1,317 $ 2,607 $ 422 $ 222 $ 10,303

Residential Real

3 unchanged sentences

(Dollars in Thousands)

June 30, 2024 $ 2,844 $ 3,082 $ 744 $ 1,485 $ 1,131 $ 241 $ 9,527

December 31, 2024 $ 2,926 $ 3,103 $ 1,264 $ 1,584 $ 687 $ 241 $ 9,805

Charge-offs — — — — ( 135 ) — ( 135 )

1 unchanged sentence

(Recovery) Provision for Credit Losses - Loans ( 31 ) 25 ( 37 ) 121 ( 3 ) ( 7 ) 68

September 30, 2024 $ 2,618 $ 3,703 $ 693 $ 1,282 $ 923 $ 260 $ 9,479

March 31, 2025 $ 2,896 $ 3,128 $ 1,227 $ 1,748 $ 586 $ 234 $ 9,819

Loans that do not share risk characteristics are evaluated on an individual basis.

For loans that are individually evaluated and collateral dependent, financial loans where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL - Loans is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date.

As of March 31, 2026, there were $ 1.9 million of loans that required specific valuation allowances of $ 331 ,000.

This included residential real estate loans for $ 1.1 million with a valuation allowance of $ 94 ,000, a construction loan for $ 414 ,000 with a valuation allowance of $ 154 ,000, and commercial and industrial loans for $ 323 ,000 with a valuation allowance of $ 83 ,000.

As of December 31, 2025, there were $ 970,000 of loans that required specific valuation allowances of $ 165,000 .

This included residential real estate loans for $ 556,000 with a valuation allowance of $ 35,000 , and a construction real estate loan for $ 414,000 with a valuation allowance of $ 130,000 .

The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of the dates indicated.

March 31, 2026

Primary Type of Collateral

Business Assets

(Dollars in thousands)

Residential $ 2,801 $ — $ 2,801

Commercial 469 200 669

Construction 812 — 812

Commercial and Industrial — 623 623

Consumer — — —

Total Loans $ 4,082 $ 823 $ 4,905

December 31, 2025

— ( 19 ) — ( 5 ) ( 225 ) — ( 249 )

10 — — 128 183 — 321

(Recovery) Provision for Credit Losses - Loans ( 209 ) 405 ( 227 ) 339 ( 75 ) 36 269

September 30, 2025 $ 2,727 $ 3,489 $ 1,037 $ 2,046 $ 570 $ 277 $ 10,146

Primary Type of Collateral

(Dollars in thousands)

December 31, 2023 $ 3,129 $ 2,630 $ 639 $ 1,693 $ 1,367 $ 249 $ 9,707

— — — ( 12 ) ( 365 ) — ( 377 )

13 — — 132 109 — 254

(Recovery) Provision for Credit Losses - Loans ( 524 ) 1,073 54 ( 531 ) ( 188 ) 11 ( 105 )

September 30, 2024 $ 2,618 $ 3,703 $ 693 $ 1,282 $ 923 $ 260 $ 9,479

Loans that do not share risk characteristics are evaluated on an individual basis.

As of September 30, 2025, there were $ 6.0 million of loans that required specific valuation allowances of $ 220 ,000.

The composition of loans that required the specific valuation allowances were a non-owner occupied commercial real estate loan for $ 5.1 million with a valuation allowance of $ 53 ,000, a residential real estate loan for $ 558 ,000 with a valuation allowance of $ 37 ,000, and a construction loan for $ 415 ,000 with a valuation allowance of $ 130 ,000 as of September 30, 2025.

As of September 30, 2024, there were no loans that required a credit loss to be individually assigned.

The Company’s allowance for credit losses on unfunded commitments is recognized as a liability (accrued interest payable and other liabilities on the Consolidated Statement of Financial Condition), with adjustments to the reserve recognized in provision for credit losses - unfunded commitments on the Consolidated Statement of Income.

The Company’s activity in the allowance for credit losses on unfunded commitments for the periods indicated was as follows:

(in thousands) Allowance for Credit Losses

Balance at June 30, 2025

Recovery for Credit Losses - Unfunded Commitments ( 77 )

Balance at September 30, 2025 $ 649

(in thousands) Allowance for Credit Losses

Balance at June 30, 2024 $ 557

Recovery for Credit Losses - Unfunded Commitments ( 66 )

Balance at September 30, 2024 $ 491

(in thousands) Allowance for Credit Losses

Residential $ 2,326

Commercial 2,306

Construction 754

Commercial and Industrial —

Total Loans $ 5,386

The Company’s ACL on unfunded commitments is recognized as a liability (accrued interest payable and other liabilities on the Consolidated Statement of Financial Condition), with adjustments to the reserve recognized in provision for credit losses -

unfunded commitments on the Consolidated Statement of Income.

The Company’s activity in the ACL on unfunded commitments for the periods indicated was as follows:

Allowance for Credit Losses

(Dollars in Thousands)

Balance at December 31, 2025

Recovery for Credit Losses - Unfunded Commitments ( 42 )

Balance at September 30, 2025 $ 649

(in thousands) Allowance for Credit Losses

Provision for Credit Losses - Unfunded Commitments 13

Balance at March 31, 2026 $ 759

Allowance for Credit Losses

(Dollars in Thousands)

Balance at December 31, 2024 $ 691

Recovery for Credit Losses - Unfunded Commitments ( 108 )

Balance at September 30, 2024 $ 491

Balance at March 31, 2025 $ 583

Derivatives And Hedging Activities

15 unchanged sentences

These adjustments are included in Accrued Interest Payable and Other Liabilities and Accrued Interest Receivable and Other Assets on the Company's Consolidated Statement of Financial Condition.

September 30, 2025

March 31, 2026

Derivative Assets Derivative Liabilities

Notional Amount Fair Value Notional Amount Fair Value

(Dollars in Thousands)

Derivatives Designated as Hedging Instruments

9 unchanged sentences

Notional Amount Fair Value Notional Amount Fair Value

(Dollars in Thousands)

Derivatives Designated as Hedging Instruments

25 unchanged sentences

These instruments are classified as Level 2.

There were no transfers into or out of Level 3 during the nine months ended September 30, 2025 or year ended December 31, 2024.

There were no transfers into or out of Level 3 during the three months ended March 31, 2026 or year ended December 31, 2025.

The following table presents the financial assets measured at fair value on a recurring basis and reported on the Consolidated Statements of Financial Condition as of the dates indicated, by level within the fair value hierarchy:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(Dollars in Thousands)

2 unchanged sentences

Obligations of States and Political Subdivisions Level 2

35,753 36,224

Mortgage-Backed Securities - Government-Sponsored Enterprises Level 2

8 unchanged sentences

Mutual Funds Level 1

Other Level 1

Total Equity Securities 917 909

10 unchanged sentences

The table also presents the significant unobservable inputs used in the fair value measurements.

Financial Asset Fair Value Hierarchy September 30,

Financial Asset Fair Value Hierarchy March 31,

2026 Valuation

1 unchanged sentence

(Dollars in Thousands)

Individually Evaluated Loans Level 3 $ 5,820 Appraisal of Collateral (1)

Collateral-Dependent Loans Individually Assessed Level 3 $ 1,523 Appraisal of Collateral (1)

Appraisal Adjustments (2)

4 unchanged sentences

(Dollars in Thousands)

Individually Evaluated Loans Level 3 $ 5,244 Appraisal of Collateral (1)

Collateral-Dependent Loans Individually Assessed Level 3 $ 805 Appraisal of Collateral (1)

Appraisal Adjustments (2)

3 unchanged sentences

The range and weighted average of appraisal adjustments and liquidation expense are presented as a percent of the appraisal.

Individually evaluated loans are evaluated and valued at the time the loan is identified as impaired, at the lower of cost or fair value.

Collateral-dependent loans are evaluated and valued at the time the loan is identified as collateral-dependent, at the lower of cost or fair value.

Fair value is measured based on the value of the collateral securing the loans and is classified as Level 3 in the fair value hierarchy.

At September 30, 2025, the fair value of these loans consisted of loan balances of $ 6.0 million less specific valuation allowances of $ 220 ,000.

At March 31, 2026, the fair value of these loans consisted of loan balances of $ 1.9 million less specific valuation allowances of $ 331 ,000.

At December 31, 2025, the fair value of these loans consisted of loan balances of $ 1.0 million less specific valuation allowances of $ 165 ,000.

The fair value of mortgage servicing rights ("MSRs") is determined by calculating the present value of estimated future net servicing cash flows, considering expected mortgage loan prepayment rates, discount rates, servicing costs and other economic factors, which are determined based on current market conditions.

The expected rate of mortgage loan prepayments is the most significant factor driving the value of MSRs.

MSRs are considered impaired if the carrying value exceeds fair value.

Since the valuation model includes significant unobservable inputs as listed above, MSRs are classified as Level 3.

At September 30, 2025 and December 31, 2024, the Company did not have any MSRs that would be required to be remeasured.

Other real estate owned ("OREO") properties are evaluated at the time of acquisition and recorded at fair value, less estimated selling costs.

After acquisition, OREO is recorded at the lower of cost or fair value, less estimated selling costs.

The fair value of an OREO property is determined from a qualified independent appraisal and is classified as Level 3 in the fair value hierarchy.

As of September 30, 2025 and December 31, 2024, the Company did not have any OREO that would be required to be remeasured.

Financial instruments are defined as cash, evidence of an ownership in an entity, or a contract which creates an obligation or right to receive or deliver cash or another financial instrument from/to a second entity on potentially favorable or unfavorable terms.

5 unchanged sentences

The following table presents the estimated fair values of the Company’s financial instruments at the dates indicated.

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(Dollars in Thousands)

7 unchanged sentences

295,452 295,452 279,895 279,895

Loans Held for Sale Level 2 107 107 900 900

1,147,534 1,113,261 1,152,144 1,119,213

18 unchanged sentences

The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby and performance letters of credit written is represented by the contractual amount of those instruments.

those instruments.

The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

5 unchanged sentences

The following table presents the unused and available credit balances of financial instruments whose contracts represent credit risk at the dates indicated:

September 30,

2026 December 31,

23 unchanged sentences

For secured letters of credit, the collateral is typically Company deposit instruments or customer business assets.

The Company recorded no liability associated with standby letters of credit as of September 30, 2025 and December 31, 2024.

The Company recorded no liability associated with standby letters of credit as of March 31, 2026 and December 31, 2025.

The Company evaluates all contracts at commencement to determine if a lease is present.

5 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

(Dollars in Thousands)

2 unchanged sentences

Total Lease Expense $ 159 $ 129

September 30,

2026 December 31,

4 unchanged sentences

Weighted Average Discount Rate 4.18 % 4.25 %

September 30,

March 31, 2026

(Dollars in Thousands)

9 unchanged sentences

Lease Liabilities $ 2,986

There were no new lease agreements which commenced during the nine months ended September 30, 2025.

During the nine months ended September 30, 2024, the Bank completed the sale and leaseback of a branch office located in Rostraver, Pennsylvania, for a sales price of $ 1.1 million.

As a result, the Bank recorded a pre-tax net gain of $ 274,000 .

Concurrently, the Bank entered into a lease agreement with the purchaser under which the Bank leased the property for an initial term of 20 years with specified renewal options.

The lease agreement includes a 2.0 % annual rent escalation during the initial term and renewal terms, if exercised.

The Bank recorded an operating lease ROU asset and corresponding lease liability of $ 1.0 million.

Also during the nine months ended September 30, 2024, the Bank entered into a lease agreement under which the Bank leased retail property located in Uniontown, Pennsylvania.

The lease agreement is for an initial term of five years with specific renewal options.

During the three months ended March 31, 2026, the Bank entered into a lease agreement under which the Bank leased office space located in Canonsburg, Pennsylvania.

The lease agreement is for an initial term of three years with specific renewal options.

The lease agreement includes a 2.5 % annual rent escalation during the initial term and renewal terms, if exercised.

3 unchanged sentences

The Company's President and Chief Executive Officer functions as its CODM.

At September 30, 2025 and December 31, 2024, the Company had one reportable segment, community banking services, upon which the CODM makes decisions regarding how to allocate resources and assess performance.

At March 31, 2026 and December 31, 2025, the Company had one reportable segment, community banking services, upon which the CODM makes decisions regarding how to allocate resources and assess performance.

Individual bank branches offer a group of similar services, including commercial, real estate and consumer loans, time deposits, checking and savings accounts all with similar operating and economic characteristics.

4 unchanged sentences

Stock Based Compensation

The following table presents stock option information for the period indicated.

The following table presents stock option information for the period and at the dates indicated:

Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual

3 unchanged sentences

Forfeited — —

Outstanding Options at September 30, 2025 262,315 $ 23.90 5.6

Exercisable Options at September 30, 2025 145,395 $ 24.74 3.9

Outstanding Options at March 31, 2026 209,992 $ 24.10 5.8

Exercisable Options at March 31, 2026 130,633 $ 24.98 5.0

Number of Shares Weighted Average Exercise Price Weighted Average Remaining Service Period in Years

Nonvested Options at September 30, 2025 116,920 $ 22.85 7.7

Nonvested Options at March 31, 2026 79,359 $ 22.65 7.3

The following table presents restricted stock award information for the period indicated:

4 unchanged sentences

Forfeited — —

Nonvested Restricted Stock at September 30, 2025 72,091 $ 25.39 3.1

Nonvested Restricted Stock at March 31, 2026 79,721 $ 30.08 3.4

The Company recognizes expense over a five-year vesting period for the restricted stock awards and stock options.

Stock-based compensation expense related to restricted stock awards and stock options was $ 195,000 and $ 215,000 for the three months ended September 30, 2025 and 2024.

Stock-based compensation expense was $ 610,000 and $ 591,000 for the nine months ended September 30, 2025 and 2024.

As of September 30, 2025 and December 31, 2024, total unrecognized compensation expense was $ 443,000 and $ 701 ,000, respectively, related to stock options, and $ 1.5 million and $ 1.2 million, respectively, related to restricted stock awards.

Intrinsic value represents the amount by which the fair value of the underlying stock at September 30, 2025 and December 31, 2024 exceeds the exercise price of the stock options.

The intrinsic value of stock options was $ 2.4 million and $ 1.9 million at September 30, 2025 and December 31, 2024, respectively.

At September 30, 2025 and December 31, 2024, there were 262,265 and 287,500 shares of common stock available and reserved under the 2024 Plan to be issued as restricted stock awards or units based on the terms of the Plan.

At September 30, 2025, 25,235 shares have been granted under the 2024 Plan.

Stock-based compensation expense related to restricted stock awards and stock options was $ 212,000 and $ 223,000 for the three months ended March 31, 2026 and 2025.

As of March 31, 2026 and December 31, 2025, total unrecognized compensation expense was $ 350,000 and $ 397 ,000, respectively, related to stock options, and $ 2.3 million and $ 1.3 million, respectively, related to restricted stock awards.

Intrinsic value represents the amount by which the fair value of the underlying stock at March 31, 2026 and December 31, 2025 exceeds the exercise price of the stock options.

The intrinsic value of stock options was $ 2.1 million and $ 2.4 million at March 31, 2026 and December 31, 2025, respectively.

At March 31, 2026 and December 31, 2025, there were 231,840 and 262,265 shares of common stock available and reserved under the 2024 Plan to be issued as restricted stock awards or units based on the terms of the Plan.

At March 31, 2026, 55,660 shares have been granted under the 2024 Plan.

The 2021 Plan shall remain in effect as long as any awards are outstanding, but as a result of the approval of the 2024 Plan, no more awards can be granted under the 2021 Plan.

Variable Interest Entities

The Company has an investment interest in the following non-consolidated entity that meets the definition of a variable interest entity ("VIE").

The Company has investment interests in the following non-consolidated entities that meets the definition of variable interest entities ("VIEs").

The Company's funding requirements are limited to its invested capital and any additional unfunded commitments for future equity contributions.

The Company's maximum exposure to loss as a result of its involvement is limited to the carrying amounts of the investments, including the unfunded commitments.

The investments in these partnerships are included in Accrued Interest

Receivable and Other Assets and unfunded commitments are included in Accrued Interest Payable and Other Liabilities on the Consolidated Statements of Financial Condition.

The Company currently expects to fund these commitments by the end of 2035.

The Company accounts for qualifying investments under the proportional amortization method.

Under this method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance as a component of income tax expense.

Low Income Housing Tax Credit Investments

3 unchanged sentences

The Company is therefore not the primary beneficiary of the LIHTC partnership and accordingly, does not consolidate this VIE.

The Company's funding requirements are limited to its invested capital and any additional unfunded commitments for future equity contributions.

The Company's maximum exposure to loss as a result of its involvement is limited to the carrying amounts of the investments, including the unfunded commitments.

The investment in the LIHTC partnership is included in Accrued Interest Receivable and Other Assets and unfunded commitments are included in Accrued Interest Payable and Other Liabilities on the Consolidated Statements of Financial Condition.

The Company currently expects to fund these commitments by the end of 2035.

The following table presents the balances of the Company's LIHTC investments and related unfunded commitments:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(Dollars in thousands)

3 unchanged sentences

Unfunded Commitments $ 3,841 $ 4,038

The Company accounts for qualifying LIHTC investments under the proportional amortization method.

The following table presents other information related to the Company's low income housing tax credit investments:

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Historical Tax Credit Investments

The Company makes equity investments in an entity that sponsors rehabilitation projects that qualify for the Historical Tax Credit ("HTC") program pursuant to Section 47 of the Internal Revenue Code.

The purpose of this investment is to provide an investment return, primarily through the realization of tax benefits.

The HTC partnership is managed by unrelated general partners that have the power to direct the activities which most significantly affect the performance of the partnership.

The Company is therefore not the primary beneficiary of the HTC partnership and accordingly, does not consolidate this VIE.

The following table presents the balances of the Company's HTC investments and related unfunded commitments:

March 31, 2026 December 31, 2025

(Dollars in thousands)

Historical Tax Credit Investments $ 772 $ —

Amortization — —

Net Historical Tax Credit Investments $ 772 $ —

Unfunded Commitments $ 555 $ —

The following table presents other information related to the Company's tax credit investments:

Three Months Ended March 31,

(dollars in thousands)

Tax Credits and Other Tax Benefits Recognized:

LIHTC $ 91 $ 50

Proportional Amortization Expense Included in Provision for Income Taxes:

LIHTC $ 80 $ 39

Subsequent Events

1 unchanged sentence

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

What changed 10-Q

Item 1. Financial Statements