What changed in this filing

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Item 1. Financial Statements

2026-08-07 compared with 2026-05-12 · 163 added, 91 removed, 859 unchanged (23% of the section changed)

1 unchanged sentence

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited) March 31,

(Unaudited) June 30,

2026 December 31,

7 unchanged sentences

Total Securities 325,554 279,895

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

Loans, Net of Allowance for Credit Losses of $ 10,451 and $ 10,116 at June 30, 2026 and December 31, 2025, Respectively

1,169,270 1,152,144

10 unchanged sentences

Time Deposits 209,847 213,953

Brokered Deposits 33,633 98,500

Total Deposits 1,380,060 1,339,805

Short-Term Borrowings

Other Borrowings

5 unchanged sentences

Common Stock, $ 0.4167 Par Value;

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.

35,000,000 Shares Authorized, 5,877,305 Shares Issued and 5,080,438 Shares Outstanding at June 30, 2026, with 5,835,325 and 5,036,509 Shares Issued and Outstanding at December 31, 2025.

Capital Surplus

2 unchanged sentences

95,963 90,625

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

Treasury Stock, at Cost ( 796,867 and 798,816 Shares at June 30, 2026 and December 31, 2025, Respectively)

( 19,791 ) ( 19,752 )

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

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

13 unchanged sentences

NET INTEREST AND DIVIDEND INCOME 14,534 12,540 28,408 23,850

Provision for Credit Losses - Loans 228 68

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

Provision (Recovery) for Credit Losses - Loans 157 ( 136 ) 385 ( 68 )

(Recovery) Provision for Credit Losses - Unfunded Commitments ( 140 ) 144 ( 126 ) 36

NET INTEREST AND DIVIDEND INCOME AFTER NET PROVISION (RECOVERY) FOR CREDIT LOSSES 14,517 12,532 28,149 23,882

13,631 11,351

NONINTEREST INCOME

Service Fees 582 559 1,136 1,021

Other Commissions 76 64

Commissions 75 67 152 131

Net Gain on Sale of Loans 45 26 56 49

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

Net Loss on Investment Securities ( 18 ) — ( 10 ) ( 69 )

Net Gain on Purchased Tax Credits 10 4 21 7

12 unchanged sentences

Advertising 115 124 258 242

Other Real Estate Owned — 1 — 2

Other Expense 959 941 1,801 1,706

1 unchanged sentence

Income Before Income Tax Expense

5,099 4,715 9,680 7,051

Income Tax Expense 798 766 1,512 1,193

9 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

(Dollars in Thousands)

Net Income $ 4,301 $ 3,949 $ 8,168 $ 5,858

Other Comprehensive (Loss) Income:

Other Comprehensive Income (Loss):

Change in Unrealized Loss on Available-for-Sale Debt Securities 7 1,339 ( 1,902 ) 3,711

Income Tax Effect ( 1 ) ( 285 ) 405 ( 792 )

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

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

6 1,054 ( 1,497 ) 2,919

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

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

Three Months Ended June 30, 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)

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

Comprehensive Income:

Net Income — — — 4,301 — — 4,301

Other Comprehensive Income — — — — — 6 6

Stock-Based Compensation Expense — — 262 — — — 262

Exercise of Stock Options 1,108 — 27 — 183 — 210

Treasury stock purchased, at cost ( 773 shares)

— — 13 — ( 27 ) — ( 14 )

Dividends Paid ($ 0.28 Per Share)

— — — ( 1,419 ) — — ( 1,419 )

June 30, 2026 5,877,305 $ 2,449 $ 88,385 $ 95,963 $ ( 19,791 ) $ ( 4,909 ) $ 162,097

Three Months Ended June 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)

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

Comprehensive Income:

Net Income — — — 3,949 — — 3,949

Other Comprehensive Income — — — — — 1,054 1,054

Stock-Based Compensation Expense — — 193 — — — 193

Exercise of Stock Options 3,400 1 84 — 487 — 572

Treasury Stock Purchased, at cost ( 151,893 shares)

— — ( 47 ) — ( 4,393 ) — ( 4,440 )

Dividends Paid ($ 0.25 Per Share)

— — — ( 1,255 ) — — ( 1,255 )

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

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

Six Months Ended June 30, 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)

December 31, 2025 5,835,325 $ 2,432 $ 87,644 $ 90,625 $ ( 19,752 ) $ ( 3,412 ) $ 157,537

9 unchanged sentences

— — — ( 2,830 ) — — ( 2,830 )

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

June 30, 2026 5,877,305 $ 2,449 $ 88,385 $ 95,963 $ ( 19,791 ) $ ( 4,909 ) $ 162,097

Six Months Ended June 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)

11 unchanged sentences

— — — ( 2,536 ) — — ( 2,536 )

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

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

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

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended March 31, 2026 2025

Six Months Ended June 30, 2026 2025

(Dollars in Thousands)

4 unchanged sentences

Depreciation and Amortization 1,131 894

Provision for Credit Losses - Loans 228 68

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

Provision (Recovery) for Credit Losses - Loans 385 ( 68 )

(Recovery) Provision for Credit Losses - Unfunded Commitments ( 126 ) 36

Net Loss on Sale of Equity Securities

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

Net Unrealized Loss Recognized on Equity Securities 10 56

Gain on Purchased Tax Credits ( 21 ) ( 7 )

4 unchanged sentences

Noncash Expense for Stock-Based Compensation 474 416

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

Decrease (Increase) in Accrued Interest Receivable 64 ( 233 )

(Benefit) Provision in Deferred Income Tax ( 405 ) 843

Increase in Taxes Payable 644 780

Payments on Operating Leases —

Decrease in Accrued Interest Payable ( 455 ) ( 779 )

5 unchanged sentences

Purchases of Securities ( 84,874 ) ( 22,637 )

Proceeds from Sale of Debt Securities

Net Decrease in Loans 4,382 7,466

Proceeds from Sale of Equity Securities

Net Increase in Loans ( 17,511 ) ( 8,968 )

Purchase of Premises and Equipment ( 268 ) ( 358 )

Investment in Low Income Housing Tax Credit

( 1,080 ) ( 354 )

Investment in Historical Tax Credit ( 217 ) —

Purchase of Restricted Equity Securities ( 6,618 ) —

Redemption of Restricted Equity Securities 3,989 47

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

Net Cash Used in Investing Activities ( 68,716 ) ( 10,931 )

FINANCING ACTIVITIES

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

Net Increase in Deposits 40,255 25,915

Net Increase in Short-Term Borrowings 65,000 —

Principal Payments on Other Borrowed Funds

Proceeds From Other Borrowed Funds — 20,000

Cash Dividends Paid ( 2,830 ) ( 2,536 )

1 unchanged sentence

Exercise of Stock Options 551 1,146

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

Net Cash Provided by Financing Activities 102,670 17,706

Increase in Cash and Due from Banks 44,397 14,934

3 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended March 31, 2026 2025

Six Months Ended June 30, 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

Syndicated Loans Purchased and Sold Not Settled, net — 9,000

28 unchanged sentences

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 March 31, 2026 and December 31, 2025, 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 June 30, 2026 and December 31, 2025, the Company had one reportable segment, community banking services.

Critical Accounting Policies;

57 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 $ 4.43 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.

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 $ 4.3 million at June 30, 2026 and $ 4.4 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 $ 2.1 million at June 30, 2026 and $ 2.0 million at December 31, 2025 and is excluded from the estimate of credit losses.

Recent Accounting Standards

43 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

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

8 unchanged sentences

$ 0.85 $ 0.79 $ 1.61 $ 1.15

0.80 0.74 1.54 1.09

The dilutive effect on weighted average diluted common shares outstanding is the result of outstanding stock options and nonvested restricted stock.

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Stock Options — 28,090 — 23,290

1 unchanged sentence

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

March 31, 2026

June 30, 2026

(Dollars in Thousands)

30 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:

March 31, 2026

June 30, 2026

Less than 12 months

19 unchanged sentences

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 March 31, 2026 or December 31, 2025, represents a credit related impairment.

For debt securities, the Company does not believe that any individual unrealized loss as of June 30, 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 March 31, 2026 and December 31, 2025 relate principally to changes in market interest rates subsequent to the acquisition of the specific securities.

The unrealized losses on securities at June 30, 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 $ 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.

Total securities available to be pledged have a fair value of $ 301.9 million at June 30, 2026 and $ 256.7 million at December 31, 2025 of which securities with a fair value of $ 180.5 million and $ 172.6 million at June 30, 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.

March 31, 2026

June 30, 2026

(Dollars in Thousands)

6 unchanged sentences

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.

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

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

(Dollars in thousands)

Equity Securities

Net Unrealized Gain (Loss) Recognized on Securities Held

Net Unrealized Loss Recognized on Securities Held $ ( 18 ) $ — $ ( 10 ) $ ( 56 )

Net Realized Loss Recognized on Securities Sold — — — ( 13 )

Net Gain (Loss) on Equity Securities

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

Net Loss on Equity Securities $ ( 18 ) $ — $ ( 10 ) $ ( 69 )

Net Loss on Investment Securities $ ( 18 ) $ — $ ( 10 ) $ ( 69 )

Loans And Allowance For Credit Losses

20 unchanged sentences

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(Dollars in Thousands)

9 unchanged sentences

$ 1,169,270 $ 1,152,144

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.

Included in total loans above are unamortized net deferred loan fees of $ 607 ,000 and $ 830 ,000 at June 30, 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, 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 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 six months ended June 30, 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)

Classified Loans by Origination Year (as of June 30, 2026)

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

74 unchanged sentences

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:

March 31, 2026

June 30, 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 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.

Additional interest income that would have been recorded if the loans that were nonaccrual at June 30, 2026 were current was $ 25,000 and $ 53,000 for the three and six months ended June 30, 2026, respectively, and $ 29,000 and $ 81,000 for the three and six months ended June 30, 2025, respectively.

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.

March 31, 2026

June 30, 2026

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

18 unchanged sentences

Total Nonperforming Assets

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

No interest income on nonaccrual loans was recognized during the three and six months ended June 30, 2026 and June 30, 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.

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.

For the three and six months ended June 30, 2026 and June 30, 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 $ 587 ,000 and $ 892 ,000 at June 30, 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)

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

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

— — — — ( 52 ) — ( 52 )

— — — — 43 — 43

(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

Provision (Recovery) for Credit Losses - Loans 74 ( 36 ) 629 ( 415 ) ( 68 ) ( 27 ) 157

June 30, 2026 $ 2,576 $ 3,197 $ 1,946 $ 2,192 $ 345 $ 195 $ 10,451

Residential Real

3 unchanged sentences

(Dollars in Thousands)

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

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

Charge-offs — ( 19 ) — ( 5 ) ( 47 ) — ( 71 )

1 unchanged sentence

(Recovery) Provision for Credit Losses - Loans ( 351 ) 295 ( 335 ) 160 99 ( 4 ) ( 136 )

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

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

(Dollars in thousands)

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

— — — — ( 199 ) — ( 199 )

— — — 36 113 — 149

Provision (Recovery) for Credit Losses - Loans 50 44 741 ( 406 ) ( 19 ) ( 25 ) 385

June 30, 2026 $ 2,576 $ 3,197 $ 1,946 $ 2,192 $ 345 $ 195 $ 10,451

(Dollars in thousands)

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

— ( 19 ) — ( 5 ) ( 183 ) — ( 207 )

1 — — 87 104 — 192

(Recovery) Provision for Credit Losses - Loans ( 382 ) 320 ( 372 ) 280 97 ( 11 ) ( 68 )

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

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.

As of June 30, 2026, there were $ 1.8 million of loans that required specific valuation allowances of $ 328 ,000.

This included residential real estate loans for $ 1.1 million with a valuation allowance of $ 106 ,000, a construction loan for $ 414 ,000 with a valuation allowance of $ 154 ,000, and commercial and industrial loans for $ 308 ,000 with a valuation allowance of $ 68 ,000.

2 unchanged sentences

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

March 31, 2026

June 30, 2026

Primary Type of Collateral

5 unchanged sentences

Commercial and Industrial — 608 608

Consumer — — —

Total Loans $ 4,051 $ 808 $ 4,859

5 unchanged sentences

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:

1 unchanged sentence

(Dollars in Thousands)

Balance at December 31, 2025

Provision for Credit Losses - Unfunded Commitments 13

Balance at March 31, 2026

Recovery for Credit Losses - Unfunded Commitments ( 140 )

Balance at June 30, 2026 $ 620

Allowance for Credit Losses

(Dollars in Thousands)

Balance at March 31, 2025 $ 583

Provision for Credit Losses - Unfunded Commitments 144

Balance at June 30, 2025 $ 727

(in thousands) Allowance for Credit Losses

Balance at December 31, 2025 $ 746

Recovery for Credit Losses - Unfunded Commitments ( 126 )

Balance at March 31, 2025 $ 583

Balance at June 30, 2026 $ 620

(in thousands) Allowance for Credit Losses

Balance at December 31, 2024 $ 691

Provision for Credit Losses - Unfunded Commitments 36

Balance at June 30, 2025 $ 727

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.

March 31, 2026

June 30, 2026

Derivative Assets Derivative Liabilities

40 unchanged sentences

These instruments are classified as Level 2.

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

There were no transfers into or out of Level 3 during the six months ended June 30, 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:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(Dollars in Thousands)

25 unchanged sentences

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

Financial Asset Fair Value Hierarchy March 31,

Financial Asset Fair Value Hierarchy June 30,

2026 Valuation

16 unchanged sentences

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 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.

At June 30, 2026, the fair value of these loans consisted of loan balances of $ 1.8 million less specific valuation allowances of $ 328 ,000.

At December 31, 2025, the fair value of these loans consisted of loan balances of $ 970 ,000 less specific valuation allowances of $ 165 ,000.

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.

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(Dollars in Thousands)

16 unchanged sentences

1,380,060 1,379,459 1,339,805 1,339,286

Short-Term Borrowings Level 2

65,000 65,000 — —

Other Borrowed Funds

5 unchanged sentences

Commitments And Contingent Liabilities

Periodically, there have been various claims and lawsuits against the Company, such as claims to enforce liens, claims seeking damages for improper collection procedures or misrepresentations, condemnation proceedings on properties in which the Company holds security interests, claims involving the making and servicing of real property loans and other issues incident to our business.

The Company is not a party to any other pending legal proceedings that would have a material adverse effect on its consolidated financial condition, results of operations or cash flows.

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business primarily to meet the financing needs of its customers.

2 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.

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

30 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 March 31, 2026 and December 31, 2025.

The Company recorded no liability associated with standby letters of credit as of June 30, 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

June 30, Six Months Ended

2026 2025 2026 2025

(Dollars in Thousands)

8 unchanged sentences

Weighted Average Discount Rate 4.20 % 4.25 %

March 31, 2026

June 30, 2026

(Dollars in Thousands)

9 unchanged sentences

Lease Liabilities $ 2,916

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.

During the six months ended June 30, 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.

4 unchanged sentences

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

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.

At June 30, 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.

10 unchanged sentences

Forfeited — —

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

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

Outstanding Options at June 30, 2026 200,964 $ 24.13 5.7

Exercisable Options at June 30, 2026 122,405 $ 25.08 4.9

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

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

Nonvested Options at June 30, 2026 78,559 $ 22.66 7.0

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

4 unchanged sentences

Forfeited — —

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

Nonvested Restricted Stock at June 30, 2026 79,521 $ 30.10 3.2

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 $ 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.

Stock-based compensation expense related to restricted stock awards and stock options was $ 262,000 and $ 193,000 for the three months ended June 30, 2026 and 2025, respectively.

Stock-based compensation was $ 474,000 and $ 416,000 for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026 and December 31, 2025, total unrecognized compensation expense was $ 305,000 and $ 397 ,000, respectively, related to stock options, and $ 2.1 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 June 30, 2026 and December 31, 2025 exceeds the exercise price of the stock options.

The intrinsic value of stock options was $ 2.8 million and $ 2.4 million at June 30, 2026 and December 31, 2025, respectively.

At June 30, 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 June 30, 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 investment interests in the following non-consolidated entities that meets the definition of variable interest entities ("VIEs").

The Company has investment interests in the following non-consolidated entities that meet 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.

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(Dollars in thousands)

9 unchanged sentences

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(Dollars in thousands)

4 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

(dollars in thousands)

1 unchanged sentence

LIHTC $ 118 $ 25 $ 209 $ 75

HTC $ 41 $ — $ 41 $ —

Proportional Amortization Expense Included in Provision for Income Taxes:

LIHTC $ 89 $ 22 $ 169 $ 61

HTC $ 56 $ — $ 56 $ —

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