2 unchanged sentences
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
−Removed: Period Ended March 31, 2026
+Added: Period Ended June 30, 2026
The following discussion analyzes the consolidated financial condition of Community Bancorp.
−Removed: and its wholly owned subsidiary, Community National Bank, as of March 31, 2026 and December 31, 2025, and its consolidated results of operations for the three-month interim period and one year period presented.
+Added: and its wholly owned subsidiary, Community National Bank, as of June 30, 2026 and December 31, 2025, and its consolidated results of operations for the three-month interim period and six-month interim periods presented.
The Company is considered a “smaller reporting company” and a “non-accelerated filer” under the disclosure rules of the SEC.
46 unchanged sentences
However, that information should be considered supplemental in nature and not as a substitute for related financial information prepared in accordance with GAAP.
−Removed: The Company’s consolidated assets as of March 31, 2026, were $1.24 billion compared to $1.29 billion as of December 31, 2025, a decrease of 4.1%.
−Removed: Changes in the asset base included an increase in loans of $18.6 million, which was more than offset by a decrease in overnight deposits of $61.2 million, or 52.6%.
+Added: The Company’s consolidated assets as of June 30, 2026, were $1.17 billion compared to $1.29 billion as of December 31, 2025, a decrease of 8.9%.
+Added: Changes in the asset base included an increase in loans of $5.2 million, which was more than offset by a decrease in federal funds sold and overnight deposits of $110.4 million, or 95.0%.
The increase in the loan portfolio was primarily attributable to increases of $15.9 million in residential first and Jr.
−Removed: lien loans, $6.0 million in CRE loans, $2.0 million in municipal loans and $7.0 million in C&I loans.
−Removed: While cash funded the increase in the loan portfolio, the decrease in overnight deposits reflects typical and expected first quarter deposit runoff, particularly in government agency and non arbitrage accounts.
−Removed: Total deposits as of March 31, 2026, were $1.02 billion compared to $1.07 billion as of December 31, 2025, a decrease of $52.9 million, or 4.9%.
+Added: lien loans due to a new residential loan purchase program, and $10.3 million in C&I loans, offset however by a cyclical decrease of $17.5 million in municipal loans consistent with the annual municipal funding cycle, and decreases of $1.8 million in consumer and commercial purchased loans and $1.6 million in CRE loans.
+Added: While cash funded the increase in the loan portfolio, the decrease in federal funds and overnight deposits reflects typical and expected second quarter deposit runoff, particularly in government agency and non-arbitrage accounts.
+Added: Total deposits as of June 30, 2026, were $982 million compared to $1.07 billion as of December 31, 2025, a decrease of $89.0 million, or 8.3%.
Year to date, time deposits increased $4.1 million, or 1.8% and savings accounts increased $3.5 million, or 2.5%, while demand and interest-bearing transaction accounts collectively decreased $35.2 million, or 6.8%, and money market funds decreased $61.5 million, or 32.9%.
−Removed: Borrowed funds remained level from December 31, 2025.
−Removed: Total interest income increased $1.5 million, or 10.3%, for the first quarter of 2026, compared to the same period in 2025.
−Removed: The growth in the volume of the loan portfolio and origination of loans at higher interest rates, as well as adjustable-rate loans repricing to current market rates, helped to support the increase in interest income in the comparison period.
−Removed: Total interest expense decreased $7 thousand, or 0.1%, for the first quarter of 2026, compared to the same period in 2025.
−Removed: The year-over-year increase of $15 thousand, or 4%, in interest expense on the Company’s borrowed funds was more than offset by a decrease of $21 thousand, or 8.5% in interest expense on junior subordinated debentures due to a decrease in the floating rate associated with these funds.
+Added: A decrease in deposit balances is typical in the first and second quarters of the calendar year, due in part to the timing of customers income tax obligations and the spend down of deposited funds by Vermont municipal customers prior to their June 30 fiscal year end.
+Added: Borrowed funds decreased $25 million from December 31, 2025.
+Added: Total interest income increased $1.2 million, or 8.0%, for the second quarter of 2026, and increased $2.7 million, or 9.2%, for the first six months of 2026, compared to the respective periods in 2025.
+Added: The growth in the volume of the loan portfolio and origination of loans at higher interest rates, as well as adjustable-rate loans repricing to current market rates, helped to support the increase in interest income between periods.
+Added: Total interest expense decreased $161,274, or 3.3%, for the second quarter of 2026, and decreased $168,505, or 1.7%, for the first six months of 2026, compared to the respective periods in 2025.
+Added: Contributing to the lower interest expense was the year-over-year decrease of $127,786, or 15.7%, in interest expense on the Company’s borrowed funds, which was mainly due to the payoff of long-term borrowings during the second quarter of 2026.
Please refer to the interest rate sensitivity discussion in the Interest Rate Risk and Asset and Liability Management section of this Management’s Discussion and Analysis for more information on the impact that the actions of the FRB’s FOMC in regulating interest rates, and changes in the yield curve, could have on our net interest income.
−Removed: The credit loss expense for the first quarter of 2026 was $391,505 compared to $325,054 for the same period in 2025, resulting in an increase of $66,451, or 20.4%, between periods.
+Added: The credit loss expense for the second quarter of 2026 was $720,967 compared to $407,046 for the same period in 2025, and $1.1 million for the first six months of 2026 compared to $732,100 for the same period in 2025, resulting in increases between periods of $313,921, or 77.1% and $380,373, or 52.0%, respectively.
+Added: The increase was partially due to an additional $127,000 added to ensure adequate coverage for a commercial loan relationship in individually analyzed.
In determining the current period credit loss expense management considers a number of factors, including loan growth and changes in balances of the loan categories within the current portfolio, changes in forecasts, historical loss rates and various qualitative factors, which management reviews and adjusts, as appropriate, in its ACL calculation to better reflect expected credit losses in the loan portfolio.
Please refer to Note 5 of the unaudited consolidated financial statements as well as the ACL and credit loss expense discussion in the Credit Risk section of this MD&A.
−Removed: Consolidated net income for the first quarter of 2026 increased $844 thousand, or 23.9%, to $4.4 million compared to $3.5 million for the same period in 2025, primarily due to the increase in net interest income of $1.4 million after credit loss expense.
+Added: Consolidated net income for the second quarter of 2026 increased $628,008, or 15.5%, to $4.7 million compared to $4.1 million for the same quarter of 2025, and increased $1.5 million, or 19.4%, to $9.1 million for the first six months of 2026 compared to $7.6 million for the same period in 2025.
+Added: The increases after credit loss expense in net interest income after credit loss expense of $1.0 million for the second quarter of 2026 and $2.5 million for the first six months of 2026, compared to the respective periods in 2025, were contributing factors to the increases in net income.
This change, along with significant changes in non-interest income and non-interest expense, are discussed in the appropriate sections of this Management’s Discussion and Analysis.
−Removed: Equity capital increased to $116.8 million, with a book value per share of $20.88 as of March 31, 2026, compared to $113.7 million and a book value per share of $20.36 as of December 31, 2025.
−Removed: Please refer to the section of this Management’s Discussion and Analysis titled “LIQUIDITY AND CAPITAL RESOURCES” for a discussion in of the changes in the Company’s equity capital for the three months ended March 31, 2026.
−Removed: On March 18, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.25 per common share, payable on May 1, 2026, to shareholders of record on April 26, 2026 (as adjusted on April 15, 2026).
−Removed: As described in more detail below under “LIQUIDITY AND CAPITAL RESOURCES” as of March 31, 2026, the Company’s capital ratios, and those of our subsidiary Bank, were in excess of applicable regulatory requirements.
−Removed: Effective July 31, 2025, the Company’s affiliate, CFS Partners, redeemed the one third limited liability company membership and distributional interests of Guaranty Bancorp, Inc.
−Removed: (“Guaranty”), immediately prior to consummation of Guaranty’s merger with and into Bar Harbor Bankshares.
−Removed: Under the terms of the redemption agreement, beginning March 1, 2025, Guaranty Bancorp agreed to forego its distributional interest in CFS Partners through the closing date of the redemption.
−Removed: Accordingly, beginning March 1, 2025, the Company’s share of the profit and loss from the operations of CFS Partners’ sole subsidiary, CFSG, increased from one-third to 50%, and effective on July 31, 2025, the Company’s non-economic membership (governance) interest in CFS Partners likewise increased to 50%.
−Removed: The Company does not have a controlling interest in CFS Partners and accounts for its investment using the equity method.
+Added: Equity capital increased to $120.1 million, with a book value per share of $21.58 as of June 30, 2026, compared to $113.7 million and a book value per share of $20.36 as of December 31, 2025.
+Added: Please refer to the section of this Management’s Discussion and Analysis titled “LIQUIDITY AND CAPITAL RESOURCES” for a discussion in of the changes in the Company’s equity capital for the six months ended June 30, 2026.
+Added: On June 17, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.25 per common share, payable on August 1, 2026, to shareholders of record on July 15, 2026.
+Added: As described in more detail below under “LIQUIDITY AND CAPITAL RESOURCES” as of June 30, 2026, the Company’s capital ratios, and those of our subsidiary Bank, were in excess of applicable regulatory requirements.
CRITICAL ACCOUNTING POLICIES
8 unchanged sentences
These policies are described in the Company’s 2025 Annual Report on Form 10-K in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies” and in Note 1 (Significant Accounting Policies) to the audited consolidated financial statements.
−Removed: Aside from adjustments in qualitative factors and other economic indicators in the calculation of the ACL, there were no material changes during the first three months of 2026 in the Company’s critical accounting policies.
+Added: Aside from adjustments in qualitative factors and other economic indicators in the calculation of the ACL, there were no material changes during the first six months of 2026 in the Company’s critical accounting policies.
ACL - Management believes that the calculation of the ACL is a critical accounting policy that requires the most significant judgments and estimates used in the preparation of its consolidated financial statements.
9 unchanged sentences
RESULTS OF OPERATIONS
−Removed: The Company’s net income for the first quarter of 2026 was $4.4 million, or $0.78 per common share, compared to $3.5 million, or $0.62 per common share, for the same period in 2025.
−Removed: Core earnings (NII) before credit loss expense were $10.9 million for the first three months of 2026, compared to $9.4 million for the same period in 2025.
−Removed: Interest and fees on loans, the major component of interest income, increased $1.2 million, or 9.2% for the first quarter of 2026 compared to the same period in 2025.
−Removed: Interest paid on deposits, which is the major component of total interest expense, decreased $9 thousand, or 0.2% for the first quarter of 2026 compared to the same period in 2025, driven primarily by adjustments to relationship pricing on deposits.
−Removed: Interest on borrowed funds increased $15 thousand, or 4.0%, for the first quarter of 2026 compared to the same quarter of 2025, due to an increase in the average volume of borrowed funds between periods despite a decrease in the average rate paid.
+Added: The Company’s net income for the second quarter of 2026 was $4.7 million, or $0.84 per common share, compared to $4.1 million, or $0.72 per common share for the same quarter of 2025, and for the first six months of 2026 was $9.1 million, or $1.62 per common share, compared to $7.6 million, or $1.34 per common share, for the same period in 2025.
+Added: Core earnings (NII) were $11.2 million for the second quarter of 2026, compared to $9.9 million for the same period of 2025 and $22.2 million for the first six months of 2026, compared to $19.3 million for the same period in 2025.
+Added: Interest and fees on loans, the major component of interest income, increased $1.1 million, or 7.7% for the second quarter of 2026 compared to the same period of 2025 and increased $2.3 million, or 8.5% for the first six months of 2026 compared to the same period in 2025.
+Added: Interest paid on deposits, which is the major component of total interest expense, increased $38 thousand, or 0.9% for the second quarter of 2026 and increased $28 thousand, or 0.4% for the first six months of 2026, compared to the respective periods in 2025, driven primarily by increased deposit balances.
+Added: Interest on borrowed funds decreased $143 thousand, or 32.1%, for the second quarter of 2026 compared to the same quarter of 2025 and decreased $128 thousand, or 15.7%, for the first six months of 2026 compared to the same period in 2025, primarily due to a decrease in average volume of borrowed funds in both comparison periods.
+Added: Market pressure on deposit rates has stabilized and a decrease in wholesale funding has resulted in an improved net interest margin and net interest spread.
Return on average assets, which is net income divided by average total assets, measures how effectively a corporation uses its assets to produce earnings.
1 unchanged sentence
The following table shows these ratios annualized, as well as other equity ratios monitored by management, for the comparison periods presented.
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
Return on average assets
2 unchanged sentences
Average equity to average assets
+Added: Six Months Ended June 30,
+Added: Return on average assets
+Added: Return on average equity
+Added: Dividend payout ratio (1)
+Added: Average equity to average assets
(1) Dividends declared per common share divided by earnings per common share.
6 unchanged sentences
therefore, to equalize tax-free and taxable income in the comparison, we divide the tax-free income by 79%, with the result that every tax-free dollar is equivalent to $1.27 in taxable income for the periods presented.
−Removed: The Company’s tax-exempt interest income of $718,134 and $727,753 for the three months ended March 31, 2026 and 2025, respectively, was derived from loans to local municipalities of $64.1 million and $70.4 million, and tax-exempt municipal investment securities of $10.2 million and $10.1 million, as of March 31, 2026 and 2025, respectively.
+Added: The Company’s tax-exempt interest income of $726,540 and $827,746 for the three months ended June 30, 2026 and 2025, respectively, and $1.4 million and $1.6 million for the six months ended June 30, 2026 and 2025, respectively, was derived from loans to local municipalities of $44.6 million and $42.4 million, and tax-exempt municipal investment securities of $10.3 million and $9.9 million, as of June 30, 2026 and 2025, respectively.
The following table shows the reconciliation between reported NII and tax equivalent NII for the comparison periods presented.
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
Net interest income as presented
1 unchanged sentence
Net interest income, tax equivalent
+Added: Six Months Ended June 30,
+Added: Net interest income as presented
+Added: Effect of tax-exempt income
+Added: Net interest income, tax equivalent
The following tables present the daily average assets and the daily average liabilities, including the average yields on interest-earning assets and average expense on interest-bearing liabilities for the comparison periods presented.
1 unchanged sentence
Net interest income, net interest spread, and net interest margin are also expressed on a tax equivalent basis.
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
Average Assets
25 unchanged sentences
Total interest-bearing liabilities
+Added: $ 897,964,810
+Added: $ 875,278,651
Non-interest bearing deposits
10 unchanged sentences
Net interest margin (4)
−Removed: Included in net loans are non-accrual loans with average balances of $6,683,288 and $8,730,643 for the three months ended March 31, 2026 and 2025, respectively.
−Removed: Loans are stated net of unearned discount and ACL, and include loans held-for-sale and include tax-exempt loans to local municipalities with average balances of $64,263,585 and $68,300,830 for the three months ended March 31, 2026 and 2025, respectively.
−Removed: Included in other investments is the Company’s FHLBB Stock with average balances of $2,226,000 and $2,217,295 for the three months ended March 31, 2026 and 2025, respectively, with a dividend rate of approximately 7.05% and 8.41%, respectively, per quarter.
+Added: Included in net loans are non-accrual loans with average balances of $7,304,201 and $8,742,987 for the three months ended June 30, 2026 and 2025, respectively.
+Added: Loans are stated net of unearned discount and ACL, and include loans held-for-sale and include tax-exempt loans to local municipalities with average balances of $63,668,623 and $68,794,557 for the three months ended June 30, 2026 and 2025, respectively.
+Added: Included in other investments is the Company’s FHLBB Stock with average balances of $1,943,173 and $2,356,166 for the three months ended June 30, 2026 and 2025, respectively, with a dividend rate of approximately 6.71% and 7.39%, respectively, per quarter.
Net interest spread is the difference between the average yield on average interest-earning assets and the average rate paid on average interest-bearing liabilities.
Net interest margin is net interest income divided by average earning assets.
−Removed: The average volume of interest-earning assets for the three-month period ended March 31, 2026 increased 5.4% compared to the same period last year, and the average yield on interest-earning assets increased 23 bps.
−Removed: The average volume of loans increased over the three-month comparison period of 2026 versus 2025 by 3.9%, and the average yield on loans increased 28 bps.
−Removed: Loans accounted for 81.6% of the average interest-earning asset portfolio for the three-month period ended March 31, 2026, compared to 82.8% for the same period last year.
−Removed: Interest earned on the loan portfolio as a percentage of total interest income was 90.0% for the three-month period in 2026 compared to 91.0% for the same period in 2025.
−Removed: The average volume of the taxable investment portfolio (classified as AFS) decreased 12.1% during the three-month period ended March 31, 2026, compared to the same period last year, while the average yield increased 15 bps between periods.
−Removed: The average volume of the tax-exempt investment portfolio (classified as AFS) for the three-month period ended March 31, 2025 increased 0.1% and the tax equivalent yield decreased six bps.
−Removed: There were no tax-exempt bond purchases during the first three months of 2026, however the fair value of the portfolio has increased, accounting for the increase in average volume in this portfolio.
−Removed: The average volume of sweep and interest-earning accounts, which consists primarily of an interest-bearing account at the FRBB, increased 141.5% for the three-month period ended March 31, 2026, compared to the same period in 2025.
−Removed: The average volume grew steadily throughout 2025 with the influx of customer deposit accounts, primarily municipal deposit accounts.
−Removed: The average yield on these funds decreased 67 bps for the three-month period ended March 31, 2026, versus the same period in 2025.
−Removed: The average volume of interest-bearing liabilities for the three-month period ended March 31, 2026 increased 4.1% compared to the same period in 2025, and the average rate paid on interest-bearing liabilities decreased 10 bps.
−Removed: The average volume of interest-bearing transaction accounts decreased 0.1% for the three-month period ended March 31, 2026, compared to the same period in 2025, while the average rate paid on these accounts decreased three bps between comparison periods.
−Removed: Interest-bearing transaction accounts comprised 31.9% of the average interest-bearing liabilities portfolio for the three-month period ended March 31, 2026, compared to 33.3% for the same period last year.
−Removed: Interest paid on these funds accounted for 26.7% of total interest expense for the three-month period of 2026 compared to 27.2% for the same period in 2025.
−Removed: The average volume of money market accounts decreased 1.5% for the three-month period ended March 31, 2026, compared to the same period in 2025, and the average rate paid on these deposits decreased 42 bps.
−Removed: The decrease in average volume was driven primarily by cyclical decreases in the average volume of municipal deposit accounts during the third and fourth quarters of 2025.
−Removed: The average volume of savings accounts increased 2.1% for the three-month period ended March 31, 2026, compared to the same period in 2025, with no change in the average rate paid on these accounts.
−Removed: The average volume of time deposits increased 19.7% for the three-month period ended March 31, 2026, compared to the same period in 2025, and the average rate paid decreased 24 bps.
−Removed: The increase in the average volume is attributable to CD promotional products offered throughout 2025 and into 2026.
−Removed: The average volume of repurchase agreements decreased 8.9% for the three-month period ended March 31, 2026, compared to the same period in 2025, and the average rate paid increased 32 bps between comparison periods.
−Removed: As deposit accounts decreased during 2025, the need for borrowed funds increased, accounting for the 9.9% increase in average volume of borrowed funds during the three-month period ended March 31, 2026, compared to the same period in 2025.
−Removed: The average rate paid on borrowed funds decreased by 21 bps for the three-month period ended March 31, 2026, compared to the same period in 2025.
−Removed: In summary, between the three-month periods ended March 31, 2026 and 2025, the average yield on interest-earning assets increased 23 bps and the average rate paid on interest-bearing liabilities decreased 10 bps.
−Removed: Net interest spread increased 33 bps for the three-month period ended March 31, 2026 versus the same period in 2025, and the net interest margin increased 32 bps between comparison periods.
+Added: Six Months Ended June 30,
+Added: Average Assets
+Added: Loans, net (1)
+Added: $ 972,535,723
+Added: $ 935,652,854
+Added: Taxable investment securities
+Added: Tax-exempt investment securities
+Added: Federal funds sold and overnight deposits
+Added: Other investments (2)
+Added: Total interest-earning assets
+Added: 1,172,553,083
+Added: $ 1,118,458,072
+Added: Cash and due from banks
+Added: Premises and equipment
+Added: $ 1,239,017,885
+Added: $ 1,185,718,993
+Added: Average Liabilities and Shareholders' Equity
+Added: Interest-bearing transaction accounts
+Added: $ 294,410,038
+Added: $ 288,056,314
+Added: Money market funds
+Added: Savings deposits
+Added: Time deposits
+Added: Repurchase agreements
+Added: Borrowed funds
+Added: Finance lease obligations
+Added: Junior subordinated debentures
+Added: Total interest-bearing liabilities
+Added: Non-interest bearing deposits
+Added: Other liabilities
+Added: Total liabilities
+Added: 1,122,159,248
+Added: 1,084,108,150
+Added: Shareholders' equity
+Added: Total liabilities and shareholders' equity
+Added: $ 1,239,017,885
+Added: $ 1,185,718,993
+Added: Net interest income
+Added: Net interest spread (3)
+Added: Net interest margin (4)
+Added: Included in net loans are non-accrual loans with average balances of $6,993,745 and $8,736,815 for the six months ended June 30, 2026 and 2025, respectively.
+Added: Loans are stated net of unearned discount and ACL, and include loans held-for-sale and tax-exempt loans to local municipalities with average balances of $63,964,461 and $68,549,058 for the six months ended June 30, 2026 and 2025, respectively.
+Added: Included in other investments is the Company’s FHLBB Stock with average balances of $2,083,805 and $2,091,994, respectively, with a dividend rate of approximately 6.45% and 7.02%, respectively, for the six months ended June 30, 2026 and 2025, respectively.
+Added: Net interest spread is the difference between the average yield on average interest-earning assets and the average rate paid on average interest-bearing liabilities.
+Added: Net interest margin is net interest income divided by average earning assets.
+Added: The average volume of interest-earning assets for the three-and six-month periods ended June 30, 2026 increased 4.2% and 4.8%, respectively, compared to the same periods last year, and the average yield on interest-earning assets increased 18 bps and 20 bps, respectively.
+Added: The average volume of loans increased over the three- and six-month comparison periods of 2026 versus 2025 by 4.0% and 3.9%, respectively, and the average yield on loans increased 19 bps and 24 bps, respectively, versus the same period in 2025.
+Added: Loans accounted for 84.3% and 82.9% of the average interest-earning asset portfolio for the three- and six-month periods ended June 30, 2026, compared to 84.5% and 83.7%, respectively, for the same periods last year.
+Added: Interest earned on the loan portfolio as a percentage of total interest income was 91.9% and 90.9%, respectively, for the three- and six-month periods in 2026 compared to 92.2% and 91.6%, respectively, for the same periods in 2025.
+Added: The average volume of the taxable investment portfolio (classified as AFS) decreased 19.5% and 15.9%, respectively, during the three- and six-month periods ended June 30, 2026, compared to the same periods last year, while the average yield decreased 6 bps and increased 4 bps, respectively, between periods.
+Added: The average volume of the tax-exempt investment portfolio (classified as AFS) for the three- and six-month periods ended June 30, 2026 increased 0.2% in both periods, while the tax equivalent yield decreased 13 bps and 10 bps, respectively.
+Added: There were no tax-exempt bond purchases during the first six months of 2026.
+Added: The average volume of sweep and interest-earning accounts, which consists primarily of an interest-bearing account at the FRBB, increased 636.1% and 225.9%, respectively, for the three- and six-months ended June 30, 2026, compared to the same periods in 2025.
+Added: The average volume grew steadily during the last half of 2025 with the influx of customer deposit accounts, primarily municipal deposit accounts.
+Added: The average yield on these funds decreased 92 bps and 69 bps, respectively, for the three- and six-month periods ended June 30, 2026, versus the same periods in 2025.
+Added: The average volume of interest-bearing liabilities for the three- and six-month periods ended June 30, 2026 increased 2.6% and 3.4%, respectively, compared to the same periods in 2025, while the average rate paid on interest-bearing liabilities decreased 13 bps and 11 bps, respectively.
+Added: The average volume of interest-bearing transaction accounts increased 4.6% and 2.2%, respectively, for the three- and six-month periods ended June 30, 2026, compared to the same periods of 2025, reflecting moderate growth year over year.
+Added: The average rate paid on these accounts decreased 8 bps and 6 bps, respectively, between comparison periods.
+Added: Interest-bearing transaction accounts comprised 32.6% and 32.3% of the average interest-bearing liabilities portfolio for the three- and six-month periods ended June 30, 2025, compared to 32.0% and 32.6%, respectively, for the same periods last year.
+Added: Interest paid on these funds accounted for 27.1% and 26.9%, respectively, of total interest expense for the three- and six-month periods of 2026 compared to 26.2% and 26.7%, respectively, for the same periods in 2025.
+Added: The average volume of money market accounts decreased 4.0% and 2.7%, respectively, for the three- and six-month periods ended June 30, 2026, compared to the same periods in 2025, while the average rate paid on these deposits decreased 42 bps for both periods.
+Added: The average volume of savings accounts increased 2.5% and 2.3%, respectively, for the three- and six-month periods ended June 30, 2026, compared to the same periods in 2025.
+Added: The average rate paid on these accounts in the three-month period ended June 30, 2026 decreased 1 bp compared to 2025, while there was no change in the average rate paid on these accounts in the six-month period ended June 30, 2026 compared to 2025.
+Added: The average volume of time deposits increased 17.8% and 18.7%, respectively, for the three- and six-month periods ended June 30, 2026, compared to the same periods in 2025, and the average rate paid decreased 12 bps and 18 bps, respectively.
+Added: The average volume of repurchase agreements decreased 30.8% and 14.2%, respectively, for the three- and six-month periods ended June 30, 2026, compared to the same periods in 2025, and the average rate paid increased 24 bps and 28 bps, respectively, between periods.
+Added: The need for borrowed funds decreased, accounting for the 30.8% and 12.9% decrease in average volume of borrowed funds during the three- and six-month periods during 2026 ended June 30, 2026, respectively, compared to the same periods in 2025.
+Added: The average rate paid on borrowed funds decreased as well by 14 bps and 15 bps, respectively, for both the three- and six-month periods ended June 30, 2026, compared to the same periods in 2025.
+Added: In summary, between the three- and six-month periods ended June 30, 2026 and 2025, the average yield on interest-earning assets increased 18 bps and 20 bps, respectively, and the average rate paid on interest-bearing liabilities decreased 13 bps and 11 bps, respectively.
+Added: Net interest spread increased 31 bps for the three- and six-month periods ended June 30, 2026 versus the same periods in 2025, and the net interest margin increased 31 bps and 32 bps, respectively.
The following table summarizes the variances in interest income and interest expense on a fully tax-equivalent basis for the interim periods presented for 2026 and 2025 resulting from volume changes in daily average assets and daily average liabilities and fluctuations in average rates earned and paid.
−Removed: Three Months Ended March 31, 2026
−Removed: Three Months Ended March 31, 2025
+Added: Three Months Ended June 30, 2026
+Added: Six Months Ended June 30, 2026
+Added: Three Months Ended June 30, 2025
+Added: Six Months Ended June 30, 2025
Average Interest-Earning Assets
23 unchanged sentences
Three Months Ended
+Added: Six Months Ended
Income from sold loans
Other income from loans
+Added: Net realized gain on sale of securities AFS
Income from CFS Partners
1 unchanged sentence
Total non-interest income
−Removed: Total non-interest income increased $166,731, or 10.6%, for the three months ended March 31, 2026, compared to the same period in 2025, with significant changes noted in the following:
−Removed: Increases in debit card usage resulting in approximately $22 thousand in VISA check interchange income as well as increases in ATM usage fees and wire fees primarily accounts for the $50 thousand increase in service fees.
−Removed: Increases in commercial loan documentation fees, totaling $97 thousand, primarily accounts for the increase in other income from loans year over year, partially offset by a decrease in commercial rate lock fees of $10 thousand and home equity documentation fees of $5 thousand.
−Removed: Income from CFS Partners decreased between periods due in part to a large negative mark-to-market adjustment to their investment portfolio due to the decline in the equity markets at quarter end.
−Removed: A gain on a sold OREO property of $37 thousand largely accounts for the increase in Other miscellaneous income.
+Added: Total non-interest income increased $254,036, or 12.3%, and $420,767 or 11.6%, respectively, for the three and six months ended June 30, 2026, compared to the same periods in 2025, with significant changes noted in the following:
+Added: Increases in debit card usage resulting in approximately $21 thousand in VISA check interchange income as well as increases in paper statement fees of $15 thousand primarily accounts for the $68 thousand increase in service fees year over year.
+Added: Increases in commercial loan documentation fees, totaling $355 thousand, primarily accounts for the increase in other income from loans year over year, partially offset by a decrease in commercial rate lock fees of $19 thousand, and decreases in commercial line of credit annual fees of $17 thousand and in home equity documentation fees of $21 thousand.
+Added: Income from CFS Partners increased between periods due in part to continued strength in core trust revenues and strong investment portfolio performance.
+Added: A gain on a sold OREO property of $37 thousand largely accounts for the increase in Other miscellaneous income year over year .
Non-interest Expense
The components of non-interest expense for the periods presented were as follows:
+Added: Non-Interest Expense
Three Months Ended
+Added: Six Months Ended
Salaries and wages
14 unchanged sentences
Total non-interest expense
−Removed: Total non-interest expense increased $553,748, or 8.5% for the three months ended March 31, 2026, compared to the same period in 2025, with significant changes noted in the following:
−Removed: The increases in salaries and wages during the three-month period of 2026 reflects normal salary increases as well as newly filled positions.
−Removed: The increase in employee benefits in the three-month period is attributable to increased health insurance claims in 2026 compared to 2025 under the Company’s self-insured health plan.
−Removed: The increase in charged-off checks is related to a recovery during the first quarter of 2025.
−Removed: The decrease in outsourcing expense is attributable to a renegotiated contract from the Company’s core processing provider.
+Added: Total non-interest expense increased $497,838, or 7.5%, and $1.1 million or 8.0%, for the three and six months ended June 30, 2026, compared to the same periods in 2025, with significant changes noted in the following:
+Added: The increases in salaries and wages year over year reflects normal salary increases as well as newly filled positions.
+Added: The increase in employee benefits is attributable to increased health insurance claims in 2026 compared to 2025 under the Company’s self-insured health plan.
+Added: The increase in charged-off checks year over year was due to a recovery for a $53 thousand check during the first quarter of 2025.
+Added: The decrease in directors fees in both periods is attributable to the retirement of two directors in the second quarter of 2026.
+Added: The increase in outsourcing expense is primarily due to yearly increases in the contract with the Company’s core processing provider.
The year over year increase in service contracts - administrative is due to a combination of new contracts, an increase in transaction-based pricing for certain contracts, and contractual inflationary adjustment factors that are higher than historical increase adjustments.
−Removed: Collection & non-accruing loan expenses were lower year over year due to the recovery of expenses associated with properties in foreclosure that were resolved.
ATM & debit card expenses are transaction-based and reflect increased customer activity year over year, as well as annual contractual price adjustments.
2 unchanged sentences
Marketing expense increased due to marketing promotions relating to the Bank’s 175 th anniversary celebration year.
+Added: The increase in Other miscellaneous expenses is mainly attributable to check fraud expense of $49 thousand year to date.
APPLICABLE INCOME TAXES
−Removed: The provision for income taxes increased $212,441, or 32.1%, for the first quarter of 2026 compared to the same period in 2025, which is the consistent with the increase in income before income taxes.
−Removed: Tax credits, which consist of credits from affordable housing investments and NMTC, amounted to $249,612 for the first quarter of 2026 and 2025.
−Removed: Amortization expense related to the affordable housing investments and NMTC is included as a component of income tax expense and amounted to $257,433 and $148,890, respectively, for the first quarter of 2026 and 2025.
+Added: The provision for income taxes increased $167,533, or 20.5%, for the second quarter of 2026 and $379,974, or 25.6%, for the first six months of 2026 compared to the same periods in 2025, which is the consistent with the increase in income before income taxes.
+Added: Tax credits, which consist of credits from affordable housing investments and NMTC, amounted to $249,612 for the first quarter of 2026 and 2025 and remained level at $998,448, for the first six months of 2026 and 2025.
+Added: Amortization expense related to the affordable housing investments and NMTC is included as a component of income tax expense and amounted to $257,433 and $148,890, respectively, for the first quarter of 2026 and 2025 and $514,866 and $148,890, respectively, for the first six months of 2026 and 2025.
These investments provide tax benefits, including tax credits, and are designed to provide a targeted effective annual yield between 5% and 7%.
1 unchanged sentence
The following table reflects the composition of the Company's major categories of assets and liabilities as a percentage of total assets or liabilities and shareholders’ equity, as of the balance sheet dates:
−Removed: March 31, 2026
+Added: June 30, 2026
December 31, 2025
11 unchanged sentences
AFS securities
+Added: (16,545,930 )
Demand deposits
1 unchanged sentence
Interest-bearing transaction accounts
+Added: (21,085,528 )
Money market funds
2 unchanged sentences
Time deposits
−Removed: The increase in the loan portfolio during the first three months of 2026 was primarily attributable to increases in CRE loans, residential real estate 1 st lien loans, as well as municipal loans.
−Removed: The decrease in the securities AFS portfolio at March 31, 2026 is attributable to the combined effect during the first three months of the year of an increase of $208 thousand in unrealized losses reflected in OCI, as well as maturities of $2.1 million and principal payments on MBS, ABS and CMO investments totaling $4.5 million.
−Removed: The cash flow resulting from maturities and other principal payments was used to fund loan growth.
+Added: Long-term advances
+Added: (25,000,000 )
+Added: The increase in the loan portfolio during the first six months of 2026 was primarily attributable to increases in C&I loans and residential real estate 1 st lien loans.
+Added: The decrease in the securities AFS portfolio at June 30, 2026 is attributable to the combined effect during the first six months of the year of purchases totaling $153 thousand and a decrease of $301 thousand in unrealized losses reflected in OCI, which was more than offset by maturities of $4.5 million and principal payments on MBS, ABS and CMO investments totaling $12.3 million.
In management’s view, the size of the AFS securities portfolio is appropriate and proportional to the overall asset base, as this portfolio serves a significant role in the Company’s liquidity position.
−Removed: The decrease in interest-bearing transactions accounts at March 31, 2026 from year end 2025 is attributable to a decrease of $5.9 million, or 13.9% in a CFSG deposit account, and a decrease of $4.9 million or 4.0%, in ICS accounts.
−Removed: The decrease in money market accounts was primarily driven by a decrease of $20.8 million, or 42.7% in ICS accounts.
+Added: The decrease in interest-bearing transactions accounts at June 30, 2026 from year end 2025 is attributable to a cyclical decrease of $4.9 million, or 15.8% in government agency accounts for our municipal customers, a decrease of $19.3 million or 15.8%, in ICS accounts, and a decrease of $35.2 million, or 6.8% in retail deposit accounts.
+Added: The decrease in money market accounts was driven by a decrease of $41.9 million, or 85.8%, in ICS accounts, and a decrease in retail money market accounts of $6.9 million, or 6.0%, as well as a decrease in municipal money market deposits of $12.7 million, or 55.5%.
Uninsured Deposits
−Removed: Estimated deposits in excess of the FDIC insurance level amounted to $234.5 million as of March 31, 2026 and $261.7 million as of December 31, 2025.
−Removed: The estimated balance of $51.9 million of uninsured time deposits as of March 31, 2026 was made up of time CDs of $47.7 million and retirement accounts of $4.2 million.
+Added: Estimated deposits in excess of the FDIC insurance level amounted to $229.8 million as of June 30, 2026 and $261.7 million as of December 31, 2025.
+Added: The estimated balance of $48.2 million of uninsured time deposits as of June 30, 2026 was made up of time CDs of $43.6 million and retirement accounts of $4.6 million.
Increments of maturity of these time deposits are summarized as follows:
26 unchanged sentences
Thereafter, net interest income is projected to experience sustained downward pressure as funding costs reach their assumed floors and asset yields continue to reprice into the lower rate environment.
−Removed: The following table summarizes the estimated impact on the Company's NII over a twelve-month period, assuming a gradual parallel shift of the yield curve beginning March 31, 2026:
+Added: The following table summarizes the estimated impact on the Company's NII over a twelve-month period, assuming a gradual parallel shift of the yield curve beginning June 30, 2026:
Percent Change in NII
3 unchanged sentences
While assumptions used in the ALCO process, including the interest rate simulation analyses, are developed based upon current economic and local market conditions, and expected future conditions, the Company cannot provide any assurances as to the predictive nature of these assumptions, including how customer preferences or competitor influences might change.
−Removed: As of March 31, 2026, the Company had $12,887,000 in principal amount of Junior Subordinated Debentures due December 15, 2037, which bear interest at a quarterly floating rate equal to 3-month CME SOFR, as adjusted by a spread adjustment factor of 0.26161, plus 2.85%.
−Removed: The quarterly floating rate in effect on the debentures was 6.83% for the March 2026 payment, compared to a floating rate of 7.47% for the March 2025 payment.
+Added: As of June 30, 2026, the Company had $12,887,000 in principal amount of Junior Subordinated Debentures due December 15, 2037, which bear interest at a quarterly floating rate equal to 3-month CME SOFR, as adjusted by a spread adjustment factor of 0.26161, plus 2.85%.
+Added: The quarterly floating rate in effect on the debentures was 6.79% for the June 2026 payment, compared to a floating rate of 7.41% for the June 2025 payment.
Credit Risk - As a financial institution, one of the primary risks the Company manages is credit risk, the risk of loss stemming from borrowers’ failure to repay loans or inability to meet other contractual obligations.
4 unchanged sentences
Loans are reviewed periodically by an independent loan review firm to help ensure accuracy of the Company's internal risk ratings and compliance with various internal policies, procedures and regulatory guidance.
−Removed: Residential mortgage loans represented 29.2% of the Company’s loan balances as of March 31, 2026, compared to 29.3% as of December 31, 2025.
+Added: Residential mortgage loans represented 30.8% of the Company’s loan balances as of June 30, 2026, compared to 29.3% as of December 31, 2025.
The Company maintains a residential mortgage loan portfolio of traditional mortgage products and does not offer higher risk loan products, such as option adjustable-rate mortgage products, high loan-to-value products, interest only mortgages, subprime loans and products with deeply discounted teaser rates.
1 unchanged sentence
A 90% loan-to-value residential mortgage product without PMI is only available to borrowers with excellent credit and low debt-to-income ratios and has not been widely originated.
−Removed: As of March 31, 2026, junior lien home equity products made up 15.9% of the residential mortgage portfolio with maximum loan-to-value ratios (including prior liens) of 80%.
+Added: As of June 30, 2026, junior lien home equity products made up 15.9% of the residential mortgage portfolio with maximum loan-to-value ratios (including prior liens) of 80%.
The Company also originates some home equity loans with loan-to-value ratios greater than 80% under an insured loan program with stringent underwriting criteria.
−Removed: The following tables show the estimated maturities within the Company’s loan portfolio as of March 31, 2026.
+Added: The following tables show the estimated maturities within the Company’s loan portfolio as of June 30, 2026.
Fixed Rate Loans
16 unchanged sentences
The Company experienced solid growth in the CRE loan portfolio, which is consistent with its strategic focus on commercial lending.
−Removed: Commercial & industrial, purchased, CRE and municipal loans collectively comprised 69.3% of the Company’s loan portfolio as of March 31, 2026, compared to 71.7% as of December 31, 2025.
−Removed: The largest components of the CRE portfolio were $142.0 million in owner-occupied CRE and $181.9 million in non-owner occupied CRE as of March 31, 2026, compared to $125.5 million and $154.6 million, respectively, as of December 31, 2025.
+Added: Commercial & industrial, purchased, CRE and municipal loans collectively comprised 68.9% of the Company’s loan portfolio as of June 30, 2026, compared to 70.4% as of December 31, 2025.
+Added: The largest components of the CRE portfolio were $152.0 million in owner-occupied CRE and $170.6 million in non-owner occupied CRE as of June 30, 2026, compared to $138.1 million and $184.0 million, respectively, as of December 31, 2025.
Risk in the Company’s commercial & industrial and CRE loan portfolios is mitigated in part by government guarantees issued by federal agencies such as the SBA and RD.
−Removed: As of March 31, 2026, the Company had $24.4 million in guaranteed loans with guaranteed balances of $16.9 million, compared to $24.2 million in guaranteed loans with guaranteed balances of $16.7 million as of December 31, 2025.
−Removed: PPP loans with outstanding balances of $0 as of March 31, 2026, and $8 thousand as of December 31, 2025, are included in these totals, which carried a 100% guarantee through the SBA, subject to borrower eligibility requirements.
+Added: As of June 30, 2026, the Company had $25.9 million in guaranteed loans with guaranteed balances of $17.7 million, compared to $24.2 million in guaranteed loans with guaranteed balances of $16.7 million as of December 31, 2025.
+Added: PPP loans with outstanding balances of $0 as of June 30, 2026, and $8 thousand as of December 31, 2025, are included in these totals, which carried a 100% guarantee through the SBA, subject to borrower eligibility requirements.
The Company works actively with customers early in the delinquency process to help them to avoid default and foreclosure.
10 unchanged sentences
Credit loss expense - loans
−Removed: Credit loss reversal - OBS credit exposure
+Added: Credit loss expense - OBS credit exposure
Credit loss expense
−Removed: The increase in the credit loss expense on loans in the first months of 2026 compared to the same period in 2025, was due in part to an increase in certain qualitative factors as well as an increase in the volume of the loan portfolio.
−Removed: The decrease in the OBS credit exposure between periods is attributable to a decrease in unfunded loan commitments under contract.
+Added: Six Months Ended
+Added: Credit loss expense - loans
+Added: Credit loss expense (reversal)- OBS credit exposure
+Added: Credit loss expense
+Added: The increase in the credit loss expense on loans in the three months ended June 30, 2026, period compared to the same period of 2025, was due in part to changes in the economic forecast, prepayments speeds, and loan curtailments, as well as an increase to the reserve for an individually analyzed commercial loan that is in workout.
+Added: The increase in the credit loss expense on loans in the six months ended June 30 period of 2026, compared to the same period in 2025, was due to the factors listed above as well as an adjustment to certain qualitative factors in the first quarter of 2026 and an increase in the loan portfolio.
+Added: The increase in the OBS credit exposure for the three months ended June 30, 2026, is attributable to an increase in unfunded commitments and the increase in the six months ended June 30, 2026, is attributable to a increase in unfunded commitments year over year.
ACL and provisions –The Company’s ACL policy provides guidance in maintaining an adequate methodology for establishing, estimating, and maintaining allowances for credit losses under ASC 326.
17 unchanged sentences
The following table shows the breakdown of the ACL by loan segment and the percentage of loans in each category to total loans in the respective portfolios at the date indicated:
−Removed: March 31, 2026
+Added: June 30, 2026
December 31, 2025
3 unchanged sentences
Residential real estate - Jr lien
−Removed: The first quarter ACL analysis indicated that the reserve balance of $11.3 million as of March 31, 2026, was sufficient to cover expected credit losses that are probable and estimable as of the measurement date.
−Removed: As discussed in Note 5 of the accompanying unaudited interim consolidated financial statements, included in the ACL calculation for the first quarter of 2026 was an adjustment made by management to increase the risk status of the qualitative factor for criticized & classified in the commercial and CRE segments to reflect increases in criticized & classified loans in these segments.
+Added: The second quarter ACL analysis indicated that the reserve balance of $11.9 million as of June 30, 2026, was sufficient to cover expected credit losses that are probable and estimable as of the measurement date.
+Added: As discussed in Note 5 of the accompanying unaudited interim consolidated financial statements, there were no adjustments made to the risk status of any qualitative factors included in the ACL calculation for the second quarter of 2026.
Management believes that the quantitative calculation adequately captures the risk in these areas, and that the reserve balance continues to be directionally consistent with the overall risk profile of the Company’s loan portfolio and credit risk appetite.
1 unchanged sentence
Management’s assessment of the adequacy of the ACL is presented to the full Board for approval quarterly.
−Removed: Net charge-offs during the periods presented to average loans outstanding were as follows:
−Removed: For the Three Months Ended March 31,
+Added: Net charge-offs during the periods presented to average loans outstanding in the respective loan segments were as follows:
+Added: For the Six Months Ended June 30,
Commercial & industrial
3 unchanged sentences
$ 124,770,912
−Removed: Net charge-offs during the period
−Removed: Average amount outstanding
−Removed: Commercial real estate
−Removed: Net charge-offs during the period
−Removed: Average amount outstanding
−Removed: $ 504,730,654
−Removed: $ 484,575,956
−Removed: Net charge-offs during the period
−Removed: Average amount outstanding
Residential real estate - 1st lien
3 unchanged sentences
$ 223,510,841
−Removed: Residential real estate - Jr lien
Net charge-offs during the period
Average amount outstanding
−Removed: Net charge-offs during the period
−Removed: Average amount outstanding
−Removed: Net charge-offs during the period
+Added: Net recoveries (charge-offs) during the period
Average amount outstanding
1 unchanged sentence
$ 944,997,126
+Added: There were no charge-offs or recoveries in the Purchased, Commercial real estate, Municipal or Residential real estate jr.
+Added: lien segments during the six months ended June 30, 2026 and 2025.
In addition to credit risk in the Company’s loan and investment portfolios and its off-balance sheet commitments, and liquidity risk in its loan and deposit-taking operations, the Company’s business activities also generate market risk.
9 unchanged sentences
The Company is a party to financial instruments with OBS risk in the normal course of business to meet the financing needs of its customers.
−Removed: These financial instruments include commitments to extend credit, standby letters of credit and risk-sharing commitments on certain sold loans.
+Added: These financial instruments include commitments to extend credit, standby letters of credit, risk-sharing commitments on certain sold loans, and risk participation agreements with financial institution counter parties.
Such instruments involve, to varying degrees, elements of credit and interest rate risk more than the amount recognized in the balance sheet.
The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.
−Removed: During the first three months of 2026, the Company did not engage in any activity that created any additional types of OBS risk.
+Added: During the first six months of 2026, the Company did not engage in any activity that created any additional types of OBS risk.
LIQUIDITY AND CAPITAL RESOURCES
10 unchanged sentences
One-way deposits acquired through the CDARS and/or ICS programs provide an alternative funding source when needed.
−Removed: As of March 31, 2026, and December 31, 2025, the Company had no one-way CDARS deposits, and no one-way ICS deposits outstanding at either period end.
+Added: As of June 30, 2026, and December 31, 2025, the Company had no one-way CDARS deposits, and no one-way ICS deposits outstanding at either period end.
In addition, two-way (reciprocal) CDARS deposits, as well as reciprocal ICS money market and demand deposits, enhance the Company’s ability to retain larger deposit balances by allowing the Company to provide FDIC deposit insurance to its customers in excess of account coverage limits through the exchange of deposits with other participating FDIC-insured financial institutions.
−Removed: As of March 31, 2026 and December 31, 2025, the Company reported $4.8 million and $4.7 million, respectively, in reciprocal CDARS deposits.
−Removed: The balance in ICS reciprocal money market deposits was $27.9 million as of March 31, 2026, compared to $48.8 million as of December 31, 2025, and the balance in ICS reciprocal demand deposits as of those dates was $117.2 million and $122.0 million, respectively.
−Removed: Additionally, the Company had brokered deposits from other sources totaling approximately $29.8 million as of March 31, 2026 and $30.5 million as of December 31, 2025.
+Added: As of June 30, 2026 and December 31, 2025, the Company reported $4.9 million and $4.7 million, respectively, in reciprocal CDARS deposits.
+Added: The balance in ICS reciprocal money market deposits was $6.9 million as of June 30, 2026, compared to $48.8 million as of December 31, 2025, and the balance in ICS reciprocal demand deposits as of those dates was $102.7 million and $122.0 million, respectively.
+Added: Additionally, the Company had brokered deposits from other sources totaling approximately $29.8 million as of June 30, 2026 and $30.5 million as of December 31, 2025.
These relationships have provided convenient and timely access to short-term funding that is easily accessible without any detrimental effect on the pricing of the core deposit base.
−Removed: As of March 31, 2026 and December 31, 2025, borrowing capacity of $140.2 million and $137.6 million, respectively, was available through the FHLBB, secured by the Company's qualifying loan portfolio (generally, residential mortgage and commercial loans), reduced by outstanding advances of $35.9 million for both periods.
+Added: As of June 30, 2026 and December 31, 2025, borrowing capacity of $140.9 million and $137.6 million, respectively, was available through the FHLBB, secured by the Company's qualifying loan portfolio (generally, residential mortgage and commercial loans), reduced by outstanding advances of $10.9 million and $35.9 million, respectively.
The following table reflects the Company’s outstanding advances with FHLBB as of the dates indicated:
12 unchanged sentences
Interest is chargeable at a rate determined daily, approximately 25 bps higher than the rate paid on federal funds sold.
−Removed: The Company has a BIC arrangement with the FRBB secured by eligible commercial & industrial loans, CRE loans and home equity loans, resulting in an available credit line of $61.6 million and $62.6 million, respectively, as of March 31, 2026, and December 31, 2025.
+Added: The Company has a BIC arrangement with the FRBB secured by eligible commercial & industrial loans, CRE loans and home equity loans, resulting in an available credit line of $59.9 million and $62.6 million, respectively, as of June 30, 2026, and December 31, 2025.
Credit advances under this FRBB lending program are overnight advances with interest chargeable at the primary credit rate (generally referred to as the discount rate), currently 375 bps.
−Removed: The Company had no outstanding advances through this facility as of March 31, 2026, or December 31, 2025.
−Removed: As of March 31, 2026, and December 31, 2025, the Company had an unsecured line of credit of $12.5 million with a correspondent bank.
+Added: The Company had no outstanding advances through this facility as of June 30, 2026, or December 31, 2025.
+Added: As of June 30, 2026, and December 31, 2025, the Company had an unsecured line of credit of $12.5 million with a correspondent bank.
The Company had no outstanding advances against this credit line as of the balance sheet dates.
7 unchanged sentences
In addition, management will confer with the FRBB regarding the program, as appropriate in the circumstances.
−Removed: As of March 31, 2026, 90,308 shares had been repurchased since the inception of the program, for an aggregate purchase price of $1.9 million, including 1,070 shares at an average purchase price of $24.89 and an aggregate purchase price of $26,633 during the first quarter of 2026.
−Removed: The following table illustrates the changes in shareholders' equity from December 31, 2025, to March 31, 2026:
+Added: As of June 30, 2026, 90,308 shares had been repurchased since the inception of the program, for an aggregate purchase price of $1.9 million.
+Added: No shares were repurchased during the second quarter of 2026.
+Added: The following table illustrates the changes in shareholders' equity from December 31, 2025, to June 30, 2026:
Balance as of December 31, 2025 (book value $20.36 per common share)
4 unchanged sentences
Change in AOCI on AFS securities, net of tax
−Removed: Balance as of March 31, 2026 (book value $20.88 per common share)
+Added: Balance as of June 30, 2026 (book value $21.58 per common share)
$ 120,894,014
1 unchanged sentence
Capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.
−Removed: As of March 31, 2026, the Bank was considered well capitalized under the standard regulatory capital framework for Prompt Corrective Action and the Company exceeded currently applicable consolidated regulatory guidelines for capital adequacy.
+Added: As of June 30, 2026, the Bank was considered well capitalized under the standard regulatory capital framework for Prompt Corrective Action and the Company exceeded currently applicable consolidated regulatory guidelines for capital adequacy.
The following table shows the Company’s actual capital ratios and those of its subsidiary, as well as currently applicable regulatory capital requirements, as of the balance sheet dates:
5 unchanged sentences
(Dollars in Thousands)
−Removed: March 31, 2026:
+Added: June 30, 2026:
Common equity tier 1 capital
18 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.