What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-03-16 compared with 2025-03-14 · 82 added, 64 removed, 1014 unchanged (13% of the section changed)

46 unchanged sentences

We identified these qualitative adjustments within the ACL as critical audit matters because they involve a high degree of subjectivity.

While the determination of these qualitative adjustments includes analysis of observable data over the historical loss period, the judgments required to assess the directionality and magnitude of adjustments is highly subjective.

While the determination of these qualitative adjustments includes analysis of observable data over the historical loss period, the judgment required to assess the directionality and magnitude of adjustments is highly subjective.

Auditing these complex judgments and assumptions involved especially challenging auditor judgment due to the nature of audit evidence and the nature and extent of effort required to address these matters.

How we addressed the matter in our audit

The primary procedures we performed to address this critical audit matter included:

• Testing the design, implementation, and operating effectiveness of internal controls over the calculation of the allowance for credit losses, including the qualitative factor adjustments.

The primary procedures we performed to address these critical audit matters included:

• Testing the design, implementation, and operating effectiveness of internal controls over the calculation of the ACL, including the qualitative factor adjustments.

• Testing the completeness and accuracy of the significant data points that management uses in their evaluation of the qualitative adjustments.

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Interest-earning deposits in other banks

Federal funds sold

Total cash and cash equivalents

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BALANCE AT DECEMBER 31, 2023

Cumulative effect of adoption of ASU 2016-13

Other comprehensive income

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Deferred income tax expense

Provision for credit loss expense

Provision for credit loss expense - loans

Gain on sale of loans, net

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Effects of changes in operating assets and liabilities:

Net deferred loan (fees) costs

Net deferred loan fees

Accrued interest receivable

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Purchases, available-for-sale

Purchase of restricted stock

Redemption of restricted stock

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Purchase of bank owned life insurance

Sale of property

Net cash used in investing activities

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Net cash provided by financing activities

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

NET INCREASE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

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The Company derives its banking operations revenue from business and consumer customers through loan and deposit products.

However, these components are not separately reviewed and all expenses are not segregated from the rest of the Company's operations and therefore are not reportable as segments.

However, these components are not separately reviewed and expenses are not segregated from the rest of the Company's operations and therefore are not reportable as segments.

The Company's chief operating decision maker is the senior management team, which includes the CEO, President, CFO, Chief Risk Officer, Senior Loan Officer and Senior Operations Officer.

While the chief operating decision maker uses financial information related to the banking operations and trust services segments to analyze business performance and allocate resources, the trust services segment does not meet the quantitative threshold under GAAP to be considered a reportable segment.

Trust services revenue and net income are less than 4 % of total Company revenue or net income.

Trust services revenue and net income are less than 3 % of total Company revenue.

As such, these operating segments are aggregated into a single reportable operating segment in the Consolidated Financial Statements.

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Equity securities are held at fair value.

Holding gains and losses are recorded in income.

Holding gains and losses are recorded in noninterest income.

Dividends on equity securities are recognized as income when earned.

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The Bank recognizes gains and losses on sales of the loans held for sale when the sale is completed.

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES (ACL)

The ACL is a valuation reserve established and maintained by charges against operating income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans.

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Collateral values are discounted to consider disposal costs when appropriate.

A specific reserve is established or a charge-off is taken if the fair value of the loan is less than the loan balance.

A specific reserve or valuation allowance is established or a charge-off is taken if the fair value of the loan is less than the loan balance.

Although we believe our process for determining the ACL appropriately considers all the factors that would likely result in credit losses, the process includes subjective elements and may be susceptible to significant change.

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RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic740):

Improvements to Income Tax Disclosure .

This new guidance is intended to enhance the transparency and decision usefulness of income tax disclosures.

The amendments in this Update address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information.

This Update also includes certain other amendments to improve the effectiveness of income tax disclosures.

It is effective for public business entities for annual periods beginning after December 15, 2024.

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures.

This ASU requires disclosure in the notes to financial statements of specified information about certain costs and expenses.

Specific disclosures are required for (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization recognized as part of oil and gas producing activities.

The amendments in this Update do not change or remove current expense disclosure requirements.

However, the amendments affect where this information appears in the notes to financial statements because entities are required to include certain current disclosures in the same tabular format disclosure as the other disaggregation requirements in the amendments.

The amendments in ASU 2024-03 apply only to public business entities and are effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted.

This Update is not expected to have a significant impact on the Company’s financial statements.

In November 2025, the FASB issued ASU 2025-08, Financial Instruments – Credit Losses (Topic 326) , which amends the guidance in Topic 326 to expand the population of acquired financial assets subject to the gross-up approach to include loans (excluding credit cards) that are acquired without credit deterioration and deemed “seasoned.” All non-purchased credit deteriorated loans (excluding credit cards) that are acquired in a business combination are deemed seasoned.

Other non-purchased credit deteriorated loans (excluding credit cards) are considered to be seasoned if they were purchased at least 90 days after origination and the acquirer was not involved in the origination of the loans.

ASU 2025-08 should be applied prospectively and is effective for annual reporting periods beginning after December 15, 2026, including interim reporting periods within those annual reporting periods.

Early adoption is permitted.

This Update is not expected to have an impact on the Company’s financial statements.

ACCOUNTING PRONOUNCEMENTS ADOPTED IN 2025

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

Improvements to Reportable Segment Disclosures , which requires public entities to disclose information about their reportable segments' significant expenses on an interim and annual basis.

This ASU became effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Public entities are required to adopt the changes retrospectively, recasting each prior-period disclosure for which a comparative income statement is presented in the period of adoption .

Upon adoption the Company expanded its disclosures regarding reportable segments, which are included above in Note 1 to the Consolidated Financial Statements.

During the year ended December 31, 2025, the Company adopted ASU 2023-09 , Improvements to Income Tax Disclosure, which expands the disclosure requirements for income taxes.

The amendment in this update improves financial reporting by requiring disclosure of greater disaggregation of information in the income tax rate reconciliation.

The amendment in this update also improves financial reporting by requiring disclosure of income taxes paid by jurisdiction to improve visibility of income taxes paid information.

The adoption did not have a material impact on the Company's consolidated financial statements.

See Note 8 Income Taxes for more information.

RECLASSIFICATION OF COMPARATIVE AMOUNTS

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Total debt securities held-to-maturity

Securities with a carrying value of approximately $ 134 million and $ 126 million were pledged on December 31, 2024, and 2023 respectively, to secure public deposits, as well as other deposits and borrowings as required or permitted by law.

Securities with a carrying value of approximately $ 134 million was pledged on December 31, 2025, and 2024 respectively, to secure public deposits, as well as other deposits and borrowings as required or permitted by law.

Restricted stock primarily consists of investments in FHLB and Federal Reserve Bank stock.

The Bank’s investment in FHLB stock amounted to $ 1.0 million on December 31, 2024, and 2023 .

The Bank’s investment in FHLB stock amounted to $ 1.1 million and $ 1.0 million on December 31, 2025, and 2024 .

Federal Reserve Bank stock was $ 471 thousand on December 31, 2025, and 2024.

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There are no nonperforming held-to-maturity securities.

As of December 31, 2024 , no ACL was required for any held-to-maturity security.

As of December 31, 2025 and 2024 no ACL was required for any held-to-maturity security.

The majority of the securities are explicitly or implicitly guaranteed by the United States government, and any estimate of expected credit losses would be insignificant to the Bank.

The following table summarizes the amortized cost of held-to maturity debt securities at December 31, 2024, aggregated by credit quality indicator:

The following table summarizes the amortized cost of held-to maturity debt securities at December 31, 2025 and 2024 aggregated by credit quality indicator:

(Dollars in thousands)

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Credit rating:

December 31, 2024

Credit rating:

The following table presents gross unrealized losses, fair value of securities, aggregated by investment category, and length of time individual available-for-sale securities have been in a continuous unrealized loss position, on December 31 2025 and 2024:

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Available-for-sale

Treasury securities

Government agencies

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The majority of the Company’s loan portfolio consists of commercial and industrial and commercial real estate loans.

Credit concentrations, including commitments, as determined using North American Industry Classification Codes (NAICS), to the three largest industries compared to total loans at December 31, 2024 , included $ 77 million, or 10 % of total loans to lessors of non-residential buildings;

$ 37 million, or 5 %, of total loans to animal food producers;

and $ 30 million, or 4 % of total loans to construction, and equipment rental and leasing.

The Company has less than 2 % of total loans outstanding to loans secured by commercial office space.

These loans are generally secured by real property and equipment, with repayment expected from operational cash flow.

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Industrial, manufacturing and production $ 81 million;

warehouse $ 39 million;

healthcare facilities $ 39 million;

warehouses $ 37 million;

residential investment property $ 34 million;

retail strip center $ 17 million;

auto repair $ 15 million;

retail store $ 13 million;

senior housing $ 12 million;

animal feed production $ 25 million;

hotels $ 19 million;

nonfarm/nonresidential $ 10 million.

auto and trucking repair $ 19 million;

retail strip centers $ 18 million;

retail stores $ 17 million;

and office buildings $ 13 million.

The Company has less than 2 % of total loans outstanding to loans secured by commercial office space.

Allowance for Credit Losses

1 unchanged sentence

Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

During 2025, the increase in the provision for credit loss expense for commercial and industrial loans was primarily related to one loan relationship which had a $ 4 million valuation allowance established during fourth quarter 2025.

This commercial credit remains a performing asset and is collateral dependent through its continued operation.

The increase in provision for commercial real estate and commercial lessors of buildings loan categories is primarily due to the increase in loan volume.

The increase in the historical loss rate also contributed to the increased provision for commercial real estate loans.

The provision amounts in the remaining categories primarily relate to changes in loan volume.

During 2024, the increase in the provision for credit loss expense for commercial and industrial and commercial real estate loans was primarily related to one loan relationship which is in process of court liquidation.

2 unchanged sentences

The increase in the provision for consumer installment and consumer indirect loans is due to the increase in historical losses in this portfolio.

During 2023, ACL balances were affected by the adoption of ASC 326 which changed the methodology for calculating the allowance for credit losses.

These changes resulted in the addition of three new loan categories.

In addition to the new methodology changes, the decrease in the commercial real estate provision was primarily related to the payoff of one large loan relationship with a specific allocation and the improvement of other specifically evaluated loans.

The decrease in the provision for commercial and industrial loans was primarily due to the recovery of a prior loan charge off.

The increase in the provision for commercial lessors of buildings relates to the increase in loans graded special mention.

The increase in provision for consumer mortgages primarily relates to increased loan volume.

The increase in the consumer indirect category is due to the increase in charge-offs in this portfolio.

Summary of Allowance for Credit Losses on Loans

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Consumer indirect

Beginning ALL Balance

Impact of Adopting ASC 326

Provision for Credit Losses (Recovery)

Ending ACL Balance

December 31, 2024

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Consumer indirect

Interest income recognized on nonaccrual loans as of December 31, 2024 was $ 6 thousand on commercial real estate loans, $ 33 thousand on consumer mortgage loans, and $ 2 thousand on commercial & industrial loans.

Interest income recognized on nonaccrual loans as of December 31, 2025 was $ 2 thousand on commercial real estate loans, $ 29 thousand on consumer mortgage loans, $ 24 thousand on commercial & industrial loans, and $ 4 thousand on installment loans.

Several consumer mortgage loans on nonaccrual are at an amortized cost basis of $ 0 and all payments are being recognized as interest income when received.

2 unchanged sentences

The class of loan represents the primary collateral type associated with the loan.

There were no collateral dependent loans as of December 31, 2023.

The following table presents the amortized cost basis of collateral dependent loans by class of loan:

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Total collateral dependent loans

December 31, 2024

Commercial and industrial

Commercial real estate

Total collateral dependent loans

1 Balances include $ 3.5 million USDA guarantee.

2 Balances include $ 16.4 million USDA guarantee.

Credit Quality Indicators

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YTD gross charge-offs

1 Balances include $ 1.9 million USDA guarantee.

2 Balances include $ 16.4 million USDA guarantee.

The Company monitors the credit risk profile by payment activity for the loan classes listed below.

53 unchanged sentences

If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted.

There were no modifications of loans to borrowers in financial distress completed during the year ended December 31, 2024 and 2023.

There were two modifications of loans to borrowers experiencing financial difficulty completed during the year ended December 31, 2025 and no modifications of loans to borrowers experiencing financial difficulty completed during 2024.

Term Extension

(Dollars in thousands)

Amortized Cost Basis at December 31, 2025

% of Total Class of Financing Receivable

Home equity line of credit

Term Extension

Financial Effect

Home equity line of credit

Added a 5 year term extension to each of the loans

Real Estate Loans in Foreclosure

There was no other real estate owned on December 31, 2025, or 2024 .

Mortgage loans in the process of foreclosure were $ 74 thousand on December 31, 2024 and $ 8 thousand on December 31, 2023 .

Repossessed assets were $ 14 thousand on December 31, 2024, and there were no repossessed assets on December 31, 2023.

There were no mortgage loans in the process of foreclosure on December 31, 2025 and $ 74 thousand on December 31, 2024 .

There were no repossessed assets on December 31, 2025 , and $ 14 thousand on December 31, 2024.

Mortgage Servicing Rights

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If these extension options are considered reasonably certain of exercise, they are included in the lease term.

As of December 31, 2024 , operating lease ROU assets were $ 203 thousand, and lease liabilities were $ 196 thousand.

As of December 31, 2025 and 2024, operating lease ROU assets were $ 256 thousand and $ 203 thousand, and lease liabilities were $ 249 thousand and $ 196 thousand, respectively.

These amounts are included in other assets and other liabilities on the Consolidated Balance Sheets.

For the years ended December 31, 2024, and 2023 , CSB recognized $ 123 thousand, and $ 112 thousand in operating lease cost respectively, which are included in occupancy expense on the Consolidated Statements of Income.

The following table summarizes other information related to our operating leases:

For the years ended December 31, 2025, and 2024 , CSB recognized $ 129 thousand and $ 123 thousand in lease expense respectively, which is included in occupancy expense on the Consolidated Statements of Income.

Cash paid for ROU leases was $ 116 thousand and $ 111 thousand for the years ended December 31, 2025 and 2024, respectively.

The following table summarizes other information related to operating leases:

December 31, 2025

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Expected provision using statutory federal income tax rate

Effect of bond and loan tax-exempt income

Bank owned life insurance income

Nontaxable securities and loans income

Nontaxable bank owned life insurance income

Total income tax provision

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The Company recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Consolidated Statements of Income.

The Company is not subject to any foreign or state income taxes.

Federal income taxes of approximately $ 3.5 million were paid in 2025.

With few exceptions, the Company is no longer subject to U.S.

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The Company auto enrolls all eligible new hires into the Plan.

Expense under the Plan amounted to approximately $ 520 thousand and $ 809 thousand for 2024 and 2023, respectively.

Expense under the Plan amounted to approximately $ 1 million and $ 520 thousand for 2025 and 2024 , respectively.

As of December 31, 2025 and 2024 the Company had $ 520 thousand and $ 201 thousand accrued for profit sharing and matching contributions respectively.

The Company sponsors a non-qualified deferred compensation plan covering eligible officers.

Expense under the plan amounted to $ 7 thousand and $ 6 thousand in 2024 and 2023 , respectively.

Expense under the plan amounted to $ 7 thousand in both 2025 and 2024 , respectively.

NOTE 10 – FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK

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The Company had $ 596 thousand allowance for credit losses for unfunded loan commitments as of December 31, 2025 , and $ 524 thousand as of December 31, 2024 .

The decrease in the ACL for unfunded loan commitments was primarily due the removal of a specific allocation to a substandard relationship that is no longer outstanding and a decrease in unfunded commitments on commercial construction loans as of December 31, 2024.

The increase in the ACL for unfunded loan commitments was primarily due to the increase in balances of unfunded commitments on construction loans as well as commercial and industrial lines of credit as of December 31, 2025.

NOTE 11 – RELATED-PARTY TRANSACTIONS

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Net cash used in financing activities

Increase (decrease) in cash

Net increase in cash

Cash at beginning of year

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Securities held-to-maturity

Loans held for sale

Mortgage servicing rights

25 unchanged sentences

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

What changed 10-K

Item 8. Financial Statements and Supplementary Data