2 unchanged sentences
Consolidated Balance Sheets
−Removed: June 30, 2025 (unaudited) and December 31, 2024
+Added: September 30, 2025 (unaudited) and December 31, 2024
(derived from audited financial statements)
(in thousands, except share data)
−Removed: June 30, 2025 December 31, 2024
+Added: September 30, 2025 December 31, 2024
Cash and cash equivalents $ 82,431 $ 50,172
−Removed: Available for sale ("AFS") securities, at fair value (amortized cost of $ 155,503 , net of allowance for credit losses of $ 0 at June 30, 2025 and amortized cost of $ 165,604 , net of allowance for credit losses of $ 0 at December 31, 2024)
+Added: Available for sale ("AFS") securities, at fair value (amortized cost of $ 156,199 , net of allowance for credit losses of $ 0 at September 30, 2025 and amortized cost of $ 165,604 , net of allowance for credit losses of $ 0 at December 31, 2024)
137,639 142,851
−Removed: Held to maturity ("HTM") securities, at amortized cost (fair value of $ 65,012 , net of allowance for credit losses of $ 0 at June 30, 2025 and fair value of $ 65,622 , net of allowance for credit losses of $ 0 at December 31, 2024)
+Added: Held to maturity ("HTM") securities, at amortized cost (fair value of $ 64,879 , net of allowance for credit losses of $ 0 at September 30, 2025 and fair value of $ 65,622 , net of allowance for credit losses of $ 0 at December 31, 2024)
81,526 85,504
31 unchanged sentences
Consolidated Statements of Operations (unaudited)
−Removed: Three and Six Months Ended June 30, 2025 and 2024
+Added: Three and Nine Months Ended September 30, 2025 and 2024
(in thousands, except per share data)
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024
+Added: Three Months Ended Nine Months Ended
+Added: September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
Interest and dividend income:
42 unchanged sentences
Consolidated Statements of Comprehensive Income (unaudited)
−Removed: Three and Six months ended June 30, 2025 and 2024
+Added: Three and Nine months ended September 30, 2025 and 2024
(in thousands)
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024
+Added: Three Months Ended Nine Months Ended
+Added: September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
Net income attributable to common stockholders $ 3,682 $ 3,286 $ 10,149 $ 11,049
−Removed: Other comprehensive income (loss), net of tax:
+Added: Other comprehensive income, net of tax:
Securities available-for-sale
−Removed: Net unrealized gains (losses) arising during period, net of tax 81 503 1,536 ( 199 )
+Added: Net unrealized gains arising during period, net of tax 1,657 3,552 3,193 3,353
Reclassification for net loss on exchanged security, included in net income, net of tax — — — 130
−Removed: Other comprehensive income (loss), net of tax 81 633 1,536 ( 69 )
+Added: Other comprehensive income, net of tax 1,657 3,552 3,193 3,483
Comprehensive income $ 5,339 $ 6,838 $ 13,342 $ 14,532
2 unchanged sentences
Consolidated Statement of Changes in Stockholders’ Equity (unaudited)
−Removed: Six Months Ended June 30, 2025
+Added: Nine Months Ended September 30, 2025
(in thousands, except shares and per share data)
17 unchanged sentences
Balance at June 30, 2025 9,991,997 100 114,537 83,709 ( 14,884 ) 183,462
+Added: Net income — — — 3,682 — 3,682
+Added: Other comprehensive income, net of tax — — — — 1,657 1,657
+Added: Common stock repurchased ( 135,252 ) ( 1 ) ( 1,540 ) ( 478 ) — ( 2,019 )
+Added: Stock based compensation expense — — 33 — — 33
+Added: Balance, September 30, 2025 9,856,745 $ 99 $ 113,030 $ 86,913 $ ( 13,227 ) $ 186,815
See accompanying condensed notes to unaudited consolidated financial statements.
37 unchanged sentences
Consolidated Statements of Cash Flows (unaudited)
−Removed: Six Months Ended June 30, 2025 and 2024
+Added: Nine Months Ended September 30, 2025 and 2024
(in thousands)
−Removed: Six Months Ended
−Removed: June 30, 2025 June 30, 2024
+Added: Nine Months Ended
+Added: September 30, 2025 September 30, 2024
Cash flows from operating activities:
47 unchanged sentences
Cash dividends paid ( 3,598 ) ( 3,346 )
−Removed: Net cash from financing activities ( 18,459 ) ( 58,964 )
+Added: Net cash used in financing activities ( 33,340 ) ( 71,234 )
Net increase (decrease) in cash and cash equivalents 32,259 ( 506 )
24 unchanged sentences
Additionally, the Bank is subject to the regulations of certain regulatory agencies and undergoes periodic examination by those regulatory agencies.
−Removed: In preparing these consolidated financial statements, we evaluated the events and transactions that occurred subsequent to the balance sheet date of June 30, 2025, through the date on which the consolidated financial statements were available to be issued on August 7, 2025, for items that should potentially be recognized or disclosed in these consolidated financial statements.
+Added: In preparing these consolidated financial statements, we evaluated the events and transactions that occurred subsequent to the balance sheet date of September 30, 2025, through the date on which the consolidated financial statements were available to be issued on November 4, 2025, for items that should potentially be recognized or disclosed in these consolidated financial statements.
The accompanying consolidated interim financial statements are unaudited.
11 unchanged sentences
the matters described in Forward-Looking Statements in Part 1, Item 2 of the quarterly report on Form 10-Q for the quarter ended March 31, 2025, filed with the SEC on May 8, 2025;
+Added: the matters described in Forward-Looking Statements in Part 1, Item 2 of the quarterly report on Form 10-Q for the quarter ended June 30, 2025, filed with the SEC on August 7, 2025;
the matters described in Forward-Looking Statements in Part 1, Item 2 of this Form 10-Q;
27 unchanged sentences
The Company has elected to not measure an ACL on accrued interest on available for sale and held to maturity securities, as it would write off accrued interest in a timely manner if the related security was determined to have a credit loss.
−Removed: Accrued interest receivable on available-for-sale and held-to-maturity securities was $ 864 and $ 920 at June 30, 2025 and December 31, 2024, respectively.
−Removed: The Company has no available for sale securities or held to maturity securities which it deems to have a credit loss at June 30, 2025.
+Added: Accrued interest receivable on available-for-sale and held-to-maturity securities was $ 904 and $ 920 at September 30, 2025 and December 31, 2024, respectively.
+Added: The Company has no available for sale securities or held to maturity securities which it deems to have a credit loss at September 30, 2025.
Equity investments - The Company is required to maintain an investment in Federal Agricultural Mortgage Corporation (“Farmer Mac”) equity securities.
20 unchanged sentences
Based on management’s quarterly evaluation, no impairment has been recorded on these securities.
−Removed: Other investments totaling $ 12,379 at June 30, 2025, consisted of $ 3,738 of FHLB stock, $ 5,723 of Federal Reserve Bank stock and $ 2,918 of Bankers’ Bank stock.
+Added: Other investments totaling $ 12,370 at September 30, 2025, consisted of $ 3,727 of FHLB stock, $ 5,725 of Federal Reserve Bank stock and $ 2,918 of Bankers’ Bank stock.
Other investments totaling $ 12,500 at December 31, 2024, consisted of $ 3,865 of FHLB stock and $ 5,717 of Federal Reserve Bank stock and $ 2,918 of Bankers’ Bank stock.
55 unchanged sentences
The Company has elected to not measure an ACL on accrued interest as it writes off accrued interest in a timely manner.
−Removed: Accrued interest receivable on loans was $ 4,881 and $ 4,467 at June 30, 2025 and December 31, 2024, respectively.
+Added: Accrued interest receivable on loans was $ 4,775 and $ 4,467 at September 30, 2025 and December 31, 2024, respectively.
Allowance for Credit Losses - Unfunded Commitments - The ACL on unfunded commitments is a liability for credit losses on commitments to originate or fund loans, and standby letters of credit.
38 unchanged sentences
A reporting unit is defined as any distinct, separately identifiable component of the Company’s one operating segment for which complete, discrete financial information is available and reviewed regularly by the segment’s management.
−Removed: The Company has one reporting unit as of June 30, 2025, which is related to its banking activities.
+Added: The Company has one reporting unit as of September 30, 2025, which is related to its banking activities.
The impairment testing process is conducted by assigning net assets and goodwill to the Company’s reporting unit.
22 unchanged sentences
Prior to the adoption of ASU 2023-02 the investment was accounted for using the equity method of accounting and was amortized through non-interest expense.
−Removed: As of June 30, 2025, the carrying amount of this investment, which is included in other assets in the consolidated balance sheets, was $ 3,960 .
+Added: As of September 30, 2025, the carrying amount of this investment, which is included in other assets in the consolidated balance sheets, was $ 3,700 .
The risk of loss with this investment is limited to its carrying value and is tied to its ability to operate in compliance with the rules and regulations necessary for the qualification of the tax credit generated by the investment.
−Removed: As of June 30, 2025, there were no known instances of noncompliance associated with either investment.
+Added: As of September 30, 2025, there were no known instances of noncompliance associated with either investment.
Leases - We determine if an arrangement is a lease at inception.
11 unchanged sentences
These variable costs are recognized when incurred and are also included in lease expense.
−Removed: Federal Home Loan Bank (“FHLB”) advances - The Bank held no short-term or long-term FHLB advances as of June 30, 2025.
+Added: Federal Home Loan Bank (“FHLB”) advances - The Bank held no short-term or long-term FHLB advances as of September 30, 2025.
The Bank held no short-term FHLB advances and $ 5,000 long-term FHLB advances as of December 31, 2024.
14 unchanged sentences
Advertising, Marketing and Public Relations Expense— The Company expenses all advertising, marketing and public relations costs as they are incurred.
−Removed: Income Taxes – The Company accounts for income taxes in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (“ASC”) Topic 740, “Income Taxes.” Under this guidance, deferred taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of
−Removed: existing assets and liabilities and their respective tax basis.
+Added: Income Taxes – The Company accounts for income taxes in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (“ASC”) Topic 740, “Income Taxes.” Under this guidance, deferred taxes are
+Added: recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis.
Deferred tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
6 unchanged sentences
Accordingly, the Company’s evaluation is based on current tax laws as well as management’s expectations of future performance.
−Removed: The Company’s effective tax rates were 19.2 % and 22.1 % for the three months ended June 30, 2025 and June 30, 2024, respectively, and 19.4 % and 21.6 % for the six months ended June 30, 2025 and June 30, 2024, respectively.
+Added: The Company’s effective tax rates were 18.8 % and 21.5 % for the three months ended September 30, 2025 and September 30, 2024, respectively, and 19.2 % and 21.6 % for the nine months ended September 30, 2025 and September 30, 2024, respectively.
Revenue Recognition - The Company’s primary source of revenue is interest income from interest earning assets, which is recognized on the accrual basis of accounting using the effective interest method.
21 unchanged sentences
Earnings Per Share – Basic earnings per common share is net income or loss divided by the weighted average number of common shares outstanding during the period.
−Removed: Diluted earnings per common share includes the dilutive effect of additional
−Removed: potential common shares issuable during the period, consisting of stock options outstanding under the Company’s stock incentive plans that have an exercise price that is less than the Company’s stock price on the reporting date.
+Added: Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable during the period, consisting of stock options outstanding under the Company’s stock incentive plans that have an exercise price that is less than the Company’s stock price on the reporting date.
Loss Contingencies— Loss contingencies, including claims and legal actions arising in the normal course of business, are recorded as liabilities when the likelihood of loss is probable and an amount of loss can be reasonably estimated.
13 unchanged sentences
However, the fair value of the forward loan sale agreement related to such loan commitment should increase by substantially the same amount, effectively eliminating the Company’s interest rate and price risks.
−Removed: At June 30, 2025, the Company had $ 6,243 of loan commitments outstanding related to loans being originated for sale, all of which were subject to interest rate lock commitments and corresponding forward loan sale agreements, as described above.
−Removed: The net fair values of outstanding interest rate-lock commitments and forward sale agreements were considered immaterial to the Company’s consolidated financial statements as of June 30, 2025.
+Added: At September 30, 2025, the Company had $ 4,570 of loan commitments outstanding related to loans being originated for sale, all of which were subject to interest rate lock commitments and corresponding forward loan sale agreements, as described above.
+Added: The net fair values of outstanding interest rate-lock commitments and forward sale agreements were considered immaterial to the Company’s consolidated financial statements as of September 30, 2025.
Common Stock Repurchased -The Company is incorporated in Maryland.
8 unchanged sentences
Recent Accounting Pronouncements—Adopted
−Removed: ASU 2020-04 and ASU 2021-01, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting-- These ASUs provide optional and temporary relief, in the form of optional expedients and exceptions, for applying GAAP to modifications of contacts, hedging relationships and other transactions affected by reference
−Removed: LIBOR) reforms.
−Removed: ASU 2020-04 and ASU 2021-01 was effective immediately upon issuance and remained in effect through December 31, 2024.
−Removed: The Company utilizes LIBOR, among other indexes, as a reference rate for underwriting variable rate loans.
−Removed: Reference rate reform has not had, nor does the Company expect it to have, a material effect on the Company’s consolidated balance sheet, operations or cash flows.
−Removed: ASU 2023-06, Disclosure Improvements – Codification Amendments in Response to SEC’s Disclosure Update and Simplification Initiative – This ASU, issued in October 2023, provides for changes to clarify or improve consistency of disclosure and presentation requirements on a variety of topics.
−Removed: This ASU has various effective dates, coinciding with the SEC’s removal of each specific change from Regs S-X and S-K, with early adoption permitted.
−Removed: The Company has adopted all applicable disclosure requirements set forth in this update with no material impact on the Company’s financial condition or results of operations.
ASU 2023-07, Segment Reporting (Topic 820):
11 unchanged sentences
NOTE 2 – INVESTMENT SECURITIES
−Removed: The amortized cost and fair value of securities available for sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income as of June 30, 2025 and December 31, 2024, respectively, were as follows:
+Added: The amortized cost and fair value of securities available for sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income as of September 30, 2025 and December 31, 2024, respectively, were as follows:
Available-for-sale securities Amortized
Losses Estimated
−Removed: June 30, 2025
+Added: September 30, 2025
government agency obligations $ 11,502 $ 10 $ 80 $ 11,432
9 unchanged sentences
Total available-for-sale securities $ 165,604 $ 182 $ 22,935 $ 142,851
−Removed: The amortized cost and fair value of securities held to maturity and the corresponding amounts of gross unrecognized gains and losses as of June 30, 2025 and December 31, 2024, respectively, were as follows:
+Added: The amortized cost and fair value of securities held to maturity and the corresponding amounts of gross unrecognized gains and losses as of September 30, 2025 and December 31, 2024, respectively, were as follows:
Held-to-maturity securities Amortized
Losses Estimated
−Removed: June 30, 2025
+Added: September 30, 2025
Obligations of states and political subdivisions $ 400 $ — $ 15 $ 385
5 unchanged sentences
Total held-to-maturity securities $ 85,504 $ 4 $ 19,886 $ 65,622
−Removed: At June 30, 2025, the Bank has pledged certain of its mortgage-backed securities with a carrying value of $ 33,158 as collateral to secure a line of credit with the Federal Reserve Bank.
−Removed: As of June 30, 2025, there were no borrowings outstanding on this Federal Reserve Bank line of credit.
−Removed: As of June 30, 2025, the Bank has pledged certain of its U.S.
+Added: At September 30, 2025, the Bank has pledged certain of its mortgage-backed securities with a carrying value of $ 32,596 as collateral to secure a line of credit with the Federal Reserve Bank.
+Added: As of September 30, 2025, there were no borrowings outstanding on this Federal Reserve Bank line of credit.
+Added: As of September 30, 2025, the Bank has pledged certain of its U.S.
Government Agency securities with a carrying value of $ 220 and mortgage-backed securities with a carrying value of $ 1,850 as collateral against specific municipal deposits.
−Removed: As of June 30, 2025, the Bank also has mortgage-backed securities with a carrying value of $ 444 pledged as collateral to the Federal Home Loan Bank of Des Moines.
+Added: As of September 30, 2025, the Bank also has mortgage-backed securities with a carrying value of $ 419 pledged as collateral to the Federal Home Loan Bank of Des Moines.
At December 31, 2024 the Bank had pledged certain of its mortgage-backed securities with a carrying value of $ 33,994 as collateral to secure a line of credit with the Federal Reserve Bank.
3 unchanged sentences
As of December 31, 2024, the Bank also had mortgage-backed securities with a carrying value of $ 506 , pledged as collateral to the Federal Home Loan Bank of Des Moines.
−Removed: For the six month periods ended June 30, 2025, and June 30, 2024, there were no sales of available for sale securities.
−Removed: The estimated fair value of securities at June 30, 2025 and December 31, 2024, by contractual maturity, is shown below.
−Removed: June 30, 2025 December 31, 2024
+Added: For the nine month periods ended September 30, 2025, and September 30, 2024, there were no sales of available for sale securities.
+Added: The estimated fair value of securities at September 30, 2025 and December 31, 2024, by contractual maturity, is shown below.
+Added: September 30, 2025 December 31, 2024
Available-for-sale securities Amortized
9 unchanged sentences
Total available for sale securities $ 156,199 $ 137,639 $ 165,604 $ 142,851
−Removed: June 30, 2025 December 31, 2024
+Added: September 30, 2025 December 31, 2024
Held-to-maturity securities Amortized
4 unchanged sentences
Due after one year through five years 300 286 400 378
−Removed: Due after five years through ten years — — — —
Total securities with contractual maturities 400 385 500 478
1 unchanged sentence
Total held to maturity securities $ 81,526 $ 64,879 $ 85,504 $ 65,622
−Removed: Securities with unrealized losses at June 30, 2025 and December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
+Added: Securities with unrealized losses at September 30, 2025 and December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
Less than 12 Months 12 Months or More Total
3 unchanged sentences
Value Unrealized
−Removed: June 30, 2025
+Added: September 30, 2025
government agency obligations $ 2,262 $ 9 $ 6,208 $ 71 $ 8,470 $ 80
9 unchanged sentences
Total $ 9,143 $ 138 $ 118,004 $ 22,797 $ 127,147 $ 22,935
−Removed: At June 30, 2025 no ACL was established for available for sale or held to maturity securities.
+Added: At September 30, 2025 no ACL was established for available for sale or held to maturity securities.
Substantially all the held to maturity portfolio is made up of agency backed mortgage securities.
1 unchanged sentence
government, are highly rated by major rating agencies, and have a long history of no credit losses.
−Removed: At June 30, 2025, there were no past due held to maturity securities.
+Added: At September 30, 2025, there were no past due held to maturity securities.
Accordingly, the Company does not expect to incur credit losses on these securities.
32 unchanged sentences
Interest on substantially all loans is credited to income based on the principal amount outstanding.
−Removed: A summary of loans at June 30, 2025, and December 31, 2024, follows:
−Removed: June 30, 2025
+Added: A summary of loans at September 30, 2025, and December 31, 2024, follows:
+Added: September 30, 2025
December 31, 2024
38 unchanged sentences
This classification does not mean that the loan has absolutely no recovery or salvage value, and a partial recovery may occur in the future.
−Removed: As of June 30, 2025, and December 31, 2024, there were no loans classified as doubtful with a risk rating of 8 and no loans classified as loss with a risk rating of 9.
+Added: As of September 30, 2025, and December 31, 2024, there were no loans classified as doubtful with a risk rating of 8 and no loans classified as loss with a risk rating of 9.
Residential and consumer loans are typically not rated until they are past due 90 days at month-end which is why they are classified as pass graded 1-5 and once 90 days past due at month-end or nonaccrual, get assigned a grade 7.
−Removed: Below is a summary of the amortized cost of loans summarized by class, credit quality risk rating and year of origination as of June 30, 2025, and gross charge-offs for the six months ended June 30, 2025:
+Added: Below is a summary of the amortized cost of loans summarized by class, credit quality risk rating and year of origination as of September 30, 2025, and gross charge-offs for the nine months ended September 30, 2025:
Amortized Cost Basis by Origination Year
138 unchanged sentences
The Company estimates the appropriate level of allowance for credit losses by evaluating loans collectively on a pooled basis when similar risk characteristics exist, and on an individual basis when management determines that a loan does not share similar risk characteristics with other loans.
−Removed: The following tables present the balance and activity in the allowance for credit losses (“ACL”) - loans by portfolio segment for the three and six months ended June 30, 2025:
+Added: The following tables present the balance and activity in the allowance for credit losses (“ACL”) - loans by portfolio segment for the three and nine months ended September 30, 2025:
Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Total
−Removed: Three months ended June 30, 2025
+Added: Three months ended September 30, 2025
Allowance for Credit Losses - Loans:
5 unchanged sentences
Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Total
−Removed: Six months ended June 30, 2025
+Added: Nine months ended September 30, 2025
Allowance for Credit Losses - Loans:
4 unchanged sentences
ACL - Loans, at end of period $ 17,552 $ 2,144 $ 2,323 $ 163 $ 22,182
−Removed: The following table presents the balance and activity in the allowance for credit losses (“ACL”) - loans by portfolio segment for the three and six months ended June 30, 2024:
+Added: The following table presents the balance and activity in the allowance for credit losses (“ACL”) - loans by portfolio segment for the three and nine months ended September 30, 2024:
Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Total
−Removed: Three months ended June 30, 2024
+Added: Three months ended September 30, 2024
Allowance for Credit Losses - Loans:
5 unchanged sentences
Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Total
−Removed: Six months ended June 30, 2024
+Added: Nine months ended September 30, 2024
Allowance for Credit Losses - Loans:
4 unchanged sentences
ACL - Loans, at end of period $ 16,923 $ 1,351 $ 2,494 $ 232 $ 21,000
−Removed: Allowance for Credit Losses - Unfunded Commitments - In addition to the ACL - Loans, the Company has established an ACL - Unfunded Commitments of $ 627 at June 30, 2025, and $ 334 at December 31, 2024, classified in other liabilities on the consolidated balance sheets.
−Removed: The following table presents the balance and activity in the ACL - Unfunded Commitments for the three and six months ended June 30, 2025, and the twelve months ended December 31, 2024.
−Removed: June 30, 2025 and Three Months Ended June 30, 2025 and Six Months Ended
+Added: Allowance for Credit Losses - Unfunded Commitments - In addition to the ACL - Loans, the Company has established an ACL - Unfunded Commitments of $ 493 at September 30, 2025, and $ 334 at December 31, 2024, classified in other liabilities on the consolidated balance sheets.
+Added: The following table presents the balance and activity in the ACL - Unfunded Commitments for the three and nine months ended September 30, 2025.
+Added: September 30, 2025 and Three Months Ended September 30, 2025 and Nine Months Ended
ACL - Unfunded Commitments - beginning of period $ 627 $ 334
3 unchanged sentences
The following table presents the components of the provision for credit losses.
−Removed: June 30, 2025 and Three Months Ended June 30, 2024 and Three Months Ended June 30, 2025 and Six Months Ended June 30, 2024 and Six Months Ended
+Added: September 30, 2025 and Three Months Ended September 30, 2024 and Three Months Ended September 30, 2025 and Nine Months Ended September 30, 2024 and Nine Months Ended
Provision for credit losses on:
2 unchanged sentences
Total provision for credit losses $ 650 $ ( 400 ) $ 1,750 $ ( 2,725 )
−Removed: An aging analysis of the Company’s commercial/agricultural real estate, C&I, agricultural operating, residential mortgage, consumer installment and purchased third party loans as of June 30, 2025, and December 31, 2024, respectively, was as follows:
+Added: An aging analysis of the Company’s commercial/agricultural real estate, C&I, agricultural operating, residential mortgage, consumer installment and purchased third party loans as of September 30, 2025, and December 31, 2024, respectively, was as follows:
(Loan balances at amortized cost) 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total
Past Due Current Total
−Removed: June 30, 2025
+Added: September 30, 2025
Commercial/Agricultural real estate:
31 unchanged sentences
Total $ 3,374 $ 1,168 $ 2,897 $ 7,439 $ 1,361,542 $ 1,368,981
−Removed: Nonaccrual Loans - The following tables present the amortized cost basis of loans on nonaccrual status and of nonaccrual loans individually evaluated at June 30, 2025, December 31, 2024, and June 30, 2024, with no allowance for credit losses:
−Removed: June 30, 2025 Total Nonaccrual Loans Nonaccrual with no Allowance for Credit Losses Loans Past Due over 89 Days Still Accruing
+Added: Nonaccrual Loans - The following tables present the amortized cost basis of loans on nonaccrual status, of nonaccrual loans individually evaluated and of loans past due over 89 days and still accruing at September 30, 2025 and December 31, 2024, with no allowance for credit losses:
+Added: September 30, 2025 Total Nonaccrual Loans Nonaccrual with no Allowance for Credit Losses Loans Past Due over 89 Days Still Accruing
Commercial/Agricultural real estate:
1 unchanged sentence
Agricultural real estate 220 22 —
+Added: Multi-family real estate 8,970 — —
C&I/Agricultural operating:
3 unchanged sentences
Purchased HELOC loans 117 117 —
+Added: Consumer installment:
+Added: Other consumer — — 2
Total $ 15,614 $ 5,263 $ 136
26 unchanged sentences
For collateral dependent loans, expected credit losses are based on the fair value of the collateral at the balance sheet date, with consideration for estimated selling costs if satisfaction of the loan depends on the sale of the collateral.
−Removed: The following tables present the amortized cost basis of collateral dependent loans by portfolio segment and collateral type that were individually evaluated to determine expected credit losses and the related allowance for credit losses as of June 30, 2025, and December 31, 2024.
+Added: The following tables present the amortized cost basis of collateral dependent loans by portfolio segment and collateral type that were individually evaluated to determine expected credit losses and the related allowance for credit losses as of September 30, 2025, and December 31, 2024.
Collateral Type
−Removed: June 30, 2025 Real Estate Other Assets Total Without an Allowance With an Allowance Allowance Allocation
+Added: September 30, 2025 Real Estate Other Assets Total Without an Allowance With an Allowance Allowance Allocation
Commercial/Agricultural real estate:
1 unchanged sentence
Agricultural real estate 220 — 220 23 197 99
+Added: Multi-family real estate 8,970 — 8,970 — 8,970 934
C&I/Agricultural operating:
22 unchanged sentences
Total $ 18,395 $ 2,626 $ 21,021 $ 17,459 $ 3,562 $ 455
−Removed: There were no outstanding commitments to borrowers experiencing financial difficulty as of June 30, 2025.
−Removed: There were unused lines of credit totaling $ 29 on loans with borrowers experiencing financial difficulties as of June 30, 2025.
−Removed: The tables below detail Loan Modifications Made to Borrowers Experiencing Financial Difficulty during the three months ended June 30, 2025:
−Removed: Term Extension
−Removed: Loan Class Amortized Cost Basis at June 30, 2025 % of Total Class of Financing Receivables
−Removed: Commercial real estate $ 164 0.02 %
−Removed: Other-Than-Insignificant Payment Delay
−Removed: Loan Class Amortized Cost Basis at June 30, 2025 % of Total Class of Financing Receivables
−Removed: Commercial real estate $ 4,263 0.62 %
−Removed: Agricultural real estate $ 200 0.29 %
−Removed: The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2025:
−Removed: Term Extension
−Removed: Loan Class Financial Effect
−Removed: Commercial real estate A weighted average of 2 months was added to the term of the loan
−Removed: Other-Than-Insignificant Payment Delay
−Removed: Loan Class Financial Effect
−Removed: Commercial real estate Payments were deferred a weighted average of 3 months
−Removed: Agricultural real estate Payments were deferred a weighted average of 9 months
−Removed: The tables below detail Loan Modifications made to Borrowers Experiencing Financial Difficulty during the twelve months ended June 30, 2025:
+Added: There were no outstanding commitments to borrowers experiencing financial difficulty as of September 30, 2025.
+Added: There were no unused lines of credit on loans with borrowers experiencing financial difficulties as of September 30, 2025.
+Added: There were no Loan Modifications Made to Borrowers Experiencing Financial Difficulty during the three months ended September 30, 2025.
+Added: The tables below detail Loan Modifications made to Borrowers Experiencing Financial Difficulty during the twelve months ended September 30, 2025:
Term Extension
−Removed: Loan Class Amortized Cost Basis at June 30, 2025 % of Total Class of Financing Receivables
−Removed: Commercial real estate $ 164 0.02 %
+Added: Loan Class Amortized Cost Basis at September 30, 2025 % of Total Class of Financing Receivables
Commercial and industrial $ 646 0.64 %
2 unchanged sentences
Other-Than-Insignificant Payment Delay
−Removed: Loan Class Amortized Cost Basis at June 30, 2025 % of Total Class of Financing Receivables
+Added: Loan Class Amortized Cost Basis at September 30, 2025 % of Total Class of Financing Receivables
Commercial real estate $ 4,263 0.62 %
2 unchanged sentences
Term Extension and Principal Forgiveness
−Removed: Loan Class Amortized Cost Basis at June 30, 2025 % of Total Class of Financing Receivables
+Added: Loan Class Amortized Cost Basis at September 30, 2025 % of Total Class of Financing Receivables
Other consumer $ 1 0.02 %
−Removed: The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty during the twelve months ended June 30, 2025:
+Added: The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty during the twelve months ended September 30, 2025:
Term Extension
Loan Class Financial Effect
−Removed: Commercial real estate A weighted average of 2 months was added to the term of the loans
Commercial and industrial A weighted average of 13 months was added to the term of the loans
9 unchanged sentences
Other consumer A weighted average of 3 months was added to the term of the loan and a principal balance of $ 2 was forgiven
−Removed: The tables below detail Loan Modifications Made to Borrowers Experiencing Financial Difficulty during the three months ended June 30, 2024:
−Removed: Other-Than-Insignificant Payment Delay
−Removed: Loan Class Amortized Cost Basis at
−Removed: June 30, 2024 % of Total Class of Financing Receivables
−Removed: Commercial and industrial $ 920 0.72 %
+Added: The tables below detail Loan Modifications Made to Borrowers Experiencing Financial Difficulty during the three months ended September 30, 2024:
+Added: Term Extension
+Added: Loan Class Amortized Cost Basis at September 30, 2024 % of Total Class of Financing Receivables
Residential mortgage $ 5 — %
−Removed: The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2024:
+Added: Other consumer $ 1 0.02 %
Other-Than-Insignificant Payment Delay
+Added: Loan Class Amortized Cost Basis at September 30, 2024 % of Total Class of Financing Receivables
+Added: Commercial real estate $ 1,182 0.16 %
+Added: The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty during the three months ended September 30, 2024:
+Added: Term Extension
Loan Class Financial Effect
−Removed: Commercial and industrial Payments were deferred a weighted average of 3 months
−Removed: Residential mortgage Payments were deferred a weighted average of 3 months
−Removed: The tables below detail Loan Modifications Made to Borrowers Experiencing Financial Difficulty during the twelve months ended June 30, 2024:
+Added: Residential mortgage A weighted average of 36 months was added to the term of the loans
+Added: Other consumer A weighted average of 12 months was added to the term of the loans
+Added: Other-Than-Insignificant Payment Delay
+Added: Loan Class Financial Effect
+Added: Commercial real estate Payments were deferred a weighted average of 3 months
+Added: The tables below detail Loan Modifications Made to Borrowers Experiencing Financial Difficulty during the twelve months ended September 30, 2024:
Term Extension
−Removed: Loan Class Amortized Cost Basis at
−Removed: June 30, 2024 % of Total Class of Financing Receivables
−Removed: Commercial real estate $ 4,434 0.61 %
+Added: Loan Class Amortized Cost Basis at September 30, 2024 % of Total Class of Financing Receivables
Commercial and industrial $ 1,500 1.26 %
+Added: Residential mortgage $ 5 — %
+Added: Other consumer $ 1 0.02 %
Other-Than-Insignificant Payment Delay
−Removed: Loan Class Amortized Cost Basis at
−Removed: June 30, 2024 % of Total Class of Financing Receivables
+Added: Loan Class Amortized Cost Basis at September 30, 2024 % of Total Class of Financing Receivables
+Added: Commercial real estate $ 1,182 0.16 %
Commercial and industrial $ 836 0.70 %
Residential mortgage $ 240 0.18 %
−Removed: The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty during the twelve months ended June 30, 2024:
+Added: The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty during the twelve months ended September 30, 2024:
Term Extension
Loan Class Financial Effect
−Removed: Commercial real estate A weighted average of 20 months was added to the term of the loans
Commercial and industrial A weighted average of 11 months was added to the term of the loans
+Added: Residential mortgage A weighted average of 36 months was added to the term of the loans
+Added: Other consumer A weighted average of 12 months was added to the term of the loans
Other-Than-Insignificant Payment Delay
Loan Class Financial Effect
+Added: Commercial real estate Payments were deferred a weighted average of 3 months
Commercial and industrial Payments were deferred a weighted average of 3 months
1 unchanged sentence
The Company closely monitors the performance of loans that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.
−Removed: The following table shows the performance of such loans that have been modified during the twelve months ended June 30, 2025.
+Added: The following table shows the performance of such loans that have been modified during the twelve months ended September 30, 2025.
Current 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due
6 unchanged sentences
Total $ 5,075 $ 317 $ — $ 48
−Removed: The following table shows the performance of such loans that have been modified during the twelve months ended June 30, 2024.
+Added: The following table shows the performance of such loans that have been modified during the twelve months ended September 30, 2024.
Current 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due
2 unchanged sentences
Residential mortgage 163 — 82 —
+Added: Other consumer 1 — — —
Total $ 3,682 $ — $ 82 $ —
1 unchanged sentence
Mortgage servicing rights-- Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets.
−Removed: The unpaid balances of these loans as of June 30, 2025 and December 31, 2024 were $ 475,220 and $ 479,578 , respectively, and consisted of one to four family residential real estate loans.
+Added: The unpaid balances of these loans as of September 30, 2025 and December 31, 2024 were $ 475,854 and $ 479,578 , respectively, and consisted of one to four family residential real estate loans.
These loans are serviced primarily for the Federal Home Loan Mortgage Corporation, Federal Home Loan Bank and the Federal National Mortgage Association.
−Removed: Custodial escrow balances maintained in connection with the foregoing loan servicing, and included in deposits were $ 4,798 and $ 2,430 at June 30, 2025 and December 31, 2024, respectively.
−Removed: Mortgage servicing rights activity for the three and six month periods ended June 30, 2025 and June 30, 2024, were as follows:
−Removed: As of and for the Three Months Ended As of and for the Three Months Ended As of and for the Six Months Ended As of and for the Six Months Ended
−Removed: June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024
+Added: Custodial escrow balances maintained in connection with the foregoing loan servicing, and included in deposits were $ 6,537 and $ 2,430 at September 30, 2025 and December 31, 2024, respectively.
+Added: Mortgage servicing rights activity for the three and nine month periods ended September 30, 2025 and September 30, 2024, were as follows:
+Added: As of and for the Three Months Ended As of and for the Three Months Ended As of and for the Nine Months Ended As of and for the Nine Months Ended
+Added: September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
Mortgage servicing rights:
12 unchanged sentences
The current period change in valuation allowance, if applicable, is included in non-interest expense as mortgage servicing rights expense, net on the consolidated statement of operations.
−Removed: Servicing fees totaled $ 301 and $ 310 for the three months ended June 30, 2025 and June 30, 2024, respectively.
−Removed: Servicing fees totaled $ 602 and $ 621 for the six months ended June 30, 2025 and June 30, 2024, respectively.
+Added: Servicing fees totaled $ 300 and $ 308 for the three months ended September 30, 2025 and September 30, 2024, respectively.
+Added: Servicing fees totaled $ 902 and $ 929 for the nine months ended September 30, 2025 and September 30, 2024, respectively.
Servicing fees are included in loan servicing income on the consolidated statement of operations.
3 unchanged sentences
Central to the valuation model is the discount rate.
−Removed: Fair value at June 30, 2025, was determined using discount rates ranging from 9.5 % to 12.5 %.
−Removed: Fair value at June 30, 2024, was determined using discount rates ranging from 9.9 % to 12.9 %.
+Added: Fair value at September 30, 2025, was determined using discount rates ranging from 9.500 % to 12.500 %.
+Added: Fair value at September 30, 2024, was determined using discount rates ranging from 9.125 % to 12.125 %.
Other assumptions utilized in the valuation model include, but are not limited to, prepayment speed, servicing costs, delinquencies, costs of advances, foreclosure costs, ancillary income, and income earned on float and escrow.
3 unchanged sentences
Some of the leases include an option to extend, the longest of which is for two 5 year terms.
−Removed: As of June 30, 2025, we have no lease commitments that have not yet commenced and one lease commitment extension beginning on October 1, 2025.
+Added: As of September 30, 2025, we have no lease commitments that have not yet commenced and one lease commitment extension beginning on October 1, 2025.
The Company also leases a portion of some of its facilities and receives rental income from such lease agreements, all of which are considered operating leases.
Three Months Ended
−Removed: June 30, 2025 June 30, 2024
+Added: September 30, 2025 September 30, 2024
The components of total lease cost were as follows:
7 unchanged sentences
Operating cash flows from operating leases $ 380 $ 412
−Removed: June 30, 2025 December 31, 2024
+Added: Right-of-use assets obtained in exchange for lease obligations:
+Added: Operating leases $ — $ 2
+Added: September 30, 2025 December 31, 2024
Supplemental balance sheet information related to leases was as follows:
14 unchanged sentences
NOTE 6 – DEPOSITS
−Removed: The following is a summary of deposits by type at June 30, 2025 and December 31, 2024, respectively:
−Removed: June 30, 2025 December 31, 2024
+Added: The following is a summary of deposits by type at September 30, 2025 and December 31, 2024, respectively:
+Added: September 30, 2025 December 31, 2024
Non-interest bearing demand deposits $ 262,535 $ 252,656
4 unchanged sentences
Total deposits $ 1,480,554 $ 1,488,148
−Removed: At June 30, 2025, the scheduled maturities of certificate accounts were as follows for the year ended, except December 31, 2025, which is the six months ended:
+Added: At September 30, 2025, the scheduled maturities of certificate accounts were as follows for the year ended, except December 31, 2025, which is the three months ended:
December 31, 2025 $ 95,047
5 unchanged sentences
Total $ 345,937
−Removed: Certificate accounts of $250 or more were $ 50,625 and $ 68,977 at June 30, 2025 and December 31, 2024, respectively.
−Removed: Brokered deposits were $ 5,092 at June 30, 2025 and consisted of no brokered certificate accounts and $ 5,092 of brokered money market accounts.
+Added: Certificate accounts of $250 or more were $ 56,107 and $ 68,977 at September 30, 2025 and December 31, 2024, respectively.
+Added: Brokered deposits were $ 5,131 at September 30, 2025 and consisted of no brokered certificate accounts and $ 5,131 of brokered money market accounts.
Brokered Deposits were $ 19,125 at December 31, 2024 and consisted of $ 14,123 of brokered certificate accounts and $ 5,002 of brokered money market accounts.
−Removed: During the quarter ended June 30, 2025, there was one brokered certificate account, totaling $ 5,489 , maturing in the year ended, December 31, 2028, that was called by the Company, and during the quarter ended March 31, 2025, there was one brokered certificate totaling $ 3,450 , maturing in the year ended, December 31, 2025, that was called by the Company.
+Added: During the nine months ended September 30, 2025, there was one brokered certificate account, totaling $ 5,489 , maturing in the year ended, December 31, 2028, that was called by the Company, and there was one brokered certificate totaling $ 3,450 , maturing in the year ended, December 31, 2025, that was called by the Company.
NOTE 7 – FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS
−Removed: A summary of Federal Home Loan Bank advances and other borrowings at June 30, 2025 and December 31, 2024, is as follows:
−Removed: June 30, 2025
+Added: A summary of Federal Home Loan Bank advances and other borrowings at September 30, 2025 and December 31, 2024, is as follows:
+Added: September 30, 2025
December 31, 2024
9 unchanged sentences
Totals $ 46,762 $ 66,606
−Removed: (1) The FHLB advance shown is a fixed rate advance, requires interest-only monthly payments, and is collateralized by a blanket lien on pre-qualifying first mortgages, home equity lines, multi-family loans and certain other loans which had a pledged balance of $ 1,027,330 and $ 1,075,001 at June 30, 2025 and December 31, 2024, respectively.
−Removed: At June 30, 2025, the Bank’s available and unused portion under the FHLB borrowing arrangement was approximately $ 424,392 compared to $ 424,658 as of December 31, 2024.
−Removed: (2) Maximum month-end borrowed amounts outstanding under this borrowing agreement were $ 5,000 and $ 81,000 , during the six months ended June 30, 2025 and the twelve months ended December 31, 2024, respectively.
−Removed: (3) There were no FHLB borrowings outstanding as of June 30, 2025.
+Added: (1) FHLB advances require interest-only monthly payments and are collateralized by a blanket lien on pre-qualifying first mortgages, home equity lines, multi-family loans and certain other loans which had a pledged balance of $ 1,028,745 and $ 1,075,001 at September 30, 2025 and December 31, 2024, respectively.
+Added: At September 30, 2025, the Bank’s available and unused portion under the FHLB borrowing arrangement was approximately $ 414,386 compared to $ 424,658 as of December 31, 2024.
+Added: (2) Maximum month-end borrowed amounts outstanding under this borrowing agreement were $ 5,000 and $ 81,000 , during the nine months ended September 30, 2025 and the twelve months ended December 31, 2024, respectively.
+Added: (3) There were no FHLB borrowings outstanding as of September 30, 2025.
The weighted-average interest rate on FHLB borrowings, with maturities less than twelve months, outstanding as of December 31, 2024 was 1.45 %.
(4) Senior notes, entered into by the Company in June 2019 consist of the following:
−Removed: (a) A term note, which was subsequently refinanced in March 2022, modified in February of 2023, and refinanced in May 2024, requiring quarterly interest-only payments through January 2029, and quarterly principal and interest payments thereafter.
+Added: (a) A term note, which was subsequently refinanced in March 2022, modified in February of 2023, requiring quarterly interest-only payments through January 2029, and quarterly principal and interest payments thereafter.
Interest is variable, based on US Prime rate minus 75 basis points with a floor rate of 3.00 %.
−Removed: (b) A $ 5,000 line of credit, maturing August 1, 2025, that remains undrawn upon.
+Added: (b) A $ 5,000 line of credit, maturing August 1, 2026, that remains undrawn upon, and was renewed for a term of one year on August 1, 2025..
(5) Subordinated notes resulted from the following:
−Removed: (a) The Company’s Subordinated Note Purchase Agreement entered into with certain purchasers in August 2020, which bears a fixed interest rate of 6.00 % for five years .
−Removed: The note is callable by the Bank when, and anytime after, the floating rate is initially set.
+Added: (a) The Company’s Subordinated Note Purchase Agreement entered into with certain purchasers in August 2020, which bore a fixed interest rate of 6.00 % for five years .
On July 7, 2025, the Board of Directors approved the redemption of the entire $ 15,000 balance of the 6 % subordinated debentures due September 1, 2030, which were scheduled to reprice on September 1, 2025, to SOFR plus 591 basis points.
−Removed: The redemption will occur on September 1, 2025.
+Added: The redemption occurred on September 1, 2025.
(b) The Company’s Subordinated Note Purchase Agreement entered into with certain purchasers in March 2022, which bears a fixed interest rate of 4.75 % for five years .
−Removed: In April 2027, the fixed interest rate will be reset quarterly to equal the three-month term SOFR plus 329 basis points.
−Removed: The note is callable by the Bank when, and anytime after, the floating rate is
−Removed: initially set.
+Added: In April 2027, the fixed interest rate will be reset quarterly to equal the
+Added: three-month term SOFR plus 329 basis points.
+Added: The note is callable by the Bank when, and anytime after, the floating rate is initially set.
Interest-only payments are due semi-annually each year during the fixed interest period and quarterly during the floating interest period.
2 unchanged sentences
This irrevocable standby letter of credit (“LOC”) is supported by loan collateral as an alternative to directly pledging investment securities on behalf of a municipal customer as collateral for their interest bearing deposit balances.
−Removed: The letters of credit balances were $ 110,750 and $ 209,750 at June 30, 2025 and December 31, 2024, respectively.
+Added: The letters of credit balances were $ 198,700 and $ 209,750 at September 30, 2025 and December 31, 2024, respectively.
Federal Reserve Borrowings
−Removed: At June 30, 2025 and December 31, 2024, the Bank had the ability to borrow $ 24,665 and $ 24,942 from the Federal Reserve Bank of Minneapolis.
−Removed: The ability to borrow is based on mortgage-backed securities pledged with a carrying value of $ 33,158 and $ 33,994 as of June 30, 2025, and December 31, 2024, respectively.
−Removed: There were no Federal Reserve borrowings outstanding as of June 30, 2025, and December 31, 2024.
+Added: At September 30, 2025 and December 31, 2024, the Bank had the ability to borrow $ 24,784 and $ 24,942 from the Federal Reserve Bank of Minneapolis.
+Added: The ability to borrow is based on mortgage-backed securities pledged with a carrying value of $ 32,596 and $ 33,994 as of September 30, 2025, and December 31, 2024, respectively.
+Added: There were no Federal Reserve borrowings outstanding as of September 30, 2025, and December 31, 2024.
Federal Funds Purchased Lines of Credit
−Removed: As of June 30, 2025, the Bank maintains two unsecured federal funds purchased lines of credit with its banking partners which total $ 70,000 .
+Added: As of September 30, 2025, the Bank maintains two unsecured federal funds purchased lines of credit with its banking partners which total $ 70,000 .
As of December 31, 2024, the Bank maintained three unsecured federal funds purchased lines of credit with its banking partners which totaled $ 70,000 .
These lines bear interest at the lender bank’s announced daily federal funds rate, mature daily and are revocable at the discretion of the lending institution.
−Removed: There were no borrowings outstanding on these lines of credit as of June 30, 2025 or December 31, 2024.
+Added: There were no borrowings outstanding on these lines of credit as of September 30, 2025 or December 31, 2024.
NOTE 8 - CAPITAL MATTERS
7 unchanged sentences
If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required.
−Removed: At June 30, 2025, the Bank was categorized as “Well Capitalized”, under Prompt Corrective Action Provisions.
−Removed: The Bank’s Tier 1 (leverage) and risk-based capital ratios at June 30, 2025, and December 31, 2024, respectively, are presented below:
+Added: At September 30, 2025, the Bank was categorized as “Well Capitalized”, under Prompt Corrective Action Provisions.
+Added: The Bank’s Tier 1 (leverage) and risk-based capital ratios at September 30, 2025, and December 31, 2024, respectively, are presented below:
Actual For Capital Adequacy
3 unchanged sentences
Amount Ratio Amount Ratio Amount Ratio
−Removed: As of June 30, 2025
+Added: As of September 30, 2025
Total capital (to risk weighted assets) $ 227,075 15.9 % $ 114,476 > = 8.0 % $ 143,095 > = 10.0 %
7 unchanged sentences
Tier 1 leverage ratio (to adjusted total assets) 207,749 11.9 % 69,787 > = 4.0 % 87,234 > = 5.0 %
−Removed: The Company’s Tier 1 (leverage) and risk-based capital ratios at June 30, 2025 and December 31, 2024, respectively, are presented below:
+Added: The Company’s Tier 1 (leverage) and risk-based capital ratios at September 30, 2025, and December 31, 2024, respectively, are presented below:
Actual For Capital Adequacy
Amount Ratio Amount Ratio
−Removed: As of June 30, 2025
+Added: As of September 30, 2025
Total capital (to risk weighted assets) $ 222,117 15.5 % $ 114,654 > = 8.0 %
11 unchanged sentences
The aggregate number of shares of common stock initially reserved and available for issuance under the 2018 Equity Incentive Plan was 350,000 shares.
−Removed: As of June 30, 2025, 331,968 restricted shares had been granted under this plan.
+Added: As of September 30, 2025, 331,968 restricted shares had been granted under this plan.
This amount includes 16,021 shares of performance based restricted stock granted in 2022 and issued in January 2025 upon achievement of the performance criteria and completion of the three-year performance period beginning in January 2022 and ending December 31, 2024.
The amount also includes 8,805 shares of performance based restricted stock granted in 2021 and issued in January 2024 upon achievement of the performance criteria and completion of the three year performance period beginning in January 2021 and ending December 31, 2023.
−Removed: As of June 30, 2025, no stock options had been granted under this plan.
+Added: As of September 30, 2025, no stock options had been granted under this plan.
In February 2008, the Company’s stockholders approved the Company’s 2008 Equity Incentive Plan for a term of 10 years.
Due to the plan’s expiration, no new awards can be granted under this plan.
−Removed: As of June 30, 2025, there are no awarded unvested restricted shares, and 49,000 awarded unexercised vested options remaining from the plan.
+Added: As of September 30, 2025, there are no awarded unvested restricted shares, and 49,000 awarded unexercised vested options remaining from the plan.
Options granted under this plan vested pro rata over a five-year period from the grant date and were fully vested as of October 2022.
Unexercised incentive stock options expire within 10 years of the grant date.
−Removed: Stock based compensation expense related to restricted stock awards from these plans was $ 34 and $ 102 for the three and six months ended June 30, 2025, compared to $ 158 and $ 316 for the three and six months ended June 30, 2024.
+Added: Stock based compensation expense related to restricted stock awards from these plans was $ 33 and $ 135 for the three and nine months ended September 30, 2025, compared to $ 159 and $ 475 for the three and nine months ended September 30, 2024.
Restricted Common Stock Award
−Removed: June 30, 2025 December 31, 2024
+Added: September 30, 2025 December 31, 2024
Number of Shares Weighted
6 unchanged sentences
Unvested and outstanding at end of period 6,109 $ 12.36 39,171 $ 12.48
−Removed: June 30, 2025
+Added: September 30, 2025
Number of Shares Weighted
15 unchanged sentences
Term in Years Aggregate
−Removed: June 30, 2025
+Added: September 30, 2025
Outstanding at beginning of year 52,000 $ 11.62
8 unchanged sentences
Information related to the 2008 Equity Incentive Plan for the respective periods follows:
−Removed: Six months ended June 30, 2025 Twelve months ended December 31, 2024
+Added: Nine months ended September 30, 2025 Twelve months ended December 31, 2024
Intrinsic value of options exercised $ 26 $ 12
17 unchanged sentences
At the end of each reporting period, the Company estimates its potential liability related to the Plan and records any change to this liability as compensation expense in the consolidated statement of operations.
−Removed: At June 30, 2025 and December 31, 2024, the related liability was $ 222 and $ 190 , respectively, which is included in other liabilities on the consolidated balance sheet.
−Removed: For the three months ended June 30, 2025 and June 30, 2024, the Company recorded related expense of $ 72 and $ 37 , respectively, which is included in compensation and related benefits/non-interest expense on the Company’s consolidated statement of operations.
−Removed: For the six months ended June 30, 2025 and June 30, 2024, the Company recorded related expense of $ 131 and $ 63 , respectively, which is included in compensation and related benefits/non-interest expense on the Company’s consolidated statement of operations.
+Added: At September 30, 2025 and December 31, 2024, the related liability was $ 350 and $ 190 , respectively, which is included in other liabilities on the consolidated balance sheet.
+Added: For the three months ended September 30, 2025 and September 30, 2024, the Company recorded related expense of $ 128 and $ 58 , respectively, which is included in compensation and related benefits/non-interest expense on the Company’s consolidated statement of operations.
+Added: For the nine months ended September 30, 2025 and September 30, 2024, the Company recorded related expense of $ 259 and $ 121 , respectively, which is included in compensation and related benefits/non-interest expense on the Company’s consolidated statement of operations.
NOTE 10 – FAIR VALUE ACCOUNTING
11 unchanged sentences
Assets Measured on a Recurring Basis
−Removed: The following tables present the financial instruments measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024:
+Added: The following tables present the financial instruments measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024:
Value Quoted Prices in
3 unchanged sentences
(Level 2) Significant
−Removed: June 30, 2025
+Added: September 30, 2025
Investment securities:
24 unchanged sentences
(1) Investments valued at NAV are excluded from being reported under the fair value hierarchy but are presented to permit reconciliation with the balance sheet in accordance with ASC 820-10-35-54B.
−Removed: During the three months ended June 30, 2024, senior debt of a community development financial institution, classified as available-for-sale securities was exchanged for preferred equity of the financial institution’s operating subsidiary.
−Removed: At June 30, 2025, the Company owned $ 1,362 preferred equity investments for which the Company utilized significant unobservable inputs (Level 3 inputs) to determine fair value.
+Added: During the nine months ended September 30, 2024, senior debt of a community development financial institution, classified as available-for-sale securities was exchanged for preferred equity of the financial institution’s operating subsidiary.
+Added: At September 30, 2025, the Company owned $ 1,362 preferred equity investments for which the Company utilized significant unobservable inputs (Level 3 inputs) to determine fair value.
At December 31, 2024, the Company owned $ 1,362 preferred equity investments for which the Company utilized significant unobservable inputs (Level 3 inputs) to determine fair value.
−Removed: There were no transfers in or out of Level 1, Level 2 or Level 3 fair value measurements relating to the available-for-sale securities above during the three and six months ended June 30, 2025.
−Removed: There were no losses included in earnings attributable to the change in unrealized gains or losses relating to the available-for-sale securities above with fair value measurements utilizing significant unobservable inputs for the three and six months ended June 30, 2025.
−Removed: During the three and six months ended June 30, 2024, $ 2,082 of senior debt, previously measured as a Level 1 instrument, was exchanged for preferred equity, now measured as a Level 3 instrument, resulting in a transfer out of Level 1 fair value measurement to Level 3 fair value measurement.
−Removed: The exchange resulted in $ 168 of unrealized losses on available-for-sale securities, previously included in other comprehensive income, being recognized on the June 30, 2024, consolidated statement of operations as loss on investment securities.
+Added: There were no transfers in or out of Level 1, Level 2 or Level 3 fair value measurements relating to the available-for-sale securities above during the three and nine months ended September 30, 2025.
+Added: There were no losses included in earnings attributable to the change in unrealized gains or losses relating to the available-for-sale securities above with fair value measurements utilizing significant unobservable inputs for the three and nine months ended September 30, 2025.
+Added: During the three and nine months ended September 30, 2024, $ 0 and $ 2,082 of senior debt, previously measured as a Level 1 instrument, was exchanged for preferred equity, now measured as a Level 3 instrument, resulting in a transfer out of Level 1 fair value measurement to Level 3 fair value measurement.
+Added: The exchange resulted in $ 0 and $ 168 of unrealized losses on available-for-sale securities, previously included in other comprehensive income, being recognized on the three and nine months ended September 30, 2024, consolidated statement of operations as loss on equity securities.
Assets Measured on Nonrecurring Basis
−Removed: The following tables present the financial instruments measured at fair value on a nonrecurring basis as of June 30, 2025 and December 31, 2024:
+Added: The following tables present the financial instruments measured at fair value on a nonrecurring basis as of September 30, 2025 and December 31, 2024:
Carrying Value Quoted Prices in
3 unchanged sentences
(Level 2) Significant
−Removed: June 30, 2025
+Added: September 30, 2025
Foreclosed and repossessed assets, net $ 911 $ — $ — $ 911
10 unchanged sentences
recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine their fair value at
−Removed: June 30, 2025 and December 31, 2024.
+Added: September 30, 2025 and December 31, 2024.
Value Valuation Techniques (1) Significant Unobservable Inputs (2) Range
−Removed: June 30, 2025
+Added: September 30, 2025
Foreclosed and repossessed assets, net $ 911 Appraisal value Estimated costs to sell 10 % - 15 %
7 unchanged sentences
The table below represents what we would receive to sell an asset or what we would have to pay to transfer a liability in an orderly transaction between market participants at the measurement date.
+Added: The carrying value of restricted FRB and FHLB stock approximates fair value based on the redemption provisions of each entity and is therefore excluded from the table below.
The carrying amount and estimated fair value of the Company’s financial instruments as of the dates indicated below were as follows:
−Removed: June 30, 2025 December 31, 2024
+Added: September 30, 2025 December 31, 2024
Valuation Method Used Carrying
9 unchanged sentences
Equity investments valued at NAV(1) N/A 3,832 N/A 2,771 N/A
−Removed: Other investments (Level II) 12,379 12,379 12,500 12,500
Loans receivable, net (Level III) 1,300,828 1,269,558 1,348,432 1,315,657
12 unchanged sentences
A reconciliation of the basic and diluted earnings per share is as follows:
−Removed: Three Months Ended Six Months Ended
−Removed: (Share count in thousands) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024
+Added: Three Months Ended Nine Months Ended
+Added: (Share count in thousands) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
Net income attributable to common stockholders $ 3,682 $ 3,286 $ 10,149 $ 11,049
8 unchanged sentences
Dilutive shares outstanding consist of exercisable stock options whose strike prices were less than the quarterly average closing price of the Company’s common stock.
−Removed: At June 30, 2025 and June 30, 2024, there were 0 and 20 exercisable stock options, respectively, with a potentially dilutive effect.
+Added: At September 30, 2025 and September 30, 2024, there were 0 and 20 exercisable stock options, respectively, with a potentially dilutive effect.
However their strike prices were higher than the quarterly average closing prices of the Company’s common stock and thus, excluded from diluted shares outstanding.
−Removed: NOTE 12 – OTHER COMPREHENSIVE INCOME (LOSS)
−Removed: The following tables show the tax effects allocated to each component of other comprehensive income (loss) for the three and six months ended June 30, 2025 and 2024:
+Added: NOTE 12 – OTHER COMPREHENSIVE INCOME
+Added: The following tables show the tax effects allocated to each component of other comprehensive income for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended
−Removed: June 30, 2025 June 30, 2024
+Added: September 30, 2025 September 30, 2024
Amount Tax Benefit
5 unchanged sentences
Net unrealized gains arising during the period $ 2,170 $ ( 513 ) $ 1,657 $ 4,605 $ ( 1,053 ) $ 3,552
−Removed: Reclassification for net loss on exchanged security, included in net income, net of tax — — — 168 ( 38 ) 130
Other comprehensive income $ 2,170 $ ( 513 ) $ 1,657 $ 4,605 $ ( 1,053 ) $ 3,552
−Removed: Six Months Ended
−Removed: June 30, 2025 June 30, 2024
+Added: Nine Months Ended
+Added: September 30, 2025 September 30, 2024
Amount Tax Benefit
3 unchanged sentences
(Expense) Net-of-Tax
−Removed: Unrealized gains (losses) on securities:
−Removed: Net unrealized gains (losses) arising during the period $ 2,023 $ ( 487 ) $ 1,536 $ ( 223 ) $ 24 $ ( 199 )
+Added: Unrealized gains on securities:
+Added: Net unrealized gains arising during the period $ 4,193 $ ( 1,000 ) $ 3,193 $ 4,383 $ ( 1,030 ) $ 3,353
Reclassification for net loss on exchanged security, included in net income, net of tax — — — 168 ( 38 ) 130
−Removed: Other comprehensive income (loss) $ 2,023 $ ( 487 ) $ 1,536 $ ( 55 ) $ ( 14 ) $ ( 69 )
−Removed: The changes in the accumulated balances for each component of other comprehensive income (loss), net of tax for the twelve months ended December 31, 2024 and the six months ended June 30, 2025 were as follows:
+Added: Other comprehensive income $ 4,193 $ ( 1,000 ) $ 3,193 $ 4,551 $ ( 1,068 ) $ 3,483
+Added: The changes in the accumulated balances for each component of other comprehensive income, net of tax for the twelve months ended December 31, 2024 and the nine months ended September 30, 2025 were as follows:
Gains (Losses)
6 unchanged sentences
Current year-to-date other comprehensive income 4,193 3,193
−Removed: Ending balance, June 30, 2025 $ ( 20,730 ) $ ( 14,884 )
−Removed: Reclassifications out of accumulated other comprehensive income (loss) for the three and six month periods ended June 30, 2025 and June 30, 2024 were as follows:
−Removed: Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
−Removed: Details about Accumulated Other Comprehensive Income (Loss) Components Three months ended June 30, 2025 Six months ended June 30, 2025 Affected Line Item on the Statement of Operations
−Removed: Unrealized gains and losses
−Removed: Sale of securities $ — $ — Net (losses) gains on investment securities
−Removed: Tax effect — — Provision for income taxes
−Removed: Total reclassifications for the period $ — $ — Net income attributable to common stockholders
+Added: Ending balance, September 30, 2025 $ ( 18,560 ) $ ( 13,227 )
+Added: There were no reclassifications out of accumulated other comprehensive income for the three and nine month periods ended September 30, 2025.
+Added: Reclassifications out of accumulated other comprehensive income for the three and nine month periods ended September 30, 2024 were as follows:
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
−Removed: Details about Accumulated Other Comprehensive Income (Loss) Components Three months ended June 30, 2024 Six months ended June 30, 2024 Affected Line Item on the Statement of Operations
+Added: Details about Accumulated Other Comprehensive Income (Loss) Components Three months ended September 30, 2024 Nine months ended September 30, 2024 Affected Line Item on the Statement of Operations
Unrealized gains and losses
12 unchanged sentences
All operations are domestic.
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, 2025 June 30, 2024 June 30,2025 June 30, 2024
+Added: Three Months Ended Nine Months Ended
+Added: September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
Interest and dividend income $ 22,254 $ 22,512 $ 65,859 $ 67,654
17 unchanged sentences
Reconciliation of assets:
−Removed: June 30, 2025 June 30, 2024 June 30,2025 June 30, 2024
+Added: September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
Total assets for reportable segments $ 1,726,987 $ 1,799,137 $ 1,726,987 $ 1,799,137
2 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.