What changed in this filing

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Item 1. Financial Statements

2025-08-07 compared with 2025-05-09 · 245 added, 148 removed, 834 unchanged (32% of the section changed)

2 unchanged sentences

Consolidated Balance Sheets

($ in thousands - unaudited) March 31,

($ in thousands - unaudited) June 30,

2025 December 31,

44 unchanged sentences

Consolidated Statements of Income

Three Months Ended March 31,

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

($ in thousands, except share data - unaudited) 2025 2024 2025 2024

28 unchanged sentences

Occupancy and equipment expense 5,195 4,877 10,387 10,952

Merger and acquisition expenses — —

Intangibles amortization expense 1,468 1,669 2,984 3,428

13 unchanged sentences

Consolidated Statements of Comprehensive Income (Loss)

Three Months Ended

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

($ in thousands - unaudited) 2025 2024 2025 2024

5 unchanged sentences

Reclassification to realized losses — 186 — 1,161

Tax expense — ( 226 )

Tax (benefit) expense — ( 43 ) — ( 269 )

Postretirement Plans:

Amortization of unrecognized net actuarial losses — 25 — 50

Tax benefit — ( 6 )

Tax (expense) benefit — ( 5 ) — ( 11 )

Other comprehensive income (loss) 17,110 6,782 52,511 ( 7,161 )

6 unchanged sentences

Shares Amount

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Balances, April 1, 2024 41,156 $ 965,429 $ 732,643 $ ( 1,396 ) $ 1,396 $ ( 321,973 ) $ 1,376,099

Net income 28,712 28,712

Cash dividends declared ($ 0.22 per common share)

( 9,061 ) ( 9,061 )

Change in Rabbi Trust Obligation 257 ( 257 ) —

Stock options exercised 16 379 379

Stock-based compensation 16 1,431 1,431

Other comprehensive loss 6,782 6,782

Balances, June 30, 2024 41,188 $ 967,239 $ 752,294 $ ( 1,139 ) $ 1,139 $ ( 315,191 ) $ 1,404,342

Three Months Ended June 30, 2025

Balances, April 1, 2025 41,369 $ 971,174 $ 783,630 $ ( 1,166 ) $ 1,166 $ ( 246,628 ) $ 1,508,176

Net income 38,566 38,566

Cash dividends declared ($ 0.23 per common share)

( 9,539 ) ( 9,539 )

Change in Rabbi Trust Obligation 297 ( 297 ) —

Stock options exercised 60 1,112 1,112

Stock withheld for payment of taxes ( 14 ) ( 546 ) ( 546 )

Stock-based compensation 53 1,301 1,301

Other comprehensive income 17,110 17,110

Balances, June 30, 2025 41,468 $ 973,041 $ 812,657 $ ( 869 ) $ 869 $ ( 229,518 ) $ 1,556,180

See accompanying notes to unaudited consolidated financial statements.

First Bancorp

Consolidated Statements of Shareholders’ Equity

($ and share data in thousands - unaudited) Common Stock Retained

earnings Stock in rabbi trust assumed in acquisition Rabbi trust obligation Accumulated other comprehensive income (loss) Total shareholders’ equity

Shares Amount

Six Months Ended June 30, 2024

Balances, January 1, 2024 41,110 $ 963,990 $ 716,420 $ ( 1,385 ) $ 1,385 $ ( 308,030 ) $ 1,372,380

7 unchanged sentences

Other comprehensive loss ( 7,161 ) ( 7,161 )

Balances, March 31, 2024 41,156 $ 965,429 $ 732,643 $ ( 1,396 ) $ 1,396 $ ( 321,973 ) $ 1,376,099

Three Months Ended March 31, 2025

Balances, June 30, 2024 41,188 $ 967,239 $ 752,294 $ ( 1,139 ) $ 1,139 $ ( 315,191 ) $ 1,404,342

Six Months Ended June 30, 2025

Balances, January 1, 2025 41,347 $ 971,313 $ 756,327 $ ( 1,148 ) $ 1,148 $ ( 282,029 ) $ 1,445,611

3 unchanged sentences

Change in Rabbi Trust Obligation 279 ( 279 ) —

Stock options exercised 13 126 126

Stock repurchases ( 25 ) ( 992 ) ( 992 )

Stock options exercised 73 1,238 1,238

Stock withheld for payment of taxes ( 22 ) ( 839 ) ( 839 )

1 unchanged sentence

Other comprehensive income 52,511 52,511

Balances, March 31, 2025 41,369 $ 971,174 $ 783,630 $ ( 1,166 ) $ 1,166 $ ( 246,628 ) $ 1,508,176

Balances, June 30, 2025 41,468 $ 973,041 $ 812,657 $ ( 869 ) $ 869 $ ( 229,518 ) $ 1,556,180

See accompanying notes to unaudited consolidated financial statements.

1 unchanged sentence

Consolidated Statements of Cash Flows

Three Months Ended March 31,

Six Months Ended June 30,

($ in thousands-unaudited) 2025 2024

7 unchanged sentences

Deposit and debt discount accretion, net 590 886

Foreclosed property gains, net ( 18 ) —

Foreclosed property losses (gains), net 41 ( 153 )

Securities losses, net — 1,161

11 unchanged sentences

Proceeds from sales of presold mortgage loans and SBA loans 42,357 82,784

Decrease (increase) in accrued interest receivable 877 2,204

(Increase) decrease in accrued interest receivable ( 352 ) 1,746

Decrease (increase) in other assets 6,300 952

Increase (decrease) in accrued interest payable 331 4,148

(Decrease) Increase in other liabilities ( 3,829 ) ( 3,816 )

(Decrease) increase in accrued interest payable ( 264 ) 29

Increase (decrease) in other liabilities 6,180 453

Net cash provided by (used in) operating activities 98,307 67,630

3 unchanged sentences

Proceeds from maturities, calls and principal repayments of securities held to maturity 1,403 6,867

Proceeds from sales of securities available for sale — 138,182

Proceeds from sale of VISA B shares — 4,522

Purchases of Federal Reserve and FHLB stock ( 359 ) ( 15,804 )

11 unchanged sentences

Repayment of FHLB and FRB borrowings ( 2,024 ) ( 1,010,024 )

Repayment of subordinated debentures — ( 10,000 )

Cash dividends paid – common stock ( 18,208 ) ( 18,094 )

8 unchanged sentences

Consolidated Statements of Cash Flows

Three Months Ended March 31,

Six Months Ended June 30,

($ in thousands-unaudited) 2025 2024

5 unchanged sentences

Accrued dividends at end of period 9,539 9,061

Cancellation of operating lease right-of-use assets and operating lease liabilities — ( 1,497 )

Initial recognition of operating lease right-of-use assets and liabilities 939 —

Affordable housing investments obtained in exchange for funding commitments 42,248 —

See accompanying notes to consolidated financial statements.

11 unchanged sentences

Accordingly, they do not include all information and notes necessary for complete financial statements in accordance with GAAP.

In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company as of March 31, 2025, the consolidated results of income, comprehensive income and shareholders' equity for the three months ended March 31, 2025 and 2024, and the consolidated cash flows for the three months ended March 31, 2025 and 2024.

In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company as of June 30, 2025, the consolidated results of income, comprehensive income and shareholders' equity for the six months ended June 30, 2025 and 2024, and the consolidated cash flows for the six months ended June 30, 2025 and 2024.

Any such adjustments were of a normal, recurring nature.

6 unchanged sentences

Accounting Standards Adopted in 2025

The Company did not adopt any accounting standards during the first three months of 2025.

The Company did not adopt any accounting standards during the first six months of 2025.

Accounting Standards Pending Adoption

9 unchanged sentences

adoption of ASU 2023-09 is not expected to have a significant impact on the Company's consolidated financial statements .

ASU 2024-04, “Debt-Debt With Conversion and Other Options (Subtopic 470-20):

Induced Conversions of Convertible Debt Instruments” amended the Debt topic in the Accounting Standards Codification to clarify requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion.

The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods.

Early adoption is permitted for all entities that have adopted the amendments in ASU 2020-06.

The Company will apply the amendments prospectively to any settlements of convertible debt instruments that occur after the effective date of the guidance.

The adoption of ASU 2024-04 is not expected to have a significant impact on the Company's consolidated financial statements.

Other accounting standards that have been issued or proposed by the Financial Accounting Standards Board ("FASB") or other standards-setting bodies are not expected to have a material impact on the Company’s consolidated financial statements.

The book values and approximate fair values of investment securities at March 31, 2025 and December 31, 2024 are summarized as follows:

($ in thousands) March 31, 2025 December 31, 2024

The book values and approximate fair values of investment securities at June 30, 2025 and December 31, 2024 are summarized as follows:

($ in thousands) June 30, 2025 December 31, 2024

Value Unrealized Amortized

11 unchanged sentences

Total held to maturity $ 516,405 $ 431,420 $ 2 $ ( 84,987 ) $ 519,998 $ 428,571 $ 1 $ ( 91,428 )

All of the Company’s mortgage-backed securities were issued by government-sponsored enterprises ("GSEs"), except for private mortgage-backed securities with a fair value of $ 0.7 million as of March 31, 2025 and December 31, 2024.

Accrued interest receivable on available for sale ("AFS") debt securities was $ 4.9 million and $ 4.6 million at March 31, 2025 and December 31, 2024, respectively.

Accrued interest receivable on held to maturity ("HTM") debt securities was $ 3.0 million and $ 4.2 million as of March 31, 2025 and December 31, 2024.

The following table presents information regarding all securities with unrealized losses at March 31, 2025:

Accrued interest receivable on available for sale ("AFS") debt securities was $ 4.5 million and $ 4.6 million at June 30, 2025 and December 31, 2024, respectively.

Accrued interest receivable on held to maturity ("HTM") debt securities was $ 4.2 million and $ 4.2 million as of June 30, 2025 and December 31, 2024.

The following table presents information regarding all securities with unrealized losses at June 30, 2025:

Securities in an Unrealized

26 unchanged sentences

Total unrealized loss position $ 442,489 $ 2,441 $ 1,975,663 $ 457,102 $ 2,418,152 $ 459,543

As of March 31, 2025, the Company's securities portfolio included 583 securities of which 543 securities were in an unrealized loss position.

As of June 30, 2025, the Company's securities portfolio included 589 securities of which 548 securities were in an unrealized loss position.

As of December 31, 2024, the Company's securities portfolio included 584 securities of which 560 securities were in an unrealized loss position.

In the above tables, all of the securities that were in an unrealized loss position at March 31, 2025 and December 31, 2024 are bonds that the Company has determined are in a loss position due primarily to interest rate factors and not credit quality concerns.

In the above tables, all of the securities that were in an unrealized loss position at June 30, 2025 and December 31, 2024 are bonds that the Company has determined are in a loss position due primarily to interest rate factors and not credit quality concerns.

In arriving at this conclusion, the Company reviewed third-party credit ratings and considered the severity of the impairment.

1 unchanged sentence

The Company has no significant concentrations of bond holdings from any one state or local government entity.

Nearly all of the Company's mortgage-backed securities were issued by Federal Home Loan Mortgage Corporation ("FHLMC"), Federal National Mortgage Association ("FNMA"), Government National Mortgage Association ("GNMA"), or SBA, each of which is a government agency or GSE and guarantees the repayment of its securities.

Substantially all of the Company's mortgage-backed securities were issued by Federal Home Loan Mortgage Corporation ("FHLMC"), Federal National Mortgage Association ("FNMA"), Government National Mortgage Association ("GNMA"), or SBA, each of which is a government agency or GSE and guarantees the repayment of its securities.

The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost.

At March 31, 2025 and December 31, 2024, the Company determined that expected credit losses associated with HTM securities and AFS debt securities were insignificant.

The book values and fair values of investment securities at March 31, 2025, by contractual maturity, are summarized in the table below.

At June 30, 2025 and December 31, 2024, the Company determined that expected credit losses associated with HTM securities were insignificant.

The book values and fair values of investment securities at June 30, 2025, by contractual maturity, are summarized in the table below.

Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

7 unchanged sentences

Total securities $ 2,443,724 $ 2,144,831 $ 516,405 $ 431,420

At March 31, 2025 and December 31, 2024, investment securities with carrying values of $ 858.4 million and $ 806.0 million, respectively, were pledged as collateral for public deposits.

In addition, at March 31, 2025 and December 31, 2024, investment securities with carrying values of $ 664.0 million and $ 661.0 million, respectively, were pledged as collateral to the Federal Reserve Bank ("Federal Reserve") to secure any such borrowings.

At March 31, 2025 and December 31, 2024, there were no holdings of securities of any one issuer, other than the U.S.

At June 30, 2025 and December 31, 2024, investment securities with carrying values of $ 787.0 million and $ 806.0 million, respectively, were pledged as collateral for public deposits.

In addition, at June 30, 2025 and December 31, 2024, investment securities with carrying values of $ 713.5 million and $ 661.0 million, respectively, were pledged as collateral to the Federal Reserve Bank ("Federal Reserve") to secure any such borrowings.

At June 30, 2025 and December 31, 2024, there were no holdings of securities of any one issuer, other than the U.S.

Government and its agencies or GSEs, in an amount greater than 10% of shareholders' equity.

There were no sales of investment securities during the three months ended March 31, 2025 or March 31, 2024.

During the first quarter of 2024, the Company received proceeds from the unanticipated call of a security of $ 5.2 million and recorded a $ 975.2 thousand loss related to the unamortized premium balance at the time of the call.

Included in “Other assets” in the consolidated balance sheets are investments in Federal Home Loan Bank (“FHLB”) and Federal Reserve stock totaling $ 41.5 million and $ 41.3 million at March 31, 2025 and December 31, 2024, respectively.

During three and six months ended June 30, 2025, there were no sales of investment securities.

During the three months ended June 30, 2024, the Company received proceeds from the sale of securities and its holdings of Class B shares of Visa, Inc.

of $ 142.7 million and recorded $ 0.2 million in net losses from the sales.

During the six months

ended June 30, 2024, the Company received proceeds from the sale of securities and its holdings of Class B shares of Visa, Inc.

of $ 148.0 million and recorded $ 1.2 million in net losses from the sales.

Included in “Other assets” in the consolidated balance sheets are investments in Federal Home Loan Bank (“FHLB”) and Federal Reserve stock totaling $ 41.6 million and $ 41.3 million at June 30, 2025 and December 31, 2024, respectively.

These investments do not have readily determinable fair values.

The FHLB stock had a cost of $ 8.5 million at March 31, 2025 and December 31, 2024, and serves as part of the collateral for the Company’s line of credit with the FHLB and is also a requirement for membership in the FHLB system.

The Federal Reserve stock had a cost of $ 33.0 million and $ 32.7 million at March 31, 2025 and December 31, 2024, respectively, and is a requirement for Federal Reserve member bank qualification.

The FHLB stock had a cost of $ 8.6 million at June 30, 2025 and December 31, 2024, and serves as part of the collateral for the Company’s line of credit with the FHLB and is also a requirement for membership in the FHLB system.

The Federal Reserve stock had a cost of $ 33.0 million and $ 32.7 million at June 30, 2025 and December 31, 2024, respectively, and is a requirement for Federal Reserve member bank qualification.

Periodically, both the FHLB and Federal Reserve recalculate the Company’s required level of holdings, and the Company either buys more stock or redeems a portion of the stock at cost.

2 unchanged sentences

The following is a summary of the major categories of total loans outstanding:

($ in thousands) March 31, 2025 December 31, 2024

($ in thousands) June 30, 2025 December 31, 2024

Amount Percentage Amount Percentage

11 unchanged sentences

Also included in the table above are various SBA loans, generally originated under the SBA 7A program, with additional information on these loans presented in the table below.

($ in thousands) March 31, 2025 December 31, 2024

($ in thousands) June 30, 2025 December 31, 2024

Guaranteed portions of SBA loans included in table above $ 60,818 $ 34,095

2 unchanged sentences

Sold portions of SBA loans with servicing retained - not included in tables above $ 301,145 $ 330,482

At March 31, 2025 and December 31, 2024, there were remaining unaccreted discounts on the retained portion of sold SBA loans amounting to $ 2.5 million and $ 2.9 million, respectively.

At March 31, 2025 and December 31, 2024, l oans in the amount of $ 6.8 billion and $ 6.7 billion, respectively, were pledged as collateral for certain borrowings.

At March 31, 2025 and December 31, 2024, total loans included loans to directors and executive officers of the Company, and their associates, totaling approximately $ 62.3 million and $ 62.9 million, respectively.

While there were no new loans, advances on existing loans totaled approximately $ 5.0 thousand for the three months ended March 31, 2025, and repayments amounted to $ 0.6 million for that period.

Available credit on related party loans totaled $ 1.1 million and $ 1.0 million at March 31, 2025 and December 31, 2024, respectively.

As of March 31, 2025 and December 31, 2024, unamortized discounts on all acquired loans totaled $ 13.3 million and $ 15.1 million, respectively.

Loan discounts are generally amortized as yield adjustments over the respective lives of the loans, so long as the loans perform.

There was no impairment of acquired loans during the three months ended March 31, 2025 or March 31, 2024 that would require acceleration of amortization or charge off of unamortized discount.

At June 30, 2025 and December 31, 2024, there were remaining unaccreted discounts on the retained portion of sold SBA loans amounting to $ 2.3 million and $ 2.9 million, respectively.

At June 30, 2025 and December 31, 2024, l oans in the amount of $ 6.9 billion and $ 6.7 billion, respectively, were pledged as collateral to the Federal Reserve and the FHLB for borrowing capacity.

Refer to Note 5 for further discussion.

At June 30, 2025 and December 31, 2024, total loans included loans to directors and executive officers of the Company, and their associates, totaling approximately $ 61.7 million and $ 62.9 million, respectively.

Available credit on related party loans totaled $ 0.3 million and $ 1.0 million at June 30, 2025 and December 31, 2024, respectively.

As of June 30, 2025 and December 31, 2024, unamortized discounts on all acquired loans totaled $ 11.8 million and $ 15.1 million, respectively.

Nonperforming assets ("NPAs") are defined as nonaccrual loans, loans past due 90 or more days and still accruing interest, and foreclosed properties.

The following table summarizes the NPAs for each date presented.

($ in thousands) March 31,

($ in thousands) June 30,

2025 December 31,

4 unchanged sentences

Total nonperforming assets $ 35,843 $ 36,744

At March 31, 2025 and December 31, 2024, the Company had $ 0.9 million and $ 1.2 million, respectively, in residential mortgage loans in the process of foreclosure.

At March 31, 2025 and December 31, 2024, there was one nonperforming loan with a commitment to lend $ 0.2 million of additional funds to a borrower whose loan was nonperforming.

The following table is a summary of the Company’s nonaccrual loans by major categories as of March 31, 2025:

At June 30, 2025 and December 31, 2024, the Company had $ 1.3 million and $ 1.2 million, respectively, in residential mortgage loans in the process of foreclosure.

At June 30, 2025 and December 31, 2024, there was one loan with commitments to lend an immaterial amount and $ 0.2 million, respectively, of additional funds to borrowers whose loans were nonperforming.

The following table is a summary of the Company’s nonaccrual loans by major categories as of June 30, 2025:

($ in thousands) Nonaccrual Loans with No Allowance Nonaccrual Loans with an Allowance Total Nonaccrual Loans

20 unchanged sentences

The following table represents the accrued interest receivables written off by reversing interest income during each period indicated:

($ in thousands) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024

($ in thousands) Six Months Ended June 30, 2025 Six Months Ended June 30, 2024

Commercial and industrial $ 234 $ 226

6 unchanged sentences

Total $ 749 $ 499

The following table presents an analysis of the payment status of the Company’s loans as of March 31, 2025:

The following table presents an analysis of the payment status of the Company’s loans as of June 30, 2025:

($ in thousands) Accruing

30 unchanged sentences

Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty.

The Company reviews individually evaluated loans on nonaccrual with a net book balance of $ 500,000 or greater for designation as collateral dependent loans, as well as certain other loans that may still be accruing interest and/or are less than $ 500,000 in size that management of the Company designates as having higher risk.

These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the Allowance for Credit Losses ("ACL").

The following table presents an analysis of collateral dependent loans of the Company as of March 31, 2025:

($ in thousands) Residential Property Commercial Property Total Collateral-Dependent Loans

The following table presents an analysis of collateral dependent loans of the Company as of June 30, 2025:

($ in thousands) Commercial Property Total Collateral-Dependent Loans

Commercial real estate - owner occupied $ 2,598 $ 2,598

Residential 1-4 family real estate 868 — 868

Commercial real estate - non owner occupied 3,051 3,051

Total $ 5,649 $ 5,649

3 unchanged sentences

Total $ 879 $ 879

There have been no material changes from the treatment of collateral dependent loans under CECL as discussed in Note 4 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

The following tables present the activity in the ACL on loans for each of the periods indicated to include Purchase Credit Deterioration (“PCD”) activity in applicable periods.

Fluctuations in the ACL each period are based on loan mix and growth, changes in the levels of nonperforming loans, economic forecasts impacting loss drivers, other assumptions and inputs to the current expected credit loss ("CECL") model.

The change to the level of ACL during the three months ended March 31, 2025 was determined based primarily on updated economic forecasts, which are a key assumption in the CECL model and which indicated improvement in certain economic forecasts along with reductions in loan balances during the period, partially offset by a continued reduction of the commercial real estate pricing index.

There have been no material changes from the treatment of collateral dependent loans under the current expected credit loss ("CECL") model as discussed in Note 4 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

The following tables present the activity in the allowance for credit losses ("ACL") on loans for each of the periods indicated.

($ in thousands) Beginning balance Charge-offs Recoveries Provisions / (Reversals) Ending balance

As of and for the three months ended March 31, 2025

As of and for the three months ended June 30, 2025

Commercial and industrial $ 19,275 $ ( 1,416 ) $ 467 $ 180 $ 18,506

7 unchanged sentences

Total $ 120,631 $ ( 1,754 ) $ 598 $ 1,070 $ 120,545

As of and for the six months ended June 30, 2025

Commercial and industrial $ 19,474 $ ( 3,632 ) $ 964 $ 1,700 $ 18,506

Construction, development & other land loans 9,314 — 105 ( 759 ) 8,660

Commercial real estate - owner occupied 19,380 ( 450 ) 111 1,705 20,746

Commercial real estate - non owner occupied 27,768 ( 938 ) 20 ( 2,425 ) 24,425

Multi-family real estate 5,476 — — ( 731 ) 4,745

Residential 1-4 family real estate 33,552 ( 124 ) 53 2,302 35,783

Home equity loans/lines of credit 4,111 ( 68 ) 21 ( 619 ) 3,445

Consumer loans 3,497 ( 662 ) 105 1,295 4,235

Total $ 122,572 $ ( 5,874 ) $ 1,379 $ 2,468 $ 120,545

($ in thousands) Beginning balance Charge-offs Recoveries Provisions / (Reversals) Ending balance

As of and for the three months ended March 31, 2024

As of and for the three months ended June 30, 2024

Commercial and industrial $ 20,294 $ ( 2,478 ) $ 857 $ 1,164 $ 19,837

7 unchanged sentences

Total $ 110,067 $ ( 2,657 ) $ 1,198 $ 1,450 $ 110,058

As of and for the six months ended June 30, 2024

Commercial and industrial $ 21,227 $ ( 4,063 ) $ 1,100 $ 1,573 $ 19,837

Construction, development & other land loans 13,940 ( 79 ) 147 ( 4,012 ) 9,996

Commercial real estate - owner occupied 18,218 ( 88 ) 8 ( 279 ) 17,859

Commercial real estate - non owner occupied 24,916 ( 158 ) 43 1,075 25,876

Multi-family real estate 3,825 — — 1,304 5,129

Residential 1-4 family real estate 21,396 ( 6 ) 227 3,238 24,855

Home equity loans/lines of credit 3,339 ( 2 ) 22 ( 182 ) 3,177

Consumer loans 2,992 ( 376 ) 180 533 3,329

Total $ 109,853 $ ( 4,772 ) $ 1,727 $ 3,250 $ 110,058

Credit Quality Indicators

There have been no material changes from the treatment of credit quality tracking and risk grade descriptions as discussed in Note 4 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

In the tables that follow, substantially all of the "Classified" loans have grades of 7 or Fail, with those categories having similar levels of risk.

In the tables that follow, substantially all of the "Classified" loans have grades of 7 for commercial loans or Fail for consumer loans, with those categories having similar levels of risk.

The tables below present the Company’s recorded investment in loans by credit quality indicators by year of origination or renewal as of the periods indicated.

2 unchanged sentences

($ in thousands) 2025 2024 2023 2022 2021 Prior Revolving Total

As of March 31, 2025

As of June 30, 2025

Commercial and industrial

113 unchanged sentences

The following table is a summary of the Company's nonaccrual and accruing modifications for borrowers experiencing financial difficulty by major categories for each date presented.

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

($ in thousands) Accruing loans Nonaccrual loans Total Accruing loans Nonaccrual loans Total

8 unchanged sentences

Total $ 11,358 $ 4,159 $ 15,517 $ 6,874 $ 3,299 $ 10,173

The following tables present the amortized cost basis at March 31, 2025 and March 31, 2024 of the loans modified during the three months then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted.

The following tables present the amortized cost basis at June 30, 2025 and June 30, 2024 of the loans modified during the three and six month periods then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted.

($ in thousands) Payment Delay Term Extension Combination - Payment Delay and Term Extension Total Percent of Total Class of Loans

As of and for the three months ended March 31, 2025

As of and for the three months ended June 30, 2025

Commercial and industrial $ 138 $ — $ — $ 138 0.02 %

Construction, development & other land loans — 309 — 309 0.05 %

Commercial real estate - owner occupied 334 68 — 402 0.03 %

3 unchanged sentences

Total $ 472 $ 697 $ 205 $ 1,374 0.02 %

($ in thousands) Payment Delay Term Extension Combination - Principal Forgiveness and Term Extension Combination - Interest Rate Reduction and Term Extension Total Percent of Total Class of Loans

As of and for the three months ended March 31, 2024

As of and for the six months ended June 30, 2025

Commercial and industrial $ 192 $ — $ — $ 192 0.02 %

Construction, development & other land loans — 309 — 309 0.05 %

Commercial real estate - owner occupied 334 111 — 445 0.04 %

Commercial real estate - non owner occupied 1,589 — 4,478 6,067 0.22 %

Residential 1-4 family real estate — 110 120 230 0.01 %

Home equity loans/lines of credit — 380 — 380 0.11 %

Total $ 2,115 $ 910 $ 4,598 $ 7,623 0.09 %

For the three months ended March 31, 2025 and March 31, 2024, there were no modifications for borrowers experiencing financial difficulty with principal forgiveness concessions.

The following table describes the financial effect for the three months ended March 31, 2025 of the modifications made for borrowers experiencing financial difficulty:

($ in thousands) Payment Delay Term Extension Combination - Term Extension and Payment Delay Combination - Interest Rate Reduction and Term Extension Total Percent of Total Class of Loans

As of and for the three months ended June 30, 2024

Commercial and industrial $ — $ 1 $ — $ 96 $ 97 0.01 %

Residential 1-4 family real estate — 203 — — 203 0.01 %

Home equity loans/lines of credit — 290 — — 290 0.09 %

Total $ — $ 494 $ — $ 96 $ 590 0.01 %

As of and for the six months ended June 30, 2024

Commercial and industrial $ 114 $ 1 $ 878 $ 96 $ 1,089 0.13 %

Commercial real estate - non owner occupied — 111 — — 111 — %

Residential 1-4 family real estate — 203 — — 203 0.01 %

Home equity loans/lines of credit — 323 — 176 499 0.15 %

Total $ 114 $ 638 $ 878 $ 272 $ 1,902 0.02 %

For the three and six months ended June 30, 2025 and June 30, 2024, there were no modifications for borrowers experiencing financial difficulty with principal forgiveness concessions.

The following table describes the financial effect for the three and six months ended June 30, 2025 of the modifications made for borrowers experiencing financial difficulty:

Financial Effect of Modification to Borrowers Experiencing Financial Difficulty

Weighted Average Payment Delay

Weighted Average Interest Rate Reduction Weighted Average Payment Delay

(in months) Weighted Average Term Extension

For the three months ended March 31, 2025

For the three months ended June 30, 2025

Construction, development & other land loans — % 0 3

Commercial real estate - owner occupied — % 7 148

Commercial real estate - non owner occupied — % 4 2

Residential 1-4 family real estate — % 4 29

Home equity loans/lines of credit — % 0 40

For the six months ended June 30, 2025

Commercial and industrial — % 1 0

Construction, development & other land loans — % 0 3

Commercial real estate - owner occupied — % 7 97

2 unchanged sentences

Home equity loans/lines of credit — % 0 63

The following table describes the financial effect for the three months ended March 31, 2024 of the modifications made for borrowers experiencing financial difficulty:

The following table describes the financial effect for the three and six months ended June 30, 2024 of the modifications made for borrowers experiencing financial difficulty:

Financial Effect of Modification to Borrowers Experiencing Financial Difficulty

1 unchanged sentence

(in months) Weighted Average Term Extension

For the three months ended March 31, 2024

For the three months ended June 30, 2024

Commercial and industrial 0.75 % 0 27

Residential 1-4 family real estate — % 0 103

Home equity loans/lines of credit — % 0 95

For the six months ended June 30, 2024

Commercial and industrial 0.75 % 36 13

Commercial real estate - non owner occupied — % 0 13

Residential 1-4 family real estate — % 0 103

Home equity loans/lines of credit 2.10 % 0 69

The Company closely monitors the performance of the loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

The following table depicts the performance of loans that were modified in the last twelve months as of March 31, 2025:

The Company closely monitors the performance of the modified loans that are to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

The following table depicts the performance of loans that were modified in the last twelve months as of June 30, 2025:

Payment Status (Amortized Cost Basis)

17 unchanged sentences

$ 2,307 $ — $ 68 $ 936

The following table presents the amortized cost basis of loans that had a payment default during the three months ended March 31, 2025 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty by loan category and type of concession granted.

Amortized Cost Basis of Modified Receivables That Subsequently Defaulted

($ in thousands) Term Extension Total

Residential 1-4 family real estate $ 51 $ 51

Total $ 51 $ 51

During the three months ended March 31, 2024, none of the loans to borrowers experiencing financial difficulty that were modified in the twelve months prior were considered to have had a payment default.

At March 31, 2025, there were no commitments to lend additional funds to a borrower experiencing financial difficulty for whom a modification had been made.

During the three and six months ended June 30, 2025 and June 30, 2024, none of the loans to borrowers experiencing financial difficulty that were modified in the twelve months prior were considered to have had a payment default.

At June 30, 2025, there were no commitments to lend additional funds to a borrower experiencing financial difficulty for whom a modification had been made.

At December 31, 2024, there was a commitment to lend $ 0.1 million of additional funds to one borrower experiencing financial difficulty for whom a modification had been made.

7 unchanged sentences

Impact of Hurricane Helene

The Company identified borrowers with approximately $ 722 million of loans outstanding within the portions of Western North and South Carolina that were significantly impacted by Hurricane Helene.

The following is a summary of the categories of those loans outstanding as of March 31, 2025:

Within the portions of Western North and South Carolina that were significantly impacted by Hurricane Helene, the Company identified borrowers with outstanding loan balances of approximately $ 755 million at the time of the storm.

Those balances have since reduced to $ 703 million.

The following is a summary of the categories of those loans outstanding as of June 30, 2025:

($ in thousands) Balance

6 unchanged sentences

Home equity loans/lines of credit 36,185

Consumer loans —

Total $ 702,538

Given that the recovery from the storm is ongoing in many impacted communities, the Company continues to evaluate possible impacts from the storm on borrowers and has reserved accordingly based upon the information available as of March 31, 2025.

The Company applied increased reserve rates based upon severe economic factors to the approximately $ 703 million of loans in the most impacted path of Hurricane Helene.

Additionally, the Company continues to evaluate the largest commercial loans in that area and applied incremental reserves to those loans that were suspected of having higher potential property damage or economic impact from the storm.

Due to the potential exposure from Hurricane Helene, the ACL on these impacted loans was $ 11.0 million as of March 31, 2025, adding 14 basis points to the overall ACL as a percent of total loans,which was 1.49 % as of March 31, 2025.

Due to the potential exposure from Hurricane Helene, the ACL on these impacted loans was $ 7.5 million as of June 30, 2025, adding 10 basis points to the overall ACL as a percent of total loans, which was 1.47 % as of June 30, 2025.

As of December 31, 2024, the ACL on these loans was $ 13.0 million, adding 16 basis points to the overall ACL as a percent of total loans, which was 1.51 %.

Allowance for Unfunded Loan Commitments

3 unchanged sentences

The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the ACL on loans.

The allowance for unfunded loan commitments were included in "Other liabilities" on the consolidated balance sheets.

The following table presents the balance and activity in the allowance for unfunded loan commitments for the three months ended March 31, 2025 and 2024:

Three months ended March 31,

The allowance for unfunded loan commitments was included in "Other liabilities" on the consolidated balance sheets.

The following table presents the balance and activity in the allowance for unfunded loan commitments for the three and six months ended June 30, 2025 and 2024:

Three months ended June 30, Six months ended June 30,

($ in thousands) 2025 2024 2025 2024

2 unchanged sentences

Recoveries — — — —

Reversal of provision for unfunded commitments ( 282 ) ( 601 )

Provision for (reversal of) unfunded commitments 1,142 ( 908 ) 860 ( 1,509 )

Ending balance $ 9,926 $ 9,860 $ 9,926 $ 9,860

1 unchanged sentence

The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets and the carrying amount of unamortized intangible assets as of the periods presented.

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

($ in thousands) Gross Carrying

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Customer lists are generally amortized over five years and core deposit intangibles are generally amortized over 10 years, both at an accelerated rate.

Amortization expense of all amortizable intangible assets totaled $ 1.5 million and $ 1.8 million for the three months ended March 31, 2025 and 2024, respectively.

Amortization expense of all amortizable intangible assets totaled $ 1.5 million and $ 1.7 million for the three months ended June 30, 2025 and 2024, respectively, and $ 3.0 million and $ 3.4 million for the six months ended June 30, 2025 and 2024.

Goodwill is evaluated for impairment on at least an annual basis, with the annual evaluation occurring as of October 31 of each year.

3 unchanged sentences

There was no change to carrying amounts of goodwill during 2025.

The following table presents the estimated amortization expense schedule related to amortizable intangible assets.

These amounts will be recorded as "Intangibles amortization expense" within the noninterest expense section of the consolidated statements of income.

These estimates are subject to change in future periods to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful lives of amortizable intangible assets.

($ in thousands) Estimated Amortization

April 1, 2025 to December 31, 2025 $ 4,156

Thereafter 2,937

Total $ 21,388

During the three months ended March 31, 2025 and 2024, the Company recorded $ 0.7 million in SBA guaranteed servicing fee income.

There was no impairment of SBA servicing assets at March 31, 2025 and December 31, 2024 and no significant methodology changes have been made since year end.

Other than the expected amortization expense recognized during the six months ended June 30, 2025, there have been no material changes to the estimated amortization expense related to amortizable intangible assets as discussed in Note 6 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

The Company recorded SBA guaranteed servicing fee income of $ 0.7 million and $ 0.8 million during the three months ended June 30, 2025 and 2024, respectively, and $ 1.4 million and $ 1.5 million for the six months ended June 30, 2025 and 2024, respectively.

There was no impairment of SBA servicing assets at June 30, 2025 and December 31, 2024 and no significant methodology changes have been made since year end.

The following table presents the changes in the SBA servicing assets (included in "Other assets" in the Company's consolidated balance sheet) for each period indicated:

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in thousands) 2025 2024 2025 2024

3 unchanged sentences

Ending balance, net $ 2,029 $ 3,003 $ 2,029 $ 3,003

The following tables present information regarding the Company’s outstanding borrowings at March 31, 2025:

The following tables present information regarding the Company’s outstanding borrowings at June 30, 2025:

($ in thousands)

9 unchanged sentences

Subordinated Debentures 11/15/2030 Continuous by Company beginning 11/15/2025 18,000 4.38 % fixed at 6/30/25 until 11/15/25, then adjustable rate 3 month CME Term SOFR + 4.16 %

Total borrowings / weighted average rate as of March 31, 2025

Total borrowings / weighted average rate as of June 30, 2025

96,102 6.09 %

18 unchanged sentences

The Company enters into leases in the normal course of business.

As of March 31, 2025, the Company leased 13 bank branch offices for which the land and buildings are leased and nine branch offices for which the land is leased but the buildings are owned.

As of June 30, 2025, the Company leased 13 bank branch offices for which the land and buildings are leased and ten branch offices for which the land is leased but the buildings are owned.

The Company also leases office space for several operational departments.

All of the Company’s leases are operating leases and the lease agreements have maturity dates ranging from April 2026 through May 2076, some of which include options for multiple five - and ten-year extensions.

The Company includes lease extension options in the lease term if, after considering relevant economic, market, and strategic factors, it is reasonably certain the Company will exercise the option.

The weighted average remaining life of the lease term for these leases was 21.3 years as of March 31, 2025 and 21.2 years as of December 31, 2024.

The weighted average remaining life of the lease term for these leases was 20.7 years as of June 30, 2025 and 21.2 years as of December 31, 2024.

Certain of the Company's lease agreements include variable lease payments based on changes in inflation, with the impact of that factor being insignificant to the Company's total lease expense.

6 unchanged sentences

The Company uses its incremental borrowing rate, on a collateralized basis, at lease commencement to calculate the present value of lease payments when the rate implicit in the lease is not known.

The weighted average discount rates for leases were 3.34 % as of March 31, 2025 and December 31, 2024.

The weighted average discount rates for leases were 3.40 % and 3.34 % as of June 30, 2025 and December 31, 2024, respectively.

The right-of-use assets, included in "Other assets" on the Company's consolidated balance sheets, and lease liabilities, included in "Other liabilities" on the Company's consolidated balance sheets, were $ 14.0 million and $ 14.9

million as of March 31, 2025, respectively, and were $ 13.8 million and $ 14.6 million as of December 31, 2024, respectively.

Total operating lease expenses, included in "Other operating expenses" in the Company's consolidated statements of income, were $ 0.6 million and $ 0.7 million for the three months ended March 31, 2025 and 2024, respectively.

Future undiscounted lease payments for operating leases with initial terms of greater than one year as of March 31, 2025 are as follows:

million as of June 30, 2025, respectively, and were $ 13.8 million and $ 14.6 million as of December 31, 2024, respectively.

Total operating lease expenses, included in "Other operating expenses" in the Company's consolidated statements of income, were $ 0.6 million and $ 0.5 million for the three months ended June 30, 2025 and 2024, respectively and $ 1.3 million and $ 1.2 million for six months ended June 30, 2025and 2024, respectively.

Future undiscounted lease payments for operating leases with initial terms of greater than one year as of June 30, 2025 are as follows:

($ in thousands)

April 1, 2025 to December 31, 2025 $ 1,333

July 1, 2025 to December 31, 2025 $ 914

Thereafter 15,725

9 unchanged sentences

Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at March 31, 2025:

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at June 30, 2025:

($ in thousands)

Description of Financial Instruments

Fair Value at March 31, 2025 Quoted Prices in Active Markets for Identical Assets

Fair Value at June 30, 2025 Quoted Prices in Active Markets for Identical Assets

(Level 1) Significant Other

50 unchanged sentences

Any fair value adjustments are recorded in the period incurred as provision for credit losses on the consolidated statements of income.

There were no significant changes in the reported amount of Level 3 assets and liabilities measured at fair value on either a recurring or a non-recurring basis as of March 31, 2025.

The carrying amounts and estimated fair values of financial instruments not carried at fair value at March 31, 2025 and December 31, 2024 were as follows:

March 31, 2025 December 31, 2024

There were no significant changes in the reported amount of Level 3 assets and liabilities measured at fair value on either a recurring or a non-recurring basis as of June 30, 2025.

The carrying amounts and estimated fair values of financial instruments not carried at fair value at June 30, 2025 and December 31, 2024 were as follows:

June 30, 2025 December 31, 2024

($ in thousands) Level in Fair

20 unchanged sentences

Stock-Based Compensation

The Company recorded total stock-based compensation expense of $ 1.0 million and $ 0.7 million for the three months ended March 31, 2025 and 2024, respectively.

The Company recorded total stock-based compensation expense of $ 1.1 million and $ 0.9 million for the three months ended June 30, 2025 and 2024, respectively, and $ 2.1 million and $ 1.6 million for the six months ended June 30, 2025 and 2024, respectively.

These amounts are included in "Total personnel expense" on the accompanying consolidated statements of income.

The Company recog nized income tax benefits related to stock-based compensation expense in its income statement of $ 238,000 an d $ 153,000 for the three months ended March 31, 2025 and 2024, respectively.

At March 31, 2025, the sole equity-based compensation plan of the Company was the First Bancorp 2024 Equity Plan (the "Equity Plan"), which was approved by shareholders on May 31, 2024.

As of March 31, 2025, the Equity Plan had 1,884,484 shares remaining available for grant.

The Company recog nized income tax benefits related to stock-based compensation expense in its income statement of $ 246,000 an d $ 218,000 for the three months ended June 30, 2025 and 2024, respectively, and $ 484,000 and $ 371,000 for the six months ended June 30, 2025 and 2024, respectively.

At June 30, 2025, the sole equity-based compensation plan of the Company was the First Bancorp 2024 Equity Plan (the "Equity Plan"), which was approved by shareholders on May 31, 2024.

As of June 30, 2025, the Equity Plan had 1,831,944 shares remaining available for grant.

The Equity Plan is intended to serve as a means to attract, retain, and motivate key employees and directors and to associate the interests of the Equity Plan's participants with those of the Company and its shareholders.

3 unchanged sentences

In addition to employee equity awards, the Company's practice is to grant unrestricted common shares to each non-employee director (currently eleven in total) in June of each year.

The grants were valued at approximately $ 37,500 in 2024 and are expected to be the same in 2025.

The grants were valued at approximately $ 37,500 in 2025.

Compensation expense associated with these director awards is fully recognized by the date of the award since there are no vesting conditions.

The following table presents information regarding the activity for the first three months of 2025 related to the Company’s outstanding restricted stock awards:

The following table presents information regarding the activity for the first six months of 2025 related to the Company’s outstanding restricted stock awards:

Long-Term Restricted Stock Awards

5 unchanged sentences

Forfeited or expired during the period ( 4,069 ) 41.88

Nonvested at March 31, 2025 251,324 $ 36.51

Total unrecognized compensation expense as of March 31, 2025 amounted to $ 3.7 million with a weighted average remaining term of 2.3 years.

For the nonvested awards that were outstanding at March 31, 2025, the Company expects to record $ 2.0 million in compensation expense in the next twelve months, $ 1.7 million of which is expected to be recorded in the remaining quarters of 2025.

Nonvested at June 30, 2025 245,253 $ 37.70

Total unrecognized compensation expense as of June 30, 2025 amounted to $ 4.5 million with a weighted average remaining term of 2.5 years.

For the nonvested awards that were outstanding at June 30, 2025, the Company expects to record $ 2.0 million in compensation expense in the next twelve months, $ 1.1 million of which is expected to be recorded in the remaining quarters of 2025.

Earnings Per Share

The following is a reconciliation of the numerators and denominators used in computing Basic and Diluted Earnings Per Common Share ("EPS"):

For the Three Months Ended March 31,

For the Three Months Ended June 30,

($ in thousands except per share amounts) Income

10 unchanged sentences

Diluted EPS per common share $ 38,566 41,441,393 $ 0.93 $ 28,712 41,262,091 $ 0.70

For the Six Months Ended June 30,

($ in thousands except per share amounts) Income

(Numerator) Shares

(Denominator) Per Share

Amount Income

(Numerator) Shares

(Denominator) Per Share

Net income $ 74,972 $ 53,984

income allocated to restricted stock ( 432 ) ( 384 )

Basic EPS per common share $ 74,540 41,149,623 $ 1.81 $ 53,600 40,861,775 $ 1.31

Net income $ 74,972 41,149,623 $ 53,984 40,861,775

Effect of dilutive securities — 274,440 — 394,306

Diluted EPS per common share $ 74,972 41,424,063 $ 1.81 $ 53,984 41,256,081 $ 1.31

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) ("AOCI") for the Company for the periods shown were as follows:

($ in thousands) March 31, 2025 December 31, 2024

($ in thousands) June 30, 2025 December 31, 2024

Unrealized loss on securities available for sale $ ( 298,893 ) $ ( 368,055 )

5 unchanged sentences

Total accumulated other comprehensive income (loss) $ ( 229,518 ) $ ( 282,029 )

The following tables disclose the changes in AOCI for the three months ended March 31, 2025 and 2024 (all amounts are net of tax):

For the Three Months Ended March 31, 2025

The following tables disclose the changes in AOCI for the three six months ended June 30, 2025 and 2024 (all amounts are net of tax):

For the Three Months Ended June 30, 2025

($ in thousands) Unrealized Loss on

5 unchanged sentences

Ending balance $ ( 229,603 ) $ 85 $ ( 229,518 )

For the Three Months Ended March 31, 2024

For the Three Months Ended June 30, 2024

($ in thousands) Unrealized Loss on

6 unchanged sentences

Ending balance $ ( 315,153 ) $ ( 38 ) $ ( 315,191 )

Amounts reclassified from AOCI for unrealized gain (loss) on securities AFS represent realized securities gains or losses, net of tax effects.

For the Six Months Ended June 30, 2025

($ in thousands) Unrealized Loss on

Available for Sale Postretirement Plans Asset

(Liability) Total

Beginning balance $ ( 282,114 ) $ 85 $ ( 282,029 )

Other comprehensive income before reclassifications 52,511 — 52,511

Net current period other comprehensive income 52,511 — 52,511

Ending balance $ ( 229,603 ) $ 85 $ ( 229,518 )

For the Six Months Ended June 30, 2024

($ in thousands) Unrealized Loss on

Available for Sale Postretirement Plans Asset

(Liability) Total

Beginning balance $ ( 307,953 ) $ ( 77 ) $ ( 308,030 )

Other comprehensive loss before reclassifications ( 8,092 ) — ( 8,092 )

Amounts reclassified from accumulated other comprehensive income

Net current period other comprehensive (loss) income ( 7,200 ) 39 ( 7,161 )

Ending balance $ ( 315,153 ) $ ( 38 ) $ ( 315,191 )

Amounts reclassified from AOCI for unrealized gain (loss) on AFS securities represent realized securities gains or losses, net of tax effects.

Amounts reclassified from AOCI for postretirement plans asset (liability) represent amortization of amounts included in AOCI, net of taxes, and are recorded in the "Other operating expenses" line item of the consolidated statements of income.

1 unchanged sentence

All of the Company’s revenues that are in the scope of the “ Revenue from Contracts with Customers ” accounting standard (“ASC 606”) are recognized within noninterest income.

The following table presents the Company’s sources of noninterest income for the three months ended March 31, 2025 and 2024.

The following table presents the Company’s sources of noninterest income for the six months ended June 30, 2025 and 2024.

Items outside the scope of ASC 606 are noted as such.

For the Three Months Ended

($ in thousands) March 31, 2025 March 31, 2024

For the Three Months Ended For the Six Months Ended

($ in thousands) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Noninterest Income in-scope of ASC 606:

19 unchanged sentences

The chief operating decision makers use the Consolidated Statements of Income and Consolidated Balance Sheets to ascertain measures or performance such as revenue, profit or loss, significant expenses and assets.

Depreciation expense amounted to $ 1.8 million, and $ 2.0 million, for the three months ended March 31, 2025 and March 31, 2024, respectively, and is recorded in Occupancy and equipment expense on the Consolidated Statements of Income.

Depreciation expense amounted to $ 1.7 million, and $ 2.0 million, for the three months ended June 30, 2025 and June 30, 2024, respectively, and $ 3.5 million and $ 4.0 million for the six months ended June 30, 2025 and June 30, 2024, respectively.

Depreciation expense is recorded in Occupancy and equipment expense on the Consolidated Statements of Income.

Subsequent Events

During the third quarter of 2025, to take advantage of the current yields on certain categories of bonds, the Com pany executed a securities loss earnback transaction.

The Company identified $ 194.3 million of AFS securities bearing 1.63 % to dispose of and sold those securities at a loss of approximately $ 27.9 million.

During the third quar ter of 2025, the Company invested a total of $ 167.4 million in AFS securities bearing 4.79 %.

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

What changed 10-Q

Item 1. Financial Statements