What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-05-07 compared with 2025-11-07 · 170 added, 272 removed, 805 unchanged (35% of the section changed)

2 unchanged sentences

Consolidated Balance Sheets

($ in thousands - unaudited) September 30,

($ in thousands - unaudited) March 31,

2026 December 31,

44 unchanged sentences

Consolidated Statements of Income

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

($ in thousands, except per share data - unaudited) 2026 2025

20 unchanged sentences

Bank-owned life insurance income 1,340 1,228

Securities losses, net ( 27,905 ) — ( 27,905 ) ( 1,161 )

Other income, net 878 132

20 unchanged sentences

Consolidated Statements of Comprehensive Income (Loss)

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

($ in thousands - unaudited) 2026 2025

2 unchanged sentences

Unrealized gains (losses) on securities available for sale:

Unrealized holding gains (losses) arising during the period, pretax 19,222 78,550 88,384 68,021

Tax (expense) benefit ( 4,488 ) ( 18,184 ) ( 21,139 ) ( 15,747 )

Reclassification to realized losses 27,905 — 27,905 1,161

Unrealized holding (losses) gains arising during the period, pretax ( 3,588 ) 46,841

Tax benefit (expense) 831 ( 11,440 )

2 unchanged sentences

Tax (expense) benefit ( 6 ) —

Other comprehensive income (loss) 36,123 60,385 88,634 53,224

Other comprehensive (loss) income ( 2,737 ) 35,401

Comprehensive income (loss) $ 43,922 $ 71,807

5 unchanged sentences

Shares Amount

Three Months Ended September 30, 2024

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

Net income 18,680 18,680

Cash dividends declared ($ 0.22 per common share)

( 9,093 ) ( 9,093 )

Change in Rabbi Trust Obligation ( 9 ) 9 —

Stock options exercised 111 2,324 2,324

Stock withheld for payment of taxes ( 11 ) ( 478 ) ( 478 )

Stock-based compensation 52 1,365 1,365

Other comprehensive income 60,385 60,385

Balances, September 30, 2024 41,340 $ 970,450 $ 761,881 $ ( 1,148 ) $ 1,148 $ ( 254,806 ) $ 1,477,525

Three Months Ended September 30, 2025

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

Net income 20,363 20,363

Cash dividends declared ($ 0.23 per common share)

( 9,537 ) ( 9,537 )

Change in Rabbi Trust Obligation ( 8 ) 8 —

Stock options exercised 6 163 163

Stock withheld for payment of taxes ( 11 ) ( 546 ) ( 546 )

Stock-based compensation 2 577 577

Other comprehensive income 36,123 36,123

Balances, September 30, 2025 41,465 $ 973,235 $ 823,483 $ ( 877 ) $ 877 $ ( 193,395 ) $ 1,603,323

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

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

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

4 unchanged sentences

Stock options exercised 13 126 126

Stock repurchases ( 25 ) ( 992 ) ( 992 )

Stock withheld for payment of taxes ( 8 ) ( 293 ) ( 293 )

1 unchanged sentence

Other comprehensive income 35,401 35,401

Balances, September 30, 2024 41,340 $ 970,450 $ 761,881 $ ( 1,148 ) $ 1,148 $ ( 254,806 ) $ 1,477,525

Nine Months Ended September 30, 2025

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

Three Months Ended March 31, 2026

Balances, January 1, 2026 41,466 $ 973,884 $ 829,659 $ ( 885 ) $ 885 $ ( 149,375 ) $ 1,654,168

3 unchanged sentences

Change in Rabbi Trust Obligation ( 8 ) 8 —

Stock repurchases ( 25 ) ( 992 ) ( 992 )

Stock options exercised 2 36 36

Stock repurchases ( 93 ) ( 5,147 ) ( 5,147 )

Stock withheld for payment of taxes ( 18 ) ( 1,047 ) ( 1,047 )

1 unchanged sentence

Other comprehensive income ( 2,737 ) ( 2,737 )

Balances, September 30, 2025 41,465 $ 973,235 $ 823,483 $ ( 877 ) $ 877 $ ( 193,395 ) $ 1,603,323

Balances, March 31, 2026 41,375 $ 968,675 $ 866,387 $ ( 893 ) $ 893 $ ( 152,112 ) $ 1,682,950

See accompanying notes to unaudited consolidated financial statements.

1 unchanged sentence

Consolidated Statements of Cash Flows

Nine Months Ended September 30,

Three Months Ended March 31,

($ in thousands-unaudited) 2026 2025

8 unchanged sentences

Foreclosed property losses (gains), net ( 52 ) ( 18 )

Securities losses, net 27,905 1,161

Other (gains) losses, net ( 825 ) ( 109 )

10 unchanged sentences

Proceeds from sales of presold mortgage loans and SBA loans 44,844 21,669

(Increase) decrease in accrued interest receivable 343 4,461

(Increase) decrease in other assets ( 13,227 ) ( 2,527 )

Decrease (increase) in accrued interest receivable 1,910 877

Decrease (increase) in other assets 4,202 8,702

(Decrease) increase in accrued interest payable ( 14 ) 331

Increase (decrease) in other liabilities 11,035 3,762

(Decrease) increase in other liabilities ( 3,708 ) ( 3,829 )

Net cash provided by (used in) operating activities 61,196 52,596

3 unchanged sentences

Proceeds from maturities, calls and principal repayments of securities held to maturity 579 638

Proceeds from sales of securities available for sale 166,372 138,182

Proceeds from sale of VISA B shares — 4,522

Purchases of Federal Reserve and FHLB stock ( 375 ) ( 283 )

Redemptions of Federal Reserve and FHLB stock — 52,810

Proceeds from bank owned life insurance death benefits — 91

7 unchanged sentences

Net increase (decrease) in deposits 264,000 214,031

Proceeds from the issuance of FHLB and FRB borrowings 2,000 986,000

Repayment of FHLB and FRB borrowings ( 12 ) ( 12 )

Repayment of subordinated debentures — ( 10,000 )

Cash dividends paid – common stock ( 9,537 ) ( 9,105 )

8 unchanged sentences

Consolidated Statements of Cash Flows

Nine Months Ended September 30,

Three Months Ended March 31,

($ in thousands-unaudited) 2026 2025

2 unchanged sentences

Cash paid during the period for income taxes 817 41

Cash paid during the period for the purchase of transferable tax credits 9,337 —

Unrealized gain (loss) on securities available for sale, net of taxes 88,634 53,166

Unrealized (loss) gain on securities available for sale, net of taxes ( 2,757 ) 35,401

Foreclosed loans transferred to foreclosed real estate 213 495

Accrued dividends at end of period 9,931 9,103

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 686 —

13 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 September 30, 2025, the consolidated results of income, comprehensive income and shareholders' equity for the nine months ended September 30, 2025 and 2024, and the consolidated cash flows for the nine months ended September 30, 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 March 31, 2026, the consolidated results of income, comprehensive income and shareholders' equity for the three months ended March 31, 2026 and 2025, and the consolidated cash flows for the three months ended March 31, 2026 and 2025.

Any such adjustments were of a normal, recurring nature.

6 unchanged sentences

Accounting Standards Adopted in 2026

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

The Company did not adopt any accounting standards during the first three months of 2026.

Accounting Standards Pending Adoption

ASU 2023-09, “Income Taxes (Topic 740):

Improvements to Income Tax Disclosures” amended existing guidance to improve the transparency of income tax disclosures, including disclosure of specific categories in the rate reconciliation, providing additional information for certain reconciling items, and providing details on income taxes paid.

The amendments are effective for annual periods beginning after December 15, 2024.

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

ASU 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40):

2 unchanged sentences

Early adoption is permitted.

The Company will apply the amendments retrospectively to all prior periods presented in the financial statements after the effective date.

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

The Company will apply the

amendments retrospectively to all prior periods presented in the financial statements after the effective date.

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

ASU 2025-07, "Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606) " amended the Derivatives and Hedging and Revenue from Contracts with Customers topics in the Accounting Standards Codification to refine derivative scope and clarify the accounting treatment of share-based noncash consideration from customers in revenue contracts.

The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods.

The amendments are effective for annual reporting periods

beginning after December 15, 2026, and interim periods within those annual reporting periods.

Early adoption is permitted.

1 unchanged sentence

The adoption of ASU 2025-07 is not expected to have a significant impact on the Company's consolidated financial statements.

ASU 2025-08, "Financial Instruments-Credit Losses (Topic 326):

Purchased Loans" amended the Financial Instruments—Credit Losses topic in the Accounting Standards Codification to expand the population of acquired financial assets subject to the gross-up approach.

The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.

Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance.

The Company does not expect these amendments to have a material effect on its financial statements.

The accounting for future business combinations, if any, would be impacted.

ASU 2025-09, "Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements" amended the Derivatives and Hedging topic in the Accounting Standards Codification to clarify certain aspects of the guidance on hedge accounting and to address several incremental hedge accounting issues arising from the global reference rate reform initiative.

The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.

Early adoption is permitted on any date on or after the issuance of this ASU.

Upon adoption of the amendments, entities are permitted to modify certain critical terms of certain existing hedging relationships without dedesignating the hedge.

The Company does not expect these amendments to have a material effect on its financial statements.

ASU 2025-11, "Interim Reporting (Topic 270):

Narrow-Scope Improvements" amended the Interim Reporting topic in the Accounting Standards Codification to clarify current interim reporting requirements.

The amendments are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

The Company will apply the amendments retrospectively to any or all prior periods presented in the financial statements.

The Company does not expect these amendments to have a material effect on its 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 September 30, 2025 and December 31, 2024 are summarized as follows:

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

The book values and approximate fair values of investment securities at March 31, 2026 and December 31, 2025 are summarized as follows:

($ in thousands) March 31, 2026 December 31, 2025

Value Unrealized Amortized

11 unchanged sentences

Total held to maturity $ 511,429 $ 440,882 $ 5 $ ( 70,552 ) $ 513,099 $ 448,452 $ 19 $ ( 64,666 )

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 September 30, 2025 and December 31, 2024.

Accrued interest receivable on available for sale ("AFS") debt securities was $ 5.0 million and $ 4.6 million at September 30, 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 September 30, 2025 and December 31, 2024.

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

Accrued interest receivable on available for sale ("AFS") debt securities was $ 5.3 million and $ 5.2 million at March 31, 2026 and December 31, 2025, respectively.

Accrued interest receivable on held to maturity ("HTM") debt securities was $ 3.0 million and $ 4.2 million as of March 31, 2026 and December 31, 2025, respectively.

The following table presents information regarding all securities with unrealized losses at March 31, 2026:

Securities in an Unrealized

6 unchanged sentences

Losses Fair Value Unrealized

Treasuries $ 35,011 $ 315 $ — $ — $ 35,011 $ 315

Government-sponsored enterprise securities $ — $ — $ 1,769 $ 202 $ 1,769 $ 202

18 unchanged sentences

Total unrealized loss position $ 181,075 $ 769 $ 1,512,307 $ 265,224 $ 1,693,382 $ 265,993

As of September 30, 2025, the Company's securities portfolio included 580 securities of which 522 securities were in an unrealized loss position.

As of March 31, 2026, the Company's securities portfolio included 573 securities of which 506 securities were in an unrealized loss position.

As of December 31, 2025, the Company's securities portfolio included 573 securities of which 491 securities were in an unrealized loss position.

In the above tables, all of the securities that were in an unrealized loss position at September 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 the above tables, all of the securities that were in an unrealized loss position at March 31, 2026 and December 31, 2025 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.

3 unchanged sentences

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 September 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 September 30, 2025, by contractual maturity, are summarized in the table below.

At March 31, 2026 and December 31, 2025, the Company determined that expected credit losses associated with HTM securities were insignificant.

The book values and fair values of investment securities at March 31, 2026, 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 $ 2,177,316 $ 1,979,606 $ 511,429 $ 440,882

At September 30, 2025 and December 31, 2024, investment securities with carrying values of $ 914.8 million and $ 806.0 million, respectively, were pledged as collateral for public deposits.

In addition, at September 30, 2025 and December 31, 2024, investment securities with carrying values of $ 662.8 million and $ 661.0 million, respectively, were pledged as collateral to the Federal Reserve Bank ("Federal Reserve") to secure any such borrowings.

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

At March 31, 2026 and December 31, 2025, investment securities with carrying values of $ 888.7 million and $ 876.8 million, respectively, were pledged as collateral for public deposits.

In addition, at March 31, 2026 and December 31, 2025, investment securities with carrying values of $ 619.8 million and $ 622.1 million, respectively, were pledged as collateral to the Federal Reserve Bank ("Federal Reserve") to secure any such borrowings.

At March 31, 2026 and December 31, 2025, 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.

During the three and nine months ended September 30, 2025, as part of a securities loss-earnback transaction, the Company received proceeds from sales of securities of $ 166.4 million and recorded $ 27.9 million in losses from the sales.

There were no sales of investment securities during the three months ended September 30, 2024.

During the second quarter of 2024, the Company sold all of its holdings of Class B shares of Visa, Inc.

(“Visa”) stock that were received upon Visa’s initial public offering and recognized a gain of $ 4.5 million.

As the Class B stock did not initially have a readily determinable fair value, it was carried at$0 prior to the sale.

During the second quarter of 2024, the Company received proceeds from sales of securities of $ 138.2 million and recorded $ 4.7 million in losses from the sales.

This loss was partially offset by the $ 4.5 million gain on the sale of the Visa stock discussed above.

Included in "Securities losses, net" in the consolidated statements of income, during the first quarter of 2024, the Company received proceeds from the call of a security of $ 5.2 million and recorded a $ 975 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 $ 41.7 million and $ 41.3 million at September 30, 2025 and December 31, 2024, respectively.

There were no sales of investment securities during the three months ended March 31, 2026 or March 31, 2025.

Included in “Other assets” in the consolidated balance sheets are investments in Federal Home Loan Bank (“FHLB”) and Federal Reserve stock totaling $ 42.0 million and $ 41.6 million at March 31, 2026 and December 31, 2025, respectively.

These investments do not have readily determinable fair values.

The FHLB stock had a cost of $ 8.6 million and $ 8.5 million at September 30, 2025 and December 31, 2024, respectively, 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 $ 33.1 million and $ 32.7 million at September 30, 2025 and December 31, 2024, respectively, and is a requirement for Federal Reserve member bank qualification.

The FHLB stock had a cost of $ 8.9 million and $ 8.5 million at March 31, 2026 and December 31, 2025, respectively, 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 $ 33.1 million at March 31, 2026 and December 31, 2025, 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) September 30, 2025 December 31, 2024

($ in thousands) March 31, 2026 December 31, 2025

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) September 30, 2025 December 31, 2024

($ in thousands) March 31, 2026 December 31, 2025

Guaranteed portions of SBA loans included in table above $ 50,914 $ 61,501

2 unchanged sentences

Sold portions of SBA loans with servicing retained - not included in tables above $ 289,613 $ 284,649

At September 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 September 30, 2025 and December 31, 2024, l oans in the amount of $ 7.0 billion and $ 6.7 billion, respectively, were pledged as collateral to the Federal Reserve and the FHLB for borrowing capacity.

At March 31, 2026 and December 31, 2025, there were remaining unaccreted discounts on the retained portion of sold SBA loans amounting to $ 2.1 million and $ 2.0 million, respectively.

At March 31, 2026 and December 31, 2025, loans in the amount of $ 7.3 billion and $ 7.1 billion, respectively, were pledged as collateral to the Federal Reserve and the FHLB for borrowing capacity.

Refer to Note 5 for further discussion.

At September 30, 2025 and December 31, 2024, total loans included loans to directors and executive officers of the Company, and their associates, totaling approximately $ 61.4 million and $ 62.9 million, respectively.

Available credit on related party loans totaled $ 0.1 million and $ 1.0 million at September 30, 2025 and December 31, 2024, respectively.

As of September 30, 2025 and December 31, 2024, unamortized discounts on all acquired loans totaled $ 10.1 million and $ 15.1 million, respectively.

At March 31, 2026 and December 31, 2025, total loans included loans to directors and executive officers of the Company, and their associates, totaling approximately $ 60.2 million and $ 60.7 million, respectively.

Available credit on related party loans totaled zero and $ 0.3 million at March 31, 2026 and December 31, 2025, respectively.

As of March 31, 2026 and December 31, 2025, unamortized discounts on all acquired loans totaled $ 7.7 million and $ 8.8 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) September 30,

($ in thousands) March 31,

2026 December 31,

4 unchanged sentences

Total nonperforming assets $ 41,772 $ 37,740

At September 30, 2025 and December 31, 2024, the Company had $ 0.6 million and $ 1.2 million, respectively, in residential mortgage loans in the process of foreclosure.

At September 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 September 30, 2025:

At March 31, 2026 and December 31, 2025, the Company had $ 0.9 million and $ 1.0 million, respectively, in residential mortgage loans in the process of foreclosure.

At March 31, 2026 and December 31, 2025, there were commitments to lend an immaterial amount 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 March 31, 2026:

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

19 unchanged sentences

In the period that the Company places a loan on nonaccrual status, contractual interest income is reversed in the consolidated income statement.

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

($ in thousands) Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024

Commercial and industrial $ 295 $ 360

Construction, development & other land loans 42 —

Commercial real estate - owner occupied 325 238

Commercial real estate - non owner occupied 184 55

Residential 1-4 family real estate 120 45

Home equity loans/lines of credit 49 26

Consumer loans 4 1

Total $ 1,019 $ 725

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

The following table presents an analysis of the payment status of the Company’s loans as of March 31, 2026:

($ 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 following table presents an analysis of collateral dependent loans of the Company as of September 30, 2025:

The following table presents an analysis of collateral dependent loans of the Company as of March 31, 2026:

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

5 unchanged sentences

Commercial real estate - owner occupied $ 5,390 $ 5,390

Commercial real estate - non owner occupied 4,269 4,269

Total $ 9,659 $ 9,659

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, 2025.

The Company continues to utilize the third-party baseline forecast, which incorporates an equal probability of the United States economy performing better or worse than the projection, as the best forecast to use for macroeconomic factors in the model.

Management continued to consistently apply various other factors as described in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, such as prepayments, qualitative factor scorecards, macroeconomic drivers, reasonable and supportable forecast periods, reversion to long-term average, etc.

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

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 CECL model.

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

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

Commercial and industrial $ 18,506 $ ( 2,357 ) $ 580 $ 1,823 $ 18,552

Construction, development & other land loans 8,660 — 31 973 9,664

Commercial real estate - owner occupied 20,746 ( 890 ) 12 1,240 21,108

Commercial real estate - non owner occupied 24,425 — 9 257 24,691

Multi-family real estate 4,745 — — 655 5,400

Residential 1-4 family real estate 35,783 ( 3 ) 27 ( 1,813 ) 33,994

Home equity loans/lines of credit 3,445 — 2 ( 107 ) 3,340

Consumer loans 4,235 ( 400 ) 30 334 4,199

Total $ 120,545 $ ( 3,650 ) $ 691 $ 3,362 $ 120,948

As of and for the nine months ended September 30, 2025

As of and for the three months ended March 31, 2026

Commercial and industrial $ 20,044 $ ( 1,413 ) $ 331 $ 411 $ 19,373

8 unchanged sentences

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

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

Commercial and industrial $ 19,837 $ ( 1,913 ) $ 246 $ ( 27 ) $ 18,143

Construction, development & other land loans 9,996 — 35 1,394 11,425

Commercial real estate - owner occupied 17,859 ( 21 ) 4 657 18,499

Commercial real estate - non owner occupied 25,876 — 3 2,754 28,633

Multi-family real estate 5,129 — — 161 5,290

Residential 1-4 family real estate 24,855 — 28 9,183 34,066

Home equity loans/lines of credit 3,177 — 232 165 3,574

Consumer loans 3,329 ( 754 ) 17 496 3,088

Total $ 110,058 $ ( 2,688 ) $ 565 $ 14,783 $ 122,718

As of and for the nine months ended September 30, 2024

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

Commercial and industrial $ 19,474 $ ( 2,216 ) $ 497 $ 1,520 $ 19,275

14 unchanged sentences

($ in thousands) 2026 2025 2024 2023 2022 Prior Revolving Total

As of September 30, 2025

As of March 31, 2026

Commercial and industrial

112 unchanged sentences

For loans included in the “Combination” columns below, multiple types of modifications have been made on the same loan within the current reporting period.

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

($ 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 September 30, 2025

Commercial and industrial $ 66 $ 608 $ — $ 40 $ 714 0.08 %

Home equity loans/lines of credit — 327 — — 327 0.09 %

Total $ 66 $ 935 $ — $ 40 $ 1,041 0.01 %

As of and for the nine months ended September 30, 2025

Commercial and industrial $ 120 $ 712 $ — $ 40 $ 872 0.10 %

Construction, development & other land loans — 309 — — 309 0.04 %

The following table presents the amortized cost basis at March 31, 2026 of the loans modified during the three month periods then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted.

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

As of and for the three months ended March 31, 2026

Commercial real estate - owner occupied $ 1,675 $ — $ 1,675 0.12 %

2 unchanged sentences

Home equity loans/lines of credit — 297 297 0.08 %

Total $ 899 $ 1,951 $ 4,594 $ 40 $ 7,484 0.09 %

($ 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 September 30, 2024

Construction, development & other land loans $ — $ 143 $ — $ — $ 143 0.02 %

Home equity loans/lines of credit — 96 — — 96 0.03 %

Consumer loans — 19 19 0.03 %

Total $ 1,675 $ 443 $ 2,118 0.02 %

As of and for the nine months ended September 30, 2024

The following table presents the amortized cost basis at March 31, 2025 of the loans modified during the three month periods then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted.

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

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

Commercial and industrial $ 67 $ — $ — $ 67 0.01 %

Construction, development & other land loans — 208 — — 208 0.03 %

Commercial real estate - owner occupied — 741 — 741 0.06 %

Commercial real estate - non owner occupied 468 — 4,371 4,839 0.18 %

2 unchanged sentences

Total $ 535 $ 1,059 $ 4,371 $ 5,965 0.07 %

For the three and nine months ended September 30, 2025 and September 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 nine months ended September 30, 2025 of the modifications made for borrowers experiencing financial difficulty:

For the three months ended March 31, 2026 and March 31, 2025, 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, 2026 of the modifications made for borrowers experiencing financial difficulty:

Financial Effect of Modification to Borrowers Experiencing Financial Difficulty

Weighted Average Interest Rate Reduction Weighted Average Payment Delay

Weighted Average Payment Delay

(in months) Weighted Average Term Extension

For the three months ended September 30, 2025

Commercial and industrial 2.24 % 6 19

Home equity loans/lines of credit — % 0 10

For the nine months ended September 30, 2025

Commercial and industrial 2.24 % 6 30

Construction, development & other land loans — % 0 6

For the three months ended March 31, 2026

Commercial real estate - owner occupied 12 0

2 unchanged sentences

Home equity loans/lines of credit 0 109

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

Consumer loans 0 39

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

Financial Effect of Modification to Borrowers Experiencing Financial Difficulty

Weighted Average Interest Rate Reduction Weighted Average Payment Delay

Weighted Average Payment Delay

(in months) Weighted Average Term Extension

For the three months ended September 30, 2024

Construction, development & other land loans — % 0 8

Home equity loans/lines of credit — % 0 40

For the nine months ended September 30, 2024

For the three months ended March 31, 2025

Commercial and industrial 5 0

Construction, development & other land loans — % 0 6

Commercial real estate - owner occupied 0 11

Commercial real estate - non owner occupied 7 7

2 unchanged sentences

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 September 30, 2025:

The following table depicts the performance of loans that were modified in the last twelve months as of March 31, 2026:

Payment Status (Amortized Cost Basis)

6 unchanged sentences

Home equity loans/lines of credit 1,720 — 124 75

Consumer loans 19 — — —

$ 11,127 $ 404 $ 210 $ 1,203

3 unchanged sentences

Commercial and industrial $ 594 $ 38 $ — $ 563

Construction, development & other land loans 171 — — —

Commercial real estate - owner occupied 500 334 — —

3 unchanged sentences

$ 6,228 $ 502 $ — $ 563

The following table presents the amortized cost basis of loans that had a payment default during the three and nine months ended September 30, 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.

($ in thousands) Payment Delay Total

The following table presents the amortized cost basis of loans that had a payment default during the three months ended March 31, 2026 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty by loan category and type of concession granted.

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

Commercial and industrial $ — $ 405 $ 27 $ 432

Commercial real estate - owner occupied 324 63 — 387

Home equity loans/lines of credit — 124 — 124

Total $ 324 $ 592 $ 27 $ 943

During the three and nine months ended September 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 September 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.

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.

($ in thousands) Term Extension Total

Residential 1-4 family real estate $ 51 $ 51

Total $ 51 $ 51

At March 31, 2026 and December 31, 2025, there were no commitments to lend additional funds to a borrower experiencing financial difficulty for whom a modification had been made.

Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off.

6 unchanged sentences

Impact of Hurricane Helene

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 $ 674 million.

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

($ in thousands) Balance

Commercial and industrial $ 15,153

Construction, development & other land loans 13,025

Commercial real estate - owner occupied 93,322

Commercial real estate - non owner occupied 252,072

Multi-family real estate 24,519

Residential 1-4 family real estate 242,214

Home equity loans/lines of credit 33,257

Total $ 673,562

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 September 30, 2025.

The Company applied increased reserve rates based upon severe economic factors to the approximately $ 674 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 $ 3.5 million as of September 30, 2025, adding 5 basis points to the overall ACL as a percent of total loans, which was 1.44 % as of September 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 %.

In the portions of Western North and South Carolina that were significantly impacted by Hurricane Helene in third

quarter of 2024, the Company identified borrowers who were potentially impacted.

During 2026, the Company

evaluated the commercial loan portfolio and adjusted risk ratings and nonaccrual status as applicable.

for those relationships, the normal reserving process for March 31, 2026 was applied.

For the potentially

impacted consumer loans, the Company applied increased reserve rates based upon severe economic factors to

the approximately $ 258 million of loans (primarily Residential 1-4 family real estate) in the most impacted path of

Hurricane Helene.

Due to the potential exposure from Hurricane Helene, the ACL on these impacted consumer

loans was $ 1.9 million as of March 31, 2026, adding 2 basis points to the overall ACL as a percent of total

loans, which was 1.42 % as of March 31, 2026.

As of December 31, 2025, the ACL on the population of

potentially impacted commercial and consumer loans was $ 1.9 million, adding 2 basis points to the overall ACL

as a percent of total loans, which was 1.42 %.

Allowance for Unfunded Loan Commitments

4 unchanged sentences

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 nine months ended September 30, 2025 and 2024:

Three months ended September 30, Nine months ended September 30,

The following table presents the balance and activity in the allowance for unfunded loan commitments for the three months ended March 31, 2026 and 2025:

Three months ended March 31,

($ in thousands) 2026 2025

6 unchanged sentences

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.

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

($ in thousands) Gross Carrying

11 unchanged sentences

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 $ 1.4 million and $ 1.6 million for the three months ended September 30, 2025 and 2024, respectively, and $ 4.4 million and $ 5.0 million for the nine months ended September 30, 2025 and 2024.

Amortization expense of all amortizable intangible assets totaled $ 1.2 million and $ 1.5 million for the three months ended March 31, 2026 and 2025, respectively.

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

1 unchanged sentence

No triggering events were identified during 2026 to date and, therefore, the Company did not perform interim impairment evaluations.

The Company's most recent evaluation of goodwill, which occurred in the fourth quarter of 2024, indicated that there was no goodwill impairment.

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

Other than the expected amortization expense recognized during the nine months ended September 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 September 30, 2025 and 2024, respectively, and $ 2.0 million and $ 2.3 million for the nine months ended September 30, 2025 and 2024, respectively.

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

The Company's most recent evaluation of goodwill, which

occurred in the fourth quarter of 2025, indicated that there was no goodwill impairment.

There was no change to carrying amounts of goodwill during the three months ended March 31, 2026.

Other than the expected amortization expense recognized during the three months ended March 31, 2026, 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, 2025.

The Company recorded SBA guaranteed servicing fee income of $ 0.7 million during the three months ended March 31, 2026 and 2025.

There was no impairment of SBA servicing assets at March 31, 2026 and December 31, 2025 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 September 30, Nine months ended September 30,

Three months ended March 31,

($ in thousands) 2026 2025

3 unchanged sentences

Ending balance, net $ 1,816 $ 2,256

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

The following tables present information regarding the Company’s outstanding borrowings at March 31, 2026:

($ in thousands)

8 unchanged sentences

Trust Preferred Securities 6/23/2036 Quarterly by Company 8,248 5.80 % at 3/31/26 adjustable rate 3 month CME Term SOFR + 2.11 %

Subordinated Debentures 11/15/2030 Continuous by Company beginning 11/15/2025 18,000 4.38 % fixed at 9/30/25 until 11/15/25, then adjustable rate 3 month CME Term SOFR + 4.16 %

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

Total borrowings / weighted average rate as of March 31, 2026

78,064 5.88 %

12 unchanged sentences

Trust Preferred Securities 6/23/2036 Quarterly by Company 8,248 5.80 % at 12/31/25 adjustable rate 3 month CME Term SOFR + 2.11 %

Subordinated Debentures 11/15/2030 Continuous by Company beginning 11/15/2025 18,000 4.38 % fixed at 12/31/24 until 11/15/25, then adjustable rate 3 month CME Term SOFR + 4.16 %

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

3 unchanged sentences

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

As of September 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.

As of March 31, 2026, the Company leased 15 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.

1 unchanged sentence

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 20.8 years as of September 30, 2025 and 21.2 years as of December 31, 2024.

The weighted average remaining life of the lease term for these leases was 20.3 years as of March 31, 2026 and 20.8 years as of December 31, 2025.

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 3.41 % and 3.34 % as of September 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 $ 13.7 million and $ 14.6 million as of September 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 for the three months ended September 30, 2025 and 2024, and $ 1.9 million and $ 1.8 million for the nine months ended September 30, 2025 and 2024, respectively.

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

The weighted average discount rates for leases were 3.44 % and 3.41 % as of March 31, 2026 and December 31, 2025, 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 $ 13.7 million and $ 14.6 million as of March 31, 2026, respectively, and were $ 13.4 million and $ 14.2 million as of December 31, 2025, respectively.

Total operating lease expenses, included in "Other operating expenses" in the Company's consolidated statements of income, were $ 0.6 million for the three months ended March 31, 2026 and 2025.

Future undiscounted lease payments for operating leases with initial terms of greater than one year as of March 31, 2026 are as follows:

($ in thousands)

October 1, 2025 to December 31, 2025 $ 450

April 1, 2026 to December 31, 2026 $ 1,253

Thereafter 15,051

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 September 30, 2025:

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at March 31, 2026:

($ in thousands)

Description of Financial Instruments

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

Fair Value at March 31, 2026 Quoted Prices in Active Markets for Identical Assets

(Level 1) Significant Other

30 unchanged sentences

Individually evaluated loans $ 9,659 $ — $ — $ 9,659

Foreclosed real estate 168 — — 168

The following is a description of the valuation methodologies used for financial instruments measured at fair value.

14 unchanged sentences

The value of real estate collateral is generally determined by third-party appraisers using an income or market valuation approach based on an appraisal conducted by an independent, licensed third party appraiser (Level 3).

The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable borrower’s financial statements if not considered significant.

The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable borrower’s financial

statements if not considered significant.

Likewise, values for inventory and accounts receivable collateral are based on borrower financial statement balances or aging reports on a discounted basis as appropriate (Level 3).

6 unchanged sentences

For any real estate valuations subsequent to foreclosure, any excess of the real estate recorded value over the fair value of the real estate is treated as a foreclosed real estate write-down 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 September 30, 2025.

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

September 30, 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 March 31, 2026.

The carrying amounts and estimated fair values of financial instruments not carried at fair value at March 31, 2026 and December 31, 2025 were as follows:

March 31, 2026 December 31, 2025

($ in thousands) Level in Fair

20 unchanged sentences

Stock-Based Compensation

The Company recorded total stock-based compensation expense of $ 0.7 million and $ 1.4 million for the three months ended September 30, 2025 and 2024, respectively, and $ 2.8 million and $ 3.0 million for the nine months ended September 30, 2025 and 2024, respectively.

The Company recorded total stock-based compensation expense of $ 0.7 million and $ 1.0 million for the three months ended March 31, 2026 and 2025, 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 $ 163,000 an d $ 304,000 for the three months ended September 30, 2025 and 2024, respectively, and $ 647,000 and $ 675,000 for the nine months ended September 30, 2025 and 2024, respectively.

At September 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 September 30, 2025, the Equity Plan had 1,828,580 shares remaining available for grant.

The Company recog nized income tax benefits related to stock-based compensation expense in its income statement of $ 167,000 an d $ 238,000 for the three months ended March 31, 2026 and 2025, respectively.

At March 31, 2026, 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, 2026, the Equity Plan had 1,808,912 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.

5 unchanged sentences

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 nine months of 2025 related to the Company’s outstanding restricted stock awards:

The following table presents information regarding the activity for the first three months of 2026 related to the Company’s outstanding restricted stock awards:

Long-Term Restricted Stock Awards

5 unchanged sentences

Forfeited or expired during the period — —

Nonvested at September 30, 2025 220,241 $ 37.88

Total unrecognized compensation expense as of September 30, 2025 amounted to $ 4.1 million with a weighted average remaining term of 2.3 years.

For the nonvested awards that were outstanding at September 30, 2025, the Company expects to record $ 1.9 million in compensation expense in the next twelve months, $ 0.6 million of which is expected to be recorded in the remaining quarter of 2025.

Nonvested at March 31, 2026 178,570 $ 40.33

Total unrecognized compensation expense as of March 31, 2026 amounted to $ 3.6 million with a weighted average remaining term of 2.1 years.

For the nonvested awards that were outstanding at March 31, 2026, the Company expects to record $ 2.0 million in compensation expense in the next twelve months, $ 1.6 million of which is expected to be recorded in the remaining quarters of 2026.

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 September 30,

($ in thousands except per share amounts) Income

(Numerator) Shares

(Denominator) Per Share

Amount Income

(Numerator) Shares

(Denominator) Per Share

Net income $ 20,363 $ 18,680

income allocated to restricted stock ( 112 ) ( 134 )

Basic EPS per common share $ 20,251 41,237,874 $ 0.49 $ 18,546 40,971,520 $ 0.45

Net income $ 20,363 41,237,874 $ 18,680 40,971,520

Effect of dilutive securities — 243,668 — 395,223

Diluted EPS per common share $ 20,363 41,481,542 $ 0.49 $ 18,680 41,366,743 $ 0.45

For the Nine Months Ended September 30,

For the Three Months Ended March 31,

($ in thousands except per share amounts) Income

12 unchanged sentences

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

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

($ in thousands) March 31, 2026 December 31, 2025

Unrealized loss on securities available for sale $ ( 197,710 ) $ ( 194,122 )

5 unchanged sentences

Total accumulated other comprehensive income (loss) $ ( 152,112 ) $ ( 149,375 )

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

For the Three Months Ended September 30, 2025

($ in thousands) Unrealized Loss on

Available for Sale Postretirement Plans Asset

(Liability) Total

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

Other comprehensive income before reclassifications 14,734 — 14,734

Amounts reclassified from accumulated other comprehensive income 21,389 — 21,389

Net current period other comprehensive income 36,123 — 36,123

Ending balance $ ( 193,480 ) $ 85 $ ( 193,395 )

For the Three Months Ended September 30, 2024

The following tables disclose the changes in AOCI for the three months ended March 31, 2026 and 2025 (all amounts are net of tax):

For the Three Months Ended March 31, 2026

($ in thousands) Unrealized Loss on

3 unchanged sentences

Other comprehensive income before reclassifications ( 2,757 ) 20 ( 2,737 )

Amounts reclassified from accumulated other comprehensive income

Net current period other comprehensive income ( 2,757 ) 20 ( 2,737 )

Ending balance $ ( 152,053 ) $ ( 59 ) $ ( 152,112 )

For the Nine Months Ended September 30, 2025

For the Three Months Ended March 31, 2025

($ in thousands) Unrealized Loss on

3 unchanged sentences

Other comprehensive income before reclassifications 35,401 — 35,401

Amounts reclassified from accumulated other comprehensive income 21,389 — 21,389

Net current period other comprehensive income 35,401 — 35,401

Ending balance $ ( 246,713 ) $ 85 $ ( 246,628 )

For the Nine Months Ended September 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 52,274 — 52,274

Amounts reclassified from accumulated other comprehensive income

Net current period other comprehensive (loss) income 53,166 58 53,224

Ending balance $ ( 254,787 ) $ ( 19 ) $ ( 254,806 )

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.

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.

Revenue from Contracts with Customers

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 and nine months ended September 30, 2025 and 2024.

The following table presents the Company’s sources of noninterest income for the three months ended March 31, 2026 and 2025.

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

For the Three Months Ended For the Nine Months Ended

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

For the Three Months Ended

($ in thousands) March 31, 2026 March 31, 2025

Noninterest Income in-scope of ASC 606:

11 unchanged sentences

The Company is a bank holding company, whose principal activity is the ownership and management of its wholly-owned subsidiary, the Bank.

As a community focused financial institution, substantially all of the Company’s operations involve the delivery of loan and deposit products or the provision of financial advice to customers.

As a community focused financial institution, substantially all of the Company’s

operations involve the delivery of loan and deposit products or the provision of financial advice to customers.

Management makes operating decisions and assesses performance based on an ongoing review of these banking operations, which constitute the Company’s only operating segment for financial reporting purposes.

1 unchanged sentence

The measure of segment assets is reported on the balance sheet as total consolidated assets.

The role of chief operating decision maker is comprised of the executive leadership team to include the Company's Chief Executive Officer, the Bank's Chief Executive Officer, the Company's President, and the Company's Chief Financial Officer.

The role of chief operating decision maker is comprised of the executive leadership team to include the Company's Chief Executive Officer, the Bank's Chief Executive Officer, and the Company's Chief Financial Officer.

The chief operating decision makers use pre-tax net income to allocate resources in the annual budget and forecasting process.

1 unchanged sentence

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 $ 1.6 million and $ 1.9 million for the three months ended September 30, 2025 and 2024, respectively, and $ 5.1 million and $ 5.9 million for the nine months ended September 30, 2025 and 2024, respectively.

Depreciation expense amounted to $ 1.6 million and $ 1.8 million for the three months ended March 31, 2026 and 2025, respectively.

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

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