What changed in this filing

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Item 1. Financial Statements

2026-05-08 compared with 2025-11-07 · 219 added, 357 removed, 1327 unchanged (30% of the section changed)

5 unchanged sentences

We have reviewed the accompanying interim consolidated financial information of The First Bancorp, Inc.

and Subsidiary as of September 30, 2025 and 2024 and for the three-month and nine-month periods then ended, and the related notes (collectively referred to as the "interim financial information").

and Subsidiary as of March 31, 2026 and 2025 and for the three-month periods then ended, and the related notes (collectively referred to as the "interim financial information").

Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for them to be in conformity with accounting principles generally accepted in the United States of America.

5 unchanged sentences

Accordingly, we do not express such an opinion.

/s/ Berry Dunn McNeil & Parker, LLC

/s/ BDMP Assurance, LLP

Portland, Maine

November 7, 2025

Consolidated Balance Sheets (Unaudited) - The First Bancorp, Inc.

and Subsidiary

September 30, 2025 December 31, 2024 September 30, 2024

March 31, 2026 December 31, 2025 March 31, 2025

Cash and cash equivalents $ 23,607,000 $ 27,779,000 $ 26,432,000

1 unchanged sentence

Securities available for sale 256,788,000 264,480,000 280,764,000

Securities held-to-maturity (net of ACL), fair value of $ 316,574,000 at September 30, 2025, $ 314,993,000 at December 31, 2024 and $ 333,575,000 at September 30, 2024

Securities held-to-maturity (net of ACL), fair value of $ 308,676,000 at March 31, 2026, $ 315,482,000 at December 31, 2025 and $ 312,788,000 at March 31, 2025

354,057,000 355,928,000 368,571,000

Restricted equity securities, at cost 8,314,000 8,275,000 7,509,000

Loans held for sale 333,000 — —

Loans 2,405,149,000 2,394,109,000 2,383,150,000

3 unchanged sentences

Premises and equipment, net 28,720,000 28,767,000 28,626,000

Other real estate owned — 173,000 173,000

Goodwill 30,646,000 30,646,000 30,646,000

19 unchanged sentences

Net unrealized loss on securities transferred from available-for-sale to held-to-maturity ( 35,000 ) ( 38,000 ) ( 45,000 )

Net unrealized gain (loss) on cash flow hedging derivative instruments 19,000 157,000 ( 136,000 )

Net unrealized gain on cash flow hedging derivative instruments — — 82,000

Net unrealized gain on postretirement costs 240,000 240,000 287,000

9 unchanged sentences

and Subsidiary

For the nine months ended September 30, For the quarter ended September 30,

2025 2024 2025 2024

For the three months ended March 31,

Interest income

Interest and fees on loans (includes YTD tax-exempt income of $ 2,169,000 for September 30, 2025 and $ 1,824,000 for September 30, 2024)

Interest and fees on loans (includes YTD tax-exempt income of $ 591,000 for March 31, 2026 and $ 721,000 for March 31, 2025)

$ 34,725,000 $ 33,924,000

Interest on deposits with other banks 30,000 56,000

Interest and dividends on investments (includes YTD tax-exempt income of $ 5,865,000 for September 30, 2025 and $ 5,971,000 for September 30, 2024)

Interest and dividends on investments (includes YTD tax-exempt income of $ 1,902,000 for March 31, 2026 and $ 1,955,000 for March 31, 2025)

4,384,000 4,729,000

5 unchanged sentences

Net interest income 20,689,000 17,799,000

Credit loss expense (reduction) - loans 1,434,000 58,000 690,000 ( 580,000 )

Credit loss expense - loans 650,000 396,000

Credit loss (reduction) expense - debt securities HTM ( 1,000 ) 1,000

Credit loss expense (reduction) - off-balance sheet credit exposures 154,000 ( 487,000 ) 22,000 ( 134,000 )

Total credit loss expense (reduction) 1,578,000 ( 639,000 ) 700,000 ( 638,000 )

Credit loss reduction - off-balance sheet credit exposures ( 29,000 ) ( 5,000 )

Total credit loss expense 620,000 392,000

Net interest income after provision for credit losses 20,069,000 17,407,000

2 unchanged sentences

Service charges on deposit accounts 560,000 531,000

Net securities gains 12,000 —

Mortgage origination and servicing income, net of amortization 176,000 195,000

16 unchanged sentences

Other comprehensive income (loss) net of tax

Net unrealized gain on securities available for sale, net of taxes $ 9,148,000 $ 5,181,000 $ 3,714,000 $ 8,975,000

Net unrealized (loss) gain on securities available for sale, net of taxes $ ( 1,449,000 ) $ 3,969,000

Net unrealized gain on transferred securities, net of taxes 3,000 2,000

Net unrealized loss on hedging derivative instruments — ( 75,000 )

Other comprehensive gain 9,017,000 4,752,000 3,669,000 8,108,000

Other comprehensive (loss) gain ( 1,446,000 ) 3,896,000

Comprehensive income $ 7,547,000 $ 10,973,000

3 unchanged sentences

and Subsidiary

Nine Month Period Ended September 30, 2025 and 2024

Three Month Period Ended March 31, 2026 and 2025

Common stock and

17 unchanged sentences

Proceeds from sale of common stock 8,840 225,000 — — 225,000

Balance at September 30, 2024 11,148,066 $ 71,500,000 $ 219,559,000 $ ( 34,276,000 ) $ 256,783,000

Balance at March 31, 2025 11,196,881 $ 72,467,000 $ 225,592,000 $ ( 38,378,000 ) $ 259,681,000

Balance at December 31, 2025 11,222,363 $ 73,826,000 $ 240,456,000 $ ( 31,139,000 ) $ 283,143,000

Net income — — 8,993,000 — 8,993,000

Net unrealized gain on securities available for sale, net of tax — — — 9,148,000 9,148,000

Net unrealized loss on securities available for sale, net of tax — — — ( 1,449,000 ) ( 1,449,000 )

Net unrealized gain on securities transferred from available for sale to held to maturity, net of tax — — — 3,000 3,000

Net unrealized loss on hedging derivative instruments, net of tax — — — ( 138,000 ) ( 138,000 )

Comprehensive income — — 24,222,000 9,017,000 33,239,000

Comprehensive income (loss) — — 8,993,000 ( 1,446,000 ) 7,547,000

Cash dividends declared ($ 0.37 per share)

4 unchanged sentences

Proceeds from sale of common stock 8,539 236,000 — — 236,000

Balance at September 30, 2025 11,214,455 $ 73,388,000 $ 234,435,000 $ ( 33,257,000 ) $ 274,566,000

Three Month Period Ended September 30, 2025 and 2024

Common stock and

additional paid-in capital Retained

earnings Accumulated

comprehensive

income (loss) Total

shareholders'

Shares Amount

Balance at June 30, 2024 11,139,639 $ 71,053,000 $ 215,999,000 $ ( 42,384,000 ) $ 244,668,000

Net income — — 7,571,000 — 7,571,000

Net unrealized gain on securities available for sale, net of tax — — — 8,975,000 8,975,000

Net unrealized gain on securities transferred from available for sale to held to maturity, net of tax — — — 2,000 2,000

Net unrealized loss on cash flow hedging derivative instruments, net of tax — — — ( 869,000 ) ( 869,000 )

Comprehensive income — — 7,571,000 8,108,000 15,679,000

Cash dividends declared ($ 0.36 per share)

— — ( 4,011,000 ) — ( 4,011,000 )

Equity compensation expense — 230,000 — — 230,000

Payment to repurchase common stock ( 200 ) — — — —

Proceeds from sale of common stock 8,627 217,000 — — 217,000

Balance at September 30, 2024 11,148,066 $ 71,500,000 $ 219,559,000 $ ( 34,276,000 ) $ 256,783,000

Balance at June 30, 2025 11,205,861 $ 72,907,000 $ 229,511,000 $ ( 36,926,000 ) $ 265,492,000

Net income — — 9,082,000 — 9,082,000

Net unrealized gain on securities available for sale, net of tax — — — 3,714,000 3,714,000

Net unrealized gain on securities transferred from available for sale to held to maturity, net of tax — — — 20,000 20,000

Net unrealized loss on hedging derivative instruments, net of tax — — — ( 65,000 ) ( 65,000 )

Comprehensive income — — 9,082,000 3,669,000 12,751,000

Cash dividends declared ($ 0.37 per share)

— — ( 4,149,000 ) — ( 4,149,000 )

Equity compensation expense — 254,000 — — 254,000

Payment to repurchase common stock ( 225 ) — ( 9,000 ) — ( 9,000 )

Proceeds from sale of common stock 8,819 227,000 — — 227,000

Balance at September 30, 2025 11,214,455 $ 73,388,000 $ 234,435,000 $ ( 33,257,000 ) $ 274,566,000

Balance at March 31, 2026 11,271,014 $ 74,368,000 $ 245,001,000 $ ( 32,585,000 ) $ 286,784,000

See Report of Independent Registered Public Accounting Firm.

2 unchanged sentences

and Subsi diary

For the nine months ended September 30,

For the three months ended March 31,

Cash flows from operating activities

3 unchanged sentences

Change in deferred taxes 530,000 310,000

Credit loss expense (reduction) 1,578,000 ( 639,000 )

Credit loss expense 620,000 392,000

Loans originated for resale ( 1,530,000 ) ( 3,041,000 )

1 unchanged sentence

Net gain on sales of loans ( 57,000 ) ( 58,000 )

Net gain on sale or call of securities ( 12,000 ) —

Net amortization of premiums on investments 115,000 127,000

Net gain on sale of other real estate owned — ( 33,000 )

Provision for losses on other real estate owned — 35,000

Equity compensation expense 306,000 298,000

1 unchanged sentence

Net increase (decrease) in other liabilities 22,507,000 ( 3,214,000 )

Net (gain) loss on disposal of premises and equipment ( 10,000 ) 9,000

Net loss (gain) on disposal of premises and equipment 1,000 ( 15,000 )

Amortization of investment in limited partnership 466,000 309,000

2 unchanged sentences

Cash flows from investing activities

Decrease (increase) in interest-bearing deposits in other banks 14,875,000 ( 13,711,000 )

(Increase) decrease in interest-bearing deposits in other banks ( 25,951,000 ) 19,162,000

Proceeds from sales of securities available for sale 1,410,000 —

Proceeds from maturities, payments and calls of securities available for sale 10,380,000 8,471,000

9 unchanged sentences

Cash flows from financing activities

Net increase in demand, savings, and money market accounts 55,583,000 47,977,000

Net (decrease) increase in certificates of deposit ( 43,284,000 ) 55,079,000

Net increase (decrease) in short-term borrowings 6,190,000 ( 13,625,000 )

Advances on long-term borrowings 500,000 95,000,000

Net decrease in demand, savings, and money market accounts ( 58,584,000 ) ( 68,621,000 )

Net increase in certificates of deposit 58,475,000 54,705,000

Net increase in short-term borrowings 7,975,000 64,166,000

Repayment on long-term borrowings — ( 25,000,000 )

Payment to repurchase common stock ( 278,000 ) ( 277,000 )

2 unchanged sentences

Net cash provided by financing activities 3,786,000 21,299,000

Net increase in cash and cash equivalents 3,970,000 3,194,000

Net decrease in cash and cash equivalents ( 4,172,000 ) ( 1,204,000 )

Cash and cash equivalents at beginning of period 27,779,000 27,636,000

Cash and cash equivalents at end of period $ 23,607,000 $ 26,432,000

For the nine months ended September 30,

For the three months ended March 31,

Interest paid $ 18,322,000 $ 20,843,000

Income taxes paid 3,710,000 3,577,000

Non-cash transactions

Change in net unrealized loss on available for sale securities, net of tax $ 1,449,000 $ ( 3,969,000 )

Net transfer from loans to other real estate owned — 208,000

See Report of Independent Registered Public Accounting Firm.

39 unchanged sentences

Risks and Uncertainties

Global markets have normalized after experiencing heightened volatility amidst an escalation of trade disputes, and the continuing impacts of ongoing conflicts between Russia and Ukraine, and Israel and Hamas, as well as other conflicts globally.

Trade agreements have been reached between the U.S.

and most of its major trading partners, and significant progress made to bring an end to hostilities in the Middle East.

All have the potential to reignite leading to economic uncertainty and geopolitical instability.

government entered into a partial shutdown to start its new fiscal year after Congress failed to pass a continuing resolution to provide funding.

The duration of the shutdown is unknown and economic impacts difficult to measure.

The FOMC lowered short term interest rates in September and October, and has signaled further rate cuts could be forthcoming provided progress continues to be made towards reaching its inflation targets, or would be likely in the event

of a significant weakening in the nation's employment outlook.

Global markets have experienced heightened volatility following military actions initiated against Iran and subsequent retaliation.

Economic impacts in the U.S.

have included a modest increase in interest rates across the yield curve, a drop in equity markets to near correction territory before rebounding, increased fuel prices, speculation around a re-kindling of inflation, and change in expectation from several rates cuts by the FOMC in 2026 to none.

The duration of the Iran conflict is unknown and economic impacts difficult to measure.

Any or all of the foregoing could ultimately have negative downstream effects on the Company's operating results, the extent of which is indeterminable at this time.

Subsequent Events

Events occurring subsequent to September 30, 2025, have been evaluated as to their potential impact to the financial statements.

Events occurring subsequent to March 31, 2026, have been evaluated as to their potential impact to the financial statements.

Note 2 – Investment Securities

The following table summarizes the amortized cost and estimated fair value of investment securities at September 30, 2025:

The following table summarizes the amortized cost and estimated fair value of investment securities at March 31, 2026:

Cost Unrealized Gains Unrealized Losses Fair Value (Estimated)

37 unchanged sentences

$ 8,275,000 $ — $ — $ 8,275,000

The following table summarizes the amortized cost and estimated fair value of investment securities at September 30, 2024:

The following table summarizes the amortized cost and estimated fair value of investment securities at March 31, 2025:

Cost Unrealized Gains Unrealized Losses Fair Value (Estimated)

24 unchanged sentences

Similarly, the agency and mortgage-backed securities in the HTM portfolio have been determined to all be investment grade with no ACL required.

Municipal securities within HTM include two private activity bonds issued by well-known customers of the Bank with total balances of $ 18,536,000 as of September 30, 2025.

Municipal securities within HTM include two private activity bonds issued by well-known customers of the Bank with total balances of $ 18,220,000 as of March 31, 2026.

Corporate securities in HTM consist of 11 individual companies in the banking industry.

1 unchanged sentence

Aggregate credit risk of the private activity bonds and corporate securities is considered very low and an immaterial ACL has been established.

As of September 30, 2025 and 2024, and December 31, 2024, the total ACL for HTM securities was $ 186,000 , $ 224,000 and $ 196,000 , respectively.

As of March 31, 2026 and 2025, and December 31, 2025, the total ACL for HTM securities was $ 145,000 , $ 197,000 and $ 146,000 , respectively.

Changes in the ACL are recorded as credit loss expense, or reduction.

1 unchanged sentence

Contractual Maturities:

The following table summarizes the contractual maturities of investment securities at September 30, 2025:

The following table summarizes the contractual maturities of investment securities at March 31, 2026:

Securities available for sale Securities to be held to maturity

15 unchanged sentences

$ 304,153,000 $ 264,480,000 $ 356,074,000 $ 315,482,000

The following table summarizes the contractual maturities of investment securities at September 30, 2024:

The following table summarizes the contractual maturities of investment securities at March 31, 2025:

Securities available for sale Securities to be held to maturity

7 unchanged sentences

Pledged Securities:

At September 30, 2025, securities with a carrying value of $ 365,383,000 were pledged to secure public deposits, repurchase agreements, and for other purposes as required by law.

This compares to securities with a carrying value of $ 349,833,000 as of December 31, 2024 and $ 344,261,000 at September 30, 2024, pledged for the same purposes.

Realized Gains and Losses:

At March 31, 2026, securities with a carrying value of $ 361,776,000 were pledged to secure public deposits, repurchase agreements, and for other purposes as required by law.

This compares to securities with a carrying value of $ 385,197,000 as of December 31, 2025 and $ 351,890,000 at March 31, 2025, pledged for the same purposes.

Realized Gains and Losses on AFS Securities:

Gains and losses on the sale of securities are computed by subtracting the amortized cost at the time of sale from the security's selling price, net of accrued interest to be received.

There were no gains or losses on the sale of securities for the nine months ended September 30, 2025 and 2024.

The following table shows securities gains and losses on AFS securities for the three months ended March 31, 2026 and 2025:

For the three months ended March 31,

Proceeds from sales of securities $ 1,410,000 $ —

Gross realized gains 12,000 —

Net gain $ 12,000 $ —

Related income taxes $ 3,000 $ —

Unrealized Gains and Losses on AFS Securities:

As of September 30, 2025, there were 233 AFS securities with unrealized losses held in the Company's portfolio.

As of March 31, 2026, there were 232 AFS securities with unrealized losses held in the Company's portfolio.

The Company has the ability and intent to hold its securities which are in an unrealized loss position until a recovery of their amortized cost, which may be at maturity.

The following table summarizes AFS debt securities in an unrealized loss position for which an ACL has not been recorded at September 30, 2025, aggregated by major security type and length of time in a continuous unrealized loss position:

The following table summarizes AFS debt securities in an unrealized loss position for which an ACL has not been recorded at March 31, 2026, aggregated by major security type and length of time in a continuous unrealized loss position:

Less than 12 months 12 months or more Total

6 unchanged sentences

As of December 31, 2025, there were 225 AFS securities with unrealized losses held in the Company's portfolio.

The Company has the ability and intent to hold its securities which are in an unrealized loss position until a recovery of their amortized cost, which may be at maturity.

The Company has the ability and intent to hold securities which are in an unrealized loss position until a recovery of their amortized cost, which may be at maturity.

The following table summarizes AFS debt securities in an unrealized loss position for which an ACL has not been recorded at December 31, 2025 aggregated by major security type and length of time in a continuous unrealized loss position:

4 unchanged sentences

State and political subdivisions — — 30,672,000 ( 4,989,000 ) 30,672,000 ( 4,989,000 )

Asset-backed securities — — 1,096,000 ( 15,000 ) 1,096,000 ( 15,000 )

$ 1,732,000 $ ( 4,000 ) $ 226,933,000 $ ( 40,115,000 ) $ 228,665,000 $ ( 40,119,000 )

As of September 30, 2024, there were 226 AFS securities with unrealized losses held in the Company's portfolio.

The Company has the ability and intent to hold its securities which are in an unrealized loss position until a recovery of their amortized cost, which may be at maturity.

The following table summarizes AFS debt securities in an unrealized loss position for which an ACL has not been recorded at September 30, 2024 aggregated by major security type and length of time in a continuous unrealized loss position:

As of March 31, 2025, there were 237 AFS securities with unrealized losses held in the Company's portfolio.

The Company has the ability and intent to hold securities which are in an unrealized loss position until a recovery of their amortized cost, which may be at maturity.

The following table summarizes AFS debt securities in an unrealized loss position for which an ACL has not been recorded at March 31, 2025 aggregated by major security type and length of time in a continuous unrealized loss position:

Less than 12 months 12 months or more Total

3 unchanged sentences

State and political subdivisions 4,862,000 ( 172,000 ) 27,720,000 ( 7,196,000 ) 32,582,000 ( 7,368,000 )

Asset-backed securities 1,173,000 ( 6,000 ) — — 1,173,000 ( 6,000 )

$ 15,009,000 $ ( 283,000 ) $ 232,643,000 $ ( 49,100,000 ) $ 247,652,000 $ ( 49,383,000 )

10 unchanged sentences

These securities are regularly monitored as part of an overall credit relationship with the issuers;

both issuers were in good standing as of September 30, 2025.

both issuers were in good standing as of March 31, 2026.

HTM corporate debt holdings consist of 11 individual companies in the banking industry.

Management conducts periodic reviews of the collectability of these securities taking into consideration such factors as the financial condition of the issuers;

each issuer was in good standing as of September 30, 2025.

each issuer was in good standing as of March 31, 2026.

ACL for HTM Securities:

The following tables present the activity in the ACL for HTM debt securities by major security type for the nine months and quarters ended September 30, 2025 and 2024:

For the nine months ended

September 30, 2025 September 30, 2024

State and Political Subdivisions Corporate Securities Total State and Political Subdivisions Corporate Securities Total

Allowance for credit losses:

Beginning balance $ 80,000 $ 116,000 $ 196,000 $ 212,000 $ 222,000 $ 434,000

Credit loss (reduction) expense

( 3,000 ) ( 7,000 ) ( 10,000 ) ( 126,000 ) ( 84,000 ) ( 210,000 )

Securities charged-off — — — — — —

Recoveries — — — — — —

Total ending allowance balance $ 77,000 $ 109,000 $ 186,000 $ 86,000 $ 138,000 $ 224,000

The following tables present the activity in the ACL for HTM debt securities by major security type for the three months ended March 31, 2026 and 2025:

For the three months ended

September 30, 2025 September 30, 2024

March 31, 2026 March 31, 2025

State and Political Subdivisions Corporate Securities Total State and Political Subdivisions Corporate Securities Total

6 unchanged sentences

Total ending allowance balance $ 67,000 $ 78,000 $ 145,000 $ 81,000 $ 116,000 $ 197,000

1 September 30, 2024 total of $ 75,000 will not tie to Consolidated Statement of Income Credit loss reduction - debt securities HTM due to rounding.

There was no ACL on U.S.

Government-sponsored enterprise, agency securities, or mortgage-backed securities as of September 30, 2025 .

Government-sponsored enterprise, agency securities, or mortgage-backed securities as of March 31, 2026 .

A security is considered to be past due once it is 30 days contractually past due under the terms of the agreement.

As of September 30, 2025, none of the Company’s HTM debt securities were past due or on non-accrual status.

As of March 31, 2026, none of the Company’s HTM debt securities were past due or on non-accrual status.

Re-Classified Securities:

2 unchanged sentences

The net unrealized holding loss at the time of transfer continues to be reported in AOCI, net of tax and is amortized over the remaining lives of the securities as an adjustment of the yield.

The amortization of the net unrealized loss reported in AOCI will offset the effect on interest income

of the discount for the transferred securities.

The remaining unamortized balance of the net unrealized losses for the securities transferred from available for sale to held to maturity was $ 40,000 , net of taxes, at September 30, 2025.

This compares to $ 47,000 and $ 49,000 , net of taxes, at December 31, 2024 and September 30, 2024, respectively.

The amortization of the net unrealized loss reported in AOCI will offset the effect on interest income of the discount for the transferred securities.

The remaining unamortized balance of the net unrealized losses for the securities transferred from available for sale to held to maturity was $ 35,000 , net of taxes, at March 31, 2026.

This compares to $ 38,000 and $ 45,000 , net of taxes, at December 31, 2025 and March 31, 2025, respectively.

These securities were transferred as a part of the Company's overall investment and balance sheet strategies.

3 unchanged sentences

The Bank uses the FHLBB for a portion of its wholesale funding needs.

As of September 30, 2025 and 2024, and December 31, 2024, the Bank's investment in FHLBB stock totaled $ 5,879,000 , $ 5,383,000 and $ 6,166,000 , respectively.

As of March 31, 2026 and 2025, and December 31, 2025, the Bank's investment in FHLBB stock totaled $ 7,277,000 , $ 6,472,000 and $ 7,238,000 , respectively.

FHLBB stock is a non-marketable equity security and therefore is reported at cost, which equals par value.

2 unchanged sentences

The Bank uses FRBB for certain correspondent banking services and maintains borrowing capacity at its discount window.

The Bank's investment in FRBB stock totaled $ 1,037,000 at September 30, 2025 and 2024, and December 31, 2024.

The Bank's investment in FRBB stock totaled $ 1,037,000 at March 31, 2026 and 2025, and December 31, 2025.

The Company periodically evaluates its investment in FHLBB and FRBB stock for impairment based on, among other factors, the capital adequacy of the Banks and their overall financial condition.

No impairment losses have been recorded through September 30, 2025.

No impairment losses have been recorded through March 31, 2026.

The Bank will continue to monitor its investment in these restricted equity securities.

5 unchanged sentences

Loan Portfolio by Class:

The following table shows the composition of the Company's loan portfolio by class of financing receivable as of September 30, 2025 and 2024 and at December 31, 2024:

September 30, 2025 December 31, 2024 September 30, 2024

The following table shows the composition of the Company's loan portfolio by class of financing receivable as of March 31, 2026 and 2025 and at December 31, 2025:

March 31, 2026 December 31, 2025 March 31, 2025

Real estate owner occupied $ 382,594,000 15.9 % $ 378,263,000 15.8 % $ 370,465,000 15.5 %

10 unchanged sentences

Total $ 2,405,149,000 100.0 % $ 2,394,109,000 100.0 % $ 2,383,150,000 100.0 %

Loan balances include net deferred loan costs of $ 12,837,000 as of September 30, 2025, $ 12,457,000 as of December 31, 2024, and $ 12,266,000 as of September 30, 2024.

Net deferred loan costs have increased from a year ago and year-to-date based upon loan origination unit volume over the periods, prepayments, and normal repayment activity.

Loan balances include net deferred loan costs of $ 12,669,000 as of March 31, 2026, $ 12,737,000 as of December 31, 2025, and $ 12,570,000 as of March 31, 2025.

Net deferred loan costs have stayed within a narrow range as compared to year ago and year-to-date based upon loan origination unit volume over the periods, prepayments, and normal repayment activity.

Loan balances in the Residential Term segment also include a valuation adjustment for fair value swaps hedged by certain loans in the portfolio.

This adjustment added $ 958,000 , $ 758,000 and $ 2,462,000 to the loan balances as of September 30, 2025, December 31, 2024 and September 30, 2024, respectively.

Also included in Residential term loan balances is a valuation adjustment for the

market value of caps which added $ 370,000 to loan balances as of September 30, 2025.

There was no market value of caps adjustment as of December 31, 2024 and September 30, 2024.

This adjustment added $ 502,000 , $ 910,000 and $ 1,120,000 to the loan balances as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

Also included in Residential term loan balances is a valuation adjustment for the market value of caps which subtracted $ 164,000 and added $ 371,000 to loan balances as of March 31, 2026 and December 31, 2025, respectively.

There was no market value of caps adjustment as of March 31, 2025.

Pledged Loans:

Pursuant to collateral agreements, qualifying first mortgage loans and commercial real estate loans, which totaled $ 663,439,000 at September 30, 2025, were used to collateralize borrowings from the FHLBB.

This compares to qualifying loans which totaled $ 626,851,000 at December 31, 2024, and $ 622,370,000 at September 30, 2024.

In addition, commercial, residential construction and home equity loans totaling $ 376,592,000 at September 30, 2025, $ 392,562,000 at December 31, 2024, and $ 364,068,000 at September 30, 2024, were used to collateralize a standby line of credit at the FRBB.

Pursuant to collateral agreements, qualifying first mortgage loans and commercial real estate loans, which totaled $ 662,819,000 at March 31, 2026, were used to collateralize borrowings from the FHLBB.

This compares to qualifying loans which totaled $ 669,541,000 at December 31, 2025, and $ 631,410,000 at March 31, 2025.

In addition, commercial, residential construction and home equity loans totaling $ 394,989,000 at March 31, 2026, $ 366,032,000 at December 31, 2025, and $ 411,257,000 at March 31, 2025, were used to collateralize a standby line of credit at the FRBB.

Past Due Loans:

For all loan classes, loans over 30 days past due are considered delinquent.

Information on the past-due status of loans by class of financing receivable as of September 30, 2025, is presented in the following table:

Information on the past-due status of loans by class of financing receivable as of March 31, 2026, is presented in the following table:

Past Due 60-89 Days

29 unchanged sentences

Total $ 6,799,000 $ 4,406,000 $ 10,402,000 $ 21,607,000 $ 2,372,502,000 $ 2,394,109,000 $ 665,000

Information on the past-due status of loans by class of financing receivable as of September 30, 2024, is presented in the following table:

Information on the past-due status of loans by class of financing receivable as of March 31, 2025, is presented in the following table:

Past Due 60-89 Days

19 unchanged sentences

As a general rule, a loan may be restored to accrual status when payments are current for a substantial period of time, generally six months, and repayment of the remaining contractual amounts is expected, or when it otherwise becomes well secured and in the process of collection.

The following table presents the amortized cost basis of loans on non-accrual status as of September 30, 2025, December 31, 2024 and September 30, 2024:

September 30, 2025 December 31, 2024 September 30, 2024

The following table presents the amortized cost basis of loans on non-accrual status as of March 31, 2026, December 31, 2025 and March 31, 2025:

March 31, 2026 December 31, 2025 March 31, 2025

Non-accrual with Allowance for Credit Loss Non-accrual with no Allowance for Credit Loss Total Non-accrual Non-accrual with Allowance for Credit Loss Non-accrual with no Allowance for Credit Loss Total Non-accrual Non-accrual with Allowance for Credit Loss Non-accrual with no Allowance for Credit Loss Total Non-accrual

15 unchanged sentences

If the measure of an IAL loan is lower than the recorded investment in the loan and estimated selling costs, a specific reserve is established for the difference, or, in certain situations, if the measure of an IAL loan is lower than the recorded investment in the loan and estimated selling costs, the difference is written off.

The following table presents the amortized cost basis of collateral-dependent loans as of September 30, 2025, December 31, 2024 and September 30, 2024, by collateral type:

September 30, 2025 December 31, 2024 September 30, 2024

The following table presents the amortized cost basis of collateral-dependent loans as of March 31, 2026, December 31, 2025 and March 31, 2025, by collateral type:

March 31, 2026 December 31, 2025 March 31, 2025

Collateral Type Collateral Type Collateral Type

Commercial Real Estate Residential Real Estate Other Commercial Real Estate Residential Real Estate Other Commercial Real Estate Residential Real Estate

Commercial Real Estate Residential Real Estate Other Commercial Real Estate Residential Real Estate Other Commercial Real Estate Residential Real Estate Other

Real estate owner occupied $ 3,842,000 $ 245,000 $ — $ 3,626,000 $ — $ — $ 260,000 $ — $ —

7 unchanged sentences

Construction — — — — — — — — —

Home equity — — —

Revolving and term — 307,000 — — 361,000 — — — —

4 unchanged sentences

It is the intent to minimize future losses while providing borrowers with financial relief.

The following table represents loan modifications made to borrowers experiencing financial difficulty by modification type and class of financing receivable, during the three months ended September 30, 2025:

Amortized Cost Basis

Payment Deferral Term Extension Rate Mod Combination Payment Deferral and Term Extension % of Total Class of Financing Receivable

Payment Deferral Term Extension Combination Payment Deferral and Term Extension Combination Payment Deferral, Term Extension and Rate Mod % of Total Class of Financing Receivable

Real estate owner occupied $ — $ 135,000 $ 243,000 $ — 0.10 %

10 unchanged sentences

Total $ 75,000 $ 135,000 $ 916,000 $ 1,559,000

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the three months ended September 30, 2025:

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the three months ended March 31, 2026:

Payment Deferral

Financial Effect

Real estate owner occupied Temporary payment accommodation, payments deferred to end of loan.

Real estate non-owner occupied Temporary payment accommodation, payments deferred to end of loan.

C&I Temporary payment accommodation, payments deferred to end of loan.

Agriculture Temporary payment accommodation, payments deferred to end of loan.

Term Extension

1 unchanged sentence

Real estate owner occupied Temporary payment accommodation, extended term 9 months.

C&I Temporary payment accommodation, extended term 6 months.

Financial Effect

Multifamily Rate reduction to 5.0 %

Combination Payment Deferral and Term Extension

Financial Effect

Real estate owner occupied Temporary payment accommodation, payments deferred to end of loan.

C&I Payments deferred for 3 months;

term increased 3 months

Agriculture Payments deferred for 3 months;

term increased 3 months

Term Temporary payment accommodation, payments deferred to end of loan.

The following table represents loan modifications made to borrowers experiencing financial difficulty by modification type and class of financing receivable, during the nine months ended September 30, 2025:

Revolving and term Temporary payment accommodation, payments deferred to end of loan.

Combination Payment Deferral, Term Extension and Rate Modification

Financial Effect

Real estate non-owner occupied Temporary payment and rate accommodations, payments deferred to end of loan.

Term Temporary payment and rate accommodations, payments deferred to end of loan.

Amortized Cost Basis

Payment Deferral Term Extension Rate Mod Combination Payment Deferral and Term Extension Combination Payment Deferral and Rate Mod Combination of Payment Deferral, Term & Rate Mod % of Total Class of Financing Receivable

Payment Deferral Term Extension Rate Modification Combination Payment Deferral and Term Extension % of Total Class of Financing Receivable

Real estate owner occupied $ 158,000 $ — $ — $ — 0.04 %

10 unchanged sentences

Total $ 2,682,000 $ 364,000 $ — $ —

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the nine months ended September 30, 2025:

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

Payment Deferral

1 unchanged sentence

Real estate owner occupied Temporary payment accommodation, payments deferred to end of loan.

5 yr balloon payment

Real estate non-owner occupied Temporary payment accommodation, payments deferred to end of loan.

C&I Temporary payment accommodation, payments deferred to end of loan.

1 unchanged sentence

Agriculture Temporary payment accommodation, payments deferred to end of loan.

payments deferred for 6 months

Term Extension

Financial Effect

Real estate non-owner occupied Temporary payment accommodation, extended term up to 6 months.

C&I Temporary payment accommodation, extended term 6 months.

Financial Effect

Multifamily Rate reduction to 5.0 %

Combination Payment Deferral and Term Extension

Financial Effect

Real estate owner occupied Temporary payment accommodation, payments deferred to end of loan.

C&I Temporary payment accommodation, payments deferred to end of loan.

Term Temporary payment accommodation, payments deferred to end of loan.

Revolving and term Temporary payment accommodation, payments deferred to end of loan.

Combination of Payment Deferral & Rate Mod

Financial Effect

Real estate non-owner occupied Payments deferred for 6 months;

rate reduction to 2.0 %

C&I Payments deferred for 6 months;

rate reduction to 2.0 %

Combination of Payment Deferral, Term & Rate Mod

Financial Effect

Real estate non-owner occupied Seasonal payments, 5 yr balloon;

60 month term, 120 month amort;

Term Seasonal payments, 3 yr balloon;

36 month term, 300 month amort;

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

In its monitoring, the Company considers an event of payment default to be a payment past due thirty days or more, and counts all such events even if subsequently cured.

The following tables depict the amortized cost basis of loans that were modified during the previous 12 months as of March 31, 2026 and 2025, that had an event of payment default at some point during the 12 month period:

Amortized Cost Basis

Payment Deferral Term Extension Rate Mod Principal Forgiveness Combination Payment Deferral and Term Extension % of Total Class of Financing Receivable

As of March 31, 2026 Payment Deferral Term Extension Combination Payment Deferral and Term Extension Combination Payment Deferral, Term Extension and Rate Modification

Real estate owner occupied $ — $ — $ 318,000 $ —

Real Estate non-owner occupied — 252,000 — 1,229,000

Construction — — — — — — %

C&I 309,000 — 128,000 —

Multifamily — — — — — — %

Agriculture 719,000 — — —

Municipal — — — — — — %

Term — — 194,000 330,000

Construction — — — — — — %

Revolving and term — — 306,000 —

Consumer — — — — — — %

Total $ 1,028,000 $ 252,000 $ 946,000 $ 1,559,000

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the three months ended September 30, 2024:

Payment Deferral

Financial Effect

C&I Temporary payment accommodation, extended term 90 days.

Amortized Cost Basis

Payment Deferral Term Extension Rate Mod Principal Forgiveness Combination Payment Deferral and Term Extension % of Total Class of Financing Receivable

Real estate owner occupied $ 635,000 $ — $ — $ — $ — 0.18 %

Real estate non-owner occupied — — — — — — %

Construction 69,000 — — — — 0.08 %

C&I 175,000 — — — 225,000 0.11 %

Multifamily 1,932,000 — — — — 1.75 %

Agriculture — — — — — — %

Municipal — — — — — — %

Term 1,020,000 — — — — 0.15 %

Construction — — — — — — %

Revolving and term — — — — 68,000 0.06 %

Consumer — — — — — — %

Total $ 3,831,000 $ — $ — $ — $ 293,000

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the nine months ended September 30, 2024:

Payment Deferral

Financial Effect

Real estate owner occupied Temporary payment accommodation, payments deferred to end of loan.

Construction Temporary payment accommodation, payments deferred to end of loan.

C&I Temporary payment accommodation, payments deferred to end of loan.

Multifamily Temporary payment accommodation, payments deferred to end of loan.

Term Temporary payment accommodation, payments deferred to end of loan.

Payment Deferral & Term Extension

Financial Effect

C&I Temporary payment accommodation, extended term 90 days.

Revolving and Term Temporary payment accommodation, extended term 60 days.

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

The following table depicts loans that were modified during the previous 12 months as of September 30, 2025 which defaulted upon the modified terms within 12 months of the modification:

Payment Status (Amortized Cost Basis)

Past Due 60-89 Days

Past Due 90+ Days

Real estate owner occupied $ 257,000 $ — $ —

Real Estate non-owner occupied 1,285,000 — —

Construction — — —

As of March 31, 2025 Payment Deferral Term Extension Combination Payment Deferral and Term Extension

C&I $ — $ 11,000 $ 170,000

Multifamily — — —

Agriculture — — —

Term — 125,000 —

Revolving and term 367,000 — —

Consumer — — —

Total $ — $ 136,000 $ 170,000

The following table depicts the performance of loans that have been modified during the previous 12 months as of September 30, 2025:

The following table depicts the performance of loans that have been modified during the previous 12 months as of March 31, 2026:

Payment Status (Amortized Cost Basis)

4 unchanged sentences

Real Estate non-owner occupied 1,656,000 — — —

Construction — — — —

C&I 1,696,000 — — 197,000

5 unchanged sentences

Total $ 10,807,000 $ — $ — $ 408,000

The following table depicts loans that were modified during the previous 12 months as of September 30, 2024 which defaulted upon the modified terms within 12 months of the modification:

Payment Status (Amortized Cost Basis)

Past Due 60-89 Days

Past Due 90+ Days

Real estate owner occupied $ 503,000 $ — $ 283,000

C&I 41,000 205,000 —

Term — 449,000 —

Consumer — — 13,000

Total $ 544,000 $ 654,000 $ 296,000

The following table depicts the performance of loans that had been modified during the the previous 12 months as of September 30, 2024:

The following table depicts the performance of loans that had been modified during the the previous 12 months as of March 31, 2025:

Payment Status (Amortized Cost Basis)

6 unchanged sentences

Multifamily 910,000 — — —

Agriculture 1,536,000 — — —

Term — 125,000 — —

3 unchanged sentences

Loans in Process of Foreclosure:

As of September 30, 2025, there were three mortgage loans collateralized by residential real estate with a total balance of $ 935,000 and one home equity line of credit collateralized by residential real estate with a total balance of $ 63,000 , in the process of foreclosure.

This compares to three mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $ 192,000 as of December 31, 2024, and two mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $ 127,000 as of September 30, 2024.

As of March 31, 2026, there were eight mortgage loans collateralized by residential real estate with a total balance of $ 1,788,000 ;

one home equity line of credit collateralized by residential real estate with a balance of $ 63,000 ;

and one consumer loan collateralized by land with a balance of $ 7,000 , in the process of foreclosure.

There were also 13 commercial loans collateralized by either residential real estate or owner-occupied commercial real estate with a total balance of $ 6,436,000 , in the process of foreclosure.

This compares to seven mortgage loans collateralized by residential real estate with a total balance of $ 1,754,000 ;

one home equity line of credit collateralized by residential real estate with a balance of $ 63,000 ;

and seven commercial loans collateralized by either residential real estate or owner-occupied commercial real estate with a total balance of $ 3,826,000 , in the process of foreclosure as of December 31, 2025;

and four mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $ 1,208,000 as of March 31, 2025.

Note 4 – Allowance for Credit Losses

9 unchanged sentences

To determine an appropriate level for general reserves, a discounted cash flow approach is applied to each portfolio segment implementing a probability of default and loss given default estimate based upon a number of factors including historical losses over an economic cycle, economic forecasts, loan prepayment speeds and curtailment rates.

To determine an appropriate level for

qualitative reserves, various factors are considered including underwriting policies, credit administration practices, experience, ability and depth of lending management, and economic factors not captured in the general reserve calculation.

To determine an appropriate level for qualitative reserves, various factors are considered including underwriting policies, credit administration practices, experience, ability and depth of lending management, and economic factors not captured in the general reserve calculation.

Loan Portfolio Composition & Risk Characteristics:

49 unchanged sentences

Loan maturities are normally 300 months.

Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to-value ratios usually not exceeding 80 % inclusive of priority liens.

Borrower qualifications include favorable credit history combined with

supportive income requirements and combined loan-to-value ratios usually not exceeding 80 % inclusive of priority liens.

Collateral valuation guidelines follow those for residential real estate loans.

5 unchanged sentences

Construction, land, and land development :

CLLD loans, both commercial and residential, represented 28.0 % of total Bank capital as of September 30, 2025 and remain below the regulatory guidance of 100.0 % of total Bank capital.

Construction loans and non-owner-occupied commercial real estate loans represented 210.5 % of total Bank capital at September 30, 2025, below the regulatory guidance of 300.0 % of total Bank capital.

CLLD loans, both commercial and residential, represented 22.1 % of total Bank capital as of March 31, 2026 and remain below the regulatory guidance of 100.0 % of total Bank capital.

Construction loans and non-owner-occupied commercial real estate loans represented 199.2 % of total Bank capital at March 31, 2026, below the regulatory guidance of 300.0 % of total Bank capital.

Composition of the ACL:

A breakdown of the ACL as of September 30, 2025, by class of financing receivable and allowance element, is presented in the following table:

As of September 30, 2025 Specific Reserves on Loans Evaluated Individually General Reserves on Loans Based on Historical Loss Experience Reserves for Qualitative Factors Total Reserves

A breakdown of the ACL as of March 31, 2026, by class of financing receivable and allowance element, is presented in the following table:

As of March 31, 2026 Specific Reserves on Loans Evaluated Individually General Reserves on Loans Based on Historical Loss Experience Reserves for Qualitative Factors Total Reserves

Real estate owner occupied $ 837,000 $ 4,001,000 $ 832,000 $ 5,670,000

24 unchanged sentences

$ 2,740,000 $ 19,482,000 $ 3,143,000 $ 25,365,000

A breakdown of the ACL as of September 30, 2024, by class of financing receivable and allowance element, is presented in the following table:

As of September 30, 2024 Specific Reserves on Loans Evaluated Individually General Reserves on Loans Based on Historical Loss Experience Reserves for Qualitative Factors Total Reserves

A breakdown of the ACL as of March 31, 2025, by class of financing receivable and allowance element, is presented in the following table:

As of March 31, 2025 Specific Reserves on Loans Evaluated Individually General Reserves on Loans Based on Historical Loss Experience Reserves for Qualitative Factors Total Reserves

Real estate owner occupied $ — $ 4,472,000 $ 717,000 $ 5,189,000

10 unchanged sentences

$ 1,029,000 $ 20,899,000 $ 3,186,000 $ 25,114,000

The ACL as a percent of total loans stood at 1.05 % as of September 30, 2025, 1.06 % at December 31, 2024 and 1.04 % as of September 30, 2024.

The ACL as a percent of total loans stood at 1.05 % as of March 31, 2026, 1.06 % at December 31, 2025 and 1.05 % as of March 31, 2025.

Off-Balance Sheet Credit Exposures:

8 unchanged sentences

The Company’s ACL on unfunded commitments is recognized as a liability, included within other liabilities on the consolidated balance sheet.

The following table presents the activity in the ACL for off-balance sheet credit exposures for the nine months and quarters ended September 30, 2025 and 2024:

For the nine months ended September 30, For the quarter ended September 30,

2025 2024 2025 2024

The following table presents the activity in the ACL for off-balance sheet credit exposures for the three months ended March 31, 2026 and 2025:

For the three months ended March 31,

Allowance for credit losses:

Beginning balance $ 565,000 $ 714,000

Credit loss expense (reduction) 154,000 ( 487,000 ) 22,000 ( 134,000 )

Credit loss reduction ( 29,000 ) ( 5,000 )

Total ending allowance balance $ 536,000 $ 709,000

26 unchanged sentences

Loans that are past due more than 90 days are considered non-performing.

The following table summarizes the credit quality for the Company's portfolio by risk category of loans and by class by vintage as of September 30, 2025:

The following table summarizes the credit quality for the Company's portfolio by risk category of loans and by class by vintage as of March 31, 2026:

Term Loans Amortized Cost Basis by Origination Year

Dollars in thousands 2026 2025 2024 2023 2022 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total

As of September 30, 2025

As of March 31, 2026

Real estate owner occupied

38 unchanged sentences

Dollars in thousands 2026 2025 2024 2023 2022 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total

As of September 30, 2025

As of March 31, 2026

Pass (risk rating 1-5) 620 6,134 6,586 16,183 2,769 19,876 — — 52,168

91 unchanged sentences

Total loans $ 347,992 $ 288,222 $ 280,130 $ 379,101 $ 311,268 $ 540,746 $ 214,833 $ 31,817 $ 2,394,109

The following table summarizes the credit quality for the Company's portfolio by risk category of loans and by class by vintage as of September 30, 2024:

The following table summarizes the credit quality for the Company's portfolio by risk category of loans and by class by vintage as of March 31, 2025:

Term Loans Amortized Cost Basis by Origination Year

Dollars in thousands 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total

As of September 30, 2024

As of March 31, 2025

Real estate owner occupied

38 unchanged sentences

Dollars in thousands 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total

As of September 30, 2024

As of March 31, 2025

Pass (risk rating 1-5) 1,937 9,186 18,563 3,984 3,881 17,553 — — 55,104

29 unchanged sentences

This is subject to completion of a current assessment of the value of the collateral with any outstanding loan balance in excess of the fair value of the property, less costs to sell, written down or charged-off.

The following table presents ACL activity by class for the nine months and quarter ended September 30, 2025:

The following table presents ACL activity by class for the three months ended March 31, 2026:

Dollars in thousands Commercial Municipal Residential Home Equity Consumer Total

Real Estate Owner Occupied Real Estate Non-Owner Occupied Construction C&I Multifamily Agriculture Term Construction Revolving and term

For the nine months ended September 30, 2025

Beginning balance $ 5,045 $ 4,829 $ 944 $ 5,364 $ 1,239 $ 605 $ 262 $ 5,241 $ 474 $ 686 $ 182 $ 24,871

Charge offs — — — ( 1,101 ) — — — ( 1 ) — — ( 238 ) ( 1,340 )

Recoveries — — — 28 — — — 6 — 15 64 113

Credit loss expense (reduction) 85 ( 64 ) ( 525 ) 824 242 68 26 510 ( 38 ) 148 158 1,434

Ending balance $ 5,130 $ 4,765 $ 419 $ 5,115 $ 1,481 $ 673 $ 288 $ 5,756 $ 436 $ 849 $ 166 $ 25,078

For the three months ended September 30, 2025

For the three months ended March 31, 2026

Beginning balance $ 5,344 $ 5,820 $ 250 $ 5,023 $ 826 $ 519 $ 193 $ 5,949 $ 299 $ 958 $ 184 $ 25,365

12 unchanged sentences

Ending balance $ 5,344 $ 5,820 $ 250 $ 5,023 $ 826 $ 519 $ 193 $ 5,949 $ 299 $ 958 $ 184 $ 25,365

The following table presents ACL activity by class for the nine months and quarter ended September 30, 2024:

The following table presents ACL activity by class for the three months ended March 31, 2025:

Dollars in thousands Commercial Municipal Residential Home Equity Consumer Total

Real Estate Owner Occupied Real Estate Non-Owner Occupied Construction C&I Multifamily Agriculture Term Construction Revolving and term

For the nine months ended September 30, 2024

Beginning balance $ 4,633 $ 4,285 $ 1,978 $ 5,001 $ 1,318 $ — $ 334 $ 4,991 $ 618 $ 626 $ 246 $ 24,030

Charge offs — — — ( 88 ) — — — ( 36 ) — ( 7 ) ( 210 ) ( 341 )

Recoveries 100 — — 24 — — — 30 — 21 77 252

Credit loss expense (reduction) 386 686 ( 1,171 ) ( 275 ) ( 56 ) 613 ( 68 ) 66 ( 193 ) 23 47 58

Ending balance $ 5,119 $ 4,971 $ 807 $ 4,662 $ 1,262 $ 613 $ 266 $ 5,051 $ 425 $ 663 $ 160 $ 23,999

For the three months ended September 30, 2024

For the three months ended March 31, 2025

Beginning balance $ 5,045 $ 4,829 $ 944 $ 5,364 $ 1,239 $ 605 $ 262 $ 5,241 $ 474 $ 686 $ 182 $ 24,871

3 unchanged sentences

Ending balance $ 5,189 $ 4,870 $ 619 $ 5,499 $ 1,455 $ 587 $ 235 $ 5,260 $ 465 $ 751 $ 184 $ 25,114

As of September 30, 2025, the significant model inputs and assumptions used within the discounted cash flow model for purposes of estimating the ACL on loans were:

As of March 31, 2026, the significant model inputs and assumptions used within the discounted cash flow model for purposes of estimating the ACL on loans were:

Macroeconomic loss drivers :

1 unchanged sentence

• Commercial Real Estate Owner Occupied:

FOMC median forecasts of national unemployment and change in national real GDP

FOMC median forecasts of national unemployment

• Commercial Real Estate Non-Owner Occupied:

FOMC median forecasts of national unemployment and change in national real GDP

FOMC median forecasts of national unemployment

• Commercial Construction:

8 unchanged sentences

• Residential Real Estate Term:

FOMC median forecasts of national unemployment and change in national real GDP

FOMC median forecasts of national unemployment

• Residential Real Estate Construction:

1 unchanged sentence

• Home Equity Revolving & Term:

FOMC median forecasts of national unemployment and change in national real GDP

FOMC median forecasts of national unemployment

FOMC median forecast of national unemployment and forecasted retail sales sourced from a nationally known provider

Reasonable and supportable forecast period:

12 unchanged sentences

Other compensation under the 2020 Plan qualifies as performance-based for purposes of Section 162(m) of the Internal Revenue Code, and satisfies NASDAQ guidelines relating to equity compensation.

As of September 30, 2025, 172,916 shares of restricted stock had been granted under the 2020 Plan, of which 95,324 shares remain restricted as of September 30, 2025 as detailed in the following table:

As of March 31, 2026, 221,105 shares of restricted stock had been granted under the 2020 Plan, of which 113,258 shares remain restricted as of March 31, 2026 as detailed in the following table:

Granted Vesting Term

5 unchanged sentences

2026 0.5 2,549 0.2

2026 0.2 750 0.1

The compensation cost related to these non-vested restricted stock grants is $ 2,975,000 and is recognized over the vesting terms of each grant.

In the nine months ended September 30, 2025, $ 764,000 of expense was recognized for these restricted shares, leaving $ 1,114,000 in unrecognized expense as of September 30, 2025.

In the nine months ended September 30, 2024, $ 680,000 of expense was recognized for restricted shares, leaving $ 1,006,000 in unrecognized expense as of September 30, 2024.

In the three months ended March 31, 2026, $ 306,000 of expense was recognized for these restricted shares, leaving $ 1,899,000 in unrecognized expense as of March 31, 2026.

In the three months ended March 31, 2025, $ 298,000 of expense was recognized for restricted shares, leaving $ 1,598,000 in unrecognized expense as of March 31, 2025.

Note 6 – Common Stock

Proceeds from sale of common stock totaled $ 680,000 and $ 638,000 for the nine months ended September 30, 2025 and 2024, respectively.

Proceeds from sale of common stock totaled $ 236,000 and $ 225,000 for the three months ended March 31, 2026 and 2025, respectively.

Note 7 – Earnings Per Share

The following table sets forth the computation of basic and diluted EPS for the nine months ended September 30, 2025 and 2024:

Income (Numerator) Shares (Denominator) Per-Share Amount

For the nine months ended September 30, 2025

Net income as reported $ 24,222,000

Income available to common shareholders 24,222,000 11,084,737 $ 2.19

Effect of dilutive securities:

restricted stock 115,088

Income available to common shareholders plus assumed conversions $ 24,222,000 11,199,825 $ 2.16

For the nine months ended September 30, 2024

Net income as reported $ 19,763,000

Income available to common shareholders 19,763,000 11,046,986 $ 1.79

Effect of dilutive securities:

restricted stock 87,102

Income available to common shareholders plus assumed conversions $ 19,763,000 11,134,088 $ 1.78

The following table sets forth the computation of basic and diluted EPS for the quarters ended September 30, 2025 and 2024:

The following table sets forth the computation of basic and diluted EPS for the three months ended March 31, 2026 and 2025:

Income (Numerator) Shares (Denominator) Per-Share Amount

For the quarter ended September 30, 2025

For the three months ended March 31, 2026

Net income as reported $ 8,993,000

3 unchanged sentences

Income available to common shareholders plus assumed conversions $ 8,993,000 11,255,086 $ 0.80

For the quarter ended September 30, 2024

For the three months ended March 31, 2025

Net income as reported $ 7,077,000

7 unchanged sentences

The Plan is a safe harbor plan whereby the Bank also contributes a minimum 3.0 % of annual compensation to the plan for all eligible employees.

The expense related to the 401(k) plan was $ 827,000 and $ 829,000 for the nine months ended September 30, 2025 and 2024, respectively.

The expense related to the 401(k) plan was $ 295,000 and $ 275,000 for the three months ended March 31, 2026 and 2025, respectively.

Deferred Compensation and Supplemental Retirement Benefits

3 unchanged sentences

The costs for these benefits are recognized over the service periods of the participating officers in accordance with FASB ASC Topic 712 "Compensation – Nonretirement Postemployment Benefits".

The expense of these supplemental retirement benefits was $ 120,000 and $ 137,000 for the nine months ended September 30, 2025 and 2024, respectively.

As of September 30, 2025, the associated accrued liability included in other liabilities in the balance sheet was $ 2,483,000 compared to $ 2,578,000 and $ 2,586,000 at December 31, 2024 and September 30, 2024, respectively.

The expense of these supplemental retirement benefits was $ 38,000 and $ 36,000 for the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, the associated accrued liability included in other liabilities in the balance sheet was $ 2,426,000 compared to $ 2,460,000 and $ 2,542,000 at December 31, 2025 and March 31, 2025, respectively.

Postretirement Benefit Plans

6 unchanged sentences

The following table sets forth the accumulated postretirement benefit obligation and funded status:

At or for the nine months ended September 30,

At or for the three months ended March 31,

Change in benefit obligation

7 unchanged sentences

Accrued benefit cost at end of period $ ( 1,103,000 ) $ ( 1,183,000 )

There was no net periodic pension cost for the nine months ended September 30, 2025 and 2024.

There was no net periodic pension cost for the three months ended March 31, 2026 and 2025.

Amounts not yet reflected in net periodic benefit cost and included in AOCI are as follows:

September 30, 2025 December 31, 2024 September 30, 2024

March 31, 2026 December 31, 2025 March 31, 2025

Unamortized net actuarial gain $ 304,000 $ 304,000 $ 363,000

8 unchanged sentences

Note 9 - Other Comprehensive Income (Loss)

The following table summarizes activity in the unrealized gain or loss on available for sale securities included in OCI for the nine months and quarters ended September 30, 2025 and 2024.

For the nine months ended September 30, For the quarter ended September 30,

2025 2024 2025 2024

The following table summarizes activity in the unrealized gain or loss on available for sale securities included in OCI for the three months ended March 31, 2026 and 2025:

For the three months ended March 31,

Balance at beginning of period $ ( 31,341,000 ) $ ( 42,671,000 )

Unrealized gains rising during the period 11,580,000 6,558,000 4,700,000 11,360,000

Unrealized (losses) gains rising during the period ( 1,822,000 ) 5,024,000

Reclassification of net realized gains during the period ( 12,000 ) —

Related deferred taxes 385,000 ( 1,055,000 )

2 unchanged sentences

The reclassification of realized gains is included in the net securities gains line of the consolidated statements of income and comprehensive income and the tax effect is included in the income tax expense line of the same statement.

The following table summarizes activity in the unrealized loss on securities transferred from available for sale to held to maturity included in OCI for the nine months and quarters ended September 30, 2025 and 2024.

For the nine months ended September 30, For the quarter ended September 30,

2025 2024 2025 2024

The following table summarizes activity in the unrealized loss on securities transferred from available for sale to held to maturity included in OCI for the three months ended March 31, 2026 and 2025:

For the three months ended March 31,

Balance at beginning of period $ ( 38,000 ) $ ( 47,000 )

3 unchanged sentences

Balance at end of period $ ( 35,000 ) $ ( 45,000 )

The following table presents the effect of the Company's derivative financial instruments included in OCI for the nine months and quarters ended September 30, 2025 and 2024.

For the nine months ended September 30, For the quarter ended September 30,

2025 2024 2025 2024

The following table presents the effect of the Company's derivative financial instruments included in OCI for the three months ended March 31, 2026 and 2025:

For the three months ended March 31,

Balance at beginning of period $ — $ 157,000

3 unchanged sentences

Balance at end of period $ — $ 82,000

There was no activity in the unrealized gain or loss on postretirement benefits included in OCI for the nine months and quarters ended September 30, 2025 and 2024.

There was no activity in the unrealized gain or loss on postretirement benefits included in OCI for the three months ended March 31, 2026 and 2025.

Note 10 - Financial Derivative Instruments

6 unchanged sentences

The Bank also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting the changes in cash flows or fair values of hedged items.

Changes in fair value of derivative instruments that are highly effective and qualify as cash flow hedges are recorded in OCI.

Changes in fair value of derivative instruments that are highly effective and qualify

as cash flow hedges are recorded in OCI.

Any ineffective portion is recorded in earnings.

1 unchanged sentence

The details of the Bank's swap agreements are as follows:

September 30, 2025 December 31, 2024 September 30, 2024

March 31, 2026 December 31, 2025 March 31, 2025

Effective Date Maturity Date Variable Index Received Fixed Rate Paid Presentation on Consolidated Balance Sheets Notional Amount Fair Value

2 unchanged sentences

Cash Flow Hedges

01/10/2023 01/01/2026 USD-SOFR-OIS COMPOUND 3.836 % Other (Liabilities) Assets $ 75,000,000 $ 23,000 $ 75,000,000 $ 198,000 $ 75,000,000 $ ( 172,000 )

01/10/2023 01/01/2026 USD-SOFR-OIS COMPOUND 3.836 % Other Assets $ — $ — $ 75,000,000 $ — $ 75,000,000 $ 104,000

$ — $ — $ 75,000,000 $ — $ 75,000,000 $ 104,000

7 unchanged sentences

The details of the Bank's cap agreements are as follows:

September 30, 2025 December 31, 2024 September 30, 2024

March 31, 2026 December 31, 2025 March 31, 2025

Effective Date Maturity Date Variable Index Received Fixed Rate Paid Presentation on Consolidated Balance Sheets Notional Amount Fair Value

4 unchanged sentences

07/01/2025 07/01/2028 USD-SOFR-OIS COMPOUND 4.550 % Other Assets 50,000,000 120,000 50,000,000 54,000 — —

03/02/2026 03/01/2029 USD-SOFR-OIS COMPOUND 3.750 % Other Assets 50,000,000 489,000 — — — —

03/02/2026 03/01/2030 USD-SOFR-OIS COMPOUND 4.250 % Other Assets 50,000,000 491,000 — — — —

Total cap agreements $ 200,000,000 $ 1,312,000 $ 100,000,000 $ 154,000 $ — $ —

8 unchanged sentences

Such loan level arrangements are not designated as hedges for accounting purposes, and are recorded at fair value in the Company’s consolidated balance sheets.

At September 30, 2025 there were 17 customer loan swap arrangements in place.

This compares to 10 customer loan swap arrangements in place at December 31, 2024 and eight customer loan swap arrangements in place at September 30, 2024.

March 31, 2026 there were 19 customer loan swap arrangements in place.

This compares to 18 customer loan swap arrangements in place as of December 31, 2025 and 12 customer loan swap arrangements in place as of March 31, 2025.

The details of the Bank's customer loan swap arrangements are detailed below:

September 30, 2025 December 31, 2024 September 30, 2024

March 31, 2026 December 31, 2025 March 31, 2025

Presentation on Consolidated Balance Sheet Number of Positions Notional Amount Fair Value Number of Positions Notional Amount Fair Value Number of Positions Notional Amount Fair Value

9 unchanged sentences

The Bank's arrangement with its institutional counterparty requires it to post cash or other assets as collateral for its various loan swap contracts in a net liability position based on their fair values and the Bank's credit rating or receive cash collateral for contracts in a net asset position as requested.

At September 30, 2025, there was no collateral posted on its swap contracts or required amount to be pledged.

At March 31, 2026, there was no collateral posted on its swap contracts or required amount to be pledged.

Note 11 – Mortgage Servicing Rights

3 unchanged sentences

The model utilizes several assumptions, the most significant of which is loan prepayments, calculated using a three-months moving average of weekly prepayment data published by the PSA and modeled against the serviced loan portfolio, and the discount rate to discount future cash flows.

As of September 30, 2025, the prepayment assumption using the PSA model was 146, which translates into an anticipated prepayment rate of 7.01 %.

As of March 31, 2026, the prepayment assumption using the PSA model was 157, which translates into an anticipated prepayment rate of 7.54 %.

The discount rate is 9.75 %.

2 unchanged sentences

Amortization of mortgage servicing rights, as well as write-offs due to prepayments of the related mortgage loans, are recorded as a charge against mortgage servicing fee income.

For the nine months ended September 30, 2025 and 2024, servicing rights capitalized totaled $ 40,000 and $ 13,000 , respectively.

Servicing rights amortized for the nine-month periods ended September 30, 2025 and 2024 were $ 218,000 and $ 244,000 , respectively.

The fair value of servicing rights was $ 2,775,000 , $ 3,054,000 , and $ 3,074,000 at September 30, 2025, December 31, 2024 and September 30, 2024, respectively.

The Bank serviced loans for others totaling $ 282,867,000 , $ 297,950,000 , and $ 302,430,000 at September 30, 2025, December 31, 2024, and September 30, 2024, respectively.

For the three months ended March 31, 2026 and 2025, servicing rights capitalized totaled $ 15,000 and $ 13,000 , respectively.

Servicing rights amortized for the three-month periods ended March 31, 2026 and 2025 were $ 69,000 and $ 71,000 , respectively.

The fair value of servicing rights was $ 2,652,000 , $ 2,685,000 , and $ 2,973,000 at March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

The Bank serviced loans for others totaling $ 273,268,000 , $ 276,514,000 , and $ 293,503,000 at March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

Mortgage servicing rights are included in other assets and detailed in the following table:

September 30, 2025 December 31, 2024 September 30, 2024

March 31, 2026 December 31, 2025 March 31, 2025

Mortgage servicing rights $ 8,809,000 $ 8,793,000 $ 8,754,000

Accumulated amortization ( 7,208,000 ) ( 7,138,000 ) ( 6,919,000 )

Amortized cost 1,716,000 1,894,000 1,945,000

Impairment reserve — — ( 5,000 )

Carrying value $ 1,601,000 $ 1,655,000 $ 1,835,000

4 unchanged sentences

Note 13 - Certificates of Deposit

The following table represents the breakdown of certificates of deposit at September 30, 2025 and 2024, and at December 31, 2024:

September 30, 2025 December 31, 2024 September 30, 2024

The following table represents the breakdown of certificates of deposit at March 31, 2026 and 2025, and at December 31, 2025:

March 31, 2026 December 31, 2025 March 31, 2025

Certificates of deposit < $100,000 $ 699,635,000 $ 638,931,000 $ 754,558,000

19 unchanged sentences

The fair value methods and assumptions for the Company's financial instruments and other assets measured at fair value are set forth below.

Investment Securities The fair values of investment securities are estimated by independent providers using a market approach with observable inputs, including matrix pricing and recent transactions.

Investment Securities

The fair values of investment securities are estimated by independent providers using a market approach with observable inputs, including matrix pricing and recent transactions.

In obtaining such valuation information from third parties, the Company has evaluated their valuation methodologies used to develop the fair values in order to determine whether the valuations are representative of an exit price in the Company's principal markets.

35 unchanged sentences

The credit value adjustments associated with derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties.

As of September 30, 2025 and 2024, and December 31, 2024, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives due to collateral postings.

As of March 31, 2026 and 2025, and December 31, 2025, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives due to collateral postings.

Customer Loan Derivatives

6 unchanged sentences

Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on Management's judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors.

estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision.

These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision.

Changes in assumptions could significantly affect the estimates.

3 unchanged sentences

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The following tables present the balances of assets and liabilities that were measured at fair value on a recurring basis as of September 30, 2025, December 31, 2024 and September 30, 2024.

At September 30, 2025

The following tables present the balances of assets and liabilities that were measured at fair value on a recurring basis as of March 31, 2026, December 31, 2025 and March 31, 2025:

At March 31, 2026

Level 1 Level 2 Level 3 Total

5 unchanged sentences

Total securities available for sale — 256,788,000 — 256,788,000

Interest rate swap agreements — 23,000 — 23,000

Interest rate cap agreements — 1,312,000 — 1,312,000

2 unchanged sentences

Total assets $ — $ 262,140,000 $ — $ 262,140,000

At September 30, 2025

At March 31, 2026

Level 1 Level 2 Level 3 Total

10 unchanged sentences

Total securities available for sale — 264,480,000 — 264,480,000

Interest rate swap agreements — 198,000 — 198,000

Interest rate cap agreements — 154,000 — 154,000

Customer loan interest swap agreements — 4,308,000 — 4,308,000

6 unchanged sentences

Total liabilities $ — $ 5,218,000 $ — $ 5,218,000

At September 30, 2024

At March 31, 2025

Level 1 Level 2 Level 3 Total

5 unchanged sentences

Total securities available for sale — 280,764,000 — 280,764,000

Interest rate swap agreements — 104,000 — 104,000

Customer loan interest swap agreements — 4,504,000 — 4,504,000

1 unchanged sentence

Total assets $ — $ 285,372,000 $ — $ 285,372,000

At September 30, 2024

At March 31, 2025

Level 1 Level 2 Level 3 Total

4 unchanged sentences

The following tables include assets measured at fair value on a nonrecurring basis that have had a fair value adjustment since their initial recognition.

Mortgage servicing rights are presented at fair value with no impairment reserve at September 30, 2025 and December 31, 2024, and presented at fair value with a $ 5,000 impairment reserve at September 30, 2024.

There was no OREO or related allowance at September 30, 2025.

OREO is presented net of an allowance of $ 35,000 at December 31, 2024 and September 30, 2024.

Mortgage servicing rights are presented at fair value with no impairment reserve for each of the periods presented.

There was no OREO or related allowance at March 31, 2026, December 31, 2025 and March 31, 2025.

Only collateral-dependent IAL with a related specific ACL or a partial charge off are included in IAL for purposes of fair value disclosures.

IAL below are presented net of specific allowances of $ 826,000 and $ 821,000 at September 30, 2025 and December 31, 2024, respectively.

There were no collateral-dependent IAL with a related specific ACL or a partial charge off at September 30, 2024.

At September 30, 2025

IAL below are presented net of specific allowances of $ 2,737,000 , $ 2,740,000 and $ 1,029,000 at March 31, 2026 December 31, 2025 and March 31, 2025, respectively:

At March 31, 2026

Level 1 Level 2 Level 3 Total

5 unchanged sentences

Mortgage servicing rights $ — $ 2,685,000 $ — $ 2,685,000

Other real estate owned — 173,000 — 173,000

Individually analyzed loans — 6,781,000 — 6,781,000

Total assets $ — $ 9,466,000 $ — $ 9,466,000

At September 30, 2024

At March 31, 2025

Level 1 Level 2 Level 3 Total

Mortgage servicing rights $ — $ 2,973,000 $ — $ 2,973,000

Other real estate owned — 173,000 — 173,000

Individually analyzed loans — 318,000 — 318,000

Total assets $ — 3,291,000 $ — $ 3,291,000

12 unchanged sentences

Carrying value is used because the accounts have no stated maturity and the customer has the ability to withdraw funds immediately.

The carrying amount and estimated fair values for financial instruments as of September 30, 2025 were as follows:

The carrying amount and estimated fair values for financial instruments as of March 31, 2026 were as follows:

Carrying value Estimated fair value Level 1 Level 2 Level 3

41 unchanged sentences

Total borrowed funds 187,821,000 188,183,000 — 188,183,000 —

The carrying amount and estimated fair values for financial instruments as of September 30, 2024 were as follows:

The carrying amount and estimated fair values for financial instruments as of March 31, 2025 were as follows:

Carrying value Estimated fair value Level 1 Level 2 Level 3

20 unchanged sentences

Note 16 – Impact of Recently Issued Accounting Standards

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.

This ASU requires public business entities, such as the Company, to provide enhanced disclosures on the amount of income taxes paid disaggregated by type and jurisdiction.

Adoption is required for annual periods beginning after December 15, 2024 and is not expected to have a material impact on the Company's consolidated financial statements.

In November 2024 the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40):

2 unchanged sentences

ASU 2024-03 is effective for calendar year-end public business entities beginning in calendar year 2027, and is not expected to have a material impact on the Company's consolidated financial statements.

In November 2025 the FASB issued ASU 2025-08, Financials Instruments - Credit Losses (Topic 326):

Purchased Loans.

The ASU expands the use of the gross-up approach to include purchased seasoned loans, defined as loans (excluding credit cards) acquired without significant credit deterioration and deemed to be seasoned;

seasoned loans are those obtained either through a business combination or purchase at least ninety days after origination, provided the acquirer was not involved in the origination.

The change is intended to reduce complexity and subjectivity in loan purchase transactions, and to reduce the risk of double counting expected credit losses that are already reflected in fair value determinations made at the time of acquisition.

ASU 2025-08 is effective for reporting periods beginning after December 15, 2026;

early adoption is permitted.

Adoption is not expected to have a material impact on the Company's consolidated financial statements.

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