What changed in this filing

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Item 1. Financial Statements

2026-08-07 compared with 2026-05-08 · 325 added, 163 removed, 1383 unchanged (26% 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 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").

and Subsidiary as of June 30, 2026 and 2025 and for the three-month and six-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.

7 unchanged sentences

Portland, Maine

August 7, 2026

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

and Subsidiary

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

June 30, 2026 December 31, 2025 June 30, 2025

Cash and cash equivalents $ 29,759,000 $ 27,779,000 $ 27,360,000

1 unchanged sentence

Securities available for sale 276,032,000 264,480,000 278,248,000

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

Securities held-to-maturity (net of ACL), fair value of $ 311,221,000 at June 30, 2026, $ 315,482,000 at December 31, 2025 and $ 312,508,000 at June 30, 2025

351,991,000 355,928,000 367,873,000

Restricted equity securities, at cost 8,737,000 8,275,000 7,734,000

Loans held for sale 190,000 — —

Loans 2,423,711,000 2,394,109,000 2,394,007,000

36 unchanged sentences

and Subsidiary

For the three months ended March 31,

For the six months ended June 30, For the quarter ended June 30,

2026 2025 2026 2025

Interest income

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

Interest and fees on loans (includes YTD tax-exempt income of $ 1,237,000 for June 30, 2026 and $ 1,388,000 for June 30, 2025)

$ 70,079,000 $ 68,938,000 $ 35,354,000 $ 35,014,000

Interest on deposits with other banks 68,000 107,000 38,000 51,000

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)

Interest and dividends on investments (includes YTD tax-exempt income of $ 3,793,000 for June 30, 2026 and $ 3,913,000 for June 30, 2025)

8,831,000 9,489,000 4,447,000 4,760,000

7 unchanged sentences

Credit loss (reduction) expense - debt securities HTM ( 2,000 ) 2,000 ( 1,000 ) 1,000

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

Credit loss (reduction) expense - off-balance sheet credit exposures ( 12,000 ) 132,000 17,000 137,000

Total credit loss expense 1,555,000 878,000 935,000 486,000

3 unchanged sentences

Service charges on deposit accounts 1,145,000 1,070,000 585,000 539,000

Net securities gains 12,000 —

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

Mortgage origination and servicing income, net of amortization 371,000 416,000 195,000 221,000

17 unchanged sentences

Net unrealized (loss) gain on securities available for sale, net of taxes $ ( 1,103,000 ) $ 5,434,000 $ 346,000 $ 1,465,000

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

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

Net unrealized gain (loss) on transferred securities, net of taxes 6,000 ( 13,000 ) 3,000 ( 15,000 )

Net unrealized (loss) gain on hedging derivative instruments — ( 73,000 ) — 2,000

Other comprehensive (loss) gain ( 1,097,000 ) 5,348,000 349,000 1,452,000

4 unchanged sentences

and Subsidiary

Three Month Period Ended March 31, 2026 and 2025

Six Month Period Ended June 30, 2026 and 2025

Common stock and

8 unchanged sentences

Net unrealized gain on securities available for sale, net of tax — — — 5,434,000 5,434,000

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 securities transferred from available for sale to held to maturity, net of tax — — — ( 13,000 ) ( 13,000 )

Net unrealized loss on hedging derivative instruments, net of tax — — — ( 73,000 ) ( 73,000 )

6 unchanged sentences

Proceeds from sale of common stock 18,470 453,000 — — 453,000

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

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

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

9 unchanged sentences

Proceeds from sale of common stock 17,781 504,000 — — 504,000

Balance at June 30, 2026 11,278,777 $ 74,942,000 $ 250,254,000 $ ( 32,236,000 ) $ 292,960,000

Three Month Period Ended June 30, 2026 and 2025

Common stock and

additional paid-in capital Retained

earnings Accumulated

comprehensive

income (loss) Total

shareholders'

Shares Amount

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

Net income — — 8,063,000 — 8,063,000

Net unrealized gain on securities available for sale, net of tax — — — 1,465,000 1,465,000

Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax — — — ( 15,000 ) ( 15,000 )

Net unrealized gain on cash flow hedging derivative instruments, net of tax — — — 2,000 2,000

Comprehensive income — — 8,063,000 1,452,000 9,515,000

Cash dividends declared ($ 0.37 per share)

— — ( 4,146,000 ) — ( 4,146,000 )

Equity compensation expense — 212,000 — — 212,000

Payment to repurchase common stock ( 650 ) — 2,000 — 2,000

Issuance of restricted stock — — — — —

Proceeds from sale of common stock 9,630 228,000 — — 228,000

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

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

Net income — — 9,560,000 — 9,560,000

Net unrealized gain on securities available for sale, net of tax — — — 346,000 346,000

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

Comprehensive income — — 9,560,000 349,000 9,909,000

Cash dividends declared ($ 0.38 per share)

— — ( 4,286,000 ) — ( 4,286,000 )

Equity compensation expense — 306,000 — — 306,000

Payment to repurchase common stock ( 729 ) ( 21,000 ) — ( 21,000 )

Issuance of restricted stock ( 750 ) — — — —

Proceeds from sale of common stock 9,242 268,000 — — 268,000

Balance at June 30, 2026 11,278,777 $ 74,942,000 $ 250,254,000 $ ( 32,236,000 ) $ 292,960,000

See Report of Independent Registered Public Accounting Firm.

The accompanying notes are an integral part of these consolidated financial statements.

The accompanying notes are an integral part of these consolidated financial

Consolidated Statements of Cash Flows (Unaudited) - The First Bancorp, Inc.

and Subsi diary

For the three months ended March 31,

For the six months ended June 30,

Cash flows from operating activities

12 unchanged sentences

Net increase in other assets and accrued interest ( 11,897,000 ) ( 8,279,000 )

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

Net decrease in other liabilities ( 1,642,000 ) ( 847,000 )

Net loss (gain) on disposal of premises and equipment 1,000 ( 10,000 )

3 unchanged sentences

Cash flows from investing activities

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

Decrease in interest-bearing deposits in other banks 1,409,000 18,847,000

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

18 unchanged sentences

Net cash provided by financing activities 33,155,000 22,111,000

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

Net increase (decrease) in cash and cash equivalents 1,980,000 ( 276,000 )

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

Cash and cash equivalents at end of period $ 29,759,000 $ 27,360,000

For the three months ended March 31,

For the six months ended June 30,

Interest paid $ 36,867,000 $ 42,250,000

Income taxes paid 2,720,000 2,060,000

Non-cash transactions

41 unchanged sentences

Risks and Uncertainties

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

Global markets experienced heightened volatility following military actions initiated against Iran and subsequent retaliation, and have stabilized as the conflict has de-escalated somewhat, but not yet achieved full resolution.

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.

The newly confirmed Chair of the Federal Reserve has committed to study a number of reforms.

Ultimate economic impacts from any or all of the foregoing remain difficult to measure and 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 March 31, 2026, have been evaluated as to their potential impact to the financial statements.

Events occurring subsequent to June 30, 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 March 31, 2026:

The following table summarizes the amortized cost and estimated fair value of investment securities at June 30, 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 March 31, 2025:

The following table summarizes the amortized cost and estimated fair value of investment securities at June 30, 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 $ 18,220,000 as of March 31, 2026.

Municipal securities within HTM include two private activity bonds issued by well-known customers of the Bank with total balances of $ 18,065,000 as of June 30, 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 March 31, 2026 and 2025, and December 31, 2025, the total ACL for HTM securities was $ 145,000 , $ 197,000 and $ 146,000 , respectively.

As of June 30, 2026 and 2025, and December 31, 2025, the total ACL for HTM securities was $ 143,000 , $ 198,000 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 March 31, 2026:

The following table summarizes the contractual maturities of investment securities at June 30, 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 March 31, 2025:

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

Securities available for sale Securities to be held to maturity

7 unchanged sentences

Pledged Securities:

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.

At June 30, 2026, securities with a carrying value of $ 340,073,000 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 $ 347,745,000 at June 30, 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.

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,

The following table shows securities gains and losses on AFS securities for the six months and quarters ended June 30, 2026 and 2025:

For the six months ended June 30, For the quarter ended June 30,

2026 2025 2026 2025

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

3 unchanged sentences

Unrealized Gains and Losses on AFS Securities:

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

As of June 30, 2026, there were 247 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 March 31, 2026, 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 June 30, 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

3 unchanged sentences

State and political subdivisions 6,778,000 ( 72,000 ) 23,455,000 ( 5,023,000 ) 30,233,000 ( 5,095,000 )

Asset-backed securities — — — — — —

$ 45,896,000 $ ( 355,000 ) $ 207,796,000 $ ( 40,864,000 ) $ 253,692,000 $ ( 41,219,000 )

9 unchanged sentences

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

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

As of June 30, 2025, there were 235 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:

The following table summarizes AFS debt securities in an unrealized loss position for which an ACL has not been recorded at June 30, 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

16 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 March 31, 2026.

both issuers were in good standing as of June 30, 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 March 31, 2026.

each issuer was in good standing as of June 30, 2026.

ACL for HTM Securities:

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

March 31, 2026 March 31, 2025

The following tables present the activity in the ACL for HTM debt securities by major security type for the six months and quarters ended June 30, 2026 and 2025:

For the six months ended

June 30, 2026 June 30, 2025

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

6 unchanged sentences

Total ending allowance balance $ 66,000 $ 77,000 $ 143,000 $ 79,000 $ 119,000 $ 198,000

1 Current period total does not tie to Consolidated Statement of Income due to rounding.

For the quarter ended

June 30, 2026 June 30, 2025

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

Allowance for credit losses:

Beginning balance $ 67,000 $ 78,000 $ 145,000 $ 81,000 $ 116,000 $ 197,000

Credit loss (reduction) expense 1

( 1,000 ) ( 1,000 ) ( 2,000 ) ( 2,000 ) 3,000 1,000

Securities charged-off — — — — — —

Recoveries — — — — — —

Total ending allowance balance $ 66,000 $ 77,000 $ 143,000 $ 79,000 $ 119,000 $ 198,000

1 Current period total does not tie to Consolidated Statement of Income due to rounding.

There was no ACL on U.S.

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

Government-sponsored enterprise, agency securities, or mortgage-backed securities as of June 30, 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 March 31, 2026, none of the Company’s HTM debt securities were past due or on non-accrual status.

As of June 30, 2026, none of the Company’s HTM debt securities were past due or on non-accrual status.

Re-Classified Securities:

3 unchanged sentences

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.

The remaining unamortized balance of the net unrealized losses for the securities transferred from available for sale to held to maturity was $ 32,000 , net of taxes, at June 30, 2026.

This compares to $ 38,000 and $ 60,000 , net of taxes, at December 31, 2025 and June 30, 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 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.

As of June 30, 2026 and 2025, and December 31, 2025, the Bank's investment in FHLBB stock totaled $ 7,700,000 , $ 6,697,000 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 March 31, 2026 and 2025, and December 31, 2025.

The Bank's investment in FRBB stock totaled $ 1,037,000 at June 30, 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 March 31, 2026.

No impairment losses have been recorded through June 30, 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 March 31, 2026 and 2025 and at December 31, 2025:

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

The following table shows the composition of the Company's loan portfolio by class of financing receivable as of June 30, 2026 and 2025 and at December 31, 2025:

June 30, 2026 December 31, 2025 June 30, 2025

Real estate owner occupied $ 379,591,000 15.7 % $ 378,263,000 15.8 % $ 371,332,000 15.5 %

10 unchanged sentences

Total $ 2,423,711,000 100.0 % $ 2,394,109,000 100.0 % $ 2,394,007,000 100.0 %

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 include net deferred loan costs of $ 12,702,000 as of June 30, 2026, $ 12,737,000 as of December 31, 2025, and $ 12,821,000 as of June 30, 2025.

Net deferred loan costs have stayed within a narrow range as compared to a 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 $ 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.

This adjustment added $ 187,000 , $ 910,000 and $ 1,003,000 to the loan balances as of June 30, 2026, December 31, 2025 and June 30, 2025, respectively.

Also included in Residential term loan balances is a valuation adjustment for the market value of caps which subtracted $ 558,000 and added $ 371,000 to loan balances as of June 30, 2026 and December 31, 2025, respectively.

There was no market value of caps adjustment as of June 30, 2025.

Pledged Loans:

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.

Pursuant to collateral agreements, qualifying first mortgage loans and commercial real estate loans, which totaled $ 646,866,000 at June 30, 2026, were used to collateralize borrowings from the FHLBB.

This compares to qualifying loans which totaled $ 669,541,000 at December 31, 2025, and $ 603,943,000 at June 30, 2025.

In addition, commercial, residential construction and home equity loans totaling $ 430,297,000 at June 30, 2026, $ 366,032,000 at December 31, 2025, and $ 384,083,000 at June 30, 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 March 31, 2026, is presented in the following table:

Information on the past-due status of loans by class of financing receivable as of June 30, 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 March 31, 2025, is presented in the following table:

Information on the past-due status of loans by class of financing receivable as of June 30, 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 March 31, 2026, December 31, 2025 and March 31, 2025:

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

The following table presents the amortized cost basis of loans on non-accrual status as of June 30, 2026, December 31, 2025 and June 30, 2025:

June 30, 2026 December 31, 2025 June 30, 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 March 31, 2026, December 31, 2025 and March 31, 2025, by collateral type:

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

The following table presents the amortized cost basis of collateral-dependent loans as of June 30, 2026, December 31, 2025 and June 30, 2025, by collateral type:

June 30, 2026 December 31, 2025 June 30, 2025

Collateral Type Collateral Type Collateral Type

9 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 March 31, 2026:

Amortized Cost Basis

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

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

Real estate owner occupied $ — $ — $ 646,000 $ — 0.17 %

10 unchanged sentences

Total $ — $ — $ 828,000 $ 514,000

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

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the three months ended June 30, 2026:

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

Combination Payment Deferral and Rate Modification

Financial Effect

Real estate non-owner occupied Temporary payment and rate accommodations

C&I Temporary payment and rate accommodations

The following table represents loan modifications made to borrowers experiencing financial difficulty by modification type and class of financing receivable, during the six months ended June 30, 2026:

Amortized Cost Basis

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

Real estate owner occupied $ — $ 135,000 $ — $ 889,000 $ — $ — 0.27 %

Real estate non-owner occupied — — — — 60,000 1,229,000 0.32 %

Construction — — — — — — — %

C&I 49,000 — — 317,000 454,000 — 0.21 %

Multifamily — — — — — — — %

Agriculture — — — 38,000 — — 0.08 %

Municipal — — — — — — — %

Term — — — 194,000 — 330,000 0.07 %

Construction — — — — — — — %

Revolving and term — — — 306,000 — — 0.21 %

Consumer — — — — — — — %

Total $ 49,000 $ 135,000 $ — $ 1,744,000 $ 514,000 $ 1,559,000

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the six months ended June 30, 2026:

Payment Deferral

13 unchanged sentences

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

Combination Payment Deferral and Rate Modification

Financial Effect

Real estate non-owner occupied Temporary payment and rate accommodations

C&I Temporary payment and rate accommodations

Combination Payment Deferral, Term Extension and Rate Modification

2 unchanged sentences

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

Amortized Cost Basis

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

Real estate owner occupied $ — $ — $ 337,000 $ — $ — 0.09 %

10 unchanged sentences

Total $ 391,000 $ — $ 1,865,000 $ 532,000 $ 1,642,000

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

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

Payment Deferral

Financial Effect

C&I Temporary payment accommodations, 5 yr balloon payment

Agriculture Payments deferred for 6 months

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 Payment Deferral and Rate Modification

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 Extension and Rate Modification

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;

Amortized Cost Basis

Real estate owner occupied $ 156,000 $ — $ 337,000 $ — $ — 0.13 %

Real estate non-owner occupied — 364,000 — 61,000 1,285,000 0.40 %

Construction — — — — — — %

C&I 285,000 — 189,000 471,000 — 0.25 %

Multifamily 908,000 — — — — 0.66 %

Agriculture 1,715,000 — — — — 3.24 %

Municipal — — — — — — %

Term — — 972,000 — 357,000 0.18 %

Construction — — — — — — %

Revolving and term — — 367,000 — — 0.27 %

Consumer — — — — — — %

Total $ 3,064,000 $ 364,000 $ 1,865,000 $ 532,000 $ 1,642,000

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

Payment Deferral

Financial Effect

Real estate owner occupied Temporary payment accommodation - payments deferred to end of loan;

5 yr balloon payment

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

Multifamily Temporary payment accommodation, payments deferred to end of loan

Agriculture Temporary payment accommodation - payments deferred to end of loan;

payments deferred for 6 months

Term Extension

Financial Effect

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

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

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 Payment Deferral and Rate Modification

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 Extension and Rate Modification

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:

The following tables depict the amortized cost basis of loans that were modified during the previous 12 months as of June 30, 2026 and 2025, that had an event of payment default at some point during the 12 month period:

Amortized Cost Basis

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

As of June 30, 2026 Payment Deferral Term Extension Combination Payment Deferral and Term Extension Combination Payment Deferral, Term Extension and Rate Modification

Real estate owner occupied $ — $ — $ 368,000 $ —

6 unchanged sentences

Amortized Cost Basis

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

As of June 30, 2025 Payment Deferral Term Extension Combination Payment Deferral and Term Extension

C&I $ 196,000 $ 11,000 $ 18,000

Agriculture 179,000 — —

Term — 125,000 —

Total $ 375,000 $ 136,000 $ 18,000

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

The following table depicts the performance of loans that have been modified during the previous 12 months as of June 30, 2026:

Payment Status (Amortized Cost Basis)

11 unchanged sentences

Total $ 10,458,000 $ — $ 18,000 $ —

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

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

Payment Status (Amortized Cost Basis)

3 unchanged sentences

Real estate owner occupied $ 493,000 $ — $ — $ —

Real Estate non-owner occupied 1,710,000 — — —

Construction — — — —

7 unchanged sentences

Loans in Process of Foreclosure:

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

As of June 30, 2026, there were seven mortgage loans collateralized by residential real estate with a total balance of $ 1,572,000 ;

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.

There were also eight commercial loans collateralized by either residential real estate or owner-occupied commercial real estate with a total balance of $ 4,723,000 , in the process of foreclosure.

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

1 unchanged sentence

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.

and two mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $ 859,000 as of June 30, 2025.

Note 4 – Allowance for Credit Losses

18 unchanged sentences

Risk factors typically include competitive market forces, net operating incomes of the operating entity, and overall economic demand.

Loans in the recreational and tourism sector can be affected by weather conditions, such as unseasonably low winter snowfalls.

recreational and tourism sector can be affected by weather conditions, such as unseasonably low winter snowfalls.

Commercial real estate lending also carries a higher degree of environmental risk than other types of lending.

8 unchanged sentences

Commercial construction loans are impacted by factors similar to those for commercial real estate loans in addition to risks related to contractor financial capacity and ability to complete a project within acceptable time frames and within budget.

Commercial and Industry - C&I loans consist of revolving and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and or capital investment.

Commercial and Industrial - C&I loans consist of revolving and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and or capital investment.

C&I loans may be secured or unsecured;

27 unchanged sentences

The home equity line of credit typically has a variable interest rate and is billed as interest-only payments during the draw period.

At the end of the draw period, the home equity line of credit is billed as a percentage of the principal balance plus all accrued interest.

end of the draw period, the home equity line of credit is billed as a percentage of the principal balance plus all accrued interest.

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 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.

CLLD loans, both commercial and residential, represented 21.4 % of total Bank capital as of June 30, 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 190.7 % of total Bank capital at June 30, 2026, below the regulatory guidance of 300.0 % of total Bank capital.

Composition of the ACL:

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

A breakdown of the ACL as of June 30, 2026, by class of financing receivable and allowance element, is presented in the following table:

As of June 30, 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 $ 917,000 $ 3,788,000 $ 848,000 $ 5,553,000

24 unchanged sentences

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

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

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

As of June 30, 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 $ — $ 4,476,000 $ 719,000 $ 5,195,000

10 unchanged sentences

$ 326,000 $ 21,347,000 $ 3,156,000 $ 24,829,000

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.

The ACL as a percent of total loans stood at 1.01 % as of June 30, 2026, 1.06 % at December 31, 2025 and 1.04 % as of June 30, 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 three months ended March 31, 2026 and 2025:

For the three months ended March 31,

The following table presents the activity in the ACL for off-balance sheet credit exposures for the six months and quarters ended June 30, 2026 and 2025:

For the six months ended June 30, For the quarter ended June 30,

2026 2025 2026 2025

Allowance for credit losses:

Beginning balance $ 565,000 $ 714,000 $ 536,000 $ 709,000

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

Credit loss (reduction) expense ( 12,000 ) 132,000 17,000 137,000

Total ending allowance balance $ 553,000 $ 846,000 $ 553,000 $ 846,000

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 March 31, 2026:

The following table summarizes the credit quality for the Company's portfolio by risk category of loans and by class by vintage as of June 30, 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 March 31, 2026

As of June 30, 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 March 31, 2026

As of June 30, 2026

Pass (risk rating 1-5) 7,718 6,295 6,519 16,288 2,739 21,265 — — 60,824

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 March 31, 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 June 30, 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 March 31, 2025

As of June 30, 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 March 31, 2025

As of June 30, 2025

Pass (risk rating 1-5) 8,834 9,981 18,726 3,897 4,136 17,350 — — 62,924

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 three months ended March 31, 2026:

The following table presents ACL activity by class for the six months and quarter ended June 30, 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 three months ended March 31, 2026

For the six months ended June 30, 2026

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

3 unchanged sentences

Ending balance $ 5,553 $ 5,193 $ 191 $ 4,594 $ 710 $ 478 $ 223 $ 6,064 $ 331 $ 1,045 $ 173 $ 24,555

For the three months ended June 30, 2026

Beginning balance $ 5,670 $ 5,380 $ 206 $ 4,544 $ 1,370 $ 485 $ 193 $ 5,945 $ 323 $ 924 $ 169 $ 25,209

Charge offs — — — ( 25 ) ( 1,203 ) ( 265 ) — — — — ( 109 ) ( 1,602 )

Recoveries — — — — — — — 3 — 2 24 29

Credit loss (reduction) expense ( 117 ) ( 187 ) ( 15 ) 75 543 258 30 116 8 119 89 919

Ending balance $ 5,553 $ 5,193 $ 191 $ 4,594 $ 710 $ 478 $ 223 $ 6,064 $ 331 $ 1,045 $ 173 $ 24,555

The following table presents ACL activity by class for the year ended December 31, 2025:

7 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 three months ended March 31, 2025:

The following table presents ACL activity by class for the six months and quarter ended June 30, 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 three months ended March 31, 2025

For the six months ended June 30, 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 $ 5,195 $ 4,934 $ 436 $ 4,865 $ 1,572 $ 666 $ 267 $ 5,485 $ 415 $ 823 $ 171 $ 24,829

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:

For the three months ended June 30, 2025

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

Charge offs — — — ( 608 ) — — — — — — ( 58 ) ( 666 )

Recoveries — — — 2 — — — 2 — 10 19 33

Credit loss expense (reduction) 6 64 ( 183 ) ( 28 ) 117 79 32 223 ( 50 ) 62 26 348

Ending balance $ 5,195 $ 4,934 $ 436 $ 4,865 $ 1,572 $ 666 $ 267 $ 5,485 $ 415 $ 823 $ 171 $ 24,829

As of June 30, 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 :

34 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 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:

As of June 30, 2026, 221,105 shares of restricted stock had been granted under the 2020 Plan, of which 107,109 shares remain restricted as of June 30, 2026 as detailed in the following table:

Granted Vesting Term

3 unchanged sentences

2026 3.0 44,990 2.6

2026 1.0 1,050 0.8

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 $ 2,813,000 and is recognized over the vesting terms of each grant.

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.

In the six months ended June 30, 2026, $ 612,000 of expense was recognized for these restricted shares, leaving $ 1,573,000 in unrecognized expense as of June 30, 2026.

In the six months ended June 30, 2025, $ 510,000 of expense was recognized for restricted shares, leaving $ 1,368,000 in unrecognized expense as of June 30, 2025.

Note 6 – Common Stock

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

Proceeds from sale of common stock totaled $ 504,000 and $ 453,000 for the six months ended June 30, 2026 and 2025, respectively.

Note 7 – Earnings Per Share

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

The following table sets forth the computation of basic and diluted EPS for the six months ended June 30, 2026 and 2025:

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

For the three months ended March 31, 2026

For the six months ended June 30, 2026

Net income as reported $ 18,553,000

3 unchanged sentences

Income available to common shareholders plus assumed conversions $ 18,553,000 11,265,937 $ 1.65

For the three months ended March 31, 2025

For the six months ended June 30, 2025

Net income as reported $ 15,140,000

3 unchanged sentences

Income available to common shareholders plus assumed conversions $ 15,140,000 11,193,068 $ 1.35

The following table sets forth the computation of basic and diluted EPS for the quarters ended June 30, 2026 and 2025:

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

For the quarter ended June 30, 2026

Net income as reported $ 9,560,000

Income available to common shareholders 9,560,000 11,119,759 $ 0.86

Effect of dilutive securities:

restricted stock 157,103

Income available to common shareholders plus assumed conversions $ 9,560,000 11,276,862 $ 0.85

For the quarter ended June 30, 2025

Net income as reported $ 8,063,000

Income available to common shareholders 8,063,000 11,084,335 $ 0.73

Effect of dilutive securities:

restricted stock 118,760

Income available to common shareholders plus assumed conversions $ 8,063,000 11,203,095 $ 0.72

Note 8 – Employee Benefit Plans

2 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 $ 295,000 and $ 275,000 for the three months ended March 31, 2026 and 2025, respectively.

The expense related to the 401(k) plan was $ 594,000 and $ 564,000 for the six months ended June 30, 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 $ 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.

The expense of these supplemental retirement benefits was $ 98,000 and $ 72,000 for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, the associated accrued liability included in other liabilities in the balance sheet was $ 2,415,000 compared to $ 2,460,000 and $ 2,506,000 at December 31, 2025 and June 30, 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 three months ended March 31,

At or for the six months ended June 30,

Change in benefit obligation

7 unchanged sentences

Accrued benefit cost at end of period $ ( 1,081,000 ) $ ( 1,161,000 )

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

There was no net periodic pension cost for the six months ended June 30, 2026 and 2025.

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

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

June 30, 2026 December 31, 2025 June 30, 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 three months ended March 31, 2026 and 2025:

For the three months ended March 31,

The following table summarizes activity in the unrealized gain or loss on available for sale securities included in OCI for the six months and quarters ended June 30, 2026 and 2025:

For the six months ended June 30, For the quarter ended June 30,

2026 2025 2026 2025

Balance at beginning of period $ ( 31,341,000 ) $ ( 42,671,000 ) $ ( 32,790,000 ) $ ( 38,702,000 )

5 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 three months ended March 31, 2026 and 2025:

For the three months ended March 31,

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 six months and quarters ended June 30, 2026 and 2025:

For the six months ended June 30, For the quarter ended June 30,

2026 2025 2026 2025

Balance at beginning of period $ ( 38,000 ) $ ( 47,000 ) $ ( 35,000 ) $ ( 45,000 )

3 unchanged sentences

Balance at end of period $ ( 32,000 ) $ ( 60,000 ) $ ( 32,000 ) $ ( 60,000 )

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,

The following table presents the effect of the Company's derivative financial instruments included in OCI for the six months and quarters ended June 30, 2026 and 2025:

For the six months ended June 30, For the quarter ended June 30,

2026 2025 2026 2025

Balance at beginning of period $ — $ 157,000 $ — $ 82,000

Unrealized losses on cash flow hedging derivatives arising during the period — ( 94,000 )

Unrealized losses (gains) on cash flow hedging derivatives arising during the period — ( 92,000 ) — 2,000

Related deferred taxes — 19,000 — —

1 unchanged sentence

Balance at end of period $ — $ 84,000 $ — $ 84,000

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.

There was no activity in the unrealized gain or loss on postretirement benefits included in OCI for the six months and quarters ended June 30, 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:

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

June 30, 2026 December 31, 2025 June 30, 2025

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

5 unchanged sentences

Fair Value Hedges

03/08/2023 03/01/2026 USD-SOFR-OIS COMPOUND 4.712 % Other Liabilities $ — $ — $ — $ — $ 40,000,000 $ ( 256,000 )

03/08/2023 03/01/2026 USD-SOFR-OIS COMPOUND 4.712 % — $ — $ — $ — $ — $ — $ —

03/08/2023 03/01/2027 USD-SOFR-OIS COMPOUND 4.402 % Other Liabilities 30,000,000 ( 94,000 ) 30,000,000 ( 352,000 ) 30,000,000 ( 404,000 )

4 unchanged sentences

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

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

June 30, 2026 December 31, 2025 June 30, 2025

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

16 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.

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.

At June 30, 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 June 30, 2025.

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

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

June 30, 2026 December 31, 2025 June 30, 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 March 31, 2026, there was no collateral posted on its swap contracts or required amount to be pledged.

At June 30, 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 March 31, 2026, the prepayment assumption using the PSA model was 157, which translates into an anticipated prepayment rate of 7.54 %.

As of June 30, 2026, the prepayment assumption using the PSA model was 121, which translates into an anticipated prepayment rate of 5.81 %.

The discount rate is 9.88 %.

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 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.

For the six months ended June 30, 2026 and 2025, servicing rights capitalized totaled $ 26,000 and $ 27,000 , respectively.

Servicing rights amortized for the six-month periods ended June 30, 2026 and 2025 were $ 140,000 and $ 144,000 , respectively.

The fair value of servicing rights was $ 2,759,000 , $ 2,685,000 , and $ 2,903,000 at June 30, 2026, December 31, 2025 and June 30, 2025, respectively.

The Bank serviced loans for others totaling $ 268,139,000 , $ 276,514,000 , and $ 287,718,000 at June 30, 2026, December 31, 2025, and June 30, 2025, respectively.

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

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

June 30, 2026 December 31, 2025 June 30, 2025

Mortgage servicing rights $ 8,819,000 $ 8,793,000 $ 8,768,000

6 unchanged sentences

Note 13 - Certificates of Deposit

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

The following table represents the breakdown of certificates of deposit at June 30, 2026 and 2025, and at December 31, 2025:

June 30, 2026 December 31, 2025 June 30, 2025

Certificates of deposit < $100,000 $ 765,298,000 $ 638,931,000 $ 774,521,000

58 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 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.

As of June 30, 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.

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

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 March 31, 2026, December 31, 2025 and March 31, 2025:

At March 31, 2026

The following tables present the balances of assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2026, December 31, 2025 and June 30, 2025:

At June 30, 2026

Level 1 Level 2 Level 3 Total

9 unchanged sentences

Total assets $ — $ 281,679,000 $ — $ 281,679,000

At March 31, 2026

At June 30, 2026

Level 1 Level 2 Level 3 Total

19 unchanged sentences

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

At March 31, 2025

At June 30, 2025

Level 1 Level 2 Level 3 Total

9 unchanged sentences

Total assets $ — $ 282,672,000 $ — $ 282,672,000

At March 31, 2025

At June 30, 2025

Level 1 Level 2 Level 3 Total

5 unchanged sentences

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.

There was no OREO or related allowance at June 30, 2026, December 31, 2025 and June 30, 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 $ 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

IAL below are presented net of specific allowances of $ 2,325,000 , $ 2,740,000 and $ 326,000 at June 30, 2026 December 31, 2025 and June 30, 2025, respectively:

At June 30, 2026

Level 1 Level 2 Level 3 Total

7 unchanged sentences

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

At March 31, 2025

At June 30, 2025

Level 1 Level 2 Level 3 Total

15 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 March 31, 2026 were as follows:

The carrying amount and estimated fair values for financial instruments as of June 30, 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 March 31, 2025 were as follows:

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

Carrying value Estimated fair value Level 1 Level 2 Level 3

33 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements