3 unchanged sentences
The Company has no other business activity other than being a holding company for the Bank.
−Removed: The following management’s discussion and analysis presents information concerning our financial condition as of June 30, 2025 and December 31, 2024, and the results of operations for the three and six months ending June 30, 2025 and June 30, 2024.
−Removed: This discussion should be read in conjunction with the condensed consolidated financial statements and other financial data presented elsewhere herein and with the financial statements and other financial data, as well as the Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
−Removed: At June 30, 2025, the Company had total assets of $2.1 billion, loans receivable, net of deferred fees and costs, of $1.5 billion and total deposits of $1.8 billion.
+Added: The following management’s discussion and analysis presents information concerning our financial condition as of September 30, 2025 and December 31, 2024, and the results of operations for the three and nine months ending September 30, 2025 and September 30, 2024.
+Added: This discussion should be read in conjunction with the condensed consolidated financial statements and other financial data presented elsewhere herein and with the condensed consolidated financial statements and other financial data, as well as the Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
+Added: At September 30, 2025, the Company had total assets of $2.1 billion, loans receivable, net of deferred fees and costs, of $1.5 billion and total deposits of $1.8 billion.
Stockholders' equity totaled $165.5 million or 8.1% of total assets, with a book value per share of $38.24.
−Removed: Net income for the three months ended June 30, 2025, was $2.2 million, or $0.50 earnings per diluted common share.
−Removed: For the three months ended June 30, 2025, the return on average assets (ROA) was 0.42%, while the return on average stockholders’ equity (ROE) was 5.66%.
−Removed: Net income for the six months ended June 30, 2025, was $2.6 million, or $0.61 earnings per diluted common share.
−Removed: For the six months ended June 30, 2025, the ROA was 0.25%, while the ROE was 3.39%.
+Added: Net income for the three months ended September 30, 2025, was $3.5 million, or $0.81 earnings per diluted common share.
+Added: For the three months ended September 30, 2025, the return on average assets (ROA) was 0.68%, while the return on average stockholders’ equity (ROE) was 8.96%.
+Added: Net income for the nine months ended September 30, 2025, was $6.1 million, or $1.42 earnings per diluted common share.
+Added: For the nine months ended September 30, 2025, the ROA was 0.40%, while the ROE was 5.27%.
Recent Developments Regarding the Company and the Bank
18 unchanged sentences
Financial Condition
−Removed: During the six months ended June 30, 2025, total assets decreased by $2.8 million (0.14%), with interest-earning assets decreasing by $2.7 million (0.14%).
−Removed: At both June 30, 2025 and December 31, 2024, interest-earning assets totaled $1.9 billion.
−Removed: Earning assets represented 92.3% of total assets at both June 30, 2025 and December 31, 2024.
+Added: During the nine months ended September 30, 2025, total assets decreased by $8.0 million (0.39%), with interest-earning assets decreasing by $1.6 million (0.08%).
+Added: At both September 30, 2025 and December 31, 2024, interest-earning assets totaled $1.9 billion.
+Added: Earning assets represented 92.6% of total assets at September 30, 2025 and 92.3% December 31, 2024.
Loan Portfolio
−Removed: Loans receivable, net of deferred fees and costs totaled $1.5 billion at both June 30, 2025 and December 31, 2024.
+Added: Loans receivable, net of deferred fees and costs totaled $1.5 billion at both September 30, 2025 and December 31, 2024.
The loan portfolio, which is the Company’s largest asset, is the primary source of both interest and fee income.
1 unchanged sentence
The Company’s end-of-period loan balances were as follows:
−Removed: June 30, 2025 December 31, 2024
+Added: September 30, 2025 December 31, 2024
(Dollars in thousands) Balance % Loans Balance % Loans
13 unchanged sentences
Adjustable rate loans / loans receivable $ 728,185 49.5 % $ 793,920 52.7 %
−Removed: Our total commercial real estate portfolio (which includes but is not limited to loans secured by office space, medical office space, and mixed-use retail/office space) totaled $551.1 million as of June 30, 2025, compared to $551.7 million as of December 31, 2024.
+Added: Our total commercial real estate portfolio (which includes but is not limited to loans secured by office space, medical office space, and mixed-use retail/office space) totaled $564.6 million as of September 30, 2025, compared to $551.7 million as of December 31, 2024.
Given prevailing market conditions such as continued elevated interest rate levels, reduced occupancy as a result of the increase in hybrid work arrangements, we are carefully monitoring these loans for signs of deterioration in credit quality.
−Removed: Commercial real estate loans remained our largest loan segment and accounted for 37.2% of the total loan portfolio at June 30, 2025 and 36.6% at December 31, 2024.
−Removed: A further breakdown of the composition of the commercial real estate loan portfolio as of June 30, 2025 and December 31, 2024 is shown in the table below:
−Removed: Commercial Real Estate (CRE) June 30, 2025 December 31, 2024
+Added: Commercial real estate loans remained our largest loan segment and accounted for 38.4% of the total loan portfolio at September 30, 2025 and 36.6% at December 31, 2024.
+Added: A further breakdown of the composition of the commercial real estate loan portfolio as of September 30, 2025 and December 31, 2024 is shown in the table below:
+Added: Commercial Real Estate (CRE) September 30, 2025 December 31, 2024
(Dollars in thousands) # Loans $ Amount % of Total Gross Loans # Loans $ Amount % of Total Gross Loans
36 unchanged sentences
This may be done as a part of a renewal, loan workout or as a part of the usual and customary real estate review process that monitors the risks associated with the Bank’s loan portfolios.
−Removed: The following table sets forth certain information at June 30, 2025, regarding the dollar amount of loans in the Company’s portfolio based on their contractual terms to maturity.
+Added: The following table sets forth certain information at September 30, 2025, regarding the dollar amount of loans in the Company’s portfolio based on their contractual terms to maturity.
Demand loans, loans having no schedule of repayment and no stated maturity, and overdrafts are reported as due in one year or less.
20 unchanged sentences
The Company will also retain fixed rate mortgage loans with a contractual maturity greater than 15 years on a limited basis.
−Removed: During the six months June 30, 2025, the Company originated $18.1 million in new fixed rate mortgage loans for sale, compared to $10.6 million during the six months ended June 30, 2024.
−Removed: Net gains realized from the mortgage loan sales totaled $608 thousand for the six months ended June 30, 2025, compared to $472 thousand for the six months ended June 30, 2024.
−Removed: At June 30, 2025, the Company had $834 thousand in loans that were classified as held for sale, compared to $1.3 million at December 31, 2024.
+Added: During the nine months ended September 30, 2025, the Company originated $29.3 million in new fixed rate mortgage loans for sale, compared to $22.5 million during the nine months ended September 30, 2024.
+Added: Net gains realized from the mortgage loan sales totaled $873 thousand for the nine months ended September 30, 2025, compared to $810 thousand for the nine months ended September 30, 2024.
+Added: At September 30, 2025, the Company had $2.6 million in loans that were classified as held for sale, compared to $1.3 million at December 31, 2024.
Asset Quality
−Removed: Non-performing loans include those loans that are 90 days or more past due and those loans that have been placed on non-accrual status.
+Added: Non-performing loans include those loans that are 90 days or more past due and those loans that have been placed on nonaccrual status.
The Company will at times maintain certain loans on accrual status, despite being over 90 days past due, for short periods of time when management has reason to believe payments are in the process of being received.
1 unchanged sentence
(Dollars in thousands)
−Removed: Loan Segment June 30, 2025 December 31, 2024
+Added: Loan Segment September 30, 2025 December 31, 2024
Residential real estate $ 5,814 $ 4,665
8 unchanged sentences
Substandard loans include potential problem loans, where information about possible credit issues or other conditions causes management to question the ability of such borrowers to comply with loan covenants or repayment terms.
−Removed: No loans were internally classified as doubtful or loss at June 30, 2025 or December 31, 2024.
+Added: No loans were internally classified as doubtful or loss at September 30, 2025 or December 31, 2024.
The Company's substandard loans are summarized below:
(Dollars in thousands)
−Removed: Loan Segment June 30, 2025 December 31, 2024
+Added: Loan Segment September 30, 2025 December 31, 2024
Residential real estate $ 5,898 $ 4,754
10 unchanged sentences
(Dollars in thousands)
−Removed: Loan Segment June 30, 2025 December 31, 2024
+Added: Loan Segment September 30, 2025 December 31, 2024
Residential real estate $ 5,132 $ 4,291
4 unchanged sentences
Commercial business 1,760 3,528
+Added: Manufactured homes 90 -
Total $ 28,331 $ 25,290
−Removed: At June 30, 2025, management is of the opinion that there are no loans where known information about possible credit problems of borrowers causes management to have serious doubts as to the ability of such borrowers to comply with the present loan repayment terms and which will imminently result in such loans being classified as past due or non-accrual.
+Added: At September 30, 2025, management is of the opinion that there are no loans where known information about possible credit problems of borrowers causes management to have serious doubts as to the ability of such borrowers to comply with the present loan repayment terms and which will imminently result in such loans being classified as past due or nonaccrual.
Management does not presently anticipate that any of the non-performing loans or classified loans would materially affect future operations, liquidity or capital resources.
4 unchanged sentences
The Company's provision for (benefit from) credit losses for the period ended are summarized below:
−Removed: (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30,
+Added: (Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30,
Loan Segment 2025 2024 2025 2024
10 unchanged sentences
The Company's charge-off and recovery information is summarized below:
−Removed: (Dollars in thousands) Three Months Ended June 30, 2025
−Removed: Loan Segment Charge-off Recoveries Net (Charge-offs)
+Added: (Dollars in thousands) Three Months Ended September 30, 2025
+Added: Loan Segment Charge-offs Recoveries Net (Charge-offs)
Residential real estate $ - $ 15 $ 15
+Added: Multifamily - 1 1
Commercial business (276) - (276)
1 unchanged sentence
Total $ (290) $ 22 $ (268)
−Removed: (Dollars in thousands) Three Months Ended June 30, 2024
−Removed: Loan Segment Charge-off Recoveries Net (Charge-offs)
+Added: (Dollars in thousands) Three Months Ended September 30, 2024
+Added: Loan Segment Charge-offs Recoveries Net (Charge-offs)
Residential real estate $ (28) $ 9 $ (19)
Commercial real estate - 1 1
−Removed: Multifamily (65) 31 (34)
Commercial business (2) 222 220
1 unchanged sentence
Total $ (47) $ 233 $ 186
−Removed: (Dollars in thousands) Six Months Ended June 30, 2025
+Added: (Dollars in thousands) Nine Months Ended September 30, 2025
Loan Segment Charge-offs Recoveries Net (Charge-offs)
5 unchanged sentences
Total $ (418) $ 532 $ 114
−Removed: (Dollars in thousands) Six Months Ended June 30, 2024
+Added: (Dollars in thousands) Nine Months Ended September 30, 2024
Loan Segment Charge-offs Recoveries Net (Charge-offs)
8 unchanged sentences
The Company's allowance to total loans and non-performing loans are summarized below:
−Removed: (Dollars in thousands) June 30, 2025 December 31, 2024
+Added: (Dollars in thousands) September 30, 2025 December 31, 2024
Allowance for credit losses $ 17,977 $ 16,911
7 unchanged sentences
government securities, U.S.
−Removed: treasury securities, federal agency obligations, obligations of state and local municipalities, and corporate securities.
−Removed: The securities portfolio, all of which is designated as available-for-sale, totaled $327.8 million at June 30, 2025, compared to $333.6 million at December 31, 2024, a decrease of $5.7 million (1.7%).
−Removed: The decrease in securities available for sale from year end, was primarily due to payoffs of collateralized mortgage obligations and residential mortgage-backed securities within the portfolio.
−Removed: The yield on the securities portfolio was 2.40% for both the six months ended June 30, 2025 and the six months ended June 30, 2024.
+Added: treasury securities, federal agency obligations, obligations of state and local municipalities, mortgage-backed securities, and corporate securities.
+Added: The securities portfolio, all of which is designated as available-for-sale, totaled $335.2 million at September 30, 2025, compared to $333.6 million at December 31, 2024, an increase of $1.6 million (0.5%).
+Added: The increase in securities available for sale from year end, was primarily due to an increase in the fair value of the overall portfolio.
+Added: The yield on the securities portfolio was 2.40% for the nine months ended September 30, 2025 and 2.39% for the nine months ended September 30, 2024.
Management did not execute any securities sale transactions during the quarter.
−Removed: At June 30, 2025, the securities portfolio represented 17.3% of interest-earning assets and 15.9% of total assets compared to 17.5% of interest-earning assets and 16.2% of total assets at December 31, 2024.
+Added: At September 30, 2025, the securities portfolio represented 17.6% of interest-earning assets and 16.3% of total assets compared to 17.5% of interest-earning assets and 16.2% of total assets at December 31, 2024.
The Company’s end-of-period investment portfolio and other short-term investments and stock balances were as follows:
−Removed: June 30, 2025 December 31, 2024
+Added: September 30, 2025 December 31, 2024
(Dollars in thousands) Balance % Securities Balance % Securities
4 unchanged sentences
Total securities available-for-sale $ 335,150 100.0 % $ 333,554 100.0 %
−Removed: (Dollars in thousands) June 30, 2025 December 31, 2024 $ Change % Change
+Added: (Dollars in thousands) September 30, 2025 December 31, 2024 $ Change % Change
Interest bearing deposits in other financial institutions $ 84,157 $ 52,047 $ 32,110 61.7 %
3 unchanged sentences
The contractual maturities and weighted average yields for the U.S.
−Removed: government agency securities, municipal securities, and collateralized debt obligations at June 30, 2025, are summarized in the table below.
+Added: government agency securities, municipal securities, and collateralized debt obligations at September 30, 2025, are summarized in the table below.
Securities not due at a single maturity date, such as mortgage-backed securities and collateralized mortgage obligations, are shown separately.
5 unchanged sentences
government sponsored entities $ - — % $ 8,386 1.00 % $ - — % $ - — % $ 8,386
−Removed: $ - — % $ 8,307 1.00 % $ - — % $ - — % $ 8,307
Collateralized mortgage obligations and residential mortgage-backed securities - — % - — % - — % 106,293 1.55 % 106,293
−Removed: - — % - — % - — % 107,972 1.55 % $ 107,972
Municipal securities - — % 3,541 2.41 % 46,151 3.12 % 169,163 3.00 % 218,855
−Removed: - — % 3,282 2.40 % 36,578 3.18 % 170,090 3.00 % 209,950
−Removed: - — % - — % - — % 1,616 3.33 % 1,616
+Added: Collateralized debt obligations - — % - — % - — % 1,616 3.33 % 1,616
Totals $ - — % $ 11,927 1.42 % $ 46,151 3.12 % $ 277,072 2.45 % $ 335,150
2 unchanged sentences
The Company’s end-of-period deposit portfolio balances were as follows:
−Removed: (Dollars in thousands) June 30, 2025 December 31, 2024 $ Change % Change
+Added: (Dollars in thousands) September 30, 2025 December 31, 2024 $ Change % Change
Checking $ 579,760 $ 591,487 $ (11,727) (2.0 %)
3 unchanged sentences
Total deposits $ 1,750,646 $ 1,760,566 $ (9,920) (0.6 %)
−Removed: As of June 30, 2025, deposits totaled $1.8 billion, a decrease of $5.7 million or 0.32% compared to December 31, 2024.
−Removed: Core deposits totaled $1.2 billion at June 30, 2025 compared to $1.2 billion on December 31, 2024, an increase of $11.8 million or 1.0%.
−Removed: Core deposits include checking, savings, and money market accounts and represented 69.1% of the Company’s total deposits at June 30, 2025.
−Removed: On June 30, 2025, balances for certificates of deposit totaled $542.7 million, compared to $560.3 million on December 31, 2024, a decrease of $17.6 million or 3.1%.
+Added: As of September 30, 2025, deposits totaled $1.8 billion, a decrease of $9.9 million or 0.6% compared to December 31, 2024.
+Added: Core deposits totaled $1.2 billion at September 30, 2025 compared to $1.2 billion on December 31, 2024.
+Added: Core deposits include checking, savings, and money market accounts and represented 69.3% of the Company’s total deposits at September 30, 2025.
+Added: On September 30, 2025, balances for certificates of deposit totaled $536.7 million, compared to $560.3 million on December 31, 2024, a decrease of $23.6 million or 4.2%.
The decrease in deposits is primarily related to a reduction in depositor certificate of deposit activity and planned adjustments to deposit pricing.
−Removed: Checking account balances increased $2.0 million and interest bearing savings account balances decreased $9.1 million from year end primarily due to decreases in personal passbook savings account balances.
+Added: Checking account balances decreased $11.7 million and interest bearing savings account balances decreased $18.1 million from year end primarily due to decreases in personal statement savings account balances.
Money market account balances increased by $43.5 million from year end due to business and retail consumer preferences.
2 unchanged sentences
the desire of customers to deal with a local bank, the convenience of our branch network and the breadth and depth of our product line.
−Removed: Non-interest bearing demand accounts comprised 16.0% of total deposits at June 30, 2025 and 15.0% of total deposits at December 31, 2024.
−Removed: Interest bearing demand accounts, including money market and savings accounts, comprised 53.0% of total deposits at June 30, 2025 and 53.2% at December 31, 2024.
−Removed: Time accounts as a percentage of total deposits were 31.0% at June 30, 2025 and 31.8% at December 31, 2024.
+Added: Non-interest bearing demand accounts comprised 16.0% of total deposits at September 30, 2025 and 15.0% of total deposits at December 31, 2024.
+Added: Interest bearing demand accounts, including money market and savings accounts, comprised 53.2% of total deposits at both September 30, 2025 and December 31, 2024.
+Added: Time accounts as a percentage of total deposits were 30.7% at September 30, 2025 and 31.8% at December 31, 2024.
The following table presents the average daily amount of deposits and average rates paid on such deposits for the periods indicated.
The amounts are stated in thousands (000’s).
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
Amount Rate % Amount Rate %
5 unchanged sentences
Total deposits $ 1,757,721 2.15 % $ 1,755,843 2.40 %
−Removed: Deposit rates decreased in the three and six months ended June 30, 2025 compared to same periods in 2024, primarily driven by a decrease in short-term market interest rates.
+Added: Deposit rates decreased in the three and nine months ended September 30, 2025 compared to same periods in 2024, primarily driven by a decrease in short-term market interest rates.
Borrowed Funds
1 unchanged sentence
The Company’s end-of-period borrowing balances were as follows:
−Removed: (Dollars in thousands) June 30, 2025 December 31, 2024 $ Change % Change
+Added: (Dollars in thousands) September 30, 2025 December 31, 2024 $ Change % Change
Repurchase agreements $ 48,426 $ 40,116 $ 8,310 20.7 %
1 unchanged sentence
Total borrowed funds $ 103,426 $ 105,116 $ (1,690) (1.6 %)
−Removed: Borrowings and repurchase agreements totaled $113.3 million at June 30, 2025 compared to $105.1 million at December 31, 2024, an increase of $8.2 million or 7.8%.
−Removed: The increase in borrowings from December 31, 2024, was the result of additional repurchase agreement activity.
−Removed: As of June 30, 2025, 72% of our deposits are fully FDIC insured, and another 8% are further backed by the Indiana Public Deposit Insurance Fund.
+Added: Borrowings and repurchase agreements totaled $103.4 million at September 30, 2025 compared to $105.1 million at December 31, 2024, a decrease of $1.7 million or 1.6%.
+Added: The decrease in borrowings from December 31, 2024, was the result of the maturity of FHLB advances partially offset by additional repurchase agreement activity.
+Added: As of September 30, 2025, 72% of our deposits are fully FDIC insured, and another 8% are further backed by the Indiana Public Deposit Insurance Fund.
The Company’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, and access to diversified borrowing sources.
−Removed: As of June 30, 2025, the Company had available liquidity of $728.5 million including borrowing capacity from the FHLB and Federal Reserve facilities.
−Removed: Other assets totaled $41.6 million at June 30, 2025, compared to $43.9 million at December 31, 2024.
−Removed: The decrease in other assets is primarily related to decreased fair value of the Company’s interest rate swap contract derivative.
−Removed: Accrued expenses and other liabilities totaled $35.5 million at June 30, 2025, compared to $43.6 million at December 31, 2024.
+Added: As of September 30, 2025, the Company had available liquidity of $737.1 million including borrowing capacity from the FHLB and Federal Reserve facilities.
+Added: Other assets totaled $37.8 million at September 30, 2025, compared to $43.9 million at December 31, 2024.
+Added: The decrease in other assets is primarily related to decreased fair value of the Company’s interest rate swap contract derivative and a reduction in the deferred tax asset.
+Added: Accrued expenses and other liabilities totaled $33.2 million at September 30, 2025, compared to $43.6 million at December 31, 2024.
The decrease in accrued expenses and other liabilities is primarily the result of the decreased fair value of the Company's interest rate swap contract derivative, along with other activities such as a decrease in other collateral balances and ACH prefunding balances.
2 unchanged sentences
The Company incurs market risk in the normal course of business through exposures to market interest rates, equity prices, and credit spreads.
−Removed: As of June 30, 2025, the Company has identified interest rate risk as our primary source of market risk.
+Added: As of September 30, 2025, the Company has identified interest rate risk as our primary source of market risk.
Interest Rate Risk
33 unchanged sentences
The simulation also measures the change in EVE, or the net present value of our assets and liabilities, under an immediate shift, or shock, in interest rates under various scenarios, as calculated by discounting the estimated future cash flows using market-based discount rates.
−Removed: The following table shows the impact of changes in interest rates on net interest income over the next twelve months and EVE based on our balance sheet as of June 30, 2025 (dollars in millions):
+Added: The following table shows the impact of changes in interest rates on net interest income over the next twelve months and EVE based on our balance sheet as of September 30, 2025 (dollars in millions):
Interest Rate Scenario EVE* Percent Change Net interest income Percent Change
9 unchanged sentences
* Economic Value of Equity ("EVE") at Risk
−Removed: If interest rates across the yield curve were to uniformly decrease, this analysis suggests the Bank may be positioned for relatively neutral to positive improvements in net interest income over the next twelve months.
−Removed: If interest rates across the yield curve were to uniformly increase, this analysis suggests we would experience a reduction in net interest income over the next twelve months.
+Added: If interest rates across the yield curve were to uniformly decrease, this analysis suggests the Bank may be positioned for relatively neutral to modestly negative changes in net interest income over the next twelve months.
+Added: If interest rates across the yield curve were to uniformly increase by approximately 100 to 300 basis points, this analysis suggests we would experience positive impact to net interest income over the next twelve months.
+Added: If interest rates across the yield curve were to uniformly increase by a more material amount (400 basis points and above), the analysis suggests we would shift into experiencing negative impacts to net interest income over the next twelve months.
We also forecast the impact of immediate and parallel interest rate shocks on net interest income under various scenarios to measure the sensitivity of our earnings under extreme conditions.
11 unchanged sentences
While maturities and scheduled amortization of loans and securities are predictable sources of liquidity, deposit flows and loan and securities prepayments are greatly influenced by general interest rates, economic conditions, and competition.
−Removed: Our most liquid assets are unencumbered cash and due from banks and unpledged securities classified as available for sale, which could be liquidated, subject to market conditions.
−Removed: In the future, our liquidity position will be affected by the level of customer deposits and payments, as well as
−Removed: acquisitions, dividends, and share repurchases in which we may engage.
+Added: Our most liquid assets are unencumbered cash and due from banks and unpledged securities classified as available for sale, which could be liquidated, subject to market
+Added: In the future, our liquidity position will be affected by the level of customer deposits and payments, as well as acquisitions, dividends, and share repurchases in which we may engage.
For the next twelve months, we believe that our existing cash resources will be sufficient to meet the liquidity and capital requirements of our operations.
6 unchanged sentences
We have the ability to borrow from the FHLB.
−Removed: At June 30, 2025, we had five outstanding advances totaling $65 million and the ability to borrow up to $433.7 million from the FHLB.
+Added: At September 30, 2025, we had five outstanding advances totaling $55 million and the ability to borrow up to $436.0 million from the FHLB.
We also have the ability to borrow from the Federal Reserve Bank of Chicago.
−Removed: At June 30, 2025, we had no outstanding balance from the Federal Reserve Bank of Chicago.
−Removed: At June 30, 2025, cash and cash equivalents were $103.4 million and secured borrowing capacity at the Federal Reserve Bank totaled $253.8 million, providing total liquidity sources of $728.5 million (excluding brokered deposit capacity).
−Removed: The following table shows the Company’s sources of liquidity as of June 30, 2025 and December 31, 2024:
+Added: At September 30, 2025, we had no outstanding balance from the Federal Reserve Bank of Chicago.
+Added: At September 30, 2025, cash and cash equivalents were $104.2 million and secured borrowing capacity at the Federal Reserve Bank totaled $260.2 million, providing total additional liquidity sources of $737.1 million (excluding brokered deposit capacity).
+Added: The following table shows the Company’s sources of liquidity as of September 30, 2025 and December 31, 2024:
Sources of Liquidity
−Removed: As of June 30, 2025 As of December 31, 2024
+Added: As of September 30, 2025 As of December 31, 2024
Outstanding Additional Capacity Outstanding Additional Capacity
4 unchanged sentences
Total $ 55,000 $ 737,144 $ 65,000 $ 687,436
−Removed: During the six months ended June 30, 2025, cash and cash equivalents increased by $32.8 million compared to a $2.8 million decrease for the six months ended June 30, 2024.
+Added: During the nine months ended September 30, 2025, cash and cash equivalents increased by $33.6 million compared to a $14.4 million decrease for the nine months ended September 30, 2024.
The primary sources of cash and cash equivalents were sales of loans originated for sale and the net change in loans receivable.
The primary uses of cash and cash equivalents were loan originations and the net change in accrued expenses and other liabilities.
−Removed: Cash provided by operating activities totaled $1.0 million for the six months ended June 30, 2025, compared to cash provided of $2.7 million for the six months ended June 30, 2024.
+Added: Cash provided by operating activities totaled $2.2 million for the nine months ended September 30, 2025, compared to cash used of $1.0 million for the nine months ended September 30, 2024.
Cash used in operating activities was primarily a result of net income and sale of loans originated for sale offset by loans originated for sale and net change in accrued expenses and other liabilities.
−Removed: Cash provided by investing activities totaled $29.9 million for the current period, compared to cash provided in investing activities of $42.4 million for the six months ended June 30, 2024.
−Removed: Cash provided by investing activities for the current six-month period was primarily related to net change in loans receivable and proceeds from maturities of securities.
−Removed: Cash provided by financing activities totaled $2.0 million during the current period compared to net cash used in financing activities of $47.9 million for the six months ended June 30, 2024.
+Added: Cash provided by investing activities totaled $44.2 million for the current period, compared to cash provided in investing activities of $43.0 million for the nine months ended September 30, 2024.
+Added: Cash provided by investing activities for the current nine-month period was primarily related to net change in loans receivable and proceeds from maturities of securities.
+Added: Cash used in financing activities totaled $12.8 million during the current period compared to net cash used in financing activities of $56.3 million for the nine months ended September 30, 2024.
The net cash used in financing activities was primarily the result of net change in deposits offset by the change in repurchase agreements.
−Removed: On a cash basis, the Company paid dividends on common stock of $520 thousand for the six months ended June 30, 2025, and $1.0 million for the six months ended June 30, 2024.
−Removed: At June 30, 2025, outstanding commitments to fund loans totaled $239.4 million.
+Added: On a cash basis, the Company paid dividends on common stock of $1.0 million for the nine months ended September 30, 2025, and $1.6 million for the nine months ended September 30, 2024.
+Added: At September 30, 2025, outstanding commitments to fund loans totaled $269.5 million.
Approximately 60.9% of the commitments were at variable rates.
−Removed: Standby letters of credit, which are conditional commitments issued by the Company to guarantee the performance of a customer to a third-party, totaled $15.8 million at June 30, 2025.
+Added: Standby letters of credit, which are conditional commitments issued by the Company to guarantee the performance of a customer to a third-party, totaled $15.1 million at September 30, 2025.
Management believes that the Company has sufficient cash flow and borrowing capacity to fund all outstanding commitments and letters of credit, while maintaining proper levels of liquidity.
Management strongly believes that maintaining a high level of capital enhances safety and soundness.
−Removed: During the six months ended June 30, 2024, stockholders' equity increased by $2.8 million (1.9%).
−Removed: During the six months ended June 30, 2024, stockholders’ equity was primarily increased by net income of $2.6 million and other comprehensive income as the result of market value changes within the securities portfolio of $524 thousand offset by dividends declared of $520 thousand.
−Removed: On April 24, 2014, the Company’s Board of Directors authorized a stock repurchase program to repurchase up to 50,000 shares of the Company’s outstanding common stock, from time to time and subject to market conditions, on the
−Removed: open market or in privately negotiated transactions.
+Added: During the nine months ended September 30, 2025, stockholders' equity increased by $14.1 million 9.3%.
+Added: During the nine months ended September 30, 2025, stockholders’ equity was primarily increased by net income of $6.1 million and other comprehensive income as the result of market value changes within the securities portfolio of $8.8 million offset by dividends declared of
+Added: $1.0 million.
+Added: On April 24, 2014, the Company’s Board of Directors authorized a stock repurchase program to repurchase up to 50,000 shares of the Company’s outstanding common stock, from time to time and subject to market conditions, on the open market or in privately negotiated transactions.
The stock repurchase program does not expire and is only limited by the number of shares that can be purchased.
The stock repurchase program will be reviewed annually by the Board of Directors.
−Removed: No shares were repurchased under the program during the first six months of 2025 or 2024.
−Removed: During 2025, 16,469 restricted stock shares vested under the Incentive Plan outlined in Note 10 of the financial statements, of which 5,105 of these shares were withheld in the form of a net surrender to cover the withholding tax obligations of the vesting employees.
+Added: No shares were repurchased under the program during the first nine months of 2025 or 2024.
+Added: During 2025, 17,253 restricted stock shares vested under the Incentive Plan outlined in Note 10 of the condensed consolidated financial statements, of which 5,328 of these shares were withheld in the form of a net surrender to cover the withholding tax obligations of the vesting employees.
The repurchase of these surrendered shares is considered outside of the scope of the formal board approved stock repurchase program.
10 unchanged sentences
However, under the FRB’s “Small Bank Holding Company” exemption from consolidated bank holding company capital requirements, bank holding companies and savings and loan holding companies with less than $3 billion in consolidated assets, such as the Company, are exempt from consolidated regulatory capital requirements, unless the FRB determines otherwise in particular cases.
−Removed: During the six months ended June 30, 2025, the Company’s and Bank’s risk weighted assets continued to be negatively impacted by regulatory requirements regarding collateralized debt obligations.
+Added: During the nine months ended September 30, 2025, the Company’s and Bank’s risk weighted assets continued to be negatively impacted by regulatory requirements regarding collateralized debt obligations.
The regulatory requirements state that for collateralized debt obligations that have been downgraded below investment grade by the rating agencies, increased risk-based asset weightings are required.
2 unchanged sentences
As a result, approximately $1.6 million of risk-based assets are generated by the collateralized debt obligations in the Company’s and Bank’s total risk based capital calculation.
−Removed: In addition, the following table shows that, at June 30, 2025 and December 31, 2024, the Bank’s capital exceeded all applicable regulatory capital requirements as set forth in 12 C.F.R.
+Added: In addition, the following table shows that, at September 30, 2025 and December 31, 2024, the Bank’s capital exceeded all applicable regulatory capital requirements as set forth in 12 C.F.R.
(Dollars in thousands) Actual Minimum Required For
2 unchanged sentences
Corrective Action Regulations
−Removed: June 30, 2025 Amount Ratio Amount Ratio Amount Ratio
+Added: September 30, 2025 Amount Ratio Amount Ratio Amount Ratio
Common equity tier 1 capital to risk-weighted assets $ 184,560 11.49 % $ 72,261 4.50 % $ 104,376 6.50 %
21 unchanged sentences
Assuming receipt of regulatory approval for all cash dividends declared by the Bank under the terms of the MOU, the aggregate amount of dividends that the Bank is eligible to declare in 2025, without the need for qualifying for a further exemption or prior DFI approval under the terms of Indiana law described above, is its 2025 net income.
−Removed: On April 9, 2025, the Board of Directors of the Company declared the most recently quarterly dividend of $0.12 per share.
−Removed: The Company’s quarterly dividend was paid to shareholders on May 12, 2025 to shareholders of record on April 22, 2025.
−Removed: Results of Operations - Comparison of the Three Months Ended June 30, 2025 and June 30, 2024
−Removed: For the quarter ended June 30, 2025, the Company reported net income of $2.2 million, compared to net income of $143 thousand for the quarter ended June 30, 2024, an increase of $2.0 million.
−Removed: For the quarter ended June 30, 2025, the ROA was 0.42%, compared to 0.03 % for the quarter ended June 30, 2024.
−Removed: The ROE was 5.66% for the quarter ended June 30, 2025, compared to 0.39% for the quarter ended June 30, 2024.
+Added: On August 15, 2025, the Board of Directors of the Company declared the most recent quarterly dividend of $0.12 per share.
+Added: The Company’s quarterly dividend was paid to shareholders on September 12, 2025 to shareholders of record on August 29, 2025.
+Added: Results of Operations - Comparison of the Three Months Ended September 30, 2025 and September 30, 2024
+Added: For the quarter ended September 30, 2025, the Company reported net income of $3.5 million, compared to net income of $606 thousand for the quarter ended September 30, 2024, an increase of $2.9 million.
+Added: For the quarter ended September 30, 2025, the ROA was 0.68%, compared to 0.12 % for the quarter ended September 30, 2024.
+Added: The ROE was 8.96% for the quarter ended September 30, 2025, compared to 1.60% for the quarter ended September 30, 2024.
Information relating to the average consolidated balance sheet and the yield on average earning assets and cost of average liabilities for the periods indicated are in the following table.
3 unchanged sentences
(Dollars in thousands) Average Balances, Interest, and Rates
−Removed: (unaudited) June 30, 2025 June 30, 2024
+Added: (unaudited) September 30, 2025 September 30, 2024
Balance Interest Rate (%) Average
27 unchanged sentences
Ratio of interest-earning assets to interest-bearing liabilities 1.20x 1.20x
−Removed: Net interest income for the quarter ended June 30, 2025, was $13.9 million, an increase of $1.9 million (15.7%), compared to $12.1 million for the quarter ended June 30, 2024.
−Removed: The weighted-average yield on interest-earning assets was 4.82% for the quarter June 30, 2025, compared to 4.64% for the quarter ended June 30, 2024.
−Removed: The weighted-average cost of interest-bearing liabilities for the quarter ended June 30, 2025, was 2.22% compared to 2.55% for the quarter ended June 30, 2024.
−Removed: The impact of the 4.82% return on interest-earning assets and the 2.22% cost of interest-bearing liabilities resulted in an interest rate spread of 2.60% for the current quarter, an increase from the 2.09% spread for the quarter ended June 30, 2024.
−Removed: On a tax adjusted basis, the Company’s net interest margin was 3.11% for the quarter ended June 30, 2025, compared to 2.67% for the quarter ended June 30, 2024.
+Added: Net interest income for the quarter ended September 30, 2025, was $14.4 million, an increase of $2.4 million (20.3%), compared to $12.0 million for the quarter ended September 30, 2024.
+Added: The weighted-average yield on interest-earning assets was 4.91% for the quarter September 30, 2025, compared to 4.70% for the quarter ended September 30, 2024.
+Added: The weighted-average cost of interest-bearing liabilities for the quarter ended September 30, 2025, was 2.25% compared to 2.63% for the quarter ended September 30, 2024.
+Added: The impact of the 4.91% return on interest-earning assets and the 2.25% cost of interest-bearing liabilities resulted in an interest rate spread of 2.66% for the current quarter, an increase from the 2.07% spread for the quarter ended September 30, 2024.
+Added: On a tax adjusted basis, the Company’s net interest margin was 3.18% for the quarter ended September 30, 2025, compared to 2.66% for the quarter ended September 30, 2024.
The Company believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully-taxable equivalent basis, as these measures provide useful information to make peer comparisons.
2 unchanged sentences
(Dollars in thousands) Quarter Ended,
−Removed: (unaudited) June 30, 2025 June 30, 2024
+Added: (unaudited) September 30, 2025 September 30, 2024
Calculation of net interest margin, tax-equivalent basis
4 unchanged sentences
Net interest margin (tax-equivalent basis) 3.18 % 2.66 %
−Removed: The increased net interest income and net interest margin for the quarter ended June 30, 2025, was primarily the result of reduced deposit and borrowing costs as a result of the Federal Reserve reduction of federal funds rates year over year and increased loan yields as commercial loans mature and/or reprice.
−Removed: The following table shows the change in non-interest income for the quarter ending June 30, 2025, and June 30, 2024.
−Removed: (Dollars in thousands) Three Months Ended June 30, 6/30/2025 vs.
+Added: The increased net interest income and net interest margin for the quarter ended September 30, 2025, was primarily the result of reduced deposit and borrowing costs as a result of the Federal Reserve reduction of federal funds rates year over year and increased loan yields as commercial loans mature and/or reprice.
+Added: The following table shows the change in non-interest income for the quarter ending September 30, 2025, and September 30, 2024.
+Added: (Dollars in thousands) Three Months Ended September 30, 9/30/2025 vs.
2025 2024 $ Change % Change
2 unchanged sentences
Wealth management operations 759 731 28 3.8 %
−Removed: Gain on sale of loans held-for-sale, net 378 320 58 18.1
+Added: Gain (loss) on tax credit investment 23 - 23 NM
+Added: Gain (loss) on sale of loans held-for-sale, net 265 338 (73) (21.6) %
Increase in cash value of bank owned life insurance 210 205 5 2.4 %
−Removed: Gain on sale of real estate - 15 (15) (100.0)
+Added: Gain (loss) on sale of real estate (56) - (56) NM
Other 249 130 119 91.5 %
Total non-interest income $ 2,913 $ 2,867 $ 46 1.6 %
−Removed: The increase non-interest income is primarily the result of higher income from fees and service charges and increased gains on sale of loans.
−Removed: The following table shows the change in non-interest expense for the three months ending June 30, 2025 and June 30, 2024.
−Removed: (Dollars in thousands) Three Months Ended June 30, 6/30/2025 vs.
+Added: The increase in non-interest income during the quarter ended September 30, 2025 compared to the same period in 2024 was primarily the result of higher other income related to an individual BOLI claim benefit partially offset by decreased gains on sale of loans.
+Added: The following table shows the change in non-interest expense for the three months ending September 30, 2025 and September 30, 2024.
+Added: (Dollars in thousands) Three Months Ended September 30, 9/30/2025 vs.
2025 2024 $ Change % Change
9 unchanged sentences
Total non-interest expense $ 14,097 $ 14,474 $ (377) (2.6) %
−Removed: Increases in non-interest expenses during the quarter ended June 30, 2025 were primarily attributable to higher compensation and benefits expenses and higher data processing expenses offset by lower occupancy and equipment expenses and professional and outside services fees.
−Removed: The benefit for income taxes was $35 thousand for the quarter ended June 30, 2025, as compared to the benefit of $9 thousand for the quarter ended June 30, 2024.
−Removed: The effective tax rate was negative 1.7% for the quarter ended June 30, 2025
−Removed: as compared to negative 6.7% for the quarter ended June 30, 2024.
−Removed: The Company’s lower current effective tax rate for the quarter ended June 30, 2025, is primarily a result of a decrease in estimated full year 2025 tax accrual based on updated projected earnings levels.
−Removed: Results of Operations - Comparison of the Six Months Ended June 30, 2025 to June 30, 2024
−Removed: For the six months ended June 30, 2025, the Company reported net income of $2.6 million, a decrease of $6.8 million (72.3%) compared to $9.4 million for the six months ended June 30, 2024.
−Removed: For the six months ended June 30, 2025, the ROA was 0.25%, compared to 0.91% for the six months ended June 30, 2024.
−Removed: The ROE was 3.39% for the six months ended June 30, 2025, compared to 12.81% for the six months ended June 30, 2024.
+Added: Decreases in non-interest expenses during the quarter ended September 30, 2025 were primarily attributable to lower occupancy and equipment expenses relating to reduced depreciation of our fixed assets, lower professional and outside services fees relating to implementation of the corrective actions set forth in the Consent Order, and lower other expenses relating to reduced core deposit intangible amortization from prior acquisitions.
+Added: These decreases were partially offset by higher compensation and benefits expense, driven by annual merit-based increases and other refinements in roles and responsibilities within the organization.
+Added: The expense for income taxes was $63 thousand for the quarter ended September 30, 2025, as compared to the benefit of $207 thousand for the quarter ended September 30, 2024.
+Added: The effective tax rate was 1.8% for the quarter ended September 30, 2025 as compared to negative 51.9% for the quarter ended September 30, 2024.
+Added: The Company’s higher current effective tax rate for the quarter ended September 30, 2025, is primarily a result of updated projected earnings levels used in estimating full year 2025 tax accrual.
+Added: Results of Operations - Comparison of the Nine Months Ended September 30, 2025 to September 30, 2024
+Added: For the nine months ended September 30, 2025, the Company reported net income of $6.1 million, a decrease of $3.9 million (39.1%) compared to $10.0 million for the nine months ended September 30, 2024.
+Added: For the nine months ended September 30, 2025, the ROA was 0.40%, compared to 0.64% for the nine months ended September 30, 2024.
+Added: The ROE was 5.27% for the nine months ended September 30, 2025, compared to 4.50% for the nine months ended September 30, 2024.
Information relating to the average consolidated balance sheet and the yield on average earning assets and cost of average liabilities for the periods indicated are in the following table.
2 unchanged sentences
(Dollars in thousands) Average Balances, Interest, and Rates
−Removed: (unaudited) June 30, 2025 June 30, 2024
+Added: (unaudited) September 30, 2025 September 30, 2024
Balance Interest Rate (%) Average
27 unchanged sentences
Ratio of interest-earning assets to interest-bearing liabilities 1.20x 1.20x
−Removed: Net interest income for the six months ended June 30, 2025, was $27.3 million, an increase of $3.4 million (14.4%), compared to $23.8 million for the six months ended June 30, 2024.
−Removed: The weighted-average yield on interest-earning assets
−Removed: was 4.77% for the six months ended June 30, 2025 compared to 4.58% for the six months ended June 30, 2024.
−Removed: The weighted-average cost of interest-bearing liabilities for the six months ended June 30, 2025, was 2.25% compared to 2.54% for the six months ended June 30, 2024.
−Removed: The impact of the 4.77% return on interest-earning assets and the 2.25% cost of interest-bearing liabilities resulted in an interest rate spread of 2.52% for the six months ended June 30, 2025, an increase from the 2.04% spread for the six months ended June 30, 2024.
−Removed: The Company’s net interest margin on a tax-equivalent basis was 3.03% for the six months ended June 30, 2025, compared to 2.62% for the six months ended June 30, 2024.
+Added: Net interest income for the nine months ended September 30, 2025, was $41.7 million, an increase of $5.9 million (16.4%), compared to $35.8 million for the nine months ended September 30, 2024.
+Added: The weighted-average yield on interest-earning assets was 4.82% for the nine months ended September 30, 2025 compared to 4.62% for the nine months ended September 30, 2024.
+Added: The weighted-average cost of interest-bearing liabilities for the nine months ended September 30, 2025, was 2.25% compared to 2.57% for the nine months ended September 30, 2024.
+Added: The impact of the 4.82% return on interest-earning assets and the 2.25% cost of interest-bearing liabilities resulted in an interest rate spread of 2.57% for the nine months ended September 30, 2025, an increase from the 2.05% spread for the nine months ended September 30, 2024.
+Added: The Company’s net interest margin on a tax-equivalent basis was 3.08% for the nine months ended September 30, 2025, compared to 2.63% for the nine months ended September 30, 2024.
The Company believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully-taxable equivalent basis, as these measures provide useful information to make peer comparisons.
1 unchanged sentence
See the non-GAAP reconciliation table immediately below and the section captioned “Non-GAAP Financial Measures” for further disclosure regarding non-GAAP financial measures.
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
(Dollars in thousands) 2025 2024
5 unchanged sentences
Net interest margin (tax-equivalent basis) 3.08 % 2.63 %
−Removed: The increased net interest income and net interest margin for the six months ended June 30, 2025, was primarily the result of reduced deposit and borrowing costs as a result of the Federal Reserve's reduction of federal funds rates year over year and increased loan yields as commercial loans mature and/or reprice.
−Removed: The following table shows the change in non-interest income for the six months ended June 30, 2025, and June 30, 2024.
−Removed: (Dollars in thousands) Six Months Ended June 30, 6/30/2025 vs.
+Added: The increased net interest income and net interest margin for the nine months ended September 30, 2025, was primarily the result of reduced deposit and borrowing costs as a result of the Federal Reserve's reduction of federal funds rates year over year and increased loan yields as commercial loans mature and/or reprice.
+Added: The following table shows the change in non-interest income for the nine months ended September 30, 2025, and September 30, 2024.
+Added: (Dollars in thousands) Nine Months Ended
+Added: September 30, 9/30/2025 vs.
2025 2024 $ Change % Change
2 unchanged sentences
Wealth management operations 2,074 2,127 (53) (2.5) %
−Removed: Gain on tax credit investment 67 - 67 —
−Removed: Gain on sale of loans held-for-sale, net 608 472 136 28.8
+Added: Gain (loss) on tax credit investment 90 - 90 - %
+Added: Gain (loss) on sale of loans held-for-sale, net 873 810 63 7.8 %
Increase in cash value of bank owned life insurance 628 610 18 3.0 %
−Removed: Gain on sale of real estate - 11,873 (11,873) (100.0)
−Removed: Loss on sale of securities, net - (531) 531 (100.0)
+Added: Gain (loss) on sale of real estate (56) 11,873 (11,929) (100.5) %
+Added: Gain (loss) on sale of securities, net - (531) 531 (100.0) %
Other 314 154 160 103.9 %
2 unchanged sentences
The 2024 non-interest income real estate gain was also partially offset by a $531 thousand loss from the sale of $15.1 million in securities, a transaction also completed during the first quarter of 2024 to improve future profitability, deleverage the balance sheet through a reduction in borrowings outstanding, and further benefit regulatory capital ratios in subsequent periods.
−Removed: The following table shows the change in non-interest expense for the six months ended June 30, 2025, and June 30, 2024.
−Removed: (Dollars in thousands) Six Months Ended June 30, 6/30/2025 vs.
+Added: The following table shows the change in non-interest expense for the nine months ended September 30, 2025, and September 30, 2024.
+Added: (Dollars in thousands) Nine Months Ended
+Added: September 30, 9/30/2025 vs.
2025 2024 $ Change % Change
9 unchanged sentences
Total non-interest expense $ 43,355 $ 43,895 $ (540) (1.2) %
−Removed: Decreases in non-interest expenses during the six months ended June 30, 2025, were primarily attributable to non-recurring professional and outside service expenses occurring during 2024 which were associated with the implementation of the corrective actions set forth in the Consent Order and sale leaseback transaction, as well as lower technology costs in 2025.
+Added: Decreases in non-interest expenses during the nine months ended September 30, 2025, were primarily attributable to non-recurring professional and outside service expenses occurring during 2024 which were associated with the implementation of the corrective actions set forth in the Consent Order and sale leaseback transaction, as well as lower technology costs in 2025.
This decrease in non-interest expense was primarily offset by increases in compensation and benefit expense driven by annual merit-based increases.
−Removed: The provision for income taxes was $126 thousand for the six months ended June 30, 2025 as compared to the provision of $963 thousand for the six months ended June 30, 2024.
−Removed: The effective tax rate was 4.6% for the six months ended June 30, 2025, as compared to 9.3% for the six months ended June 30, 2024.
−Removed: The Company’s year-to-date effective tax rate for the six months ended June 30, 2025, decreased primarily due to a decrease in estimated full year 2025 tax accrual based on updated projected earnings levels.
+Added: The provision for income taxes was $189 thousand for the nine months ended September 30, 2025 as compared to the provision of $756 thousand for the nine months ended September 30, 2024.
+Added: The effective tax rate was 3.0% for the nine months ended September 30, 2025, as compared to 7.0% for the nine months ended September 30, 2024.
+Added: The Company’s year-to-date effective tax rate for the nine months ended September 30, 2025, decreased primarily due to a decrease in estimated full year 2025 tax accrual based on updated projected earnings levels.
Critical Accounting Policies
10 unchanged sentences
The adjusted net interest income and tax-adjusted net interest margin measures recognize the income tax savings when comparing taxable and tax-exempt assets.
−Removed: Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%.
−Removed: Management believes that it is standard practice in the banking industry to
−Removed: present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.
+Added: Interest income and yields on tax-exempt securities and loans are presented using
+Added: the current federal income tax rate of 21%.
+Added: Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.
Although these non-GAAP financial measures are frequently used by investors to evaluate a financial institution’s business and performance, they have limitations as analytical tools and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.
3 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.