What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-08-13 compared with 2025-05-07 · 447 added, 168 removed, 1086 unchanged (36% of the section changed)

7 unchanged sentences

Investment securities – available for sale (at fair value)

Investment securities – held to maturity, net of allowance for credit losses of $ 59 at March 31, 2025 and December 31, 2024 (fair value $ 146,771 at March 31, 2025 and $ 144,760 at December 31, 2024)

Investment securities – held to maturity, net of allowance for credit losses of $ 59 at June 30, 2025 and December 31, 2024 (fair value $ 148,496 at June 30, 2025 and $ 144,760 at December 31, 2024)

Equity investments not held for trading with readily determinable fair values

28 unchanged sentences

Authorized 25,000,000 shares;

issued and outstanding 6,478,634 shares at March 31, 2025 and 6,471,096 at December 31, 2024

issued and outstanding 6,494,611 shares at June 30, 2025 and 6,471,096 at December 31, 2024

Retained earnings

6 unchanged sentences

(In thousands, except per share data)

Six Months Ended

Interest income

Interest and fees on loans

Interest on investment securities

Exempt from federal income tax

Total investment income

Total interest income

Interest expense

Interest on deposits:

Interest-bearing transaction accounts

Time deposits

Total interest on deposits

Interest on short-term borrowings

Interest on long-term borrowings

Total Interest Expense

Net Interest income

Credit loss expense

Credit loss expense - loans

Credit loss expense/(credit) - off-balance sheet credit exposures

Total credit loss expense

Net interest income after provision for credit losses

Other operating income

Net gains on sales of residential mortgage loans

Service charges on deposit accounts

Other service charges

Trust department

Debit card income

Bank owned life insurance

Brokerage commissions

Total other income

Total other operating income

Other operating expenses

Salaries and employee benefits

FDIC premiums

Equipment expense

Occupancy expense of premises

Data processing expense

Marketing expense

Professional services

Contract labor

Other real estate owned expense, net

Investor relations

Contributions

Total other operating expenses

Income before income tax expense

Provision for income tax expense

Basic net income per share

Diluted net income per share

Weighted average number of basic shares outstanding

Weighted average number of diluted shares outstanding

Dividends declared per share

See accompanying notes to the consolidated financial statements

First United Corporation and Subsidiaries

Consolidated Statements of Operations

(In thousands, except per share data)

Three Months Ended

16 unchanged sentences

Credit loss expense - loans

Credit loss credit - off-balance sheet credit exposures

Credit loss expense/(credit) - off-balance sheet credit exposures

Total credit loss expense

29 unchanged sentences

Weighted average number of diluted shares outstanding

Dividends declared per common share

Dividends declared per share

See accompanying notes to the consolidated financial statements

2 unchanged sentences

(In thousands)

Three Months Ended

Six Months Ended

Comprehensive Income

Other comprehensive (loss)/income, net of tax and reclassification adjustments:

Other comprehensive income/(loss), net of tax and reclassification adjustments:

Available for sale securities:

Unrealized holding gains on investments with credit related impairment

Unrealized holding gain/(loss) on investments with credit related impairment

Reclassification adjustment for accretable yield realized in income

Other comprehensive (loss)/income on investments with credit related impairment

Other comprehensive income/(loss) on investments with credit related impairment

Unrealized holding gains/(losses) on all other AFS investments

7 unchanged sentences

Other comprehensive (loss)/income on cash flow hedges

Pension plan assets:

Pension plan liability:

Unrealized holding (losses)/gains on pension plan liability

Reclassification adjustment for amortization of unrecognized losses realized in income

Other comprehensive (loss)/income on pension plan liability

Other comprehensive income on pension plan liability

SERP liability:

2 unchanged sentences

Other comprehensive income on SERP liability

Other comprehensive (loss)/income before income tax

Income tax effect related to other comprehensive (loss)/income

Other comprehensive (loss)/income, net of tax

Other comprehensive income/(loss) before income tax

Income tax effect related to other comprehensive income/(loss)

Other comprehensive income/(loss), net of tax

Comprehensive income

1 unchanged sentence

First United Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

(In thousands)

Three Months Ended

Comprehensive Income

Other comprehensive income/(loss), net of tax and reclassification adjustments:

Available for sale securities:

Unrealized holding gains/(losses) on investments with credit related impairment

Reclassification adjustment for accretable yield realized in income

Other comprehensive income/(loss) on investments with credit related impairment

Unrealized holding gains/(losses) on all other AFS investments

Other comprehensive income/(loss) on all other AFS investments

Held to Maturity Securities

Unrealized holding losses on securities transferred to held to maturity

Unrealized holding gains on HTM investments

Reclassification adjustment for amortization realized in income

Other comprehensive income on HTM investments

Cash flow hedges:

Unrealized holding losses on cash flow hedges

Other comprehensive loss on cash flow hedges

Pension plan liability:

Unrealized holding gains/(losses) on pension plan liability

Reclassification adjustment for amortization of unrecognized losses realized in income

Other comprehensive income/(loss) on pension plan liability

SERP liability:

Unrealized holding gains on SERP liability

Reclassification adjustment for amortization of unrealized losses realized in income

Other comprehensive income on SERP liability

Other comprehensive income/(loss) before income tax

Income tax effect related to other comprehensive income/(loss)

Other comprehensive income/(loss), net of tax

Comprehensive income

See accompanying notes to the consolidated financial statements

First United Corporation and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

8 unchanged sentences

Balance at March 31, 2025

Other comprehensive income

Stock based compensation

Common stock issued - 15,977 shares

Common stock dividend declared - $ 0.22 per share

Balance at June 30, 2025

Comprehensive

6 unchanged sentences

Balance at March 31, 2024

Other comprehensive loss

Stock based compensation

Common stock issued - 18,756 shares

Common stock repurchase- 201,800 shares

Common stock dividend declared - $ 0.20 per share

Balance at June 30, 2024

See accompanying notes to the consolidated financial statements

2 unchanged sentences

(In thousands)

Three Months Ended

Six Months Ended

Operating activities

3 unchanged sentences

Gains on sales of other real estate owned

Write-downs of other real estate owned, net

Originations of loans held for sale

7 unchanged sentences

Amortization of operating lease right of use asset

Decrease in accrued interest receivable and other assets

Deferred tax (benefit)/expense

(Increase)/decrease in accrued interest receivable and other assets

Deferred tax benefit

Amortization of operating lease liability

5 unchanged sentences

Purchases of investment securities - AFS

Purchases of investment securities - HTM

Purchases of equity securities with readily determinable fair market values

1 unchanged sentence

Net (increase)/decrease in restricted stock

Net decrease/(increase) in loans

Net increase in loans

Purchases of premises and equipment

1 unchanged sentence

Financing activities

Net increase in deposits

Net increase/(decrease) in deposits

Issuance of common stock

1 unchanged sentence

Net (decrease)/increase in short-term borrowings

Stock repurchase

Payments of long-term borrowings

Net cash provided by financing activities

Increase in cash and cash equivalents

Net cash provided by/(used in) financing activities

Increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the year

2 unchanged sentences

Interest paid

Non-cash investing activities:

Transfers from loans to other real estate owned

See accompanying notes to the consolidated financial statements

4 unchanged sentences

First United Corporation has prepared these unaudited condensed consolidated financial statements in accordance with GAAP for interim financial information, rules of the Securities and Exchange Commission that permit reduced disclosure for interim periods, and Article 8 of Regulation S-X.

Operating results for the three-month period ended March 31, 2025 are not necessarily indicative of the results that may be expected for the full year or for any future interim period.

Operating results for the six- and three-month periods ended June 30, 2025 are not necessarily indicative of the results that may be expected for the full year or for any future interim period.

These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in First United Corporation’s Annual Report on Form 10-K for the year ended December 31, 2024.

6 unchanged sentences

As used in these notes, the terms “the Corporation” “we”, “us”, and “our” refer to First United Corporation and, unless the context clearly requires otherwise, its consolidated subsidiaries.

The Corporation has evaluated events and transactions occurring subsequent to the statement of financial condition date of March 31, 2025 and through the date these consolidated financial statements were issued, for items of potential recognition or disclosure.

The Corporation has evaluated events and transactions occurring subsequent to the statement of financial condition date of June 30, 2025 and through the date these consolidated financial statements were issued, for items of potential recognition or disclosure.

Note 2 – Accounting Statements Issued but Not Yet Adopted

11 unchanged sentences

The prescribed categories include, among other things, employee compensation, depreciation, and intangible asset amortization.

Additionally, entities must disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses.

2024-03 is effective on a prospective basis for annual periods beginning

after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, though early adoption and retrospective application is permitted.

Additionally, entities must disclose the total amount of selling expenses and, in annual reporting

periods, an entity’s definition of selling expenses.

2024-03 is effective on a prospective basis for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, though early adoption and retrospective application is permitted.

2024-03 is not expected to have a significant impact on our financial statements.

Note 3 – Earnings Per Common Share

Basic earnings per common share is derived by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period and does not include the effect of any potentially dilutive common stock equivalents.

Diluted earnings per share is derived by dividing net income available to common shareholders by the weighted-average number of shares outstanding, adjusted for the dilutive effect of outstanding common stock equivalents, such as restricted stock units (“RSUs”).

There were no anti-dilutive shares outstanding at March 31, 2025 or 2024.

The following table sets forth the calculation of basic and diluted earnings per common share for the three-month periods ended March 31, 2025 and 2024:

Three months ended March 31,

Note 3 – Earnings Per Share

Basic earnings per share is derived by dividing net income available to shareholders by the weighted-average number of common shares outstanding during the period and does not include the effect of any potentially dilutive common stock equivalents.

Diluted earnings per share is derived by dividing net income available to shareholders by the weighted-average number of shares outstanding, adjusted for the dilutive effect of outstanding common stock equivalents, such as restricted stock units (“RSUs”).

There were no anti-dilutive shares outstanding at June 30, 2025 or 2024.

The following table sets forth the calculation of basic and diluted earnings per common share for the six- and three-month periods ended June 30, 2025 and 2024:

Six months ended June 30,

(in thousands, except for per share amount)

2 unchanged sentences

Restricted stock units

Three months ended June 30,

(in thousands, except for per share amount)

Basic Earnings Per Share:

Diluted Earnings Per Share:

Restricted stock units

Note 4 – Investments

The following tables show a comparison of amortized cost and fair values of investment securities at March 31, 2025 and December 31, 2024:

The following tables show a comparison of amortized cost and fair values of investment securities at June 30, 2025 and December 31, 2024:

(in thousands)

1 unchanged sentence

Estimated Fair Value

March 31, 2025

June 30, 2025

Available for Sale:

10 unchanged sentences

Allowance for Credit Losses

March 31, 2025

June 30, 2025

Held to Maturity:

30 unchanged sentences

The Corporation utilizes FASB Accounting Standards Codification (“ASC”) Topic 326 to evaluate its available-for-sale (“AFS”) and held-to-maturity (“HTM”) debt security portfolio for expected credit losses.

For any AFS debt security in an unrealized loss position, the Corporation first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery to its amortized cost basis.

For any AFS debt security in an unrealized loss position, the Corporation first assesses whether it intends to sell, or it is more likely than not that the Corporation will be required to sell, the security before recovery to its amortized cost basis.

If either criterion regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income.

For AFS debt securities that do not meet the aforementioned criteria, the Corporation evaluates whether the decline in fair value has resulted from credit losses or other factors.

For AFS debt securities that do not meet the aforementioned criteria, the Corporation evaluates whether any decline in fair value has resulted from credit losses or other factors.

In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors.

1 unchanged sentence

If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses (“ACL”) is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis.

Any impairment that has not been recorded through the ACL is recognized in other comprehensive income (“OCI”).

Any impairment that has not been recorded through the ACL is recorded in other comprehensive income (“OCI”).

The Corporation adopted ASC Topic 326 using the prospective transition approach for debt securities for which other than temporary impairment (“OTTI”) had been recognized prior to January 1, 2023, such as AFS collateralized debt obligations.

1 unchanged sentence

The effective interest rate on these debt securities was not changed.

Amounts previously written off are recognized in OCI as of January 1, 2023 relating to improvements in cash flows expected to be collected are accreted into income over the remaining life of the asset.

Recoveries of amounts previously written off relating to improvements in cash flows after January 1, 2023 are recorded in earnings when received.

Amounts of OTTI that were recorded prior to January 1, 2023 are being accreted into income over the remaining life of the assets.

The ACL on HTM securities is a contra-asset valuation account, calculated in accordance with ASC Topic 326.

Management measures expected credit losses on HTM debt securities on a collective basis by major security type.

Management has elected not to measure an ACL for accrued interest on securities.

Management has elected to not measure an ACL for accrued interest on securities.

The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts.

4 unchanged sentences

guaranteed residential mortgage-backed securities, commercial mortgage-backed securities, and collateralized mortgage obligations);

(ii) rated municipal securities, and (iii) unrated municipal securities.

(ii) rated municipal securities;

and (iii) unrated municipal securities.

With regard to securities issued by U.S.

government agencies and corporations, it is expected that the securities will not settle at prices less than the amortized cost bases of the securities as such securities are backed by the full faith and credit of and/or guaranteed by the U.S.

government agencies and corporations, it is expected that the securities will not settle at prices that are less than the amortized cost bases of the securities, as such securities are backed by the full faith and credit of and/or guaranteed by the U.S.

Accordingly, no ACL has been recorded on these securities.

1 unchanged sentence

Non-rated securities are evaluated internally based on financial performance and expected future cash flows.

As of both March 31, 2025 and December 31, 2024, the Corporation recorded ACL of approximately $ 59,000 related to one municipal bond in its HTM security portfolio.

The following tables show the Corporation’s investment securities with gross unrealized and unrecognized losses and fair values at March 31, 2025 and December 31, 2024, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:

As of both June 30, 2025 and December 31, 2024, the Corporation recorded ACL of approximately $ 59,000 related to one municipal bond in its HTM security portfolio.

The following tables show the Corporation’s investment securities with gross unrealized and unrecognized losses and fair values at June 30, 2025 and December 31, 2024, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:

Less than 12 months

1 unchanged sentence

(in thousands)

March 31, 2025

June 30, 2025

Available for Sale:

10 unchanged sentences

(in thousands)

March 31, 2025

June 30, 2025

Held to Maturity:

29 unchanged sentences

Total held to maturity

The amortized cost and estimated fair value of securities by contractual maturities at March 31, 2025 are shown in the following table.

The amortized cost and estimated fair value of securities by contractual maturities at June 30, 2025 are shown in the following table.

Expected maturities for mortgage-backed securities and collateralized mortgage obligations will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

March 31, 2025

June 30, 2025

(in thousands)

16 unchanged sentences

Total held to maturity

At March 31, 2025 and December 31, 2024, AFS investment securities with an aggregate fair value of $ 79.3 million and $ 71.6 million, respectively, and HTM investment securities with an aggregate book value of $ 167.4 million and $ 161.2 million, respectively, were pledged as permitted or required to secure public deposits, for securities sold under agreements to repurchase as required or permitted by law and as collateral for borrowing capacity.

At June 30, 2025 and December 31, 2024, AFS investment securities with an aggregate fair value of $ 85.2 million and $ 71.6 million, respectively, and HTM investment securities with an aggregate book value of $ 166.6 million and $ 161.2 million, respectively, were pledged as permitted or required to secure public deposits, for securities sold under agreements to repurchase as required or permitted by law and as collateral for borrowing capacity.

Note 5 – Loans and Related Allowance for Credit Losses

The following table summarizes the primary segments of the loan portfolio at March 31, 2025 and December 31, 2024:

The following table summarizes the primary segments of the loan portfolio at June 30, 2025 and December 31, 2024:

(in thousands)

March 31, 2025

June 30, 2025

Individually evaluated for impairment

3 unchanged sentences

Collectively evaluated for impairment

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans at March 31, 2025 and December 31, 2024:

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans at June 30, 2025 and December 31, 2024:

(in thousands)

March 31, 2025

June 30, 2025

Commercial real estate:

19 unchanged sentences

Residential mortgage - home equity

Non-accrual loans that have been subject to partial charge-offs totaled $ 0.7 million at March 31, 2025 and December 31, 2024.

There were no loans secured by 1-4 family residential real estate properties in the process of foreclosure at March 31, 2025.

Loans secured by 1-4 family residential real estate properties in the process of foreclosure totaled $ 1.6 million at December 31, 2024.

Accruing loans past due 30 days or more constituted 0.42 % of the loan portfolio at March 31, 2025 compared to 0.32 % at December 31, 2024.

Non-accrual loans that have been subject to partial charge-offs totaled $ 0.7 million at both June 30, 2025 and December 31, 2024.

Loans secured by 1-4 family residential real estate properties in the process of foreclosure totaled $ 0.1 million and $ 1.6 million at June 30, 2025 and December 31, 2024, respectively.

Accruing loans past due 30 days or more constituted 0.27 % of the loan portfolio at June 30, 2025 compared to 0.32 % at December 31, 2024.

A loan that is considered a non-accrual or modified loan may be subject to the individually evaluated loan analysis if the commitment is $ 0.1 million or greater;

24 unchanged sentences

The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the industry of the borrower.

Collateral for these types of loans often do not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt.

The collateral for these types of loans often does not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt.

These loans are also made to local municipalities for various purposes including refinancing existing obligations, infrastructure up-fit and expansion, or to purchase new equipment.

11 unchanged sentences

The value of the collateral, if there is any, is less likely to be a source of repayment due to less certain collateral values.

The following table summarizes the primary segments of the ACL at March 31, 2025 and December 31, 2024, segregated by the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment:

The following table summarizes the primary segments of the ACL at June 30, 2025 and December 31, 2024, segregated by the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment:

(in thousands)

March 31, 2025

June 30, 2025

Individually evaluated

9 unchanged sentences

The evaluation of the need and amount of a specific allocation of the ACL and whether a loan can be removed from impairment status is made on a quarterly basis.

The following tables present the amortized cost basis of collateral-dependent individually evaluated loans as of March 31, 2025 and December 31, 2024.

March 31, 2025

The following tables present the amortized cost basis of collateral-dependent individually evaluated loans as of June 30, 2025 and December 31, 2024.

June 30, 2025

(in thousands)

8 unchanged sentences

Commercial real estate

Commercial and industrial

Residential mortgage

The following tables present the activity in the ACL for the three-month periods ended March 31, 2025 and 2024:

Nine months ended (in thousands)

The following tables present the activity in the ACL for the six- and three-month periods ended June 30, 2025 and 2024:

Six months ended (in thousands)

Beginning balance at January 1, 2025

1 unchanged sentence

Recoveries collected

Credit loss (credit)/expense

ACL balance at March 31, 2025

Credit loss expense/(credit)

ACL balance at June 30, 2025

Beginning balance at January 1, 2024

2 unchanged sentences

Credit loss (credit)/expense

ACL balance at March 31, 2024

ACL balance at June 30, 2024

Three months ended (in thousands)

ACL balance at April 1, 2025

Loan charge-offs

Recoveries collected

Credit loss expense/(credit)

ACL balance at June 30, 2025

ACL balance at April 1, 2024

Loan charge-offs

Recoveries collected

Credit loss(credit)/expense

ACL balance at June 30, 2024

The Corporation’s methodology for estimating the ACL includes:

8 unchanged sentences

Quantitative Analysis.

The Corporation elected to use discounted cash flows.

The Corporation has elected to use discounted cash flows.

Economic forecasts include but are not limited to unemployment, the Consumer Price Index, the Housing Affordability Index, and Gross State Product.

3 unchanged sentences

The reserve is based on the difference between the summation of the principal balances taking amortized costs into consideration and the summation of the net present values.

The Corporation has elected to forecast out the first four quarters of the credit loss estimate and revert this forecast to long-term historical averages on a straight-line basis over eight quarters.

By reverting these modeling inputs to their historical average and considering loan/borrower specific attributes, our models are intended to yield a measurement of expected credit losses that reflects our average historical loss rates for periods subsequent to the reversion period.

Qualitative Analysis.

4 unchanged sentences

Additionally, management may adjust the economic forecast if it is incompatible with known market conditions based on management’s experience and perspective.

The Corporation has elected to forecast the first four quarters of the credit loss estimate and revert on a straight-line basis.

Based on the final values in the forecast and the uncertainty of a post-pandemic recovery, management has elected to revert over eight quarters.

By reverting these modeling inputs to their historical mean and considering loan/borrower specific attributes, our models are intended to yield a measurement of expected credit losses that reflects our average historical loss rates for periods subsequent to the reversion period.

The ACL is based on estimates, and actual losses may vary from current estimates.

28 unchanged sentences

Total Portfolio Loans

March 31, 2025

June 30, 2025

Commercial real estate:

85 unchanged sentences

Total Portfolio Loans

March 31, 2025

June 30, 2025

Commercial real estate:

77 unchanged sentences

The allowance may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan.

The following table present the amortized cost basis as of March 31, 2025 and the financial effect of loans modified to borrowers experiencing financial difficulty during the three-month period ended March 31, 2025:

The following tables present the amortized cost basis as of June 30, 2025 and the financial effect of loans modified to borrowers experiencing financial difficulty during the six- and three-month periods ended June 30, 2025 and 2024:

(in thousands)

2 unchanged sentences

Weighted Average Term and Principal Payment Extension

Three months ended March 31, 2025

Six months ended June 30, 2025

Owner-occupied commercial real estate

Commercial and industrial

There were no loan modifications made to borrowers experiencing financial difficulty during the three-month period ended March 31, 2024.

Six months ended June 30, 2024

Owner-occupied commercial real estate

(in thousands)

Term Extension

Percentage of Total Loan Type

Weighted Average Term and Principal Payment Extension

Three months ended June 30, 2025

Owner-occupied commercial real estate

Three months ended June 30, 2024

Owner-occupied commercial real estate

The Corporation monitors loan payments on performing and non-performing loans on an ongoing basis to determine if a loan is considered to have a payment default.

The borrowers for whom loan modifications were made in the three-month period ended March 31, 2025 have made all contractual payments.

If a modified loan with an outstanding balance of $ 0.1 million or greater subsequently defaults and goes on non-accrual status, then the Corporation individually evaluates the loan when performing its CECL estimate to calculate the ACL.

The borrowers for whom loan modifications were made in the six-month period ended June 30, 2025 have made all contractual payments.

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

22 unchanged sentences

The fair value of investments available-for-sale is determined using a market approach.

At March 31, 2025 and December 31, 2024, the U.S.

At June 30, 2025 and December 31, 2024, the U.S.

Government agencies and treasuries, residential and commercial mortgage-backed securities, and municipal bonds segments were classified as Level 2 within the valuation hierarchy.

Their fair values were determined based upon market-corroborated inputs and valuation matrices, which were obtained through third party data service providers or securities brokers through which we have historically transacted both purchases and sales of investment securities.

Equity investments not held for trading with readily determinable fair values consisted of money market mutual funds as of March 31, 2025 and are classified as Level 1 within the valuation hierarchy.

Equity investments not held for trading with readily determinable fair values consisted of money market mutual funds as of June 30, 2025 and are classified as Level 1 within the valuation hierarchy.

Their fair values were determined based upon daily published net asset values with which investors can freely redeem from the fund.

6 unchanged sentences

Equity investments- Equity investments included in the table below are considered are recorded with a write-down to fair value recorded in other operating expenses.

Fair value of the equity investment was based on an independent third-party valuation

report where the value was determined based on the revenue multiples of like kind information technology businesses.

Fair value of the equity investment was based on an independent third-party valuation report where the value was determined based on the revenue multiples of like kind information technology businesses.

These assets are included as Level 3 fair values based upon the lowest level of input that is significant to the fair value measurements.

3 unchanged sentences

These assets are included as Level 3 fair values based upon the lowest level of input that is significant to the fair value measurements.

For assets measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2025 and December 31, 2024 were as follows:

For assets measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2025 and December 31, 2024 were as follows:

Fair Value Measurements

at March 31, 2025 Using

at June 30, 2025 Using

Active Markets

13 unchanged sentences

Equity investment

Other real estate owned

Fair Value Measurements

17 unchanged sentences

Other real estate owned

Individually evaluated loans, with no valuation allowance, had a net carrying amount of $ 3.4 million and $ 4.4 million at March 31, 2025 and December 31, 2024, respectively.

Individually evaluated loans recorded at fair value at both March 31, 2025 and December 31, 2024 totaled $ 0.6 million, which was inclusive of $ 0.2 million in partial charge-offs.

There were no transfers of assets between any of the fair value hierarchy for the three-month periods ended March 31, 2025 or 2024.

For Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis as of March 31, 2025 and December 31, 2024, the significant unobservable inputs used in the fair value measurements were as follows:

Individually evaluated loans, with no valuation allowance, had a net carrying amount of $ 3.3 million and $ 4.4 million at June 30, 2025 and December 31, 2024, respectively.

Individually evaluated loans recorded at fair value at both June 30, 2025 and December 31, 2024 totaled $ 0.6 million, which was inclusive of $ 0.2 million in partial charge-offs recorded in the year ended December 31, 2024.

There were no transfers of assets between any of the fair value hierarchy for the six- or three-month periods ended June 30, 2025 or 2024.

For Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis as of June 30, 2025 and December 31, 2024, the significant unobservable inputs used in the fair value measurements were as follows:

(in thousands)

8 unchanged sentences

Revenue Multiples

Other real estate owned (1)

Market Comparable Properties

Marketability Discount

(1) Range would include discounts taken since appraisal and estimated values

(in thousands)

17 unchanged sentences

(1) Range would include discounts taken since appraisal and estimated values

The following tables show a reconciliation of the beginning and ending balances for fair valued assets measured on a recurring basis using Level 3 significant unobservable inputs for the three-month periods ended March 31, 2025 and 2024:

Fair Value Measurements

4 unchanged sentences

Beginning balance January 1, 2025

Total losses realized/unrealized:

Total gains realized/unrealized:

Included in other comprehensive income

Ending balance March 31, 2025

Ending balance June 30, 2025

Fair Value Measurements

4 unchanged sentences

Beginning balance January 1, 2024

Total losses realized/unrealized:

Included in other comprehensive loss

Ending balance June 30, 2024

Fair Value Measurements

Using Significant Unobservable Inputs

(in thousands)

Investment Securities

Available for Sale

Beginning balance April 1, 2025

Total gains realized/unrealized:

Included in other comprehensive income

Ending balance June 30, 2025

Fair Value Measurements

Using Significant Unobservable Inputs

(in thousands)

Investment Securities

Available for Sale

Beginning balance April 1, 2024

Total losses realized/unrealized:

Included in other comprehensive loss

Ending balance March 31, 2024

There were no gains or losses included in earnings attributable to the change in realized/unrealized gains or losses related to the assets for the three-month periods ended March 31, 2025 or 2024.

Ending balance June 30, 2024

There were no gains or losses included in earnings attributable to the change in realized/unrealized gains or losses related to the assets for the six- or three-month periods ended June 30, 2025 or 2024.

The disclosed fair values may vary significantly between institutions based on the estimates and assumptions used in the various valuation methodologies.

6 unchanged sentences

The actual carrying amounts and estimated fair values of the Corporation’s financial instruments that are included in the Consolidated Statement of Financial Condition are as follows:

March 31, 2025

June 30, 2025

Fair Value Measurements

37 unchanged sentences

Note 7 – Accumulated Other Comprehensive Loss

The following table presents the changes in each component of accumulated other comprehensive loss for the three-month periods ended March 31, 2025 and 2024:

The following table presents the changes in each component of accumulated other comprehensive loss for the six- and three-month periods ended June 30, 2025 and 2024:

(in thousands)

4 unchanged sentences

Balance - March 31, 2025

Other comprehensive income/(loss) before reclassifications

Amounts reclassified from accumulated other comprehensive income

Balance - June 30, 2025

(in thousands)

3 unchanged sentences

Balance - March 31, 2024

The following tables present the components of other comprehensive (loss)/income for the three-month periods ended March 31, 2025 and 2024:

Components of Other Comprehensive Loss

Other comprehensive (loss)/income before reclassifications

Amounts reclassified from accumulated other comprehensive loss

Balance - June 30, 2024

The following tables present the components of other comprehensive income/(loss) for the six- and three-month periods ended June 30, 2025 and 2024:

Components of Other Comprehensive Income

(in thousands)

For the three months ended March 31, 2025

For the six months ended June 30, 2025

Available for sale (AFS) securities with credit related impairment:

1 unchanged sentence

accretable yield recognized in income

Net unrealized loss on investments with credit related impairment

Net unrealized gains on investments with credit related impairment

Available for sale securities – all other:

10 unchanged sentences

Net pension plan asset adjustment

Other comprehensive loss

Components of Other Comprehensive Income

Other comprehensive income

Components of Other Comprehensive Loss

(in thousands)

For the three months ended March 31, 2024

For the six months ended June 30, 2024

Available for sale (AFS) securities with credit related impairment:

Unrealized holding gains

Unrealized holding losses

accretable yield recognized in income

Net unrealized gains on investments with credit related impairment

Net unrealized losses on investments with credit related impairment

Available for sale securities – all other:

11 unchanged sentences

Unrealized net actuarial gains

amortization of unrecognized gains

amortization of unrecognized loss

Net SERP liability adjustment

Other comprehensive loss

Components of Other Comprehensive Income

(in thousands)

For the three months ended June 30, 2025

Available for sale (AFS) securities with credit related impairment:

Unrealized holding gains

accretable yield recognized in income

Net unrealized gains on investments with credit related impairment

Available for sale securities – all other:

Unrealized holding gains

Net unrealized gains on all other AFS securities

Held to maturity securities:

Unrealized holding gains

amortization recognized in income

Net unrealized gains on HTM securities

Cash flow hedges:

Unrealized holding losses

Pension Plan:

Unrealized net actuarial gains

amortization of unrecognized loss

Net pension plan liability adjustment

Other comprehensive income

The following table presents the details of amounts reclassified from accumulated other comprehensive (loss)/income for the three-month periods ended March 31, 2025 and 2024:

Components of Other Comprehensive Loss

(in thousands)

For the three months ended June 30, 2024

Available for sale (AFS) securities with credit related impairment:

Unrealized holding losses

accretable yield recognized in income

Net unrealized losses on investments with credit related impairment

Available for sale securities – all other:

Unrealized holding losses

Net unrealized losses on all other AFS securities

Held to maturity securities:

Unrealized holding gains

amortization recognized in income

Net unrealized gains on HTM securities

Cash flow hedges:

Unrealized holding losses

Pension Plan:

Unrealized net actuarial loss

amortization of unrecognized loss

Net pension plan liability adjustment

Unrealized net actuarial loss

amortization of unrecognized gains

Net SERP liability adjustment

Other comprehensive loss

The following table presents the details of amounts reclassified from accumulated other comprehensive (loss)/income for the six- and three-month periods ended June 30, 2025 and 2024:

Amounts Reclassified from

Accumulated Other

Details of Accumulated Other Comprehensive Loss

Comprehensive Loss

Three Months Ended

Six Months Ended

Accumulated Other Comprehensive Loss

Affected Line Item in the Statement

(in thousands)

March 31, 2025

Where Net Income is Presented

10 unchanged sentences

Provision for income tax expense

Net SERP liability adjustment:

Amortization of unrecognized losses

Other Expense

Provision for income tax expense

Total reclassifications for the period

Amounts Reclassified from

Accumulated Other

Details of Accumulated Other Comprehensive Income

Comprehensive Income

Three Months Ended March 31,

Three Months Ended

Accumulated Other Comprehensive Loss

Affected Line Item in the Statement

(in thousands)

March 31, 2024

Where Net Income is Presented

6 unchanged sentences

Provision for income tax expense

Net pension plan asset adjustment:

Net pension plan liability adjustment:

Amortization of unrecognized losses

2 unchanged sentences

Net SERP liability adjustment:

Amortization of unrecognized gains

Amortization of unrecognized losses

Other expense

Provision/(credit) for income tax expense

Provision for income tax expense

Total reclassifications for the period

6 unchanged sentences

In May 2025, a total of 11,692 fully vested shares of common stock were issued to directors, which had a grant date fair value of $ 31.52 per share.

Director stock compensation expense was $ 78,573 and $ 61,937 for the three-month periods ended March 31, 2025 and 2024, respectively.

Employee stock compensation expense was $ 15,567 and $ 5,058 for the three-month periods ended March 31, 2025 and 2024, respectively.

In May 2024, a total of 14,325 fully vested shares of common stock were issued to directors, which had a grant date fair value of $ 21.94 per share.

Director stock compensation was $ 166,185 and $ 134,964 for the six-month periods ending June 30, 2025 and 2024, respectively.

Director stock compensation expense was $ 87,613 and $ 73,027 for the three-month periods ended June 30, 2025 and 2024, respectively.

Employee stock compensation was $ 18,596 and $ 5,757 for the six-month periods ended June 30, 2025 and 2024, respectively.

Employee stock compensation expense was $ 3,029 and $ 699 for the three-month periods ended June 30, 2025 and 2024, respectively.

Restricted Stock Units

14 unchanged sentences

On May 5, 2022, 1,230 shares underlying the time-vesting RSUs were issued to participants.

On May 5, 2023, 1,230 additional shares underlying the time-vesting RSUs were issued to participants.

5, 2023, 1,230 additional shares underlying the time-vesting RSUs were issued to participants.

On May 5, 2024, the remaining 1,233 shares underlying the time-vesting RSUs were issued to participants.

Stock compensation expense was $ 16,571 for the three-month period ended March 31, 2024.

Stock compensation expense was $ 7,365 for the six-month period ended June 30, 2024.

Stock compensation expense was $ 1,841 for the three-month period ended June 30, 2024.

All compensation expense related to these RSUs was recognized as of June 30, 2024.

In March 2022, the Corporation granted performance-vesting RSUs relating to 8,096 shares (target) and time-vesting RSUs relating to 6,238 shares, which had a grant date fair market value of $ 21.88 per share of common stock underlying each RSU.

The performance period for the performance-vesting RSUs is the three-year period ending December 31, 2024.

The time-vesting RSUs will vest ratably over a three-year period that began on March 9, 2022.

The performance period for the performance-vesting RSUs was the three-year period ended December 31, 2024.

The time-vesting RSUs vested ratably over a three-year period that began on March 9, 2022.

On March 9, 2023, 2,079 shares underlying the time-vesting RSUs were issued to participants.

2 unchanged sentences

In the third quarter of 2024, it was projected that the performance-vesting RSUs would not be satisfied, and the stock compensation expense was adjusted accordingly.

Stock compensation expense was $ 11,379 and $ 26,145 for each of the three-month periods ended March 31, 2025 and 2024, respectively.

All compensation expense related to these RSUs were recognized as of March 31, 2025.

Stock compensation expense was $ 26,145 and $ 55,290 for the six-month periods ended June 30, 2025 and 2024, respectively.

Stock compensation expense was $ 0 and $ 26,145 for each of the three-month periods ended June 30, 2025 and 2024, respectively.

All compensation expense related to these RSUs were recognized as of June 30, 2025.

In March 2023, the Corporation granted performance-vesting RSUs relating to 10,214 shares (target) and time-vesting RSUs relating to 7,920 shares, which had a grant date fair market value of $ 18.25 per share of common stock underlying each RSU.

3 unchanged sentences

On March 15, 2025, 2,639 shares underlying the time-vesting RSUs were issued to participants.

Stock compensation expense was $ 27,585 for both of the three-month periods ended March 31, 2025 and 2024.

Unrecognized compensation expense related to these RSUs that have not vested was $ 110,340 as of March 31, 2025.

Stock compensation expense was $ 55,170 for both the six-month periods ended June 30, 2025 and 2024.

Stock compensation expense was $ 27,585 for both of the three-month periods ended June 30, 2025 and 2024.

Unrecognized compensation expense related to these RSUs that have not vested was $ 82,755 as of June 30, 2025.

In May 2024, the Corporation granted performance-vesting RSUs relating to 8,593 shares (target) and time-vesting RSUs relating to 6,662 shares, which had a grant date fair market value of $ 22.26 per share of common stock underlying each RSU.

1 unchanged sentence

The time-vesting RSUs will vest ratably over a three-year period that began on May 20, 2024.

Stock compensation expense was $ 28,314 for the three-month

period ended March 31, 2025.

Unrecognized compensation expense related to these RSUs that have not vested was $ 245,388 as of March 31, 2025.

On May 20, 2025, 2,219 shares of the 6,602 time-vesting RSUs were issued to participants.

Stock compensation expense was $ 56,628 and $ 9,438 for the six-month periods ended June 30, 2025 and 2024, respectively.

Stock compensation expense was $ 28,314 and $ 9,438 for the three-month period ended June 30, 2025 and 2024, respectively.

Unrecognized compensation expense related to these RSUs that have not vested was $ 217,074 as of June 30, 2025.

In February 2025, the Corporation granted performance-vesting RSUs relating to 6,006 shares (target) and time-vesting RSUs relating to 4,797 shares, which had a grant date fair market value of $ 37.59 per share of common stock underlying each RSU.

1 unchanged sentence

The time-vesting RSUs will vest ratably over a three-year period beginning on February 25, 2025.

Stock compensation expense was $ 11,287 for the three-month period ended March 31, 2025.

Unrecognized compensation expense related to these RSUs that have not vested was $ 395,036 as of March 31, 2025.

Stock compensation expense was $ 45,147 for the six-month period ended June 30, 2025.

Stock compensation expense was $ 33,860 for the three-month period ended June 30, 2025.

Unrecognized compensation expense related to these RSUs that have not vested was $ 361,176 as of June 30, 2025.

Note 9– Derivative Financial Instruments

3 unchanged sentences

In March 2016, the Corporation entered into four interest rate swap contracts totaling $ 30.0 million notional amount, hedging future cash flows associated with floating rate trust preferred debt.

As of March 31, 2025, $ 15.0 million notional amount remains.

As of June 30, 2025, $ 15.0 million notional amount remains.

The interest rate swap creates an effective fixed interest rate of 4.66 % on the $ 15.0 million notional amount of the Corporation’s junior subordination debt until the interest rate swap’s maturity in March 2026.

The fair value of the interest rate swap contracts was $ 0.4 million and $ 0.5 million at March 31, 2025 and December 31, 2024, respectively.

For the three-month period ended March 31, 2025, a $ 108,000 decrease in the aggregate value of the derivatives and $ 23,000 in related deferred tax benefits was recorded in net accumulated other comprehensive income to reflect the effective portion of cash flow hedges.

This compares to a $ 73,000 increase in value and related deferred taxes of $ 19,000 for the three-months ended March 31, 2024.

ASC Subtopic 815-30 requires the net accumulated other comprehensive (loss)/income to be reclassified to earnings if the hedge becomes ineffective or is terminated.

There was no hedge ineffectiveness recorded for any of the three-month periods ended March 31, 2025 or 2024.

The fair value of the interest rate swap contracts was $ 0.3 million and $ 0.5 million at June 30, 2025 and December 31, 2024, respectively.

For the six-month period ended June 30, 2025, a $ 189,000 decrease in the aggregate value of the derivatives and $ 40,000 in related deferred tax benefits were recorded in net accumulated other comprehensive income to reflect the effective portion of cash flow hedges.

This compares to a $ 4,000 increase in value and related deferred taxes of $ 1,000 for the six-month period ended June 30, 2024.

For the three-month period ended June 30, 2025, a $ 81,000 decrease in the aggregate value of the derivatives and $ 17,000 in related deferred tax benefits were recorded in net accumulated other comprehensive income to reflect the effective portion of cash flow hedges.

This compares to a $ 69,000 decrease in the aggregate value of the derivatives and $ 18,000 in related deferred tax benefits for the three-month period ended June 30, 2024.

ASC Subtopic 815-30 requires the net accumulated other comprehensive income/(loss) to be reclassified to earnings if the hedge becomes ineffective or is terminated.

There was no hedge ineffectiveness recorded for any of the six- or three-month periods ended June 30, 2025 or 2024.

The Corporation does not expect any material losses relating to these hedges to be reclassified into earnings within the next 12 months.

Interest rate swap agreements are entered into with counterparties that meet established credit standards and the Corporation believes that the credit risk inherent in these contracts is not significant as of March 31, 2025.

The table below discloses the impact of derivative financial instruments on the Corporation’s Consolidated Financial Statements for the three-month periods ended March 31, 2025 and 2024.

Interest rate swap agreements are entered into with counterparties that meet established credit standards, and the Corporation believes that the credit risk inherent in these contracts is not significant as of June 30, 2025.

The table below discloses the impact of derivative financial instruments on the Corporation’s Consolidated Financial Statements for the six- and three-month periods ended June 30, 2025 and 2024.

Derivative in Cash Flow Hedging Relationships

15 unchanged sentences

Interest rate contracts:

Six months ended:

June 30, 2025

June 30, 2024

Three months ended:

March 31, 2025

March 31, 2024

June 30, 2025

June 30, 2024

(a) Reported as interest expense

1 unchanged sentence

Note 10 – Regulatory Capital Requirements

The following table presents the Bank’s capital ratios as of March 31, 2025 and December 31, 2024.

The following table presents the Bank’s capital ratios as of June 30, 2025 and December 31, 2024.

Total Capital (to risk-weighted assets)

2 unchanged sentences

Tier 1 Capital (to average assets)

As of March 31, 2025 and December 31, 2024, the Bank was considered “well capitalized” under the regulatory framework for prompt corrective action.

As of June 30, 2025 and December 31, 2024, the Bank was considered “well capitalized” under the regulatory framework for prompt corrective action.

Note 11 – Deposits

The following table summarizes deposits at March 31, 2025 and December 31, 2024.

The following table summarizes deposits at June 30, 2025 and December 31, 2024.

(in thousands)

March 31, 2025

June 30, 2025

December 31, 2024

8 unchanged sentences

Note 12 – Borrowed Funds

The following is a summary of borrowings at March 31, 2025 and December 31, 2024:

The following is a summary of borrowings at June 30, 2025 and December 31, 2024:

(in thousands)

6 unchanged sentences

Approximate weighted average rate during the period

Overnight borrowings, weighted average interest rate of 4.50 % at December 31, 2024

Overnight borrowings, weighted average interest rate of 4.50 % at June 30, 2025 and December 31, 2024

Long-term borrowings:

FHLB advances, bearing fixed interest rate ranging from 3.84 % to 4.04 % at March 31, 2025 and December 31, 2024.

Junior subordinated debt, bearing variable interest rate of 7.31 % at March 31, 2025 and 7.36 % at December 31, 2024

FHLB advances, bearing fixed interest rate ranging from 3.84 % to 4.04 % at June 30, 2025 and December 31, 2024.

Junior subordinated debt, bearing variable interest rate of 7.32 % at June 30, 2025 and 7.36 % at December 31, 2024

Total borrowings outstanding

Short-term borrowings decreased by $ 45.1 million as a result of the purchase of $ 50.0 million in brokered CDs to fully repay the $ 50.0 million in overnight borrowings outstanding at December 31, 2024.

This decrease was partially offset by increases in balances of the overnight investment sweep product.

At March 31, 2025, the repurchase agreements were secured by $ 28.0 million in investment securities issued by government related agencies.

At June 30, 2025, the repurchase agreements were secured by $ 28.3 million in investment securities issued by government related agencies.

A minimum of 102 % of fair value is pledged against account balances.

The following table presents contractual maturities of long-term borrowings outstanding at March 31, 2025 and December 31 2024:

March 31, 2025

The following table presents contractual maturities of long-term borrowings outstanding at June 30, 2025 and December 31, 2024:

June 30, 2025

December 31, 2024

10 unchanged sentences

Community Banking and Trust and Investment Services are delineated by the products and services that each segment offers.

Business activity for the operating segments are as follows:

Business activity for the operating segments is as follows:

Community Banking :

12 unchanged sentences

Certain prior period amounts have been reclassified to conform to the current presentation.

The Trust and Investment Services segment excludes off-balance-sheet assets under management with a total fair value of $ 1.7 billion at both March 31, 2025 and December 31 2024.

Total assets of each operating segment at March 31, 2025 and December 31, 2024 were as follows:

Total assets as of March 31, 2025

The Trust and Investment Services segment excludes off-balance-sheet assets under management with a total fair value of $ 1.7 billion at both June 30, 2025 and December 31 2024.

Total assets of each operating segment at Jun 30, 2025 and December 31, 2024 were as follows:

Total assets as of June 30, 2025

Total assets as of December 31, 2024

Information for the operating segments for the three-month periods ended March 31, 2025 and 2024 are presented in the following tables:

Information for the operating segments for the six- and three-month periods ended June 30, 2025 and 2024 is presented in the following tables:

Six Months Ended

June 30, 2025

(in thousands)

Interest income

Interest expense

Net interest income

Credit loss expense

Net interest income after credit loss expense

Other operating income:

Net gains on sales of residential mortgages

Service charges on deposit accounts

Other service charges

Trust department income

Debit card income

Brokerage commissions

Other segment income (1)

Total other operating income

Other operating expenses:

Salaries and employee benefits

Equipment and occupancy

Data processing

FDIC premiums

Other segment expenses (2)

Total operating expenses

Income before income taxes and intercompany fees

Intercompany management fee income/(expense)

Income before income taxes

Income tax expense

Significant noncash items

Credit loss expense

Amortization of intangible assets

(1) Other segment income includes bank owned life insurance income, and miscellaneous income.

(2) Other segment expenses include professional services, contract labor, telephone, investor relations, contributions, net other real estate owned (“OREO”) expense/(income), and miscellaneous expenses.

Six Months Ended

June 30, 2024

(in thousands)

Interest income

Interest expense

Net interest income

Credit loss expense

Net interest income after credit loss expense

Other operating income:

Net gains on sales of residential mortgages

Service charges on deposit accounts

Other service charges

Trust department income

Debit card income

Brokerage commissions

Other segment income (1)

Total other operating income

Other operating expenses:

Salaries and employee benefits

Equipment and occupancy

Data processing

FDIC premiums

Other segment expenses (2)

Total operating expenses

Income before income taxes and intercompany fees

Intercompany management fee income/(expense)

Income before income taxes

Income tax expense

Significant noncash items

Credit loss expense

Amortization of intangible assets

(1) Other segment income includes bank owned life insurance income, and miscellaneous income.

(2) Other segment expenses include professional services, contract labor, telephone, investor relations, contributions, net OREO expense/(income), and miscellaneous expenses.

Three Months Ended

March 31, 2025

June 30, 2025

(in thousands)

27 unchanged sentences

Amortization of intangible assets

(1) Other segment income includes net gains/(losses) on disposals of fixed assets, bank owned life insurance income, and miscellaneous income.

(2) Other segment expenses include professional services, contract labor, line rentals, investor relations, contributions, net OREO expense/(income), and miscellaneous expenses.

(1) Other segment income includes bank owned life insurance income, and miscellaneous income.

(2) Other segment expenses include professional services, contract labor, telephone, investor relations, contributions, net OREO expense/(income), and miscellaneous expenses.

Three Months Ended

March 31, 2024

June 30, 2024

(in thousands)

11 unchanged sentences

Brokerage commissions

Other segment income (1)

Total other operating income

4 unchanged sentences

FDIC premiums

Other segment expenses (2)

Total operating expenses

6 unchanged sentences

Amortization of intangible assets

(1) Other segment income includes net gains/(losses) on disposals of fixed assets, bank owned life insurance income, and miscellaneous income.

(2) Other segment expenses include professional services, contract labor, line rentals, investor relations, contributions, net OREO expense/(income), and miscellaneous expenses.

(1) Other segment income includes bank owned life insurance income, and miscellaneous income.

(2) Other segment expenses include professional services, contract labor, telephone, investor relations, contributions, net OREO expense/(income), and miscellaneous expenses.

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