What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-11-06 compared with 2025-08-07 · 201 added, 208 removed, 1084 unchanged (27% of the section changed)

4 unchanged sentences

(In Thousands, Except Number of Shares)

SEPTEMBER 30,

Interest-bearing deposits in other financial institutions

3 unchanged sentences

Mortgage loans held for sale

Loans receivable, net of allowance for credit losses of $ 64,815 – June 2025;

Loans receivable, net of allowance for credit losses of $ 64,749 – September 2025;

$ 64,760 – December 2024

20 unchanged sentences

authorized 1,000,000 shares;

issued and outstanding June 2025 and December 2024 - - 0 - shares

issued and outstanding September 2025 and December 2024 - - 0 - shares

Common stock, $ .01 par value;

authorized 20,000,000 shares;

issued and outstanding June 2025 – 11,396,533 shares;

issued and outstanding September 2025 – 11,265,937 shares;

December 2024 – 11,723,548 shares

10 unchanged sentences

THREE MONTHS ENDED

SEPTEMBER 30,

INTEREST INCOME

9 unchanged sentences

PROVISION FOR CREDIT LOSSES ON LOANS

PROVISION (CREDIT) FOR UNFUNDED COMMITMENTS

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES ON LOANS AND PROVISION (CREDIT) FOR UNFUNDED COMMITMENTS

CREDIT FOR LOSSES ON UNFUNDED COMMITMENTS

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES ON LOANS AND CREDIT FOR LOSSES ON UNFUNDED COMMITMENTS

NON-INTEREST INCOME

10 unchanged sentences

Legal, audit and other professional fees

Expense (income) on other real estate and repossessions

Income on other real estate and repossessions

Intangible asset amortization

11 unchanged sentences

(In Thousands, Except Per Share Data)

SIX MONTHS ENDED

NINE MONTHS ENDED

SEPTEMBER 30,

INTEREST INCOME

9 unchanged sentences

PROVISION FOR CREDIT LOSSES ON LOANS

PROVISION (CREDIT) FOR UNFUNDED COMMITMENTS

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES ON LOANS AND PROVISION (CREDIT) FOR UNFUNDED COMMITMENTS

CREDIT FOR LOSSES ON UNFUNDED COMMITMENTS

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES ON LOANS AND CREDIT FOR LOSSES ON UNFUNDED COMMITMENTS

NON-INTEREST INCOME

10 unchanged sentences

Legal, audit and other professional fees

Expense (income) on other real estate and repossessions

Income on other real estate and repossessions

Intangible asset amortization

12 unchanged sentences

THREE MONTHS ENDED

Unrealized appreciation (depreciation) on available-for-sale securities, net of taxes (credit) of $ 577 and $( 434 ), for 2025 and 2024, respectively

Unrealized loss on securities transferred to held-to-maturity, net of taxes (credit) of $( 17 ) and $( 12 ) for 2025 and 2024, respectively

Amortization of realized loss on termination of cash flow hedge, net of taxes (credit) of $( 463 ) and $( 463 ), for 2025 and 2024, respectively

Change in value of active cash flow hedges, net of taxes (credit) of $ 872 and $( 2 ) for 2025 and 2024, respectively

SEPTEMBER 30,

Unrealized appreciation on available-for-sale securities, net of taxes of $ 1,987 and $ 5,913 , for 2025 and 2024, respectively

Unrealized loss on securities transferred to held-to-maturity, net of credit of $( 15 ) and $( 10 ) for 2025 and 2024, respectively

Amortization of realized loss on termination of cash flow hedge, net of credit of $( 467 ) and $( 467 ), for 2025 and 2024, respectively

Change in value of active cash flow hedges, net of taxes of $ 316 and $ 3,123 for 2025 and 2024, respectively

Comprehensive Income

SIX MONTHS ENDED

Unrealized appreciation (depreciation) on available-for-sale securities, net of taxes (credit) of $ 3,067 and $( 2,216 ), for 2025 and 2024, respectively

Unrealized loss on securities transferred to held-to-maturity, net of taxes (credit) of $( 32 ) and $( 24 ) for 2025 and 2024, respectively

Amortization of realized loss on termination of cash flow hedge, net of taxes (credit) of $( 920 ) and $( 924 ), for 2025 and 2024, respectively

Change in value of active cash flow hedges, net of taxes (credit) of $ 2,236 and $( 971 ) for 2025 and 2024, respectively

NINE MONTHS ENDED

SEPTEMBER 30,

Unrealized appreciation on available-for-sale securities, net of taxes of $ 5,055 and $ 3,699 , for 2025 and 2024, respectively

Unrealized loss on securities transferred to held-to-maturity, net of credit of $( 47 ) and $( 35 ) for 2025 and 2024, respectively

Amortization of realized loss on termination of cash flow hedge, net of credit of $( 1,387 ) and $( 1,391 ), for 2025 and 2024, respectively

Change in value of active cash flow hedges, net of taxes of $ 2,551 and $ 2,151 for 2025 and 2024, respectively

Comprehensive Income

4 unchanged sentences

(In Thousands, Except Per Share Data)

THREE MONTHS ENDED JUNE 30, 2025

THREE MONTHS ENDED SEPTEMBER 30, 2025

Comprehensive

1 unchanged sentence

Income (Loss)

Balance, March 31, 2025

Balance, June 30, 2025

Stock issued under Stock Option Plan

1 unchanged sentence

Change in fair value of cash flow hedges

Change in unrealized loss on held-to-maturity securities

Change in unrealized gain on available-for-sale securities

Change in fair value of held-to-maturity securities

Change in fair value of available-for-sale securities

Repurchase of the Company’s common stock

Reclassification of treasury stock per Maryland law

Balance, June 30, 2025

THREE MONTHS ENDED JUNE 30, 2024

Balance, September 30, 2025

THREE MONTHS ENDED SEPTEMBER 30, 2024

Comprehensive

1 unchanged sentence

Income (Loss)

Balance, March 31, 2024

Balance, June 30, 2024

Stock issued under Stock Option Plan

1 unchanged sentence

Change in fair value of cash flow hedges

Change in unrealized loss on held-to-maturity securities

Change in unrealized loss on available-for-sale securities

Change in fair value of held-to-maturity securities

Change in fair value of available-for-sale securities

Repurchase of the Company’s common stock

Reclassification of treasury stock per Maryland law

Balance, June 30, 2024

Balance, September 30, 2024

See Notes to Consolidated Financial Statements

3 unchanged sentences

(In Thousands, Except Per Share Data)

SIX MONTHS ENDED JUNE 30, 2025

NINE MONTHS ENDED SEPTEMBER 30, 2025

Comprehensive

5 unchanged sentences

Change in fair value of cash flow hedges

Change in unrealized loss on held-to-maturity securities

Change in unrealized gain on available-for-sale securities

Change in fair value of held-to-maturity securities

Change in fair value of available-for-sale securities

Purchase of the Company’s common stock

Reclassification of treasury stock per Maryland law

Balance, June 30, 2025

SIX MONTHS ENDED JUNE 30, 2024

Balance, September 30, 2025

NINE MONTHS ENDED SEPTEMBER 30, 2024

Comprehensive

6 unchanged sentences

Change in fair value of cash flow hedges

Change in unrealized loss on held-to-maturity securities

Change in unrealized loss on available-for-sale securities

Change in fair value of held-to-maturity securities

Change in fair value of available-for-sale securities

Purchase of the Company’s common stock

Reclassification of treasury stock per Maryland law

Balance, June 30, 2024

Balance, September 30, 2024

See Notes to Consolidated Financial Statements

3 unchanged sentences

(In Thousands)

SIX MONTHS ENDED

NINE MONTHS ENDED

SEPTEMBER 30,

CASH FLOWS FROM OPERATING ACTIVITIES

7 unchanged sentences

Net (gain) loss on sale of premises and equipment

Net (gain) loss on sale/write-down of other real estate owned and repossessions

Net gain on sale/write-down of other real estate owned and repossessions

Accretion of deferred income, premiums, discounts and other

20 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES

Net increase (decrease) in certificates of deposit

Net decrease in certificates of deposit

Net increase (decrease) in checking and savings deposits

20 unchanged sentences

Those adjustments consist only of normal recurring adjustments.

Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the full year.

Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the full year.

The consolidated statement of financial condition of the Company as of December 31, 2024, has been derived from the audited consolidated statement of financial condition of the Company as of that date.

15 unchanged sentences

RECENT ACCOUNTING PRONOUNCEMENTS

In March 2023, the FASB issued ASU 2023-02, Investments – Equity Method and Joint Ventures (Topic 323):

Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method .

ASU 2023-02 is intended to improve the accounting and disclosures for investments in tax credit structures.

ASU 2023-02 allows entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits.

Previously, this method was only available for qualifying tax equity investments in low-income housing tax credit structures.

Currently, the Company does not have a material amount of tax credit structures, other than low-income housing tax credit structures.

The adoption of ASU 2023-02 did not have a material impact on the Company’s consolidated financial statements and resulted in a reduction of retained earnings of $ 223,000 upon adoption on January 1, 2024.

In November 2023, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

ASU 2023-07 expands reportable segment disclosure requirements through enhanced disclosures about significant segment expenses.

ASU 2023-07 implements a new requirement to disclose significant segment expenses regularly provided to the chief operating decision maker, expands certain annual disclosures to interim periods, clarifies that single reportable segment entities must apply Topic 280 in its entirety and permits more than one measure of segment profit or loss to be reported under certain conditions.

ASU 2023-07 became effective for the Company for our annual financial statements in 2024.

See Note 17 – Operating Segments.

In December 2023, the FASB issued ASU No.

2 unchanged sentences

ASU 2023-09 is focused on additional income tax disclosures and requires public business entities, on an annual basis, to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income by the applicable statutory income tax rate).

ASU 2023-09 became effective for the Company beginning with the fiscal year ending December 31, 2025.

ASU 2023-09 became effective for the Company beginning with the fiscal year ending December 31, 2025 and did not have a material impact on the Company’s consolidated financial statements.

In November 2024, the FASB issued ASU No.

8 unchanged sentences

EARNINGS PER SHARE

Three Months Ended June 30,

Three Months Ended September 30,

(In Thousands, Except Per Share Data)

5 unchanged sentences

Per common share amount

Six Months Ended June 30,

Nine Months Ended September 30,

(In Thousands, Except Per Share Data)

5 unchanged sentences

Per common share amount

Options outstanding at June 30, 2025 and 2024, to purchase 835,549 and 741,708 shares of common stock, respectively, were not included in the computation of diluted earnings per common share for each of the three- and six-month periods then ended because the exercise prices of such options were greater than the average market price of the common stock for the three- and six-months ended June 30, 2025 and 2024, respectively.

Options outstanding at September 30, 2025 and 2024, to purchase 715,362 and 712,403 shares of common stock, respectively, were not included in the computation of diluted earnings per common share for each of the three- and nine-month periods then ended because the exercise prices of such options were greater than the average market price of the common stock for the three- and nine-months ended September 30, 2025 and 2024, respectively.

INVESTMENT SECURITIES

Available-for-sale securities (“AFS”), which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value.

Realized gains and losses, based on specifically identified amortized cost of the individual security, are included in non-interest income.

Realized gains and losses, based on the specifically identified amortized cost of the individual security, are included in non-interest income.

Unrealized gains and losses are recorded, net of related income tax effects, in stockholders’ equity.

7 unchanged sentences

The amortized cost and fair values of securities were as follows:

June 30, 2025

September 30, 2025

(In Thousands)

4 unchanged sentences

Small Business Administration securities

June 30, 2025

September 30, 2025

(In Thousands)

16 unchanged sentences

States and political subdivisions

The amortized cost and fair value of available-for-sale and held-to-maturity securities at June 30, 2025, by contractual maturity, are shown below.

The amortized cost and fair value of available-for-sale and held-to-maturity securities at September 30, 2025, by contractual maturity, are shown below.

Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

12 unchanged sentences

Certain available-for-sale investments in debt securities are reported in the financial statements at an amount less than their amortized cost.

The total fair value of these investments at June 30, 2025 and December 31, 2024, was approximately $ 469.2 million and $ 523.9 million, respectively, which was approximately 88.9 % and 98.2 % of the Company’s total available-for-sale investment portfolio at those dates.

The total fair value of these investments at September 30, 2025 and December 31, 2024, was approximately $ 418.0 million and $ 523.9 million, respectively, which was approximately 78.7 % and 98.2 % of the Company’s total available-for-sale investment portfolio at those dates.

A high percentage of the unrealized losses were related to the Company’s mortgage-backed securities, collateralized mortgage obligations and Small Business Administration (SBA) securities, which are issued and guaranteed by U.S.

1 unchanged sentence

The Company’s state and political subdivisions securities are investments in insured fixed rate municipal bonds for which the issuers continue to make timely principal and interest payments under the contractual terms of the securities.

Held-to-maturity investments in debt securities are reported in the financial statements at their amortized carrying value at June 30, 2025 and December 31, 2024, which was $ 183.1 million and $ 187.4 million, respectively.

Total fair value of these investments at June 30, 2025 and December 31, 2024 was approximately $ 163.8 million and $ 162.8 million, respectively, which is 100.0 % of the Company’s held-to-maturity investment portfolio.

Held-to-maturity investments in debt securities are reported in the financial statements at their amortized carrying value at September 30, 2025 and December 31, 2024, which was $ 181.3 million and $ 187.4 million, respectively.

Total fair value of these investments at September 30, 2025 and December 31, 2024 was approximately $ 163.6 million and $ 162.8 million, respectively, which is 100.0 % of the Company’s held-to-maturity investment portfolio.

Held-to-maturity investment securities are evaluated for potential losses under ASU 2016-13.

The Company continually assesses its liquidity sources, both on-balance sheet and off-balance sheet, and believes that at June 30, 2025, it had ample liquidity sources to fund its ongoing operations without selling investment securities in this portfolio.

The Company continually assesses its liquidity sources, both on-balance sheet and off-balance sheet, and believes that at September 30, 2025, it had ample liquidity sources to fund its ongoing operations without selling investment securities in this portfolio.

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings of issuers, management believes the declines in fair value for the Company’s available-for-sale debt securities are not credit related.

The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2025 and December 31, 2024:

June 30, 2025

September 30, 2025

Less than 12 Months

25 unchanged sentences

States and political subdivisions securities

There were no sales of available-for-sale securities during the three or six months ended June 30, 2025 or June 30, 2024, respectively.

There were no sales of available-for-sale securities during the three or nine months ended September 30, 2025 or September 30, 2024, respectively.

Allowance for Credit Losses.

The Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses in accordance with ASC 326, Measurement of Credit Losses on Financial Instruments .

All of the mortgage-backed, collateralized mortgage, and SBA securities held by the Company as of June 30, 2025 were issued by U.S.

All of the mortgage-backed, collateralized mortgage, and SBA securities held by the Company as of September 30, 2025 were issued by U.S.

government-sponsored entities and agencies.

13 unchanged sentences

It also applies to off-balance sheet credit exposures not accounted for as insurance, including loan commitments, standby letters of credits, financial guarantees, and other similar instruments.

Classes of loans at June 30, 2025 and December 31, 2024 were as follows:

Classes of loans at September 30, 2025 and December 31, 2024 were as follows:

September 30,

(In Thousands)

15 unchanged sentences

Classes of loans by aging were as follows, as of the dates indicated.

June 30, 2025

September 30, 2025

> 90 Days Past

35 unchanged sentences

Nonaccruing loans are summarized as follows:

September 30,

(In Thousands)

12 unchanged sentences

Total nonaccruing loans

During the three and six months ended June 30, 2025, the Company recorded $ 115,000 in interest income related to recoveries on nonaccrual loans.

No interest income was recorded on nonaccrual loans for the three or six months ended June 30, 2024.

Nonaccrual loans for which there is no related allowance for credit losses as of June 30, 2025 and December 31, 2024, had an amortized cost of $ 1.9 million and $ 2.2 million, respectively.

During the three and nine months ended September 30, 2025, the Company recorded $ 74,000 and $ 189,000 , respectively, in interest income related to recoveries on nonaccrual loans.

No interest income was recorded on nonaccrual loans for the three or nine months ended September 30, 2024.

Nonaccrual loans for which there is no related allowance for credit losses as of September 30, 2025 and December 31, 2024, had an amortized cost of $ 1.7 million and $ 2.2 million, respectively.

These loans were individually assessed and did not require an allowance due to being adequately collateralized under the collateral-dependent valuation method at those dates.

1 unchanged sentence

Collateral-dependent loans are identified primarily by a classified risk rating with a loan balance equal to or greater than $ 100,000 , including, but not limited to, any loan in the process of foreclosure or repossession.

The following table presents the activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2025 and 2024.

During the three and six months ended June 30, 2025, the Company did no t record a provision expense on its portfolio of outstanding loans.

During the three months ended June 30, 2024, the Company did no t record a provision expense on its portfolio of outstanding loans and during the six months ended June 30, 2024, the Company recorded provision expense of $ 500,000 on its portfolio of outstanding loans.

The following table presents the activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2025 and 2024.

During the three and nine months ended September 30, 2025, the Company did no t record a provision expense on its portfolio of outstanding loans.

During the three months ended September 30, 2024, the Company recorded provision expense of $ 1.2 million on its portfolio of outstanding loans and during the nine months ended September 30, 2024, the Company recorded provision expense of $ 1.7 million on its portfolio of outstanding loans.

One- to Four-

2 unchanged sentences

Allowance for credit losses

Balance, March 31, 2024

Balance, June 30, 2024

Provision (credit) charged to expense

Losses charged off

Balance, June 30, 2024

Balance, September 30, 2024

Allowance for credit losses

Balance, March 31, 2025

Balance, June 30, 2025

Provision (credit) charged to expense

Losses charged off

Balance, June 30, 2025

Balance, September 30, 2025

One- to Four-

5 unchanged sentences

Losses charged off

Balance, June 30, 2024

Balance, September 30, 2024

Allowance for credit losses

2 unchanged sentences

Losses charged off

Balance, June 30, 2025

The following table presents the activity in the allowance for unfunded commitments by portfolio segment for the three and six months ended June 30, 2025 and 2024.

The provision for losses on unfunded commitments for the three months ended June 30, 2025 was a credit (negative expense) of $ 110,000 , compared to a credit (negative expense) of $ 607,000 for the three months ended June 30, 2024.

The provision for losses on unfunded commitments for the six months ended June 30, 2025 was a credit (negative expense) of $ 458,000 , compared to a credit (negative expense) of $ 477,000 for the six months ended June 30, 2024.

Balance, September 30, 2025

The following table presents the activity in the allowance for unfunded commitments by portfolio segment for the three and nine months ended September 30, 2025 and 2024.

The provision for losses on unfunded commitments for the three months ended September 30, 2025 was a credit (negative expense) of $ 379,000 , compared to a credit (negative expense) of $ 63,000 for the three months ended September 30, 2024.

The provision for losses on unfunded commitments for the nine months ended September 30, 2025 was a credit (negative expense) of $ 837,000 , compared to a credit (negative expense) of $ 540,000 for the nine months ended September 30, 2024.

One- to Four-

2 unchanged sentences

Allowance for unfunded commitments

Balance, March 31, 2024

Provision (credit) charged to expense

Balance, June 30, 2024

Allowance for unfunded commitments

Balance, March 31, 2025

Provision (credit) charged to expense

Balance, September 30, 2024

Allowance for unfunded commitments

Balance, June 30, 2025

Provision (credit) charged to expense

Balance, September 30, 2025

One- to Four-

4 unchanged sentences

Provision (credit) charged to expense

Balance, June 30, 2024

Balance, September 30, 2024

Allowance for unfunded commitments

1 unchanged sentence

Provision (credit) charged to expense

Balance, June 30, 2025

Balance, September 30, 2025

The portfolio segments used in the preceding tables correspond to the loan classes used in all other tables in Note 6 as follows:

6 unchanged sentences

The following table presents the amortized cost basis of collateral-dependent loans by class of loans:

June 30, 2025

September 30, 2025

December 31, 2024

19 unchanged sentences

If necessary, the loan is charged down to fair market value less estimated sales costs.

The following tables show, as of the dates indicated, the composition of modifications made to loans to borrowers experiencing financial difficulty, by the loan class and type of concession granted.

During the three and six months ended June 30, 2025, principal forgiveness of $ 0 and $ 7,000 , respectively, was completed on consumer loans.

During the three and six months ended June 30, 2024, principal forgiveness of $ 241,000 and $ 255,000 , respectively, was completed on consumer loans and a land development loan.

Amortized Cost Basis at June 30, 2025

Interest Rate

Modifications

(In Thousands)

Construction and land development

One- to four-family residential

Other residential (multi-family)

Commercial real estate

Commercial business

The following table shows, as of the date indicated, the composition of modifications made to loans to borrowers experiencing financial difficulty, by the loan class and type of concession granted.

There were no such modifications during the nine months ended September 30, 2025.

During the three and nine months ended September 30, 2025, principal forgiveness of $ 27,000 and $ 34,000 , respectively, was completed on consumer loans.

During the three and nine months ended September 30, 2024, principal forgiveness of $ 20,000 and $ 275,000 , respectively, was completed on consumer loans and a land development loan.

Amortized Cost Basis at December 31, 2024

8 unchanged sentences

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

The following tables depict the performance of loans (under modified terms) at June 30, 2025 and at December 31, 2024, respectively:

June 30, 2025

(In Thousands)

Construction and land development

One- to four-family residential

Other residential (multi-family)

Commercial real estate

Commercial business

The following table depicts the performance of loans (under modified terms) at December 31, 2024.

There were no such loans at September 30, 2025.

December 31, 2024

29 unchanged sentences

In addition to the regular monitoring performed by the lending personnel and credit committees, loans are subject to review by the credit review department, which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan.

The following tables present a summary of loans by category and risk rating separated by origination and loan class as of June 30, 2025 and December 31, 2024.

The following tables present a summary of loans by category and risk rating separated by origination and loan class as of September 30, 2025 and December 31, 2024.

Term Loans by Origination Year

June 30, 2025

September 30, 2025

(In Thousands)

101 unchanged sentences

Periodically, the Company has invested in certain limited partnerships that were formed to develop and operate apartments and single-family houses designed as high-quality affordable housing for lower income tenants throughout Missouri and contiguous states (“Affordable Housing Partnerships”).

At June 30, 2025, the Company had 21 such investments, with a net carrying value of $ 100.9 million.

At September 30, 2025, the Company had 21 such investments, with a net carrying value of $ 99.7 million.

At December 31, 2024, the Company had 23 such investments, with a net carrying value of $ 98.8 million.

2 unchanged sentences

If the partnerships cease to qualify during the compliance period, the credits may be denied for any period in which the projects are not in compliance and a portion of the credits previously taken may be subject to recapture with interest.

The remaining federal affordable housing tax credits to be utilized through 2034 were $ 99.7 million as of June 30, 2025, assuming no tax credit recapture events occur and all projects currently under construction are completed as planned.

The remaining federal affordable housing tax credits to be utilized through 2034 were $ 96.5 million as of September 30, 2025, assuming no tax credit recapture events occur and all projects currently under construction are completed as planned.

Amortization of the investments in partnerships is expected to be approximately $ 86.5 million, assuming all projects currently under construction are completed and funded as planned.

The Company’s usage of federal affordable housing tax credits approximated $ 3.2 million and $ 2.8 million during the three months ended June 30, 2025 and 2024, respectively.

Investment amortization was $ 2.7 million for the three months ended June 30, 2025, compared to $ 2.5 million for the three months ended June 30, 2024.

The Company’s usage of federal affordable housing tax credits approximated $ 6.4 million and $ 5.6 million during the six months ended June 30, 2025 and 2024, respectively.

Investment amortization was $ 5.6 million for the six months ended June 30, 2025, compared to $ 5.1 million for the six months ended June 30, 2024.

The Company’s usage of federal affordable housing tax credits approximated $ 3.2 million and $ 2.8 million during the three months ended September 30, 2025 and 2024, respectively.

Investment amortization was $ 3.1 million for the three months ended September 30, 2025, compared to $ 2.5 million for the three months ended September 30, 2024.

The Company’s usage of federal affordable housing tax credits approximated $ 9.6 million and $ 8.4 million during the nine months ended September 30, 2025 and 2024, respectively.

Investment amortization was $ 8.7 million for the nine months ended September 30, 2025, compared to $ 7.6 million for the nine months ended September 30, 2024.

Investments in Community Development Entities

From time to time, the Company has invested in certain limited partnerships that were formed to develop and operate business and real estate projects located in low-income communities.

At June 30, 2025, the Company had one such investment, with a net carrying value of $ 149,000 .

At September 30, 2025, the Company had one such investment, with a net carrying value of $ 125,000 .

At December 31, 2024, the Company had one such investment, with a net carrying value of $ 199,000 .

5 unchanged sentences

The investments in the community development entities cannot be redeemed before the end of the seven-year period.

The Company’s usage of federal new market tax credits approximated $ 30,000 during both the three months ended June 30, 2025 and the three months ended June 30, 2024.

Investment amortization amounted to $ 25,000 for both the three months ended June 30, 2025 and the three months ended June 30, 2024.

The Company’s usage of federal new market tax credits approximated $ 60,000 during both the six months ended June 30, 2025 and the six months ended June 30, 2024.

Investment amortization amounted to $ 50,000 for both the six months ended June 30, 2025 and the six months ended June 30, 2024.

The Company’s usage of federal new market tax credits approximated $ 30,000 during both the three months ended September 30, 2025 and the three months ended September 30, 2024.

Investment amortization amounted to $ 25,000 for both the three months ended September 30, 2025 and the three months ended September 30, 2024.

The Company’s usage of federal new market tax credits approximated $ 90,000 during both the nine months ended September 30, 2025 and the nine months ended September 30, 2024.

Investment amortization amounted to $ 75,000 and $ 50,000 for the nine months ended September 30, 2025 and the nine months ended September 30, 2024, respectively.

Upon adoption of ASU 2023-02 on January 1, 2024, the Company recorded a reduction in the investment in these new market tax credits, with a corresponding reduction in retained earnings, of $ 62,000 .

1 unchanged sentence

From time to time, the Company has invested in certain limited partnerships that were formed to provide certain federal rehabilitation/historic tax credits.

At June 30, 2025 and December 31, 2024, the Company had no such investments, with the previous investment fully amortizing during 2024.

At September 30, 2025 and December 31, 2024, the Company had no such investments, with the previous investment fully amortizing during 2024.

Under current tax law, such partnerships provide federal rehabilitation/historic tax credits over a five-year credit allowance period.

The Company’s usage of certain federal rehabilitation/historic tax credits approximated $- 0 - and $ 76,000 during the three months ended June 30, 2025 and 2024, respectively.

Investment amortization amounted to $- 0 - and $ 64,000 for the three months ended June 30, 2025 and 2024, respectively.

The Company’s usage of certain federal rehabilitation/historic tax credits approximated $- 0 - and $ 152,000 during the six months ended June 30, 2025 and 2024, respectively.

Investment amortization amounted to $- 0 - and $ 127,000 for the six months ended June 30, 2025 and 2024, respectively.

The Company’s usage of certain federal rehabilitation/historic tax credits approximated $ 75,000 and $ 76,000 during the three months ended September 30, 2025 and the three months ended September 30, 2024, respectively.

Investment amortization amounted to $- 0 - and $ 64,000 for the three months ended September 30, 2025 and the three months ended September 30, 2024, respectively.

The Company’s usage of certain federal rehabilitation/historic tax credits approximated $ 225,000 and $ 228,000 during the nine months ended September 30, 2025 and nine months ended September 30, 2024, respectively.

Investment amortization amounted to $- 0 - and $ 191,000 for the nine months ended September 30, 2025 and the nine months ended September 30, 2024, respectively.

Upon adoption of ASU 2023-02 on January 1, 2024, the Company recorded a reduction in the investment in these rehabilitation/historic tax credits, with a corresponding reduction in retained earnings, of $ 161,000 .

4 unchanged sentences

Major classifications of other real estate owned were as follows:

September 30,

(In Thousands)

11 unchanged sentences

Other real estate owned and repossessions

At June 30, 2025 and December 31, 2024, there was no other real estate owned not acquired through foreclosure.

At June 30, 2025 and December 31, 2024, residential mortgage loans totaling $ 70,000 and $ 12,000 , respectively, were in the process of foreclosure.

At September 30, 2025 and December 31, 2024, there was no other real estate owned not acquired through foreclosure.

At September 30, 2025, no residential mortgage loans were in the process of foreclosure compared to mortgage loans in the process of foreclosure totaling $ 12,000 at December 31, 2024.

Expenses (income) applicable to other real estate owned and repossessions included the following:

Three Months Ended

September 30,

(In Thousands)

2 unchanged sentences

Operating expenses (income), net of rental income

Six Months Ended

Nine Months Ended

September 30,

(In Thousands)

4 unchanged sentences

Major classifications of premises and equipment, stated at cost, were as follows:

September 30,

(In Thousands)

5 unchanged sentences

The amount of the right of use asset and corresponding lease liability will fluctuate based on the Company’s lease terminations, new leases and lease modifications and renewals.

As of June 30, 2025, the lease right of use asset value was $ 5.9 million and the corresponding lease liability was $ 6.1 million.

As of September 30, 2025, the lease right of use asset value was $ 5.6 million and the corresponding lease liability was $ 5.8 million.

As of December 31, 2024, the lease right of use asset value was $ 6.4 million and the corresponding lease liability was $ 6.6 million.

At June 30, 2025, expected lease terms ranged from 2.1 years to 13.4 years with a weighted-average lease term of 6.5 years.

The weighted-average discount rate at June 30, 2025 was 3.99 %.

For the three months ended June 30, 2025 and 2024, total lease expense was $ 402,000 and $ 413,000 , respectively.

For the six months ended June 30, 2025 and 2024, total lease expense was $ 821,000 and $ 895,000 , respectively.

At September 30, 2025, expected lease terms ranged from 1.8 years to 13.2 years with a weighted-average lease term of 6.3 years.

The weighted-average discount rate at September 30, 2025 was 3.99 %.

For the three months ended September 30, 2025 and 2024, total lease expense was $ 433,000 and $ 408,000 , respectively.

For both the nine months ended September 30, 2025 and 2024, total lease expense was $ 1.3 million.

The Company’s short-term leases related to offsite ATMs have both fixed and variable lease payment components, based on the number of transactions at the various ATMs.

The variable portion of these lease payments is not material and the lease expense related to ATMs for the three months ended June 30, 2025 and 2024 was $ 79,000 and $ 90,000 , respectively.

The lease expense related to ATMs for the six months ended June 30, 2025 and 2024 was $ 156,000 and $ 171,000 , respectively.

The variable portion of these lease payments is not material and the lease expense related to ATMs for the three months ended September 30, 2025 and 2024 was $ 82,000 and $ 87,000 , respectively.

The lease expense related to ATMs for the nine months ended September 30, 2025 and 2024 was $ 237,000 and $ 258,000 , respectively.

The Company does not sublease any of its leased facilities;

1 unchanged sentence

In terms of being the lessor in these circumstances, all of these lease agreements are classified as operating leases.

In the three months ended June 30, 2025 and 2024, income recognized from these lease agreements was $ 358,000 and $ 339,000 , respectively, and was included in occupancy and equipment expense.

In the six months ended June 30, 2025 and 2024, income recognized from these lease agreements was $ 678,000 and $ 680,000 , respectively, and was included in occupancy and equipment expense.

June 30, 2025

In the three months ended September 30, 2025 and 2024, income recognized from these lease agreements was $ 369,000 and $ 303,000 , respectively, and was included in occupancy and equipment expense.

In the nine months ended September 30, 2025 and 2024, income recognized from these lease agreements was $ 1.0 million and $ 984,000 , respectively, and was included in occupancy and equipment expense.

September 30, 2025

December 31, 2024

4 unchanged sentences

For the Three Months Ended

June 30, 2025

June 30, 2024

September 30, 2025

September 30, 2024

(In Thousands)

6 unchanged sentences

Operating leases

For the Six Months Ended

June 30, 2025

June 30, 2024

For the Nine Months Ended

September 30, 2025

September 30, 2024

(In Thousands)

6 unchanged sentences

Operating leases

At June 30, 2025, future expected lease payments for leases with terms exceeding one year were as follows (in thousands):

At September 30, 2025, future expected lease payments for leases with terms exceeding one year were as follows (in thousands):

Future lease payments expected

2 unchanged sentences

Weighted Average

September 30,

Interest Rate

13 unchanged sentences

The Bank utilizes brokered deposits as an additional funding source.

The aggregate amount of brokered deposits was approximately $ 833.3 million and $ 772.1 million at June 30, 2025 and December 31, 2024, respectively.

At both June 30, 2025 and December 31, 2024, brokered deposits included $ 300.0 million of purchased funds through the IntraFi Financial network.

The aggregate amount of brokered deposits was approximately $ 680.0 million and $ 772.1 million at September 30, 2025 and December 31, 2024, respectively.

At both September 30, 2025 and December 31, 2024, brokered deposits included $ 300.0 million of purchased funds through the IntraFi Financial network.

These IntraFi Financial deposits have a rate of interest that floats daily with an index of effective federal funds rate plus a spread.

At June 30, 2025, there were brokered deposits totaling $ 99.7 million that had fixed rates of interest but were callable at the Bank’s discretion.

At June 30, 2025, approximately 35 % of the Company’s total deposits were uninsured, when including deposit accounts of consolidated subsidiaries of the Company and collateralized deposits of unaffiliated entities.

Excluding deposit accounts of the Company’s consolidated subsidiaries, approximately 15 % of the Company’s total deposits were uninsured at June 30, 2025.

At September 30, 2025, approximately 37 % of the Company’s total deposits were uninsured, when including deposit accounts of consolidated subsidiaries of the Company and collateralized deposits of unaffiliated entities.

Excluding deposit accounts of the Company’s consolidated subsidiaries, approximately 16 % of the Company’s total deposits were uninsured at September 30, 2025.

ADVANCES FROM FEDERAL HOME LOAN BANK

At June 30, 2025 and December 31, 2024, there were no outstanding term advances from the Federal Home Loan Bank of Des Moines.

At June 30, 2025 and December 31, 2024, there were outstanding overnight borrowings from the Federal Home Loan Bank of Des Moines, which are included in Note 12 below.

At September 30, 2025 and December 31, 2024, there were no outstanding term advances from the Federal Home Loan Bank of Des Moines.

At September 30, 2025 and December 31, 2024, the Company did have outstanding overnight borrowings from the Federal Home Loan Bank of Des Moines, which are included in Note 12 below.

The Bank has pledged FHLB stock, investment securities and first mortgage loans free of other pledges, liens and encumbrances as collateral for outstanding advances or borrowings.

At June 30, 2025, investment securities with carrying values of approximately $ 292.5 million and loans with carrying values of approximately $ 2.17 billion were pledged as collateral for FHLB borrowings, which equates to an advance equivalent of $ 1.59 billion.

At September 30, 2025, investment securities with carrying values of approximately $ 290.2 million and loans with carrying values of approximately $ 2.08 billion were pledged as collateral for FHLB borrowings, which equates to an advance equivalent of $ 1.54 billion.

At December 31, 2024 investment securities with carrying values of approximately $ 110.4 million and loans with carrying values of approximately $ 2.12 billion were pledged as collateral for outstanding advances or borrowings, which equates to an advance equivalent of $ 1.39 billion.

The Bank had $ 1.22 billion remaining available on its line of credit under a borrowing arrangement with the FHLB of Des Moines at June 30, 2025.

The Bank had $ 1.11 billion remaining available on its line of credit under a borrowing arrangement with the FHLB of Des Moines at September 30, 2025.

SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS AND SHORT-TERM BORROWINGS

September 30,

(In Thousands)

6 unchanged sentences

The line was secured primarily by the Bank’s held-to-maturity investment securities, with assets pledged totaling approximately $ 187.7 million as of December 31, 2024.

As of June 30, 2025, the Company had no outstanding borrowings from the Federal Reserve Bank.

As of September 30, 2025, the Company had no outstanding borrowings from the Federal Reserve Bank.

The Bank enters into sales of securities under agreements to repurchase (reverse repurchase agreements).

5 unchanged sentences

These securities contractually mature daily.

September 30,

(In Thousands)

6 unchanged sentences

On June 15, 2025, in accordance with the terms of the notes, the Company redeemed all $ 75.0 million aggregate principal amount of the subordinated notes at a redemption price equal to 100 % of their principal amount, plus accrued and unpaid interest.

Amortization of the debt issuance costs during the three months ended June 30, 2025 and 2024, totaled $ 50,000 and $ 74,000 , respectively.

Amortization of the debt issuance costs during the six months ended June 30, 2025 and 2024, totaled $ 124,000 and $ 148,000 , respectively.

At June 30, 2025 and December 31, 2024, subordinated notes were as follows:

Amortization of the debt issuance costs during the three months ended September 30, 2025 and 2024, totaled $ 0 and $ 74,000 , respectively.

Amortization of the debt issuance costs during the nine months ended September 30, 2025 and 2024, totaled $ 124,000 and $ 223,000 , respectively.

At September 30, 2025 and December 31, 2024, subordinated notes were as follows:

September 30,

(In Thousands)

6 unchanged sentences

Reconciliations of the Company’s effective tax rates to the statutory corporate tax rates were as follows:

Three Months Ended June 30,

Three Months Ended

September 30, 2025

September 30, 2024

(In Thousands)

4 unchanged sentences

State income or franchise taxes

Six Months Ended June 30,

Nine Months Ended

September 30, 2025

September 30, 2024

(In Thousands)

4 unchanged sentences

State income or franchise taxes

During the six months ended June 30, 2025, the Company paid U.S.

federal income taxes totaling $ 3.0 million and paid taxes to various state jurisdictions totaling $ 649,000 .

During the nine months ended September 30, 2025, the Company paid U.S.

federal income taxes totaling $ 3.0 million and paid taxes to various state jurisdictions totaling $ 1.1 million.

There were no payments to any individual state jurisdiction exceeding five percent of taxable income.

2 unchanged sentences

As a result, federal tax years through December 31, 2020 are now closed.

In addition, there were no pending audits by any state jurisdiction at June 30, 2025.

In addition, there were no pending audits by any state jurisdiction at September 30, 2025.

DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

14 unchanged sentences

Recurring Measurements

The following table presents the fair value measurements of assets recognized in the accompanying statements of financial condition measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fell at June 30, 2025 and December 31, 2024:

Fair value measurements using

2 unchanged sentences

(In Thousands)

June 30, 2025

September 30, 2025

Available-for-sale securities

13 unchanged sentences

Interest rate derivative liability

The following is a description of inputs and valuation methodologies used for assets recorded at fair value on a recurring basis and recognized in the accompanying statements of financial condition at June 30, 2025 and December 31, 2024 as well as the general classification of such assets pursuant to the valuation hierarchy.

There were no significant changes in the valuation techniques during the six-month period ended June 30, 2025.

The following is a description of inputs and valuation methodologies used for assets recorded at fair value on a recurring basis and recognized in the accompanying statements of financial condition at September 30, 2025 and December 31, 2024 as well as the general classification of such assets pursuant to the valuation hierarchy.

There were no significant changes in the valuation techniques during the nine-month period ended September 30, 2025.

Available-for-Sale Securities.

5 unchanged sentences

Additional inputs include indicative values derived from the independent pricing service’s proprietary computerized models.

There were no recurring Level 3 securities at June 30, 2025 or December 31, 2024.

There were no recurring Level 3 securities at September 30, 2025 or December 31, 2024.

Interest Rate Derivatives.

1 unchanged sentence

Nonrecurring Measurements

The following tables present the fair value measurements of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the measurements fell at June 30, 2025 and December 31, 2024:

Fair Value Measurements Using

2 unchanged sentences

(In Thousands)

June 30, 2025

September 30, 2025

Collateral-dependent loans

9 unchanged sentences

The Company typically does not have commercial loans held for sale.

At June 30, 2025 and December 31, 2024, the aggregate fair value of mortgage loans held for sale was not materially different than their cost.

At September 30, 2025 and December 31, 2024, the aggregate fair value of mortgage loans held for sale was not materially different than their cost.

Accordingly, no mortgage loans held for sale were marked down and reported at fair value.

2 unchanged sentences

If a loan’s fair value as estimated by the Company is less than its carrying value, the Company either records a charge-off of the portion of the loan that exceeds the fair value or establishes a reserve within the allowance for credit losses specific to the loan.

Loans for which such charge-offs or reserves were recorded during the six months ended June 30, 2025 and the year ended December 31, 2024, are shown in the table above (net of reserves).

Loans for which such charge-offs or reserves were recorded during the nine months ended September 30, 2025 and the year ended December 31, 2024, are shown in the table above (net of reserves).

Foreclosed Assets Held for Sale.

2 unchanged sentences

Foreclosed assets held for sale are classified within Level 3 of the fair value hierarchy.

There were no foreclosed assets held for sale at June 30, 2025 or December 31, 2024 which had valuation write-downs subsequent to the initial recording of the assets.

There were no foreclosed assets held for sale at September 30, 2025 or December 31, 2024 which had valuation write-downs subsequent to the initial recording of the assets.

Fair Value of Financial Instruments

30 unchanged sentences

Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate.

June 30, 2025

September 30, 2025

December 31, 2024

31 unchanged sentences

As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings.

At June 30, 2025, the Company had five interest rate swaps totaling $ 85.6 million in notional amount with commercial customers, and five interest rate swaps with the same aggregate notional amount with third parties related to its program.

At September 30, 2025, the Company had five interest rate swaps totaling $ 85.0 million in notional amount with commercial customers, and five interest rate swaps with the same aggregate notional amount with third parties related to its program.

At December 31, 2024, the Company had five interest rate swaps totaling $ 86.7 million in notional amount with commercial customers, and five interest rate swaps with the same notional amount with third parties related to its program.

In addition, at December 31, 2024, the Company had one participation loan purchased totaling $ 8.4 million, in which the lead institution has an interest rate swap with its customer and the economics of the counterparty swap are passed along to the Company through the loan participation.

During the three months ended June 30, 2025 and 2024, the Company recognized net losses of $ 28,000 and $ 7,000 , respectively, in non-interest income related to changes in the fair value of these swaps.

During the six months ended June 30, 2025 and 2024, the Company recognized net losses of $ 52,000 and $ 20,000 , respectively, in non-interest income related to changes in the fair value of these swaps.

During the three months ended September 30, 2025 and 2024, the Company recognized net losses of $ 2,000 and $ 37,000 , respectively, in non-interest income related to changes in the fair value of these swaps.

During the nine months ended September 30, 2025 and 2024, the Company recognized net losses of $ 54,000 and $ 57,000 , respectively, in non-interest income related to changes in the fair value of these swaps.

Fair Value Hedges

Interest Rate Swaps .

As a strategy to maintain acceptable levels of exposure to the risk of changes in future cash flows due to interest rate fluctuations, in February 2023, the Company entered into interest rate swap transactions as part of its ongoing interest rate management strategies to hedge the risk of certain of its fixed rate brokered deposits.

These transactions hedged the risk of certain of its fixed rate brokered deposits.

The total notional amount of the swaps was $ 95 million with a termination date of February 28, 2025.

16 unchanged sentences

The Company was paid $ 45.9 million from its swap counterparty as a result of this termination.

This $ 45.9 million, less the accrued interest portion and net of deferred income taxes, has been reflected in the Company’s stockholders’ equity as part of Accumulated Other Comprehensive Income (AOCI) and a portion of it is being accreted to interest income on loans monthly through the original contractual termination date of October 6, 2025.

This $ 45.9 million, less the accrued interest portion and net of deferred income taxes, was reflected in the Company’s stockholders’ equity as part of Accumulated Other Comprehensive Income (AOCI).

This balance was accreted to interest income on loans monthly through the original contractual termination date of October 6, 2025.

This had the effect of reducing Accumulated Other Comprehensive Income and increasing Net Interest Income and Retained Earnings over the period.

At June 30, 2025, the Company expected to have a sufficient amount of eligible variable rate loans to continue to accrete this interest income on the terminated swap in future periods.

If this expectation changes and the amount of eligible variable rate loans decreases significantly, the Company may be required to recognize this interest income more rapidly.

The Company recorded $ 2.0 million of interest income related to this terminated swap in each of the three-month periods ended June 30, 2025 and 2024.

The Company recorded $ 4.0 million and 4.1 million of interest income related to the swap in the six months ended June 30, 2025 and June 30, 2024, respectively.

The Company recorded $ 2.0 million of interest income related to this terminated swap in each of the three-month periods ended September 30, 2025 and 2024.

The Company recorded $ 6.1 million of interest income related to the swap in each of the nine months ended September 30, 2025 and September 30, 2024.

After October 6, 2025, the accretion of interest income related to the terminated swap concluded.

In March 2022, the Company entered into an interest rate swap transaction as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans.

4 unchanged sentences

If the fixed rate of interest exceeded the floating rate of interest, the Company received net interest settlements, which were recorded as loan interest income.

As this interest rate swap reached its contractual termination date on March 1, 2024, there has been no further interest income impact related to this swap after the three months ended March 31, 2024.

The Company recorded a reduction of loan interest income related to this swap transaction of $ 1.9 million in the six months ended June 30, 2024.

This interest rate swap reached its contractual termination date on March 1, 2024 and there has been no further interest income impact related to this swap after the three months ended March 31, 2024.

The Company recorded a reduction of loan interest income related to this swap transaction of $ 1.9 million in the nine months ended September 30, 2024.

In July 2022, the Company entered into two additional interest rate swap transactions as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans.

5 unchanged sentences

If the floating rate of interest exceeds the fixed rate of interest, the Company pays net settlements to the counterparty and records those net payments as a reduction of interest income on loans.

At June 30, 2025, the USD-Prime rate was 7.50 % and the one-month USD-SOFR OIS rate was 4.31926 %.

The Company recorded a reduction of loan interest income related to these swap transactions of $ 1.8 million and $ 2.8 million in the three months ended June 30, 2025 and 2024, respectively.

The Company recorded a reduction of loan interest income related to these swap transactions of $ 3.5 million and $ 5.5 million in the six months ended June 30, 2025 and 2024, respectively.

At September 30, 2025, the USD-Prime rate was 7.25 % and the one-month USD-SOFR OIS rate was 4.30757 %.

The Company recorded a reduction of loan interest income related to these swap transactions of $ 1.8 million and $ 2.7 million in the three months ended September 30, 2025 and 2024, respectively.

The Company recorded a reduction of loan interest income related to these swap transactions of $ 5.3 million and $ 8.3 million in the nine months ended September 30, 2025 and 2024, respectively.

The effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affected earnings.

Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.

During each of the three and six months ended June 30, 2025 and 2024, the Company recognized no non-interest income related to changes in the fair value of these derivatives.

During each of the three and nine months ended September 30, 2025 and 2024, the Company recognized no non-interest income related to changes in the fair value of these derivatives.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Financial Condition:

Consolidated Statements

September 30,

of Financial Condition

16 unchanged sentences

Recognized in AOCI

Three Months Ended June 30,

Three Months Ended September 30,

Cash Flow Hedges

4 unchanged sentences

Recognized in AOCI

Six Months Ended June 30,

Nine Months Ended September 30,

Cash Flow Hedges

3 unchanged sentences

The following table presents, for the periods indicated, the effect of cash flow hedge accounting on the statements of income:

Three Months Ended June 30,

Three Months Ended September 30,

Cash Flow Hedges

4 unchanged sentences

Active interest rate swaps

Six Months Ended June 30,

Nine Months Ended September 30,

Cash Flow Hedges

9 unchanged sentences

Similarly, the Company could be required to settle its obligations under certain of its agreements if certain regulatory events occur, such as the issuance of a formal directive, or if the Company’s credit rating is downgraded below a specified level.

At June 30, 2025, the termination value of derivatives with our derivative dealer counterparties (related to loan level swaps with commercial lending customers and interest rate swaps to hedge risk related to the Company’s variable rate loans) in an overall net asset position, which included accrued interest but excluded any adjustment for nonperformance risk, related to these agreements was $ 27,000 .

At September 30, 2025, the termination value of derivatives with our derivative dealer counterparties (related to loan level swaps with commercial lending customers and interest rate swaps to hedge risk related to the Company’s variable rate loans) in an overall net asset position, which included accrued interest but excluded any adjustment for nonperformance risk, related to these agreements was $ 25,000 .

The Company has minimum collateral posting thresholds with its derivative dealer counterparties.

At June 30, 2025, the Company had given cash collateral to one derivative counterparty of $ 3.5 million to cover its net fair value position.

At September 30, 2025, the Company had given cash collateral to one derivative counterparty of $ 2.6 million to cover its net fair value position.

This counterparty position included collateral from the counterparty of $ 4.9 million for commercial lending swaps and collateral from the Company of $ 7.2 million for interest rate swaps related to variable rate loans.

2 unchanged sentences

This counterparty position included collateral from the counterparty of $ 8.1 million for commercial lending swaps and collateral from the Company of $ 17.7 million for interest rate swaps related to variable rate loans.

If the Company had breached any of these provisions at June 30, 2025 or December 31, 2024, it could have been required to settle its obligations under the agreements at the termination value.

If the Company had breached any of these provisions at September 30, 2025 or December 31, 2024, it could have been required to settle its obligations under the agreements at the termination value.

Under the collateral agreements between the parties, either party may choose to provide cash or securities to satisfy its collateral requirements.

6 unchanged sentences

Our chief executive officer reviews actual net income versus budgeted net income, as well as comparison to other comparable financial reporting periods, to assess performance on a monthly basis and to make decisions about allocating capital and personnel.

Financial results by operating segment (all attributed to the banking segment), including significant expense categories provided to the chief operating decision maker, are detailed below for the three and six months ended June 30, 2025 and 2024.

Three Months Ended June 30,

Three Months Ended September 30,

(In Thousands)

23 unchanged sentences

Provision for Income Taxes

Six Months Ended June 30,

Nine Months Ended September 30,

(In Thousands)

24 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements