What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-03-18 compared with 2025-03-14 · 168 added, 146 removed, 649 unchanged (33% of the section changed)

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• The strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations which may be less favorable than expected and may result in, among other things, a deterioration in the credit quality and value of the Company’s assets.

This includes current concerns related to higher inflation, rising energy prices, the Russia-Ukraine war, Israeli-Palestinian conflict, and supply chain imbalances.

This includes current concerns related to higher inflation, rising energy prices, geopolitical conflicts, and supply chain imbalances, including tariffs.

• The effects of financial market disruptions and/or an economic recession, and monetary and other governmental actions designed to address such disruptions, recession, or pandemics.

• The financial strength of the counterparties with which the Company or the Company’s customers do business and as to which the Company has investment or financial exposure.

• The credit quality and credit agency ratings of the securities in the Company’s investment securities portfolio, a deterioration or downgrade of which could lead to recognition of an allowance for credit losses on the affected securities and the recognition of a credit loss.

• The effects of, and changes in, laws, regulations and policies affecting banking, securities, insurance and monetary and financial matters as well as any laws otherwise affecting the Company, including, but not limited to, changes in U.S.

• The financial strength of the counterparties with which the Company or the Company’s customers do business and to which the Company has investment or financial exposure.

• The credit quality and credit agency ratings of the securities in the Company’s investment securities portfolio, a deterioration or downgrade of which could lead to change in the market value, the recognition of an allowance for credit losses on the affected securities and the recognition of a credit loss.

• The effects of, and changes in, laws, regulations and policies affecting banking, securities and monetary and financial matters as well as any laws otherwise affecting the Company, including, but not limited to, changes in U.S.

tax laws and regulations.

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• The ability of the Company to develop and maintain secure and reliable technology systems, including to detect and prevent the occurrence of fraudulent activity, breaches, or failures of our information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools.

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• The ability of the Company to retain key executives and employees and the difficulty that the Company may experience in replacing key executives and employees in an effective manner.

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Economic Environment

Through the end of 2024, incoming economic data per the Beige Book for the Company's region continue to show slight growth in the labor market and consumer spending while construction and real estate activity was flat.

Also, prices were up modestly and wages rose moderately.

Farm incomes in 2024 were below those of 2023.

GDP growth for the fourth quarter of 2.3% was slower than expected with underlying demand from consumers increasing slightly and businesses spending decreasing slighlty, with the national unemployment rate continuing to remain low.

Inflation, however, has been slower to come down than expected after the rapid decline observed in 2023, and the cumulative effect of elevated prices compared with the pre-pandemic era may be weighing on consumer sentiment.

While many economists continue to expect U.S.

economic conditions consistent with a soft-landing as the economy decelerated over the remainder of 2024, persistent inflation may yet force additional Fed rate hikes, further raising the odds of a mild recession.

Through the end of 2025, incoming economic data per the Beige Book for the Company's region was little changed over the reporting period with an expected slight decline in activity over the next year.

Consumer spending, construction and real estate demand rose slightly;

employment was flat;

business spending fell slightly;

and manufacturing activity declined modestly.

Prices rose moderately, wages were up modestly, and financial conditions loosened modestly.

Net farm income in 2025 was similar to 2024.

Higher borrowing costs continue to present a risk to the economy, with consumer and business budgets accounting for higher interest costs.

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Based on the Company’s capital levels, prudent underwriting policies, loan concentration diversification and our geographic footprint, senior management is cautiously optimistic that the Company is positioned to continue managing the impact of the varied set of risks and uncertainties currently impacting the economy and remain adequately capitalized.

However, the Company may be required to make additional credit loss provisions as warranted by the extremely fluid economic conditions and continued migration in the loan portfolio towards the special mention risk rating category.

However, the Company may be required to make additional credit loss provisions as warranted by economic conditions and continued migration in the loan portfolio towards the special mention risk rating category.

The Company is a bank holding company engaged, through its wholly-owned subsidiary bank, in the business of commercial banking.

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The Bank is a full-service commercial bank extending its services to individuals, businesses, governmental units and institutional customers primarily in the communities of Hills, Iowa City, Coralville, North Liberty, Lisbon, Mount Vernon, Kalona, Wellman, Cedar Rapids, Marion, Washington, and Williamsburg, Iowa.

Highlights with respect to items on the Company’s statement of income for the period ended December 31, 2025 included the following:

• The Company’s net income for 2025 was $60.50 million compared to $47.60 million in 2024 and $38.18 million in 2023.

• Diluted earnings per share were $6.81, $5.26, and $4.16 for the years ended December 31, 2025, 2024 and 2023, respectively.

The Bank’s net interest income is the largest component of the Bank’s revenue, and is a function of the average earning assets and the net interest margin percentage.

Net interest margin is the ratio of net interest income to average earning assets.

For the years ended December 31, 2024 and 2023, the Bank achieved a net interest margin of 2.78% and 2.86%, respectively.

• For the years ended December 31, 2025 and 2024, the Company achieved a net interest margin of 3.45% and 2.78%, respectively.

• For the year ended December 31, 2025, net interest income on a tax equivalent basis increased by $34.53 million.

In 2024, interest income increased $10.72 million due to growth of $225.10 million in the Bank's average earning assets and increased $22.94 million due to higher interest rates.

This was offset by increased interest expense of $15.16 million due to higher interest rates and $15.42 million due to increased volume of certificates of deposit and borrowings.

• In 2025, interest income on a tax equivalent basis increased $30.50 million due to growth of $180.08 million in the Company's average earning assets and increased $19.49 million due to higher interest rates.

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• Interest expense decreased $4.02 million primarily due to decrease in interest rates.

Highlights with respect to items on the Company’s balance sheet as of December 31, 2025 included the following:

• Total assets were $4.588 billion, an increase of $246.58 million since December 31, 2023, primarily due to increased investment securities as described further below.

• Cash and cash equivalents were $123.40 million, an increase of $63.92 million since December 31, 2023.

• Loans, net of allowance for credit losses and unamortized fees and costs, totaling $3.388 billion, a decrease of $1.85 million since December 31, 2023.

The decrease is primarily attributable to declines of approximately $35.09 million in construction loans, $47.21 million in 1 to 4 family first mortgages, $2.97 million in junior mortgages, $8.27 million in commercial and financial loans and $5.40 million in farmland mortgages.

These decreases were offset by increases of $21.75 million in multi-family mortgages and $81.41 million in commercial mortgages.

Increases in multi-family and commercial real estate were primarily due to the completion of large construction projects that were put on permanent financing during 2024.

• Total assets were $4.648 billion, an increase of $59.63 million since December 31, 2024, primarily due to items below.

• Cash and cash equivalents were $42.11 million, a decrease of $81.29 million since December 31, 2024.

• Investment securities available for sale were $955.58 million, an increase of $11.45 million since December 31, 2024.

• Loans, net of allowance for credit losses and unamortized fees and costs, totaling $3.507 billion, an increase of $119.30 million since December 31, 2024.

The increase is primarily attributable to increases of $87.79 million in 1 to 4 family first mortgages, $1.77 million in junior mortgages, $1.52 million in multi-family mortgages, $1.02 million in farmland mortgages and $67.10 million in commercial mortgages offset by decreases of $20.94 million in construction loans, and $3.30 million in commercial and financial loans.

Loans held for sale increased $4.08 million since December 31, 2024.

• Deferred income tax assets were $18.47 million, a decrease of $2.67 million since December 31, 2024.

• Deposits increased $63.35 million in 2024 to $3.346 billion primarily due to increases in time deposits of approximately $49.58 million and increases in savings accounts of $27.35 million offset by a decrease of $19.36 million in noninterest-bearing deposits.

• Short-term borrowings increased $327.64 million as of December 31, 2024, consisting of $109.00 million of borrowings from the Bank Term Funding Program and $437.64 million of federal funds purchased, compared to the Bank Term Funding Program borrowings of $219 million as of December 31, 2023.

FHLB borrowings decreased $169.60 million as of December 31, 2024.

• Deposits increased $21.70 million in 2025 to $3.368 billion primarily due to an increase in noninterest-bearing deposits of $15.19 million and savings accounts of $114.26 million offset by a decrease of $10.36 million in NOW and other demand and $97.38 million in time deposits.

• Short-term borrowings increased $40.25 million as of December 31, 2025, primarily due to the increase in FHLB daily reset advances of $149.25 million offset by $109.00 million due to borrowings with the Bank Term Funding Program being paid off.

FHLB borrowings decreased $62.72 million.

• Stockholders’ equity increased $55.55 million to $548.23 million in 2025, with dividends having been paid in 2025 of $10.32 million.

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A detailed discussion of the financial position and results of operations follows this overview.

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Critical Accounting Policies

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Allowance for Credit Losses

On January 1, 2021, the Company adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments , which requires the allowance for credit losses use the current expected credit loss (CECL) methodology.

The following is a discussion of the methodologies used by the Company with the adoption of ASC 326.

The allowance for credit losses for loans represents management's estimate of all expected credit losses over the expected contractual life of our existing loan portfolio.

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If the calculated expected credit loss is determined to be permanent, fixed or nonrecoverable, the credit loss portion of the loan will be charged off against the allowance for credit losses.

Loans designated having significantly increased credit

risk are generally placed on nonaccrual and remain in that status until all principal and interest payments are current and the prospects for future payments in accordance with the loan agreement are reasonably assured, at which point the loan is returned to accrual status.

Loans designated having significantly increased credit risk are generally placed on nonaccrual and remain in that status until all principal and interest payments are current and the prospects for future payments in accordance with the loan agreement are reasonably assured, at which point the loan is returned to accrual status.

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In estimating the component of the allowance for credit losses for loans that share common risk characteristics, loans are segregated into loan classes.

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To the extent the lives of the loans in the portfolio extend beyond the period for which a reasonable and supportable forecast can be made which management has determined to be four quarters, the bank reduces, on a straight-line basis over the remaining life of the loans, the adjustments so that model reverts back to the historical rates of default and severity of loss.

The component of the allowance for credit losses for loans that share common risk characteristics also considers factors for each loan class to adjust for differences between the historical period used to calculate historical default and loss severity rates and expected conditions over the remaining lives of the loans in the portfolio related to:

Such factors are used to adjust the historical probabilities of default and severity of loss so that they reflect management expectation of future conditions based on a reasonable and supportable forecast.

Management utilizes a qualitative factor framework to provide a qualitative estimate of the expected credit losses inherent in the loan portfolio in relation to potential limitations of the quantitative model.

The framework considers the following factors:

• Lending policies and procedures;

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• The effect of external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio.

The framework provides for a level of risk approach to measure risk in each loan segment that may not be captured in the quantitative methodology, including improved risk environment, no additional risk, minimal additional risk, moderate risk and major or significant additional risk.

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This discussion of the Company’s critical accounting policies should be read in conjunction with the Company’s consolidated financial statements and the accompanying notes presented elsewhere herein, as well as other relevant portions of Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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Financial Position

The following table presents select lines from the consolidated balance sheets in Item 5, with the addition of the periods ended December 31, 2023, 2022, and 2021.

Year End Amounts 2025 2024 2023 2022 2021

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Loans held for sale 8,047 3,971 2,023 1,663 5,716

Loans, net 3,387,521 3,389,372 3,066,981 2,625,062 2,674,012

Loans, net of allowance for credit losses 3,506,819 3,387,521 3,389,372 3,066,981 2,625,062

Deposits 3,367,835 3,346,133 3,282,780 3,357,367 3,533,994

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Stockholders' equity 548,234 492,687 470,286 428,260 438,450

(1) Investment securities includes stock of FHLB.

Total assets at December 31, 2025 increased $59.63 million, or 1.30%, from the prior year-end.

The largest growth in assets in 2024 occurred in investment securities which increased $176.99 million for the year ended December 31, 2024 compared to the prior year.

This was primarily due to net loans which increased $119.30 million for the year ended December 31, 2025 compared to the prior year.

Loans held for sale to the secondary market increased $4.08 million for the year ended December 31, 2025.

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Loans held for investment were $3.565 billion and $3.438 billion at December 31, 2025 and 2024, respectively.

Loans held for investment was down slightly for 2024 compared to 2023, with significant changes as follows:

declines of approximately $35.09 million in construction loans, $47.21 million in 1 to 4 family first mortgages, $2.97 million in junior mortgages, $8.27 million in commercial and financial loans and $5.40 million in farmland mortgages.

These decreases were offset by increases of $21.75 million in multi-family mortgages and $81.41 million in commercial mortgages.

Increases in multi-family and commercial real estate were primarily due to the completion of large construction projects that were put on permanent financing during 2024.

Given the current economic environment and the potential for lower interest rates, the decrease in net loans in 2024 may not continue into 2025, and as a result, may not be indicative of future performance.

On a net basis, the Company originated $3.66 million in loans to customers for the year ended December 31, 2024 compared to loans originated of $337.69 million for the year ended December 31, 2023, a significant slowdown in the local economy.

Loans held for investment increased in 2025 compared to 2024.

This was primarily due to increases of $87.79 million in 1 to 4 family first mortgages, $1.77 million in junior mortgages, $1.52 million in multi-family mortgages, $1.02 million in farmland mortgages and $67.10 million in commercial mortgages offset by declines of $20.94 million in construction loans, $3.30 million in commercial and financial loans.

Increases in commercial mortgages and commercial real estate were primarily due to the completion of large construction projects that were put on permanent financing during 2025.

Given the current economic environment and the potential for lower interest rates, the increase in net loans in 2025 may continue into 2026.

On a net basis, the Company originated $130.48 million in loans to customers for the year ended December 31, 2025 compared to loans originated of $3.66 million for the year ended December 31, 2024.

The Company has not historically engaged in significant participation activity and does not purchase participations from outside its established trade area.

The Company’s policy allows for the purchase or sale of participations related to existing customers or to participate in community development activity.

The Company held participations purchased of $16.52, $17.04 and $16.20 million as of December 31, 2024, 2023 and 2022, respectively.

The Company held participations purchased of $15.58 million, $16.52 million and $17.04 million as of December 31, 2025, 2024 and 2023, respectively.

The participations purchased were less than one percent of loans held for investment for each of the three years.

The Company did experience minimal change in its loans held for investment in 2024 compared to 2023 though the loan composition in 2024 changed compared to 2023 as follows.

Residential real estate loans, including first and junior liens, were $1,316.63 million and $1,365.82 million as of December 31, 2024 and 2023, respectively.

The dollar total of residential real estate loans decreased 3.60% in 2024 and increased 8.75% in 2023.

The loan composition in 2025 remained relatively the same compared to 2024 as follows.

Residential real estate loans, including first and junior liens, were $1.405 billion and $1.316 billion as of December 31, 2025 and 2024, respectively.

Residential real estate loans increased 6.81% in 2025 and decreased 3.60% in 2024.

Residential real estate loans were 39.42% of the loan portfolio at December 31, 2025 and 38.27% at December 31, 2024.

Agricultural loans, including production and mortgages, were $394.45 million and $396.95 million as of December 31, 2024 and 2023, respectively, a decrease of 0.63% in 2024 compared to 2023.

Agricultural loans, including production and mortgages, were $395.71 million and $394.45 million as of December 31, 2025 and 2024, respectively, an increase of 0.32% in 2025 compared to 2024.

Agricultural loans represented 11.10% and 11.47% of the Company's loan portfolio as of December 31, 2025 and 2024, respectively.

Construction loans were $359.04 million and $394.13 million as of December 31, 2024 and 2023, respectively, an decrease of 8.90% in 2024 compared to 2023.

Construction loans were $338.10 million and $359.04 million as of December 31, 2025 and 2024, respectively, a decrease of 5.83% in 2025 compared to 2024.

Construction loans represented 9.48% and 10.44% of the Company's loan portfolio as of December 31, 2025 and 2024, respectively.

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Commercial real estate loans represented 15.85% and 14.49% of the Company’s loan portfolio as of December 31, 2025 and 2024, respectively.

The Company monitors its commercial real estate level so that it does not have a concentration in that category that exceeds 300% of its capital.

Commercial real estate loan concentration was 180.49% of capital as of December 31, 2024.

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Company monitors its commercial real estate level so that it does not have a concentration in that category that exceeds 300% of its capital.

Commercial real estate loan concentration was 171.72% of risk based capital as of December 31, 2025.

The following table shows the composition of loans (before deducting the allowance for credit losses) as of December 31 for each of the last five years.

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There were no foreign loans outstanding for any of the years presented.

The following table shows the principal payments due on loans as of December 31, 2024:

Of Loans Amounts Due in One Year

Or Less (1) Amounts Due in One To

Five Years Amounts Due in Five To Fifteen

Years Amounts Due in Over Fifteen

The following table shows the remaining maturity of loans as of December 31, 2025.

Maturities are based upon contractual dates.

Of Loans One Year

Or Less (1) One To

Five Years Five To Fifteen

Years Over Fifteen

(Amounts In Thousands)

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Totals $ 3,564,732 $ 694,710 $ 1,447,123 $ 331,861 $ 1,091,038

The types of interest rates applicable to these principal payments are shown below:

The types of interest rates applicable to these maturities are shown below:

Fixed rate $ 2,177,252 $ 479,789 $ 1,395,342 $ 243,602 $ 58,519

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(2) Commercial, multi-family, construction 1 to 4 family residential, construction land development and commercial, and agricultural real estate loans are reflected in the Commercial and Agricultural total.

The overall economy in the Company’s trade area, Johnson, Linn and Washington Counties, remains in stable condition with levels of unemployment below national and state levels.

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(3) Certain adjustable‑rate mortgage loans (“ARMs”) are included in the variable‑rate category in later maturity periods because these loans contractually reprice from fixed to variable interest rates following their initial fixed‑rate periods (generally 3, 5, 7, or 10 years).

Prior to repricing, these loans bear fixed interest rates.

The table reflects interest rate characteristics based on contractual terms over the remaining maturities rather than interest rates in effect as of the balance‑sheet date.

The overall economy in the Company’s trade area, Johnson, Linn, Washington, and Iowa Counties, remains in stable condition with levels of unemployment below national and state levels.

The following table shows unemployment and estimated median income information as of December 31, 2025, 2024 and 2023.

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Washington County 2.5 % 2.3 % 2.1 % 78,473 77,414 68,296

Iowa County 2.5 % n/a n/a 77,292 n/a n/a

Iowa County 3.2 % 2.5 % n/a 77,841 77,292 n/a

Competition for quality loans and deposits may continue to be a challenge.

The increased competition for both loans and deposits could result in a lower interest rate margin that could result in lower net interest income if the volume of loans and deposits does not increase to offset any such reduction in the interest margin.

Total deposits increased by $63.35 million in 2024.

Deposits decreased by $74.59 million in 2023.

As of June 30, 2024 (latest data available from the FDIC), Johnson County total deposits were $13.546 billion and the Company’s deposits were $2.196 billion, which represent a 16.21% market share.

The Company had eight office locations in Johnson County as of June 30, 2024.

The total banking locations in Johnson County were 47 as of June 30, 2024.

Total deposits increased by $21.70 million in 2025 compared to an increase of $63.35 million in 2024.

As of June 30, 2025 (latest data available from the FDIC), Johnson County total deposits for all financial institutions were $13.408 billion and the Company’s deposits were $2.271 billion, which represent a 16.94% market share.

At June 30, 2024, the Company’s deposits were $2.196 billion or a 16.21% market share.

As of June 30, 2024, Linn County total deposits were $8.605 billion and there were 99 total banking locations in the county.

The Company had nine office locations in Johnson County as of June 30, 2025.

The total number of banking locations in Johnson County were 47 as of June 30, 2025.

Linn County total deposits for all financial institutions were $8.790 billion as of June 30, 2025 and there were 97 total banking locations in the county.

The seven Linn County offices of the Company had deposits of $714.92 million or a 8.13% share of the market.

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In 2024, the Company’s Washington County deposits were $335.02 million or a 34.25% market share.

The company's one location in Iowa County had deposits of $14.03 million which was 3.22% of the county's total deposits of $435.74 million.

Iowa County had a total of 10 banking locations as of June 30, 2025.

This branch was opened in November 2024.

The following tables show the amounts of the Company's average deposits and average rates paid on such deposits for the years ended December 31, 2025, 2024 and 2023 and the composition of the certificates of deposit issued in denominations in excess of $250,000 as of December 31, 2025, 2024 and 2023:

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Uninsured deposits $ 733,968 $ 719,615 $ 693,827

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Time certificates issued in amounts of $250,000 or more with maturity in:

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Portion uninsured $ 90,190

Investment securities increased $176.99 million in 2024.

In 2023, investment securities increased by $12.60 million.

Investment securities increased $15.49 million in 2025 compared to an increase of $176.99 million in 2024.

The investment portfolio consists of $955.58 million of securities that are stated at fair value, with any unrealized gain or loss, net of income taxes, reported as a separate component of stockholders’ equity.

The securities portfolio is used for liquidity and pledging purposes and to provide a rate of return that is acceptable to management.

The Company completed a balance sheet repositioning related to its investment securities portfolio in December 2024.

This consisted of the sale of lower-yielding AFS

debt securities with an amortized cost of $135.05 million, resulting in a pre-tax realized loss on the sale of $5.22 million, which was recorded in December of 2024.

All of the proceeds from the sale of these securities were used to purchase AFS debt securities at higher yields to improve income going forward, while maintaining the liquidity provided by the investment portfolio.

The Company completed a balance sheet repositioning related to its investment securities portfolio at the end of 2025.

This consisted of multiple sales of lower-yielding AFS debt securities in 2025, resulting in a pre-tax realized loss on the sales of $9.63 million in total.

The sale of these securities was done for the sole purpose of an investment portfolio repositioning.

The following tables show the carrying value of the investment securities held by the Bank, including stock of the Federal Home Loan Bank, as of December 31, 2025, 2024 and 2023 and the maturities and weighted average yields of the investment securities, computed using amortized cost on a tax-equivalent basis using a federal tax rate of 21%, as of December 31, 2025:

2024 2023 2022

(Amounts In Thousands)

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Treasury $ 255,527 $ 288,462 $ 422,490

Other securities (FHLB, FHLMC and FNMA) 14,848 33,049 31,934

Government Agency and GSE securities 4,658 14,848 33,049

Stock of the Federal Home Loan Bank 32,063 28,024 15,746

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$ 987,647 $ 972,160 $ 795,167

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December 31, 2025

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(Amounts In Thousands)

Treasury, maturities:

Within 1 year $ 49,383 1.48 %

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From 5 to 10 years — —

Other securities (FHLB, FHLMC and FNMA), maturities:

Within 1 year $ 14,848 0.39 %

Government Agency and GSE securities, maturities:

Over 10 years $ 4,658 4.18 %

Stock of the Federal Home Loan Bank $ 32,063 9.44 %

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Over 10 years 206,736 5.16

Mortgage Backed Securities

Mortgage Backed Securities and Collateralized Mortgage Obligations, maturities:

Within 1 year $ 1,620 5.60 %

From 1 to 5 years 180,774 4.82

From 5 to 10 years 130,360 4.65

Over 10 years 42,776 5.01

Total $ 987,647

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See Note 2 to the Company’s Consolidated Financial Statements.

During 2024, the major funding source for loans and other assets was from short-term borrowings, primarily federal funds purchased, in addition to FHLB borrowings.

In 2023, the major funding source of the growth in loans and other assets was from short-term borrowings in addition to FHLB borrowings.

During 2025 and 2024, the major funding source for loans and other assets, aside from deposits within the Company's trade area, were from short-term borrowings, primarily FHLB daily reset advances, in addition to FHLB borrowings.

Brokered deposits totaled $35.17 million and $34.75 million as of December 31, 2025 and 2024, respectively.

Total advances from the FHLB were $64.33 million at December 31, 2025 and $127.05 million in 2024.

Total federal funds purchased were $437.64 million as of December 31, 2024 and none as of December 31, 2023.

Total funds purchased from the Bank Term Funding program was $109.00 million as of December 31, 2024 and $219.00 million as December 31, 2023.

The federal funds purchased and FHLB funding sources are considered when loan growth exceeds core deposit increases and the interest rates on funds borrowed from the FHLB or other sources are favorable compared to other funding alternatives.

Total FHLB daily reset advances were $586.88 million as of December 31, 2025 and $437.64 million as of December 31, 2024.

There was $109.00 million in funds borrowed from the Bank Term Funding Program as December 31, 2024 and was paid off during 2025.

Federal funds purchased and FHLB funding sources are considered when loan growth exceeds core deposit increases and the interest rates on funds borrowed from the FHLB or other sources are favorable compared to other funding alternatives.

Stockholders’ equity was $548.23 million at December 31, 2025 compared to $492.69 million at December 31, 2024.

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The following table presents the return on average assets, return on average stockholders' equity, the dividend payout ratio and average stockholders’ equity to average assets ratio for the years ended December 31, 2025, 2024 and 2023:

2024 2023 2022

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Return on average assets 1.32 % 1.09 % 0.92 %

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Net income for 2025 increased by $12.90 million or 27.09% and diluted earnings per share increased by 29.47%.

In 2024, net interest income, before credit loss expense, increased by $1.94 million due to the following reasons:

1) increase in interest income of $32.52 million primarily due to higher loan and investment balances and higher interest rates;

and 2) increase in interest expense of $30.58 million primarily due to increased interest rates on deposits and higher borrowings balances throughout 2024 compared to 2023.

Noninterest income, excluding loss on sale of investment securities, increased by $3.43 million primarily due to increased trust fees and net gain on sale of loans.

The credit loss expense decreased by $13.41 million and total noninterest expenses increased by $1.84 million primarily due to an increase in other noninterest expenses.

In 2025, net interest income, before credit loss expense, increased by $34.36 million due to the increase in interest income of $30.33 million primarily due to higher loan and investment balances and higher interest rates.

Noninterest income, excluding loss on sale of investment securities, increased by $1.94 million primarily due to increased trust fees and other noninterest income.

The credit loss expense increased by $10.12 million and total noninterest expenses increased by $6.28 million primarily due to an increase in outside services, loss on disposal of property and equipment, and salaries and employee benefits.

Annual fluctuations in the Company's net income are driven primarily by four factors.

The first factor is credit loss expense.

The majority of the Company's interest earning assets are in loans outstanding, which amounted to more than $3.438 billion at December 31, 2024.

The majority of the Company's interest earning assets are in loans outstanding, which were $3.565 billion at December 31, 2025.

Credit loss expense was $12.33 million in 2025 compared to $2.21 million in 2024.

The decrease in expense when compared to 2023 is primarily attributable to not having significant specific relationships with decreasing credit quality resulting in chargeoffs in 2024 when compared to 2023.

Another factor leading to lower credit loss expense was decreased outstanding commitments which resulted in a lower allowance for credit losses on off-balance sheet credit exposures.

The Company believes that credit loss expense is expected to be dependent on the Company's loan growth, local economic conditions, and asset quality.

Because the majority of the Company’s interest‑earning assets are comprised of loans, the level of credit loss expense can vary from year to year based on changes in the loan portfolio and the credit environment.

In 2025, credit loss expense increased compared to the prior year largely due to updated economic expectations, growth in outstanding loan balances, and movements in model‑driven assumptions.

These included shifts in economic outlook, changes in borrower payment behaviors, and adjustments to qualitative considerations reflecting portfolio trends and overall credit conditions.

In addition, net charge‑off activity contributed to higher estimated loss rates for the year.

The Company expects that future credit loss expense will continue to be influenced by loan growth, changes in economic conditions within its markets, and trends in asset quality.

The second factor affecting the Company’s net income is the interaction between changes in net interest margin and changes in average volumes of the Company's earnings assets.

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Average earning assets in 2024 were $4.281 billion and the tax-equivalent net interest margin was 2.78%.

Net interest income for the Company increased primarily as a result of interest income on higher loan and investment balances and rates offset by increased interest expense from increased interest rates, including on borrowings, certificates of deposit, and interest-bearing deposits as well as higher balances of certificates of deposit and borrowings.

The Company expects net interest compression to impact earnings for the foreseeable future due to competition for loans and deposits.

Net interest income for the Company increased primarily as a result of interest income on higher loan and investment balances and rates.

Interest expense decreased from decreased interest rates on borrowings, certificates of deposit, and interest-bearing deposits.

The Company believes growth in net interest income will be contingent on the growth of the Company’s earning assets, increasing yield on loans and the ongoing interest rate stance of the Federal Reserve Board.

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Trust fees were $17.14 million and $15.26 million for the years ended December 31, 2025 and 2024, respectively, an increase of 12.32%.

This is primarily driven by the increase in assets under management of $0.267 billion from $2.645 billion as of December 31, 2023 to $2.912 billion as of December 31, 2024, an increase of 10.09%.

This is primarily driven by the increase in assets under management of $400.74 million from $2.912 billion as of December 31, 2024 to $3.313 billion as of December 31, 2025, an increase of 13.77%.

See the Noninterest Income section later in Item 7.

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For the overview discussion of the comparison of the Company’s results of operations for the fiscal year ended December 31, 2024 to the year ended December 31, 2023, please refer to Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 14, 2025.

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Net Interest Income

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The volume of average earning assets has continued to grow each year, primarily due to higher loan and investment balances in 2025.

The volume of interest-bearing liabilities increased in 2024 primarily due to increased volume in certificates of deposit and borrowings.

Increased interest rates led to increases in interest income as well as interest expense on interest-bearing deposits, certificates of deposit and borrowings.

The volume of interest-bearing liabilities increased in 2025 primarily due to an increase in deposits.

Interest expense on interest-bearing deposits, certificates of deposit and borrowings decreased from 2024.

The net interest margin was 3.45% in 2025, 2.78% in 2024 and 2.86% in 2023.

Management believes the increase in net interest income and margin in 2025 reflects a combination of balance-sheet repositioning, changes in funding mix, and interest-rate dynamics that may not recur to the same extent in future periods, and future net interest income will depend primarily on loan and deposit growth and pricing, and the direction of market interest rates.

The measure is shown on a tax-equivalent basis using a rate of 21% for 2025, 2024 and 2023 to make the interest earned on taxable and nontaxable assets more comparable.

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Years Ended December 31,

2024 2023 2022

(Amounts In Thousands)

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Time deposits 29,543 37,598 22,539

Other short-term borrowings, including Bank Term Funding Program and federal funds purchased 16,556 11,330 267

Other short-term borrowings, including Bank Term Funding Program and FHLB daily reset advances 13,222 16,556 11,330

FHLB borrowings 15,559 10,157 5,309

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Interest income includes certain loan origination and document preparation fees, which comprise approximately 1.25% of the amounts indicated.

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Net interest income on a tax-equivalent basis changed in 2025 as follows:

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Time deposits (46,255) (0.70) (1,995) (6,060) (8,055)

Other short-term borrowings, including Bank Term Funding Program and federal funds purchased 118,583 (0.31) (5,048) (178) (5,226)

Other short-term borrowings, including Bank Term Funding Program and FHLB daily reset advances (35,119) (0.53) (767) (2,567) (3,334)

FHLB borrowings 153,604 (0.71) 8,103 (2,701) 5,402

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Time deposits 173,735 1.06 (5,347) (9,712) (15,059)

Other short-term borrowings, including Bank Term Funding Program and federal funds purchased 210,608 0.60 (9,870) (1,287) (11,157)

Other short-term borrowings, including Bank Term Funding Program and FHLB daily reset advances 118,583 (0.31) (5,048) (178) (5,226)

FHLB borrowings 96,973 (0.33) (5,485) 637 (4,848)

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Change in net interest income $ (4,701) $ 7,778 $ 3,077

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A summary of the average yields, average rates paid, net interest spread and margin is as follows:

Years Ended December 31,

2024 2023 2022

Average yields:

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(2) Net interest spread is the difference between the yield on average interest-earning assets and the yield on average interest-paying liabilities stated on a tax equivalent basis using a federal rate of 21% for 2025, 2024 and 2023.

The net interest spread decreased 23 basis points in 2024 compared to 2023 and the net interest spread decreased 47 basis points compared to 2022.

The net interest spread increased 71 basis points in 2025 compared to 2024 and the net interest spread decreased 23 basis points in 2024 compared to 2023.

(3) Net interest margin is net interest income, on a tax equivalent basis, divided by average interest-earning assets.

The net interest margin decreased 8 basis points in 2024.

The net interest margin increased 67 basis points in 2025.

The net interest margin decreased 8 basis points in 2024 compared to 2023.

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Treasury market normally correlate to the Federal Reserve Board federal funds rate.

In pricing of loans and deposits, the Bank considers the U.S.

In the pricing of loans and deposits, the Bank considers the U.S.

Treasury indexes as benchmarks in determining interest rates.

As of December 31, 2025, the average rate indexes for the one, three and five year indexes were 3.48%, 3.55% and 3.73%, respectively.

The one year index decreased 13.15% from December 31, 2023, the three year index increased 6.48% and the five year index increased 14.06%.

The one year index decreased 16.35% compared to December 31, 2024, the one, three and five year indexes were 4.16%, 4.27% and 4.38%, respectively.

Current Expected Credit Losses and Allowance for Credit Losses (ACL)

Credit loss expense was $2.21 million for the year ended December 31, 2024 compared to expense of $15.62 million in 2023, a decrease of expense of $13.41 million.

The credit loss expense includes a reduction of expense of $2.21 million related to the ACL on off-balance sheet credit exposures for the year ended December 31, 2024 compared to $0.68 million expense for 2023.

Credit loss expense was $12.33 million for the year ended December 31, 2025 compared to expense of $2.21 million in 2024, an increase of expense of $10.12 million.

The credit loss expense includes an increase of expense of $1.60 million related to the ACL on off-balance sheet credit exposures for the year ended December 31, 2025 compared to $2.21 million benefit for 2024.

Credit loss expense is the amount necessary to adjust the allowance for credit losses to the level considered by management to appropriately account for the estimated current expected credit losses within the Bank's loan portfolio.

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The percentage of the allowance to outstanding loans was 1.63% and 1.48% at December 31, 2025 and 2024, respectively.

The credit loss expense was $2.21 million in 2024, $15.62 million in 2023 and $6.34 million in 2022.

The credit loss expense was $12.33 million in 2025, and $2.21 million in 2024 and $15.62 million in 2023.

Loan charge-offs net of recoveries were $3.46 million in 2025, loan charge-offs net of recoveries were $2.89 million in 2024 and loan recoveries net of charge-offs were $6.97 million in 2023.

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This process involves a high degree

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of management judgment.

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The Bank’s credit and legal departments undertake a thorough and ongoing analysis to determine if an additional specific reserve and/or charge-offs are appropriate and to begin a workout plan for the loan to minimize realized loss.

In certain circumstances, the Bank may modify the terms of a loan to maximize the collection of amounts due.

In most cases, the modification is either a reduction in interest rate, conversion to interest only payments, deferral of payments or extension of the maturity date.

In certain circumstances, the Bank may modify various terms of a loan to maximize the collection of amounts due.

Refer to Note 3 for a summary of modifications made to loans in 2025 and 2024.

Generally, the borrower is experiencing financial difficulties, so concessionary modification is granted to the borrower that otherwise would not be considered.

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In addition, the Bank's management also reviews and, where determined necessary, provides allowances for particular loans based upon (1) reviews of specific borrowers and (2) management’s assessment of areas that management considers are of higher credit risk, including loans that have been modified.

The extent to which collateral secures collateral-dependent loans is provided in the previous individually analyzed loans table and changes in the extent to which collateral secures its collateral-dependent loans are described below.

Collateral-dependent loans decreased $2.06 million from December 31, 2024 to December 31, 2025.

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A description of the Bank's credit quality indicators are discussed in Note 3 to the Company's Consolidated Financial Statements.

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The following table summarizes the Company's collateral dependent loans and non-performing assets as of December 31 for each of the years presented:

2024 2023 2022 2021 2020

(Amounts In Thousands)

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Loans are placed on nonaccrual status when management believes the collection of future principal and interest is not reasonably assured.

(2) Total TDR loans were $7.66, $10.20, and $13.22 million as of December 31, 2022, 2021, and 2020, respectively.

Included in the total nonaccrual loans were $1.75, $2.28, and $2.97 million of TDR loans as of December 31, 2022, 2021, and 2020, respectively.

(2) Total TDR loans were $7.66 million and $10.20 million as of December 31, 2022 and 2021, respectively.

Included in the total nonaccrual loans were $1.75 million and $2.28 million of TDR loans as of December 31, 2022 and 2021, respectively.

The ratio of allowance for credit losses to non-performing loans increased to 197.54% as of December 31, 2025 compared to 152.08% as of December 31, 2024.

The increase in 2024 is primarily due to the slight increase in the allowance for credit losses and the decrease in nonaccrual loans compared to 2023.

The increase in 2025 is primarily due to the increase in the allowance for credit losses and the decrease in nonaccrual loans compared to 2024.

The ratio of non-performing loans to total gross loans was 0.83% and 0.97% at December 31, 2025 and 2024, respectively.

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These levels compare favorably to the State of Iowa at 3.50% and the national unemployment level at 4.40% in December 2025 compared to 3.20% and 4.10%, respectively in December 2024.

The residential rental vacancy rates in 2023 and 2024 in Johnson and Linn County were estimated between 6.0% and 8.0%.

The State of Iowa vacancy rate is 7.30% and the national rate is 7.20% with the Midwest rate at 7.20%.

These vacancy rates one year ago were 7.9%, 6.6% and 6.8%, respectively, so are slightly elevated compared to the prior year.

These vacancy rates one year ago were 8.40%, 6.90% and 7.20%, respectively, so are slightly lowered compared to the prior year.

The Company continues to consider those vacancy rates among other factors in its current evaluation of the real estate portion of its loan portfolio.

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See Note 3 to the Company's Consolidated Financial Statements for additional disclosures on loans.

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SUMMARY OF CREDIT LOSS EXPERIENCE ON LOANS

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Net charge-offs/(net recoveries) to average net loans outstanding 0.49 % 0.45 % (0.04) % — % 0.01 % (0.02) % 1.34 % 0.08 %

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Agricultural Commercial and Financial Real Estate:

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Beginning balance $ 2,261 $ 4,269 $ 2,300 $ 3,433 $ 11,498 $ 10,498 $ 1,211 $ 35,470

Impact of adopting ASC 326 (328) 298 327 763 522 1,396 (232) 2,746

Charge-offs (357) (447) — (40) (729) (51) (589) (2,213)

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(Amounts In Thousands)

Allowance for loan losses:

Allowance for credit losses:

Beginning balance $ 2,508 $ 4,885 $ 2,319 $ 4,173 $ 12,368 $ 9,415 $ 1,402 $ 37,070

Impact of adopting ASC 326 (328) 298 327 763 522 1,396 (232) 2,746

Charge-offs (106) (136) (3) (1) (482) (265) (323) (1,316)

Recoveries 142 1,103 94 25 964 263 152 2,743

Provision 88 652 (355) 214 1,684 1,798 277 4,358

Credit loss (benefit) expense 45 (1,881) (437) (1,527) (1,874) (311) 212 (5,773)

Ending balance $ 2,261 $ 4,269 $ 2,300 $ 3,433 $ 11,498 $ 10,498 $ 1,211 $ 35,470

Net charge-offs/(net recoveries) to average net loans outstanding (0.04) % (0.38) % (0.05) % (0.01) % (0.05) % — % 0.20 % (0.05) %

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ALLOCATION OF THE ALLOWANCE FOR CREDIT LOSSES

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$ 49,410 100.00 % 100.00 % $ 41,440 100.00 % 100.00 %

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Amount % of Total Allowance % of Loans

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Year Ended December 31, $ Change % Change

2024 2023 2022 2024/2023 2023/2022 2024/2023 2023/2022

(Amounts in thousands)

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The decrease of $2.47 million in 2025 was the result of a combination of factors discussed below.

The net gain on the sale of loans was $2.34 million and $1.54 million for the years ended December 31, 2024 and 2023, respectively, an increase of 51.98% for the year ended December 31, 2024 compared to the same period in 2023.

The net gain on the sale of loans was $1.64 million and $2.34 million for the years ended December 31, 2025 and 2024, respectively, a decrease of 30.10% for the year ended December 31, 2025 compared to the same period in 2024.

The amount of the net gain on sale of secondary market mortgage loans in each year can vary significantly.

The volume of activity in these types of loans is directly related to the level of interest rates as well as the current origination and refinancing activity.

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servicing of the loans sold into the secondary market is not retained by the Company so these loans do not provide an ongoing stream of income.

Trust fees were $17.14 million and $15.26 million for the years ended December 31, 2025 and 2024, respectively, an increase of 12.32% for the year ended December 31, 2025 compared to the same period in 2024.

This is primarily driven by the increase in assets under management of $0.267 billion from $2.645 billion as of December 31, 2023 to $2.912 billion as of December 31, 2024 and increased investment transaction activity.

This is primarily driven by the increase in assets under management of $400.74 million from $2.912 billion as of December 31, 2024 to $3.313 billion as of December 31, 2025 and increased investment transaction activity.

The trust assets that are the most volatile are those that are held in common stocks, which amount to approximately 65% of assets under management.

In 2025, the Dow Jones Industrial Average increased 12.97%.

Other noninterest income increased $0.97 million in 2024 primarily due to the recognition of approximately $1.1 million of incentive and marketing bonuses from the VISA payment network growth agreement.

The Company completed a balance sheet repositioning related to its investment securities portfolio in December 2024.

This consisted of the sale of lower-yielding AFS debt securities with an amortized cost of $135.05 million, resulting in a pre-tax realized loss on the sale of $5.22 million, which was recorded in December of 2024.

The Company completed a balance sheet repositioning related to its investment securities portfolio at the end of 2025.

This consisted of multiple sales of lower-yielding AFS debt securities in 2025, resulting in a pre-tax realized loss on the sales of $9.63 million in total.

The sale of these securities was done for the sole purpose of an investment portfolio repositioning.

The securities sales executed as part of the Company’s balance sheet repositioning strategy in 2025 resulted in realized losses recognized in earnings, while also contributing to the improvement in accumulated other comprehensive loss and positioning the investment portfolio for enhanced yield and reduced interest rate sensitivity in future periods.

Management does not currently anticipate additional material balance-sheet repositioning losses of a similar magnitude.

Other noninterest income categories experienced marginal period-to-period fluctuations for the year ended December 31, 2025.

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Year Ended December 31, $ Change % Change

2024 2023 2022 2024/2023 2023/2022 2024/2023 2023/2022

(Amounts in thousands)

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Occupancy 4,688 4,266 4,408 422 (142) 9.89 (3.22)

Furniture and equipment 6,757 6,835 6,937 (78) (102) (1.14) (1.47)

Loss on disposal of property and equipment 1,071 — — 1,071 — 100.00 —

Furniture, equipment and software 7,456 6,757 6,835 699 (78) 10.34 (1.14)

Office supplies and postage 2,167 2,043 1,879 124 164 6.07 8.73

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The increase is $6.28 million or 7.83% in 2025 and an increase of $1.84 million or 2.34% in 2024.

Other noninterest expenses increased $1.78 million or 92.12% in 2024.

The primary reasons for the increase are increased deferred compensation expense of $0.62 million from the increased stock price valuation, increased operating losses from fraudulent ATM and debit card activities of $0.41 million, and the loss on disposal of property of $0.62 million.

Salaries and employee benefits increased $1.63 million or 3.65% in 2025 primarily due to annual salary adjustments.

Occupancy expenses increased $422,000 or 9.89% in 2025.

The primary reasons for the increase are increased bank building ground maintenance and bank building repairs and maintenance.

Furniture, equipment and software increased $699,000 or 10.34% in 2025.

This is primarily due to the yearly rate increase in software maintenance contracts.

The amounts for 2025 include a loss on disposal of property and equipment of $1.07 million as a result of prior period property and equipment disposals of $36.47 million which were corrected in the current period and are discussed further in Note 1.

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Outside services increased $2.49 million or 17.77% in 2025.

This is primarily driven by $1.11 million increase of professional fees related to internal control testing and improvements.

Additional increases were a $487,000 increase in debit card and data processing expenses as well as a $434,000 increase in other real estate owned losses over the prior year end.

Other noninterest expense categories experienced marginal period-to-period fluctuations for the year ended December 31, 2025.

Income tax expense was $15.19 million, $12.60 million, and $10.30 million for the years ended December 31, 2025, 2024 and 2023, respectively.

The Company's income tax expense in 2022 included a one-time increase in state income tax expense related to the 2022 enactment of changes in the Iowa bank franchise tax rates.

This legislation reduces the Iowa bank franchise tax rate applied to apportioned income for 2023 and future years and required the Company to reduce net deferred tax assets and increase income tax expense.

Income taxes as a percentage of income before income taxes were 20.07% in 2025, 20.93% in 2024 and 21.24% in 2023.

The amount of tax credits were $0.48 million for 2024, 2023, and 2022.

See Note 11 Income Taxes for additional information.

Effects of Inflation

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The Company's principal source of funds is deposits.

Other sources include loan principal repayments, proceeds from the maturity and sale of investment securities, federal funds purchased, advances from the FHLB, Bank Term Funding Program borrowings, advances on bank lines of credit, brokered deposit relationships and funds provided by operations.

Other sources include loan principal repayments, proceeds from the maturity and sale of investment securities, federal funds purchased, advances from the FHLB, advances on bank lines of credit, brokered deposit relationships and funds provided by operations.

Liquidity management is conducted on both a daily and a long-term basis.

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The Company had $64.33 million outstanding in FHLB borrowings as of December 31, 2025 with maturities through 2030.

The Company also had $437.64 million outstanding in FHLB federal funds purchased as of December 31, 2024.

The Company also had $586.88 million outstanding in FHLB daily reset advances as of December 31, 2025.

In addition, the Company had $175.00 million in borrowing capacity available through secured and unsecured lines of credit with correspondent banks with no borrowings under those federal funds lines as of December 31, 2025.

The Company had $109.00 million outstanding in Bank Term Funding Program borrowings as of December 31, 2024.

During 2025 the Company paid off its outstanding balance of $109.00 million in the Bank Term Funding Program.

Finally, the Company had $105.54 million in borrowing capacity available through the Federal Reserve Discount Window with no borrowings as of December 31, 2025.

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As of December 31, 2025 and 2024, stockholders' equity, before deducting for the maximum cash obligation related to the ESOP, was $602.71 million and $540.94 million, respectively.

This measure of stockholders’ equity as a percent of total assets was 11.79% at December 31, 2024 and 11.87% at December 31, 2023.

This measure of stockholders’ equity as a percent of total assets

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was 12.97% at December 31, 2025 and 11.79% at December 31, 2024.

As of December 31, 2025, total equity, after deducting the maximum cash value related to the ESOP, was 11.80% of assets compared to 10.74% of assets at the prior year end.

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For more information regarding regulatory capital requirements, see the section under Part I, Item 1 to this 10-K captioned “Supervision and Regulation.”

On a consolidated basis, 2024 cash flows from operations provided $55.54 million, proceeds from maturities of investments available for sale provided $243.71 million and proceeds from FHLB borrowings, federal funds purchased and Bank Term Funding Program borrowings provided $413.26 million.

These cash flows were invested $542.83 million in purchases of investment securities and $3.66 million of loans made to customers.

On a consolidated basis, 2025 cash flows from operations provided $68.81 million, proceeds from maturities of investments available for sale provided $167.28 million and proceeds from FHLB borrowings, FHLB daily reset advances and Bank Term Funding Program borrowings provided $1.743 billion.

These cash flows were invested in multiple areas including $250.17 million in purchases of investment securities and $130.48 million of loans made to customers.

In addition, $3.67 million was used to purchase property and equipment.

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In addition, the Bank has arranged $175.00 million of credit lines at three banks.

The borrowings under these credit lines would be secured by the Bank’s investment securities.

Other liquidity sources include a $109.09 million line of credit with the Federal Reserve Bank of Chicago, and various sources of brokered deposits.

Investment securities are pledged to secure a credit line of $50.00 million, while the other credit lines are unsecured.

Other liquidity sources include various sources of brokered deposits.

The following table shows outstanding balances, weighted average interest rates at year end, maximum month-end balances, average month-end balances and weighted average interest rates of Federal Home Loan Bank borrowings during 2025, 2024 and 2023:

2024 2023 2022

(Amounts In Thousands)

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Weighted average interest rate for the year 4.45 % 5.22 % 5.55 %

The following tables show outstanding balances, weighted average interest rates at year end, maximum month-end balances, average month-end balances and weighted average interest rates of federal funds purchased and bank term funding program borrowings during 2024, 2023 and 2022:

2024 2023 2022

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The following tables show outstanding balances, weighted average interest rates at year end, maximum month-end balances, average month-end balances and weighted average interest rates of FHLB daily reset advances and bank term funding program borrowings during 2025, 2024 and 2023:

Bank Term Funding Program (Amounts In Thousands)

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Weighted average interest rate for the year 5.17 % 4.77 % 5.29 %

Federal Funds Purchased

FHLB Daily Reset Advances

Outstanding balance as of December 31 $ 586,882 $ 437,636 $ —

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Property and equipment may be acquired in cash purchases, or they may be financed if favorable terms are available.

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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-K

Item 7. Management’s Discussion and Analysis