3 unchanged sentences
(Amounts in thousands except share data)
−Removed: September 30, 2024 December 31, 2023
+Added: March 31, 2025 December 31, 2024
Cash and due from banks $ 6,344 $ 9,249
48 unchanged sentences
(Amounts in thousands except share and per share data)
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023
+Added: Three Months Ended March 31,
Interest Income
11 unchanged sentences
Benefit for credit losses - debt securities held to maturity ( 20 ) ( 62 )
−Removed: (Benefit) Provision for credit losses - off-balance sheet commitments ( 439 ) 111 ( 398 ) 1,098
+Added: Benefit for credit losses - off-balance sheet commitments ( 168 ) ( 72 )
Net Interest Income After Provision for Credit Losses 13,163 18,286
3 unchanged sentences
Loan servicing asset revaluation ( 1,181 ) ( 434 )
−Removed: Mortgage banking activities — — — 76
Gain on sale of loans 8,647 6,536
12 unchanged sentences
Income Before Income Taxes 34 5,610
−Removed: Income Tax Provision (Benefit) 620 ( 326 ) 1,267 ( 2,892 )
+Added: Income Tax (Benefit) Provision ( 909 ) 429
Net Income $ 943 $ 5,181
8 unchanged sentences
First Internet Bancorp
−Removed: Condensed Consolidated Statements of Comprehensive Income (Loss) – Unaudited
+Added: Condensed Consolidated Statements of Comprehensive Income – Unaudited
(Amounts in thousands)
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 2024 2023
+Added: Three Months Ended March 31,
Net income $ 943 $ 5,181
−Removed: Other comprehensive income (loss)
+Added: Other comprehensive income
Securities available-for-sale
7 unchanged sentences
Cash flow hedges
−Removed: Net unrealized holding (losses) gains on cash flow hedging derivatives recorded within other comprehensive income (loss) before income tax ( 2,670 ) 740 ( 2,030 ) 664
−Removed: Income tax (benefit) provision ( 614 ) 171 ( 467 ) 153
−Removed: Net effect on other comprehensive (loss) income ( 2,056 ) 569 ( 1,563 ) 511
+Added: Net unrealized holding gains on cash flow hedging derivatives recorded within other comprehensive income before income tax — 902
+Added: Income tax provision — 207
+Added: Net effect on other comprehensive income — 695
Total other comprehensive income (loss) 3,496 ( 727 )
−Removed: Comprehensive income (loss) $ 13,251 $ ( 4,602 ) $ 22,995 $ ( 3,287 )
+Added: Comprehensive income $ 4,439 $ 4,454
See Notes to Condensed Consolidated Financial Statements
1 unchanged sentence
Condensed Consolidated Statements of Changes in Shareholders’ Equity - Unaudited
−Removed: Nine Months Ended September 30, 2024 and 2023
+Added: Three Months Ended March 31, 2025 and 2024
(Amounts in thousands except share and per share data)
9 unchanged sentences
Recognition of the fair value of share-based compensation 1 — — 1
−Removed: Repurchased shares of common stock ( 10,500 )
−Removed: ( 283 ) — — ( 283 )
−Removed: Excise tax on repurchase of common stock ( 3 ) — — ( 3 )
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units 2 — — 2
Common stock redeemed for the net settlement of share-based awards ( 224 ) — — ( 224 )
−Removed: Balance, September 30, 2024 $ 185,631 $ 223,824 $ ( 24,326 ) $ 385,129
+Added: Balance, March 31, 2025 $ 185,873 $ 231,031 $ ( 29,157 ) $ 387,747
Balance, January 1, 2024 $ 184,700 $ 207,470 $ ( 29,375 ) $ 362,795
−Removed: Impact of adoption of new accounting standards 1
−Removed: — ( 4,491 ) — ( 4,491 )
Net income — 5,181 — 5,181
5 unchanged sentences
( 283 ) — — ( 283 )
−Removed: Excise tax on repurchase of common stock ( 85 ) — — ( 85 )
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units 2 — — 2
Common stock redeemed for the net settlement of share-based awards ( 142 ) — — ( 142 )
−Removed: Balance, September 30, 2023 $ 185,085 $ 203,856 $ ( 41,197 ) $ 347,744
−Removed: 1 Reflects the impact of adopting Accounting Standards Update (“ASU”) 2016-13.
−Removed: See Notes to Condensed Consolidated Financial Statements
−Removed: First Internet Bancorp
−Removed: Condensed Consolidated Statements of Changes in Shareholders’ Equity - Unaudited
−Removed: Three Months Ended September 30, 2024 and 2023
−Removed: (Amounts in thousands except share and per share data)
−Removed: Stock Retained
−Removed: Earnings Accumulated
−Removed: Comprehensive
−Removed: Shareholders’
−Removed: Balance, July 1, 2024 185,175 $ 217,365 $ ( 30,587 ) $ 371,953
−Removed: Net income — 6,990 — 6,990
−Removed: Other comprehensive income — — 6,261 6,261
−Removed: Dividends declared ($ 0.06 per share)
−Removed: — ( 531 ) — ( 531 )
−Removed: Recognition of the fair value of share-based compensation 454 — — 454
−Removed: Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units 2 — — 2
−Removed: Balance, September 30, 2024 $ 185,631 $ 223,824 $ ( 24,326 ) $ 385,129
−Removed: Balance, July 1, 2023 $ 186,545 $ 200,973 $ ( 33,186 ) $ 354,332
−Removed: Net income — 3,409 — 3,409
−Removed: Other comprehensive loss — — ( 8,011 ) ( 8,011 )
−Removed: Dividends declared ($ 0.06 per share)
−Removed: — ( 526 ) — ( 526 )
−Removed: Recognition of the fair value of share-based compensation 386 — — 386
−Removed: Repurchased shares of common stock ( 97,834 )
−Removed: ( 1,828 ) ( 1,828 )
−Removed: Excise tax on repurchase of common stock ( 18 ) — — ( 18 )
−Removed: Balance, September 30, 2023 $ 185,085 $ 203,856 $ ( 41,197 ) $ 347,744
+Added: Balance, March 31, 2024 $ 184,720 $ 212,121 $ ( 30,102 ) $ 366,739
See Notes to Condensed Consolidated Financial Statements
2 unchanged sentences
(Amounts in thousands)
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Operating Activities
Net income $ 943 $ 5,181
−Removed: Adjustments to reconcile net income to net cash used in operating activities:
+Added: Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 1,070 1,866
6 unchanged sentences
Gain on sale of other real estate owned ( 19 ) —
−Removed: Decrease in fair value of loans held-for-sale — 143
−Removed: Loss on derivatives 768 362
−Removed: Gain on bank-owned life insurance ( 149 ) —
+Added: (Gain) loss on derivatives ( 216 ) 1,224
Loan servicing asset revaluation 1,181 434
1 unchanged sentence
Net change in accrued expenses and other liabilities ( 2,141 ) ( 1,497 )
−Removed: Net cash provided by (used in) operating activities 19,147 ( 624 )
+Added: Net cash provided by operating activities 32,825 2,791
Investing Activities
6 unchanged sentences
Purchase of premises and equipment ( 184 ) ( 940 )
−Removed: Proceeds from bank-owned life insurance 737 —
Loans purchased ( 36,907 ) ( 30,451 )
9 unchanged sentences
Net cash provided by financing activities 111,665 165,842
−Removed: Net Increase in Cash and Cash Equivalents 306,581 264,653
+Added: Net (Decrease) Increase in Cash and Cash Equivalents ( 71,956 ) 75,366
Cash and Cash Equivalents, Beginning of Period 466,410 405,898
16 unchanged sentences
In our opinion, all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation have been included.
−Removed: The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results expected for the year ending December 31, 2024 or any other period.
−Removed: The September 30, 2024 condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the First Internet Bancorp Annual Report on Form 10-K for the year ended December 31, 2023.
+Added: The results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results expected for the year ending December 31, 2025 or any other period.
+Added: The March 31, 2025 condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the First Internet Bancorp Annual Report on Form 10-K for the year ended December 31, 2024.
The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, or assumptions that could have a material effect on the carrying value of certain assets and liabilities.
These estimates, judgments, and assumptions affect the amounts reported in the condensed consolidated financial statements and the disclosures provided.
−Removed: The determination of the allowance for credit losses, income taxes, valuations and impairments of investment securities and goodwill, as well as fair value measurements of derivatives and loans held-for-sale are highly dependent upon management’s estimates, judgments, and assumptions, and changes in any of these could have a significant impact on the condensed consolidated financial statements.
+Added: The Company utilizes processes that involve the use of significant estimates and the judgment of management in determining the amount of the Company’s allowance for credit losses (“ACL”) and changes in any of these could have a significant impact on the condensed consolidated financial statements.
The condensed consolidated financial statements include the accounts of First Internet Bancorp (the “Company”), its wholly owned subsidiary, First Internet Bank of Indiana (the “Bank”), and the Bank’s three wholly owned subsidiaries, First Internet Public Finance Corp., JKH Realty Services, LLC and SPF15, Inc.
4 unchanged sentences
Earnings per share of common stock are based on the weighted-average number of basic shares and dilutive shares outstanding during the period.
−Removed: The following is a reconciliation of the weighted-average common shares for the basic and diluted earnings per share computations for the three and nine months ended September 30, 2024 and 2023.
−Removed: (dollars in thousands, except share and per share data) Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 2024 2023
+Added: The following is a reconciliation of the weighted-average common shares for the basic and diluted earnings per share computations for the three months ended March 31, 2025 and 2024.
+Added: (dollars in thousands, except share and per share data) Three Months Ended March 31,
Basic earnings per share
10 unchanged sentences
1 Potential dilutive common shares are excluded from the computation of diluted EPS in the periods where the effect would be antidilutive.
−Removed: There were no antidilutive shares for both the three and nine months ended September 30, 2024.
−Removed: Excluded from the computation of diluted EPS were weighted-average antidilutive shares totaling 12,713 and 28,363 for the three and nine months ended September 30, 2023, respectively.
−Removed: The following tables summarize securities available-for-sale and securities held-to-maturity as of September 30, 2024 and December 31, 2023.
−Removed: September 30, 2024
−Removed: Amortized Gross Unrealized Fair
−Removed: (in thousands) Cost Gains Losses Value
+Added: There were 3,916 weighted-average antidilutive shares excluded from the computation of diluted EPS for the three months ended March 31, 2025 and no antidilutive shares for the three months ended March 31, 2024.
+Added: The following tables summarize securities available-for-sale and securities held-to-maturity as of March 31, 2025 and December 31, 2024.
+Added: March 31, 2025
+Added: Amortized Cost Gross Unrealized Fair Value
+Added: (amounts in thousands) Gains Losses
Securities available-for-sale
8 unchanged sentences
Total available-for-sale $ 716,860 $ 1,725 $ ( 36,800 ) $ 681,785
−Removed: September 30, 2024
+Added: March 31, 2025
Amortized Cost Gross Unrealized Fair Value Allowance for Credit Losses Net Carrying Value
−Removed: (in thousands) Gains Losses
+Added: (amounts in thousands) Gains Losses
Securities held-to-maturity
4 unchanged sentences
Total held-to-maturity $ 276,676 $ 449 $ ( 18,009 ) $ 259,116 $ ( 134 ) $ 276,542
−Removed: 1 Includes $ 0.3 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of September 30, 2024 .
+Added: 1 Includes $ 0.2 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of March 31, 2025.
December 31, 2024
−Removed: Amortized Gross Unrealized Fair
−Removed: (in thousands) Cost Gains Losses Value
+Added: Amortized Cost Gross Unrealized Fair Value
+Added: (amounts in thousands) Gains Losses
Securities available-for-sale
10 unchanged sentences
December 31, 2024
−Removed: Amortized Gross Unrealized Fair Allowance for Credit Losses Net Carrying Value
−Removed: (in thousands) Cost Gains Losses Value
+Added: Amortized Cost Gross Unrealized Fair Value Allowance for Credit Losses Net Carrying Value
+Added: (amounts in thousands) Gains Losses
Securities held-to-maturity
5 unchanged sentences
1 Includes $ 0.3 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of December 31, 2024.
−Removed: Accrued interest receivable on AFS and HTM securities at September 30, 2024 was $ 2.8 million and $ 1.2 million, respectively, compared to $ 2.9 million and $ 1.2 million, respectively, at December 31, 2023, and is included in accrued interest receivable on the condensed consolidated balance sheet.
+Added: Accrued interest receivable on AFS and HTM securities at March 31, 2025 was $ 2.7 million and $ 1.1 million, respectively, compared to $ 2.8 million and $ 1.1 million, respectively, at December 31, 2024, and is included in accrued interest receivable on the condensed consolidated balance sheet.
The Company elected to exclude all accrued interest receivable from securities when estimating credit losses.
−Removed: At both September 30, 2024 and December 31, 2023, over 94 % of mortgage-backed securities (including both AFS and HTM) held by the Company are issued by U.S.
+Added: At March 31, 2025 and December 31, 2024, approximately 94 % and 92 %, respectively, of mortgage-backed securities (including both AFS and HTM) held by the Company are issued by U.S.
government-sponsored entities and agencies.
5 unchanged sentences
The Company also evaluated its HTM securities that are in an unrealized loss position and considered issuer bond ratings, historical loss rates for bond ratings and economic forecasts.
−Removed: The ACL on HTM securities at September 30, 2024 was $ 0.2 million.
−Removed: The carrying value of securities at September 30, 2024 is shown below by their contractual maturity date.
+Added: The ACL on HTM securities at March 31, 2025 was $ 0.1 million, compared to $ 0.2 million at December 31, 2024.
+Added: The carrying value of securities at March 31, 2025 is shown below by their contractual maturity date.
Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Available-for-Sale
−Removed: (in thousands) Amortized
+Added: (amounts in thousands) Amortized
Within one year $ 10,370 $ 10,353
9 unchanged sentences
Held-to-Maturity
−Removed: (in thousands) Amortized
+Added: (amounts in thousands) Amortized
Within one year $ 1,705 $ 1,691
6 unchanged sentences
Total $ 276,676 $ 259,116
−Removed: There were no gross gains or losses resulting from the sale of available-for-sale securities during the three and nine months ended September 30, 2024 and September 30, 2023, respectively.
+Added: No available-for-sale securities were sold during the three months ended March 31, 2025 and March 31, 2024.
+Added: As such, the Company did not realize any gains or losses related to the sale of available-for-sale securities during either time period.
Certain investments in debt securities are reported in the condensed consolidated financial statements at an amount less than their historical cost.
−Removed: The total fair value of these investments at September 30, 2024 and December 31, 2023 was $ 586.9 million and $ 578.9 million, which was approximately 71 % and 85 %, respectively, of the Company’s AFS and HTM securities portfolios.
−Removed: As of September 30, 2024, the Company’s security portfolio consisted of 573 securities, of which 442 were in an unrealized loss position.
−Removed: As of December 31, 2023, the Company’s security portfolio consisted of 512 securities, of which 434 were in an unrealized loss position.
+Added: The total fair value of these investments at March 31, 2025 and December 31, 2024 was $ 677.0 million and $ 603.9 million, which was approximately 71 % and 72 %, respectively, of the Company’s AFS and HTM securities portfolios.
+Added: As of March 31, 2025, the Company’s security portfolio consisted of 606 positions, of which 487 were in an unrealized loss position.
+Added: As of December 31, 2024, the Company’s security portfolio consisted of 579 positions, of which 482 were in an unrealized loss position.
The unrealized losses are related to the categories noted below.
3 unchanged sentences
The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments.
−Removed: The Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be upon maturity.
−Removed: Agency Mortgage-Backed and Private Label Mortgage-Backed Securities
−Removed: The unrealized losses on the Company’s investments in agency mortgage-backed and private label mortgage-backed securities were caused primarily by interest rate changes.
+Added: The Company does not intend to sell the investments, and it is not more likely than not that the Company will be required to sell the investments, before recovery of their amortized cost basis, which may be upon maturity.
+Added: Agency Mortgage-Backed, Private Label Mortgage-Backed Securities and Asset-Backed Securities
+Added: The unrealized losses on the Company’s investments in agency mortgage-backed, private label mortgage-backed securities and asset-backed securities were caused primarily by interest rate changes.
The Company expects to recover the amortized cost basis over the terms of the securities.
−Removed: The Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be upon maturity.
−Removed: The following tables show the securities portfolio’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 September 30, 2024 and December 31, 2023.
−Removed: September 30, 2024
+Added: The Company does not intend to sell the investments, and it is not more likely than not that the Company will be required to sell the investments, before recovery of their amortized cost basis, which may be upon maturity.
+Added: The following tables show the securities portfolio’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 March 31, 2025 and December 31, 2024.
+Added: March 31, 2025
Less Than 12 Months 12 Months or Longer Total
−Removed: (in thousands) Fair
+Added: (amounts in thousands) Fair
Value Unrealized
12 unchanged sentences
Less Than 12 Months 12 Months or Longer Total
−Removed: (in thousands) Fair
+Added: (amounts in thousands) Fair
Value Unrealized
12 unchanged sentences
Total $ 100,802 $ ( 444 ) $ 298,536 $ ( 40,597 ) $ 399,338 $ ( 41,041 )
−Removed: The following tables summarize ratings for the Company’s HTM portfolio as of September 30, 2024 and December 31, 2023.
−Removed: September 30, 2024
+Added: The following tables summarize ratings for the Company’s HTM portfolio as of March 31, 2025 and December 31, 2024.
+Added: March 31, 2025
Held-to-Maturity
−Removed: (in thousands) Municipal Securities Mortgage-Backed Securities - Residential Mortgage-Backed Securities - Commercial Corporate Securities Total
+Added: (amounts in thousands) Municipal Securities Mortgage-Backed Securities - Residential Mortgage-Backed Securities - Commercial Corporate Securities Total
AAA equivalent - agency $ — $ 232,235 $ 5,687 $ — $ 237,922
3 unchanged sentences
A2/A — — — 5,000 5,000
−Removed: A3/A- — — — 4,501 4,501
Baa1/BBB+ — — — 8,500 8,500
5 unchanged sentences
Held-to-Maturity
−Removed: (in thousands) Municipal Securities Mortgage-Backed Securities - Residential Mortgage-Backed Securities - Commercial Corporate Securities Total
+Added: (amounts in thousands) Municipal Securities Mortgage-Backed Securities - Residential Mortgage-Backed Securities - Commercial Corporate Securities Total
AAA equivalent - agency $ — $ 201,840 $ 5,705 $ — $ 207,545
1 unchanged sentence
Aa2/AA 2,175 — — — 2,175
−Removed: A1/A+ 1,794 — — — 1,794
−Removed: A2/A 643 — — 5,000 5,643
+Added: Aa3/AA- 1,793 — — — 1,793
A2/A — — — 5,000 5,000
4 unchanged sentences
Total $ 12,846 $ 201,840 $ 5,705 $ 29,559 $ 249,950
−Removed: Loan balances as of September 30, 2024 and December 31, 2023 are summarized in the table below.
+Added: There were no amounts reclassified from accumulated other comprehensive loss to the consolidated statements of income during the three months ended March 31, 2025 and December 31, 2024.
+Added: Loan balances as of March 31, 2025 and December 31, 2024 are summarized in the table below.
Categories of loans include:
−Removed: (in thousands) September 30, 2024 December 31, 2023
+Added: (amounts in thousands) March 31, 2025 December 31, 2024
Commercial loans
7 unchanged sentences
Small business lending 1
+Added: 353,408 331,914
Franchise finance 514,700 536,909
6 unchanged sentences
Total commercial and consumer loans 4,229,755 4,143,966
−Removed: Net deferred loan origination fees/costs and premiums/discounts on purchased loans and other 1
+Added: Net deferred loan origination costs, premiums and discounts on purchased loans, and other 2
24,657 26,680
2 unchanged sentences
Net loans $ 4,207,174 $ 4,125,877
−Removed: 1 Includes carrying value adjustments of $ 24.1 million and $ 27.8 million related to terminated interest rate swaps associated with public finance loans as of September 30, 2024 and December 31, 2023, respectively.
−Removed: Risk characteristics of each loan portfolio segment are as follows:
+Added: 1 Balances include $ 37.6 million and $ 34.0 million that is guaranteed by the U.S.
+Added: government as of March 31, 2025 and December 31, 2024, respectively.
+Added: 2 Includes carrying value adjustment of $ 22.1 million and $ 22.9 million related to terminated interest rate swaps associated with public finance loans as of March 31, 2025 and December 31, 2024, respectively.
+Added: The general risk characteristics specific to each loan portfolio segment are as follows:
Commercial and Industrial:
115 unchanged sentences
A home improvement loan generally is charged off no later than when it is 90 days past due as to principal or interest.
−Removed: The following tables present changes in the balance of the ACL during the three and nine months ended September 30, 2024 and 2023.
−Removed: (in thousands) Three Months Ended September 30, 2024
−Removed: Allowance for credit losses:
−Removed: Balance, Beginning of Period (Credit) Provision Charged to Expense Losses
−Removed: Charged Off Recoveries Balance,
−Removed: End of Period
−Removed: Commercial and industrial $ 1,389 $ ( 166 ) $ — $ 3 $ 1,226
−Removed: Owner-occupied commercial real estate 561 ( 9 ) — — 552
−Removed: Investor commercial real estate 1,172 ( 29 ) — — 1,143
−Removed: Construction 3,140 ( 357 ) — — 2,783
−Removed: Single tenant lease financing 8,256 ( 1,562 ) — — 6,694
−Removed: Public finance 742 ( 44 ) — — 698
−Removed: Healthcare finance 1,809 ( 87 ) — — 1,722
−Removed: Small business lending 11,993 3,346 ( 1,309 ) 169 14,199
−Removed: Franchise finance 5,991 1,963 — — 7,954
−Removed: Residential mortgage 2,112 67 ( 17 ) — 2,162
−Removed: Home equity 118 ( 6 ) — 3 115
−Removed: Other consumer loans 6,122 742 ( 425 ) 34 6,473
−Removed: Total $ 43,405 $ 3,858 $ ( 1,751 ) $ 209 $ 45,721
−Removed: (in thousands) Nine Months Ended September 30, 2024
−Removed: Allowance for credit losses:
−Removed: Balance, Beginning of Period (Credit) Provision Charged to Expense Losses
−Removed: Charged Off Recoveries Balance,
−Removed: End of Period
−Removed: Commercial and industrial $ 2,185 $ ( 966 ) $ — $ 7 $ 1,226
−Removed: Owner-occupied commercial real estate 825 ( 273 ) — — 552
−Removed: Investor commercial real estate 1,311 ( 168 ) — — 1,143
−Removed: Construction 2,167 616 — — 2,783
−Removed: Single tenant lease financing 8,129 ( 1,240 ) ( 195 ) — 6,694
−Removed: Public finance 1,372 ( 674 ) — — 698
−Removed: Healthcare finance 1,976 ( 254 ) — — 1,722
−Removed: Small business lending 6,532 9,564 ( 2,171 ) 274 14,199
−Removed: Franchise finance 6,363 2,168 ( 577 ) — 7,954
−Removed: Residential mortgage 2,054 193 ( 86 ) 1 2,162
−Removed: Home equity 171 ( 62 ) — 6 115
−Removed: Other consumer loans 5,689 1,456 ( 760 ) 88 6,473
−Removed: Total $ 38,774 $ 10,360 $ ( 3,789 ) $ 376 $ 45,721
−Removed: (in thousands) Three Months Ended September 30, 2023
+Added: The following tables present changes in the balance of the ACL during the three months ended March 31, 2025 and 2024.
+Added: (amounts in thousands) Three Months Ended March 31, 2025
Allowance for credit losses:
−Removed: Balance, Beginning of Period (Credit) Provision Charged to Expense Losses
+Added: Balance, Beginning of Period Provision (Credit) Charged to Expense Losses
Charged Off Recoveries Balance,
13 unchanged sentences
Total $ 44,769 $ 12,121 $ ( 9,841 ) $ 189 $ 47,238
−Removed: (in thousands) Nine Months Ended September 30, 2023
+Added: (amounts in thousands) Three Months Ended March 31, 2024
Allowance for credit losses:
−Removed: Balance, Beginning of Period Adoption of CECL (Credit) Provision Charged to Expense Losses
+Added: Balance, Beginning of Period Provision (Credit) Charged to Expense Losses
Charged Off Recoveries Balance,
13 unchanged sentences
Total $ 38,774 $ 2,582 $ ( 533 ) $ 68 $ 40,891
−Removed: Accrued interest receivable on loans totaled $ 27.8 million and $ 26.7 million at September 30, 2024 and December 31, 2023, respectively, and is excluded from the estimate of credit losses.
+Added: Accrued interest receivable on loans totaled $ 24.0 million and $ 23.8 million at March 31, 2025 and December 31, 2024, respectively, and is excluded from the estimate of credit losses.
The Company made the accounting policy election to not measure an ACL for accrued interest receivable.
2 unchanged sentences
This reserve is maintained at a level management believes to be sufficient to absorb losses arising from unfunded loan commitments.
−Removed: The day one entry for off-balance sheet commitments resulted in a reserve of $ 2.5 million.
The adequacy of the reserve for unfunded commitments is determined quarterly based on methodology similar to the methodology for determining the ACL.
−Removed: The following tables detail activity in the provision (benefit) for credit losses on off-balance sheet commitments for the three and nine months ended September 30, 2024.
−Removed: (in thousands) Balance
−Removed: June 30, 2024 Provision (Benefit) for credit losses Balance
−Removed: September 30, 2024
−Removed: Off-balance sheet commitments
−Removed: Commercial loans
−Removed: Commercial and industrial $ 188 $ 24 $ 212
−Removed: Owner-occupied commercial real estate — 24 24
−Removed: Investor commercial real estate — 10 10
−Removed: Construction 3,420 ( 556 ) 2,864
−Removed: Single tenant lease financing — 28 28
−Removed: Small business lending 131 31 162
−Removed: Total commercial loans 3,739 ( 439 ) 3,300
−Removed: Consumer loans
−Removed: Residential mortgage 3 ( 1 ) 2
−Removed: Home equity 33 1 34
−Removed: Other consumer 11 — 11
−Removed: Total consumer loans 47 — 47
−Removed: Total allowance for off-balance sheet commitments $ 3,786 $ ( 439 ) $ 3,347
−Removed: (in thousands) Balance
−Removed: December 31, 2023 Provision (Benefit) for credit losses Balance
−Removed: September 30, 2024
+Added: The following tables detail activity in the (benefit) provision for credit losses on off-balance sheet commitments for the three ended March 31, 2025 and 2024.
+Added: (amounts in thousands) Balance
+Added: December 31, 2024 (Benefit) Provision for Credit Losses Balance
+Added: March 31, 2025
Off-balance sheet commitments
13 unchanged sentences
Total allowance for off-balance sheet commitments $ 2,140 $ ( 168 ) $ 1,972
−Removed: The following table details activity in the provision for credit losses on off-balance sheet commitments for the three and nine months ended September 30, 2023.
−Removed: (in thousands) Balance
−Removed: June 30, 2023 Provision (Benefit) for credit losses Balance
−Removed: September 30, 2023
−Removed: Off-balance sheet commitments
−Removed: Commercial loans
−Removed: Commercial and industrial $ 188 $ 18 $ 206
−Removed: Owner-occupied commercial real estate 8 1 9
−Removed: Investor commercial real estate 20 ( 3 ) 17
−Removed: Construction 2,897 ( 8 ) 2,889
−Removed: Small business lending 242 148 390
−Removed: Total commercial loans 3,355 156 3,511
−Removed: Consumer loans
−Removed: Residential mortgage 59 ( 34 ) 25
−Removed: Home equity 63 ( 9 ) 54
−Removed: Other consumer 14 ( 2 ) 12
−Removed: Total consumer loans 136 ( 45 ) 91
−Removed: Total allowance for off-balance sheet commitments $ 3,491 $ 111 $ 3,602
−Removed: (in thousands) Pre-ASC 326 Adoption Impact of ASC 326 Adoption Provision (Benefit) for credit losses Balance
−Removed: September 30, 2023
+Added: (amounts in thousands) Balance
+Added: December 31, 2023 (Benefit) Provision for Credit Losses Balance
+Added: March 31, 2024
Off-balance sheet commitments
4 unchanged sentences
Construction 2,889 381 3,270
−Removed: Healthcare finance — 2 ( 2 ) —
Small business lending 541 ( 382 ) 159
6 unchanged sentences
Total allowance for off-balance sheet commitments $ 3,745 $ ( 72 ) $ 3,673
−Removed: The Company utilizes a risk grading matrix to assign a risk grade to each of its commercial loans.
+Added: The Company utilizes a risk grading matrix to assign a risk grade to each of its commercial loans, which are evaluated annually.
A description of the general characteristics of the risk grades is as follows:
13 unchanged sentences
• “Nonperforming” - Loans that are 90 days delinquent or for which the full collection of principal and interest may be in doubt.
−Removed: The following tables present the credit risk profile of the Company’s commercial and consumer loan portfolios by loan class and by year of origination for the years indicated based on rating category and payment activity as of September 30, 2024 and December 31, 2023.
−Removed: September 30, 2024
+Added: The following tables present the credit risk profile of the Company’s commercial and consumer loan portfolios by loan class and by year of origination for the years indicated based on rating category and payment activity as of March 31, 2025 and December 31, 2024.
+Added: March 31, 2025
Term Loans (amortized cost basis by origination year) Revolving loans amortized cost basis Revolving loans converted to term
−Removed: (in thousands) 2024 2023 2022 2021 2020 Prior Total
+Added: (amounts in thousands) 2025 2024 2023 2022 2021 Prior Total
Commercial and industrial
43 unchanged sentences
Year-to-date gross charge-offs — — — — — — — — —
−Removed: September 30, 2024
+Added: March 31, 2025
Term Loans (amortized cost basis by origination year) Revolving loans amortized cost basis Revolving loans converted to term
−Removed: (in thousands) 2024 2023 2022 2021 2020 Prior Total
+Added: (amounts in thousands)
+Added: 2025 2024 2023 2022 2021 Prior Total
Healthcare finance
36 unchanged sentences
Total year-to-date gross charge-offs $ — $ 1,131 $ 4,493 $ 3,480 $ 546 $ 191 $ — $ — $ 9,841
−Removed: 1 Balance in “Substandard” is partially guaranteed by the U.S.
December 31, 2024
Term Loans (amortized cost basis by origination year) Revolving loans amortized cost basis Revolving loans converted to term
−Removed: (in thousands) 2023 2022 2021 2020 2019 Prior Total
+Added: (amounts in thousands) 2024 2023 2022 2021 2020 Prior Total
Commercial and industrial
45 unchanged sentences
Term Loans (amortized cost basis by origination year) Revolving loans amortized cost basis Revolving loans converted to term
−Removed: (in thousands) 2023 2022 2021 2020 2019 Prior Total
+Added: (amounts in thousands) 2024 2023 2022 2021 2020 Prior Total
Healthcare finance
36 unchanged sentences
Total year-to-date gross charge-offs $ 1,250 $ 6,013 $ 3,439 $ 1,047 $ 620 $ 901 $ — $ — $ 13,270
−Removed: 1 Balance in “Substandard” is partially guaranteed by the U.S.
−Removed: The following tables present the Company’s loan portfolio delinquency analysis as of September 30, 2024 and December 31, 2023.
−Removed: September 30, 2024
−Removed: (in thousands) 30-59
+Added: The following tables present the Company’s loan portfolio delinquency, including nonperforming loans, as of March 31, 2025 and December 31, 2024.
+Added: March 31, 2025
+Added: (amounts in thousands) 30-59
Past Due 60-89
10 unchanged sentences
Small business lending 9,878 5,032 7,019 21,929 331,479 353,408
−Removed: 3,180 1,755 6,779 11,714 286,931 298,645
Franchise finance 8,818 7,078 13,466 29,362 485,338 514,700
3 unchanged sentences
Total $ 20,099 $ 13,991 $ 24,108 $ 58,198 $ 4,171,557 $ 4,229,755
−Removed: 1 Balance is partially guaranteed by the U.S.
December 31, 2024
−Removed: (in thousands) 30-59
+Added: (amounts in thousands) 30-59
Past Due 60-89
10 unchanged sentences
Small business lending 11,817 1,310 5,587 18,714 313,200 331,914
−Removed: 2,680 57 2,794 5,531 212,975 218,506
Franchise finance 9,431 3,279 9,849 22,559 514,350 536,909
3 unchanged sentences
Total $ 22,090 $ 6,496 $ 19,278 $ 47,864 $ 4,096,102 $ 4,143,966
−Removed: 1 Balance is partially guaranteed by the U.S.
Loans are reclassified to a non-accruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing interest.
3 unchanged sentences
A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of nine consecutive months of performance.
−Removed: The Company recognized less than $ 0.1 million in interest income on nonaccrual loans for both the three and nine months ended September 30, 2024 and September 30, 2023.
The following table summarizes the Company’s nonaccrual loans and loans past due 90 days or more and still accruing by loan class for the periods indicated:
−Removed: September 30, 2024 December 31, 2023
−Removed: (in thousands) Nonaccrual Loans Nonaccrual Loans with no Allowance for Credit Losses Total Loans
+Added: March 31, 2025 December 31, 2024
+Added: (amounts in thousands) Nonaccrual Loans Nonaccrual Loans with No Allowance for Credit Losses Total Loans
Accruing Nonaccrual Loans Nonaccrual Loans with No Allowance for Credit Losses Total Loans
Small business lending $ 12,658 $ 4,923 $ 845 $ 11,429 $ 4,778 $ 1,320
−Removed: $ 11,364 $ 888 $ 61 $ 6,824 $ 904 $ —
Franchise finance 15,684 325 — 10,382 — —
2 unchanged sentences
Total loans $ 33,208 $ 10,114 $ 1,035 $ 25,955 $ 8,922 $ 2,466
−Removed: 1 Balance is partially guaranteed by the U.S.
+Added: There was $ 0.1 million and $ 0.7 million in interest income recognized on nonaccrual loans for the three months ended March 31, 2025 and 2024, respectively.
Determining fair value for collateral dependent loans requires obtaining a current independent appraisal of the collateral and applying a discount factor, which includes selling costs if applicable, to the value.
4 unchanged sentences
Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions.
−Removed: The following tables present the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses as of September 30, 2024 and December 31, 2023.
−Removed: September 30, 2024
−Removed: (in thousands) Commercial Real Estate Residential Real Estate Other Total Allowance on Collateral Dependent Loans
+Added: The following tables present the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses as of March 31, 2025 and December 31, 2024.
+Added: March 31, 2025
+Added: (amounts in thousands) Commercial Real Estate Residential Real Estate Other (Includes Equipment, Machinery and Other Assets) Total Allowance on Collateral Dependent Loans
Owner-occupied commercial real estate $ 1,654 $ — $ — $ 1,654 $ —
5 unchanged sentences
Total loans $ 2,695 $ 4,771 $ 10,695 $ 18,161 $ 5,186
−Removed: 1 Balance is partially guaranteed by the U.S.
+Added: 1 Balance includes $ 3.8 million of loans guaranteed by the U.S.
December 31, 2024
−Removed: (in thousands) Commercial Real Estate Residential Real Estate Other Total Allowance on Collateral Dependent Loans
+Added: (amounts in thousands) Commercial Real Estate Residential Real Estate Other (Includes Equipment, Machinery and Other Assets) Total Allowance on Collateral Dependent Loans
Owner-occupied commercial real estate $ 1,654 $ — $ — $ 1,654 $ —
1 unchanged sentence
723 — 8,571 9,294 4,167
+Added: Franchise finance — — 3,468 3,468 679
Residential mortgage — 4,083 — 4,083 —
1 unchanged sentence
Total loans $ 2,377 $ 4,083 $ 12,061 $ 18,521 $ 4,846
−Removed: 1 Balance is partially guaranteed by the U.S.
+Added: 1 Balance includes $ 3.5 million of loans guaranteed by the U.S.
Loan Modifications to Borrowers Experiencing Financial Difficulty
−Removed: In January 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326):
−Removed: Troubled Debt restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty.
−Removed: This guidance was applied on a prospective basis.
−Removed: Upon adoption of this guidance, the Company no longer establishes a specific reserve for modifications to borrowers experiencing financial difficulty.
−Removed: Instead, these modifications are included in their respective loan pool and a historical loss rate is applied to the current loan balance to arrive at the quantitative baseline portion of the ACL.
−Removed: Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, other-than-insignificant payment delays, term extensions and other actions intended to minimize loss and to avoid foreclosure or repossession of collateral.
−Removed: The Company had three loan modifications made to borrowers experiencing financial difficulty during both the three and nine months ended September 30, 2024.
−Removed: The Company did not have any loan modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023.
−Removed: The following tables present loans that were both experiencing financial difficulty and modified during the three and nine months ended September 30, 2024.
−Removed: (in thousands)
−Removed: Three Months Ended September 30, 2024 Payment Delay Total Modification by Loan Class % of Class of Loans
−Removed: Investor commercial real estate $ 3,731 $ 3,731 1.4 %
−Removed: Franchise finance 4,028 4,028 0.7 %
−Removed: Total loans $ 7,759 $ 7,759
−Removed: (in thousands)
−Removed: Nine Months Ended September 30, 2024 Payment Delay Total Modification by Loan Class % of Class of Loans
−Removed: Investor commercial real estate $ 3,731 $ 3,731 1.4 %
−Removed: Franchise finance 4,028 4,028 0.7 %
−Removed: Total loans $ 7,759 $ 7,759
−Removed: The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty.
−Removed: As of September 30, 2024, the Company had no commitments to lend additional funds to these borrowers included in the table below.
−Removed: (in thousands)
−Removed: Three Months Ended September 30, 2024 - Payment Delay
−Removed: Loan Type Financial Effect
−Removed: Investor commercial real estate Forbearance average of 9 months.
−Removed: Franchise finance Forbearance average of 7 months.
−Removed: (in thousands)
−Removed: Nine Months Ended September 30, 2024 - Payment Delay
−Removed: Loan Type Financial Effect
−Removed: Investor commercial real estate Forbearance average of 9 months.
−Removed: Franchise finance Forbearance average of 7 months.
+Added: The Company may agree to modify the contractual terms of a loan to a borrower experiencing financial difficulty as a part of ongoing loss mitigation strategies.
+Added: These modifications may include interest rate reductions, principal or interest forgiveness, other-than-insignificant payment delays, term extensions and other actions intended to minimize loss and to avoid foreclosure or repossession of collateral.
+Added: The Company had two loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2025.
+Added: The Company did not have any loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2024.
+Added: The following table presents loans that were both experiencing financial difficulty and modified during the three months ended March 31, 2025.
+Added: Three Months Ended March 31, 2025
+Added: (dollars in thousands) Payment Delay Total Modification by Loan Class % of Class of Loans
+Added: Healthcare finance 2,658 2,658 1.6 %
+Added: Total $ 2,658 $ 2,658
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.
−Removed: The following table presents the performance of such loans that have been modified in the last twelve months as of September 30, 2024.
−Removed: (in thousands) Current 30 - 89 Days
+Added: The following table presents the performance of loans that were modified within the twelve months ended March 31, 2025.
+Added: (amounts in thousands) Current 30 - 89 Days
Past Due 90+ Days
Investor commercial real estate $ 3,731 $ — $ —
+Added: Healthcare finance 2,658 — —
Franchise finance 1,163 4,020 —
−Removed: Total loans $ 7,759 $ — $ —
−Removed: No modified loans defaulted during the three and nine months ended September 30, 2024.
+Added: Total $ 7,552 $ 4,020 $ —
+Added: No modified loans had a default during the three months ended March 31, 2025.
Other Real Estate Owned
−Removed: The Company had $ 0.3 million in other real estate owned (“OREO”) as of September 30, 2024.
−Removed: The Company had $ 0.4 million in other real estate owned (“OREO”) as of December 31, 2023, which consisted of two residential mortgage properties.
−Removed: There were seven loans totaling $ 1.9 million and one loan totaling $ 0.8 million, in the process of foreclosure at September 30, 2024 and December 31, 2023, respectively.
+Added: The Company had $ 1.5 million in other real estate owned (“OREO”) as of March 31, 2025, which consisted of two Small Business Administration loan properties.
+Added: The Company had $ 0.3 million in OREO as of December 31, 2024, which consisted of one residential mortgage property.
+Added: There were eleven loans totaling $ 3.2 million and nine loans totaling $ 2.1 million, in the process of foreclosure at March 31, 2025 and December 31, 2024, respectively.
Premises and Equipment
−Removed: The following table summarizes premises and equipment at September 30, 2024 and December 31, 2023.
−Removed: (in thousands) September 30, 2024 December 31, 2023
+Added: The following table summarizes premises and equipment at March 31, 2025 and December 31, 2024.
+Added: (amounts in thousands) March 31, 2025 December 31, 2024
Land $ 5,598 $ 5,598
5 unchanged sentences
Total $ 70,461 $ 71,453
−Removed: As of September 30, 2024 and December 31, 2023, the carrying amount of goodwill was $ 4.7 million.
−Removed: There have been no changes in the carrying amount of goodwill for the three and nine months ended September 30, 2024 or September 30, 2023.
+Added: As of March 31, 2025 and December 31, 2024, the carrying amount of goodwill was $ 4.7 million.
+Added: There have been no changes in the carrying amount of goodwill for the three months ended March 31, 2025 or March 31, 2024.
Goodwill is assessed for impairment annually as of August 31, or more frequently if events occur or circumstances change that indicate an impairment may exist.
5 unchanged sentences
Servicing Asset
−Removed: Activity for the servicing asset and the related changes in fair value for the three and nine months ended September 2024 and 2023 are shown in the table below.
+Added: Activity for the servicing asset and the related changes in fair value for the three months ended March 31, 2025 and 2024 are shown in the table below.
Three Months Ended
−Removed: (in thousands) September 30, 2024 September 30, 2023
−Removed: Balance, beginning of period $ 13,009 $ 8,251
−Removed: Originated 2,499 1,585
−Removed: ( 689 ) ( 408 )
−Removed: Changes in fair value due to changes in valuation inputs or assumptions used in
−Removed: the valuation model ( 157 ) 151
−Removed: Loan servicing asset revaluation $ ( 846 ) $ ( 257 )
−Removed: Balance, end of period $ 14,662 $ 9,579
−Removed: Nine Months Ended
−Removed: (in thousands) September 30, 2024 September 30, 2023
+Added: (amounts in thousands) March 31, 2025 March 31, 2024
Balance, beginning of period $ 16,389 $ 10,567
Originated 2,237 1,627
−Removed: ( 2,097 ) ( 1,275 )
+Added: Subtractions:
+Added: Paydowns ( 964 ) ( 612 )
Changes in fair value due to changes in valuation inputs or assumptions used in
3 unchanged sentences
Loans serviced for others are not included in the condensed consolidated balance sheets.
−Removed: The unpaid principal balances of these loans serviced for others as of September 30, 2024 and December 31, 2023 are shown in the table below.
−Removed: (in thousands) September 30, 2024 December 31, 2023
+Added: The unpaid principal balances of these loans serviced for others as of March 31, 2025 and December 31, 2024 are shown in the table below.
+Added: (amounts in thousands) March 31, 2025 December 31, 2024
Loan portfolios serviced for:
1 unchanged sentence
Total $ 939,362 $ 862,089
−Removed: Loan servicing revenue totaled $ 1.6 million and $ 4.4 million for the three and nine months ended September 30, 2024, respectively, and $ 1.1 million and $ 2.7 million for the three and nine months ended September 30, 2023, respectively.
−Removed: Loan servicing asset revaluation, which represents the change in fair value of the servicing asset, resulted in a $ 0.8 million and $ 2.1 million downward valuation for the three and nine months ended September 30, 2024, respectively, and a $ 0.3 million and $ 0.7 million downward valuation for both the three and nine months ended September 30, 2023, respectively.
+Added: Loan servicing revenue totaled $ 2.0 million and $ 1.3 million for the three months ended March 31, 2025 and March 31, 2024, respectively.
+Added: Loan servicing asset revaluation, which represents the change in fair value of the servicing asset, resulted in a $ 1.2 million and $ 0.4 million downward valuation for the three months ended March 31, 2025 and March 31, 2024, respectively.
The fair value of servicing rights is highly sensitive to changes in underlying assumptions.
17 unchanged sentences
In August 2021, the Company issued $ 60.0 million aggregate principal amount of 3.75 % Fixed-to-Floating Rate Subordinated Notes due 2031 (the “2031 Notes”) in a private placement.
−Removed: The 2031 Notes initially bear a fixed interest rate of 3.75 % per year to, but excluding, September 1, 2026, and thereafter a floating rate equal to the then-current benchmark rate (initially three-month Term SOFR plus 3.11 %).
+Added: The 2031 Notes initially bear a fixed interest rate of 3.75 % per year to, but excluding, September 1, 2026, and thereafter at a floating rate equal to the then-current benchmark rate (initially three-month Term SOFR plus 3.11 %).
The 2031 Notes are scheduled to mature on September 1, 2031.
5 unchanged sentences
Holders of $ 0.7 million of unregistered 2031 Notes did not participate in the exchange.
−Removed: The following table presents the principal balance and unamortized discount and debt issuance costs for the 2029 Notes, the 2030 Note, and the 2031 Notes as of September 30, 2024 and December 31, 2023.
−Removed: September 30, 2024 December 31, 2023
−Removed: (in thousands) Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs
−Removed: 2029 Notes $ 37,000 $ ( 743 ) $ 37,000 $ ( 862 )
+Added: The following table presents the principal balance and unamortized discount and debt issuance costs for the 2029 Notes, the 2030 Note, and the 2031 Notes as of March 31, 2025 and December 31, 2024.
+Added: March 31, 2025 December 31, 2024
+Added: (amounts in thousands) Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs
2029 Notes $ 37,000 $ ( 664 ) $ 37,000 $ ( 703 )
+Added: 2030 Note 10,000 ( 131 ) 10,000 ( 137 )
2031 Notes 60,000 ( 977 ) 60,000 ( 1,010 )
13 unchanged sentences
Award Activity Under 2022 Plan
−Removed: The Company recorded $ 0.4 million and $ 1.1 million o f share-based compensation expense for the three and nine months ended September 30, 2024, respectively, related to stock-based awards under the 2022 Plan.
−Removed: The Company recorded $ 0.2 million and $ 0.6 million o f share-based compensation expense for the three and nine months ended September 30, 2023, respectively, related to stock-based awards under the 2022 Plan .
−Removed: The following table summarizes the stock-based award activity under the 2022 Plan for the nine months ended September 30, 2024.
−Removed: Restricted Stock Units Weighted-Average Grant Date Fair Value Per Share Restricted Stock Awards Weighted-Average Grant Date Fair Value Per Share Deferred Stock Units Weighted-Average Grant Date Fair Value Per Share
+Added: The Company recorded less than $ 0.1 million and $ 0.1 million o f share-based compensation expense for the three months ended March 31, 2025, and March 31, 2024, respectively, related to stock-based awards under the 2022 Plan.
+Added: The following table summarizes the stock-based award activity under the 2022 Plan for the three months ended March 31, 2025.
+Added: (dollars in thousands, except per share data) Restricted Stock Units Weighted-Average Grant Date Fair Value Per Share Restricted Stock Awards Weighted-Average Grant Date Fair Value Per Share Deferred Stock Units Weighted-Average Grant Date Fair Value Per Share
Unvested at December 31, 2024 130,748 $ 24.35 12,040 $ 31.46 — $ —
Granted 54,948 34.76 — — — —
−Removed: Cancelled/Forfeited ( 1,290 ) 24.37 — — — —
Vested ( 28,192 ) 24.32 — — — —
−Removed: Unvested at September 30, 2024 131,992 $ 24.35 12,040 $ 31.46 — $ —
−Removed: At September 30, 2024, the total unrecognized compensation cost related to unvested stock-based awards under the 2022 Plan was $ 2.4 million with a weighted-average expense recognition period of 1.8 years.
+Added: Unvested at March 31, 2025 157,504 $ 27.97 12,040 $ 31.46 — $ —
+Added: At March 31, 2025, the total unrecognized compensation cost related to unvested stock-based awards under the 2022 Plan was $ 3.3 million with a weighted-average expense recognition period of 2.2 years.
2013 Equity Incentive Plan
2 unchanged sentences
Award Activity Under 2013 Plan
−Removed: The Company recorded $ 0.1 million and $ 0.2 million of share-based compensation expense for the three and nine months ended September 30, 2024, respectively, related to stock-based awards under the 2013 Plan .
−Removed: The Company recorded less than $ 0.2 million and $ 0.3 million of share-based compensation expense for the three and nine months ended September 30, 2023, respectively, related to stock-based awards under the 2013 Plan .
−Removed: The following table summarizes the stock-based award activity under the 2013 Plan for the nine months ended September 30, 2024.
−Removed: Restricted Stock Units Weighted-Average Grant Date Fair Value Per Share Restricted Stock Awards Weighted-Average Grant Date Fair Value Per Share Deferred Stock Units Weighted-Average Grant Date Fair Value Per Share
+Added: The Company recorded less than $ 0.1 million and $ 0.4 million of share-based compensation expense for the three months ended March 31, 2025 and 2024, respectively, related to stock-based awards under the 2013 Plan .
+Added: The following table summarizes the stock-based award activity under the 2013 Plan for the three months ended March 31, 2025.
+Added: (dollars in thousands, except per share data) Restricted Stock Units Weighted-Average Grant Date Fair Value Per Share Restricted Stock Awards Weighted-Average Grant Date Fair Value Per Share Deferred Stock Units Weighted-Average Grant Date Fair Value Per Share
Unvested at December 31, 2024 22,997 $ 46.71 — $ — — $ —
−Removed: Cancelled/Forfeited ( 22,806 ) 30.45 — — — —
Vested ( 7,871 ) 46.71 — — — —
−Removed: Unvested at September 30, 2024 23,090 $ 46.69 — $ — — $ —
−Removed: At September 30, 2024, the total unrecognized compensation cost related to unvested stock-based awards under the 2013 Plan was $ 0.1 million with a weighted-average expense recognition period of 0.3 years.
+Added: Unvested at March 31, 2025 15,126 $ 46.71 — $ — — $ —
+Added: At March 31, 2025, there were no unrecognized compensation costs related to unvested stock-based awards under the 2013 Plan.
Directors Deferred Stock Plan
3 unchanged sentences
Deferred stock rights were to be settled in common stock following the end of the deferral period payable on the basis of one share of common stock for each deferred stock right.
−Removed: The following table summarizes the status of deferred stock rights related to the Directors Deferred Stock Plan for the nine months ended September 30, 2024.
+Added: The following table summarizes the status of deferred stock rights related to the Directors Deferred Stock Plan for the three months ended March 31, 2025.
Deferred Stock Rights
4 unchanged sentences
In the normal course of business, the Company makes various commitments to extend credit which are not reflected in the accompanying condensed consolidated financial statements.
−Removed: At September 30, 2024 and December 31, 2023, the Company had outstanding loan commitments totaling approximately $ 707.5 million and $ 755.4 million, respectively.
+Added: At March 31, 2025 and December 31, 2024, the Company had outstanding loan commitments totaling approximately $ 626.2 million and $ 667.7 million, respectively.
Fair Value of Financial Instruments
11 unchanged sentences
If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows.
−Removed: The Company did not own any securities classified within Level 1 of the hierarchy as of September 30, 2024 or December 31, 2023.
+Added: The Company did not own any securities classified within Level 1 of the hierarchy as of March 31, 2025 and December 31, 2024.
Level 2 securities include U.S.
5 unchanged sentences
Rating agency and industry research reports as well as default and deferral activity are reviewed and incorporated into the calculation.
−Removed: The Company did not own any securities classified within Level 3 of the hierarchy as of September 30, 2024 or December 31, 2023.
−Removed: Loans Held-for-Sale (mandatory pricing agreements)
−Removed: The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2).
+Added: The Company did not own any securities classified within Level 3 of the hierarchy as of March 31, 2025 or December 31, 2024.
Servicing Asset
2 unchanged sentences
The present value of the future cash flows is then calculated utilizing market-based discount rate assumptions (Level 3).
−Removed: Interest Rate Swap Agreements
−Removed: The fair values of interest rate swap agreements are estimated using current market interest rates as of the balance sheet date and calculated using discounted cash flows that are observable or that can be corroborated by observable market data (Level 2).
−Removed: Back-to-Back Swap Agreements
+Added: Interest Rate Swap Agreements Back-to-Back
The Company offers interest rate swaps to certain loan customers to allow them to hedge the risk of rising interest rates on their variable rate loans.
5 unchanged sentences
The fair value assets and liabilities of centrally cleared interest rate swaps are net of variation margin settled-to-market (Level 2).
−Removed: Interest Rate Lock Commitments
−Removed: The fair values of IRLCs are determined using the projected sale price of individual loans based on changes in market interest rates, projected pull-through rates (the probability that an IRLC will ultimately result in an originated loan), the reduction in the value of the applicant’s option due to the passage of time, and the remaining origination costs to be incurred based on management’s estimate of market costs (Level 3).
−Removed: The following tables present the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2024 and December 31, 2023.
−Removed: September 30, 2024
+Added: The following tables present the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at March 31, 2025 and December 31, 2024.
+Added: March 31, 2025
Fair Value Measurements Using
−Removed: (in thousands) Fair
+Added: (amounts in thousands) Fair
Value Quoted Prices
12 unchanged sentences
Servicing asset 17,445 — — 17,445
−Removed: Interest rate swap agreements 2,079 — 2,079 —
Interest rate swap agreements - assets (back-to-back) 308 — 308 —
2 unchanged sentences
Fair Value Measurements Using
−Removed: (in thousands) Fair
+Added: (amounts in thousands) Fair
Value Quoted Prices
12 unchanged sentences
Servicing asset 16,389 — — 16,389
−Removed: Interest rate swap agreements 5,139 — 5,139 —
Interest rate swap agreements - assets (back-to-back) 200 — 200 —
Interest rate swap agreements - liabilities (back-to-back) ( 200 ) — ( 200 ) —
−Removed: The following tables reconcile the beginning and ending balances of recurring fair value measurements recognized in the accompanying condensed consolidated balance sheets using significant unobservable (Level 3) inputs for the three and nine months ended September 30, 2024 and 2023.
+Added: The following tables reconcile the beginning and ending balances of recurring fair value measurements recognized in the accompanying condensed consolidated balance sheets using significant unobservable (Level 3) inputs for the three months ended March 31, 2025 and 2024.
Three Months Ended
−Removed: (in thousands) Servicing Asset Interest Rate Lock
−Removed: Balance as of July 1, 2024 $ 13,009 $ —
−Removed: Total realized gains
−Removed: Originated 2,499 —
−Removed: Subtractions:
−Removed: Paydowns ( 689 ) —
−Removed: Change in fair value ( 157 ) —
−Removed: Balance, September 30, 2024 $ 14,662 $ —
−Removed: Balance as of July 1, 2023 $ 8,251 $ —
−Removed: Total realized gains
−Removed: Originated 1,585 —
−Removed: Subtractions:
−Removed: Paydowns ( 408 ) —
−Removed: Change in fair value 151 —
−Removed: Balance, September 30, 2023 $ 9,579 $ —
−Removed: Nine Months Ended
−Removed: (in thousands) Servicing Asset Interest Rate Lock
−Removed: Balance, January 1, 2024 $ 10,567 $ —
+Added: (amounts in thousands) Servicing Asset
+Added: Balance as of January 1, 2025 $ 16,389
Total realized gains
3 unchanged sentences
Change in fair value ( 217 )
−Removed: Balance, September 30, 2024 $ 14,662 $ —
−Removed: Balance, January 1, 2023 $ 6,255 $ 133
+Added: Balance, March 31, 2025 $ 17,445
+Added: Balance as of January 1, 2024 $ 10,567
Total realized gains
3 unchanged sentences
Change in fair value 178
−Removed: Balance, September 30, 2023 $ 9,579 $ —
+Added: Balance, March 31, 2024 $ 11,760
The following describes the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis, as well as the general classification of such assets pursuant to the valuation hierarchy.
6 unchanged sentences
Individually analyzed loans with a specific valuation allowance based on the value of the underlying collateral or a discounted cash flow analysis are classified as Level 3 assets.
−Removed: The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurement falls at September 30, 2024 and December 31, 2023.
−Removed: September 30, 2024
−Removed: (in thousands) Fair Value Measurements Using
+Added: The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurement falls at March 31, 2025 and December 31, 2024.
+Added: March 31, 2025
+Added: (amounts in thousands) Fair Value Measurements Using
Value Quoted Prices
3 unchanged sentences
December 31, 2024
−Removed: (in thousands) Fair Value Measurements Using
+Added: (amounts in thousands) Fair Value Measurements Using
Value Quoted Prices
5 unchanged sentences
(dollars in thousands) Fair Value at
−Removed: September 30, 2024 Valuation
+Added: March 31, 2025 Valuation
Technique Significant Unobservable
23 unchanged sentences
Rating agency and industry research reports as well as default and deferral activity are reviewed and incorporated into the calculation.
−Removed: The Company did not own any securities classified within Level 3 of the hierarchy as of September 30, 2024 or December 31, 2023.
−Removed: Loans Held-for-Sale (best efforts pricing agreements)
−Removed: The fair value of these loans approximates carrying value.
+Added: The Company did not own any securities classified within Level 3 of the hierarchy as of March 31, 2025 or December 31, 2024.
+Added: Loans Held-for-Sale
+Added: For loans that are sold in an active secondary market, the fair value of these loans is estimated based on secondary market price indications for loans with similar interest rate and maturity characteristics.
+Added: The fair value of other loans held-for-sale approximates carrying value.
The fair value of loans is estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors.
14 unchanged sentences
The fair value of commitments to extend credit are based on fees currently charged to enter into similar agreements with similar maturities and interest rates.
−Removed: The Company determined that the fair value of commitments was zero based on the contractual value of outstanding commitments at each of September 30, 2024 and December 31, 2023.
−Removed: The following tables present the carrying value and estimated fair value of all financial assets and liabilities that are not measured at fair value on a recurring basis at September 30, 2024 and December 31, 2023.
−Removed: September 30, 2024
+Added: The Company determined that the fair value of commitments was zero based on the contractual value of outstanding commitments at each of March 31, 2025 and December 31, 2024.
+Added: The following tables present the carrying value and estimated fair value of all financial assets and liabilities that are not measured at fair value on a recurring basis at March 31, 2025 and December 31, 2024.
+Added: March 31, 2025
Fair Value Measurements Using
−Removed: (in thousands) Carrying
+Added: (amounts in thousands) Carrying
Amount Fair Value Quoted Prices
4 unchanged sentences
Securities held-to-maturity, net 276,542 259,116 — 259,116 —
−Removed: Loans held-for-sale (best efforts pricing agreements) 32,996 32,996 — 32,996 —
+Added: Loans held-for-sale 31,738 33,930 — 33,930 —
Net loans 4,207,174 4,045,036 — — 4,045,036
7 unchanged sentences
Fair Value Measurements Using
−Removed: (in thousands) Carrying
+Added: (amounts in thousands) Carrying
Amount Fair Value Quoted Prices
3 unchanged sentences
Securities held-to-maturity 249,796 228,851 — 228,851 —
−Removed: Loans held-for-sale (best efforts pricing agreements) 22,052 22,052 — 22,052 —
+Added: Loans held-for-sale 54,695 58,510 — 58,510 —
Net loans 4,125,877 3,935,009 — — 3,935,009
5 unchanged sentences
Accrued interest payable 2,495 2,495 2,495 — —
−Removed: Mortgage Banking Activities
−Removed: The Bank’s residential real estate lending business originated mortgage loans for customers and typically sold a majority of the originated loans into the secondary market.
−Removed: For most of the mortgages sold in the secondary market, the Bank hedged its mortgage banking pipeline by entering into forward contracts for the future delivery of mortgage loans to third party investors and entering into IRLCs with potential borrowers to fund specific mortgage loans that would be sold into the secondary market.
−Removed: To facilitate the hedging of the loans, the Bank elected the fair value option for loans originated and intended for sale in the secondary market under mandatory pricing agreements.
−Removed: Changes in the fair value of loans held-for-sale, IRLCs and forward contracts are recorded in the mortgage banking activities line item within noninterest income.
−Removed: Refer to Note 13 for further information on derivative financial instruments.
−Removed: During both the three and nine months ended September 30, 2024, the Company had no mortgage loans held-for-sale or sold mortgage loans into the secondary market.
−Removed: During the three months ended September 30, 2023, the Company had no mortgage loans held-for-sale and sold mortgage loans into the secondary market.
−Removed: During the nine months ended September 30, 2023, the Company originated $ 36.3 million of mortgage loans held-for-sale and sold $ 46.5 million of mortgage loans, respectively, into the secondary market.
−Removed: During the first quarter 2023, the Company made the decision to exit the residential mortgage business.
−Removed: The following table presents the components of income from mortgage banking activities for the three and nine months ended September 30, 2024 and 2023.
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: (in thousands) 2024 2023 2024 2023
−Removed: Gain on loans sold $ — $ — $ — $ 471
−Removed: Loss resulting from the change in fair value of loans held-for-sale — — — ( 143 )
−Removed: Loss resulting from the change in fair value of derivatives — — — ( 252 )
−Removed: Net revenue from mortgage banking activities $ — $ — $ — $ 76
−Removed: Fluctuations in interest rates and changes in IRLC and loan volume within the mortgage banking pipeline may cause volatility in the fair value of loans held-for-sale and the fair value of derivatives used to hedge the mortgage banking pipeline.
Derivative Financial Instruments
−Removed: The Company uses derivative financial instruments to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities.
+Added: The Company uses derivative financial instruments from time to time to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities.
The Company enters into interest rate swap agreements as part of its asset/liability management strategy to help manage its interest rate risk position.
−Removed: Additionally, the Company entered into forward contracts for the future delivery of mortgage loans to third-party investors and entered into IRLCs with potential borrowers to fund specific mortgage loans that were sold into the secondary market.
−Removed: The forward contracts were entered into in order to economically hedge the effect of changes in interest rates resulting from the Company’s commitment to fund the loans.
−Removed: The Company had various interest rate swap agreements designated and qualifying as accounting hedges during the reported periods.
−Removed: Designating an interest rate swap as an accounting hedge allows the Company to recognize gains and losses in the condensed consolidated statements of income within the same period that the hedged item affects earnings.
−Removed: The Company includes the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the related interest rate swaps.
−Removed: For derivative instruments that are designated and qualify as cash flow hedges, any gains or losses related to changes in fair value are recorded in accumulated other comprehensive loss, net of tax.
−Removed: The fair value of interest rate swaps with a positive fair value are reported in accrued income and other assets in the condensed consolidated balance sheets, while interest rate swaps with a negative fair value are reported in accrued expenses and other liabilities in the condensed consolidated balance sheets.
−Removed: The Company offers interest rate swaps to certain loan customers to allow them to hedge the risk of rising interest rates on their variable rate loans.
−Removed: The Company originates a variable rate loan and enters into a variable-to-fixed interest rate contract with the customer.
−Removed: The Company also enters into an offsetting interest rate swap with a correspondent bank.
+Added: The Company entered into an offsetting interest rate swap with a correspondent bank.
These back-to-back swap agreements are intended to offset each other and allow the Company to originate a variable rate loan, while providing a contract for fixed interest payments for the customer.
2 unchanged sentences
The fair value assets and liabilities of centrally cleared interest rate swaps are net of variation margin settled-to-market.
−Removed: The IRLCs and forward contracts are not designated as accounting hedges and are recorded at fair value with changes in fair value reflected in noninterest income on the condensed consolidated statements of income.
−Removed: The fair value of derivative instruments with a positive fair value are reported in accrued income and other assets in the condensed consolidated balance sheets, while derivative instruments with a negative fair value are reported in accrued expenses and other liabilities in the condensed consolidated balance sheets.
−Removed: The following table presents amounts that were recorded on the condensed consolidated balance sheets related to cumulative basis adjustments for interest rate swap derivatives designated as fair value accounting hedges as of September 30, 2024 and December 31, 2023.
−Removed: (in thousands) Carrying amount of the hedged asset Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets
−Removed: Line item in the condensed consolidated balance sheets in which the hedged item is included September 30, 2024 December 31, 2023 September 30, 2024 December 31, 2023
−Removed: Securities available-for-sale 1
−Removed: $ 67,410 $ 69,504 $ ( 112 ) $ ( 1,143 )
−Removed: 1 These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship.
−Removed: The designated hedged items were $ 50.0 million at both September 30, 2024 and December 31, 2023.
−Removed: The following tables present a summary of interest rate swap derivatives designated as fair value accounting hedges of fixed-rate receivables used in the Company’s asset/liability management activities at September 30, 2024 and December 31, 2023, identified by the underlying interest rate-sensitive instruments.
−Removed: (dollars in thousands)
−Removed: September 30, 2024
−Removed: Notional Value Weighted- Average Remaining Maturity (years) Weighted-Average Ratio
−Removed: Instruments Associated With Fair Value Receive Pay
−Removed: Securities available-for-sale $ 50,000 0.1 $ 123 3-month SOFR 2.33 %
−Removed: Total swap portfolio at September 30, 2024 $ 50,000 0.1 $ 123 3-month SOFR 2.33 %
−Removed: (dollars in thousands)
−Removed: December 31, 2023
−Removed: Notional Value Weighted- Average Remaining Maturity (years) Weighted-Average Ratio
−Removed: Instruments Associated With Fair Value Receive Pay
−Removed: Securities available-for-sale $ 50,000 0.8 $ 1,153 3-month SOFR 2.33 %
−Removed: Total swap portfolio at December 31, 2023 $ 50,000 0.8 $ 1,153 3-month SOFR 2.33 %
+Added: In December 2024, the Company terminated interest rate swaps utilized as cash flow hedges against Federal Home Loan Bank advances, which resulted in swap termination receipts from counterparties of $ 2.9 million.
+Added: As the Company had no further liability exposure to the underlying index hedged, the Company reclassified this amount from accumulated other comprehensive loss to the consolidated statements of income and recognized a gain on termination of interest rate swaps for the year ended December 31, 2024.
+Added: In November 2024, the Company’s interest rate swap derivative designated as fair value hedges matured.
+Added: As a result, the Company has no remaining fair value hedge exposure at December 31, 2024.
In March 2021, the Company terminated the last layer of interest rate swaps associated with available-for-sale agency mortgage-backed securities - residential, which resulted in swap termination payments to counterparties totaling $ 1.9 million.
The corresponding fair value hedging adjustment was allocated pro-rata to the underlying hedged securities and is being amortized over the remaining lives of the designated securities.
−Removed: The Company had amortization expense totaling less than $ 0.1 million for both the three and nine months ended September 30, 2024 and 2023, which was recognized as a reduction to interest income on securities.
+Added: The Company had amortization expense totaling less than $ 0.1 million for both the three months ended March 31, 2025 and 2024, which was recognized as a reduction to interest income on securities.
In June 2020, the Company terminated all fair value hedging relationships associated with loans, which resulted in swap termination payments to counterparties totaling $ 46.1 million.
−Removed: The corresponding loan fair value hedging adjustment as of the date of termination is being amortized over the remaining lives of the designated loans, which have a weighted average term to maturity of 9.8 years as of September 30, 2024.
−Removed: The Company had amortization expense totaling $ 1.6 million and $ 3.7 million for the three and nine months ended September 30, 2024, respectively, and $ 1.5 million and $ 3.5 million for the three and nine months ended September 30 2023, respectively, related to these previously terminated fair value hedges was recognized as a reduction to interest income on loans.
−Removed: The following tables present a summary of interest rate swap derivatives designated as cash flow accounting hedges of variable-rate liabilities used in the Company’s asset/liability management activities at September 30, 2024 and December 31, 2023.
−Removed: (dollars in thousands)
−Removed: September 30, 2024
−Removed: Notional Value Weighted- Average Remaining Maturity (years) Weighted-Average Ratio
−Removed: Cash Flow Hedges Fair Value Receive Pay
−Removed: Interest rate swaps $ 110,000 2.3 $ 1,956 3-month SOFR 2.88 %
−Removed: (dollars in thousands)
−Removed: December 31, 2023
−Removed: Notional Value Weighted- Average Remaining Maturity (years) Weighted-Average Ratio
−Removed: Cash Flow Hedges Fair Value Receive Pay
−Removed: Interest rate swaps $ 110,000 3.1 $ 3,596 3-month SOFR 2.88 %
−Removed: Interest rate swaps 40,000 0.4 390 Fed Funds Effective 2.78 %
−Removed: These derivative financial instruments were entered into for the purpose of managing the interest rate risk of certain assets and liabilities.
−Removed: The Company received $ 1.6 million and $ 5.2 million of cash collateral from counterparties as security for their obligations related to these swap transactions at September 30, 2024 and December 31, 2023.
−Removed: The Company had no pledged cash collateral as of September 30, 2024 and December 31, 2023 to counterparties on interest rate swap agreements as security for its obligations related to these agreements.
−Removed: Collateral posted and received is dependent on the market valuation of the underlying hedges.
−Removed: The following table presents the notional amount and fair value of interest rate swaps utilized by the Company at September 30, 2024 and December 31, 2023.
−Removed: September 30, 2024 December 31, 2023
−Removed: (in thousands) Notional
+Added: The corresponding loan fair value hedging adjustment as of the date of termination is being amortized over the remaining lives of the designated loans, which have a weighted average term to maturity of 9.4 years as of March 31, 2025.
+Added: The Company had amortization expense totaling $ 0.9 million for both the three months ended March 31, 2025 and 2024, related to these previously terminated fair value hedges which was recognized as a reduction to interest income on loans.
+Added: The following table presents the notional amount and fair value of interest rate swaps utilized by the Company at March 31, 2025 and December 31, 2024.
+Added: March 31, 2025 December 31, 2024
+Added: (amounts in thousands) Notional
Value Notional
Asset Derivatives
−Removed: Derivatives designated as hedging instruments
−Removed: Interest rate swaps associated with securities available-for-sale $ 50,000 $ 123 $ 50,000 $ 1,153
−Removed: Interest rate swaps associated with liabilities 110,000 1,956 150,000 3,986
Derivatives not designated as hedging instruments
10 unchanged sentences
As a result of this offsetting relationship, no net gains or losses are recognized in income.
−Removed: The following table presents the effects of the Company’s cash flow hedge relationships on the condensed consolidated statements of comprehensive income during the three and nine months ended September 30, 2024 and 2023.
−Removed: Amount of (Loss) Gain Recognized in Other Comprehensive Income in The Three Months Ended Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) in The Nine Months Ended
−Removed: (in thousands) September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023
+Added: The Company received no cash collateral from counterparties as security for their obligations related to these swap transactions at March 31, 2025 and December 31, 2024.
+Added: As of March 31, 2025, the Company pledged cash collateral of $ 0.3 million to counterparties as security for its obligations related to these agreements.
+Added: The Company had no pledged cash collateral as of December 31, 2024 to counterparties as security for its obligations related to these agreements.
+Added: Collateral posted and received is dependent on the market valuation of the underlying hedges.
+Added: The following table presents the effects of the Company’s cash flow hedge relationships on the condensed consolidated statements of comprehensive income during the three months ended March 31, 2025 and 2024.
+Added: Amount of Gain Recognized in Other Comprehensive Income for the Three Months Ended
+Added: (amounts in thousands) March 31, 2025 March 31, 2024
Interest rate swap agreements $ — $ 902
−Removed: The following table summarizes the periodic changes in the fair value of derivatives not designated as hedging instruments on the condensed consolidated statements of income for the three and nine months ended September 30, 2024 and 2023.
−Removed: Amount of Loss Recognized in the Three Months Ended Amount of Loss Recognized in the Nine Months Ended
−Removed: (in thousands) September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023
−Removed: Liability Derivatives
−Removed: Derivatives not designated as hedging instruments
−Removed: IRLCs $ — $ — $ — $ ( 133 )
−Removed: Forward contracts — — — ( 119 )
−Removed: The following table presents the effects of the Company’s interest rate swap agreements on the condensed consolidated statements of operations during the three and nine months ended September 30, 2024 and 2023.
−Removed: (in thousands)
−Removed: Line item in the condensed consolidated statements of operations
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023
+Added: The Company had no changes in the fair value of derivatives not designated as hedging instruments on the condensed consolidated statements of income for the three months ended March 31, 2025 and 2024.
+Added: The following table presents the effects of the Company’s interest rate swap agreements on the condensed consolidated statements of operations during the three months ended March 31, 2025 and 2024.
+Added: (amounts in thousands) Three Months Ended
+Added: Line Item in the Condensed Consolidated Statements of Income March 31, 2025 March 31, 2024
Interest income
1 unchanged sentence
Total interest income
−Removed: 421 407 1,250 1,055
Interest expense
2 unchanged sentences
Total interest expense
−Removed: ( 782 ) ( 1,120 ) ( 2,728 ) ( 3,195 )
Net interest income
−Removed: $ 1,203 $ 1,527 $ 3,978 $ 4,250
Accumulated Other Comprehensive Loss
−Removed: The components of accumulated other comprehensive loss, included in shareholders' equity, for the nine months ended September 30, 2024 and 2023, respectively, are presented in the table below.
−Removed: (in thousands) Unrealized Losses On Debt Securities Unrealized Losses On Debt Securities Transferred From Available-For-Sale To Held-To-Maturity Cash Flow Hedges
+Added: The components of accumulated other comprehensive loss, included in shareholders' equity, for the three months ended March 31, 2025 and 2024, respectively, are presented in the table below.
+Added: (amounts in thousands) Unrealized Losses On Debt Securities Unrealized Losses On Debt Securities Transferred From Available-For-Sale To Held-To-Maturity Cash Flow Hedges Total
Balance, January 1, 2025 $ ( 30,413 ) $ ( 2,240 ) $ — $ ( 32,653 )
−Removed: Other comprehensive income (loss) before reclassifications from accumulated other comprehensive loss before tax 7,995 — ( 2,030 ) 5,965
−Removed: Reclassifications from accumulated other comprehensive loss to earnings before tax — 607 — 607
−Removed: Other comprehensive gain (loss) before tax 7,995 607 ( 2,030 ) 6,572
−Removed: Income tax provision (benefit) 1,841 149 ( 467 ) 1,523
−Removed: Other comprehensive gain (loss) - net of tax 6,154 458 ( 1,563 ) 5,049
−Removed: Balance, September 30, 2024 $ ( 24,020 ) $ ( 2,481 ) $ 2,175 $ ( 24,326 )
+Added: Other comprehensive income before reclassifications from accumulated other comprehensive loss before tax 4,424 — — 4,424
+Added: Reclassifications from accumulated other comprehensive income to earnings before tax — 120 — 120
+Added: Other comprehensive gain before tax 4,424 120 — 4,544
+Added: Income tax provision 1,017 31 — 1,048
+Added: Other comprehensive income - net of tax 3,407 89 — 3,496
+Added: Balance, March 31, 2025 $ ( 27,006 ) $ ( 2,151 ) $ — $ ( 29,157 )
Balance, January 1, 2024 $ ( 30,174 ) $ ( 2,939 ) $ 3,738 $ ( 29,375 )
3 unchanged sentences
Income tax (benefit) provision ( 475 ) 57 207 ( 211 )
−Removed: Other comprehensive (loss) gain - net of tax ( 8,469 ) 397 511 ( 7,561 )
−Removed: Balance, September 30, 2023 $ ( 44,300 ) $ ( 3,122 ) $ 6,225 $ ( 41,197 )
−Removed: The components of accumulated other comprehensive loss, included in stockholders' equity, for the three months ended September 30, 2024 and 2023, respectively, are presented in the table below.
−Removed: (in thousands) Unrealized Losses On Debt Securities Unrealized Losses On Debt Securities Transferred From Available-For-Sale To Held-To-Maturity Cash Flow Hedges Total
−Removed: Balance, July 1, 2024 $ ( 32,198 ) $ ( 2,620 ) $ 4,231 $ ( 30,587 )
−Removed: Other comprehensive income (loss) before reclassifications from accumulated other comprehensive loss before tax 10,620 — ( 2,670 ) 7,950
−Removed: Reclassifications from accumulated other comprehensive loss to earnings before tax — 185 185
−Removed: Other comprehensive gain (loss) before tax 10,620 185 ( 2,670 ) 8,135
−Removed: Income tax provision (benefit) 2,442 46 ( 614 ) 1,874
−Removed: Other comprehensive income (loss) - net of tax 8,178 139 ( 2,056 ) 6,261
−Removed: Balance, September 30, 2024 $ ( 24,020 ) $ ( 2,481 ) $ 2,175 $ ( 24,326 )
−Removed: Balance, July 1, 2023 $ ( 35,592 ) $ ( 3,250 ) $ 5,656 $ ( 33,186 )
−Removed: Other comprehensive (loss) income before reclassifications from accumulated other comprehensive loss before tax ( 11,308 ) — 740 ( 10,568 )
−Removed: Reclassifications from accumulated other comprehensive loss to earnings before tax — 173 — 173
−Removed: Other comprehensive (loss) gain before tax ( 11,308 ) 173 740 ( 10,395 )
−Removed: Income tax (benefit) provision ( 2,600 ) 45 171 ( 2,384 )
Other comprehensive (loss) income - net of tax ( 1,599 ) 177 695 ( 727 )
−Removed: Balance, September 30, 2023 $ ( 44,300 ) $ ( 3,122 ) $ 6,225 $ ( 41,197 )
−Removed: Details About Accumulated Other Comprehensive Loss Components Amounts Reclassified from
−Removed: Accumulated Other Comprehensive Loss for the Amounts Reclassified from
−Removed: Accumulated Other Comprehensive Loss for the Affected Line Item in the
+Added: Balance, March 31, 2024 $ ( 31,773 ) $ ( 2,762 ) $ 4,433 $ ( 30,102 )
+Added: Amounts Reclassified from
+Added: Accumulated Other Comprehensive Income for the Three Months Ended Affected Line Item in the
Statements of Operations
−Removed: Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023
−Removed: Reclassifications from accumulated other comprehensive loss to earnings before tax $ ( 185 ) ( 173 ) $ ( 607 ) $ ( 537 ) Interest income
+Added: (amounts in thousands) March 31, 2025 March 31, 2024
+Added: Details About Accumulated Other Comprehensive Loss Components
+Added: Reclassifications from accumulated other comprehensive income to earnings before tax $ ( 120 ) ( 234 ) Interest income
Total amount reclassified before tax ( 120 ) ( 234 ) Income before income taxes
−Removed: Tax benefit ( 46 ) ( 45 ) ( 149 ) ( 140 ) Income tax provision (benefit)
−Removed: Total reclassifications from accumulated other comprehensive loss $ ( 139 ) $ ( 128 ) $ ( 458 ) $ ( 397 ) Net income
+Added: Tax benefit ( 31 ) ( 57 ) Income tax (benefit) provision
+Added: Total reclassifications from accumulated other comprehensive income $ ( 89 ) $ ( 177 ) Net income
+Added: Segment Information
+Added: The Company operates as a single reportable segment, managing the business and assessing financial performance on a consolidated basis.
+Added: While there are several lines of business within the operating segment, they are closely interrelated and cannot operate independently.
+Added: Accordingly, the Chief Operating Decision Maker (“CODM”) evaluates operations and financial performance on a Company-wide basis and all of the Company’s operations are aggregated into one reportable operating segment.
+Added: The CODM regularly receives and reviews the Company’s net income on a consolidated basis and uses key metrics to evaluate the overall performance of the Company and make decisions regarding the allocation of resources.
+Added: Additionally, the CODM reviews budget-to-actual variances to analyze these profit measures as a single operating segment.
+Added: The function of the CODM is performed by the Finance Committee.
+Added: This Committee consists of the highest level of management that is responsible for the Company’s overall resource allocation and performance.
+Added: The Finance Committee includes the Chairman and Chief Executive Officer, President and Chief Operating Officer and Executive Vice President and Chief Financial Officer.
Recent Accounting Pronouncements
−Removed: ASU 2023-02 - Investments - Equity Method and Joint Ventures (Topic 323):
−Removed: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (March 2023)
−Removed: In March 2023, the FASB issued ASU No.
−Removed: 2023-02, Investments - Equity Method and Joint Ventures (Topic 323):
−Removed: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.
−Removed: This ASU permits companies to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met.
−Removed: The Company adopted this guidance on January 1, 2024 and it did not have a material impact on its consolidated financial statements.
−Removed: ASU 2023-07 - Segment Reporting (Topic 280):
−Removed: Improvements to Reportable Segments (November 2023)
−Removed: In November 2023, the FASB issued ASU No.
−Removed: 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segments.
−Removed: This ASU enhances financial reporting by requiring disclosure of incremental segment information on an annual and interim basis.
−Removed: The guidance is effective for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted.
−Removed: The Company is currently evaluating the impact of this ASU on its condensed consolidated financial statements.
ASU 2023-09 - Income Taxes (Topic 740):
5 unchanged sentences
The Company is currently evaluating the impact of this ASU on its condensed consolidated financial statements.
+Added: ASU 2024-03 - Income Statement-Reporting Comprehensive Income - Expense Disaggregations Disclosures (Subtopic 220-40):
+Added: Disaggregation of Income Statement Expenses (November 2024)
+Added: In November 2024, the FASB issued ASU No.
+Added: 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregations Disclosures (Subtopic 220-40):
+Added: Disaggregation of Income Statement Expenses.
+Added: This ASU requires additional disclosures of the nature of expenses included in the Company’s income statement.
+Added: The new standard requires disclosures about specific types of expenses included the income statement.
+Added: The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027.
+Added: The Company is currently evaluating the impact of this ASU on its consolidated financial statements.
+Added: 2024 with early adoption permitted.
+Added: The Company is currently evaluating the impact of this ASU on its condensed consolidated financial statements.
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.