What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-08-06 compared with 2025-05-07 · 305 added, 138 removed, 1202 unchanged (27% of the section changed)

3 unchanged sentences

(Amounts in thousands except share data)

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Cash and due from banks $ 9,261 $ 9,249

48 unchanged sentences

(Amounts in thousands except share and per share data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Interest Income

11 unchanged sentences

Benefit for credit losses - debt securities held to maturity ( 12 ) ( 2 ) ( 32 ) ( 64 )

Benefit for credit losses - off-balance sheet commitments ( 168 ) ( 72 )

Provision (benefit) for credit losses - off-balance sheet commitments 24 113 ( 144 ) 41

Net Interest Income After Provision for Credit Losses 14,382 17,296 27,545 35,582

16 unchanged sentences

Total noninterest expense 21,800 22,336 45,357 43,359

Income Before Income Taxes 34 5,610

(Loss) Income Before Income Taxes ( 1,861 ) 5,993 ( 1,828 ) 11,603

Income Tax (Benefit) Provision ( 2,054 ) 218 ( 2,964 ) 647

11 unchanged sentences

(Amounts in thousands)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Net income $ 193 $ 5,775 $ 1,136 $ 10,956

9 unchanged sentences

Cash flow hedges

Net unrealized holding gains on cash flow hedging derivatives recorded within other comprehensive income before income tax — 902

Income tax provision — 207

Net effect on other comprehensive income — 695

Net unrealized holding gains (losses) on cash flow hedging derivatives recorded within other comprehensive income (loss) before income tax — ( 262 ) — 640

Income tax (benefit) provision — ( 60 ) — 147

Net effect on other comprehensive (loss) income — ( 202 ) — 493

Total other comprehensive income (loss) 2,590 ( 485 ) 6,086 ( 1,212 )

3 unchanged sentences

Condensed Consolidated Statements of Changes in Shareholders’ Equity - Unaudited

Three Months Ended March 31, 2025 and 2024

Six Months Ended June 30, 2025 and 2024

(Amounts in thousands except share and per share data)

11 unchanged sentences

Common stock redeemed for the net settlement of share-based awards ( 224 ) — — ( 224 )

Balance, March 31, 2025 $ 185,873 $ 231,031 $ ( 29,157 ) $ 387,747

Balance, June 30, 2025 $ 186,116 $ 230,690 $ ( 26,567 ) $ 390,239

Balance, January 1, 2024 $ 184,700 $ 207,470 $ ( 29,375 ) $ 362,795

6 unchanged sentences

( 283 ) — — ( 283 )

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 ( 142 ) — — ( 142 )

Balance, March 31, 2024 $ 184,720 $ 212,121 $ ( 30,102 ) $ 366,739

Balance, June 30, 2024 $ 185,175 $ 217,365 $ ( 30,587 ) $ 371,953

See Notes to Condensed Consolidated Financial Statements

First Internet Bancorp

Condensed Consolidated Statements of Changes in Shareholders’ Equity - Unaudited

Three Months Ended June 30, 2025 and 2024

(Amounts in thousands except share and per share data)

Stock Retained

Earnings Accumulated

Comprehensive

Shareholders’

Balance, April 1, 2025 185,873 $ 231,031 $ ( 29,157 ) $ 387,747

Net income — 193 — 193

Other comprehensive income — — 2,590 2,590

Dividends declared ($ 0.06 per share)

— ( 534 ) — ( 534 )

Recognition of the fair value of share-based compensation 241 — — 241

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

Balance, June 30, 2025 $ 186,116 $ 230,690 $ ( 26,567 ) $ 390,239

Balance, April 1, 2024 $ 184,720 $ 212,121 $ ( 30,102 ) $ 366,739

Net income — 5,775 — 5,775

Other comprehensive loss — — ( 485 ) ( 485 )

Dividends declared ($ 0.06 per share)

— ( 531 ) — ( 531 )

Recognition of the fair value of share-based compensation 458 — — 458

Excise tax on repurchase of common stock ( 3 ) — — ( 3 )

Balance, June 30, 2024 $ 185,175 $ 217,365 $ ( 30,587 ) $ 371,953

See Notes to Condensed Consolidated Financial Statements

First Internet Bancorp

Condensed Consolidated Statements of Cash Flows – Unaudited

(Amounts in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Operating Activities

Net income $ 1,136 $ 10,956

Adjustments to reconcile net income to net cash provided by operating activities:

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Depreciation and amortization 2,982 3,846

6 unchanged sentences

Gain on sale of other real estate owned ( 19 ) ( 31 )

(Gain) loss on derivatives ( 216 ) 1,224

(Loss) gain on derivatives ( 146 ) 1,803

Gain on bank-owned life insurance — ( 149 )

Loan servicing asset revaluation 2,334 1,263

1 unchanged sentence

Net change in accrued expenses and other liabilities ( 6,434 ) ( 1,305 )

Net cash provided by operating activities 32,825 2,791

Net cash (used in) provided by operating activities ( 57,347 ) 18,816

Investing Activities

6 unchanged sentences

Purchase of premises and equipment ( 834 ) ( 1,496 )

Proceeds from bank-owned life insurance — 737

Loans purchased ( 17,795 ) ( 64,944 )

9 unchanged sentences

Net cash provided by financing activities 333,796 165,463

Net (Decrease) Increase in Cash and Cash Equivalents ( 71,956 ) 75,366

Net Decrease in Cash and Cash Equivalents ( 20,049 ) ( 9,112 )

Cash and Cash Equivalents, Beginning of Period 466,410 405,898

5 unchanged sentences

Cash dividends declared, paid in subsequent period 523 520

Securities purchased during the period, settled in subsequent period — 3,327

See Notes to Condensed Consolidated Financial Statements

8 unchanged sentences

In our opinion, all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation have been included.

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.

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 results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results expected for the year ending December 31, 2025 or any other period.

The June 30, 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.

7 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.

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.

(dollars in thousands, except share and per share data) Three Months Ended March 31,

The following is a reconciliation of the weighted-average common shares for the basic and diluted earnings per share computations for the three and six months ended June 30, 2025 and 2024.

(dollars in thousands, except share and per share data) Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

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.

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.

The following tables summarize securities available-for-sale and securities held-to-maturity as of March 31, 2025 and December 31, 2024.

March 31, 2025

Excluded from the computation of diluted EPS were weighted-average antidilutive shares totaling 15,940 and 9,006 for the three and six months ended June 30, 2025, respectively.

There were no antidilutive shares for both the three and six months ended June 30, 2024.

The following tables summarize securities available-for-sale and securities held-to-maturity as of June 30, 2025 and December 31, 2024.

June 30, 2025

Amortized Cost Gross Unrealized Fair Value

10 unchanged sentences

Total available-for-sale $ 676,496 $ 1,688 $ ( 33,527 ) $ 644,657

March 31, 2025

June 30, 2025

Amortized Cost Gross Unrealized Fair Value Allowance for Credit Losses Net Carrying Value

6 unchanged sentences

Total held-to-maturity $ 271,859 $ 500 $ ( 17,692 ) $ 254,667 $ ( 122 ) $ 271,737

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.

1 Includes $ 0.2 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of June 30, 2025.

December 31, 2024

22 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.

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.

Accrued interest receivable on AFS and HTM securities at June 30, 2025 was $ 2.7 million and $ 1.2 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.

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.

At June 30, 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.

The ACL on HTM securities at March 31, 2025 was $ 0.1 million, compared to $ 0.2 million at December 31, 2024.

The carrying value of securities at March 31, 2025 is shown below by their contractual maturity date.

The ACL on HTM securities at June 30, 2025 was $ 0.1 million, compared to $ 0.2 million at December 31, 2024.

The carrying value of securities at June 30, 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.

21 unchanged sentences

Total $ 271,859 $ 254,667

No available-for-sale securities were sold during the three months ended March 31, 2025 and March 31, 2024.

No available-for-sale securities were sold during the three and six months ended June 30, 2025 and June 30, 2024.

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.

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.

As of March 31, 2025, the Company’s security portfolio consisted of 606 positions, of which 487 were in an unrealized loss position.

The total fair value of these investments at June 30, 2025 and December 31, 2024 was $ 645.8 million and $ 603.9 million, which was approximately 70 % and 72 %, respectively, of the Company’s AFS and HTM securities portfolios.

As of June 30, 2025, the Company’s security portfolio consisted of 599 positions, of which 466 were in an unrealized loss position.

As of December 31, 2024, the Company’s security portfolio consisted of 579 positions, of which 482 were in an unrealized loss position.

9 unchanged sentences

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.

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.

March 31, 2025

June 30, 2025

Less Than 12 Months 12 Months or Longer Total

29 unchanged sentences

Total $ 100,802 $ ( 444 ) $ 298,536 $ ( 40,597 ) $ 399,338 $ ( 41,041 )

The following tables summarize ratings for the Company’s HTM portfolio as of March 31, 2025 and December 31, 2024.

March 31, 2025

The following tables summarize ratings for the Company’s HTM portfolio as of June 30, 2025 and December 31, 2024.

June 30, 2025

Held-to-Maturity

23 unchanged sentences

Total $ 12,846 $ 201,840 $ 5,705 $ 29,559 $ 249,950

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.

Loan balances as of March 31, 2025 and December 31, 2024 are summarized in the table below.

There were no amounts reclassified from accumulated other comprehensive loss to the consolidated statements of income during the three and six months ended June 30, 2025 and 2024.

Loan balances as of June 30, 2025 and December 31, 2024 are summarized in the table below.

Categories of loans include:

(amounts in thousands) March 31, 2025 December 31, 2024

(amounts in thousands) June 30, 2025 December 31, 2024

Commercial loans

22 unchanged sentences

1 Balances include $ 45.1 million and $ 34.0 million that is guaranteed by the U.S.

government as of March 31, 2025 and December 31, 2024, respectively.

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.

government as of June 30, 2025 and December 31, 2024, respectively.

2 Includes carrying value adjustment of $ 21.2 million and $ 22.9 million related to terminated interest rate swaps associated with public finance loans as of June 30, 2025 and December 31, 2024, respectively.

The general risk characteristics specific to each loan portfolio segment are as follows:

116 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.

The following tables present changes in the balance of the ACL during the three months ended March 31, 2025 and 2024.

(amounts in thousands) Three Months Ended March 31, 2025

The following tables present changes in the balance of the ACL during the three and six months ended June 30, 2025 and 2024.

(amounts in thousands) Three Months Ended June 30, 2025

Allowance for credit losses:

15 unchanged sentences

Total $ 47,238 $ 13,596 $ ( 14,448 ) $ 131 $ 46,517

(amounts in thousands) Three Months Ended March 31, 2024

(amounts in thousands) Six Months Ended June 30, 2025

Allowance for credit losses:

15 unchanged sentences

Total $ 44,769 $ 25,717 $ ( 24,289 ) $ 320 $ 46,517

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.

(amounts in thousands) Three Months Ended June 30, 2024

Allowance for credit losses:

Balance, Beginning of Period (Credit) Provision Charged to Expense Losses

Charged Off Recoveries Balance,

End of Period

Commercial and industrial $ 1,800 $ ( 413 ) $ — $ 2 $ 1,389

Owner-occupied commercial real estate 769 ( 208 ) — — 561

Investor commercial real estate 798 374 — — 1,172

Construction 2,942 198 — — 3,140

Single tenant lease financing 8,471 ( 20 ) ( 195 ) — 8,256

Public finance 1,336 ( 594 ) — — 742

Healthcare finance 1,917 ( 108 ) — — 1,809

Small business lending 8,868 3,633 ( 573 ) 65 11,993

Franchise finance 6,166 402 ( 577 ) — 5,991

Residential mortgage 1,945 167 — — 2,112

Home equity 125 ( 8 ) — 1 118

Other consumer loans 5,754 497 ( 160 ) 31 6,122

Total $ 40,891 $ 3,920 $ ( 1,505 ) $ 99 $ 43,405

(amounts in thousands) Six Months Ended June 30, 2024

Allowance for credit losses:

Balance, Beginning of Period (Credit) Provision Charged to Expense Losses

Charged Off Recoveries Balance,

End of Period

Commercial and industrial $ 2,185 $ ( 800 ) $ — $ 4 $ 1,389

Owner-occupied commercial real estate 825 ( 264 ) — — 561

Investor commercial real estate 1,311 ( 139 ) — — 1,172

Construction 2,167 973 — — 3,140

Single tenant lease financing 8,129 322 ( 195 ) — 8,256

Public finance 1,372 ( 630 ) — — 742

Healthcare finance 1,976 ( 167 ) — — 1,809

Small business lending 6,532 6,218 ( 862 ) 105 11,993

Franchise finance 6,363 205 ( 577 ) — 5,991

Residential mortgage 2,054 126 ( 69 ) 1 2,112

Home equity 171 ( 56 ) — 3 118

Other consumer loans 5,689 714 ( 335 ) 54 6,122

Total $ 38,774 $ 6,502 $ ( 2,038 ) $ 167 $ 43,405

Accrued interest receivable on loans totaled $ 26.4 million and $ 28.2 million at June 30, 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.

3 unchanged sentences

The adequacy of the reserve for unfunded commitments is determined quarterly based on methodology similar to the methodology for determining the ACL.

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.

The following tables detail activity in the provision (benefit) for credit losses on off-balance sheet commitments for the three and six months ended June 30, 2025.

(amounts in thousands) Balance

March 31, 2025 Provision (Benefit) for Credit Losses Balance

June 30, 2025

Off-balance sheet commitments

Commercial loans

Commercial and industrial $ 170 $ 29 $ 199

Investor commercial real estate 1 32 33

Construction 1,474 283 1,757

Single tenant lease financing 12 ( 7 ) 5

Small business lending 274 ( 273 ) 1

Total commercial loans 1,931 64 1,995

Consumer loans

Residential mortgage 1 — 1

Home equity 32 ( 32 ) —

Other consumer loans 8 ( 8 ) —

Total consumer loans 41 ( 40 ) 1

Total allowance for off-balance sheet commitments $ 1,972 $ 24 $ 1,996

(amounts in thousands) Balance

December 31, 2024 (Benefit) Provision for Credit Losses Balance

March 31, 2025

June 30, 2025

Off-balance sheet commitments

10 unchanged sentences

Home equity 35 ( 35 ) —

Other consumer 9 ( 1 ) 8

Other consumer loans 9 ( 9 ) —

Total consumer loans 45 ( 44 ) 1

Total allowance for off-balance sheet commitments $ 2,140 $ ( 144 ) $ 1,996

The following table details activity in the (benefit) provision for credit losses on off-balance sheet commitments for the three and six months ended June 30, 2024.

(amounts in thousands) Balance

March 31, 2024 (Benefit) Provision for Credit Losses Balance

June 30, 2024

Off-balance sheet commitments

Commercial loans

Commercial and industrial $ 193 $ ( 5 ) $ 188

Construction 3,270 150 3,420

Small business lending 159 ( 28 ) 131

Total commercial loans 3,622 117 3,739

Consumer loans

Residential mortgage 5 ( 2 ) 3

Home equity 35 ( 2 ) 33

Other consumer loans 11 — 11

Total consumer loans 51 ( 4 ) 47

Total allowance for off-balance sheet commitments $ 3,673 $ 113 $ 3,786

(amounts in thousands) Balance

December 31, 2023 (Benefit) Provision for Credit Losses Balance

March 31, 2024

June 30, 2024

Off-balance sheet commitments

9 unchanged sentences

Home equity 45 ( 12 ) 33

Other consumer 11 — 11

Other consumer loans 11 — 11

Total consumer loans 67 ( 20 ) 47

16 unchanged sentences

• “Nonperforming” - Loans that are 90 days delinquent or for which the full collection of principal and interest may be in doubt.

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.

March 31, 2025

June 30, 2025

Term Loans (amortized cost basis by origination year) Revolving loans amortized cost basis Revolving loans converted to term

45 unchanged sentences

Year-to-date gross charge-offs — — — — — — — — —

March 31, 2025

June 30, 2025

Term Loans (amortized cost basis by origination year) Revolving loans amortized cost basis Revolving loans converted to term

32 unchanged sentences

Year-to-date gross charge-offs — — — — — — — — —

Other consumer

Other consumer loans

Performing 56,111 94,740 86,508 80,587 29,542 73,168 802 — 421,458

Nonperforming — — 65 12 27 19 — — 123

Total other consumer 25,106 98,611 92,231 85,361 31,351 79,082 811 — 412,553

Total other consumer loans 56,111 94,740 86,573 80,599 29,569 73,187 802 — 421,581

Year-to-date gross charge-offs 4 76 244 85 18 245 — — 672

83 unchanged sentences

Year-to-date gross charge-offs — — — — — — — — —

Other consumer

Other consumer loans

Performing 101,965 97,832 88,872 33,177 20,918 64,251 870 — 407,885

Nonperforming — — 38 11 1 12 — — 62

Total other consumer 101,965 97,832 88,910 33,188 20,919 64,263 870 — 407,947

Total other consumer loans 101,965 97,832 88,910 33,188 20,919 64,263 870 — 407,947

Year-to-date gross charge-offs 157 242 300 127 1 182 — — 1,009

1 unchanged sentence

Total year-to-date gross charge-offs $ 1,250 $ 6,013 $ 3,439 $ 1,047 $ 620 $ 901 $ — $ — $ 13,270

The following tables present the Company’s loan portfolio delinquency, including nonperforming loans, as of March 31, 2025 and December 31, 2024.

March 31, 2025

The following tables present the Company’s loan portfolio delinquency, including nonperforming loans, as of June 30, 2025 and December 31, 2024.

June 30, 2025

(amounts in thousands) 30-59

14 unchanged sentences

Home equity 37 — — 37 16,631 16,668

Other consumer 210 202 145 557 411,996 412,553

Other consumer loans 153 57 99 309 421,272 421,581

Total $ 13,053 $ 13,330 $ 34,208 $ 60,591 $ 4,276,886 $ 4,337,477

16 unchanged sentences

Home equity — — — — 18,274 18,274

Other consumer 194 196 27 417 407,530 407,947

Other consumer loans 194 196 27 417 407,530 407,947

Total $ 22,090 $ 6,496 $ 19,278 $ 47,864 $ 4,096,102 $ 4,143,966

5 unchanged sentences

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:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(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

Commercial and industrial $ — $ — $ 16 $ — $ — $ —

Public finance 1,665 — — — — —

Small business lending 11,582 10,658 2,370 11,429 4,778 1,320

1 unchanged sentence

Residential mortgage 3,927 3,927 — 4,083 4,083 1,142

Other consumer 164 164 34 61 61 4

Other consumer loans 124 124 — 61 61 4

Total loans $ 41,155 $ 16,490 $ 2,386 $ 25,955 $ 8,922 $ 2,466

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.

Interest income recognized on nonaccrual loans was $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2025, respectively, and less than $ 0.1 million for the three and six months ended June 30, 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.

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.

March 31, 2025

The following tables present the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses as of June 30, 2025 and December 31, 2024.

June 30, 2025

(amounts in thousands) Commercial Real Estate Residential Real Estate Other (Includes Equipment, Machinery and Other Assets) Total Allowance on Collateral Dependent Loans

2 unchanged sentences

247 — 7,575 7,822 489

Franchise finance — — 312 312 252

Residential mortgage — 3,927 — 3,927 —

15 unchanged sentences

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.

The Company had two loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2025.

The Company did not have any loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2024.

The following table presents loans that were both experiencing financial difficulty and modified during the three months ended March 31, 2025.

Three Months Ended March 31, 2025

The Company had six loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2025.

The Company had eight loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2025.

The Company did no t have any loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2024.

The following table presents loans that were both experiencing financial difficulty and modified during the three months ended June 30, 2025.

Three Months Ended June 30, 2025

(dollars in thousands) Payment Delay Total Modification by Loan Class % of Class of Loans

Commercial and industrial $ 393 $ 393 0.3 %

Single tenant lease financing 3,007 3,007 0.3 %

Small business lending 3,084 3,084 0.6 %

Total $ 6,484 $ 6,484

The following table presents loans that were both experiencing financial difficulty and modified during the six months ended June 30, 2025.

Six Months Ended June 30, 2025

(dollars in thousands) Payment Delay Total Modification by Loan Class % of Class of Loans

Commercial and industrial $ 393 $ 393 0.3 %

Single tenant lease financing 3,007 3,007 0.3 %

Healthcare finance 2,634 2,634 1.7 %

Small business lending 3,084 3,084 0.6 %

Total $ 9,118 $ 9,118

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

The following table presents the performance of loans that were modified within the twelve months ended March 31, 2025.

The following table presents the performance of loans that were modified within the twelve months ended June 30, 2025.

Twelve Months Ended June 30, 2025

(amounts in thousands) Current 30 - 89 Days

Past Due 90+ Days

Commercial and industrial $ 393 $ — $ —

Investor commercial real estate 3,731 — —

Single tenant lease financing 3,007 — —

Healthcare finance 1,174 1,460 —

Small business lending 3,084 — —

Franchise finance — 1,156 4,020

Total $ 11,389 $ 2,616 $ 4,020

No modified loans had a default during the three months ended March 31, 2025.

There were two modified loans totaling $ 4.0 million with payment defaults during three and six months ended June 30, 2025.

The payment defaults did not have a material impact on the allowance for credit losses on loans.

There were no modified loans with payment defaults during the three and six months ended June 30, 2024.

Other Real Estate Owned

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.

The Company had $ 1.7 million in other real estate owned (“OREO”) as of June 30, 2025, which consisted of two small business lending properties and one residential mortgage property.

The Company had $ 0.3 million in OREO as of December 31, 2024, which consisted of one residential mortgage property.

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.

There were seven loans totaling $ 2.3 million and nine loans totaling $ 2.1 million, in the process of foreclosure at June 30, 2025 and December 31, 2024, respectively.

Premises and Equipment

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

(amounts in thousands) March 31, 2025 December 31, 2024

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

(amounts in thousands) June 30, 2025 December 31, 2024

Land $ 5,598 $ 5,598

5 unchanged sentences

Total $ 69,930 $ 71,453

As of March 31, 2025 and December 31, 2024, the carrying amount of goodwill was $ 4.7 million.

There have been no changes in the carrying amount of goodwill for the three months ended March 31, 2025 or March 31, 2024.

As of June 30, 2025 and December 31, 2024, the carrying amount of goodwill was $ 4.7 million.

There have been no changes in the carrying amount of goodwill for the three months ended June 30, 2025 or June 30, 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.

4 unchanged sentences

The estimated fair value of the reporting unit exceeded the net carrying value, and therefore no goodwill impairment existed as of that date.

However, there is a risk for impairment in the event of declines in general economic, market or business conditions and the resultant effect on forecasted growth rates, or any significant unfavorable change in the Company’s forecasted operations resulting from elevated levels of net charge-offs in the franchise finance and small business lending portfolios.

If current and long-term projections decrease materially, the Company may be required to recognize impairment charges, which could be material to the results of operations.

Servicing Asset

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.

Activity for the servicing asset and the related changes in fair value for the three and six months ended June 30, 2025 and 2024 are shown in the table below.

Three Months Ended

(amounts in thousands) March 31, 2025 March 31, 2024

(amounts in thousands) June 30, 2025 June 30, 2024

Balance, beginning of period $ 17,445 $ 11,760

6 unchanged sentences

Balance, end of period $ 16,736 $ 13,009

Six Months Ended

(amounts in thousands) June 30, 2025 June 30, 2024

Balance, beginning of period $ 16,389 $ 10,567

Originated 2,681 3,705

Subtractions:

Paydowns ( 1,811 ) ( 1,408 )

Changes in fair value due to changes in valuation inputs or assumptions used in

the valuation model ( 523 ) 145

Loan servicing asset revaluation $ ( 2,334 ) $ ( 1,263 )

Balance, end of period $ 16,736 $ 13,009

Loans serviced for others are not included in the condensed consolidated balance sheets.

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.

(amounts in thousands) March 31, 2025 December 31, 2024

The unpaid principal balances of these loans serviced for others as of June 30, 2025 and December 31, 2024 are shown in the table below.

(amounts in thousands) June 30, 2025 December 31, 2024

Loan portfolios serviced for:

1 unchanged sentence

Total $ 932,168 $ 862,089

Loan servicing revenue totaled $ 2.0 million and $ 1.3 million for the three months ended March 31, 2025 and March 31, 2024, respectively.

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.

Loan servicing revenue totaled $ 2.0 million and $ 4.0 million for the three and six months ended June 30, 2025, respectively, and $ 1.5 million and $ 2.8 million for the three and six months ended June 30, 2024, respectively.

Loan servicing asset revaluation, which represents the change in fair value of the servicing asset, resulted in a $ 1.2 million and $ 2.3 million downward valuation for the three and six months ended June 30, 2025 and a $ 0.8 million and $ 1.3 million downward valuation for both the three and six months ended June 30, 2024, respectively.

The fair value of servicing rights is highly sensitive to changes in underlying assumptions.

25 unchanged sentences

Holders of $ 0.7 million of unregistered 2031 Notes did not participate in the exchange.

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.

March 31, 2025 December 31, 2024

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 June 30, 2025 and December 31, 2024.

June 30, 2025 December 31, 2024

(amounts in thousands) Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs

16 unchanged sentences

Award Activity Under 2022 Plan

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.

The following table summarizes the stock-based award activity under the 2022 Plan for the three months ended March 31, 2025.

The Company recorded $ 0.5 million o f share-based compensation expense for both the three and six months ended June 30, 2025, related to stock-based awards under the 2022 Plan.

The Company recorded $ 0.4 million and $ 0.7 million o f share-based compensation expense for the three and six months ended June 30, 2024, respectively, related to stock-based awards under the 2022 Plan.

The following table summarizes the stock-based award activity under the 2022 Plan for the six months ended June 30, 2025.

(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

2 unchanged sentences

Vested ( 28,192 ) 24.32 ( 12,040 ) 31.46 — —

Unvested at March 31, 2025 157,504 $ 27.97 12,040 $ 31.46 — $ —

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.

Unvested at June 30, 2025 157,504 $ 27.97 16,009 $ 24.72 — $ —

At June 30, 2025, the total unrecognized compensation cost related to unvested stock-based awards under the 2022 Plan was $ 3.2 million with a weighted-average expense recognition period of 1.9 years.

2013 Equity Incentive Plan

The 2013 Plan authorized the issuance of 750,000 shares of the Company’s common stock in the form of stock-based awards to employees, directors, and other eligible persons.

Although outstanding stock-based awards under the 2013 Plan remain in place according to their terms, our authority to grant new awards under the 2013 Plan terminated upon shareholder approval of the 2022 Plan.

No awards under the 2013 Plan remain outstanding and our authority to grant new awards under the 2013 Plan terminated upon shareholder approval of the 2022 Plan.

Award Activity Under 2013 Plan

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 .

The following table summarizes the stock-based award activity under the 2013 Plan for the three months ended March 31, 2025.

The Company recorded no share-based compensation expense for the three months ended June 30, 2025, and less than $ 0.1 million of share-based compensation expense for the six months ended June 30, 2025, related to stock-based awards under the 2013 Plan .

The Company recorded $ 0.1 million and $ 0.2 million of share-based compensation expense for the three and six months ended June 30, 2024, respectively, related to stock-based awards under the 2013 Plan .

The following table summarizes the stock-based award activity under the 2013 Plan for the six months ended June 30, 2025.

Unvested at December 31, 2024 22,997 $ 46.71 — $ — — $ —

Cancelled/Forfeited ( 15,126 ) 46.71 — — — —

Vested ( 7,871 ) 46.71 — — — —

Unvested at March 31, 2025 15,126 $ 46.71 — $ — — $ —

At March 31, 2025, there were no unrecognized compensation costs related to unvested stock-based awards under the 2013 Plan.

Unvested at June 30, 2025 — $ — — $ — — $ —

At June 30, 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.

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.

The following table summarizes the status of deferred stock rights related to the Directors Deferred Stock Plan for the six months ended June 30, 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.

At March 31, 2025 and December 31, 2024, the Company had outstanding loan commitments totaling approximately $ 626.2 million and $ 667.7 million, respectively.

At June 30, 2025 and December 31, 2024, the Company had outstanding loan commitments totaling approximately $ 584.5 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.

The Company did not own any securities classified within Level 1 of the hierarchy as of March 31, 2025 and December 31, 2024.

The Company did not own any securities classified within Level 1 of the hierarchy as of June 30, 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.

The Company did not own any securities classified within Level 3 of the hierarchy as of March 31, 2025 or December 31, 2024.

The Company did not own any securities classified within Level 3 of the hierarchy as of June 30, 2025 or December 31, 2024.

Servicing Asset

10 unchanged sentences

The fair value assets and liabilities of centrally cleared interest rate swaps are net of variation margin settled-to-market (Level 2).

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.

March 31, 2025

June 30, 2025

Fair Value Measurements Using

35 unchanged sentences

Interest rate swap agreements - liabilities (back-to-back) ( 200 ) — ( 200 ) —

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

(amounts in thousands) Servicing Asset

Balance as of January 1, 2025 $ 16,389

Balance as of April 1, 2025 $ 17,445

Total realized gains

3 unchanged sentences

Change in fair value ( 306 )

Balance, March 31, 2025 $ 17,445

Balance as of January 1, 2024 $ 10,567

Balance, June 30, 2025 $ 16,736

Balance as of April 1, 2024 $ 11,760

Total realized gains

3 unchanged sentences

Change in fair value ( 32 )

Balance, March 31, 2024 $ 11,760

Balance, June 30, 2024 $ 13,009

Six Months Ended

(amounts in thousands) Servicing Asset

Balance, January 1, 2025 $ 16,389

Total realized gains

Originated 2,681

Subtractions:

Paydowns ( 1,811 )

Change in fair value ( 523 )

Balance, June 30, 2025 $ 16,736

Balance, January 1, 2024 $ 10,567

Total realized gains

Originated 3,705

Subtractions:

Paydowns ( 1,408 )

Change in fair value 145

Balance, June 30, 2024 $ 13,009

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.

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.

March 31, 2025

June 30, 2025

(amounts in thousands) Fair Value Measurements Using

12 unchanged sentences

(dollars in thousands) Fair Value at

March 31, 2025 Valuation

June 30, 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.

The Company did not own any securities classified within Level 3 of the hierarchy as of March 31, 2025 or December 31, 2024.

The Company did not own any securities classified within Level 3 of the hierarchy as of June 30, 2025 or December 31, 2024.

Loans Held-for-Sale

17 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.

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.

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.

March 31, 2025

The Company determined that the fair value of commitments was zero based on the contractual value of outstanding commitments at each of June 30, 2025 and December 31, 2024.

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 June 30, 2025 and December 31, 2024.

June 30, 2025

Fair Value Measurements Using

21 unchanged sentences

Cash and cash equivalents $ 466,410 $ 466,410 $ 466,410 $ — $ —

Securities held-to-maturity 249,796 228,851 — 228,851 —

Securities held-to-maturity, net 249,796 228,851 — 228,851 —

Loans held-for-sale 54,695 58,510 — 58,510 —

20 unchanged sentences

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.

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.

The Company had amortization expense totaling less than $ 0.1 million for both the three and six months ended June 30, 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.

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.

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.

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.

March 31, 2025 December 31, 2024

The Company had amortization expense totaling $ 0.9 million and $ 1.7 million for the three and six months ended June 30, 2025, respectively, and $ 1.2 million and $ 2.2 million for the three and six months ended June 30, 2024, respectively, related to these previously terminated fair value hedges which was recognized as a reduction to interest income on loans.

The following table presents the notional amount and fair value of interest rate swaps utilized by the Company at June 30, 2025 and December 31, 2024.

June 30, 2025 December 31, 2024

(amounts in thousands) Notional

13 unchanged sentences

As a result of this offsetting relationship, no net gains or losses are recognized in income.

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.

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.

The Company received no cash collateral from counterparties as security for their obligations related to these swap transactions at June 30, 2025 and December 31, 2024.

As of June 30, 2025, the Company pledged cash collateral of $ 0.3 million to counterparties as security for its obligations related to these agreements.

The Company had no pledged cash collateral as of December 31, 2024 to counterparties as security for its obligations related to these agreements.

Collateral posted and received is dependent on the market valuation of the underlying hedges.

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.

Amount of Gain Recognized in Other Comprehensive Income for the Three Months Ended

(amounts in thousands) March 31, 2025 March 31, 2024

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 six months ended June 30, 2025 and 2024.

Amount of Loss Recognized in Other Comprehensive Income for the Three Months Ended Amount of Gain Recognized in Other Comprehensive Income for the Six Months Ended

(amounts in thousands) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Interest rate swap agreements $ — $ ( 262 ) $ — $ 640

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.

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.

(amounts in thousands) Three Months Ended

Line Item in the Condensed Consolidated Statements of Income March 31, 2025 March 31, 2024

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 and six months ended June 30, 2025 and 2024.

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 six months ended June 30, 2025 and 2024.

(amounts in thousands) Three Months Ended Six Months Ended

Line Item in the Condensed Consolidated Statements of Income June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Interest income

5 unchanged sentences

Total interest expense

— ( 929 ) — ( 1,946 )

Net interest income

$ — $ 1,344 $ — $ 2,775

Accumulated Other Comprehensive Loss

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.

The components of accumulated other comprehensive loss, included in shareholders' equity, for the six months ended June 30, 2025 and 2024, respectively, are presented in the table below.

(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

5 unchanged sentences

Other comprehensive income - net of tax 5,899 187 — 6,086

Balance, March 31, 2025 $ ( 27,006 ) $ ( 2,151 ) $ — $ ( 29,157 )

Balance, June 30, 2025 $ ( 24,514 ) $ ( 2,053 ) $ — $ ( 26,567 )

Balance, January 1, 2024 $ ( 30,174 ) $ ( 2,939 ) $ 3,738 $ ( 29,375 )

4 unchanged sentences

Other comprehensive (loss) income - net of tax ( 2,024 ) 319 493 ( 1,212 )

Balance, March 31, 2024 $ ( 31,773 ) $ ( 2,762 ) $ 4,433 $ ( 30,102 )

Balance, June 30, 2024 $ ( 32,198 ) $ ( 2,620 ) $ 4,231 $ ( 30,587 )

The components of accumulated other comprehensive loss, included in stockholders' equity, for the three months ended June 30, 2025 and 2024, respectively, are presented in the table below.

(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, April 1, 2025 $ ( 27,006 ) $ ( 2,151 ) $ — $ ( 29,157 )

Other comprehensive income before reclassifications from accumulated other comprehensive loss before tax 3,236 — — 3,236

Reclassifications from accumulated other comprehensive loss to earnings before tax — 132 132

Other comprehensive gain before tax 3,236 132 — 3,368

Income tax provision 744 34 — 778

Other comprehensive income - net of tax 2,492 98 — 2,590

Balance, June 30, 2025 $ ( 24,514 ) $ ( 2,053 ) $ — $ ( 26,567 )

Balance, April 1, 2024 $ ( 31,773 ) $ ( 2,762 ) $ 4,433 ( 30,102 )

Other comprehensive (loss) before reclassifications from accumulated other comprehensive loss before tax ( 551 ) — ( 262 ) ( 813 )

Reclassifications from accumulated other comprehensive loss to earnings before tax — 188 — 188

Other comprehensive (loss) gain before tax ( 551 ) 188 ( 262 ) ( 625 )

Income tax (benefit) provision ( 126 ) 46 ( 60 ) ( 140 )

Other comprehensive (loss) income - net of tax ( 425 ) 142 ( 202 ) ( 485 )

Balance, June 30, 2024 $ ( 32,198 ) $ ( 2,620 ) $ 4,231 $ ( 30,587 )

Amounts Reclassified from

Accumulated Other Comprehensive Income for the Three Months Ended Affected Line Item in the

Accumulated Other Comprehensive Loss for the Three Months Ended Amounts Reclassified from

Accumulated Other Comprehensive Loss for the Six Months Ended Affected Line Item in the

Statements of Operations

(amounts in thousands) March 31, 2025 March 31, 2024

(amounts in thousands) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Details About Accumulated Other Comprehensive Loss Components

Reclassifications from accumulated other comprehensive income to earnings before tax $ ( 132 ) ( 188 ) $ ( 252 ) $ ( 422 ) Interest income

Total amount reclassified before tax ( 120 ) ( 234 ) Income before income taxes

Total amount reclassified before tax ( 132 ) ( 188 ) ( 252 ) ( 422 ) (Loss) income before income taxes

Tax benefit ( 34 ) ( 46 ) ( 65 ) ( 103 ) Income tax (benefit) provision

Total reclassifications from accumulated other comprehensive income $ ( 89 ) $ ( 177 ) Net income

Total reclassifications from accumulated other comprehensive loss $ ( 98 ) $ ( 142 ) $ ( 187 ) $ ( 319 ) Net income

Segment Information

20 unchanged sentences

Disaggregation of Income Statement Expenses.

This ASU requires additional disclosures of the nature of expenses included in the Company’s income statement.

The new standard requires disclosures about specific types of expenses included the income statement.

4 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements