3 unchanged sentences
(Amounts in thousands except share data)
−Removed: September 30, 2025 December 31, 2024
+Added: March 31, 2026 December 31, 2025
Cash and due from banks $ 10,528 $ 6,145
46 unchanged sentences
First Internet Bancorp
−Removed: Condensed Consolidated Statements of Operations – Unaudited
+Added: Condensed Consolidated Statements of Income – Unaudited
(Amounts in thousands except share and per share data)
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 2025 2024
+Added: Three Months Ended March 31,
Interest income
11 unchanged sentences
Benefit for credit losses - debt securities held to maturity ( 6 ) ( 20 )
−Removed: Provision (benefit) for credit losses - off-balance sheet commitments 396 ( 439 ) 252 ( 398 )
−Removed: Net Interest (Loss) Income After Provision for Credit Losses ( 4,437 ) 18,375 23,108 53,957
−Removed: Noninterest (Loss) Income
+Added: Benefit for credit losses - off-balance sheet commitments ( 295 ) ( 168 )
+Added: Net interest income after provision for credit losses 15,293 13,163
+Added: Noninterest income
Service charges and fees 844 265
1 unchanged sentence
Loan servicing asset revaluation ( 1,060 ) ( 1,181 )
−Removed: (Loss) gain on sale of loans ( 27,103 ) 9,933 ( 16,783 ) 24,761
+Added: Gain on sale of loans 7,377 8,647
Other 1,501 713
−Removed: Total noninterest (loss) income ( 24,647 ) 12,029 ( 8,663 ) 31,409
+Added: Total noninterest income 11,518 10,427
Noninterest expense
8 unchanged sentences
Total noninterest expense 25,027 23,556
−Removed: (Loss) Income Before Income Taxes ( 54,543 ) 7,610 ( 56,371 ) 19,213
+Added: Income before income taxes 1,784 34
Income tax (benefit) provision ( 725 ) ( 909 )
−Removed: Net (Loss) Income $ ( 41,593 ) $ 6,990 $ ( 40,457 ) $ 17,946
−Removed: (Loss) Income Per Share of Common Stock
+Added: Net income $ 2,509 $ 943
+Added: Income per share of common stock
Basic $ 0.29 $ 0.11
6 unchanged sentences
First Internet Bancorp
−Removed: Condensed Consolidated Statements of Comprehensive (Loss) Income – Unaudited
+Added: Condensed Consolidated Statements of Comprehensive Income – Unaudited
(Amounts in thousands)
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 2025 2024
−Removed: Net (loss) income $ ( 41,593 ) $ 6,990 $ ( 40,457 ) $ 17,946
+Added: Three Months Ended March 31,
+Added: Net income $ 2,509 $ 943
Other comprehensive income
Securities available-for-sale
−Removed: Net unrealized holding gains recorded within other comprehensive income before income tax 4,454 10,620 12,114 7,995
−Removed: Income tax provision 1,027 2,442 2,788 1,841
−Removed: Net effect on other comprehensive income 3,427 8,178 9,326 6,154
+Added: Net unrealized holding (losses) gains recorded within other comprehensive income before (loss) income tax ( 1,623 ) 4,424
+Added: Income tax (benefit) provision ( 374 ) 1,017
+Added: Net effect on other comprehensive (loss) income ( 1,249 ) 3,407
Securities held-to-maturity
2 unchanged sentences
Net effect on other comprehensive income 74 89
−Removed: Cash flow hedges
−Removed: Net unrealized holding losses on cash flow hedging derivatives recorded within other comprehensive loss before income tax — ( 2,670 ) — ( 2,030 )
−Removed: Income tax benefit — ( 614 ) — ( 467 )
−Removed: Net effect on other comprehensive income — ( 2,056 ) — ( 1,563 )
−Removed: Total other comprehensive income 3,563 6,261 9,649 5,049
−Removed: Comprehensive (loss) income $ ( 38,030 ) $ 13,251 $ ( 30,808 ) $ 22,995
+Added: Total other comprehensive (loss) income ( 1,175 ) 3,496
+Added: Comprehensive income $ 1,334 $ 4,439
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, 2025 and 2024
+Added: Three Months Ended March 31, 2026 and 2025
(Amounts in thousands except share and per share data)
4 unchanged sentences
Balance, January 1, 2026 $ 186,577 $ 193,320 $ ( 20,130 ) $ 359,767
−Removed: Net loss — ( 40,457 ) — ( 40,457 )
+Added: Net Income — 2,509 — 2,509
Other comprehensive income — — ( 1,175 ) ( 1,175 )
2 unchanged sentences
Recognition of the fair value of share-based compensation 561 — — 561
−Removed: Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units 5 — — 5
Common stock redeemed for the net settlement of share-based awards ( 171 ) — — ( 171 )
−Removed: Balance, September 30, 2025 $ 186,608 $ 188,564 $ ( 23,004 ) $ 352,168
+Added: Balance, March 31, 2026 $ 186,967 $ 195,292 $ ( 21,305 ) $ 360,954
Balance, January 1, 2025 $ 186,094 $ 230,622 $ ( 32,653 ) $ 384,063
4 unchanged sentences
Recognition of the fair value of share-based compensation 1 — — 1
−Removed: Repurchased shares of common stock ( 10,500 shares)
−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
−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, 2025 and 2024
−Removed: (Amounts in thousands except share and per share data)
−Removed: Stock Retained
−Removed: Earnings Accumulated
−Removed: Comprehensive
−Removed: Shareholders’
−Removed: Balance, July 1, 2025 186,116 $ 230,690 $ ( 26,567 ) $ 390,239
−Removed: Net loss — ( 41,593 ) — ( 41,593 )
−Removed: Other comprehensive income — — 3,563 3,563
−Removed: Dividends declared ($ 0.06 per share)
−Removed: — ( 533 ) — ( 533 )
−Removed: Recognition of the fair value of share-based compensation 490 — — 490
−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, 2025 $ 186,608 $ 188,564 $ ( 23,004 ) $ 352,168
−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
+Added: Balance, March 31, 2025 $ 185,873 $ 231,031 $ ( 29,157 ) $ 387,747
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
−Removed: Net (loss) income $ ( 40,457 ) $ 17,946
−Removed: Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
+Added: Net income $ 2,509 $ 943
+Added: Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 2,710 1,070
4 unchanged sentences
Proceeds from sale of loans 119,728 141,771
−Removed: Loss (gain) on loans sold 16,783 ( 24,761 )
−Removed: Gain on sale of other real estate owned ( 19 ) ( 31 )
−Removed: (Gain) loss on derivatives ( 106 ) 768
−Removed: Gain on bank-owned life insurance — ( 149 )
+Added: Gain on loans sold ( 7,377 ) ( 8,647 )
+Added: Loss (gain) on sale of other real estate owned 15 ( 19 )
+Added: Gain on derivatives — ( 216 )
Loan servicing asset revaluation 1,060 1,181
1 unchanged sentence
Net change in accrued expenses and other liabilities 1,805 ( 2,141 )
−Removed: Net cash (used in) provided by operating activities ( 20,274 ) 19,147
+Added: Net cash provided by operating activities 75,550 32,825
Investing activities
6 unchanged sentences
Purchase of premises and equipment ( 299 ) ( 184 )
−Removed: Proceeds from bank-owned life insurance — 737
Loans purchased — ( 36,907 )
−Removed: Net proceeds from sale of portfolio loans 799,297 —
Other investing activities ( 938 ) ( 5,160 )
−Removed: Net cash provided by (used in) investing activities 406,615 ( 341,287 )
+Added: Net cash used in investing activities ( 61,652 ) ( 216,446 )
Financing activities
−Removed: Net (decrease) increase in deposits ( 17,772 ) 730,737
+Added: Net increase in deposits 141,837 12,419
Cash dividends paid ( 521 ) ( 520 )
−Removed: Repurchase of common stock — ( 283 )
Proceeds from advances from Federal Home Loan Bank — 100,000
1 unchanged sentence
Other, net ( 186 ) ( 234 )
−Removed: Net cash (used in) provided by financing activities ( 65,090 ) 628,721
−Removed: Net Increase in Cash and Cash Equivalents 321,251 306,581
+Added: Net cash provided by financing activities 131,130 111,665
+Added: Net increase (decrease) in cash and cash equivalents 145,028 ( 71,956 )
Cash and cash equivalents, beginning of period 456,777 466,410
2 unchanged sentences
Cash paid during the period for interest 44,724 52,583
−Removed: Cash paid during the period for taxes 258 492
+Added: Cash (received) paid during the period for taxes ( 368 ) 146
Loans transferred to other real estate owned — 1,518
−Removed: Loans transferred to held-for-sale from portfolio 863,766 —
Cash dividends declared, paid in subsequent period 523 522
+Added: Securities purchased during the period, settled in subsequent period 5,581 —
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.
−Removed: The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results expected for the year ending December 31, 2025 or any other period.
−Removed: The September 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.
+Added: The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results expected for the year ending December 31, 2026 or any other period.
+Added: The March 31, 2026 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, 2025.
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.
5 unchanged sentences
It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations, and cash flows of the Company.
−Removed: (Loss) Earnings Per Share
−Removed: (Loss) 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 (loss) earnings per share computations for the three and nine months ended September 30, 2025 and 2024.
−Removed: (dollars in thousands, except share and per share data) Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 2025 2024
+Added: Earnings Per Share
+Added: Earnings per share of common stock are based on the weighted-average number of basic shares and dilutive shares outstanding during the period.
+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, 2026 and 2025.
+Added: (dollars in thousands, except share and per share data) Three Months Ended March 31,
Basic earnings per share
−Removed: Net (loss) income $ ( 41,593 ) $ 6,990 $ ( 40,457 ) $ 17,946
+Added: Net income $ 2,509 $ 943
Weighted-average common shares 8,734,383 8,715,655
−Removed: Basic (loss) earnings per common share $ ( 4.76 ) $ 0.80 $ ( 4.63 ) $ 2.07
+Added: Basic earnings per common share $ 0.29 $ 0.11
Diluted earnings per share
−Removed: Net (loss) income $ ( 41,593 ) $ 6,990 $ ( 40,457 ) $ 17,946
+Added: Net income $ 2,509 $ 943
Weighted-average common shares 8,734,383 8,715,655
1 unchanged sentence
Weighted-average common and incremental shares 8,774,111 8,784,970
−Removed: Diluted (loss) earnings per common share 1
+Added: Diluted earnings per common share 1
$ 0.29 $ 0.11
1 Potential dilutive common shares are excluded from the computation of diluted EPS in the periods where the effect would be antidilutive.
−Removed: Since the Company was in a loss position for the three and nine months ended September 30, 2025, basic net loss is the same as diluted net loss per share, as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive.
−Removed: There were no antidilutive shares for both the three and nine months ended September 30, 2024.
−Removed: The following tables summarize securities available-for-sale and securities held-to-maturity as of September 30, 2025 and December 31, 2024.
−Removed: September 30, 2025
+Added: There were 11,186 and 3,916 weighted-average antidilutive shares excluded from the computation of diluted EPS for the three months ended March 31, 2026 and 2025, respectively.
+Added: The following tables summarize securities available-for-sale (“AFS”) and securities held-to-maturity (“HTM”) as of March 31, 2026 and December 31, 2025.
+Added: March 31, 2026
Amortized Cost Gross Unrealized Fair Value
10 unchanged sentences
Total available-for-sale $ 797,393 $ 2,369 $ ( 27,727 ) $ 772,035
−Removed: September 30, 2025
+Added: March 31, 2026
Amortized Cost Gross Unrealized Fair Value Allowance for Credit Losses Net Carrying Value
6 unchanged sentences
Total held-to-maturity $ 276,137 $ 1,337 $ ( 15,058 ) $ 262,416 $ ( 95 ) $ 276,042
−Removed: 1 Includes $ 0.2 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of September 30, 2025.
+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, 2026.
December 31, 2025
22 unchanged sentences
1 Includes $ 0.2 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of December 31, 2025.
−Removed: Accrued interest receivable on AFS and HTM securities at September 30, 2025 was $ 2.5 million and $ 1.0 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.
+Added: Accrued interest receivable on AFS and HTM securities at March 31, 2026 was $ 2.9 million and $ 1.0 million, respectively, compared to $ 3.0 million and $ 1.1 million, respectively, at December 31, 2025, 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 September 30, 2025 and December 31, 2024, approximately 95 % and 92 %, respectively, of mortgage-backed securities (including both AFS and HTM) held by the Company are issued by U.S.
+Added: At March 31, 2026 and December 31, 2025, approximately 86 % and 84 %, 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, 2025 was $ 0.1 million, compared to $ 0.2 million at December 31, 2024.
−Removed: The carrying value of securities at September 30, 2025 is shown below by their contractual maturity date.
+Added: The ACL on HTM securities was $ 0.1 million at both March 31, 2026 and December 31, 2025.
+Added: The carrying value of securities at March 31, 2026 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 $ 276,137 $ 262,416
−Removed: No available-for-sale securities were sold during the three and nine months ended September 30, 2025 and September 30, 2024.
−Removed: As such, the Company did not realize any gains or losses related to the sale of available-for-sale securities during either time period.
+Added: No AFS securities were sold during the three months ended March 31, 2026 and March 31, 2025.
+Added: As such, the Company did not realize any gains or losses related to the sale of AFS 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, 2025 and December 31, 2024 was $ 589.1 million and $ 603.9 million, which was approximately 66 % and 72 %, respectively, of the Company’s AFS and HTM securities portfolios.
−Removed: As of September 30, 2025, the Company’s security portfolio consisted of 593 positions, of which 421 were in an unrealized loss position.
+Added: The total fair value of these investments at March 31, 2026 and December 31, 2025 was $ 633.1 million and $ 611.2 million, which was approximately 60 % and 59 %, respectively, of the Company’s AFS and HTM securities portfolios.
+Added: As of March 31, 2026, the Company’s security portfolio consisted of 623 positions, of which 412 were in an unrealized loss position.
As of December 31, 2025, the Company’s security portfolio consisted of 618 positions, of which 395 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.
−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, 2025 and December 31, 2024.
−Removed: September 30, 2025
+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, 2026 and December 31, 2025.
+Added: March 31, 2026
Less Than 12 Months 12 Months or Longer Total
29 unchanged sentences
Total $ 177,094 $ ( 514 ) $ 309,587 $ ( 25,441 ) $ 486,681 $ ( 25,955 )
−Removed: The following tables summarize ratings for the Company’s HTM portfolio as of September 30, 2025 and December 31, 2024.
−Removed: September 30, 2025
+Added: The following tables summarize ratings for the Company’s HTM portfolio as of March 31, 2026 and December 31, 2025.
+Added: March 31, 2026
Held-to-Maturity
7 unchanged sentences
Baa3/BBB- — — — 4,536 4,536
−Removed: Baa3/BBB- — — — 5,536 5,536
−Removed: Ba1/BB+ — — — 2,000 2,000
+Added: — — — 2,000 2,000
Total $ 10,374 $ 241,611 $ 5,616 $ 18,536 $ 276,137
+Added: 1 This security previously had a BBB rating, but the issuer was acquired during the first quarter 2026.
+Added: The acquiring company did not have any outstanding subordinated debt issuances prior to the acquisition and, therefore, did not have a rating at the time of acquisition.
December 31, 2025
11 unchanged sentences
Total $ 11,009 $ 213,530 $ 5,635 $ 20,536 $ 250,710
−Removed: There were no amounts reclassified from accumulated other comprehensive loss to the condensed consolidated statements of operations during the three and nine months ended September 30, 2025 and 2024.
−Removed: Loan balances as of September 30, 2025 and December 31, 2024 are summarized in the table below.
+Added: Equity Investments
+Added: Equity investments, largely comprised of non-marketable equity investments, are generally accounted for under equity security accounting and are included within accrued income and other assets on the consolidated balance sheet.
+Added: The Company’s non-marketable equity investments consist of limited partner interests in venture capital and Small Business Investment Company (“SBIC”) funds.
+Added: After the initial commitment and over the course of the investment period, the Company will make capital contributions and receive a proportional share of profit and return of capital distributions as a result of fund performance until the funds wind down.
+Added: While the partnership agreements allow the Company to remove the general partner, this right is not considered to be substantive as the general partner can only be removed for cause.
+Added: All of these investments are generally non-redeemable and distributions are generally expected to be received through the liquidation of the underlying investments throughout the life of the investment fund.
+Added: Investments may only be sold or transferred subject to the notice and approval provisions of the underlying investment agreements.
+Added: The following tables provide additional information related to equity investments accounted for under equity security accounting.
+Added: The carrying amount of each equity investment with a readily determinable fair value or net asset value at March 31, 2026 and December 31, 2025 is reflected in the following table:
+Added: (amounts in thousands) March 31, 2026 December 31, 2025
+Added: GenOpp Financial Fund LP $ 2,998 $ 2,876
+Added: Total $ 2,998 $ 2,876
+Added: The carrying amount of the Company’s investments in non-marketable equity securities with no readily determinable fair value and amounts recognized in earnings on a cumulative basis at March 31, 2026 and December 31, 2025 is reflected in the following table:
+Added: (amounts in thousands) March 31, 2026 December 31, 2025
+Added: Carrying value 1
+Added: $ 38,023 $ 38,611
+Added: Carrying value adjustments — —
+Added: Impairment — —
+Added: Upward changes for observable prices — —
+Added: Downward changes for observable prices — —
+Added: Net change $ 38,023 $ 38,611
+Added: 1 Excludes $ 14.3 million and $ 14.6 million in unfunded commitments as of March 31, 2026 and December 31, 2025, respectively.
+Added: Variable Interest Entities
+Added: The above investments meet the criteria of a VIE.
+Added: However, the Company is not the primary beneficiary of the entities as it does not have the power to direct the activities that most significantly impact the economic performance of the entities.
+Added: The Company’s maximum exposure to loss from unconsolidated VIEs includes the value of the investment recorded on the Company’s consolidated balance sheets and unfunded commitment.
+Added: The Company believes the potential for loss from these investments is remote, the maximum exposure for the affordable housing investment was determined by assuming a scenario where related tax credits were recaptured.
+Added: The following table provides a summary of VIEs that the Company has not consolidated as March 31, 2026 and December 31, 2025:
+Added: March 31, 2026
+Added: (amounts in thousands) Carrying Amount Maximum Exposure to Loss Liability Recognized Classification
+Added: Private equity and venture capital funds $ 13,354 $ 19,332 $ — Other assets (1)
+Added: Hedge funds 2,998 2,998 — Other assets (2)
+Added: SBIC 7,292 13,000 — Other assets (3)
+Added: Affordable housing 7,378 12,519 — Other assets (4)
+Added: Non-marketable and other equity investments 10,000 10,000 — Other assets (5)
+Added: December 31, 2025
+Added: (amounts in thousands) Carrying Amount Maximum Exposure to Loss Liability Recognized Classification
+Added: Private equity and venture capital funds $ 13,685 $ 20,208 $ — Other assets (6)
+Added: Hedge funds 2,876 2,876 — Other assets (7)
+Added: SBIC 7,292 13,000 — Other assets (8)
+Added: Affordable housing 7,634 12,519 — Other assets (9)
+Added: Non-marketable and other equity investments 10,000 10,000 — Other assets (10)
+Added: (1) Maximum exposure to loss includes $ 13.4 million of current investments and $ 6.0 million in unfunded commitments.
+Added: (2) Maximum exposure to loss includes $ 2.9 million of current investments.
+Added: (3) Maximum exposure to loss includes $ 7.3 million of current investments and $ 5.7 million in unfunded commitments.
+Added: (4) Maximum exposure to loss includes $ 7.4 million of current investments, $ 2.6 million in unfunded commitments and a scenario in which related tax credits of $ 2.5 million are recaptured, totaling $ 12.5 million.
+Added: (5) Maximum exposure to loss includes $ 10.0 million of current investments.
+Added: (6) Maximum exposure to loss includes $ 13.7 million of current investments and $ 6.0 million in unfunded commitments.
+Added: (7) Maximum exposure to loss includes $ 2.9 million of current investments.
+Added: (8) Maximum exposure to loss includes $ 7.3 million of current investments and $ 5.7 million in unfunded commitments.
+Added: (9) Maximum exposure to loss includes $ 7.6 million of current investments, $ 2.6 million in unfunded commitments and a scenario in which related tax credits of $ 2.5 million are recaptured, totaling $ 12.5 million.
+Added: (10) Maximum exposure to loss includes $ 10.0 million of current investments.
+Added: Loan balances as of March 31, 2026 and December 31, 2025 are summarized in the table below.
Categories of loans include:
−Removed: (amounts in thousands) September 30, 2025 December 31, 2024
+Added: (amounts in thousands) March 31, 2026 December 31, 2025
Commercial loans
21 unchanged sentences
Net loans $ 3,719,374 $ 3,691,042
−Removed: 1 Balances include $ 43.5 million and $ 34.0 million that is guaranteed by the U.S.
−Removed: government as of September 30, 2025 and December 31, 2024, respectively.
−Removed: 2 Includes carrying value adjustment of $ 20.2 million and $ 22.9 million related to terminated interest rate swaps associated with public finance loans as of September 30, 2025 and December 31, 2024, respectively.
−Removed: During the nine months ended September 30, 2025, the Company sold $ 836.9 million of single tenant lease financing loans.
−Removed: Subsequent to September 30, 2025, the Company sold an additional $ 14.3 million of single tenant lease financing loans.
+Added: 1 Balances include $ 59.5 million and $ 52.2 million that are guaranteed by the U.S.
+Added: government as of March 31, 2026 and December 31, 2025, respectively.
+Added: 2 Includes carrying value adjustment of $ 18.1 million and $ 19.1 million related to terminated interest rate swaps associated with public finance loans as of March 31, 2026 and December 31, 2025, respectively.
The general risk characteristics specific to each loan portfolio segment are as follows:
52 unchanged sentences
Loans may, but do not always, have a collateral shortfall.
−Removed: For SBA loans where the guaranteed portion is retained, the SBA guaranty provides a tertiary source of repayment to the Bank in event of borrower default.
+Added: For SBA loans where the guaranteed portion is retained, the SBA guaranty provides a tertiary source of repayment to the Bank in the event of borrower default.
Cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value.
1 unchanged sentence
Franchise Finance:
−Removed: These loans are made on a nationwide basis through our partnership with ApplePie Capital, which through their deep relationships with franchise brands provides franchisees with financing options for new franchise units, recapitalization, expansion, equipment and working capital.
+Added: These loans are made on a nationwide basis with financing options for new franchise units, recapitalization, expansion, equipment and working capital.
The sources of repayment are either based on identified cash flows from existing operations of the borrower or pro forma cash flow for new franchise locations.
Residential Mortgage:
−Removed: With respect to residential loans that are secured by 1-to-4 family residences and are generally owner occupied, the Company typically establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded.
+Added: With respect to residential loans that are secured by 1-to-4 family residences and are generally owner occupied, the Company typically establishes a maximum loan-to-value ratio and requires private mortgage
+Added: insurance if that ratio is exceeded.
Repayment of these loans is primarily dependent on the financial circumstances of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels.
2 unchanged sentences
Home equity loans and lines of credit are typically secured by a subordinate interest in 1-to-4 family residences.
−Removed: The properties securing the home equity portfolio segment are generally geographically diverse as the Company offers these products on a nationwide basis.
Repayment of these loans and lines of credit is primarily dependent on the financial circumstances of the borrowers and may be impacted by changes in unemployment levels and property values on residential properties, among other economic conditions in the market.
+Added: Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers in geographically diverse locations throughout the country.
Other Consumer:
4 unchanged sentences
Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers in geographically diverse locations throughout the country.
−Removed: Allowance for Credit Losses (“ACL”) Methodology
+Added: ACL Methodology
The ACL for loans represents management's estimate of all expected credit losses over the expected life of the Company’s existing loan portfolio.
1 unchanged sentence
When the Company is unable to forecast future economic events, management may revert to historical information.
−Removed: The Company's methodologies incorporate a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average.
+Added: The Company's methodologies incorporate a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average for most segments.
The ACL methodology may also consider other adjustments to address changes in conditions, trends, and circumstances such as local industry changes that could have a significant impact on the risk profile of the loan portfolio and provide for adjustments that may not be reflected and/or captured in the historical loss data.
1 unchanged sentence
lending policies, imprecision in forecasting future economic conditions, loan profile, lending staff, problem loan trends, loan review, collateral, credit concentration, or other internal and external factors.
−Removed: The Company also includes qualitative adjustments to the allowance based on factors and considerations that have not otherwise been fully accounted for.
−Removed: Qualitative adjustments include, but are not limited to:
+Added: The Company includes these as qualitative adjustments to the ACL which include, but are not limited to:
• Changes in lending policies and procedures, including changes in underwriting standards and collections, charge-offs and recovery practices
−Removed: • Changes in international, national, regional and local conditions
+Added: • Changes in international, national, regional and local economic conditions
• Changes in the nature and volume of the portfolio and terms of loans
1 unchanged sentence
• Changes in the volume and severity of past due loans and other similar conditions
−Removed: • Changes in the quality of the organization’s loan review system
+Added: • Changes in the quality of the Company’s loan review system
• Changes in the value of underlying collateral for collateral dependent loans
• The existence and effect of any concentrations of credit and changes in the levels of such concentrations
−Removed: • The effect of other external factors (i.e.
+Added: • The effect of other external factors (e.g.
competition, legal and regulatory requirements) on the level of estimated credit losses
1 unchanged sentence
The Company segments its portfolio generally by Federal Financial Institutions Examination Council ("FFIEC") Call Report codes that align with its lines of business.
−Removed: Additional sub-segmentation may be utilized to identify groups of loans with unique risk characteristics relative to the rest of the portfolio.
+Added: Additional sub-segmentation has not been utilized to identify groups of loans with unique risk characteristics relative to the rest of the portfolio.
Loans that do not share similar risk characteristics are evaluated on an individual basis.
These evaluations are typically performed on loans with a deteriorated internal risk rating.
−Removed: The allowance for credit loss is determined based on several methods, including estimating the fair value of the underlying collateral or the present value of expected cash flows.
−Removed: The Company relies on a third-party platform that offers multiple methodologies to measure historical life-of-loan losses.
+Added: The ACL is determined based on several methods, including estimating the fair value of the underlying collateral or the present value of expected cash flows.
Modified Loans to Borrowers Experiencing Financial Difficulty
4 unchanged sentences
The Company typically measures the ACL on modified loans to borrowers experiencing financial difficulty on an individual basis when the loans are deemed to no longer share risk characteristics that are similar with other loans in the portfolio.
−Removed: The determination of the ACL for these loans is based on a discounted cash flow approach for both those measured collectively and individually, unless the loan is deemed collateral dependent, which requires measurement of the ACL based on the estimated expected fair value of the underlying collateral, less costs to sell.
+Added: The calculation of the ACL for these loans is based on a discounted cash flow approach for both those measured collectively and individually, unless the loan is deemed collateral dependent, which requires measurement of the ACL based on the estimated expected fair value of the underlying collateral, less costs to sell.
GAAP requires the Company to make certain disclosures related to these loans, including certain types of modifications, as well as how such loans have performed since their modifications.
2 unchanged sentences
Such an evaluation, which includes a review of all loans for which full repayment may not be reasonably assured, considers, among other matters, the estimated net realizable value of the underlying collateral, as applicable, economic conditions, loan loss experience, and other factors that are particularly susceptible to changes that could result in a material adjustment in the near term.
−Removed: While management attempts to use the best information available in making its evaluations, future allowance adjustments may be necessary if economic conditions change substantially from the assumptions used in making the evaluations.
+Added: While management attempts to use the best information available in making its evaluations, future ACL adjustments may be necessary if conditions change substantially from the assumptions used in making the evaluations.
Policy for Charging Off Loans
The Company’s policy is to charge off a loan at any point in time when it no longer can be considered a bankable asset, meaning collectible within the parameters of policy.
−Removed: A secured loan is generally charged down to the estimated fair value of the collateral, less costs to sell, no later than when it is 120 days past due as to principal or interest.
−Removed: An unsecured loan generally is charged off no later than when it is 180 days past due as to principal or interest.
−Removed: 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, 2025 and 2024.
−Removed: (amounts in thousands) Three Months Ended September 30, 2025
−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 $ 1,907 $ ( 40 ) $ ( 93 ) $ 2 $ 1,776
−Removed: Owner-occupied commercial real estate 472 ( 186 ) — — 286
−Removed: Investor commercial real estate 1,609 1,106 — — 2,715
−Removed: Construction 1,771 179 — — 1,950
−Removed: Single tenant lease financing 4,446 ( 3,794 ) — — 652
−Removed: Public finance 522 ( 93 ) — — 429
−Removed: Healthcare finance 1,199 ( 482 ) — — 717
−Removed: Small business lending 13,722 29,634 ( 15,883 ) 635 28,108
−Removed: Franchise finance 13,082 10,094 ( 5,385 ) 64 17,855
−Removed: Residential mortgage 1,923 268 ( 17 ) — 2,174
−Removed: Home equity 92 ( 54 ) — 2 40
−Removed: Other consumer loans 5,772 ( 2,239 ) ( 374 ) 62 3,221
−Removed: Total $ 46,517 $ 34,393 $ ( 21,752 ) $ 765 $ 59,923
−Removed: (amounts in thousands) Nine Months Ended September 30, 2025
−Removed: Allowance for credit losses:
−Removed: Balance, Beginning of Period Provision (Credit) Charged to Expense Losses
−Removed: Charged Off Recoveries Balance,
−Removed: End of Period
−Removed: Commercial and industrial $ 1,265 $ 598 $ ( 93 ) $ 6 $ 1,776
−Removed: Owner-occupied commercial real estate 528 ( 242 ) — — 286
−Removed: Investor commercial real estate 1,149 1,566 — — 2,715
−Removed: Construction 1,984 ( 34 ) — — 1,950
−Removed: Single tenant lease financing 4,782 ( 4,130 ) — — 652
−Removed: Public finance 703 ( 274 ) — — 429
−Removed: Healthcare finance 1,412 ( 695 ) — — 717
−Removed: Small business lending 16,161 42,542 ( 31,403 ) 808 28,108
−Removed: Franchise finance 8,976 22,268 ( 13,471 ) 82 17,855
−Removed: Residential mortgage 2,136 59 ( 28 ) 7 2,174
−Removed: Home equity 106 ( 71 ) — 5 40
−Removed: Other consumer loans 5,567 ( 1,477 ) ( 1,046 ) 177 3,221
−Removed: Total $ 44,769 $ 60,110 $ ( 46,041 ) $ 1,085 $ 59,923
−Removed: (amounts in thousands) Three Months Ended September 30, 2024
+Added: Commercial loans are generally charged off when management determines they are uncollectible.
+Added: Consumer loans are generally charged off when they reach a specified level of delinquency, unless they are well secured and in the process of collection.
+Added: The following tables present changes in the balance of the ACL during the three months ended March 31, 2026 and 2025.
+Added: (amounts in thousands) Three Months Ended March 31, 2026
Allowance for credit losses:
−Removed: Balance, Beginning of Period (Credit) Provision Charged to Expense Losses
−Removed: Charged Off Recoveries Balance,
+Added: Balance, Beginning of Period Provision (Credit) Charged to Expense Charge-Offs Recoveries Balance,
End of Period
12 unchanged sentences
Total $ 55,686 $ 16,606 $ ( 16,340 ) $ 544 $ 56,496
−Removed: (amounts in thousands) Nine Months Ended September 30, 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
−Removed: Charged Off Recoveries Balance,
+Added: Balance, Beginning of Period Provision (Credit) Charged to Expense Charge-Offs Recoveries Balance,
End of Period
12 unchanged sentences
Total $ 44,769 $ 12,121 $ ( 9,841 ) $ 189 $ 47,238
−Removed: Accrued interest receivable on loans totaled $ 21.6 million and $ 28.2 million at September 30, 2025 and December 31, 2024, respectively, and is excluded from the estimate of credit losses.
+Added: Accrued interest receivable on loans totaled $ 23.1 million at both March 31, 2026 and December 31, 2025 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.
Accrued interest deemed uncollectible will be written off through interest income.
−Removed: In addition to the ACL, the Company established a reserve for off-balance sheet commitments, classified in other liabilities, as required by the adoption of the CECL methodology for measuring credit losses.
−Removed: This reserve is maintained at a level management believes to be sufficient to absorb losses arising from unfunded loan commitments.
+Added: In addition to the ACL, the Company maintains a reserve for off-balance sheet commitments, classified in other liabilities.
+Added: This reserve is at a level management believes to be sufficient to absorb losses arising from unfunded loan commitments.
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 (benefit) provision for credit losses on off-balance sheet commitments for the three and nine months ended September 30, 2025.
−Removed: (amounts in thousands) Balance
−Removed: June 30, 2025 (Benefit) Provision for Credit Losses Balance
−Removed: September 30, 2025
−Removed: Off-balance sheet commitments
−Removed: Commercial loans
−Removed: Commercial and industrial $ 199 $ ( 4 ) $ 195
−Removed: Investor commercial real estate 33 24 57
−Removed: Construction 1,757 291 2,048
−Removed: Single tenant lease financing 5 ( 4 ) 1
−Removed: Small business lending 1 90 91
−Removed: Total commercial loans 1,995 397 2,392
−Removed: Consumer loans
−Removed: Residential mortgage 1 ( 1 ) —
−Removed: Home equity — — —
−Removed: Other consumer loans — — —
−Removed: Total consumer loans 1 ( 1 ) —
−Removed: Total allowance for off-balance sheet commitments $ 1,996 $ 396 $ 2,392
+Added: The following tables detail activity in the (benefit) provision for credit losses on off-balance sheet commitments for the three months ended March 31, 2026 and 2025.
(amounts in thousands) Balance
December 31, 2025 (Benefit) Provision for Credit Losses Balance
−Removed: September 30, 2025
−Removed: Off-balance sheet commitments
−Removed: Commercial loans
−Removed: Commercial and industrial $ 233 $ ( 38 ) $ 195
−Removed: Owner-occupied commercial real estate 11 ( 11 ) —
−Removed: Investor commercial real estate 1 56 57
−Removed: Construction 1,568 480 2,048
−Removed: Single tenant lease financing 19 ( 18 ) 1
−Removed: Small business lending 263 ( 172 ) 91
−Removed: Total commercial loans 2,095 297 2,392
−Removed: Consumer loans
−Removed: Residential mortgage 1 ( 1 ) —
−Removed: Home equity 35 ( 35 ) —
−Removed: Other consumer loans 9 ( 9 ) —
−Removed: Total consumer loans 45 ( 45 ) —
−Removed: Total allowance for off-balance sheet commitments $ 2,140 $ 252 $ 2,392
−Removed: The following table details activity in the (benefit) provision for credit losses on off-balance sheet commitments for the three and nine months ended September 30, 2024.
−Removed: (amounts in thousands) Balance
−Removed: June 30, 2024 Provision (Benefit) for Credit Losses Balance
−Removed: September 30, 2024
+Added: March 31, 2026
Off-balance sheet commitments
1 unchanged sentence
Commercial and industrial $ 177 $ 9 $ 186
−Removed: Owner-occupied commercial real estate — 24 24
Investor commercial real estate 36 20 56
3 unchanged sentences
Total commercial loans 2,585 ( 295 ) 2,290
−Removed: Consumer loans
−Removed: Residential mortgage 3 ( 1 ) 2
−Removed: Home equity 33 1 34
−Removed: Other consumer loans 11 — 11
−Removed: Total consumer loans 47 — 47
Total allowance for off-balance sheet commitments $ 2,585 $ ( 295 ) $ 2,290
1 unchanged sentence
December 31, 2024 (Benefit) Provision for Credit Losses Balance
−Removed: September 30, 2024
+Added: March 31, 2025
Off-balance sheet commitments
16 unchanged sentences
• “Pass” - Higher quality loans that do not fit any of the other categories described below.
−Removed: • “Special Mention” - Loans that possess some credit deficiency or potential weakness, which deserve close attention.
+Added: • “Special Mention” - Loans that possess some potential credit deficiency or weakness, which deserve close attention.
• “Substandard” - Loans that possess a defined weakness or weaknesses that jeopardize the liquidation of the debt.
4 unchanged sentences
however, based on existing conditions, these weaknesses make full collection of the principal balance highly improbable.
−Removed: • “Loss” - Loans that are considered uncollectible and of such little value that continuing to carry them as assets is not warranted.
The Company does not risk grade its consumer loans.
3 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, 2025 and December 31, 2024.
−Removed: September 30, 2025
+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, 2026 and December 31, 2025.
+Added: March 31, 2026
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 — — — — — — — — —
−Removed: September 30, 2025
+Added: March 31, 2026
Term Loans (amortized cost basis by origination year) Revolving loans amortized cost basis Revolving loans converted to term
128 unchanged sentences
Total year-to-date gross charge-offs $ 573 $ 17,376 $ 25,910 $ 12,661 $ 5,262 $ 1,307 $ — $ — $ 63,089
−Removed: The following tables present the Company’s loan portfolio delinquency, including nonperforming loans, as of September 30, 2025 and December 31, 2024.
−Removed: September 30, 2025
+Added: The following tables present the Company’s loan portfolio delinquency, including nonperforming loans, as of March 31, 2026 and December 31, 2025.
+Added: March 31, 2026
(amounts in thousands) 30-59
41 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:
−Removed: September 30, 2025 December 31, 2024
+Added: March 31, 2026 December 31, 2025
(amounts in thousands) Nonaccrual Loans Nonaccrual Loans with No Allowance for Credit Losses Total Loans
4 unchanged sentences
Small business lending 1
+Added: 21,292 20,496 268 19,781 18,928 —
Franchise finance 23,350 1,668 6,779 26,978 4,463 1,144
2 unchanged sentences
Total loans $ 52,941 $ 28,564 $ 8,655 $ 56,387 $ 31,114 $ 2,151
−Removed: Interest income recognized on nonaccrual loans was $ 0.1 million and $ 1.1 million for the three and nine months ended September 30, 2025, respectively, and less than $ 0.1 million for both the three and nine months ended September 30, 2024.
+Added: 1 Balance includes $ 15.5 million and $ 13.6 million at March 31, 2026 and December 31, 2025, respectively, of loans guaranteed by the U.S.
+Added: Interest income recognized on nonaccrual loans was $ 0.1 million for both the three months ended March 31, 2026 and 2025.
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.
3 unchanged sentences
Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and/or customer financial statements.
−Removed: 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, 2025 and December 31, 2024.
−Removed: September 30, 2025
+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, 2026 and December 31, 2025.
+Added: March 31, 2026
(amounts in thousands) Commercial Real Estate Residential Real Estate Other (Includes Equipment, Machinery and Other Assets) Total Allowance on Collateral Dependent Loans
−Removed: Owner-occupied commercial real estate $ 1,654 $ — $ — $ 1,654 $ —
Small business lending 1
9 unchanged sentences
6,732 — 7,681 14,413 411
−Removed: Franchise finance — — 3,468 3,468 679
Residential mortgage — 4,893 — 4,893 —
5 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.
−Removed: The Company had one loan modification made to borrowers experiencing financial difficulty during the three months ended September 30, 2025.
−Removed: The Company had ten loan modifications made to borrowers experiencing financial difficulty during the nine months ended September 30, 2025.
−Removed: The Company had three loan modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024.
−Removed: The following tables present loans that were both experiencing financial difficulty and modified during the three months ended September 30, 2025 and September 30, 2024.
−Removed: Three Months Ended September 30, 2025
−Removed: (dollars in thousands) Payment Delay Total Modification by Loan Class % of Class of Loans
−Removed: Franchise finance $ 562 $ 562 0.1 %
−Removed: Total $ 562 $ 562
−Removed: Three Months Ended September 30, 2024
−Removed: (dollars in thousands) 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 $ 7,759 $ 7,759
−Removed: The following tables present loans that were both experiencing financial difficulty and modified during the nine months ended September 30, 2025 and September 30, 2025.
−Removed: Nine Months Ended September 30, 2025
+Added: The Company had one loan modification made to borrowers experiencing financial difficulty during the three months ended March 31, 2026.
+Added: The Company had two loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2025.
+Added: The following tables present loans that were both experiencing financial difficulty and modified during the three months ended March 31, 2026 and 2025.
+Added: Three Months Ended March 31, 2026
(dollars in thousands) Payment Delay Total Modification by Loan Class % of Class of Loans
Commercial and industrial $ 19 $ 19 0.01 %
−Removed: Single tenant lease financing 4,672 4,672 4.3 %
−Removed: Healthcare finance 2,610 2,610 1.7 %
−Removed: Small business lending 3,013 3,013 0.8 %
−Removed: Franchise finance 562 562 0.1 %
Total $ 19 $ 19
−Removed: Nine Months Ended September 30, 2024
+Added: Three Months Ended March 31, 2025
(dollars in thousands) 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 %
+Added: Healthcare finance 2,658 2,658 1.60 %
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 loans that were modified within the twelve months ended September 30, 2025.
−Removed: Twelve Months Ended September 30, 2025
+Added: The following table presents the performance of loans that were modified within the twelve months ended March 31, 2026.
+Added: Twelve Months Ended March 31, 2026
(amounts in thousands) Current 30 - 89 Days
6 unchanged sentences
Total $ 3,466 $ 1,803 $ 19
−Removed: There was one loan totaling $ 1.7 million that was modified within the twelve months ended September 30, 2025 that subsequently defaulted during the period presented.
+Added: There were no loans that were modified within the twelve months ended March 31, 2026 that subsequently defaulted during the period presented.
Other Real Estate Owned
−Removed: The Company had $ 1.8 million in other real estate owned (“OREO”) as of September 30, 2025, which consisted of two small business lending properties.
−Removed: The Company had $ 0.3 million in OREO as of December 31, 2024, which consisted of one residential mortgage property.
−Removed: There were seven loans totaling $ 2.4 million and nine loans totaling $ 2.1 million, in the process of foreclosure at September 30, 2025 and December 31, 2024, respectively.
+Added: The Company had $ 1.9 million in other real estate owned (“OREO”) as of March 31, 2026, which consisted of two small business lending properties.
+Added: The Company had $ 2.6 million in OREO as of December 31, 2025, which consisted of three small business lending properties.
+Added: There were eight loans totaling $ 1.9 million and eight loans totaling $ 2.5 million, in the process of foreclosure at March 31, 2026 and December 31, 2025, respectively.
Premises and Equipment
−Removed: The following table summarizes premises and equipment at September 30, 2025 and December 31, 2024.
−Removed: (amounts in thousands) September 30, 2025 December 31, 2024
+Added: The following table summarizes premises and equipment at March 31, 2026 and December 31, 2025.
+Added: (amounts in thousands) March 31, 2026 December 31, 2025
Land $ 5,598 $ 5,598
5 unchanged sentences
Total $ 67,006 $ 67,934
−Removed: As of September 30, 2025 and December 31, 2024, the carrying amount of goodwill was $ 4.7 million.
−Removed: There have been no changes in the carrying amount of goodwill for the three months ended September 30, 2025 or September 30, 2024.
+Added: As of March 31, 2026 and December 31, 2025, 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, 2026 or March 31, 2025.
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.
7 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 30, 2025 and 2024 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, 2026 and 2025 are shown in the table below.
Three Months Ended
−Removed: (amounts in thousands) September 30, 2025 September 30, 2024
−Removed: Balance, beginning of period $ 16,736 $ 13,009
−Removed: Subtractions:
−Removed: Paydowns ( 903 ) ( 689 )
−Removed: Changes in fair value due to changes in valuation inputs or assumptions used in
−Removed: the valuation model ( 429 ) ( 157 )
−Removed: Loan servicing asset revaluation $ ( 1,332 ) $ ( 846 )
−Removed: Balance, end of period $ 22,107 $ 14,662
−Removed: 1 Balance includes $ 3.8 million of originated servicing asset related to the sale of single tenant lease financing loans that was completed during the three months ended September 30, 2025.
−Removed: Nine Months Ended
−Removed: (amounts in thousands) September 30, 2025 September 30, 2024
+Added: (amounts in thousands) March 31, 2026 March 31, 2025
Balance, beginning of period $ 22,793 $ 16,389
+Added: Originated 1,881 2,237
Subtractions:
2 unchanged sentences
the valuation model 502 ( 217 )
−Removed: ( 952 ) ( 12 )
Loan servicing asset revaluation $ ( 1,060 ) $ ( 1,181 )
Balance, end of period $ 23,614 $ 17,445
−Removed: 1 Balance includes $ 3.8 million of originated servicing asset related to the sale of single tenant lease financing loans that was completed during the nine months ended September 30, 2025.
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, 2025 and December 31, 2024 are shown in the table below.
−Removed: (amounts in thousands) September 30, 2025 December 31, 2024
+Added: The unpaid principal balances of these loans serviced for others as of March 31, 2026 and December 31, 2025 are shown in the table below.
+Added: (amounts in thousands) March 31, 2026 December 31, 2025
Loan portfolios serviced for:
2 unchanged sentences
Total $ 1,952,695 $ 1,945,760
−Removed: Loan servicing revenue totaled $ 2.1 million and $ 6.0 million for the three and nine months ended September 30, 2025, respectively, and $ 1.6 million and $ 4.4 million for the three and nine months ended September 30, 2024, respectively.
−Removed: Loan servicing asset revaluation, which represents the change in fair value of the servicing asset, resulted in a $ 1.3 million and $ 3.7 million downward valuation for the three and nine months ended September 30, 2025, respectively, and a $ 0.8 million and $ 2.1 million downward valuation for the three and nine months ended September 30, 2024, respectively.
+Added: Loan servicing revenue totaled $ 2.9 million and $ 2.0 million for the three months ended March 31, 2026 and March 31, 2025, respectively.
+Added: Loan servicing asset revaluation, which represents the change in fair value of the servicing asset, resulted in a $ 1.1 million and $ 1.2 million downward valuation for the three months ended March 31, 2026 and March 31, 2025, respectively.
The fair value of servicing rights is highly sensitive to changes in underlying assumptions.
11 unchanged sentences
In October 2020, the Company entered into a term loan in the principal amount of $ 10.0 million, evidenced by a term note due 2030 (the “2030 Note”).
−Removed: The 2030 Note initially bears a fixed interest rate of 6.0 % per year to, but excluding, November 1, 2025 and thereafter at a floating rate equal to the then-current benchmark rate (initially three-month Term SOFR plus 5.795 %).
−Removed: The 2030 Note is scheduled to mature on November 1, 2030.
+Added: The 2030 Note initially accrued interest at a fixed rate of 6.0 % per year to, but excluding, November 1, 2025 and thereafter at a floating rate equal to three-month Term SOFR plus 5.795 %.
The 2030 Note is an unsecured subordinated obligation of the Company and may be repaid, without penalty, on any interest payment date on or after November 1, 2025.
10 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, 2025 and December 31, 2024.
−Removed: September 30, 2025 December 31, 2024
+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, 2026 and December 31, 2025.
+Added: March 31, 2026 December 31, 2025
(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
−Removed: The Company recorded $ 0.5 million and $ 0.9 million o f share-based compensation expense for the three and nine months ended September 30, 2025, respectively, related to stock-based awards under the 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 following table summarizes the stock-based award activity under the 2022 Plan for the nine months ended September 30, 2025.
+Added: The Company recorded $ 0.6 million and less than $ 0.1 million o f share-based compensation expense for the three months ended March 31, 2026, and March 31, 2025, 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, 2026.
(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 ( 39,417 ) 27.28 — — — —
−Removed: Unvested at September 30, 2025 157,504 $ 27.97 16,009 $ 24.72 — $ —
−Removed: At September 30, 2025, the total unrecognized compensation cost related to unvested stock-based awards under the 2022 Plan was $ 2.7 million with a weighted-average expense recognition period of 1.7 years.
+Added: Unvested at March 31, 2026 216,264 $ 25.07 16,009 $ 24.72 — $ —
+Added: At March 31, 2026, the total unrecognized compensation cost related to unvested stock-based awards under the 2022 Plan was $ 3.6 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 no share-based compensation expense for the three months ended September 30, 2025, and less than $ 0.1 million of share-based compensation expense for the nine months ended September 30, 2025, related to stock-based awards under the 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 following table summarizes the stock-based award activity under the 2013 Plan for the nine months ended September 30, 2025.
−Removed: (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
−Removed: Unvested at December 31, 2024 22,997 $ 46.71 — $ — — $ —
−Removed: Cancelled/Forfeited ( 15,126 ) 46.71 — — — —
−Removed: Vested ( 7,871 ) 46.71 — — — —
−Removed: Unvested at September 30, 2025 — $ — — $ — — $ —
−Removed: At September 30, 2025, there were no unrecognized compensation costs related to unvested stock-based awards under the 2013 Plan.
+Added: The Company recorded no share-based compensation expense for the three months ended March 31, 2026 , and less than $ 0.1 million of share-based compensation expense for the three months ended March 31, 2025, related to stock-based awards under the 2013 Plan .
+Added: At March 31, 2026, 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, 2025.
+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, 2026.
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, 2025 and December 31, 2024, the Company had outstanding loan commitments totaling approximately $ 594.8 million and $ 667.7 million, respectively.
+Added: At March 31, 2026 and December 31, 2025, the Company had outstanding loan commitments totaling approximately $ 610.6 million and $ 617.6 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, 2025 and December 31, 2024.
+Added: The Company did not own any securities classified within Level 1 of the hierarchy as of March 31, 2026 and December 31, 2025.
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, 2025 or December 31, 2024.
+Added: The Company did not own any securities classified within Level 3 of the hierarchy as of March 31, 2026 or December 31, 2025.
Servicing Asset
6 unchanged sentences
The Company also enters into an offsetting interest rate swap with a correspondent bank.
−Removed: 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.
+Added: These back-to-back swap agreements are intended to offset each other and allow the Company
+Added: to originate a variable rate loan, while providing a contract for fixed interest payments for the customer.
The net cash flow for the Company is equal to the interest income received from a variable rate loan originated with the customer.
The fair value of these derivatives is based on a discounted cash flow approach.
−Removed: The fair value assets and liabilities of centrally cleared interest rate swaps are net of variation margin settled-to-market (Level 2).
−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, 2025 and December 31, 2024.
−Removed: September 30, 2025
+Added: The fair value assets and liabilities of centrally clear interest rate swaps are net of variation margin settled-to-market (Level 2).
+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, 2026 and December 31, 2025.
+Added: March 31, 2026
Fair Value Measurements Using
35 unchanged sentences
Interest rate swap agreements - liabilities (back-to-back) ( 210 ) — ( 210 ) —
−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, 2025 and 2024.
−Removed: Three Months Ended
−Removed: (amounts in thousands) September 30, 2025 September 30, 2024
−Removed: Balance, beginning of period $ 16,736 $ 13,009
+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, 2026 and 2025.
+Added: (amounts in thousands) Servicing Asset
+Added: Balance as of January 1, 2026 $ 22,793
Total realized gains
−Removed: Subtractions:
+Added: Additions 1,881
Paydowns ( 1,562 )
Change in fair value 502
−Removed: Balance, end of period $ 22,107 $ 14,662
−Removed: 1 Balance includes $ 3.8 million of originated servicing asset related to the sale of single tenant lease financing loans that was completed during the three months ended September 30, 2025.
−Removed: Nine Months Ended
−Removed: (amounts in thousands) September 30, 2025 September 30, 2024
−Removed: Balance, beginning of period $ 16,389 $ 10,567
+Added: Balance as of March 31, 2026 $ 23,614
+Added: Balance as of January 1, 2025 $ 16,389
Total realized gains
−Removed: Subtractions:
+Added: Additions 2,237
Paydowns ( 964 )
Change in fair value ( 217 )
−Removed: Balance, end of period $ 22,107 $ 14,662
−Removed: 1 Balance includes $ 3.8 million of originated servicing asset related to the sale of single tenant lease financing loans that was completed during the nine months ended September 30, 2025.
+Added: Balance as of March 31, 2025 $ 17,445
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.
2 unchanged sentences
The amount of impairment may be determined based on the fair value of the underlying collateral, less costs to sell, the estimated present value of future cash flows, or the loan’s observable market price.
−Removed: If the individually analyzed loan is identified as collateral dependent, the fair value of the underlying collateral, less costs to sell, is used to measure impairment.
+Added: If the individually evaluated loan is identified as collateral dependent, the fair value of the underlying collateral, less costs to sell, is used to measure impairment.
This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value.
−Removed: If the individually analyzed loan is not collateral dependent, the Company utilizes a discounted cash flow analysis to measure impairment.
−Removed: 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, 2025 and December 31, 2024.
−Removed: September 30, 2025
+Added: If the individually evaluated loan is not collateral dependent, the Company utilizes a discounted cash flow analysis to measure impairment.
+Added: Individually evaluated 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.
+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, 2026 and December 31, 2025.
+Added: March 31, 2026
(amounts in thousands) Fair Value Measurements Using
10 unchanged sentences
Collateral dependent loans $ 336 $ — $ — $ 336
+Added: Other real estate owned 2,631 — — 2,631
Significant Unobservable (Level 3) Inputs
1 unchanged sentence
(dollars in thousands) Fair Value at
−Removed: September 30, 2025 Valuation
+Added: March 31, 2026 Valuation
Technique Significant Unobservable
11 unchanged sentences
Discount rate 0 % - 25 %
+Added: Other real estate owned 2,631 Fair value of collateral Discount to reflect current market conditions 30 % - 35 %
The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying condensed consolidated balance sheets at amounts other than fair value.
10 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, 2025 or December 31, 2024.
+Added: The Company did not own any securities classified within Level 3 of the hierarchy as of March 31, 2026 or December 31, 2025.
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.
−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, 2025 and December 31, 2024.
−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, 2025 and December 31, 2024.
−Removed: September 30, 2025
+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, 2026 and December 31, 2025.
+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, 2026 and December 31, 2025.
+Added: March 31, 2026
Fair Value Measurements Using
33 unchanged sentences
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: The Company entered into an offsetting interest rate swap with a correspondent bank.
+Added: The Company entered into offsetting interest rate swaps 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: 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.
−Removed: 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 operations and recognized a gain on termination of interest rate swaps for the year ended December 31, 2024.
−Removed: In November 2024, the Company’s interest rate swap derivative designated as fair value hedges matured.
−Removed: 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, 2025 and 2024, 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, 2026 and 2025, 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 9.0 years as of September 30, 2025.
−Removed: The Company had amortization expense totaling $ 1.0 million and $ 2.7 million for the three and nine months ended September 30, 2025, respectively, and $ 1.6 million and $ 3.7 million for the three and nine months ended September 30, 2024, respectively, related to these previously terminated fair value hedges which was recognized as a reduction to interest income on loans.
−Removed: The following table presents the notional amount and fair value of interest rate swaps utilized by the Company at September 30, 2025 and December 31, 2024.
−Removed: September 30, 2025 December 31, 2024
+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 8.6 years as of March 31, 2026.
+Added: The Company had amortization expense totaling $ 1.0 million and $ 0.9 million for the three months ended March 31, 2026, and 2025, respectively, 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, 2026 and December 31, 2025.
+Added: March 31, 2026 December 31, 2025
(amounts in thousands) Notional
13 unchanged sentences
As a result of this offsetting relationship, no net gains or losses are recognized in income.
−Removed: The Company received no cash collateral from counterparties as security for their obligations related to these swap transactions at September 30, 2025 and December 31, 2024.
−Removed: As of September 30, 2025, the Company pledged cash collateral of $ 0.3 million to counterparties as security for its obligations related to these agreements.
−Removed: The Company had no pledged cash collateral as of December 31, 2024 to counterparties 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 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, 2025 and 2024.
−Removed: Amount of Loss Recognized in Other Comprehensive Income for the Three Months Ended Amount of Loss Recognized in Other Comprehensive Income for the Nine Months Ended
−Removed: (amounts in thousands) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
−Removed: Interest rate swap agreements $ — $ ( 2,670 ) $ — $ ( 2,030 )
−Removed: The Company had no changes in the fair value of derivatives not designated as hedging instruments on the condensed consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024.
−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, 2025 and 2024.
−Removed: (amounts in thousands) Three Months Ended Nine Months Ended
−Removed: Line Item in the Condensed Consolidated Statements of Operations September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
−Removed: Interest income
−Removed: Securities - non-taxable $ — $ 421 $ — $ 1,250
−Removed: Total interest income
−Removed: — 421 — 1,250
−Removed: Interest expense
−Removed: Deposits — — — ( 424 )
−Removed: Other borrowed funds — ( 782 ) — ( 2,304 )
−Removed: Total interest expense
−Removed: — ( 782 ) — ( 2,728 )
−Removed: Net interest income
−Removed: $ — $ 1,203 $ — $ 3,978
+Added: The Company received no cash collateral from counterparties as security for their obligations related to these swap transactions at both March 31, 2026 and December 31, 2025.
+Added: The Company pledged cash collateral of $ 0.3 million to counterparties as security for its obligations related to these agreements at both March 31, 2026 and December 31, 2025.
Accumulated Other Comprehensive Loss
−Removed: The components of accumulated other comprehensive loss, included in shareholders' equity, for the nine months ended September 30, 2025 and 2024, respectively, are presented in the table below.
−Removed: (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
+Added: The components of accumulated other comprehensive loss, included in stockholders' equity, for the three months ended March 31, 2026 and 2025, 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 Total
Balance, January 1, 2026 $ ( 18,277 ) $ ( 1,853 ) ( 20,130 )
−Removed: Other comprehensive income before reclassifications from accumulated other comprehensive loss before tax 12,114 — — 12,114
+Added: Other comprehensive loss before reclassifications from accumulated other comprehensive loss before tax ( 1,623 ) — ( 1,623 )
Reclassifications from accumulated other comprehensive income to earnings before tax — 100 100
−Removed: Other comprehensive gain before tax 12,114 432 — 12,546
−Removed: Income tax provision 2,788 109 — 2,897
−Removed: Other comprehensive income - net of tax 9,326 323 — 9,649
−Removed: Balance, September 30, 2025 $ ( 21,087 ) $ ( 1,917 ) $ — $ ( 23,004 )
+Added: Other comprehensive (loss) income before tax ( 1,623 ) 100 ( 1,523 )
+Added: Income tax (benefit) provision ( 374 ) 26 ( 348 )
+Added: Other comprehensive (loss) income - net of tax ( 1,249 ) 74 ( 1,175 )
+Added: Balance, March 31, 2026 $ ( 19,526 ) $ ( 1,779 ) $ ( 21,305 )
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 )
−Removed: The components of accumulated other comprehensive loss, included in stockholders' equity, for the three months ended September 30, 2025 and 2024, respectively, are presented in the table below.
−Removed: (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
−Removed: Balance, July 1, 2025 $ ( 24,514 ) $ ( 2,053 ) $ — ( 26,567 )
Other comprehensive income before reclassifications from accumulated other comprehensive loss before tax 4,424 — 4,424
−Removed: Reclassifications from accumulated other comprehensive loss to earnings before tax — 180 180
−Removed: Other comprehensive gain before tax 4,454 180 — 4,634
+Added: Reclassifications from accumulated other comprehensive income to earnings before tax — 120 120
+Added: Other comprehensive income before tax 4,424 120 4,544
Income tax provision 1,017 31 1,048
Other comprehensive income - net of tax 3,407 89 3,496
−Removed: Balance, September 30, 2025 $ ( 21,087 ) $ ( 1,917 ) $ — $ ( 23,004 )
−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: Amounts Reclassified from
−Removed: Accumulated Other Comprehensive Loss for the Three Months Ended Amounts Reclassified from
−Removed: Accumulated Other Comprehensive Loss for the Nine Months Ended Affected Line Item in the
−Removed: Statements of Operations
−Removed: (amounts in thousands) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
−Removed: Details About Accumulated Other Comprehensive Loss Components
−Removed: Reclassifications from accumulated other comprehensive loss to earnings before tax $ ( 180 ) ( 185 ) $ ( 432 ) $ ( 607 ) Interest income
−Removed: Total amount reclassified before tax ( 180 ) ( 185 ) ( 432 ) ( 607 ) (Loss) income before income taxes
+Added: Balance, March 31, 2025 $ ( 27,006 ) $ ( 2,151 ) $ ( 29,157 )
+Added: (amounts in thousands) Amounts Reclassified from
+Added: Accumulated Other Comprehensive Income for the Three Months Ended
+Added: Details About Accumulated Other Comprehensive Loss Components March 31, 2026 March 31, 2025 Affected Line Item in the Statements of Income
+Added: Reclassifications from accumulated other comprehensive income to earnings before tax $ ( 100 ) ( 120 ) Interest Income
+Added: Total amount reclassified before tax ( 100 ) ( 120 ) Income before income taxes
Tax benefit ( 26 ) ( 31 ) Income tax (benefit) provision
−Removed: Total reclassifications from accumulated other comprehensive loss $ ( 136 ) $ ( 139 ) $ ( 323 ) $ ( 458 ) Net income
+Added: Total reclassifications from accumulated other comprehensive (loss) income $ ( 74 ) $ ( 89 ) Net income
Segment Information
8 unchanged sentences
Recent Accounting Pronouncements
+Added: Recently Adopted Accounting Standards
ASU 2023-09 - Income Taxes (Topic 740):
3 unchanged sentences
This ASU enhances the transparency and usefulness of income tax disclosures, which addresses investor requests for more transparency about income tax disclosures related primarily to the rate reconciliation and income taxes paid information.
−Removed: The guidance is effective for annual periods beginning after December 15, 2024 with early adoption permitted.
−Removed: The Company believes the adoption of this guidance will not have a material impact on the condensed consolidated financial statements.
+Added: The Company adopted this guidance on January 1, 2025 and it did not have a material impact on its consolidated financial statements.
+Added: Newly Issued But Not Yet Effective Accounting Standards
ASU 2024-03 - Income Statement-Reporting Comprehensive Income - Expense Disaggregations Disclosures (Subtopic 220-40):
3 unchanged sentences
Disaggregation of Income Statement Expenses.
−Removed: The new standard requires disclosures about specific types of expenses included in the income statement.
+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.
The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027.
The Company is currently evaluating the impact of this ASU on its consolidated financial statements.
−Removed: Subsequent Event
−Removed: On October 20, 2025, the Board of Directors of the Company authorized the repurchase of up to $ 25.0 million of the Company's outstanding common stock from time to time on the open market or in privately negotiated transactions.
−Removed: The stock repurchase authorization is scheduled to expire on September 30, 2027.
−Removed: The stock repurchase authorization may be modified, suspended, or discontinued at any time and does not commit the Company to repurchase shares of its common stock.
−Removed: The actual number and value of the shares to be purchased, if any, will depend on the performance of the Company’s stock price and other market conditions.
+Added: ASU 2025-08 - Financial Instruments - Credit Losses (Topic 326) - Purchased Loans (November 2025)
+Added: In November 2025, the FASB issued ASU No.
+Added: 2025-08, Financial Instruments - Credit Losses (Topic 326) - Purchased Loans.
+Added: This ASU changes the accounting for certain acquired purchased seasoned loans ("PSL") by applying the gross‑up method, which records an allowance for expected credit losses at acquisition as an adjustment to amortized cost basis rather than a day one provision through earnings.
+Added: The guidance is intended to simplify post‑acquisition accounting, reduce inconsistency between PCD and non-PCD loans, and eliminate day one credit loss expense for in‑scope PSLs.
+Added: The amendments are effective for public business entities for annual periods beginning after December 15, 2026, with early adoption permitted.
+Added: The Company is currently evaluating the impact of this ASU on its consolidated financial statements.
+Added: ASU 2025-09 - Derivatives and Hedging (Topic 815) - Hedge Accounting Improvements (November 2025)
+Added: In November 2025, the FASB issued ASU No.
+Added: 2025-09 Derivatives and Hedging (Topic 815):
+Added: Hedge Accounting Improvements.
+Added: This ASU intends to better align hedge accounting with entities’ risk management activities.
+Added: Key amendments include expanding the ability to group forecasted transactions with similar (rather than identical) risk exposure, establishing a model for hedging interest payments on choose‑your‑rate debt, expanding hedge accounting for certain forecasted nonfinancial transactions, and updating guidance on net written options and foreign‑currency‑denominated debt.
+Added: The amendments are effective for public business entities for annual periods beginning after December 15, 2026, with early adoption permitted.
+Added: The Company is currently evaluating the impact of this ASU on its 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.