15 unchanged sentences
Our consumer lending products are primarily originated on a nationwide basis through relationships with dealerships and financing partners.
−Removed: Our commercial banking products and services are delivered through a relationship banking model or through strategic partnerships and include commercial and industrial (“C&I”), construction and investor commercial real estate, single tenant lease financing, public finance, healthcare finance, small business lending, franchise finance and commercial deposits and treasury management.
+Added: Our commercial banking products and services are delivered through a relationship banking model or through strategic partnerships and include commercial and industrial (“C&I”) lending, construction and investor commercial real estate lending, single tenant lease financing, public finance, specialty finance, small business lending, and commercial deposits and treasury management.
Our C&I team provides credit solutions such as lines of credit, term loans, owner-occupied commercial real estate loans and corporate credit cards on a regional basis to commercial borrowers primarily in the Midwest and Southwest regions of the United States.
−Removed: We offer construction and investor commercial real estate loans, as well as single tenant lease financing, on a nationwide basis.
+Added: We offer construction, investor commercial real estate loans and single tenant lease financing on a nationwide basis.
Our public finance team provides a range of public and municipal lending and leasing products to government entities on a nationwide basis.
−Removed: Our healthcare finance team was established in conjunction with our strategic partnership with Provide, Inc.
−Removed: (formerly known as Lendeavor, Inc.), a San Francisco-based technology-enabled lender to healthcare practices, which provided lending on a nationwide basis for healthcare practice finance or acquisition, acquisition or refinancing of owner-occupied commercial real estate and equipment purchases.
−Removed: In the third quarter 2021, Provide was acquired by a super-regional financial institution.
−Removed: Subsequent to Provide being acquired, the acquiring institution has retained most, if not all, of Provide’s loan origination activity and our healthcare finance loan balances have declined.
−Removed: Our franchise finance business was established in July 2021 in conjunction with our business relationship with ApplePie Capital, a company that specializes in providing financing to franchisees in various industry segments across the United States.
−Removed: Our commercial deposits and treasury management team works with the other commercial teams to provide deposit products and treasury management services to our commercial and municipal lending customers as well as pursues commercial deposit opportunities in business segments where we have no credit relationships.
+Added: Our specialty finance team manages our healthcare, franchise finance and equipment finance portfolios and our commercial deposits and treasury management team works with the other commercial teams to provide deposit products and treasury management services to our commercial and municipal lending customers as well as pursues commercial deposit opportunities in business segments where we have no credit relationships.
We believe that we differentiate ourselves from larger financial institutions by providing a full suite of services to emerging small businesses and entrepreneurs on a nationwide basis.
−Removed: We are an active lender in the Small Business Administration (“SBA”) 7(a) program, closing $460.4 million in SBA 7(a) loans during the nine months ended September 30, 2025, and currently rank as the 7th largest SBA 7(a) lender for the SBA’s 2025 fiscal year ended.
+Added: We are an active lender in the Small Business
+Added: Administration (“SBA”) 7(a) program, closing $72.5 million in SBA 7(a) loans during the three months ended March 31,2026.
We also offer a top-ranked small business checking account product to our country’s entrepreneurs.
−Removed: We also offer payment, deposit, card and lending products and services through partnerships with financial technology companies and platforms (“fintechs”).
+Added: We offer payment, deposit, card and lending products and services through partnerships with financial technology companies and platforms (“fintechs”).
With the rapid evolution of technology that enables small businesses to manage their finances digitally, fintechs are addressing a significantly growing marketplace.
Fintechs have created robust digital offerings, unburdened by legacy technology architecture, to address growing customer expectations.
−Removed: Through partnerships with selected
−Removed: fintechs, we believe our ability to win and retain small business relationships will be significantly enhanced.
+Added: Through partnerships with selected fintechs, we believe our ability to win and retain small business relationships will be significantly enhanced.
Furthermore, we believe partnering with select fintechs will allow us to further diversify our revenue sources, acquire deposits and pursue additional asset generation capabilities.
−Removed: As of September 30, 2025, the Company had consolidated assets of $5.6 billion, consolidated deposits of $4.9 billion and stockholders’ equity of $352.2 million.
+Added: As of March 31, 2026, the Company had consolidated assets of $5.7 billion, consolidated deposits of $5.0 billion and stockholders’ equity of $361.0 million.
Results of Operations
−Removed: During the third quarter 2025, net loss was $41.6 million, or $4.76 diluted loss per share, compared to net income of $7.0 million, or $0.80 diluted earnings per share, during the third quarter 2024, representing a decrease in net income of $48.6 million, or 695.0%, and a decrease in diluted earnings per share of $5.56, or 695.0%.
−Removed: During the nine months ended September 30, 2025, net loss was $40.5 million, or $4.63 diluted loss per share, compared to the nine months ended September 30, 2024 net income of $17.9 million, or $2.05 per diluted share, resulting in a decrease in net income of $58.4 million, or 325.4%, and a decrease in diluted earnings per share of $6.68, or 325.9%.
−Removed: The $48.6 million decrease in net income for the third quarter 2025 compared to the third quarter 2024 was due primarily to an increase of $31.4 million, or 926.2%, in the provision for credit losses, a decrease of $36.7 million, or 304.9%, in noninterest income, as well as an increase of $2.7 million, or 11.7%, in noninterest expense, partially offset by an increase of $8.6 million, or 39.5%, in net interest income and a decrease of $13.6 million in income tax expense.
−Removed: The $58.4 million decrease in net income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was due primarily to an increase of $50.5 million, or 511.3%, in the provision for credit losses, a decrease of $40.1 million, or 127.6%, in noninterest income and an increase of $4.7 million, or 7.0%, in noninterest expense, partially offset by an increase of $19.6, or 30.7%, in net interest income and a decrease of $17.2 million in income tax expense.
−Removed: During the third quarter 2025, the Company closed on the sale of $836.9 million of single tenant lease financing loans recognizing a pre-tax loss of $37.8 million on the transaction.
−Removed: The transaction was executed as part of an initiative to strengthen the Company’s regulatory capital ratios and improve its interest rate risk position.
−Removed: While the loss on the transaction negatively impacted shareholders’ equity and regulatory capital, the transaction significantly reduced risk-weighted assets, resulting in a net positive effect on regulatory capital ratios.
−Removed: Furthermore, the loan sale reduced the Company’s interest rate risk profile by reducing exposure to longer-duration assets.
−Removed: Additionally, the Company expects the transaction to have a beneficial impact on key profitability metrics, such as net interest margin and return on average assets, in future periods.
−Removed: Subsequent to September 30, 2025, the Company sold an additional $14.3 million of single tenant lease financing loans resulting in a pre-tax loss of $0.5 million.
−Removed: The Company does not anticipate any additional sales from this transaction.
−Removed: During the third quarter 2025, return on average assets (“ROAA”), return on average shareholders’ equity (“ROAE”), and return on average tangible common equity (“ROATCE”) were (2.71%), (42.11%) and (42.62%), respectively, compared to 0.50%, 7.32% and 7.41%, respectively, for the third quarter 2024.
−Removed: During the nine months ended September 30, 2025, ROAA, ROAE and ROATCE were (0.91%), (13.80%) and (13.97%), respectively, compared to 0.45%, 6.42% and 6.51%, respectively, for the nine months ended September 30, 2024.
−Removed: During the three months ended September 30, 2025, the Company sold $836.9 million of single tenant lease financing loans, which resulted in a net loss on the sale of $29.1 million.
−Removed: Excluding the net loss on the sale of these loans, adjusted net loss for the three months ended September 30, 2025 was $12.5 million and adjusted diluted loss per share was $1.42.
−Removed: Additionally, for the three months ended September 30, 2025, adjusted ROAA, adjusted ROAE and adjusted ROATCE were (0.81%), (12.63%) and (12.78%), respectively.
−Removed: During the nine months ended September 30, 2025, the Company sold $836.9 million of single tenant lease financing loans, which resulted in a net loss on the sale of $29.1 million.
−Removed: Excluding the net loss on the sale of these loans, adjusted net loss for the nine months ended September 30, 2025 was $11.3 million and adjusted diluted loss per share was $1.29.
−Removed: Additionally, for the nine months ended September 30, 2025, adjusted ROAA, adjusted ROAE and adjusted ROATCE were (0.25%), (3.86%) and (3.91%), respectively.
−Removed: During the nine months ended September 30, 2024, the Company recognized $0.5 million in IT termination fees and $0.1 million in anniversary expenses.
−Removed: Excluding these items, adjusted net income for the nine months ended September 30, 2024 was $18.4 million and adjusted diluted earnings per share was $2.10.
−Removed: Additionally, for the nine months ended September 30, 2024, adjusted ROAA, adjusted ROAE and adjusted ROATCE were 0.46%, 6.58% and 6.67%, respectively.
−Removed: During the third quarter 2025, adjusted pre-tax, pre-provision income (“PTPP”) was $18.1 million, an increase of 64.3% from adjusted PTPP of $11.0 million for the third quarter 2024.
−Removed: The $7.1 million increase was due to an increase of $8.6 million, or 39.5%, in net interest income and an increase of $1.1 million, or 9.5%, in adjusted noninterest income, partially offset by an increase of $2.7 million, or 11.7%, in noninterest expense.
−Removed: During the nine months ended September 30, 2025, adjusted PTPP was $41.9 million, an increase of 43.7% from adjusted PTPP of $29.1 million for the nine months ended September 30, 2024.
−Removed: The $12.7 million increase was due to an increase of $19.6 million, or 30.7%, in net interest income, partially offset by a decrease of $2.2 million, or 7.2%, in adjusted noninterest income and an increase of $4.7 million, or 7.0%, in noninterest expense.
+Added: During the first quarter 2026, net income was $2.5 million, or $0.29 diluted earnings per share, compared to net income of $0.9 million, or $0.11 diluted earnings per share, during the first quarter 2025, representing an increase in net income of $1.6 million, or 166.1%, and an increase in diluted earnings per share of $0.18, or 163.6%.
+Added: The $1.6 million increase in net income for the first quarter 2026 compared to the first quarter 2025 was due primarily to increases of $6.5 million, or 25.9%, in net interest income and $1.1 million, or 10.5%, in noninterest income, partially offset by increases of $4.4 million, or 36.6%, in the provision for credit losses and $1.5 million, or 6.2%, in noninterest expense, as well as a decrease of $0.2 million in income tax benefit.
+Added: During the first quarter 2026, return on average assets (“ROAA”), return on average shareholders’ equity (“ROAE”), and return on average tangible common equity (“ROATCE”) were 0.18%, 2.72% and 2.75%, respectively, compared to 0.07%, 0.98% and 0.99%, respectively, for the first quarter 2025.
+Added: During the first quarter 2026, pre-provision net revenue (“PPNR”) was $18.1 million, an increase of 51.2% from PPNR of $12.0 million for the first quarter 2025.
+Added: The $6.1 million increase was due to an increase of $6.5 million, or 25.9%, in net interest income and an increase of $1.1 million, or 10.5%, in noninterest income, partially offset by an increase of $1.5 million, or 6.2%, in noninterest expense.
Refer to the “Reconciliation of Non-GAAP Financial Measures” section of Part I, Item 2 of this report, Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information.
5 unchanged sentences
Three Months Ended
−Removed: September 30, 2025 September 30, 2024
−Removed: (dollars in thousands) Average Balance Interest /Dividends Yield /Cost Average Balance Interest /Dividends Yield /Cost
−Removed: Interest-earning assets
−Removed: Loans, including
−Removed: loans held-for-sale $ 4,427,200 $ 68,958 6.18 % $ 4,029,360 $ 59,792 5.90 %
−Removed: Securities - taxable 819,941 8,614 4.17 % 713,992 6,953 3.87 %
−Removed: Securities - non-taxable 78,602 652 3.29 % 78,417 1,042 5.29 %
−Removed: Other earning assets 569,811 6,164 4.29 % 526,384 7,203 5.44 %
−Removed: Total interest-earning assets 5,895,554 84,388 5.68 % 5,348,153 74,990 5.58 %
−Removed: Allowance for credit losses - loans (49,495) (44,572)
−Removed: Noninterest-earning assets 235,733 220,329
−Removed: Total assets $ 6,081,792 $ 5,523,910
−Removed: Interest-bearing liabilities
−Removed: Interest-bearing demand deposits $ 1,399,323 $ 11,742 3.33 % $ 511,446 $ 2,880 2.24 %
−Removed: Savings accounts 20,035 42 0.83 % 22,774 48 0.84 %
−Removed: Money market accounts 1,250,350 11,771 3.73 % 1,224,680 12,980 4.22 %
−Removed: Fintech - brokered deposits — — — % 153,012 1,682 4.37 %
−Removed: Certificates and brokered deposits 2,463,302 26,579 4.28 % 2,472,166 29,825 4.80 %
−Removed: Total interest-bearing deposits 5,133,010 50,134 3.87 % 4,384,078 47,415 4.30 %
−Removed: Other borrowed funds 365,119 3,902 4.24 % 620,032 5,810 3.73 %
−Removed: Total interest-bearing liabilities 5,498,129 54,036 3.90 % 5,004,110 53,225 4.23 %
−Removed: Noninterest-bearing deposits 174,494 113,009
−Removed: Other noninterest-bearing liabilities 17,283 26,730
−Removed: Total liabilities 5,689,906 5,143,849
−Removed: Shareholders’ equity 391,886 380,061
−Removed: Total liabilities and shareholders’ equity $ 6,081,792 $ 5,523,910
−Removed: Net interest income $ 30,352 $ 21,765
−Removed: Interest rate spread 1
−Removed: Net interest margin 2
−Removed: Net interest margin - FTE 3
−Removed: 1 Yield on total interest-earning assets minus cost of total interest-bearing liabilities.
−Removed: 2 Net interest income divided by total average interest-earning assets (annualized).
−Removed: 3 On an FTE basis assuming a 21% tax rate.
−Removed: Net interest income is adjusted to reflect income from assets such as municipal loans and securities that are exempt from Federal income taxes.
−Removed: This is to recognize the income tax savings that facilitates a comparison between taxable and tax-exempt assets.
−Removed: The Company believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully-taxable equivalent basis, as these measures provide useful information to make peer comparisons.
−Removed: Net interest margin - FTE represents a non-GAAP financial measure.
−Removed: See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of this measure to its most directly comparable GAAP measure.
−Removed: Nine Months Ended
−Removed: September 30, 2025 September 30, 2024
+Added: March 31, 2026 March 31, 2025
(dollars in thousands) Average Balance Interest /Dividends Yield / Cost Average Balance Interest /Dividends Yield /Cost
13 unchanged sentences
Money market accounts 1,292,126 10,103 3.17 % 1,221,795 11,361 3.77 %
−Removed: Fintech - brokered deposits — — — % 119,470 3,912 4.37 %
Certificates and brokered deposits 2,188,972 22,047 4.08 % 2,617,293 29,248 4.53 %
22 unchanged sentences
The change in interest not due solely to volume or rate has been allocated in proportion to the absolute dollar amounts of the change in each.
−Removed: Three Months Ended September 30, 2025 vs.
−Removed: September 30, 2024 Due to Changes in Nine Months Ended September 30, 2025 vs.
−Removed: September 30, 2024 Due to Changes in
−Removed: (amounts in thousands) Volume Rate Net Volume Rate Net
+Added: Three Months Ended March 31, 2026 vs.
+Added: March 31, 2025 Due to Changes in
+Added: (amounts in thousands) Volume Rate Net
Interest income
9 unchanged sentences
(Decrease) increase in net interest income $ (11,173) $ 17,675 $ 6,502
−Removed: Net interest income for the third quarter 2025 was $30.4 million, an increase of $8.6 million, or 39.5%, compared to $21.8 million for the third quarter 2024.
−Removed: The increase in net interest income was the result of a $9.4 million, or 12.5%, increase in total interest income to $84.4 million for the third quarter 2025 from $75.0 million for the third quarter 2024.
−Removed: The increase in total interest income was partially offset by a $0.8 million, or 1.5%, increase in total interest expense to $54.0 million for the third quarter 2025 from $53.2 million for the third quarter 2024.
−Removed: Net interest income for the nine months ended September 30, 2025 was $83.4 million, an increase of $19.6 million, or 30.7%, compared to $63.8 million for the nine months ended September 30, 2024.
−Removed: The increase in net interest income was the result of a $28.0 million, or 13.1%, increase in total interest income to $242.1 million for the nine months ended September 30, 2025 from $214.1 million for the nine months ended September 30, 2024.
−Removed: The increase in total interest income was partially offset by an $8.4 million, or 5.6%, increase in total interest expense to $158.7 million for the nine months ended September 30, 2025 from $150.3 million for the nine months ended September 30, 2024.
−Removed: The increase in total interest income for the third quarter 2025 compared to third quarter 2024 was due primarily to an increase in interest earned on loans, resulting from an increase of 28 bps in the yield earned on loans, including loans held-for-sale, as well as an increase of $397.8 million, or 9.9%, in the average balance of loans, including loans held-for-sale.
−Removed: Related to securities, the average balance increased $106.1 million, or 13.4%, while the yield earned on the securities portfolio increased 8 bps for the third quarter 2025 compared to the third quarter 2024.
−Removed: The yield on funded portfolio loan originations was 7.50% for the third quarter 2025, a decrease of 135 bps compared to the third quarter 2024, reflective of 100 bps of Fed rate cuts in the second half of 2024.
−Removed: However, new origination yields remained well above the overall loan portfolio yield, helping to drive both total interest income and the loan portfolio yield higher.
−Removed: The increase in total interest income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was due primarily to an increase in interest earned on loans, resulting from an increase of 26 bps in the yield on loans, including loans held-for-sale, as well as an increase of $406.6 million, or 10.3%, in the average balance of loans, including loans held-for-sale.
−Removed: Additionally, the average balance of securities increased $164.8 million, or 22.1%, and the yield earned on the securities portfolio increased 17 bps for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.
−Removed: The increase in total interest income was partially offset as the yield on other earning assets decreased 107 bps and the average balance of other earning assets decreased $5.6 million, or 1.2%.
−Removed: The increase in the yield earned on loans and securities was due to both existing and newly-originated interest-earning assets, despite the lowered interest rates in September.
−Removed: The yield on funded portfolio loan originations was 7.58% for the nine months ended September 30, 2025, a decrease of 127 bps compared to the nine months ended September 30, 2024.
−Removed: The increase in total interest expense for the third quarter 2025 compared to the third quarter 2024 was due primarily to increases of $8.9 million, or 307.7%, in interest expense associated with interest-bearing demand deposits, partially offset by decreases of $3.2 million, or 10.9%, in interest expense associated with certificates and brokered deposits, $1.2 million, or 9.3%, in interest expense associated with money market accounts and $1.9 million, or 32.8%, in interest expense associated with other borrowed funds.
−Removed: When combined with deposits formerly classified as fintech – brokered deposits, the increase in interest expense related to interest-bearing demand deposits was driven by an increase in the average balance of $734.9 million, or 110.6%, compared to the third quarter 2024 due to continued growth in fintech deposits, while the cost of funds increased 109 bps due to the change in deposit mix.
+Added: Net interest income for the first quarter 2026 was $31.6 million, an increase of $6.5 million, or 25.9%, compared to $25.1 million for the first quarter 2025.
+Added: The increase in net interest income was the result of a decrease of $7.5 million, or 14.5%, in total interest expense to $44.2 million for the first quarter 2026 from $51.7 million for the first quarter 2025, which was partially offset by a $1.0 million, or 1.3%, decrease in total interest income to $75.8 million for the first quarter 2026 from $76.8 million for the first quarter 2025.
+Added: The decrease in total interest income for the first quarter 2026 compared to first quarter 2025 was due primarily to a decrease in interest earned on loans, resulting from a decrease of $362.8 million, or 8.6%, in the average balance of loans including loans held-for-sale, partially offset by an increase of 37 bps in the yield earned on loans, including loans held-for-sale.
+Added: Additionally, the average balance of other earning assets increased $76.4 million, or 17.2%, while the yield on other earning assets decreased 84 bps.
+Added: The decrease in the yield earned on other earning assets was due mainly to the impact of decreases in the Fed Funds rates on cash balances held at the Federal Reserve.
+Added: The decrease in total interest income was partially offset by increases in interest income related to securities.
+Added: The average balance of securities increased $121.0 million, or 13.4%, but was partially offset by a decrease of 8 bps in the yield earned on securities for the first quarter 2026 compared to the first quarter 2025.
+Added: The yield on funded portfolio loan originations was 6.58% for the first quarter 2026, a decrease of 120 bps compared to the first quarter 2025, but still higher than the overall yield on the loan portfolio.
+Added: The decrease in total interest expense for the first quarter 2026 compared to the first quarter 2025 was due primarily to decreases of $7.2 million, or 24.6%, in interest expense associated with certificates and brokered deposits, $1.2 million, or 11.1%, in interest expense associated with money market accounts and $0.3 million, or 6.2%, in other borrowed funds, partially offset by an increase of $1.2 million, or 17.1%, in interest expense associated with interest-bearing demand deposits.
The decrease in interest expense related to certificates and brokered deposits was driven by a decrease of 45 bps in the cost of these deposits, as well as a decrease in the average balance of these deposits of $428.3 million, or 16.4%.
The decrease in interest expense related to money market accounts was driven by a 60 bp decrease in the cost of these deposits, partially offset by an increase in the average balance of these deposits of $70.3 million, or 5.8%.
−Removed: The decrease in interest expense related to other borrowed funds was driven by a decrease in the average balance of $254.9 million, or 41.1%, partially offset by an increase of 51 bps in the cost of funds.
−Removed: The increase in total interest expense for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was due primarily to an increase of $20.9 million, or 277.9%, in interest expense associated with interest-bearing demand deposits, partially offset by decreases of $4.5 million, or 11.6%, in interest expense associated with money market accounts, $2.1 million, or 13.2%, in interest expense associated with other borrowed funds and $2.0 million, or 2.4%, in interest expense associated with certificates and brokered deposits.
−Removed: When combined with deposits formerly classified as fintech - brokered deposits, the increase in interest expense related to interest-bearing demand deposits was due primarily to a 103 bp increase in the cost of these deposits, as well as an increase of $609.1 million, or 103.9%, in the average balance of these deposits.
−Removed: The decrease in interest expense related to money market accounts was driven primarily by a decrease of 46 bps in the cost of these deposits, as well as a decrease of $8.5 million, or 0.7%, in the average balance of these deposits.
The decrease in interest expense related to other borrowed funds was driven by a decrease in the average balance of $49.2 million, or 12.3%, partially offset by a 29 bp increase in the cost of these funds.
−Removed: The increase in interest expense related to certificates and brokered deposits was driven by an increase of $134.3 million, or 5.7%, in the average balance of these deposits, partially offset by a decrease of 36 bps in the cost of these deposits.
−Removed: The increase in the average balance of these deposits was driven by the continued benefit from CD repricing, partially offset by lower brokered deposit balances as the Company used on-balance sheet liquidity to pay down higher-cost short term FHLB advances, which is expected to positively impact deposit costs in future periods.
−Removed: Overall, the cost of total interest-bearing liabilities for the third quarter 2025 decreased 33 bps to 3.90% from 4.23% for the third quarter 2024.
−Removed: The cost of total interest-bearing liabilities for the nine months ended September 30, 2025 decreased 18 bps to 3.96% from 4.14% for the nine months ended September 30, 2024.
−Removed: Net interest margin (“NIM”) was 2.04% for the third quarter 2025 compared to 1.62% for the third quarter 2024, an increase of 42 bps.
−Removed: On a fully-taxable equivalent (“FTE”) basis, NIM was 2.12% for the third quarter 2025 compared to 1.70% for the third quarter 2024, an increase of 42 bps.
−Removed: NIM was 1.94% for the nine months ended September 30, 2025 compared to
−Removed: 1.65% for the nine months ended September 30, 2024, an increase of 29 bps.
−Removed: FTE NIM was 2.02% for the nine months ended September 30, 2025 compared to 1.74% for the nine months ended September 30, 2024, an increase of 28 bps.
−Removed: The increase in the third quarter and nine months ended September 30, 2025 NIM and FTE NIM compared to the third quarter and nine months ended September 30, 2024 reflects the combination of deploying cash balances into higher yielding loans and securities and continued improvement in the cost of funds related to deposits.
−Removed: Noninterest (Loss) Income
−Removed: The following table shows noninterest (loss) income for each of the periods presented.
−Removed: Three Months Ended Nine Months Ended
−Removed: (amounts in thousands) September 30,
−Removed: 2025 September 30,
−Removed: 2024 September 30,
−Removed: 2025 September 30,
+Added: The increase in interest expense related to interest-bearing demand deposits was driven by an increase in the average balance of $287.2 million, or 30%, partially offset by 30 bp decrease in the cost of these deposits.
+Added: Overall, the cost of total interest-bearing liabilities for the first quarter 2026 decreased 50 bps to 3.52% from 4.02% for the first quarter 2025.
+Added: Net interest margin (“NIM”) was 2.36% for the first quarter 2026 compared to 1.82% for the first quarter 2025, an increase of 54 bps.
+Added: On a fully-taxable equivalent (“FTE”) basis, NIM was 2.45% for the first quarter 2026 compared to 1.91% for the first quarter 2025, an increase of 54 bps.
+Added: The increase in the first quarter 2026 NIM and FTE NIM compared to the first
+Added: quarter 2025 reflects the combination of higher yields on loans and continued improvement in the cost of funds related to deposits.
+Added: Noninterest Income
+Added: The following table shows noninterest income for each of the periods presented.
+Added: Three Months Ended
+Added: (amounts in thousands) March 31,
+Added: 2026 March 31,
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
−Removed: During the third quarter 2025, there was a loss in noninterest income of $24.6 million, representing a decrease of $36.7 million, or 304.9%, compared to $12.0 million of noninterest income for the third quarter 2024.
−Removed: The decrease in noninterest income was due primarily to a decrease in gain on sale of loans, partially offset by an increase in other noninterest income.
−Removed: The decrease of $37.0 million, or 372.9%, in gain on sale of loans was due to the sale of $836.9 million of single tenant lease financing loans that was completed during the quarter, which resulted in a pre-tax loss of $37.8 million.
−Removed: Excluding the loss on the loan sale, adjusted noninterest income totaled $13.2 million for the third quarter 2025, an increase of $1.1 million, compared to the third quarter 2024.
−Removed: The increase was driven by higher gain on sale revenue, which consisted almost entirely of sales of U.S.
−Removed: Small Business Administration (“SBA”) 7(a) guaranteed loans.
−Removed: The increase in other noninterest income of $0.2 million, or 3.3%, was due primarily to distributions from fund investments.
−Removed: During the nine months ended September 30, 2025, there was a loss in noninterest income of $8.7 million, a decrease of $40.1 million, or 127.6%, compared to $31.4 million for the nine months ended September 30, 2024.
−Removed: The decrease in noninterest income was due primarily to a decrease in gain on sale of loans, partially offset by an increase in other noninterest income.
−Removed: The decrease of $41.5 million, or 167.8%, in gain on sale of loans was due primarily to the sale of $836.9 million of single tenant lease financing loans that was completed during the quarter, which resulted in a pre-tax loss of $37.8 million.
−Removed: Excluding the loss on the loan sale, adjusted noninterest income totaled $29.2 million for the nine months ended September 30 2025, a decrease of $2.2 million, compared to the nine months ended September 2024.
−Removed: The decrease was driven by lower gain on sale revenue, which was due to a decrease in the volume of SBA 7(a) guaranteed loans sales, as the Company implemented a process change to hold SBA loans for a longer period of time before selling them in the secondary market.
−Removed: The increase in other noninterest income of $1.2 million, or 31.9%, was due primarily to distributions from fund investments.
+Added: Total noninterest income $ 11,518 $ 10,427
+Added: During the first quarter 2026, noninterest income was $11.5 million, representing an increase of $1.1 million, or 10.5%, compared to $10.4 million of noninterest income for the first quarter 2025.
+Added: The increase in noninterest income was driven primarily by increases in net loan servicing, other noninterest income and service charges and fees, partially offset by a decrease in gain on sale of loans.
+Added: The increase of $1.0 million, or 123.9%, in net loan servicing was due to growth in the balance of the Company’s SBA 7(a) and single tenant lease financing servicing portfolios.
+Added: The increase of $0.8 million, or 110.5%, in other noninterest income was due primarily to an increase in fintech partnership revenue.
+Added: The increase of $0.6 million, or 218.5%, in service charges and fees reflects higher fees earned on fintech deposits moved off-balance sheet into deposit networks, which increased substantially from the prior year.
+Added: The decrease in gain on sale of loans of $1.3 million, or 14.7%, was due primarily to a lower volume of SBA loans sold in the first quarter 2026 compared to the first quarter 2025, partially offset by a 27 bp increase in net premiums.
Noninterest Expense
The following table shows noninterest expense for each of the periods presented.
−Removed: Three Months Ended Nine Months Ended
−Removed: (amounts in thousands) September 30,
−Removed: 2025 September 30,
−Removed: 2024 September 30,
−Removed: 2025 September 30,
+Added: Three Months Ended
+Added: (amounts in thousands) March 31,
+Added: 2026 March 31,
Salaries and employee benefits $ 13,236 $ 13,107
7 unchanged sentences
Total noninterest expense $ 25,027 $ 23,556
−Removed: Noninterest expense for the third quarter 2025 was $25.5 million, representing an increase of $2.7 million, or 11.7%, compared to $22.8 million for the third quarter 2024.
−Removed: The increase in noninterest expense was due primarily to increases in salaries and employee benefits, premises and equipment, deposit insurance premium, other expense and loan expenses.
−Removed: The increase of $0.9 million, or 6.9%, in salaries and employee benefits was driven primarily by an increase in incentive compensation.
−Removed: The increase of $0.7 million, or 22.4%, in premises and equipment was due primarily to software maintenance expense.
−Removed: The increase of $0.4 million, or 29.9%, in deposit insurance premium was due to changes in the composition of the loan portfolio.
−Removed: The increase in other expenses of $0.4 million, or 26.1%, was due primarily to higher fintech volume activity.
−Removed: The increase of $0.3 million, or 21.4%, in loan expenses was due primarily to collection expense, as well as third party servicing associated with SBA and fintech lending.
−Removed: Noninterest expense for the nine months ended September 30, 2025 was $70.8 million, an increase of $4.7 million, or 7.0%, compared to $66.2 million for the nine months ended September 30, 2024.
−Removed: The increase was due primarily to increases in other expense, premises and equipment, deposit insurance premium, salaries and employee benefits, consulting and professional fees and loan expenses.
−Removed: The increase in other expense of $1.2 million, or 24.4%, was due primarily to higher fintech volume activity.
−Removed: The increase of $1.1 million, or 12.0%, in premises and equipment was due primarily to software maintenance expense.
−Removed: The increase of $1.0 million, or 28.6%, in deposit insurance premium was due to changes in the composition of the loan portfolio.
−Removed: The increase of $0.6 million, or 1.7%, in salaries and employee benefits was due primarily to an increase in incentive compensation.
−Removed: The increase of $0.4 million, or 13.2%, in consulting and professional fees was due mainly to
−Removed: increased legal and audit fees.
+Added: Noninterest expense for the first quarter 2026 was $25.0 million, representing an increase of $1.5 million, or 6.2%, compared to $23.6 million for the first quarter 2025.
+Added: The increase in noninterest expense was due primarily to increases in loan expenses and premises and equipment.
The increase of $0.6 million, or 42.3%, in loan expenses was due primarily to collection expense, as well as third party servicing associated with SBA and fintech lending.
−Removed: The Company recorded an income tax benefit of $13.0 million for the third quarter 2025, compared to an income tax provision of $0.6 million and an effective tax rate of 8.1% for the third quarter 2024.
−Removed: The Company recorded an income tax benefit of $15.9 million for the nine months ended September 30, 2025, compared to an income tax provision of $1.3 million and an effective tax rate of 6.6% for the nine months ended September 30, 2024.
−Removed: The income tax benefits recognized during the third quarter 2025 and the nine months ended September 30, 2025 reflect lower pre-tax earnings, as well as the benefit of tax exempt income.
−Removed: The variance from the federal statutory rate for the third quarter 2024 and the nine months ended September 30, 2024 was due primarily to tax-exempt income.
−Removed: Interest income on certain loans or securities issued by governmental, municipal and not-for-profit entities, and earnings from bank-owned life insurance were the primary components of tax-exempt income.
+Added: The increase of $0.6 million, or 18.0%, in premises and equipment was due primarily to continued investment in technology to enhance the user experience in consumer and small business banking.
+Added: The Company recorded an income tax benefit of $0.7 million for the first quarter 2026, compared to an income tax benefit of $0.9 million for the first quarter 2025.
Financial Condition
2 unchanged sentences
Balance Sheet Data:
−Removed: September 30,
2026 December 31,
7 unchanged sentences
Advances from Federal Home Loan Bank 239,500 249,500
+Added: Total liabilities 5,350,734 5,211,880
Total shareholders’ equity 360,954 359,767
−Removed: Total assets decreased $98.7 million, or 1.7%, to $5.6 billion at September 30, 2025 compared to $5.7 billion at December 31, 2024.
−Removed: The decrease was due primarily to a decline in loans due to the single tenant leasing financing loan sale and lower construction and franchise finance balances, partially offset by higher investor commercial real estate, commercial and industrial and small business lending balances.
−Removed: Total liabilities declined $66.8 million, or 1.2%, to $5.3 billion at September 30, 2025 compared to $5.4 billion at December 31, 2024.
−Removed: The decrease was due mainly to a decline in advances from the Federal Home Loan Bank and, to a lesser extent, a decrease in total deposits.
−Removed: Increased liquidity from growth in fintech partnership deposits allowed the Company to pay down higher cost brokered deposits and advances from the Federal Home Loan Bank throughout 2025.
−Removed: As of September 30, 2025, total shareholders’ equity was $352.2 million, a decrease of $31.9 million, or 8.3%, compared to December 31, 2024.
−Removed: The decrease in shareholders’ equity was due primarily to the net loss during 2025, partially offset by a decrease in accumulated other comprehensive loss as unrealized losses on securities decreased during the nine months ended September 30, 2025.
−Removed: Tangible common equity totaled $347.5 million as of September 30, 2025, representing a decrease of $31.9 million, or 8.4%, compared to December 31, 2024.
−Removed: The ratio of total shareholders’ equity to total assets decreased to 6.25% as of September 30, 2025 from 6.69% as of December 31, 2024, and the ratio of tangible common equity to tangible assets decreased to 6.17% as of September 30, 2025 from 6.62% as of December 31, 2024.
−Removed: Book value per common share decreased 8.8% to $40.42 as of September 30, 2025 from $44.31 as of December 31, 2024.
−Removed: Tangible book value per share decreased 8.9% to $39.88 as of September 30, 2025 from $43.77 as of December 31, 2024.
−Removed: The decrease in both book value per common share and tangible book value per share was driven primarily by the decreases in total shareholders’ equity and tangible common equity.
+Added: Total assets increased $140.0 million, or 2.5%, to $5.7 billion at March 31, 2026 compared to $5.6 billion at December 31, 2025.
+Added: The increase was due primarily to an increase in deposits driven by growth in fintech partnerships, which was used in conjunction with on-balance sheet liquidity to fund loan growth, purchase securities and pay down higher cost certificates of deposits and FHLB advances.
+Added: Total liabilities increased $138.9 million, or 2.7%, to $5.4 billion at March 31, 2026 compared to $5.2 billion at December 31, 2025.
+Added: The increase was due mainly to an increase in total deposits.
+Added: As of March 31, 2026, total shareholders’ equity was $361.0 million, an increase of $1.2 million, or 0.3%, compared to December 31, 2025.
+Added: The increase in shareholders’ equity was due primarily to current period net income and was partially offset by an increase in accumulated other comprehensive loss as unrealized losses on debt securities increased during the quarter due to changes in market interest rates.
+Added: Tangible common equity totaled $356.3 million as of March 31, 2026, representing an increase of $1.2 million, or 0.3%, compared to December 31, 2025.
+Added: The ratio of total shareholders’ equity to total assets decreased to 6.32% as of March 31, 2026 from 6.46% as of December 31, 2025, and the ratio of tangible common equity to tangible assets decreased to 6.24% as of March 31, 2026 from 6.38% as of December 31, 2025.
+Added: Book value per common share was $41.41 for both March 31, 2026 and December 31, 2025 and tangible book value per common share was $40.87 for both March 31, 2026 and December 31, 2025.
+Added: The slight increase in total shareholders’ equity and tangible common equity was offset by a higher number of shares outstanding.
Refer to the “Reconciliation of Non-GAAP Financial Measures” section of Part I, Item 2 of this report, Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information.
1 unchanged sentence
The following table shows a summary of the Company’s loan portfolio for each of the periods presented.
−Removed: (dollars in thousands) September 30,
+Added: (dollars in thousands) March 31,
2026 December 31,
8 unchanged sentences
Small business lending 1
+Added: 433,964 11.5 % 430,024 11.5 %
Franchise finance 389,249 10.3 % 417,045 11.1 %
5 unchanged sentences
Total consumer loans 783,615 20.8 % 783,293 21.0 %
−Removed: Net deferred loan origination costs, premiums and discounts
−Removed: on purchased loans and other 1
+Added: Total commercial and consumer loans 3,756,149 99.6 % 3,725,341 99.4 %
+Added: Net deferred loan origination costs, premiums and discounts on purchased loans and other 2
19,721 0.4 % 21,387 0.6 %
2 unchanged sentences
Net loans $ 3,719,374 $ 3,691,042
−Removed: 1 Includes carrying value adjustments 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: Total loans were $3.6 billion as of September 30, 2025, a decrease of $567.1 million, or 13.6%, compared to December 31, 2024.
−Removed: Total commercial loan balances were $2.8 billion as of September 30, 2025, down $551.0 million, or 16.5%, from December 31, 2024.
−Removed: Total consumer loan balances were $788.1 million as of September 30, 2025, a decrease of $13.3 million, or 1.66%, compared to December 31, 2024.
−Removed: Compared to December 31, 2024, the decrease in commercial loan balances was driven by the sale of $836.9 million of single tenant lease financing loans that was completed during the third quarter, as well as decreases in construction, franchise finance and continued run off in the healthcare finance portfolio.
−Removed: The decreases were partially offset by increases in investor commercial real estate, which was driven by completed construction projects that were moved to investor commercial real estate upon entering their stabilization period, as well as growth in the commercial and industrial and small business lending portfolios.
−Removed: The slight decrease in consumer loan balances was due primarily to a decrease in the residential mortgage portfolio, partially offset by origination activity in the other consumer loans portfolio.
+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 adjustments 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.
+Added: Total loans were $3.8 billion as of March 31, 2026, an increase of $29.1 million, or 0.8%, compared to December 31, 2025.
+Added: Total commercial loan balances were $3.0 billion as of March 31, 2026, an increase of $30.5 million, or 1.0%, from December 31, 2025.
+Added: Total consumer loan balances were $783.6 million as of March 31, 2026, an increase of $0.3 million, or less than 0.1%, compared to December 31, 2025.
+Added: Compared to December 31, 2025, the increase in commercial loan balances was driven by construction and single tenant lease financing loans, partially offset by early payoffs in investor commercial real estate and planned run-off in the franchise finance and healthcare finance portfolios.
+Added: The slight increase in consumer loan balances was due primarily to origination activity in the other consumer loans portfolio.
Asset Quality
Nonperforming loans are comprised of nonaccrual loans and loans 90 days past due and accruing.
−Removed: Nonperforming assets include nonperforming loans, other real estate owned and other nonperforming assets, which consist of repossessed assets.
+Added: Nonperforming assets include nonperforming loans, other real estate owned (“OREO”) and other nonperforming assets, which consist of repossessed assets.
The following table provides a summary of the Company’s nonperforming assets for each of the periods presented.
−Removed: (dollars in thousands) September 30,
+Added: (dollars in thousands) March 31,
2026 December 31,
2 unchanged sentences
Commercial and industrial $ 261 $ 240
−Removed: Healthcare finance 1,460 —
Single tenant lease financing 1,665 1,665
+Added: Healthcare finance 1,437 2,596
Small business lending 1
+Added: 21,292 19,781
Franchise finance 23,350 26,978
8 unchanged sentences
Small business lending 268 —
+Added: Franchise finance 6,779 1,144
Total commercial loans 7,047 1,144
1 unchanged sentence
Residential mortgage 1,608 1,007
−Removed: Other consumer loans — 4
Total consumer loans 1,608 1,007
4 unchanged sentences
Small business lending 1,945 2,631
−Removed: Residential mortgage — 272
Total other real estate owned 1,945 2,631
7 unchanged sentences
Allowance for credit losses - loans to nonperforming loans 91.7 % 95.1 %
−Removed: Total nonperforming loans increased $24.8 million, or 87.4%, to $53.3 million as of September 30, 2025 compared to $28.4 million as of December 31, 2024 due primarily to an increase in nonperforming loans in the franchise finance and small business lending portfolios during the year.
−Removed: Total nonperforming assets increased $26.3 million, or 91.1%, to $55.2 million as of September 30, 2025, compared to $28.9 million as of December 31, 2024, due primarily to the aforementioned increase in nonperforming loans and an increase in OREO related to small business lending.
−Removed: As of September 30, 2025, the Company had
−Removed: two small business lending properties in OREO with carrying values of $1.8 million.
−Removed: As of December 31, 2024, the Company had one residential mortgage property in OREO with a carrying value of $0.3 million.
+Added: 1 Balances include $15.5 million and $13.6 million that are guaranteed by the U.S.
+Added: government as of March 31, 2026 and December 31, 2025, respectively.
+Added: Total nonperforming loans increased $3.1 million, or 5.2%, to $61.6 million as of March 31, 2026 compared to $58.5 million as of December 31, 2025 due primarily to an increase in accruing loans past due 90 days or more and nonperforming
+Added: loans in the small business lending portfolio, partially offset by decreases in nonperforming loans in the franchise finance and healthcare finance portfolios.
+Added: Total nonperforming assets increased $2.3 million, or 3.8%, to $63.7 million as of March 31, 2026, compared to $61.4 million as of December 31, 2025, due primarily to the accruing loans past due 90 days or more mentioned above.
+Added: As of March 31, 2026, the Company had two small business lending properties in OREO with carrying values of $1.9 million.
+Added: As of December 31, 2025, the Company had three small business lending properties in OREO with a carrying value of $2.6 million.
Allowance for Credit Losses - Loans
1 unchanged sentence
however, allocation of a portion of the allowance to one segment does not preclude its availability to absorb losses in other segments.
−Removed: Three Months Ended Nine Months Ended Year Ended
−Removed: (dollars in thousands) September 30,
−Removed: 2025 September 30,
−Removed: 2024 September 30,
−Removed: 2025 September 30,
+Added: Three Months Ended Year Ended
+Added: (dollars in thousands) March 31,
+Added: 2026 March 31,
2025 December 31,
3 unchanged sentences
Commercial and industrial (202) — (153)
−Removed: Single tenant lease financing — — — 195 195
+Added: Healthcare finance (38) — —
Small business lending (9,400) (3,668) (39,650)
14 unchanged sentences
Commercial and industrial 0.55 % (0.01 %) 0.11 %
−Removed: Single tenant lease financing 0.00 % 0.00 % 0.00 % 0.03 % 0.02 %
+Added: Healthcare finance 0.11 % 0.00 % 0.00 %
Small business lending 7.12 % 3.79 % 8.16 %
Franchise finance 5.96 % 4.49 % 4.48 %
−Removed: Fintech partnership lending 0.57 % 0.00 % 0.59 % 0.00 % 0.00 %
Total commercial net charge-offs 2.01 % 1.12 % 1.76 %
4 unchanged sentences
Total net charge-offs to average loans 1.65 % 0.92 % 1.45 %
−Removed: The allowance for credit losses - loans (“ACL”) was $59.9 million as of September 30, 2025, compared to $44.8 million as of December 31, 2024.
−Removed: The increase in the ACL reflects updated assumptions to the Company’s CECL model, including updates that significantly increased the ACL related to small business lending, as well as additional specific reserves related to franchise finance loans that were placed on nonaccrual during the nine month period ended September 30, 2025, partially offset by the removal of specific reserves for small business lending and franchise finance loans that were charged off.
−Removed: Furthermore, the ACL as a percentage of total loans was impacted by lower total loan balances following the sale of $836.9 million of single tenant lease financing loans.
−Removed: The ACL as a percentage of total loans was 1.66% at September 30, 2025, compared to 1.07% at December 31, 2024.
−Removed: The ACL as a percentage of nonperforming loans decreased to 112.5% as of September 30, 2025, compared to 157.5% as of December 31, 2024, as the increase in nonperforming loans outweighed the increase in the ACL.
−Removed: Net charge-offs of $21.0 million were recognized during the third quarter 2025, resulting in net charge-offs to average loans of 1.89%, compared to net charge-offs of $1.5 million, or 0.15% of average loans, for the third quarter 2024.
−Removed: Net charge-offs in the third quarter 2025 were elevated as the Company continued to take action to resolve problem loans in the small business lending and franchise finance portfolios.
−Removed: Approximately $15.2 million of net charge-offs recognized during the quarter were related to small business lending and $5.3 million were related to franchise finance loans, with $3.5 million of existing specific reserves previously applied to these loans.
−Removed: During the nine months ended September 30, 2025, the Company recorded net charge-offs of $45.0 million, compared to net charge-offs of $3.4 million during the nine months ended September 30, 2024.
−Removed: The increase in net charge-offs for the nine months ended September 30, 2025 was driven primarily by $30.6 million in net charge-offs related to small business lending and $13.4 million in net charge-offs related to franchise finance loans, with $13.4 million of existing specific reserves previously applied to these loans.
−Removed: The provision for credit losses - loans in the third quarter 2025 was $34.4 million, compared to $3.9 million for the third quarter 2024.
−Removed: The increase in the provision for credit losses - loans for the third quarter 2025 was driven primarily by the net charge-offs, additional specific reserves and the increase in the ACL related to small business lending discussed above, partially offset by the decrease in the ACL resulting from the sale of the single tenant lease financing loans mentioned above and by the decrease in specific reserves related to franchise finance loans that were charged off.
−Removed: The provision for credit losses - loans during the nine months ended September 30, 2025 was $60.1 million, compared to $10.4 million for the nine months ended September 30, 2024.
−Removed: The increase in the provision for credit losses - loans for the nine months ended September 30, 2025 was driven primarily by the net charge-offs, additional specific reserves and the increase in the ACL related to small business lending discussed above, partially offset by the decrease in the ACL resulting from the sale of the single tenant lease financing loans mentioned above and by the decrease in specific reserves related to small business lending and franchise finance loans that were charged off.
+Added: The allowance for credit losses - loans (“ACL”) was $56.5 million as of March 31, 2026, compared to $55.7 million as of December 31, 2025.
+Added: The ACL as a percentage of total loans was 1.50% at March 31, 2026, compared to 1.49% at December 31, 2025.
+Added: The ACL as a percentage of nonperforming loans decreased to 91.7% as of March 31, 2026, compared to 95.1% as of December 31, 2025, as the increase in nonperforming loans outweighed the increase in the ACL.
+Added: Net charge-offs of $15.8 million were recognized during the first quarter 2026, resulting in net charge-offs to average loans of 1.65%, compared to net charge-offs of $9.7 million, or 0.92% of average loans, for the first quarter 2025.
+Added: Net charge-offs in the first quarter 2026 were elevated as the Company continued to take action to resolve problem loans in the small business lending and franchise finance portfolios.
+Added: The provision for credit losses - loans in the first quarter 2026 was $16.6 million, compared to $12.1 million for the first quarter 2025.
+Added: The increase in the provision for credit losses - loans for the first quarter 2026 was driven primarily by the net charge-offs mentioned above and additional specific reserves related to franchise finance loans.
Investment Securities Portfolio
1 unchanged sentence
(amounts in thousands)
−Removed: Amortized Cost September 30,
+Added: Amortized Cost March 31,
2026 December 31,
16 unchanged sentences
(amounts in thousands)
−Removed: Approximate Fair Value September 30,
+Added: Approximate Fair Value March 31,
2026 December 31,
15 unchanged sentences
Total securities $ 1,034,451 $ 1,017,502
−Removed: The approximate fair value of available-for-sale investment securities increased $38.6 million, or 6.6%, to $625.9 million as of September 30, 2025, compared to $587.4 million as of December 31, 2024.
−Removed: The increase was due primarily to an increase of $85.8 million in agency mortgage-backed securities - residential, partially offset by decreases of $15.3 million in U.S.
−Removed: Government-sponsored agencies, $12.9 million in corporate securities, $8.9 million in private label mortgage-backed securities - residential, $6.3 million in asset-backed securities, $2.8 million in agency mortgage-backed securities - commercial and $1.1 million in municipal securities.
−Removed: The Company deployed liquidity during 2025 into new purchases of available-for-sale variable-rate agency mortgage-backed securities - residential, partially offset by net pay down activity in other security types.
−Removed: As of September 30, 2025, the Company had securities with a net carrying value of $261.7 million designated as held-to-maturity, compared to $249.8 million as of December 31, 2024.
+Added: The approximate fair value of available-for-sale investment securities decreased $6.7 million, or 0.9%, to $772.0 million as of March 31, 2026, compared to $778.7 million as of December 31, 2025.
+Added: The decrease was due primarily to decreases of $7.9 million in private label mortgage-backed securities - residential, $6.3 million in municipal securities, $4.6 million in U.S.
+Added: Government-sponsored agencies and $3.3 million in asset-backed securities, partially offset by increases of $12.6 million in agency mortgage-backed securities - residential and $2.7 million in agency mortgage-backed securities - commercial.
+Added: The Company deployed available liquidity during the first quarter 2026 into new purchases of available-for-sale short-duration agency mortgage-backed securities - residential and agency mortgage-backed securities - commercial, which was partially offset by net pay down activity in other security types.
+Added: As of March 31, 2026, the Company had securities with a net carrying value of $276.0 million designated as held-to-maturity, compared to $250.6 million as of December 31, 2025.
The increase was due primarily to purchases of CRA-eligible agency mortgage-backed securities - residential made in the first quarter 2026.
Accrued Income and Other Assets
−Removed: Accrued income and other assets increased $21.0 million, or 33.3%, to $84.0 million at September 30, 2025, compared to $63.0 million at December 31, 2024.
−Removed: The increase was due primarily to increases of $12.7 million in deferred tax assets, $6.6 million in equity fund investments and $1.5 million in prepaid assets.
+Added: Accrued income and other assets increased $1.5 million, or 1.7%, to $90.5 million at March 31, 2026, compared to $89.1 million at December 31, 2025.
+Added: The increase was due primarily to increases of $1.3 million in various receivables, $0.5 million in deferred tax assets and $0.4 million in investments in fund partnerships, partially offset by a decrease of $0.6 million in prepaid assets.
Accrued Expenses and Other Liabilities
−Removed: Accrued expenses and other liabilities decreased $2.5 million, or 13.9%, to $15.5 million at September 30, 2025, compared to $17.9 million at December 31, 2024.
−Removed: The decrease was due primarily to decreases of $2.7 million in accrued salary and benefits and $1.2 million in other accrued expenses, partially offset by increases of $1.2 million in unfunded commitments and $0.3 million in the reserve for unfunded loan commitments.
+Added: Accrued expenses and other liabilities increased $7.4 million, or 48.5%, to $22.8 million at March 31, 2026, compared to $15.4 million at December 31, 2025.
+Added: The increase was due primarily to an increase related to securities purchased at the end of March that did not settle until April and accrued interest, partially offset by decreases of $0.3 million in both unfunded commitments and the reserve for unfunded loan commitments.
The following table shows the composition of the Company’s deposit base for each of the periods presented.
−Removed: (dollars in thousands) September 30,
+Added: (dollars in thousands) March 31,
2026 December 31,
6 unchanged sentences
Total deposits $ 4,981,650 100.0 % $ 4,839,813 100.0 %
−Removed: Total deposits decreased $17.8 million, or 0.3%, to $4.9 billion as of September 30, 2025, compared to $4.9 billion as of December 31, 2024.
−Removed: The decrease was due primarily to decreases of $279.6 million, or 49.7%, in brokered deposits and $17.8 million, or 0.8%, in certificates of deposits, partially offset by increases of $107.3 million, or 12.0%, in interest-bearing demand deposits, $107.1 million, or 78.5%, in noninterest-bearing deposits and $66.4 million, or 5.6%, in money market accounts.
−Removed: The increase in noninterest-bearing deposits and interest-bearing demand deposits, driven by growth in fintech partnership deposits, provided the ability to pay down maturing higher-cost brokered deposits and certificates of deposits.
−Removed: Uninsured deposit balances represented 33% of total deposits at September 30, 2025, up from 25% at December 31, 2024.
+Added: Total deposits increased $141.8 million, or 2.9%, to $5.0 billion as of March 31, 2026, compared to $4.8 billion as of December 31, 2025.
+Added: The increase was due primarily to increases of $237.2 million, or 21.2%, in interest-bearing demand deposits and $52.5 million, or 4.1%, in money market accounts, partially offset by decreases of $135.8 million, or 6.8%, in certificates of deposits and $16.1 million, or 5.9%, in brokered deposits.
+Added: The increase in interest-bearing demand deposits was driven by growth in fintech partnership deposits, which provided the ability to pay down higher-cost brokered deposits and certificates of deposits.
+Added: Uninsured deposit balances represented 39% of total deposits at March 31, 2026, up from 33% at December 31, 2025.
These balances include Indiana-based municipal deposits, which are insured by the Indiana Board for Depositories, as well as larger balance accounts under contractual agreements that only allow withdrawal under certain conditions.
−Removed: After subtracting these types of deposits, the adjusted uninsured deposit balance drops to 27% as of September 30, 2025, compared to 20% as of December 31, 2024.
+Added: After subtracting these types of deposits, the adjusted uninsured deposit balance drops to 34% as of March 31, 2026, compared to 27% as of December 31, 2025.
+Added: The increase in uninsured deposit balances was impacted by increases in fintech payment volumes experienced on the last day of the quarter.
Regulatory Capital Requirements
11 unchanged sentences
Failure to maintain the minimum Common Equity Tier 1 capital ratio plus the capital conservation buffer will result in potential restrictions on a banking institution’s ability to pay dividends, repurchase stock and/or pay discretionary compensation to its employees.
−Removed: The following tables present actual and required capital ratios as of September 30, 2025 and December 31, 2024 for the Company and the Bank under the Basel III Capital Rules.
−Removed: The minimum required capital amounts presented include the minimum required capital levels as of September 30, 2025 and December 31, 2024, which are based on the Basel III Capital Rules.
+Added: The following tables present actual and required capital ratios as of March 31, 2026 and December 31, 2025 for the Company and the Bank under the Basel III Capital Rules.
+Added: The minimum required capital amounts presented include the minimum required capital levels as of March 31, 2026 and December 31, 2025, which are based on the Basel III Capital Rules.
Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.
−Removed: As permitted by the federal banking regulatory agencies, the Company elected the option to delay the impact of the day one adoption of ASC 326.
−Removed: The transition adjustments of $4.5 million will be phased into the regulatory capital calculations over a three-year period, with 25% of the adjustment recognized in 2023, 50% of the adjustment recognized in 2024, 75% of the adjustment recognized in 2025 and 100% of the adjustment recognized in 2026.
Actual Minimum Capital Required - Basel III Minimum Required to be Considered Well Capitalized
(dollars in thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio
−Removed: As of September 30, 2025:
+Added: As of March 31, 2026:
Common equity tier 1 capital to risk-weighted assets
26 unchanged sentences
Shareholders’ Dividends
−Removed: The Company’s Board of Directors declared a cash dividend of $0.06 per share of common stock payable October 15, 2025 to shareholders of record as of September 30, 2025.
+Added: The Company’s Board of Directors declared a cash dividend of $0.06 per share of common stock payable April 15, 2026 to shareholders of record as of March 31, 2026.
The Company expects to continue to pay cash dividends on a quarterly basis;
however, the declaration and amount of any future cash dividends will be subject to the sole discretion of the Board of Directors and will depend upon many factors, including the Company’s results of operations, financial condition, capital requirements, regulatory and contractual restrictions (including with respect to the Company’s outstanding subordinated debt), business strategy and other factors deemed relevant by the Board of Directors.
−Removed: As of September 30, 2025, the Company had $107.0 million principal amount of subordinated debt outstanding evidenced by the 2029 Notes, 2030 Note and 2031 Notes.
+Added: As of March 31, 2026, the Company had $107.0 million principal amount of subordinated debt outstanding evidenced by the 2029 Notes, 2030 Note and 2031 Notes.
The agreements that govern our outstanding subordinated debt prohibit the Company from paying any dividends on its common stock or making any other distributions to shareholders at any time when there shall have occurred, and be continuing to occur, an event of default under the applicable agreement.
2 unchanged sentences
The Company believes it has sufficient liquidity and capital resources to meet its cash and capital expenditure requirements for the next twelve months and longer.
−Removed: The Company may explore strategic alternatives, including additional asset, deposit or revenue generation channels that complement our small business, commercial and consumer banking platforms, which may require additional capital.
+Added: The Company may explore strategic alternatives, including additional asset, deposit or revenue generation channels that complement our small business, commercial, consumer and fintech banking platforms, which may require additional capital.
If the Company is unable to secure such capital at favorable terms, its ability to take advantage of such opportunities could be adversely affected.
−Removed: On December 19, 2022, the Company's Board of Directors approved a stock repurchase program that authorized the repurchase of up to $25.0 million of our outstanding common stock from time to time on the open market or in privately negotiated transactions.
−Removed: The stock repurchase authorization expired on December 31, 2024.
−Removed: Under this program, the Company repurchased 559,522 shares of common stock at an average price of $19.06, for a total investment of $10.7 million.
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.
+Added: Under the program, the Company repurchased 27,998 shares of common stock, at an average price of $18.64, for a total investment of $0.5 million as of March 31, 2026.
The stock repurchase authorization is scheduled to expire on September 30, 2027.
5 unchanged sentences
While scheduled payments and maturities of loans and investment securities are relatively predictable sources of funds, deposit flows are greatly influenced by interest rates, general economic conditions and competition.
−Removed: Therefore, the Company supplements deposit growth and enhances interest rate risk management through borrowings and wholesale funding, which are generally advances from the Federal Home Loan Bank (“FHLB”) and brokered deposits.
+Added: Therefore, the Company may supplement deposit growth and enhances interest rate risk management through borrowings and wholesale funding, which are generally advances from the Federal Home Loan Bank (“FHLB”) and brokered deposits.
The Company holds cash and investment securities that qualify as liquid assets to maintain adequate liquidity to ensure safe and sound operations and meet its financial commitments.
−Removed: At September 30, 2025, on a consolidated basis, the Company had $1.4 billion in cash and cash equivalents and investment securities available-for-sale and $141.6 million in loans held-for-sale that were generally available for its cash needs.
−Removed: Further, the Company retains the ability draw upon any deposit balances held off-balance sheet, with optionality to recall $717.7 million of such funds onto the balance sheet at September 30, 2025.
+Added: At March 31, 2026, on a consolidated basis, the Company had $1.4 billion in cash and cash equivalents and investment securities available-for-sale and $55.2 million in loans held-for-sale that were generally available for its cash needs.
+Added: Additionally, the Company uses a custodial deposit arrangement for certain deposit programs whereby the Company, acting as custodian of account holder funds, places a portion of such account holder funds that are not needed to support near term liquidity needs at one or more third-party banks insured by the FDIC through the IntraFi One-Way Sell network.
+Added: The Company remains the issuer of, and maintains the records for, all accounts under the applicable account holder agreements and, importantly, retains transactional authority to move funds on-and-off balance sheet as liquidity needs merit.
+Added: Such off-balance sheet deposits totaled $1.5 billion at March 31, 2026 and $1.1 billion at December 31, 2025 and primarily consist of fintech partnership deposits.
The Company can also generate funds from wholesale funding sources and collateralized borrowings.
−Removed: At September 30, 2025, the Bank had the ability to borrow an additional $1.4 billion from the FHLB, the Federal Reserve and correspondent bank Fed Funds lines of credit, which when combined with cash balances and off-balance sheet deposits, totaled $2.9 billion and represented 216% of adjusted uninsured deposit balances.
+Added: At March 31, 2026, the Bank had the ability to borrow an additional $1.7 billion from the FHLB, the Federal Reserve and correspondent bank Fed Funds lines of credit.
The Company is a separate legal entity from the Bank and must provide for its own liquidity.
1 unchanged sentence
The Company’s primary sources of funds are cash maintained at the holding company level and dividends from the Bank, the payment of which is subject to regulatory limits.
−Removed: At September 30, 2025, the Company, on an unconsolidated basis, had $15.3 million in cash for debt servicing and operating expenses.
+Added: At March 31, 2026, the Company, on an unconsolidated basis, had $9.0 million in cash for debt servicing and operating expenses.
The Company uses its sources of funds primarily to meet ongoing financial commitments, including withdrawals by depositors, credit commitments to borrowers, operating expenses and capital expenditures.
−Removed: At September 30, 2025, approved outstanding loan commitments, including unused lines of credit and standby letters of credit, amounted to $594.8 million.
−Removed: Certificates of deposits and brokered deposits scheduled to mature in one year or less at September 30, 2025 totaled $1.5 billion.
+Added: At March 31, 2026, approved outstanding loan commitments, including unused lines of credit and standby letters of credit, amounted to $610.6 million.
+Added: Certificates of deposits and brokered deposits scheduled to mature in one year or less at March 31, 2026 totaled $1.4 billion.
Management is not aware of any other events or regulatory requirements that, if implemented, are likely to have a material effect on either the Company’s or the Bank’s liquidity.
1 unchanged sentence
This Management’s Discussion and Analysis contains financial information determined by methods other than in accordance with GAAP.
−Removed: Non-GAAP financial measures, specifically tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, average tangible common equity, return on average tangible common equity, total interest income - FTE, net interest income - FTE, net interest margin - FTE, pre-tax, adjusted total revenue, pre-provision (loss) income, adjusted pre-tax, pre-provision income, adjusted noninterest income, adjusted noninterest expense, adjusted (loss) income before income taxes, adjusted income tax (benefit) provision, adjusted net (loss) income, adjusted diluted (loss) earnings per share, adjusted return on average assets, adjusted return on average shareholders’ equity and adjusted return on average tangible common equity are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders.
+Added: Non-GAAP financial measures, specifically tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, average tangible common equity, return on average tangible common equity, total interest income - FTE, net interest income - FTE, net interest margin - FTE and pre-provision net revenue are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders.
The Company also believes that it is a standard practice in the banking industry to present total interest income, net interest income and net interest margin on a fully-taxable equivalent basis, as those measures provide useful information for peer comparisons.
1 unchanged sentence
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the following table for each of the periods presented.
−Removed: (dollars in thousands, except share and per share data) Three Months Ended Nine Months Ended
−Removed: September 30,
−Removed: 2025 September 30,
−Removed: 2024 September 30,
−Removed: 2025 September 30,
+Added: (dollars in thousands, except share and per share data) Three Months Ended
+Added: 2026 March 31,
Total equity - GAAP $ 360,954 $ 387,747
17 unchanged sentences
Return on average tangible common equity 2.75 % 0.99 %
−Removed: (dollars in thousands, except share and per share data) Three Months Ended Nine Months Ended
−Removed: September 30,
−Removed: 2025 September 30,
−Removed: 2024 September 30,
−Removed: 2025 September 30,
+Added: (dollars in thousands, except share and per share data) Three Months Ended
+Added: 2026 March 31,
Total interest income $ 75,810 $ 76,829
Fully-taxable equivalent adjustments 1
−Removed: 1,158 1,133 3,484 3,498
Total interest income - FTE $ 76,970 $ 77,998
1 unchanged sentence
Fully-taxable equivalent adjustments 1
−Removed: 1,158 1,133 3,484 3,498
Net interest income - FTE $ 32,758 $ 26,265
3 unchanged sentences
Net interest margin - FTE 2.45 % 1.91 %
−Removed: 1 Assuming a 21% tax rate
−Removed: (dollars in thousands, except share and per share data) Three Months Ended Nine Months Ended
−Removed: September 30,
−Removed: 2025 September 30,
−Removed: 2024 September 30,
−Removed: 2025 September 30,
−Removed: Total revenue- GAAP 1
−Removed: $ 5,705 $ 33,794 $ 74,775 $ 95,235
−Removed: Gain on sale of loans 37,823 — 37,823 —
−Removed: Adjusted total revenue $ 43,528 $ 33,794 $ 112,598 $ 95,235
−Removed: Net (loss) income-GAAP $ (41,593) $ 6,990 $ (40,457) $ 17,946
+Added: Net income-GAAP $ 2,509 $ 943
+Added: Adjustments :1
Provision for credit losses 16,305 11,933
−Removed: Income tax (benefit) provision (12,950) 620 (15,914) 1,267
−Removed: Pre-tax, pre-provision (loss) income $ (19,754) $ 11,000 $ 3,959 $ 29,082
−Removed: Pre-tax, pre-provision (loss) income $ (19,754) $ 11,000 $ 3,959 $ 29,082
−Removed: Loss on sale of loans $ 37,823 $ — $ 37,823 $ —
−Removed: Adjusted Pre-tax, pre-provision income $ 18,069 $ 11,000 $ 41,782 $ 29,082
−Removed: Noninterest (loss) income - GAAP $ (24,647) $ 12,029 $ (8,663) $ 31,409
−Removed: Loss on sale of loans $ 37,823 $ — $ 37,823 $ —
−Removed: Adjusted noninterest income $ 13,176 $ 12,029 $ 29,160 $ 31,409
−Removed: Noninterest expense - GAAP $ 25,459 $ 22,794 $ 70,816 $ 66,153
−Removed: IT termination fees — — — (452)
−Removed: Anniversary expenses — — — (120)
−Removed: Adjusted noninterest expense $ 25,459 $ 22,794 $ 70,816 $ 65,581
−Removed: (Loss) Income before income taxes - GAAP $ (54,543) $ 7,610 $ (56,371) $ 19,213
−Removed: Loss on sale of loans 37,823 — 37,823 —
−Removed: IT termination fees — — — 452
−Removed: Anniversary expenses — — — 120
−Removed: Adjusted (loss) income before income taxes $ (16,720) $ 7,610 $ (18,548) $ 19,785
−Removed: Income tax (benefit) provision - GAAP $ (12,950) $ 620 $ (15,914) $ 1,267
−Removed: Loss on sale of loans 8,699 — 8,699 —
−Removed: IT termination fees — — — 95
−Removed: Anniversary expenses — — — 25
−Removed: Adjusted income tax (benefit) provision $ (4,251) $ 620 $ (7,215) $ 1,387
−Removed: Net (loss) income - GAAP $ (41,593) $ 6,990 $ (40,457) $ 17,946
−Removed: Loss on sale of loans 29,124 — 29,124 —
−Removed: IT termination fees — — — 357
−Removed: Anniversary expenses — — — 95
−Removed: Adjusted net (loss) income $ (12,469) $ 6,990 $ (11,333) $ 18,398
−Removed: 1 Calculated as the sum of total interest income, total interest expense and noninterest (loss) income
+Added: Income tax benefit (725) (909)
+Added: Pre-provision net revenue $ 18,089 $ 11,967
1 Assuming a 21% tax rate
−Removed: (dollars in thousands, except share and per share data) Three Months Ended Nine Months Ended
−Removed: September 30,
−Removed: 2025 September 30,
−Removed: 2024 September 30,
−Removed: 2025 September 30,
−Removed: Diluted average common shares outstanding 8,742,052 8,768,731 8,730,519 8,756,544
−Removed: Diluted (loss) earnings per share - GAAP $ (4.76) $ 0.80 $ (4.63) $ 2.05
−Removed: Effect of loss on sale of loans 3.33 — 3.34 —
−Removed: Effect of IT termination fees — — — 0.04
−Removed: Effect of anniversary expenses — — — 0.01
−Removed: Adjusted diluted (loss) earnings per share $ (1.43) $ 0.80 $ (1.29) $ 2.10
−Removed: Return on average assets (2.71 %) 0.50 % (0.91 %) 0.45 %
−Removed: Effect of loss on sale of loans 1.90 % 0.00 % 0.66 % 0.00 %
−Removed: Effect of IT termination fees 0.00 % 0.00 % 0.00 % 0.01 %
−Removed: Effect of anniversary expenses 0.00 % 0.00 % 0.00 % 0.00 %
−Removed: Adjusted return on average assets (0.81 %) 0.50 % (0.25 %) 0.46 %
−Removed: Return on average shareholders' equity (42.11 %) 7.32 % (13.80 %) 6.42 %
−Removed: Effect of loss on sale of loans 29.48 % 0.00 % 9.94 % 0.00 %
−Removed: Effect of IT termination fees 0.00 % 0.00 % 0.00 % 0.13 %
−Removed: Effect of anniversary expenses 0.00 % 0.00 % 0.00 % 0.03 %
−Removed: Adjusted return on average shareholders’ equity (12.63 %) 7.32 % (3.86 %) 6.58 %
−Removed: Return on average tangible common equity (42.62 %) 7.41 % (13.97 %) 6.51 %
−Removed: Effect of loss on sale of loans 29.84 % 0.00 % 10.06 % 0.00 %
−Removed: Effect of IT termination fees 0.00 % 0.00 % 0.00 % 0.13 %
−Removed: Effect of anniversary expenses 0.00 % 0.00 % 0.00 % 0.03 %
−Removed: Adjusted return on average tangible common equity (12.78 %) 7.41 % (3.91 %) 6.67 %
Critical Accounting Policies and Estimates
There have been no material changes in the Company’s critical accounting policies or estimates from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025, except as described below.
−Removed: Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired.
−Removed: Goodwill is not amortized but is periodically evaluated for impairment under the provisions of ASC Topic 350, Intangibles - Goodwill and Others.
−Removed: Impairment losses on recorded goodwill, if any, will be recorded as operating expenses.
−Removed: Impairment testing is performed using either a qualitative or quantitative approach.
−Removed: The Company has selected August 31 as the date to perform the annual goodwill impairment test.
−Removed: Additionally, the Company performs a goodwill impairment evaluation on an interim basis when events or circumstances indicate impairment potentially exists.
−Removed: To quantitatively test goodwill for impairment, an income-based approach and a market-based approach are completed.
−Removed: The income-based approach utilizes a calculation based on the discounted cash flow method and relies on assumptions, some of which involve a level of subjectivity and judgment.
−Removed: Certain assumptions may be subject to market and economic conditions.
−Removed: Notably, key inputs to estimate the discounted after-tax net income stream and terminal fair value of the Company include projected balance sheet and income statement forecasts prepared by Company management.
−Removed: Further, after-tax net income streams distributable to common equity holders are subjected to a minimum tangible equity requirement of 8.00%.
−Removed: These inputs are discounted by the cost of equity, which includes assumptions involving the Company’s beta, equity risk, size and premiums, and the 20-year treasury yield.
−Removed: Assumptions used in calculating the cost of equity are obtained using market and third-party data.
−Removed: The market-based approach utilizes two methodologies for its calculation:
−Removed: a peer analysis and a comparable transaction analysis.
−Removed: The peer analysis uses a set of comparable institutions price to earnings and price to tangible book value multiples and
−Removed: applies the multiple to forecasted net income/tangible book value to determine if impairment is present.
−Removed: The peer analysis also includes an assumed control premium in the determination of the fair value of the Company.
−Removed: The comparable transaction analysis applies price-to-earnings and price-to-tangible book value multiples for comparable merger and acquisition activity and applies the multiple to forecasted net income and tangible book value to determine if impairment is present.
−Removed: Notably, the comparable transaction analysis assumes a control premium is already implied within the multiples selected.
−Removed: Upon completion of the income-based approach and market-based approach, the results are then weighted to determine a final estimated fair value of equity.
−Removed: When results were compared to book value, no impairment was indicated as of August 31, 2025.
−Removed: Judgment is inherent in assessing goodwill for impairment.
−Removed: The various assumptions used in assessing goodwill for impairment involve uncertainties that are beyond the Company’s control and could cause actual results to differ materially from those projected.
−Removed: We will continue to monitor the impact of current economic conditions and other events on the Company’s business, operating results, cash flows and financial condition.
−Removed: If the current economic conditions and other events were to deteriorate and the Company’s stock price falls below current levels for a prolonged period, we will have to reevaluate the impact on the Company’s financial condition and potential impairment of goodwill.
Recent Accounting Pronouncements
Refer to Note 15 to the condensed consolidated financial statements.
−Removed: Off-Balance Sheet Arrangements
−Removed: In the ordinary course of business, the Company enters into financial transactions to extend credit, interest rate swap agreements and forms of commitments that may be considered off-balance sheet arrangements.
−Removed: Interest rate swaps are arranged to receive hedge accounting treatment and are classified as either fair value or cash flow hedges.
−Removed: Fair value hedges are purchased to convert certain fixed rate assets to floating rate.
−Removed: Cash flow hedges are used to convert certain variable rate liabilities into fixed rate liabilities.
−Removed: In November 2024, the Company’s interest rate swap derivative designated as fair value hedges matured.
−Removed: In December 2024, the Company terminated interest rate swaps utilized as cash flow hedges against Federal Home Loan Bank advances.
−Removed: As a result, the Company had no interest rate swaps that were classified as either fair value or cash flow hedges either at September 30, 2025 or at December 31, 2024.
−Removed: Refer to Note 12 to the condensed consolidated financial statements for additional information about derivative financial instruments.
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.