What changed in this filing

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Item 1. Financial Statements

2025-11-13 compared with 2025-08-13 · 148 added, 147 removed, 771 unchanged (28% of the section changed)

2 unchanged sentences

Consol idated Balance Sheets

September 30,

(in thousands, except share and per share data)

June 30, 2025

December 31, 2024

Cash and due from banks

32 unchanged sentences

Authorized 10,000,000 shares;

issued and outstanding 6,366,001 (including 5,028 unvested) shares as of June 30, 2025 and 6,363,371 (including 4,961 unvested) shares as of December 31, 2024

issued and outstanding 6,366,001 (including 5,028 unvested) shares as of September 30, 2025 and 6,363,371 (including 4,961 unvested) shares as of December 31, 2024

Retained earnings

4 unchanged sentences

National Bankshares, Inc.

Consolidated Statements of Income (Loss)

Three Months Ended June 30,

Consolidated Statements of Income

Three Months Ended September 30,

(in thousands, except share and per share data)

12 unchanged sentences

Net interest income

Provision for credit losses

Net interest income after provision for credit losses

Provision for (recovery of) credit losses

Net interest income after provision for (recovery of) credit losses

Noninterest Income

7 unchanged sentences

Occupancy, furniture and fixtures

Data processing and ATM

Data processing

FDIC assessment

3 unchanged sentences

Merger-related expense

Conversion expense

Core system conversion expense

Other operating expenses

Total noninterest expense

Income (loss) before income tax

Income tax expense (benefit)

Net Income (Loss)

Basic net income (loss) per common share

Diluted net income (loss) per common share

Income before income tax expense

Income tax expense

Basic net income per common share

Diluted net income per common share

Weighted average number of common shares outstanding, basic

Weighted average number of common shares outstanding, diluted

Dividends declared per common share

See accompanying notes to consolidated financial statements.

National Bankshares, Inc.

Consolidated Statements of Comprehensive Income (Loss)

Three Months Ended June 30, 2025 and 2024

Three months ended June 30,

Consolidated Statements of Comprehensive Income

Three Months Ended September 30, 2025 and 2024

Three months ended September 30,

(in thousands)

Net Income (Loss)

Other Comprehensive Income (Loss), Net of Tax

Unrealized holding gain (loss) on available for sale securities net of tax of $ 1,000 and

($ 40 ) for the periods ended June 30, 2025 and 2024, respectively

Other comprehensive income (loss), net of tax

Total Comprehensive Income (Loss)

Other Comprehensive Income, Net of Tax

Unrealized holding gain on available for sale securities net of tax of $ 1,599 and

$ 4,284 for the periods ended September 30, 2025 and 2024, respectively

Other comprehensive income, net of tax

Total Comprehensive Income

See accompanying notes to consolidated financial statements.

National Bankshares, Inc.

Consolidated Statements of Income

For the Six Months Ended June 30,

For the Nine Months Ended September 30,

(in thousands, except share and per share data)

23 unchanged sentences

Occupancy, furniture and fixtures

Data processing and ATM

Data processing

FDIC assessment

3 unchanged sentences

Merger-related expense

Conversion expense

Core system conversion expense

Other operating expenses

7 unchanged sentences

Dividends declared per common share

See accompanying notes to consolidated financial statements.

National Bankshares, Inc.

Consolidate d Statements of Comprehensive Income (Loss)

Six Months Ended June 30, 2025 and 2024

For the Six Months Ended June 30,

Consolidate d Statements of Comprehensive Income

Nine Months Ended September 30, 2025 and 2024

For the Nine Months Ended September 30,

(in thousands)

Other Comprehensive Income (Loss), Net of Tax

Unrealized holding gain (loss) on available for sale securities net of tax of $ 3,017 and

($ 927 ) for the periods ended June 30, 2025 and 2024, respectively

Other comprehensive income (loss), net of tax

Total Comprehensive Income (Loss)

Other Comprehensive Income, Net of Tax

Unrealized holding gain on available for sale securities net of tax of $ 4,616 and

$ 3,357 for the periods ended September 30, 2025 and 2024, respectively

Other comprehensive income, net of tax

Total Comprehensive Income

See accompanying notes to consolidated financial statements.

1 unchanged sentence

Consolidated Statem ents of Changes in Stockholders’ Equity

Three Months Ended June 30, 2025 and 2024

Three Months Ended September 30, 2025 and 2024

(in thousands, except share data)

2 unchanged sentences

Accumulated Other Comprehensive Loss

Balances at March 31, 2024

Acquisition of Frontier Community Bank

Cash dividends of $ 0.73 per share

Other comprehensive loss, net of tax of ($ 40 )

Stock based compensation

Balances at June 30, 2024

Balances at March 31, 2025

Cash dividends of $ 0.73 per share

Other comprehensive income, net of tax of $ 4,284

Stock based compensation

Balances at September 30, 2024

Balances at June 30, 2025

Six Months Ended June 30, 2025 and 2024

Other comprehensive income, net of tax of $ 1,599

Stock based compensation

Balances at September 30, 2025

Nine Months Ended September 30, 2025 and 2024

(in thousands, except per share data)

Common Stock and Additional Paid-in Capital

Paid-in Capital

Comprehensive

2 unchanged sentences

Cash dividends of $ 0.73 per share

Other comprehensive loss, net of tax of ($ 927 )

Other comprehensive income, net of tax of $ 3,357

Stock based compensation

Balances at June 30, 2024

Balances at September 30, 2024

Balances at December 31, 2024

2 unchanged sentences

Stock based compensation

Balances at June 30, 2025

Balances at September 30, 2025

See accompanying notes to consolidated financial statements.

1 unchanged sentence

Consolidat ed Statements of Cash Flows

Six Months Ended June 30, 2025 and 2024

For the Six Months Ended June 30,

Nine Months Ended September 30, 2025 and 2024

For the Nine Months Ended September 30,

(in thousands)

11 unchanged sentences

Increase in cash value of bank-owned life insurance

Gain on disposal of premises and equipment, net

Equity based compensation expense

7 unchanged sentences

Proceeds from calls, sales and maturities of securities available for sale

Purchases of available for sale securities

Net change in restricted stock

4 unchanged sentences

Purchases of premises and equipment

Proceeds from sale of premises and equipment

Cash acquired in the acquisition, net of cash paid

Net cash provided by investing activities

Net cash used in investing activities

Cash Flows from Financing Activities

2 unchanged sentences

Cash dividends paid

Repayment of borrowings

Net cash (used in) provided by financing activities

Net change in borrowings

Net cash used in financing activities

Net change in cash and cash equivalents

1 unchanged sentence

Cash and cash equivalents at end of period

For the Six Months Ended June 30,

For the Nine Months Ended September 30,

(in thousands)

9 unchanged sentences

Notes t o Consolidated Financial Statements

June 30, 2025

September 30, 2025

$ in thousands, except per share data

11 unchanged sentences

Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses on loans and acquisition accounting.

The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of results of operations for the full year or any other interim period.

The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of results of operations for the full year or any other interim period.

The interim period consolidated financial statements and financial information included in this Form 10-Q should be read in conjunction with the notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (“2024 Form 10-K”).

39 unchanged sentences

Please refer to the Company’s 2024 Form 10-K, Note 22:

Business Combination for additional information of the acquisition of FCB.

Business Combination for additional information regarding the acquisition of FCB.

The following table presents the calculation of the purchase price and the fair value of the identifiable assets and liabilities as of the Acquisition Date.

31 unchanged sentences

Loans include acquired loans and originated loans.

Acquired loans are presented at their outstanding principal balance, net of the remaining purchase discount of $ 6,949 as of June 30, 2025 and $ 7,564 as of December 31, 2024.

Originated loans as of June 30, 2025 and December 31, 2024 are presented at amortized cost, net of deferred fees and costs.

Acquired loans are presented at their outstanding principal balance, net of the remaining purchase discount of $ 6,239 as of September 30, 2025 and $ 7,564 as of December 31, 2024.

Originated loans as of September 30, 2025 and December 31, 2024 are presented at amortized cost, net of deferred fees and costs.

The following table presents the composition of the loan portfolio, excluding mortgage loans held for sale, as of the dates indicated.

September 30,

Real estate construction

8 unchanged sentences

Total loans, net

Accrued interest receivable of $ 3,382 at June 30, 2025 and $ 3,299 at December 31, 2024 is not included in total loans above.

Accrued interest receivable of $ 3,357 at September 30, 2025 and $ 3,299 at December 31, 2024 is not included in total loans above.

Past Due and Nonaccrual Loans

The following tables present the aging of past due loans, by loan pool, as of the dates indicated.

June 30, 2025

September 30, 2025

Real Estate Construction

34 unchanged sentences

The following table presents nonaccrual loans, by loan class, as of the dates indicated:

June 30, 2025

September 30, 2025

December 31, 2024

1 unchanged sentence

Commercial real estate owner-occupied

No accrued interest receivable was reversed against interest income during the three and six months ended June 30, 2025 or June 30, 2024.

No accrued interest receivable was reversed against interest income during the three and nine months ended September 30, 2025 or September 30, 2024.

Allowance for Credit Losses on Loans (“ACLL”)

The following tables present the activity in the ACLL by portfolio segment for the periods indicated:

Activity in the ACLL for the Six Months Ended June 30, 2025

Activity in the ACLL for the Nine Months Ended September 30, 2025

Balance, December 31, 2024

Provision for (recovery of) credit losses

Balance, June 30, 2025

Activity in the ACLL for the Six Months Ended June 30, 2024

Balance, September 30, 2025

Activity in the ACLL for the Nine Months Ended September 30, 2024

Balance, December 31, 2023

1 unchanged sentence

Merger adjustment (1)

Balance, June 30, 2024

Balance, September 30, 2024

Activity in the ACLL for the Year Ended December 31, 2024

6 unchanged sentences

ACLL by Segment and Evaluation Method

June 30, 2025

September 30, 2025

Real Estate Construction

8 unchanged sentences

December 31, 2024

Consumer Real Estate

Commercial Real Estate

Commercial Non Real Estate

Consumer Non Real Estate

Individually evaluated

2 unchanged sentences

Loans by Segment and Evaluation Method

June 30, 2025

September 30, 2025

Real Estate Construction

17 unchanged sentences

If the fair value of the collateral exceeds the amortized cost, no ACLL is required.

As of June 30, 2025 and December 31, 2024, three of the Company’s individually evaluated loans were collateral dependent and secured by real estate.

As of September 30, 2025 and December 31, 2024, three of the Company’s individually evaluated loans were collateral dependent and secured by real estate.

The following table provides detail on collateral dependent loans as of the dates indicated:

June 30, 2025

September 30, 2025

December 31, 2024

13 unchanged sentences

loans with well-defined weaknesses that heighten the risk of default are rated classified.

The following tables present the amortized cost basis of the loan portfolio by year of origination, loan class and credit quality as of June 30, 2025 and December 31, 2024, and gross charge-offs by year of origination for the six months ended June 30, 2025 and the year ended December 31, 2024 .

The following tables present the amortized cost basis of the loan portfolio by year of origination, loan class and credit quality as of September 30, 2025 and December 31, 2024, and gross charge-offs by year of origination for the nine months ended September 30, 2025 and the year ended December 31, 2024 .

Term Loans Amortized Cost Basis by Origination Year

June 30, 2025

September 30, 2025

Construction, residential

9 unchanged sentences

Commercial and industrial

Special Mention

Public sector and IDA

3 unchanged sentences

Special Mention

Gross Charge Offs by Origination Year for the Six Months Ended June 30, 2025

Gross Charge Offs by Origination Year for the Nine Months Ended September 30, 2025

Residential closed-end first liens

26 unchanged sentences

On the date a loan is modified, the Company assesses whether the borrower is experiencing financial difficulty.

If the borrower is experiencing financial difficulty, the loan is risk rated special mention or classified, as determined appropriate.

If the borrower is experiencing financial difficulty, the loan is risk rated special mention or classified, as appropriate.

If the loan exceeds $ 400 , if it is placed in nonaccrual, or if foreclosure is probable, the loan is individually evaluated for the ACLL.

During the three and six months ended June 30, 2025, no loans were modified for borrowers experiencing financial difficulty.

During the three and nine months ended September 30, 2025, no loans were modified for borrowers experiencing financial difficulty.

Two loans were modified for borrowers experiencing financial difficulty during the first three months of 2024.

One of these loans was modified a second time during the three month period ended June 30, 2024.

The following table presents information as of June 30, 2024 about loans modified for borrowers experiencing financial difficulty during the six months ended June 30, 2024.

June 30, 2024

These loans were modified again during the three month period ended September 30, 2024.

The following table presents information as of September 30, 2024 about loans modified for borrowers experiencing financial difficulty during the nine months ended September 30, 2024.

September 30, 2024

Financial Effect

8 unchanged sentences

The Company closely monitors the performance of loans that are modified for borrowers experiencing financial difficulty.

As of June 30, 2024, the loans were in current status and individually evaluated.

There were no modified loans to borrowers experiencing financial difficulty that had a payment default during the three or six months ended June 30, 2025 and 2024 and that were modified in the twelve months prior.

As of September 30, 2024, the loans were in current status and individually evaluated.

There were no modified loans to borrowers experiencing financial difficulty that had a payment default during the three or nine months ended September 30, 2025 and 2024 and that were modified in the twelve months prior.

Default occurs when a payment is 90 days past due, the loan is fully or partially charged off or the Company forecloses on the collateral.

Consumer Real Estate Loans In Process of Foreclosure

As of June 30, 2025 , the Company had no loans in process of foreclosure.

As of September 30, 2025 , the Company had no consumer real estate loans in process of foreclosure.

As of December 31, 2024 , three consumer real estate loans totaling $ 37 were in process of foreclosure.

ACL for Unfunded Commitments

The following tables present the balance and activity in the ACL for unfunded commitments for the six months ended June 30, 2025 and 2024:

The following tables present the balance and activity in the ACL for unfunded commitments for the nine months ended September 30, 2025 and 2024:

Allowance for Credit Losses on Unfunded Commitments

Balance, December 31, 2024

Recovery of credit losses

Balance, June 30, 2025

Provision for credit losses

Balance, September 30, 2025

Balance, December 31, 2023

1 unchanged sentence

FCB acquisition

Balance, June 30, 2024

Balance, September 30, 2024

The amortized cost and estimated fair value of securities available for sale along with gross unrealized gains and losses as of the dates indicated are summarized as follows:

June 30, 2025

September 30, 2025

government agencies and corporations

12 unchanged sentences

12 Months or More

June 30, 2025

September 30, 2025

government agencies and corporations

13 unchanged sentences

Consideration is given to the extent to which the fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value.

At June 30, 2025, the Company had 537 securities with a fair value of $ 569,718 in an unrealized loss position.

At September 30, 2025, the Company had 534 securities with a fair value of $ 603,882 in an unrealized loss position.

The Company reviews securities in an unrealized loss position to evaluate credit risk.

The Company considers payment history, risk ratings from external parties, financial statements for municipal and corporate securities, public statements from issuers and other available credible published sources in evaluating credit risk.

No credit losses were found and no ACL on securities available for sale was recorded as of June 30, 2025 or December 31, 2024.

No credit losses were identified and no ACL on securities available for sale was recorded as of September 30, 2025 or December 31, 2024.

The unrealized losses are attributed to noncredit-related factors, including changes in interest rates and other market conditions.

The Company does not have the intent to sell any of these securities and believes that it is more likely

than not that the Company will not have to sell any such securities before a recovery of cost.

The Company does not have the intent to sell any of these securities and believes that it is

more likely than not that the Company will not have to sell any such securities before a recovery of cost.

The contractual terms of the investments do not permit the issuers to settle the securities at a price less than the cost basis of the investments.

The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline.

The amortized cost and fair value of securities available for sale at June 30, 2025, by contractual maturity, are shown below.

The amortized cost and fair value of securities available for sale at September 30, 2025, by contractual maturity, are shown below.

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Mortgage-backed securities included in these totals are categorized by final maturity.

June 30, 2025

September 30, 2025

Amortized Cost

5 unchanged sentences

Total securities available for sale

Accrued interest receivable on securities, included in accrued interest receivable on the Consolidated Balance Sheets, totaled $ 3,031 at June 30, 2025 and $ 3,170 at December 31, 2024.

The deferred tax asset for the net unrealized loss on securities available for sale was $ 13,488 as of June 30, 2025 and $ 16,505 as of December 31, 2024.

Accrued interest receivable on securities, included in accrued interest receivable on the Consolidated Balance Sheets, totaled $ 3,320 at September 30, 2025 and $ 3,170 at December 31, 2024.

The deferred tax asset for the net unrealized loss on securities available for sale was $ 11,889 as of September 30, 2025 and $ 16,506 as of December 31, 2024.

The deferred tax asset is included in other assets on the Consolidated Balance Sheets.

Realized Securities Gains and Losses

There were no sales of securities during the six months ended June 30, 2025 and 2024.

There were no sales of securities during the nine months ended September 30, 2025 and 2024.

Restricted Stock.

The Company held restricted stock of $ 1,848 as of June 30, 2025 and December 31, 2024, included in other assets on the Consolidated Balance Sheets.

The Company held restricted stock of $ 3,748 as of September 30, 2025 and $ 1,848 as of December 31, 2024 included in other assets on the Consolidated Balance Sheets.

As a member of the Federal Reserve and the Federal Home Loan Bank of Atlanta (“FHLB”), NBB is required to maintain certain minimum investments in the common stock of those entities.

4 unchanged sentences

At its discretion, the FHLB may declare dividends on the stock.

In addition to dividends, NBB also benefits from its membership with FHLB through eligibility to borrow from the FHLB, using as collateral NBB’s capital stock investment in the FHLB and qualifying NBB real estate mortgage loans totaling $ 502,760 at June 30, 2025.

The Company’s management reviews for impairment based upon the ultimate recoverability of the cost basis of the FHLB stock, and at June 30, 2025 , did not determine any impairment.

The Company’s management reviews for impairment based upon the ultimate recoverability of the cost basis of the FHLB stock, and at September 30, 2025 , did not determine any impairment.

Defined Benefit Plan

The following table presents components of net periodic benefit cost (income) for the periods indicated:

The following table presents components of net periodic benefit income for the periods indicated:

Net Periodic Benefit Income

Three Months Ended June 30,

Three Months Ended September 30,

Interest cost

3 unchanged sentences

Net Periodic Benefit Income

Six Months Ended June 30,

Nine Months Ended September 30,

Interest cost

32 unchanged sentences

Fair Value Measurement Using

June 30, 2025

September 30, 2025

government agencies and corporations

26 unchanged sentences

As such, the Company records any fair value adjustments on a nonrecurring basis.

No nonrecurring fair value adjustments were recorded on loans held for sale at June 30, 2025 or December 31, 2024.

No nonrecurring fair value adjustments were recorded on loans held for sale at September 30, 2025 or December 31, 2024.

Collateral Dependent Loans

11 unchanged sentences

Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3).

As of June 30, 2025 , three commercial real estate loans totaling $ 8,906 were collateral dependent.

As of September 30, 2025 , three commercial real estate loans totaling $ 8,791 were collateral dependent.

Valuation was based upon outside appraisals (Level 2).

6 unchanged sentences

Estimated Fair Value

June 30, 2025

September 30, 2025

Carrying Amount

28 unchanged sentences

Accumulated Other Comprehensive Loss

Balance at March 31, 2024

Unrealized holding loss on available for sale securities, net of

tax of ($ 40 )

Balance at June 30, 2024

Balance at March 31, 2025

Unrealized holding gain on available for sale securities, net of

tax of $ 4,284

Balance at September 30, 2024

Balance at June 30, 2025

Unrealized holding gain on available for sale securities, net of

tax of $ 1,599

Balance at September 30, 2025

Comprehensive

Balance at December 31, 2023

Unrealized holding loss on available for sale securities, net of

Unrealized holding gain on available for sale securities, net of

tax of $ 3,357

Balance at June 30, 2024

Balance at September 30, 2024

Balance at December 31, 2024

1 unchanged sentence

tax of $ 4,616

Balance at June 30, 2025

Balance at September 30, 2025

Revenue Recognition

38 unchanged sentences

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the periods indicated:

Three Months Ended June 30,

Three Months Ended September 30,

Noninterest Income

7 unchanged sentences

Total noninterest income

Six Months Ended June 30,

Nine Months Ended September 30,

Noninterest Income

8 unchanged sentences

(1) Included within other income in the Consolidated Statements of Income

The Company’s leases are recorded under ASC Topic 842, “Leases”.

The Company categorizes leases as short-term, operating or finance leases.

17 unchanged sentences

The following tables present information about leases as of the dates and for the periods indicated:

September 30,

Lease liability

2 unchanged sentences

Weighted average discount rate

For the Three Months Ended June 30,

For the Three Months Ended September 30,

Lease Expense

5 unchanged sentences

during the period

For the Six Months Ended June 30,

For the Nine Months Ended September 30,

Lease Expense

7 unchanged sentences

Undiscounted Cash Flow for the Period

June 30, 2025

Twelve months ending June 30, 2026

Twelve months ending June 30, 2027

Twelve months ending June 30, 2028

Twelve months ending June 30, 2029

Twelve months ending June 30, 2030

September 30, 2025

Twelve months ending September 30, 2026

Twelve months ending September 30, 2027

Twelve months ending September 30, 2028

Twelve months ending September 30, 2029

Twelve months ending September 30, 2030

Total undiscounted cash flows

8 unchanged sentences

The RSAs and RSUs were valued at the closing stock price on the grant date and expensed over a one-year vesting period.

Stock based compensation expense charged against income was $ 51 and $ 94 for the three and six months ended June 30, 2025 and $ 33 and $ 65 for the three and six months ended June 30, 2024.

As of June 30, 2025 , expense of $ 93 related to the nonvested RSAs and RSUs is expected to be recognized over the coming 12 months.

A summary of changes in the Company’s nonvested RSAs under the Plan for the six months ended June 30, 2025 follows:

Stock based compensation expense charged against income was $ 49 and $ 143 for the three and nine months ended September 30, 2025 and $ 28 and $ 93 for the three and nine months ended September 30, 2024.

As of September 30, 2025 , compensation expense of $ 105 related to the nonvested RSAs and RSUs is expected to be recognized over the coming 12 months.

A summary of changes in the Company’s nonvested RSAs under the Plan for the nine months ended September 30, 2025 follows:

Weighted-Average

1 unchanged sentence

Vested and released

Nonvested at June 30, 2025

Net Income (Loss) Per Common Share

The factors used in the computation of net income (loss) per common share for the periods indicated are presented below:

For the Three Months Ended June 30,

Nonvested at September 30, 2025

Net Income Per Common Share

The factors used in the computation of net income per common share for the periods indicated are presented below:

For the Three Months Ended September 30,

Common Shares Weighted Average Outstanding (1) (Denominator)

Basic net income (loss) per common share

Basic net income per

Dilutive shares (1)

Diluted net income (loss) per common share

For the Six Months Ended June 30,

Diluted net income per

For the Nine Months Ended September 30,

Common Shares Weighted Average Outstanding (1) (Denominator)

Basic net income per common share

Basic net income per

Dilutive shares (1)

Diluted net income per common share

Diluted net income per

(1) Dilutive shares are associated with RSAs.

RSAs are disregarded in the computation of diluted net income per share if they are determined to be anti-dilutive.

There were no anti-dilutive RSAs for the three and six months ended June 30, 2025 and the six months ended June 30, 2024 .

RSAs were anti-dilutive for the three months ended June 30, 2024.

There were no anti-dilutive RSAs for the three and nine months ended September 30, 2025 and September 30, 2024 .

Note 12 – Goodwill and Other Intangibles

Core deposit intangible amortization expense was $ 95 and $ 192 for the three and six months ended June 30, 2025 .

Core deposit intangible amortization expense was $ 35 for the three and six months ended June 30, 2024.

The following table provides information on the significant components of goodwill and other acquired intangible assets during the six months ended June 30, 2025.

Core deposit intangible amortization expense was $ 92 and $ 284 for the three and nine months ended September 30, 2025.

Core deposit intangible amortization expense was $ 102 and $ 137 for the three and nine months ended September 30, 2024.

The following table provides information on the significant components of goodwill and other acquired intangible assets during the nine months ended September 30, 2025:

Beginning Balance

3 unchanged sentences

Core deposit intangible

As of June 30, 2025, estimated future remaining amortization of the core deposit intangible within the years ending December 31, is as follows:

As of September 30, 2025, estimated future remaining amortization of the core deposit intangible within the years ending December 31, is as follows:

Amortization Expense

Total amortizing core deposit intangible

Note 13 - Borrowings

During the third quarter of 2025, the Company borrowed $ 40,000 from the Federal Home Loan Bank of Atlanta and $ 10,000 from the Federal Reserve Discount Window.

The borrowings were part of a yield optimization strategy and the proceeds were used to purchase securities.

The borrowings were structured to mirror expected cash flow from the securities portfolio through the end of 2026.

All borrowings mature within the next 12 months and have a weighted average interest rate of 3.99 % .

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

What changed 10-Q

Item 1. Financial Statements