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Item 1. Financial Statements

2026-08-12 compared with 2026-05-13 · 481 added, 386 removed, 422 unchanged (67% of the section changed)

1 unchanged sentence

NEW PEOPLES BANKSHARES, INC.

CONSOLIDATED BALANCE

MARCH 31, 2026 AND DECEMBER 31, 2025

CONSOLIDATED BALANCE SHEETS

JUNE 30, 2026 AND DECEMBER 31, 2025

(IN THOUSANDS EXCEPT PER SHARE AND SHARE

3 unchanged sentences

Total cash and cash equivalents

Investment securities available-for-sale, at fair

Investment securities available-for-sale, at fair value

Restricted stock, at cost

Loans held for sale

Loans receivable

11 unchanged sentences

Accrued interest payable

Accrued expenses and other

Accrued expenses and other liabilities

Total liabilities

1 unchanged sentence

Common stock - $ 2.00 par value;

50,000,000 shares

23,555,517 and 23,567,013 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

50,000,000 shares authorized;

and 23,567,013 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively

Additional paid-in-capital

Retained earnings

Accumulated other comprehensive

Total shareholders’

Total liabilities and shareholders’

The accompanying notes are an integral

part of these consolidated financial statements.

Accumulated other comprehensive loss

Total shareholders’ equity

Total liabilities and shareholders’ equity

The accompanying notes are an integral part

of these consolidated financial statements.

NEW PEOPLES BANKSHARES, INC.

CONSOLIDATED STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31,

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE AND SIX MONTHS ENDED JUNE

30, 2026 AND 2025

1 unchanged sentence

For the Three Months Ended

AND DIVIDEND INCOME

For the Six Months Ended

INTEREST AND DIVIDEND INCOME

Loans including fees

1 unchanged sentence

Interest-earning deposits with banks

Dividends on equity securities

Total interest and dividend

Dividends on equity securities (restricted)

Total interest and dividend income

INTEREST EXPENSE

2 unchanged sentences

NET INTEREST INCOME

FOR CREDIT LOSSES

INCOME AFTER PROVISION FOR CREDIT LOSSES

PROVISION FOR CREDIT LOSSES

INTEREST INCOME AFTER

PROVISION FOR CREDIT

NONINTEREST INCOME

11 unchanged sentences

INCOME BEFORE INCOME TAXES

INCOME TAX EXPENSE

Earnings per share

Basic and diluted

Average Weighted Shares of Common

Average Weighted Shares of Common Stock

Basic and diluted

The accompanying notes are an integral

part of these consolidated financial statements.

The accompanying notes are an integral part

of these consolidated financial statements.

NEW PEOPLES BANKSHARES, INC.

CONSOLIDATED STATEMENTS

OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31,

CONSOLIDATED STATEMENTS OF COMPREHENSIVE

FOR THE THREE AND SIX MONTHS ENDED JUNE

30, 2026 AND 2025

1 unchanged sentence

For the Three Months Ended

For the Six Months Ended

Other comprehensive income (loss):

4 unchanged sentences

TOTAL COMPREHENSIVE INCOME

The accompanying notes are an integral

part of these consolidated financial statements.

The accompanying notes are an integral part

of these consolidated financial statements.

NEW PEOPLES BANKSHARES, INC.

CONSOLIDATED STATEMENTS

OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED MARCH 31,

CONSOLIDATED STATEMENTS OF CHANGES IN

SHAREHOLDERS’ EQUITY

FOR THE THREE AND SIX MONTHS ENDED JUNE

30, 2026 AND 2025

(IN THOUSANDS EXCEPT PER SHARE DATA)

(IN THOUSANDS INCLUDING SHARE DATA)

Comprehensive

Shareholders’

Balance, December 31, 2024

Other comprehensive income, net of tax

Cash dividend declared ($0.08 per share)

Three Months Ended June 30,

Balance, March 31, 2026

Other comprehensive loss, net of tax

Repurchase of common stock

Balance, June 30, 2026

Balance, March 31, 2025

Other comprehensive loss, net of tax

Repurchase of common stock

Balance, June 30, 2025

Six Months Ended

Balance, December 31, 2025

2 unchanged sentences

Repurchase of common stock

Balance, March 31, 2026

The accompanying notes are an integral

part of these consolidated financial statements.

Balance, June 30, 2026

Balance, December 31, 2024

Other comprehensive income, net of tax

Cash dividend declared ($0.08 per share)

Repurchase of common stock

Balance, June 30, 2025

The accompanying notes are an integral part

of these consolidated financial statements.

NEW PEOPLES BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2026

FOR THE SIX MONTHS ENDED JUNE 30, 2026

(IN THOUSANDS)

CASH FLOWS FROM OPERATING ACTIVITIES

Adjustments to reconcile net income to net cash

provided by operating activities:

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

Depreciation and amortization

2 unchanged sentences

Gain on sale or disposal of premises and equipment

Gain on sale of other real estate owned

Loans originated for sale

6 unchanged sentences

Accrued expenses and other liabilities

Net cash provided by operating

Net cash provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

1 unchanged sentence

Purchase of securities available-for-sale

Proceeds from repayments and maturities of securities

available-for-sale

Proceeds from repayments and maturities of securities available-for-sale

Net purchase of equity securities (restricted)

Payments for the purchase of premises and equipment

Payments for the purchase of premises and equipment and software

Proceeds from sale of premises and equipment

Proceeds from sale of other real estate owned

Proceeds from bank owned life

insurance benefit

Net cash used in investing

Proceeds from bank owned life insurance benefit

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Increase in short-term borrowings

Repayment of long-term debt

3 unchanged sentences

Repurchase of common stock

Net cash provided by financing

Net cash provided by financing activities

Net increase in cash and cash equivalents

Cash and cash equivalents,

beginning of the period

Cash and cash equivalents,

end of the period

Supplemental disclosure of cash paid during the

Cash and cash equivalents, beginning of the period

Cash and cash equivalents, end of the period

Supplemental disclosure of cash paid during the period for:

Supplemental disclosure of non-cash transactions:

Change in unrealized losses on securities available-for-sale

Transfer of loans to other real estate owned

Change in unrealized losses on securities available-for-sale

Transfer of loans receivable to loans held for sale

The accompanying

1 unchanged sentence

NEW PEOPLES BANKSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 NATURE OF OPERATIONS

6 unchanged sentences

As a state-chartered member bank, the Bank is subject to regulation by the Virginia

Bureau of Financial Institutions, the Federal Deposit Insurance Corporation and the Board of Governors of the Federal Reserve

System (the Federal Reserve).

The Bank provides general banking services to individuals, small and medium size businesses and

the professional community of southwest Virginia, southern West Virginia, western North Carolina and northeastern Tennessee.

services include commercial and consumer loans along with traditional deposit products such as checking and savings accounts.

Bureau of Financial Institutions, the Federal Deposit Insurance Corporation and the Board of Governors of the Federal Reserve System

(the Federal Reserve).

The Bank provides general banking services to individuals, small and medium-size businesses and the professional

community of southwest Virginia, southern West Virginia, western North Carolina and northeastern Tennessee.

These services include

commercial and consumer loans along with traditional deposit products such as checking and savings accounts.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING

4 unchanged sentences

the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary

to present fairly the Company’s financial position as of March 31, 2026 and December 31, 2025, and the results of operations

for the three-month periods ended March 31, 2026 and 2025.

The Notes included herein should be read in conjunction with the notes

to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December

The results of operations for interim periods are not necessarily indicative of the results of operations that may be

expected for a full year or any future period.

The consolidated financial statements

include New Peoples, the Bank, NPB Insurance Services, Inc., and NPB Web Services, Inc.

(hereinafter, collectively referred to

as the Company, we, us or our).

to present fairly the Company’s financial position as of June 30, 2026 and December 31, 2025, and the results of operations

for the three- and six-month periods ended June 30, 2026 and 2025.

The Notes included herein should be read in conjunction with

the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended

December 31, 2025.

The results of operations for interim periods are not necessarily indicative of the results of operations that

may be expected for a full year or any future period.

The consolidated financial statements include

New Peoples, the Bank, NPB Insurance Services, Inc., and NPB Web Services, Inc.

(hereinafter, collectively referred to as the Company,

we, us or our).

All significant intercompany balances and transactions have been eliminated.

In accordance with

Accounting Standards Codification (ASC) 942, Financial Services – Depository and Lending, NPB Capital Trust I and 2 are

not included in the consolidated financial statements.

In accordance with Accounting Standards

Codification (ASC) 942, Financial Services – Depository and Lending, NPB Capital Trust I and 2 are not included in the consolidated

financial statements.

The preparation of financial statements

14 unchanged sentences

There have been no significant changes to the application of significant accounting policies since December

31, 2025, except for the following:

Loans held for sale – Loans that

management has decided to sell are transferred from loans held for investment to loans held for sale.

Loans held for sale are carried

at the lower of amortized cost or fair value, determined on an individual or aggregate basis, as applicable.

Any amount by which

amortized cost exceeds fair value at the date of transfer, and subsequent changes in the valuation allowance, are recognized in

Loans classified as held for sale are not subject to the Company’s allowance for credit losses methodology applicable

to loans held for investment.

NOTE 3 EARNINGS PER SHARE

Basic earnings per share computations

are based on the weighted average number of shares outstanding during each period.

Basic earnings per share computations are

based on the weighted average number of shares outstanding during each period.

Diluted earnings per share reflect the additional

common shares that would have been outstanding if dilutive potential common shares had been issued.

For the three-month periods

ended March 31, 2026 and 2025, there were no potential common shares.

For the three- and six-month

periods ended June 30, 2026 and 2025, there were no potential common shares.

Basic and diluted net income per common share calculations

Schedule of basic and diluted net loss per common share calculations

(Dollars in thousands, except

per share data)

in thousands, except per share data)

For the three months

ended March 31,

ended June 30,

For the six months

ended June 30,

Weighted average shares outstanding

13 unchanged sentences

Company” under federal regulations, a bank must have consolidated assets of $3.0 billion or less.

The primary benefit of

being deemed a "Small Bank Holding Company" is the exemption from the requirement to maintain consolidated regulatory

capital ratios;

The primary benefit of being

deemed a “Small Bank Holding Company” is the exemption from the requirement to maintain consolidated regulatory capital

instead, regulatory capital ratios only apply at the subsidiary bank level.

2 unchanged sentences

banks (BASEL III rules) became fully phased in on January 1, 2019.

Under the BASEL III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital

the BASEL III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios.

The capital conservation buffer required is 2.50%.

At March 31, 2026, the Bank had a capital conservation buffer of 8.38%.

Amounts recorded to accumulated other comprehensive income (loss) are not included in computing regulatory capital.

believes as of March 31, 2026, the Bank met all capital adequacy requirements to which it was subject.

At June 30, 2026, the Bank had a capital conservation buffer of 8.73%.

recorded to accumulated other comprehensive income (loss) are not included in computing regulatory capital.

Management believes

as of June 30, 2026, the Bank met all capital adequacy requirements to which it was subject.

Prompt corrective action regulations provide

6 unchanged sentences

expansion, and capital restoration plans are required.

At March 31, 2026, the most recent regulatory notifications categorized

the Bank as well capitalized under the regulatory framework for prompt corrective action.

There are no conditions or events since

that notification that management believes have changed the institution's category.

At June 30, 2026, the most recent regulatory notifications categorized the

Bank as well capitalized under the regulatory framework for prompt corrective action.

There are no conditions or events since that

notification that management believes have changed the institution’s category.

The Bank’s actual capital amounts

and ratios are presented in the following table as of March 31, 2026 and December 31, 2025, respectively.

and ratios are presented in the following table as of June 30, 2026 and December 31, 2025, respectively.

Schedule of bank’s

6 unchanged sentences

(Dollars in thousands)

March 31, 2026:

June 30, 2026:

Total capital to risk weighted assets

6 unchanged sentences

Tier 1 capital to average assets

Common equity Tier 1 capital to risk weighted assets

Common equity Tier 1 capital to risk weighted

NOTE 5 INVESTMENT SECURITIES

The amortized cost and estimated fair value of available-for-sale

(“AFS”) securities as of March 31, 2026 and December 31, 2025 are as follows:

(“AFS”) securities as of June 30, 2026 and December 31, 2025 are as follows:

Schedule of securities amortized cost and estimated fair value

(Dollars in thousands)

March 31, 2026

June 30, 2026

Government agencies

2 unchanged sentences

Mortgage-backed securities

Collateralized mortgage obligations

Collateralized mortgage obligations guaranteed

Total securities available-for-sale

4 unchanged sentences

Mortgage-backed securities

Collateralized mortgage obligations

Collateralized mortgage obligations guaranteed

Total securities available-for-sale

2 unchanged sentences

This information is aggregated by the length of time that individual securities

have been in a continuous unrealized loss position as of March 31, 2026 and December 31, 2025.

have been in a continuous unrealized loss position as of June 30, 2026 and December 31, 2025.

Schedule of fair value and gross unrealized losses on investment securities

2 unchanged sentences

in thousands)

March 31, 2026

June 30, 2026

Government agencies

2 unchanged sentences

Mortgage-backed securities

Collateralized mortgage obligations

Collateralized mortgage

obligations guaranteed

December 31, 2025

4 unchanged sentences

Collateralized mortgage obligations

As of March 31, 2026, the available-for-sale

As of June 30, 2026, the available-for-sale

portfolio included 211 investments for which the fair market value was less than amortized cost.

As of December 31, 2025, the

available-for-sale portfolio included 165 investments for which the fair market value was less than amortized cost.

believes that all unrealized losses have resulted from temporary changes in the interest rates and current market conditions and

are not a result of credit deterioration.

Management does not plan to sell, and it is not likely that the Bank will be required

to sell any of the securities referenced in the table above before recovery of their amortized cost.

None of the individual securities

are past due as to principal or interest payments and a number of these securities have explicit or implicit payment guarantees.

The remaining securities have credit ratings at or above that necessary to be considered “bank qualified.”

Investment securities with a carrying

value of $ 31.8 million and $ 32.5 million as of March 31, 2026 and December 31, 2025, respectively, were pledged as collateral

to secure public deposits and for other purposes required or permitted by law.

As of December 31, 2025, the available-for-sale

portfolio included 165 investments for which the fair market value was less than amortized cost.

Management believes that all unrealized

losses have resulted from temporary changes in the interest rates and current market conditions and are not a result of credit

deterioration.

Management does not plan to sell, and it is not likely that the Bank will be required to sell any of the securities

referenced in the table above before recovery of their amortized cost.

None of the individual securities are past due as to principal

or interest payments and a number of these securities have explicit or implicit payment guarantees.

The remaining securities have

credit ratings at or above that necessary to be considered “bank qualified.”

Investment securities with a carrying value

of $ 29.8 million and $ 32.5 million as of June 30, 2026 and December 31, 2025, respectively, were pledged as collateral to secure

public deposits and for other purposes required or permitted by law.

There were no sales of available-for-sale

investment securities during the three months ended March 31, 2026 and 2025.

investment securities during the three or six months ended June 30, 2026 and 2025.

The amortized cost and fair value of investment

securities as of March 31, 2026, by contractual maturity, are shown in the following schedule.

securities as of June 30, 2026, by contractual maturity, are shown in the following schedule.

Expected maturities will differ

12 unchanged sentences

These equity securities

are restricted from trading and are recorded at a cost of $ 2.6 million as of March 31, 2026 and December 31, 2025.

are restricted from trading and are recorded at a cost of $ 2.6 million as of June 30, 2026 and December 31, 2025.

The stock has

no quoted market value and no ready market exists.

When evaluating these securities for impairment, their value is determined

based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value.

Equity securities

are viewed as long-term investments and management believes the Company has the ability and the intent to hold these securities

until their value is recovered.

Loans receivable outstanding as of March

When evaluating these securities for impairment, their value is determined based

on the ultimate recoverability of the par value rather than by recognizing temporary declines in value.

Equity securities are viewed

as long-term investments and management believes the Company has the ability and the intent to hold these securities until their

value is recovered.

Loans receivable outstanding as of June

30, 2026, and December 31, 2025, are summarized as follows:

5 unchanged sentences

Total real estate loans

Consumer installment and all

Consumer installment and all other loans

Also included in total loans above are

deferred loan fees of $ 2.2 million as of March 31, 2026 and December 31, 2025.

Deferred loan costs were $ 1.9 million and $ 2.1

million, as of March 31, 2026 and December 31, 2025, respectively.

Income from net deferred fees and costs is recognized over

the lives of the respective loans as a yield adjustment.

If loans repay prior to scheduled maturities any unamortized fee or costs

is recognized at that time.

Loans receivable on nonaccrual status

as of March 31, 2026, and December 31, 2025, are summarized as follows:

deferred loan fees of $ 2.3 million and $ 2.2 million as of June 30, 2026 and December 31, 2025, respectively.

Deferred loan costs

were $ 2.1 million as of June 30, 2026 and December 31, 2025.

Income from net deferred fees and costs is recognized over the lives

of the respective loans as a yield adjustment.

If loans repay prior to scheduled maturities, any unamortized fees or costs are

recognized at that time.

During the second quarter of 2026, the

Company transferred its $1.3 million credit card portfolio from loans held for investment to loans held for sale based on management’s

decision to sell the portfolio.

The loans were transferred at the lower of amortized cost or fair value, determined on an aggregate

basis which resulted in no fair value writedown at the date of transfer.

The sale of the portfolio is not expected to be finalized

Loans receivable on nonaccrual status as

of June 30, 2026, and December 31, 2025, are summarized as follows:

of loans receivable nonaccrual status

March 31, 2026

June 30, 2026

December 31, 2025

With No Allowance

With an Allowance

With No Allowance

With an Allowance

(Dollars in thousands)

3 unchanged sentences

Total real estate loans

Consumer installment loans

and all other loans

Total loans receivable on

nonaccrual status

Total interest income not recognized on

nonaccrual loans for the three months ended March 31, 2026 and March 31, 2025, was $ 38,000 .

Consumer installment loans and other loans

Total loans receivable on nonaccrual status

The Company evaluates loans that do not

1 unchanged sentence

The following table

presents the unpaid principal balance of collateral dependent loans, which are individually evaluated to determine expected credit

losses, and the related ACL allocated to those loans as March 31, 2026 and December 31, 2025:

presents the unpaid principal balance of individually evaluated loans, by measurement method, and the related ACL allocated to

those loans as of June 30, 2026 and December 31, 2025:

of summary of impaired loans

March 31, 2026

June 30, 2026

December 31, 2025

(Dollars in thousands)

Collateral Dependent Loans

Real estate secured:

1 unchanged sentence

Total real estate loans

Consumer installment loans

and other loans

Total collateral dependent

Discounted Cash Flow Method

Total DCF method

Total individually evaluated

During the second quarter of 2026, the

Company began individually evaluating one agriculture loan relationship using the discounted cash flow method rather than the fair

value of collateral.

The borrower has ceased making payments and has filed for bankruptcy protection, and repayment is expected

to occur through payments under the borrower’s bankruptcy plan over an extended period rather than through the operation or sale

of collateral.

Expected credit losses on this loan were measured as the difference between the loan’s amortized cost basis and

the present value of estimated future cash flows, discounted at the loan’s effective interest rate.

As of June 30, 2026, the loan

had an unpaid principal balance of approximately $437,000, net of a $50,000 charge-off recorded during the prior year, and a related

specific allowance for credit losses of approximately $91,000.

The following table is an age analysis

of past due loans receivable as of March 31, 2026, segregated by class:

of past due loans receivable as of June 30, 2026, segregated by class:

Schedule of analysis of past due loans receivable

March 31, 2026

in thousands)

(Dollars in thousands)

Real estate secured:

2 unchanged sentences

Total real estate loans

Consumer installment and all

Consumer installment and all other loans

The following table is an age analysis of past due loans receivable

33 unchanged sentences

questionable and improbable.

The following table presents the credit risk grade of loans by origination year as of March 31, 2026:

The following table presents the credit risk grade of loans

by origination year as of June 30, 2026:

Schedule of credit risk grade of loans

As of March 31, 2026

(Dollars in thousands)

As of June 30, 2026

in thousands)

Commercial real estate

19 unchanged sentences

Current period gross charge-offs

Consumer Installment Loans

Total consumer installment loans

Consumer and all other

Total consumer and all other

Current period gross charge-offs

9 unchanged sentences

period gross charge-offs

SpecialMention

residential 1-4 family

1 unchanged sentence

period gross charge-offs

SpecialMention

period gross charge-offs

SpecialMention

period gross charge-offs

SpecialMention

period gross charge-offs

4 unchanged sentences

7 ALLOWANCE FOR CREDIT LOSSES FOR LOANS (“ACLL”)

determining the amount of our allowance for credit losses, we rely on an analysis of our loan portfolio, our experience and our evaluation

of general economic conditions.

If our assumptions prove to be incorrect, our current allowance may not be sufficient to cover future

loan losses and we may experience significant increases to our provision.

following table presents a disaggregated analysis of activity in the allowance for credit losses for loans as of March 31, 2026 and December

determining the amount of our allowance for credit losses, we rely on an analysis of our loan portfolio, our experience and our

evaluation of general economic conditions.

If our assumptions prove to be incorrect, our current allowance may not be sufficient

to cover future loan losses and we may experience significant increases to our provision.

following table presents a disaggregated analysis of activity in the allowance for credit losses for loans as of June 30, 2026

and June 30, 2025:

of allowance for credit losses for loans

estate secured

are in thousands)

months ended March 31, 2026

for credit losses

estate secured

are in thousands)

ended December 31, 2025

for credit losses

Real estate secured

(Dollars are in thousands)

Commercial RE

Construction and Land Development

Residential 1-4 family

and All Other

Three months ended June 30, 2026

Beginning balance

Provision for credit losses

Ending balance

Real estate secured

(Dollars are in thousands)

Commercial RE

Construction and Land Development

and All Other

Three months ended June 30, 2025

Beginning balance

Provision for credit losses

Ending balance

Real estate secured

(Dollars are in thousands)

Commercial RE

Construction and Land Development

and All Other

Six months ended June 30, 2026

Beginning balance

Provision for credit losses

Ending balance

Real estate secured

(Dollars are in thousands)

Commercial RE

Construction and Land Development

and All Other

Six months ended June 30, 2025

Beginning balance

Provision for credit losses

Ending balance

of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

1 unchanged sentence

assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.

Because the effect of most

modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the

measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon

modification.

Occasionally, the Company modifies loans by providing principal forgiveness on certain of its real estate loans.

When principal

forgiveness is provided, the amount of the principal forgiveness is deemed to be uncollectible;

therefore, that portion of the loan is

written off, against the allowance for credit losses, resulting in a reduction of the amortized cost basis and a corresponding adjustment

to the allowance for credit losses.

Because the effect

of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses

because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally

not recorded upon modification.

Occasionally, the Company modifies loans by providing principal forgiveness on certain of its

real estate loans.

When principal forgiveness is provided, the amount of the principal forgiveness is deemed to be uncollectible;

therefore, that portion of the loan is written off against the allowance for credit losses, resulting in a reduction of the amortized

cost basis and a corresponding adjustment to the allowance for credit losses.

some cases, the Company will modify a certain loan by providing multiple types of concessions.

Typically, one type of concession, such

as a term extension, is granted initially.

If the borrower continues to experience financial difficulty, another concession, such as

principal forgiveness, may be granted.

February 15, 2025, severe flash flooding occurred in Tazewell and Buchanan, Counties Virgina.

On September 27, 2024, Hurricane Helene

passed through western North Carolina, southwest Virginia and northeast Tennessee, causing flood and wind damage in its path.

borrowers impacted by these natural disasters, we offered short-term payment deferrals of 3 to 6 months.

As of March 31, 2026, 43 loans

totaling $ 6.3 million

are participating in the deferral program.

One loan totaling $ 13,000

was in default, and another loan totaling $ 178,000

was extended beyond the terms of the short-term deferral program.

As of December 31, 2025, 48 loans totaling $ 6.6

million were participating in the deferral program.

these loans, a residential mortgage loan totaling $ 178,000 ,

received an additional 3-month deferral, due to the extent of damage to the property.

There were no loans modified to borrowers experiencing

financial difficulties in the three-month period ended March 31, 2026, other than those impacted by the natural disasters.

Typically, one type of concession,

such as a term extension, is granted initially.

If the borrower continues to experience financial difficulty, another concession,

such as principal forgiveness, may be granted.

February 15, 2025, severe flash flooding occurred in Tazewell and Buchanan, Counties in Virginia.

On September 27, 2024, Hurricane

Helene passed through western North Carolina, southwest Virginia and northeast Tennessee, causing flood and wind damage in its

To assist borrowers impacted by these natural disasters, we offered short-term payment deferrals of 3 to 6 months.

June 30, 2026, the deferral periods have ended, and 42 loans totaling $ 6.3 million that participated in the deferral program have

commenced regular payments.

As of December 31, 2025, 48 loans totaling $ 6.6 million were participating in the deferral program.

One of these loans, a residential mortgage loan totaling $ 178,000 , received an additional 3-month deferral, due to the extent

of damage to the property.

The loan was settled in 2026.

There were no loans modified to borrowers experiencing financial difficulties

in the three and six-months ended June 30, 2026.

9 CREDIT ALLOWANCE FOR UNFUNDED COMMITMENTS

1 unchanged sentence

which is included in other liabilities on the consolidated balance sheet.

The allowance for credit losses for off-balance-sheet credit

exposures is adjusted through a provision for credit losses in the income statement.

The estimate includes consideration of the likelihood

that funding will occur and an estimate of expected credit losses on commitments expected to be funded over their estimated lives, utilizing

the same models and approaches for the Company’s other loan portfolio segments described above, as these unfunded commitments share

similar risk characteristics as its loan portfolio segments.

The Company has identified the unfunded portion of certain lines of credit

as unconditionally cancellable credit exposures, meaning the Company can cancel the unfunded commitment at any time, and those commitments

are excluded from the credit loss estimate.

of March 31, 2026 and December 31, 2025, the liability for credit losses on off-balance-sheet credit exposures included in other liabilities

was $ 460,000 and

respectively.

During the three months ended March 31, 2026, a negative provision of $ 11,000

was included in the Provision for Credit Losses.

The allowance for credit losses for off-balance-sheet

credit exposures is adjusted through a provision for credit losses in the income statement.

The estimate includes consideration

of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over

their estimated lives, utilizing the same models and approaches for the Company’s other loan portfolio segments described

above, as these unfunded commitments share similar risk characteristics as its loan portfolio segments.

The Company has identified

the unfunded portion of certain lines of credit as unconditionally cancellable credit exposures, meaning the Company can cancel

the unfunded commitment at any time, and those commitments are excluded from the credit loss estimate.

of June 30, 2026 and December 31, 2025, the liability for credit losses on off-balance-sheet credit exposures included in other

liabilities was $ 455,000 and $ 471,000 , respectively.

During the three and six months ended June 30, 2026, a recovery of losses

on unfunded commitments of $ 5,000 and $ 16,000 , respectively, was included in the Provision for Credit Losses.

During the three

and six months ended June 30, 2025, a provision for losses on unfunded commitments of $ 0 and $ 92,000 , respectively, was included

in the Provision for Credit Losses.

10 OTHER REAL ESTATE OWNED

following table summarizes the activity in other real estate owned for the three months ended March 31, 2026, and the year ended December

following table summarizes the activity in other real estate owned for the six months ended June 30, 2026, and the year ended

December 31, 2025:

of activity in other real estate owned

in thousands)

Balance, beginning

gains from sales

end of period

of March 31, 2026 one loan secured by residential real estate, totaling $95,000 was in the process of foreclosure.

(Dollars in thousands)

Balance, beginning of period

Proceeds from sales

Net gains from sales

Balance, end of period

of June 30, 2026 three loans secured by residential real estate, totaling $286,000 were in the process of foreclosure.

11 FAIR VALUES

Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures.

In accordance with the Fair Value Measurements and Disclosures topic of Financial Accounting Standards Board (the FASB) ASC, the fair

value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability (an exit price)

in the principal or most advantageous market and in an orderly transaction between market participants at the measurement date.

value is best determined based upon quoted market prices.

However, in many instances, there are no quoted market prices for the Company’s

various financial instruments.

In cases where quoted market prices are not available, fair values are based on estimates using present

value or other valuation techniques.

Those techniques are significantly affected by the assumptions used, including the discount rate

and estimates of future cash flows.

Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair

value disclosures.

In accordance with the Fair Value Measurements and Disclosures topic of Financial Accounting Standards Board

(the FASB) ASC, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer

a liability (an exit price) in the principal or most advantageous market and in an orderly transaction between market participants

at the measurement date.

Fair value is best determined based upon quoted market prices.

However, in many instances, there are

no quoted market prices for the Company’s various financial instruments.

In cases where quoted market prices are not available,

fair values are based on estimates using present value or other valuation techniques.

Those techniques are significantly affected

by the assumptions used, including the discount rate and estimates of future cash flows.

Accordingly, the fair value estimates

may not be realized in an immediate settlement of the instrument.

fair value guidance provides a consistent definition of fair value, which focuses on exit price in the principal or most advantageous

market and in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement

date under current market conditions.

If there has been a significant decrease in the volume and level of activity for the asset or liability,

a change in valuation technique or the use of multiple valuation techniques may be appropriate.

In such instances, determining the price

at which willing market participants would transact at the measurement date under current market conditions depends on the facts and

circumstances and requires the use of significant judgment.

The fair value is a reasonable point within the range that is most representative

of fair value under current market conditions.

accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in

three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine

market and in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the

measurement date under current market conditions.

If there has been a significant decrease in the volume and level of activity

for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate.

such instances, determining the price at which willing market participants would transact at the measurement date under current

market conditions depends on the facts and circumstances and requires the use of significant judgment.

The fair value is a reasonable

point within the range that is most representative of fair value under current market conditions.

accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value

in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used

to determine fair value.

Quoted prices are available in active markets for identical assets or liabilities as of the reported date.

Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported

The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and

items that are valued using other financial instruments, the parameters of which can be directly observed.

Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the

reported date.

The nature of these assets and liabilities include items for which quoted prices are available but traded less

frequently, and items that are valued using other financial instruments, the parameters of which can be directly observed.

Assets and liabilities that have little to no pricing observability as of the reported date.

These items do not have two-way markets

and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require

significant management judgment or estimation.

description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such

instruments pursuant to the valuation hierarchy are as follows:

These items do not have two-way

markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair

value require significant management judgment or estimation.

description of the valuation methodologies used for instruments measured at fair value, as well as the general classification

of such instruments pursuant to the valuation hierarchy are as follows:

Securities Available-for-sale - Investment securities AFS are recorded at fair value on a recurring basis.

Fair value measurement is

based upon quoted prices.

The Company’s AFS securities, totaling $96.9 million and $96.4 million as of March 31, 2026 and December

31, 2025, respectively, are the only assets whose fair values are measured on a recurring basis using Level 2 inputs from an independent

pricing service.

Fair value measurement

is based upon quoted prices.

The Company’s AFS securities, totaling $98.6 million and $96.4 million as of June 30, 2026

and December 31, 2025, respectively, are the only assets whose fair values are measured on a recurring basis using Level 2 inputs

from an independent pricing service.

Dependent Loans with an ACL - In accordance with ASC 326, we may determine that an individual loan exhibits unique risk characteristics

which differentiate it from other loans within our loan pools.

In such cases, the loans are evaluated for expected credit losses on an

individual basis and excluded from the collective evaluation.

Specific allocations of the allowance for credit losses are determined

by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic

conditions affecting the borrower’s industry, among other things.

A loan is considered to be collateral dependent when, based upon

management’s assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially

through the operation or sale of the collateral.

In such cases, expected credit losses are based on the fair value of the collateral

at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral.

We reevaluate

the fair value of collateral supporting collateral dependent loans on a quarterly basis.

The fair value of real estate collateral supporting

collateral dependent loans is evaluated by appraisal services using a methodology that is consistent with the Uniform Standards of Professional

Appraisal Practice.

Real Estate Owned –Other real estate owned is adjusted to fair value upon transfer of the loans, or former bank premises, to other

real estate owned.

In such cases, the loans are evaluated for expected credit losses

on an individual basis and excluded from the collective evaluation.

Specific allocations of the allowance for credit losses are

determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of

the loan and economic conditions affecting the borrower’s industry, among other things.

A loan is considered to be collateral

dependent when, based upon management’s assessment, the borrower is experiencing financial difficulty and repayment is expected

to be provided substantially through the operation or sale of the collateral.

In such cases, expected credit losses are based

on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan

depends on the sale of the collateral.

We reevaluate the fair value of collateral supporting collateral dependent loans on a quarterly

The fair value of real estate collateral supporting collateral dependent loans is evaluated by appraisal services using

a methodology that is consistent with the Uniform Standards of Professional Appraisal Practice.

Real Estate Owned –Other real estate owned is adjusted to fair value upon transfer of the loans, or former bank premises,

to other real estate owned.

These assets are carried at the lower of their carrying value or fair value.

Fair value is based upon observable market

prices, when available, reduced by estimated disposition costs, which the Company considers to be nonrecurring Level 2 inputs.

When observable

market prices are not available, management determines the fair value of the foreclosed asset using independent third-party appraisals,

evaluated to determine whether or not the property is further impaired below the appraised value, and adjusts for estimated costs of

Fair value is based upon

observable market prices, when available, reduced by estimated disposition costs, which the Company considers to be nonrecurring

Level 2 inputs.

When observable market prices are not available, management determines the fair value of the foreclosed asset

using independent third-party appraisals, evaluated to determine whether or not the property is further impaired below the appraised

value, and adjusts for estimated costs of disposition.

The Company records foreclosed assets as nonrecurring Level 3.

and liabilities measured at fair value are as follows as of March 31, 2026 and December 31, 2025:

and liabilities measured at fair value are as follows as of June 30, 2026 and December 31, 2025:

Schedule of summary of assets

and liabilities measured at fair value

(Dollars in thousands)

price in active

observable inputs

June 30, 2026

in thousands)

Quoted market price in active markets

Significant other observable inputs

Significant unobservable inputs

(On a recurring basis)

1 unchanged sentence

Government agencies

Mortgage-backed

Collateralized

mortgage obligations -guaranteed

non-recurring basis)

Corporate bonds

Municipal securities

Mortgage-backed securities

Collateralized mortgage obligations – guaranteed

(On a non-recurring basis)

Other real estate owned

(Dollars in thousands)

price in active

observable inputs

Collateral dependent loans with ACL:

Residential 1-4 Family

December 31, 2025

in thousands)

Quoted market price in active markets

Significant other observable inputs

Significant unobservable inputs

(On a recurring basis)

1 unchanged sentence

Government agencies

Mortgage-backed

Collateralized

mortgage obligations - guaranteed

Corporate bonds

Municipal securities

Mortgage-backed securities

Collateralized mortgage obligations – guaranteed

(On a non-recurring basis)

Other real estate owned

Collateral dependent loans

included in the tables above as of March 31, 2026 and December 31, 2025 is a residential 1-4 family mortgage loan totaling approximately

that has a specific allowance for credit loss allocation of

100% due to the destruction of the collateral.

Level 3 assets measured at fair value on a recurring or non-recurring basis as of March 31, 2026 and December 31, 2025, the significant

Collateral dependent loans with ACL:

Commercial real estate

included in the tables above as December 31, 2025 is a residential 1-4 family mortgage loan totaling $ 39,000 that had a specific

allowance for credit loss allocation of 100% and was settled during the first six months of 2026.

Level 3 assets measured at fair value on a recurring or non-recurring basis as of June 30, 2026 and December 31, 2025, the significant

unobservable inputs used in the fair value measurements were as follows:

2 unchanged sentences

in thousands)

Value at June 30, 2026

Unobservable Inputs

of Significant

Range of Significant Unobservable Input Values

dependent loans with ACL:

to reflect current market conditions, ultimate collectability, and estimated costs to sell

Commercial Real Estate

to reflect current market conditions, ultimate collectability, and estimated costs to sell

Consumer and all other

Value/Other estimates from Independent Sources

to reflect current market conditions, ultimate collectability, and estimated costs to sell

Other Real Estate Owned

Real Estate Owned

Value/Comparable Sales/Other Estimates from Independent Sources

3 unchanged sentences

the value is based upon the characteristics of the instruments and relevant market information.

Financial instruments include cash, evidence

of ownership in an entity, or contracts that convey or impose on an entity that contractual right or obligation to either receive or

deliver cash for another financial instrument.

following summary presents the methodologies and assumptions used to estimate the fair value of the Company’s financial instruments

presented below.

The information used to determine fair value is highly subjective and judgmental in nature and, therefore, the results

may not be precise.

Subjective factors include, among other things, estimates of cash flows, risk characteristics, credit quality, and

interest rates, all of which are subject to change.

Since the fair value is estimated as of the balance sheet date, the amounts that

will actually be realized or paid upon settlement or maturity on these various instruments could be significantly different.

carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair

value on a recurring basis as of March 31, 2026, and December 31, 2025, are as follows:

Financial instruments include

cash, evidence of ownership in an entity, or contracts that convey or impose on an entity that contractual right or obligation

to either receive or deliver cash for another financial instrument.

following summary presents the methodologies and assumptions used to estimate the fair value of the Company’s financial

instruments presented below.

The information used to determine fair value is highly subjective and judgmental in nature and, therefore,

the results may not be precise.

Subjective factors include, among other things, estimates of cash flows, risk characteristics,

credit quality, and interest rates, all of which are subject to change.

Since the fair value is estimated as of the balance sheet

date, the amounts that will actually be realized or paid upon settlement or maturity on these various instruments could be significantly

carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at

fair value on a recurring basis as of June 30, 2026, and December 31, 2025, are as follows:

of estimated fair value of financial instruments

Value Measurements

in thousands)

Financial instruments –

value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument.

These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire

holdings of a particular financial instrument.

Because no market exists for a significant portion of the Company’s financial instruments,

fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics

of various financial instruments and other factors.

These estimates are subjective in nature and involve uncertainties and matters of

significant judgment and therefore cannot be determined with precision.

Changes in assumptions can significantly affect the estimates.

fair values have been determined by the Company using historical data, as generally provided in the Company’s regulatory reports,

and an estimation methodology suitable for each category of financial instruments.

The Company’s fair value estimates, methods

and assumptions are set forth below for the Company’s other financial instruments.

Fair Value Measurements

(Dollars in thousands)

Quoted market price in active markets

Significant other observable inputs

Significant unobservable inputs

June 30, 2026

Financial instruments – assets

Loans held for sale

Financial instruments – liabilities

Time deposits

Borrowed funds

December 31, 2025

Financial instruments – assets

Financial instruments – liabilities

Time deposits

Borrowed funds

value estimates are made at a specific point in time, based on relevant market information and information about the financial

These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s

entire holdings of a particular financial instrument.

Because no market exists for a significant portion of the Company’s

financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic

conditions, risk characteristics of various financial instruments and other factors.

These estimates are subjective in nature

and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision.

Changes in assumptions

can significantly affect the estimates.

fair values have been determined by the Company using historical data, as generally provided in the Company’s regulatory

reports, and an estimation methodology suitable for each category of financial instruments.

The Company’s fair value estimates,

methods and assumptions are set forth below for the Company’s other financial instruments.

carrying values of cash and due from banks, federal funds sold, deposits with no stated maturities, and accrued interest approximates

fair value and are excluded from the table above.

methods utilized to measure the fair value of financial instruments represent an approximation of exit price;

however, an actual exit

price may differ.

12 LEASING ACTIVITIES

of March 31, 2026, the Bank leases four branch offices, one administrative office, one loan production office and sublets a lot adjacent

to another branch office.

of June 30, 2026, the Bank leases four branch offices, one administrative office, one loan production office and sublets a lot

adjacent to another branch office.

The lease agreements have maturity dates ranging from 2028 to December 2041.

It is assumed that there are currently

no circumstances in which the leases would be terminated prior to expiration.

The weighted average remaining life of the lease terms

as of March 31, 2026 was 6.07

discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate which corresponded to

the lease term for each transaction.

It is assumed

that there are currently no circumstances in which the leases would be terminated prior to expiration.

The weighted average remaining

life of the lease terms as of June 30, 2026 was 5.85 years.

discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate which corresponded

to the lease term for each transaction.

This methodology is expected to be used for any other subsequent lease agreements.

average discount rate for the leases as of March 31, 2026 was 3.35 %.

the three months ended March 31, 2026 and 2025, operating lease expenses were $ 147,000

and $ 142,000 ,

weighted average discount rate for the leases as of June 30, 2026 was 3.34 %.

the three and six months ended June 30, 2026 and 2025, operating lease expenses were $ 148,000 and $ 295,000 ;

and $ 145,000 and $ 288,000 ,

respectively.

Company’s other operating leases were evaluated and determined to be immaterial to the financial statements.

As of March 31, 2026,

future minimum rental commitments under the non-cancellable operating leases discussed above are as follows (dollars are in thousands):

30, 2026, future minimum rental commitments under the non-cancellable operating leases discussed above are as follows (dollars

are in thousands):

of future minimum rental commitments under the non-cancellable operating leases

2 unchanged sentences

13 BORROWED FUNDS

funds totaled $ 18,986,000 as

of March 31, 2026 and December 31, 2025.

For additional information on borrowed funds, refer to Note 19 in Item 8 of Form 10-K for the

year ended December 31, 2025.

funds totaled $ 18,986 and $ 18,986 as of June 30, 2026 and December 31, 2025, respectively.

For additional information on borrowed

funds, refer to Note 19 in Item 8 of Form 10-K for the year ended December 31, 2025.

14 REVENUE FROM CONTRACTS WITH CUSTOMERS

our revenue from contracts with customers as defined in ASC 606 is recognized within noninterest income.

Refer to Note 25 in our Annual

Report on Form 10-K for the year ended December 31, 2025 for a description of how each revenue stream is accounted for under ASC 606.

The following table presents noninterest income by revenue stream for the three months ended March 31, 2026 and 2025:

Refer to Note 25 in our

Annual Report on Form 10-K for the year ended December 31, 2025 for a description of how each revenue stream is accounted for

under ASC 606.

The following table presents noninterest income by revenue stream for the three and six months ended June 30, 2026

of revenue from contracts with customers

the three months ended

in thousands)

Service charges

Card processing and interchange

For the three months ended

For the six months ended

(Dollars in thousands)

Service charges and fees

Card processing and interchange income

Financial services fees

noninterest income

Other noninterest income

Total noninterest income

15 NONINTEREST EXPENSES

1 unchanged sentence

of noninterest expenses

the three months ended

in thousands)

Other operating

For the three months ended

For the six months ended

(Dollars in thousands)

Other operating expenses

ATM network expense

Legal, accounting, and

professional fees

FDIC insurance premiums

Legal, accounting, and professional fees

Loan related expenses

FDIC insurance premiums

Consulting fees

Printing and supplies

real estate owned expenses, net

other operating expenses

Other real estate owned expenses, net

Total other operating expenses

16 RECENT ACCOUNTING DEVELOPMENTS

2 unchanged sentences

Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses.” ASU 2024-03 requires

public companies to disclose, in the notes to the financial statements, specific information about certain costs and expenses at each

interim and annual reporting period.

This includes disclosing amounts related to employee compensation, depreciation, and intangible

asset amortization.

In addition, public companies will need to provide qualitative description of the amounts remaining in relevant expense

captions that are not separately disaggregated quantitatively.

The FASB subsequently issued ASU 2025-01, “Income Statement—Reporting

Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Clarifying the Effective Date”, which amends the

effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in ASU 2024-03 in annual

reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15,

Disaggregation of Income Statement Expenses.” ASU 2024-03

requires public companies to disclose, in the notes to the financial statements, specific information about certain costs and

expenses at each interim and annual reporting period.

This includes disclosing amounts related to employee compensation, depreciation,

and intangible asset amortization.

In addition, public companies will need to provide qualitative description of the amounts remaining

in relevant expense captions that are not separately disaggregated quantitatively.

The FASB subsequently issued ASU 2025-01, “Income

Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Clarifying the Effective

Date”, which amends the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt

the guidance in ASU 2024-03 in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting

periods beginning after December 15, 2027.

Early adoption of ASU 2024-03 is permitted.

Implementation of ASU 2024-03 may be applied prospectively or retrospectively.

Company does not expect the adoption of ASU 2024-03 to have a material impact on its consolidated financial statements.

accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material

impact on the Company’s financial position, results of operations or cash flows.

Implementation of ASU 2024-03 may be applied

prospectively or retrospectively.

The Company does not expect the adoption of ASU 2024-03 to have a material impact on its consolidated

financial statements.

accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have

a material impact on the Company’s financial position, results of operations or cash flows.

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