What changed in this filing

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Item 1. Financial Statements

2025-11-04 compared with 2025-08-05 · 180 added, 136 removed, 741 unchanged (30% of the section changed)

2 unchanged sentences

Consolidated Balance Sheets

June 30, 2025 and December 31, 2024

September 30, 2025 and December 31, 2024

(Dollars in thousands)

September 30,

Cash and due from banks

23 unchanged sentences

Preferred stock, no par value;

5,000,000 shares;

authorized 5,000,000 shares;

no shares issued and outstanding

Common stock, no par value;

20,000,000 shares;

issued and outstanding 5,459,441 shares

at June 30, 2025 and 5,457,646 shares at December 31, 2024

authorized 20,000,000 shares;

issued and outstanding 5,459,441 shares at September 30, 2025 and 5,457,646 shares at December 31, 2024

Common stock held by deferred compensation trust, at cost;

shares at June 30, 2025 and 158,580 shares at December 31, 2024

150,423 shares at September 30, 2025 and 158,580 shares at December 31, 2024

Deferred compensation

6 unchanged sentences

Consolidated Statements of Earnings

Three and Six Months Ended June 30, 2025 and 2024

Three and Nine Months Ended September 30, 2025 and 2024

(Dollars in thousands, except per share amounts)

Three months ended

Six months ended

Nine months ended

September 30,

Interest income:

38 unchanged sentences

Consolidated Statements of Comprehensive Income

Three and Six Months Ended June 30, 2025 and 2024

Three and Nine Months Ended September 30, 2025 and 2024

(Dollars in thousands)

Three months ended

Six months ended

Other comprehensive income (loss):

Unrealized holding gains (losses) on securities

available for sale

Reclassification adjustment for losses on

securities available for sale

included in net earnings

Total other comprehensive income (loss),

before income taxes

Income tax expense (benefit) related to other

comprehensive income:

Unrealized holding gains (losses) on securities

available for sale

Reclassification adjustment for losses on

on securities available for sale

included in net earnings

Total income tax expense (benefit) related to

Nine months ended

September 30,

Other comprehensive income:

Total other comprehensive income (loss),

Unrealized holding gains on securities available for sale

Reclassification adjustment for (gains) losses on securities available for sale included in net earnings

Total other comprehensive income, before income taxes

Income tax expense related to other comprehensive income:

Unrealized holding gains on securities available for sale

Reclassification adjustment for (gains) losses on on securities available for sale included in net earnings

Total income tax expense related to other comprehensive income

Total other comprehensive income, net of tax

Total comprehensive income

2 unchanged sentences

Consolidated Statements of Changes in Shareholders' Equity

Three and Six Months Ended June 30, 2025 and 2024

Three and Nine Months Ended September 30, 2025 and 2024

(Dollars in thousands)

2 unchanged sentences

Restricted stock units vested

Cash dividends declared on

Cash dividends declared on common stock

Equity incentive plan, net

2 unchanged sentences

Balance, March 31, 2025

Cash dividends declared on

Cash dividends declared on common stock

Equity incentive plan, net

1 unchanged sentence

Balance, June 30, 2025

Cash dividends declared on common stock

Equity incentive plan, net

Other comprehensive income

Balance, September 30, 2025

Balance, December 31, 2023

Common stock repurchase

Cash dividends declared on

Cash dividends declared on common stock

Equity incentive plan, net

1 unchanged sentence

Balance, March 31, 2024

Cash dividends declared on

Restricted stock units issued

Cash dividends declared on common stock

Restricted stock units vested

Equity incentive plan, net

1 unchanged sentence

Balance, June 30, 2024

Cash dividends declared on common stock

Equity incentive plan, net

Change in accumulated other comprehensive income, net of tax

Balance, September 30, 2024

See accompanying Notes to Consolidated Financial Statements.

1 unchanged sentence

Consolidated Statements of Cash Flows

Six Months Ended June 30, 2025 and 2024

Nine Months Ended September 30, 2025 and 2024

(Dollars in thousands)

6 unchanged sentences

Gain on sale of held for mortgage loans

Loss on sale of investment securities net

(Gain)/loss on sale of investment securities net

Write-down of premises and equipment

10 unchanged sentences

Purchases of investment securities available for sale

Proceeds from calls and maturities of investment securities

available for sale

Proceeds from calls and maturities of investment securities available for sale

Proceeds from sales of investment securities available for sale

6 unchanged sentences

Proceeds from sale of other real estate and repossessions

Net cash provided (used) by investing activities

Net cash used by investing activities

Cash flows from financing activities:

10 unchanged sentences

Consolidated Statements of Cash Flows, continued

Six Months Ended June 30, 2025 and 2024

Nine Months Ended September 30, 2025 and 2024

(Dollars in thousands)

2 unchanged sentences

Noncash investing and financing activities:

Change in unrealized loss on investment securities

available for sale, net

Change in unrealized loss on investment securities available for sale, net

Initial recognition of lease right-of-use asset and lease liability

23 unchanged sentences

Recent Accounting Pronouncements

The following table provides a summary of Accounting Standards Updates (“ASU’s”) issued by the Financial Accounting Standards Board (“FASB”) that the Company has not adopted as of June 30, 2025, which may impact the Company’s financial statements.

The following table provides a summary of Accounting Standards Updates (“ASU’s”) issued by the Financial Accounting Standards Board (“FASB”) that the Company has not adopted as of September 30, 2025, which may impact the Company’s financial statements.

Effective Date

Effect on Financial Statements or Other Significant Matters

ASU 2023-09 Income Taxes (Topic 740)

The ASU provides amendments to improve the transparency

of income tax disclosures.

Annual reporting periods after December 15, 2024.

The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position.

The adoption of this guidance is expected to have an immaterial impact on disclosures.

ASU 2024-03—Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)

13 unchanged sentences

The Company’s only component of other comprehensive income is unrealized gains and losses, net of income tax, on investment securities available for sale.

The following table presents the changes in accumulated other comprehensive loss for the three and six months ended June 30, 2025 and 2024:

The following table presents the changes in accumulated other comprehensive loss for the three and nine months ended September 30, 2025 and 2024:

For the three months ended

For the six months ended

For the nine months ended

(dollars in thousands)

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

Beginning balance

Other comprehensive income (loss) before reclassifications, net

Amounts reclassified from accumulated other comprehensive loss, net

Other comprehensive income before reclassifications, net

Amounts reclassified from accumulated other comprehensive gains (loss), net

Reduction in state tax rate adjustment, net

Net current period other comprehensive income (loss)

Net current period other comprehensive income

Ending balance

3 unchanged sentences

Shares held in the deferred compensation plan by the deferred compensation trust are excluded for purposes of calculating the weighted average number of shares outstanding and basic earnings per share in accordance with ASC 260-10-45-40 and ASC 260-10-45-45 through ASC 260-26010-45-46.

The reconciliation of the amounts used in the computation of both basic earnings per share and diluted earnings per share for the three and six months ended June 30, 2025 and 2024 is as follows:

For the three months ended June 30, 2025

The reconciliation of the amounts used in the computation of both basic earnings per share and diluted earnings per share for the three and nine months ended September 30, 2025 and 2024 is as follows:

For the three months ended September 30, 2025

Net Earnings (Dollars in thousands)

Weighted Average Number of Shares

Per Share Amount

Basic earnings per share

4 unchanged sentences

Diluted earnings per share

For the six months ended June 30, 2025

For the nine months ended September 30, 2025

Net Earnings (Dollars in thousands)

Weighted Average Number of Shares

Per Share Amount

Basic earnings per share

4 unchanged sentences

Diluted earnings per share

For the three months ended June 30, 2024

For the three months ended September 30, 2024

Net Earnings (Dollars in thousands)

Weighted Average Number of Shares

Per Share Amount

Basic earnings per share

4 unchanged sentences

Diluted earnings per share

For the six months ended June 30, 2024

For the nine months ended September 30, 2024

Net Earnings (Dollars in thousands)

Weighted Average Number of Shares

Per Share Amount

Basic earnings per share

5 unchanged sentences

(4) Investment Securities

Investment securities available for sale at June 30, 2025 and December 31, 2024 are as follows:

Investment securities available for sale at September 30, 2025 and December 31, 2024 are as follows:

(Dollars in thousands)

June 30, 2025

September 30, 2025

Amortized Cost

Gross Unrealized Gains

Gross Unrealized Losses

Government sponsored enterprises

4 unchanged sentences

December 31, 2024

Amortized Cost

Gross Unrealized Gains

Gross Unrealized Losses

Government sponsored enterprises

2 unchanged sentences

State and political subdivisions

The current fair value and associated unrealized losses on investments in securities with unrealized losses at June 30, 2025 and December 31, 2024 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

The current fair value and associated unrealized losses on investments in securities with unrealized losses at September 30, 2025 and December 31, 2024 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

(Dollars in thousands)

June 30, 2025

September 30, 2025

Less than 12 Months

18 unchanged sentences

State and political subdivisions

At June 30, 2025, unrealized losses in the investment securities portfolio relating to debt securities totaled $ 41.9 million.

At September 30, 2025, unrealized losses in the investment securities portfolio relating to debt securities totaled $ 38.4 million.

The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary.

From the June 30, 2025 table above, both of the U.S.

From the September 30, 2025 table above, both of the U.S.

Treasury securities, all 108 of the securities issued by state and political subdivisions contained unrealized losses, all six of the securities issued by U.S.

Government sponsored enterprises (“GSE”), 110 of the 117 GSE mortgage-backed securities, and 10 of the 17 private label mortgage-backed securities contained unrealized losses.

The Company did not have any reserves on securities at June 30, 2025, as no credit related losses were identified in the Company’s June 30, 2025 analysis.

The Company did not have any reserves on securities at September 30, 2025, as no credit related losses were identified in the Company’s September 30, 2025 analysis.

At December 31, 2024, unrealized losses in the investment securities portfolio relating to debt securities totaled $ 51.1 million.

3 unchanged sentences

The Company did not have any reserves on securities at December 31, 2024, as no credit related losses were identified in the Company’s December 31, 2024 analysis.

The amortized cost and estimated fair value of investment securities available for sale, other than GSE mortgage-backed securities, at June 30, 2025, are shown below by contractual maturity.

The amortized cost and estimated fair value of investment securities available for sale, other than GSE mortgage-backed securities, at September 30, 2025, are shown below by contractual maturity.

Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

June 30, 2025

September 30, 2025

(Dollars in thousands)

Amortized Cost

Due within one year

3 unchanged sentences

Mortgage-backed securities

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

During the six months ended June 30, 2025, proceeds from sales of securities available for sale were $ 12.7 million and resulted in gross losses of $ 47,000 and gross gains of $ 43,000 .

Securities with a fair value of approximately $ 36.6 million and $ 40.0 million at June 30, 2025 and December 31, 2024, respectively, were pledged to secure public deposits and for other purposes as required by law.

Major classifications of loans at June 30, 2025 and December 31, 2024 are summarized as follows:

No securities available for sale were sold during the three months ended September 30, 2025.

During the nine months ended September 30, 2025, proceeds from sales of securities available for sale were $ 12.7 million and resulted in gross losses of $ 47,000 and gross gains of $ 43,000 .

During the three and nine months ended September 30, 2024, proceeds from sales of securities available for sale were $ 11.7 million and resulted in gross gains of $ 33,000 and gross losses of $ 28,000 .

Securities with a fair value of approximately $ 36.4 million and $ 40.0 million at September 30, 2025 and December 31, 2024, respectively, were pledged to secure public deposits and for other purposes as required by law.

Major classifications of loans at September 30, 2025 and December 31, 2024 are summarized as follows:

(Dollars in thousands)

June 30, 2025

September 30, 2025

December 31, 2024

26 unchanged sentences

Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

The following tables present an age analysis of past due loans, by loan type, as of June 30, 2025 and December 31, 2024:

June 30, 2025

The following tables present an age analysis of past due loans, by loan type, as of September 30, 2025 and December 31, 2024:

September 30, 2025

(Dollars in thousands)

Loans 30-89 Days Past

Loans 30-89 Days Past Due

Nonaccrual Loans

Loans 90 or More Days

Total Past Due Loans

Total Current Loans

Accruing Loans 90 or More Days Past Due

Real estate loans:

6 unchanged sentences

(Dollars in thousands)

Loans 30-89 Days Past

Loans 30-89 Days Past Due

Nonaccrual Loans

Total Past Due Loans

Total Current Loans

Accruing Loans 90 or More Days Past Due

Real estate loans:

4 unchanged sentences

Loans not secured by real estate:

The following table presents non-accrual loans as of June 30, 2025 and December 31, 2024:

June 30, 2025

The following table presents non-accrual loans as of September 30, 2025 and December 31, 2024:

September 30, 2025

Nonaccrual Loans

17 unchanged sentences

Loans not secured by real estate:

No interest income was recognized on non-accrual loans for the six months ended June 30, 2025 and 2024.

No interest income was recognized on non-accrual loans for the nine months ended September 30, 2025 and 2024.

A loan may be individually evaluated for determining the allowance for credit losses when it is determined that it does not share similar risk characteristics with other assets.

Non-accrual loans with an outstanding balance of $ 250,000 or greater are individually evaluated and totaled $ 1.9 million and $ 1.6 million at June 30, 2025 and December 31, 2024, respectively.

Non-accrual loans evaluated collectively as a pool totaled $ 2.9 million and $ 2.8 million at June 30, 2025 and December 31, 2024, respectively.

Non-accrual loans with an outstanding balance of $ 250,000 or greater are individually evaluated and totaled $ 1.5 million and $ 1.6 million at September 30, 2025 and December 31, 2024, respectively.

Non-accrual loans evaluated collectively as a pool totaled $ 3.6 million and $ 2.8 million at September 30, 2025 and December 31, 2024, respectively.

Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty.

3 unchanged sentences

Otherwise the difference between the balance and the collateral is charged off if deemed uncollectible.

The following table details the amortized cost of collateral dependent loans and any related allowance at June 30, 2025 and December 31, 2024.

June 30, 2025

The following table details the amortized cost of collateral dependent loans and any related allowance at September 30, 2025 and December 31, 2024.

September 30, 2025

December 31, 2024

12 unchanged sentences

Loans not secured by real estate:

The following tables provide a breakdown of collateral dependent loans by collateral type and collateral coverage at June 30, 2025 and 2024.

These tables also show non-accrual loans not considered to be collateral dependent at June 30, 2025 and December 31, 2024.

June 30, 2025

The following tables provide a breakdown of collateral dependent loans by collateral type and collateral coverage at September 30, 2025 and 2024.

These tables also show non-accrual loans not considered to be collateral dependent at September 30, 2025 and December 31, 2024.

September 30, 2025

Financial Assets

32 unchanged sentences

If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted.

No loans to borrowers experiencing financial difficulty were modified during the three months ended June 30, 2025.

The following table shows the amortized cost basis at June 30, 2024 of the loans to borrowers experiencing financial difficulty that were modified during the three months ended June 30, 2024, disaggregated by loan class and type of concession granted.

No loans to borrowers experiencing financial difficulty were modified during the three months ended September 30, 2025.

The following table shows the amortized cost basis at September 30, 2024 of the loans to borrowers experiencing financial difficulty that were modified during the three months ended September 30, 2024, disaggregated by loan class and type of concession granted.

(Dollars in thousands)

Amortized Cost Basis at June 30, 2024

Amortized Cost Basis at September 30, 2024

% of Loan Class

3 unchanged sentences

Interest rate reduction

Adjustable rate loan converted to fixed rate loan

No loans to borrowers experiencing financial difficulty were modified during the six months ended June 30, 2025.

The following table shows the amortized cost basis at June 30, 2024 of the loans to borrowers experiencing financial difficulty that were modified during the six months ended June 30, 2024, disaggregated by loan class and type of concession granted.

HELOC converted to amortizing term loan

No loans to borrowers experiencing financial difficulty were modified during the nine months ended September 30, 2025.

The following table shows the amortized cost basis at September 30, 2024 of the loans to borrowers experiencing financial difficulty that were modified during the nine months ended September 30, 2024, disaggregated by loan class and type of concession granted.

(Dollars in thousands)

Amortized Cost Basis at June 30, 2024

Amortized Cost Basis at September 30, 2024

% of Loan Class

2 unchanged sentences

Single-family residential

Interest rate reduction

Adjustable rate loan converted to fixed rate loan

Interest rate reduction and term extension

Adjustable rate loan converted to fixed rate loan and HELOC converted to amortizing term loan

Commercial not secured by real estate

2 unchanged sentences

The Bank closely monitors the performance of those loans that are modified because borrowers are experiencing financial difficulty so as to understand the effectiveness of its modification efforts.

The following tables show the performance of loans that were modified in the six months ended June 30, 2024.

June 30, 2024

The following tables show the performance of loans that were modified in the nine months ended September 30, 2024.

September 30, 2024

(Dollars in thousands)

21 unchanged sentences

An evaluation of these factors is performed quarterly by management through an analysis of the appropriateness of the allowance.

The following tables present changes in the allowance for credit losses for the three and six months ended June 30, 2025 and 2024.

The following tables present changes in the allowance for credit losses for the three and nine months ended September 30, 2025 and 2024.

(Dollars in thousands)

4 unchanged sentences

Consumer and All Other

Three months ended June 30, 2025

Three months ended September 30, 2025

Allowance for credit losses:

7 unchanged sentences

Total allowance for credit losses

Six months ended June 30, 2025

Nine months ended September 30, 2025

Allowance for credit losses:

15 unchanged sentences

Consumer and All Other

Three months ended June 30, 2024

Three months ended September 30, 2024

Allowance for credit losses:

7 unchanged sentences

Total allowance for credit losses

Six months ended June 30, 2024

Nine months ended September 30, 2024

Allowance for credit losses:

8 unchanged sentences

(1) Excludes provision for credit losses related to unfunded commitments.

Note 7, "Commitments and Contingencies" in the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments.

Note 7,"Commitments and Contingencies" in the consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments.

The Bank utilizes several credit quality indicators to manage credit risk in an ongoing manner.

10 unchanged sentences

This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be affected in the future.

The following table presents by credit quality indicator, loan class and year of origination, the amortized cost of the Bank’s loans as of June 30, 2025.

The following table presents by credit quality indicator, loan class and year of origination, the amortized cost of the Bank’s loans as of September 30, 2025.

Term Loans by Origination Year

(dollars in thousands)

June 30, 2025

Real Estate Loans Construction and land development

September 30, 2025

Real Estate Loans

Construction and land development

Total Construction and land development

10 unchanged sentences

Total loans not secured by real estate

The following table presents by credit quality indicator, loan class and year of origination, gross loan charge-offs for the six months ended June 30, 2025.

June 30, 2025

The following table presents by credit quality indicator, loan class and year of origination, gross loan charge-offs for the nine months ended September 30, 2025.

September 30, 2025

Gross Loan Charge-offs by Origination Year

11 unchanged sentences

December 31, 2024

Real Estate Loans Construction and land development

Total Construction and land development

Real Estate Loans

Construction and land

Total Construction and

land development

Single family

2 unchanged sentences

Multifamily and farmland

Total multifamily and farmland

Total multifamily and

Total real estate loans

3 unchanged sentences

Total all other

Total loans not secured by real estate

Total loans not secured

by real estate

The following table presents by credit quality indicator, loan class and year of origination, gross loan charge-offs during the year ended December 31, 2024.

9 unchanged sentences

Total gross charge-offs

As of June 30, 2025, the Bank had operating right of use assets of $ 3.7 million and operating lease liabilities of $ 3.8 million.

As of September 30, 2025, the Bank had operating right of use assets of $ 3.7 million and operating lease liabilities of $ 3.8 million.

As of December 31, 2024, the Bank had operating right of use assets of $ 4.0 million and operating lease liabilities of $ 4.1 million.

4 unchanged sentences

Leases with a term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term.

The following table presents lease cost and other lease information as of June 30, 2025 and 2024.

The following table presents lease cost and other lease information as of September 30, 2025 and 2024.

(Dollars in thousands)

June 30, 2025

June 30, 2024

September 30, 2025

September 30, 2024

Operating lease cost

5 unchanged sentences

Weighted-average discount rate - operating leases

The following table presents lease maturities as of June 30, 2025.

The following table presents lease maturities as of September 30, 2025.

(Dollars in thousands)

Maturity Analysis of Operating Lease Liabilities:

June 30, 2025

September 30, 2025

Imputed Interest

22 unchanged sentences

The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding activity and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the allowance for credit losses on loans.

The allowance for credit losses for unfunded loan commitments of $ 1.3 million and $ 1.1 million at June 30, 2025 and December 31, 2024, respectively, is separately classified on the balance sheet within Other Liabilities.

The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the three and six months ended June 30, 2025 and 2024.

The allowance for credit losses for unfunded loan commitments of $ 1.2 million and $ 1.1 million at September 30, 2025 and December 31, 2024, respectively, is separately classified on the balance sheet within Other Liabilities.

The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the three and nine months ended September 30, 2025 and 2024.

(dollars in thousands)

For three months ended

For six months ended

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

For nine months ended

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

Beginning Balance

1 unchanged sentence

Ending balance

In 2023, the North Carolina Department of Transportation (“NCDOT”) acquired the Bank’s Mooresville branch office, situated on NC Highway 150 in Mooresville, NC through an eminent domain acquisition for the widening of NC Highway 150.

During the second quarter of 2023, the Bank received a $ 1.5 million payment from the NCDOT for this property, which was recorded as an offset to the net book value of the asset, resulting in a $ 191,000 gain during the second quarter of 2023.

Subsequently, the Bank spent considerable time and effort seeking additional monetary compensation for this property to more closely reflect the fair value of the property.

A September 2025 bench ruling in the Bank’s favor requires that the NCDOT pay the Bank a total of $5.1 million for this property, including the $1.5 million payment the Bank received in 2023 .

The formal written order for this ruling had not been received by the Bank as of September 30, 2025.

The Bank recorded $ 553,000 in legal expenses associated with the legal proceedings and a corresponding other payable for these fees as of September 30, 2025.

The Bank expects to realize an additional $ 3.6 million gain on the involuntarily disposal of this property upon receiving the formal written order from the court.

(8) Fair Value

42 unchanged sentences

In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

The tables below present all financial instruments measured at fair value on a recurring basis by level within the fair value hierarchy, as of June 30, 2025 and December 31, 2024.

The tables below present all financial instruments measured at fair value on a recurring basis by level within the fair value hierarchy, as of September 30, 2025 and December 31, 2024.

(Dollars in thousands)

June 30, 2025

September 30, 2025

Fair Value Measurements

18 unchanged sentences

Mutual funds held in deferred compensation trust

The fair value measurements for individually evaluated loans and other real estate on a non-recurring basis at June 30, 2025 and December 31, 2024 are presented below.

The fair value measurements for individually evaluated loans and other real estate on a non-recurring basis at September 30, 2025 and December 31, 2024 are presented below.

The fair value measurement process uses certified appraisals and other market-based information;

2 unchanged sentences

(Dollars in thousands)

Fair Value June 30, 2025

Fair Value December 31, 2024

Fair Value September 30, 2025

December 31, 2024

Valuation Technique

7 unchanged sentences

Discounts to reflect current market conditions and estimated costs to sell

The carrying amount and estimated fair value of financial instruments at June 30, 2025 and December 31, 2024 are as follows:

The carrying amount and estimated fair value of financial instruments at September 30, 2025 and December 31, 2024 are as follows:

(Dollars in thousands)

Fair Value Measurements at June 30, 2025

Fair Value Measurements at September 30, 2025

Carrying Amount

3 unchanged sentences

Mortgage loans held for sale

Mutual funds held in deferred compensation trust

Mutual funds held in deferred

compensation trust

Junior subordinated debentures

21 unchanged sentences

(Dollars in thousands)

As of and for the three months ended June 30, 2025

As of and for the three months ended September 30, 2025

Interest income

9 unchanged sentences

Net income (loss)

As of and for the three months ended June 30, 2024

As of and for the three months ended September 30, 2024

Interest income

9 unchanged sentences

Net income (loss)

As of and for the six months ended June, 2025

As of and for the nine months ended September, 2025

Interest income

9 unchanged sentences

Net income (loss)

As of and for the six months ended June, 2024

As of and for the nine months ended September, 2024

Interest income

10 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements