7 unchanged sentences
Our principal executive offices are located at 518 West C Street, Newton, North Carolina, 28658, and our telephone number is (828) 464-5620.
−Removed: The Bank, founded in 1912, is a state-chartered commercial bank serving the citizens and business interests of the Catawba Valley and surrounding communities through 16 banking offices, located in Lincolnton, Newton, Denver, Catawba, Conover, Maiden, Claremont, Hiddenite, Hickory, Charlotte, Huntersville, Mooresville and Raleigh, North Carolina.
+Added: The Bank, founded in 1912, is a state-chartered commercial bank serving the citizens and business interests of the Catawba Valley and surrounding communities through 15 banking offices, located in Lincolnton, Newton, Denver, Catawba, Conover, Maiden, Claremont, Hiddenite, Hickory, Charlotte, Huntersville and Mooresville, North Carolina.
The Bank also operates loan production offices in Charlotte, Denver, Salisbury and Winston-Salem, North Carolina.
7 unchanged sentences
The operations of the Bank are significantly influenced by general economic conditions and by related monetary and fiscal policies of the Company and the Bank’s regulatory agencies, including the Federal Reserve, the Federal Deposit Insurance Corporation (the “FDIC”) and the North Carolina Commissioner of Banks (the “Commissioner”).
−Removed: At December 31, 2024, the Company employed 281 full-time employees and 13 part-time employees, which equated to 288 full-time equivalent employees.
+Added: At December 31, 2025, the Company employed 268 full-time employees and eight part-time employees, which equated to 273 full-time equivalent employees.
The Bank is a subsidiary of the Company.
28 unchanged sentences
One national money center commercial bank is headquartered in Charlotte, North Carolina.
−Removed: Based upon June 30, 2024 comparative data, the Bank had 21.49% of the deposits in Catawba County, placing it second in deposit size among a total of 12 banks with branch offices in Catawba County;
−Removed: 16.37% of the deposits in Lincoln County, placing it second in deposit size among a total of 10 banks with branch offices in Lincoln County;
−Removed: and 16.10% of the deposits in Alexander County, placing it fourth in deposit size among a total of four banks with branch offices in Alexander County.
+Added: Based upon June 30, 2025 comparative data, the Bank had 23.54% of the deposits in Catawba County, placing it first in deposit size among a total of 11 banks with branch offices in Catawba County;
+Added: 15.24% of the deposits in Lincoln County, placing it third in deposit size among a total of 10 banks with branch offices in Lincoln County;
+Added: and 15.92% of the deposits in Alexander County, placing it third in deposit size among a total of four banks with branch offices in Alexander County.
The Bank also faces additional significant competition for investors’ funds from short-term money market securities and other corporate and government securities.
14 unchanged sentences
The Bank’s legal lending limit is set by law and is monitored by the FDIC and the Commissioner.
−Removed: As of December 31, 2024, the Bank’s legal lending limit was $29.1 million (absent fully marketable collateral), and the largest credit relationship was $19.1 million.
+Added: As of December 31, 2025, the Bank’s legal lending limit was $31.4 million (absent fully marketable collateral) or $52.3 million (when fully secured by readily marketable collateral), and the largest credit relationship was $24.4 million.
The underwriting standards and loan origination procedures include officer lending limits, which are approved by the Bank Board.
60 unchanged sentences
Human Capital Management
−Removed: At December 31, 2024, the Company employed 281 full-time employees and 13 part-time employees, which equated to 288 full-time equivalent employees.
+Added: At December 31, 2025, the Company employed 268 full-time employees and eight part-time employees, which equated to 273 full-time equivalent employees.
We are not a party to any collective bargaining agreements, and we consider our employee relations to be good.
23 unchanged sentences
Employees have annual assignments related to “valuing differences” and diversity training is an integrated part of our leadership training as well.
−Removed: We expanded our Diversity, Equity & Inclusion (“DEI”) course library to support our ongoing culture sustainability program development.
−Removed: We launched our “Courageous Conversations” initiative in 2020, a program we will continue to build on annually.
We also seek to design careers within our organization that are fulfilling ones, with competitive compensation and benefits alongside a positive work-life balance.
23 unchanged sentences
While the Economic Growth Act maintains most of the regulatory structure established by the Dodd-Frank Act, it amends certain aspects of the regulatory framework for small depository institutions with assets less than $10 billion and for large banks with assets of more than $50 billion.
−Removed: The Economic Growth Act, among other matters, expands the definition of qualified mortgages which may be held by a financial institution and provides for an alternative capital rule which financial institutions and their holding companies with total consolidated assets of less than $10 billion may elect to utilize.
+Added: The Economic Growth Act, among other matters, expanded the definition of qualified mortgages which may be held by a financial institution and provided for an alternative capital rule which financial institutions and their holding companies with total consolidated assets of less than $10 billion may elect to utilize.
The Economic Growth Act instructed the federal banking regulators to establish a single “Community Bank Leverage Ratio” of between 8% and 10%.
−Removed: In addition, the Economic Growth Act includes regulatory relief for community banks of certain sizes regarding regulatory examination cycles, call reports, the Volcker Rule (proprietary trading prohibitions), mortgage disclosures and risk weights for certain high-risk commercial real estate loans.
+Added: In addition, the Economic Growth Act included regulatory relief for community banks of certain sizes regarding regulatory examination cycles, call reports, the Volcker Rule (proprietary trading prohibitions), mortgage disclosures and risk weights for certain high-risk commercial real estate loans.
We have not opted to utilize the Community Bank Leverage Ratio and have instead continued to use the Basel III standards (see discussion on Basel III standards under the heading “Capital Adequacy” below).
−Removed: It is difficult at this time to predict when or how any new standards under the Economic Growth Act will ultimately be applied to, or what specific impact the Economic Growth Act and the yet-to-be-written implementing rules and regulations will have on us.
Capital Adequacy .
1 unchanged sentence
At December 31, 2025, the Company also exceeded each of its minimum capital requirements with a Tier 1 leverage capital ratio of 11.33%, common equity Tier 1 risk-based capital ratio of 13.83%, Tier 1 risk-based capital ratio of 14.96% and total risk-based capital ratio of 15.82%.
−Removed: On July 2, 2013, the Federal Reserve approved a final rule that establishes an integrated regulatory capital framework that addresses shortcomings in certain capital requirements.
−Removed: The rule, which became effective on January 1, 2015, implements in the United States the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-Frank Act.
+Added: On July 2, 2013, the Federal Reserve approved a final rule that established an integrated regulatory capital framework that addressed shortcomings in certain capital requirements.
+Added: The rule, which became effective on January 1, 2015, implemented in the United States the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-Frank Act.
The final rule:
13 unchanged sentences
As a result of these changes, certain non-qualifying capital instruments, including cumulative preferred stock and trust preferred securities, are excluded as a component of Tier 1 capital for institutions of the size of the Company.
−Removed: The final rule further requires that certain items be deducted from common equity Tier 1 capital, including (1) goodwill and other intangible assets, other than mortgage servicing rights, net of deferred tax liabilities (“DTLs”);
+Added: The final rule further required that certain items be deducted from common equity Tier 1 capital, including (1) goodwill and other intangible assets, other than mortgage servicing rights, net of deferred tax liabilities (“DTLs”);
(2) deferred tax assets that arise from operating losses and tax credit carryforwards, net of valuation allowances and DTLs;
3 unchanged sentences
The final rule also allows all but the largest banking organizations to make a one-time election not to recognize unrealized gains and losses on available for sale debt securities in regulatory capital, as under prior capital rules.
−Removed: The final rule provides that the failure to maintain the minimum conservation buffer will result in restrictions on capital distributions and discretionary cash bonus payments to executive officers.
+Added: The final rule provided that the failure to maintain the minimum conservation buffer will result in restrictions on capital distributions and discretionary cash bonus payments to executive officers.
If a banking organization’s conservation buffer is less than 0.625%, the banking organization may not make any capital distributions or discretionary cash bonus payments to executive officers.
14 unchanged sentences
We recognized approximately $776,000 and $764,000 in FDIC insurance expense in 2025 and 2024, respectively.
−Removed: The increase in 2023 is primarily due to the FDIC insurance assessment rate changing from 0.03% to 0.05% effective January 1, 2023.
The FDIC may conduct examinations of and require reporting by FDIC-insured institutions.
11 unchanged sentences
In October 2023, the Federal Reserve, FDIC, and OCC issued a final rule to amend their regulations implementing the CRA.
−Removed: The rule materially revises the current CRA framework, including the assessment areas in which a bank is evaluated to include activities associated with online and mobile banking, the tests used to evaluate the bank in its assessment areas, new methods of calculating credit for lending, investment and service activities, and additional data collection and reporting requirements.
−Removed: The rule is expected to result in a significant increase in the thresholds for large banks to receive “Outstanding” ratings in the future.
−Removed: Most of the provisions become applicable on January 1, 2026.
−Removed: Reporting of the collected data will not be required until 2027.
+Added: In July 2025, the federal banking agencies issued a joint Notice of Proposed Rulemaking, which, if finalized, would rescind the 2023 final rule and reinstate the CRA framework that existed prior to the issuance of that rule.
+Added: Implementation of the October 2023 final rule, which was subject to an injunction and has not taken effect, would have materially changed the CRA framework, including imposing additional costs and changing how CRA performance would be assessed.
Changes in Control.
42 unchanged sentences
Current Expected Credit Loss Accounting Standard.
−Removed: The Financial Accounting Standards Board (“FASB”) has adopted a new accounting standard related to reserving for credit losses.
−Removed: This standard, referred to as Current Expected Credit Loss (or “CECL”), requires FDIC-insured institutions and their holding companies (banking organizations) to recognize credit losses expected over the life of certain financial assets.
+Added: The Company accounts for credit losses in accordance with the Current Expected Credit Loss model (or "CECL") as prescribed by the Financial Accounting Standards Board ("FASB").
+Added: CECL requires companies to recognize credit losses expected over the life of certain financial assets.
The Company adopted CECL as of January 1, 2023.
80 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.