What changed in this filing

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Item 1. Financial Statements

2026-05-12 compared with 2025-11-10 · 163 added, 270 removed, 713 unchanged (38% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets

September 30,

2026 December 31,

19 unchanged sentences

Federal Home Loan Bank advances 256,000,000 240,000,000

Other borrowings — 12,000,000

Advances by borrowers for taxes and insurance 768,162 650,674

6 unchanged sentences

Authorized - 90,000,000 shares

Issued and outstanding - 10,426,263 shares and 10,814,960 shares at September 30, 2025 and December 31, 2024, respectively

Issued and outstanding - 10,501,260 shares and 10,501,260 shares at March 31, 2026 and December 31, 2025, respectively

105,013 105,013

8 unchanged sentences

Condensed Consolidated Statements of Income

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Interest Income

8 unchanged sentences

Net Interest Income 11,446,413 10,258,072

Provision for (reversal of) credit losses 268,674 ( 98,848 ) 1,744,459 354,758

Net Interest Income After Provision for (Reversal of) Credit Losses 11,026,287 9,531,647 30,568,015 28,486,715

Provision for credit losses 693,094 731,095

Net Interest Income After Provision for Credit Losses 10,753,319 9,526,977

Non-interest Income

2 unchanged sentences

Loan and lease servicing fees 93,580 112,358

Net gains (loss) on securities (includes $ 0 , $ 11,331 , $( 156,859 ), and $( 50,698 ), respectively, related to accumulated other comprehensive income reclassifications)

— 11,331 ( 156,859 ) ( 50,698 )

Net gains on loan and lease sales 173,072 95,105

17 unchanged sentences

Income Before Income Tax Expense 3,347,705 2,316,608

Provision for income taxes (includes $ 0 , $ 2,380 , $( 32,940 ), and $( 10,647 ), respectively, related to income tax expense (benefit) from reclassification of items)

644,745 369,415 1,375,470 1,026,636

Provision for income taxes 562,414 348,298

Net Income $ 2,785,291 $ 1,968,310

6 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Net Income $ 2,785,291 $ 1,968,310

Other Comprehensive Income

Unrealized gain on available for sale securities, net of tax expense of $ 1,419,506 , $ 2,184,979 , $ 2,013,736 , and $ 1,072,553 , respectively

5,340,047 8,219,682 7,575,484 4,034,841

reclassification adjustment for realized gains (losses) included in net income, net of tax expense (benefit) of $ 0 , $ 2,380 , $( 32,940 ), and $( 10,647 ), respectively

Other Comprehensive (Loss) Income

Unrealized (loss) gain on available for sale securities, net of tax benefit (expense) of $ 655,591 and $( 339,238 ), respectively

( 2,466,272 ) 1,276,182

4 unchanged sentences

Condensed Consolidated Statements of Changes in Stockholders’ Equity

Three Months Ended September 30, 2025

Common Stock Additional

Capital Retained

Earnings Unearned

Shares Accumulated

Comprehensive

Outstanding Amount

Balances, June 30, 2025 10,389,137 $ 103,891 $ 92,798,702 $ 93,220,564 $ ( 10,354,751 ) $ ( 43,446,841 ) $ 132,321,565

Net income — — — 3,597,006 — — 3,597,006

Other comprehensive income — — — — — 5,340,047 5,340,047

ESOP shares earned — — 9,020 — 183,829 — 192,849

Granting of restricted stock awards 37,126 372 ( 372 ) — — — —

Stock based compensation — — 29,294 — — — 29,294

Common stock dividends ($ 0.15 per share)

— — — ( 1,445,585 ) — — ( 1,445,585 )

Balances, September 30, 2025 10,426,263 $ 104,263 $ 92,836,644 $ 95,371,985 $ ( 10,170,922 ) $ ( 38,106,794 ) $ 140,035,176

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Common Stock Additional

6 unchanged sentences

Net income — — — 2,785,291 — — 2,785,291

Other comprehensive income — — — — — 7,699,403 7,699,403

ESOP shares earned — — 972 — 551,488 — 552,460

Granting of restricted stock awards 37,126 372 ( 372 ) — — — —

Stock based compensation — — 756,213 — — — 756,213

Common stock dividends ($ 0.45 per share)

— — — ( 4,378,315 ) — — ( 4,378,315 )

Repurchase of common stock ( 425,823 ) ( 4,259 ) ( 5,629,400 ) — — — ( 5,633,659 )

Balances, September 30, 2025 10,426,263 $ 104,263 $ 92,836,644 $ 95,371,985 $ ( 10,170,922 ) $ ( 38,106,794 ) $ 140,035,176

See Notes to Condensed Consolidated Statements.

Three Months Ended September 30, 2024

Common Stock Additional

Capital Retained

Earnings Unearned

Shares Accumulated

Comprehensive

Outstanding Amount

Balances, June 30, 2024 11,018,824 $ 110,188 $ 99,813,232 $ 89,457,837 $ ( 11,090,068 ) $ ( 47,180,935 ) $ 131,110,254

Net income — — — 2,471,878 — — 2,471,878

Other comprehensive income — — — — — 8,210,731 8,210,731

Other comprehensive income (loss) — — — — — ( 2,466,272 ) ( 2,466,272 )

ESOP shares earned — — 3,922 — 183,829 — 187,751

Stock based compensation — — 87,493 — — — 87,493

Exercise of stock options 1,300 13 ( 24 ) — — — ( 11 )

Common stock dividends ($ 0.15 per share)

— — — ( 1,464,950 ) — — ( 1,464,950 )

Repurchase of common stock ( 71,306 ) ( 713 ) ( 885,162 ) — — — ( 885,875 )

Balances, September 30, 2024 10,948,818 $ 109,488 $ 99,282,509 $ 90,511,043 $ ( 10,906,239 ) $ ( 38,970,204 ) $ 140,026,597

Nine Months Ended September 30, 2024

Balances, March 31, 2026 10,501,260 $ 105,013 $ 92,988,675 $ 98,644,946 $ ( 9,803,264 ) $ ( 37,024,957 ) $ 144,910,413

Three Months Ended March 31, 2025

Common Stock Additional

6 unchanged sentences

Net income — — — 1,968,310 — — 1,968,310

Other comprehensive loss — — — — — 4,074,892 4,074,892

Other comprehensive income — — — — — 1,276,182 1,276,182

ESOP shares earned — — ( 5,347 ) — 183,830 — 178,483

Forfeiture of restricted stock awards ( 400 ) ( 4 ) 4 — — — —

Stock based compensation — — 363,459 — — — 363,459

Exercise of stock options 1,952 19 ( 32 ) — — — ( 13 )

Common stock dividends ($ 0.15 per share)

1 unchanged sentence

Repurchase of common stock ( 324,696 ) ( 3,247 ) ( 4,230,375 ) — — — ( 4,233,622 )

Balances, September 30, 2024 10,948,818 $ 109,488 $ 99,282,509 $ 90,511,043 $ ( 10,906,239 ) $ ( 38,970,204 ) $ 140,026,597

Balances, March 31, 2025 10,490,264 $ 104,903 $ 93,836,968 $ 92,058,581 $ ( 10,538,580 ) $ ( 44,530,015 ) $ 130,931,857

See Notes to Condensed Consolidated Statements.

1 unchanged sentence

Condensed Consolidated Statements of Cash Flows

Nine Months Ended September 30,

Three Months Ended March 31,

Operating Activities

6 unchanged sentences

Investment securities amortization, net 192,211 198,201

Net loss on sale of investment securities - available for sale

156,859 50,698

Net gains on loan and lease sales ( 173,072 ) ( 95,105 )

(Gain) loss on sale of real estate owned ( 6,067 ) 7,050

Gain on sale of premises and equipment ( 4,500 ) ( 6,000 )

Accretion of loan origination fees ( 211,704 ) ( 211,416 )

14 unchanged sentences

Proceeds from maturities and paydowns of securities available for sale 4,037,098 4,534,320

Proceeds from sales of securities available for sale 6,765,143 6,907,932

Proceeds from maturities and paydowns of securities held to maturity 395,000 565,159

2 unchanged sentences

Purchases of premises and equipment ( 324,561 ) ( 75,973 )

Proceeds from sale of premises and equipment — 6,000

Purchase of FHLB stock — ( 1,260,000 )

Net cash used in investing activities ( 4,312,546 ) ( 30,308,493 )

Net cash provided by (used in) investing activities 4,757,538 ( 12,041,848 )

Financing Activities

3 unchanged sentences

Advances by borrowers for taxes and insurance 117,488 139,959

Repayment of other borrowings ( 12,000,000 ) —

Proceeds from FHLB advances 73,000,000 112,000,000

1 unchanged sentence

Repurchase of common stock — ( 4,233,622 )

Proceeds from stock option exercises — ( 13 )

Dividends paid ( 1,464,950 ) ( 1,492,715 )

Net cash provided by financing activities 3,517,656 21,677,746

Net cash (used in) provided by financing activities ( 5,875,361 ) 15,136,070

Net Change in Cash and Cash Equivalents 1,667,747 5,274,902

15 unchanged sentences

First Bank Richmond is an Indiana state-chartered commercial bank headquartered in Richmond, Indiana and the wholly owned banking subsidiary of Richmond Mutual Bancorporation.

First Bank Richmond provides full banking services through its seven full- and one limited-service offices located in Cambridge City (1), Centerville (1), Richmond (5) and Shelbyville (1), Indiana, its five full-service offices located in Piqua (2), Sidney (2) and Troy (1), Ohio, and its loan production office in Columbus, Ohio.

First Bank Richmond provides full banking services through its seven full- and one limited-service offices located in Cambridge City (1), Centerville (1), Richmond (5) and Shelbyville (1), Indiana, its six full-service offices located in Piqua (2), Sidney (2), Troy (1), and Columbus (1), Ohio.

Administrative, trust and wealth management services are conducted through First Bank Richmond's Corporate Office/Financial Center located in Richmond, Indiana.

16 unchanged sentences

Past due status is based on contractual terms of the loan.

For all loan classes, the entire balance of the loan is considered past due if the minimum payment contractually required to be paid is not received by the

contractual due date.

For all loan classes, the entire balance of the loan is considered past due if the minimum payment contractually required to be paid is not received by the contractual due date.

For all loan classes, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful.

10 unchanged sentences

Accounting Pronouncements

The Jumpstart Our Business Startups Act (the "JOBS Act"), enacted in April 2012, introduced a number of changes to the federal securities laws intended to facilitate access to the capital markets.

Under the JOBS Act, a company with total annual gross revenues of less than $1.07 billion during its most recently completed fiscal year qualifies as an “emerging growth company” ("EGC").

The Company previously qualified as, and elected to be treated as, an EGC under the JOBS Act.

As an EGC, the Company elected to adopt new or revised accounting standards in the same manner and timing as a private company, an election that was required to be made upon the filing of its initial registration statement and remained irrevocable for as long as the Company maintained EGC status.

As of December 31, 2024, the Company ceased to qualify as an EGC.

Accordingly, beginning with the fiscal year ending December 31, 2025, the Company was required to adopt new or amended accounting standards as applicable to public companies and comply with other reporting and disclosure requirements of the Securities Exchange Act of 1934, as amended, and related SEC rules and regulations.

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No.

2023-07, Segment Reporting:

Improvements to Reportable Segment Disclosures , requiring public entities to disclose information about significant expenses for their reportable segments on both an interim and annual basis.

Public entities must disclose significant expense categories and amounts for each reportable segment, which are derived from expenses regularly reported to the entity’s chief operating decision-maker (CODM) and included in the segment's reported measures of profit or loss.

Additionally, public entities must disclose the title and position of the CODM and explain how the CODM uses these measures to assess segment performance.

The ASU also mandates certain segment-related interim disclosures that were previously required only on an annual basis.

The ASU is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024.

The Company adopted this ASU on January 1, 2024.

Adoption of ASU No.

2023-07 did not have a material impact on the Company's consolidated financial statements.

In March 2020, the FASB issued ASU No.

2020-04, Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting.

This ASU applies to contracts, hedging relationships and other transactions that reference the London Interbank Offer Rate ("LIBOR") or other rate references expected to be discontinued because of reference rate reform.

The ASU permits an entity to make necessary modifications to eligible contracts or transactions without requiring contract remeasurement or reassessment of a previous accounting determination.

In December of 2022, the FASB issued ASU No.

2022-06 which extended the period of time preparers can utilize the reference rate reform relief guidance in Topic 848.

The guidance ensures the relief in Topic 848 covers the period of time during which a significant number of modifications may take place and the ASU defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024.

In March 2023, the FASB issued ASU No.

2023-02, Investments Equity Method and Joint Ventures (Topic 323):

Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method .

This ASU allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits.

2023-02 is effective for all public business entities for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2023.

The Company adopted this guidance on January 1, 2024.

Adoption of ASU 2023-02 did not have a material impact on the Company's consolidated financial statements.

In December 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures .

This ASU established new income tax disclosure requirements and modified existing requirements.

The ASU requires additional information be disclosed for specified categories, and reconciling items that meet a certain threshold, within the rate reconciliation on an annual basis.

Additionally, this ASU requires information be disclosed on the amount of income taxes paid (net of refunds), disaggregated by federal, state, and foreign taxes and the amount of income taxes paid (net of refunds) disaggregated by jurisdiction based on a quantitative threshold.

2023-09 is effective for all public business entities for annual periods beginning after December 15, 2024.

The Company does not expect the adoption of ASU 2023-09 to have a material impact on its consolidated financial statements.

In November 2024, the Financial Accounting Standards Board ("FASB") issued Auditing Standards Update ("ASU") No.

2024-03, Income Statement - Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40);

Disaggregation of Income Statement Expenses .

This ASU requires certain expenses be disaggregated into specific categories in disclosures within the financial statements and footnotes to the financial statements.

2024-03 is effective for all public business entities for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027.

Early adoption is permitted.

The Company is currently evaluating the impact of ASU No.

2024-03 on its consolidated financial statements.

In November 2025, the FASB issued ASU No.

2025-08, Financial Instruments - Credit Losses (Topic 326), Purchased Loans.

This ASU amended the guidance in ASC 326 on the accounting for certain purchased loans.

The amendments in this update expand the use of the “gross-up” approach to certain acquired loans classified as purchased seasoned loans ("PSLs").

The amendments are intended to reduce complexity and improve comparability in the accounting for acquired loans.

2025-08 is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027.

Early adoption is permitted.

The Company is currently evaluating the impact of ASU No.

2025-08 on its consolidated financial statements.

Acquisition of The Farmers Bancorp, Frankfort, Indiana

On November 11, 2025, the Company entered into a definitive Agreement and Plan of Merger (the "Merger Agreement") with The Farmers Bancorp, Frankfort, Indiana ("Farmers Bancorp"), headquartered in Frankfort, Indiana.

Pursuant to the Merger Agreement, Farmers Bancorp is expected to merge with and into the Company, with the Company surviving the holding company merger.

Immediately following the holding company merger, The Farmers Bank, an Indiana state-chartered bank and wholly owned subsidiary of Farmers Bancorp, will merge with and into First Bank Richmond, with First Bank Richmond surviving the bank merger.

Under the terms of the Merger Agreement, each outstanding share of Farmers Bancorp common stock will be converted into the right to receive 3.40 shares of the Company’s common stock (the "Exchange Ratio"), with cash paid in lieu of fractional shares (collectively, the "Merger Consideration").

In addition, (i) each unvested restricted stock unit award of Farmers Bancorp will automatically vest, and the underlying shares will be treated as outstanding and entitled to receive the Merger Consideration, less applicable tax withholding;

and (ii) each unvested performance share award of Farmers Bancorp will be terminated and cashed out at target performance levels immediately prior to the effective time of the merger.

Based on the Company’s closing stock price of $ 13.15 per share on November 10, 2025, the aggregate equity value of the Merger Consideration was approximately $ 82 million.

The final value of the merger consideration will fluctuate until closing based on changes in the Company’s stock price.

Upon completion of the merger, Farmers Bancorp shareholders are expected to own approximately 38 % of the outstanding shares of the combined company.

The merger has been approved by the boards of directors of both companies, and all required regulatory approvals have been received.

A special meeting of Farmers Bancorp shareholders to approve the merger agreement and related transactions is scheduled for May 26, 2026.

The Company will seek shareholder approval of the issuance of its shares in the transaction at its annual meeting of shareholders to be held on May 27, 2026.

The transaction is expected to be completed at or around the end of the second quarter of 2026, subject to shareholder approvals and the satisfaction of customary closing conditions.

The merger will be accounted for as a business combination under ASC 805, Business Combinations , with the Company expected to be the accounting acquirer.

The combined company will continue to trade on the Nasdaq Capital Market under the ticker symbol "RMBI." The holding company will operate under the name "Richmond Mutual Bancorporation, Inc.," while the combined bank, subject to regulatory approval, will operate under the new name "First Bank Midwest".

The administrative headquarters of the combined company will be located in Richmond, Indiana, and the administrative headquarters of the combined bank will be located in Frankfort, Indiana.

The merger has not been completed as of March 31, 2026.

Accordingly, the accompanying consolidated financial statements do not include the assets, liabilities, results of operations, or cash flows of Farmers Bancorp, and no purchase accounting adjustments have been recorded as of that date.

Investment Securities

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of investment securities are as follows:

September 30, 2025

March 31, 2026

Available for sale

Treasury securities $ 796 $ — $ 2 $ 794

SBA Pools $ 3,320 $ — $ ( 372 ) $ 2,948

10 unchanged sentences

Available for sale

Treasury securities $ 3,159 $ 2 $ — $ 3,161

SBA Pools $ 3,473 $ — $ ( 349 ) $ 3,124

1 unchanged sentence

State and municipal obligations 157,102 160 ( 25,444 ) 131,818

Mortgage-backed securities - (GSE) residential 119,748 5 21,440 98,313

Mortgage-backed securities - government-sponsored enterprises (GSE) residential 108,586 93 ( 15,574 ) 93,105

Corporate obligations 11,500 — ( 1,693 ) 9,807

4 unchanged sentences

Total investment securities $ 298,409 $ 260 $ ( 44,037 ) $ 254,632

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

The amortized cost and fair value of investment securities at March 31, 2026, by contractual maturity, are shown below.

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

8 unchanged sentences

Totals $ 292,386 $ 245,519 $ 2,353 $ 2,302

Investment securities with a carrying value of $ 138,306,000 and $ 136,799,000 were pledged at September 30, 2025 and December 31, 2024, respectively, to secure certain deposits and for other purposes as permitted or required by law.

Proceeds from the sale of securities available for sale were $ 0 and $ 6,765,000 for the three and nine months ended September 30, 2025.

Gross losses recognized on the sale of securities available for sale for the three and nine months ended September 30, 2025 were $ 0 and $ 157,000 , while there were no gross gains recognized during those same periods.

Proceeds from the sale of securities available for sale for the three and nine months ended September 30, 2024 were $ 3,119,000 and $ 6,908,000 , respectively.

Gross losses recognized on the sale of securities available for sale for the three and nine months ended September 30, 2024 were $ 9,000 and $ 71,000 , respectively, while gross gains recognized were $ 157,000 during those same periods.

Investment securities with a carrying value of $ 134,486,000 and $ 138,306,000 were pledged at March 31, 2026 and December 31, 2025, respectively, to secure certain deposits and for other purposes as permitted or required by law.

There were no sales of securities available for sale for the three months ended March 31, 2026 or March 31, 2025.

Certain investments in debt securities, as reflected in the table below, are reported in the condensed consolidated financial statements and notes at an amount less than their historical cost.

Total fair value of these investments at September 30, 2025 and December 31, 2024 was $ 244,243,000 and $ 255,749,000 , respectively, which is approximately 96 % and 98 % of the Company’s aggregated available for sale and held to maturity investment portfolio at those dates, respectively.

Total fair value of these investments at March 31, 2026 and December 31, 2025 was $ 238,904,000 and $ 244,503,000 , respectively, which is approximately 96 % and 96 % of the Company’s aggregated available for sale and held to maturity investment portfolio at those dates, respectively.

These declines primarily resulted from changes in market interest rates since their purchase.

The Company does not consider available for sale securities with unrealized losses to be experiencing credit losses at September 30, 2025.

The Company does not consider available for sale securities with unrealized losses to be experiencing credit losses at March 31, 2026.

Management considers it more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost basis, which may be the maturity dates of the securities.

3 unchanged sentences

The Company monitors the credit quality of investment securities held to maturity through the use of credit ratings quarterly.

As of September 30, 2025, there was no allowance for credit losses recognized on the Company's securities held to maturity portfolio.

The following table summarizes the amortized cost of held to maturity securities by credit quality indicator as of September 30, 2025 and December 31, 2024:

As of March 31, 2026, there was no allowance for credit losses recognized on the Company's securities held to maturity portfolio.

The following table summarizes the amortized cost of held to maturity securities by credit quality indicator as of March 31, 2026 and December 31, 2025:

State and municipal obligations

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

AA+ $ 175 $ 350

2 unchanged sentences

The Company has elected to exclude accrued interest receivable from the calculation of the allowance for credit losses.

The following tables show the Company’s investment securities by gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2025 and December 31, 2024:

Description of

Securities September 30, 2025

Securities March 31, 2026

Less Than 12 Months 12 Months or More Total

3 unchanged sentences

Available for sale

Treasury Securities $ 795 $ 2 $ — $ — $ 795 $ 2

SBA Pools $ — $ — $ 2,719 $ ( 372 ) $ 2,719 $ ( 372 )

36 unchanged sentences

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

The Company does not intend to sell the securities and it is not more likely than not the Company will be required to sell the securities before recovery of their amortized cost basis, which may be maturity.

The Company does not

intend to sell the securities and it is not more likely than not the Company will be required to sell the securities before recovery of their amortized cost basis, which may be maturity.

The Company expects the fair value of the securities described above to recover as the securities approach their maturity or reset date.

Loans, Leases and Allowance

The following table shows the composition of the loan and lease portfolio at September 30, 2025 and December 31, 2024:

September 30,

The following table shows the composition of the loan and lease portfolio at March 31, 2026 and December 31, 2025:

2026 December 31,

51 unchanged sentences

No material changes have been made to the risk characteristics discussed above contained in the Company's 2025 Form 10-K.

The following tables present the credit risk profile of the Company’s loan and lease portfolio based on rating category, payment activity, and origination year as of September 30, 2025 and rating category as of December 31, 2024:

The following tables present the credit risk profile of the Company’s loan and lease portfolio based on rating category, payment activity, and origination year as of March 31, 2026 and December 31, 2025:

2026 2025 2024 2023 2022 Prior Revolving loans amortized cost basis Total

As of September 30, 2025:

As of March 31, 2026:

Commercial mortgage

Pass $ 4,220 $ 66,928 $ 30,684 $ 41,649 $ 80,511 $ 136,857 $ 45,505 $ 406,354

Special Mention 873 — — — — — — 873

Substandard — — — — — 7,648 — 7,648

8 unchanged sentences

Pass 7,680 36,194 6,735 1,913 1,509 15,387 — 69,418

Special Mention — — 429 594 — — — 1,023

Substandard — — — — — 4,900 — 4,900

2 unchanged sentences

Pass 1,840 19,004 16,966 11,005 60,392 64,027 27,649 200,883

Special Mention — — — 2,362 1,382 — — 3,744

Substandard — — — — 2,362 4,789 — 7,151

7 unchanged sentences

Pass 59 45 — 222 — 57 20,973 21,356

Special Mention — — — — — — 30 30

Substandard — — — — — — 12 12

27 unchanged sentences

Pass 31,478 14,823 1,914 1,516 15,946 105 — 65,782

Special Mention — — 429 594 — — — 1,023

Substandard — — — — — 4,900 — 4,900

2 unchanged sentences

Pass 19,060 16,545 10,946 62,286 46,369 20,269 26,246 201,721

Special Mention — — — 1,461 3,457 — — 4,918

Substandard — — — 2,362 1,355 3,456 — 7,173

Total Multi-family 19,060 16,545 10,946 64,648 47,724 23,725 26,246 208,894

21 unchanged sentences

Total current period gross charge-offs $ 60 $ 279 $ 1,016 $ 485 $ 302 $ 46 $ — $ 2,188

For the three months ended September 30, 2025 and December 31, 2024, the Company did not have any revolving loans convert to term loans.

The following tables present the Company’s loan and lease portfolio aging analysis of the recorded investment in loans and leases as of September 30, 2025 and December 31, 2024:

September 30, 2025

For the three months ended March 31, 2026 and December 31, 2025, the Company did not have any revolving loans convert to term loans.

The following tables present the Company’s loan and lease portfolio aging analysis of the recorded investment in loans and leases as of March 31, 2026 and December 31, 2025:

March 31, 2026

Delinquent Loans and Leases Current Total

27 unchanged sentences

Totals $ 1,558 $ 897 $ 16,652 $ 19,107 $ 1,174,612 $ 1,193,719 $ 4,240

The following table presents information on the Company’s nonaccrual loans and leases at September 30, 2025 and December 31, 2024:

September 30,

The following table presents information on the Company’s nonaccrual loans and leases at March 31, 2026 and December 31, 2025:

2026 December 31,

3 unchanged sentences

Construction and development 4,900 — 4,900 —

Multi-family 2,362 2,362 — —

Residential mortgage 76 76 76 76

1 unchanged sentence

Total nonaccrual loans and leases $ 15,887 $ 10,254 $ 13,156 $ 7,523

During both the three months ended September 30, 2025 and December 31, 2024, the Company recognized $ 1,000 of interest income on nonaccrual loans and leases.

The following tables present the Company's amortized cost basis of collateral dependent loans, and their respective collateral type, which are individually analyzed to determine expected credit losses as of September 30, 2025 and December 31, 2024:

September 30, 2025

Commercial Real Estate Multi-family Housing Residential Real Estate Other Total Allowance on Collateral Dependent Loans

During the three months ended March 31, 2026, the Company recognized $ 1,000 of interest income on nonaccrual loans and leases, compared to $ 3,000 for the three months ended December 31, 2025.

March 31, 2026

Commercial Real Estate Multi-family Housing Residential Real Estate Home Equity Line of Credit Other Total Allowance on Collateral Dependent Loans

Commercial mortgage $ 8,309 $ — $ — $ — $ — $ 8,309 $ 460

3 unchanged sentences

Residential mortgage — — 240 — — 240 —

Home equity — — — 30 — 30 —

Total $ 13,209 $ 7,151 $ 240 $ 30 $ 1,628 $ 22,258 $ 2,460

12 unchanged sentences

If a determination is made that a modified loan or lease has been deemed uncollectible, the loan or lease (or portion of the loan or lease) is charged-off, reducing the amortized cost basis of the loan or lease and adjusting the allowance for credit losses.

During the three and nine months ended September 30, 2025 and 2024, the Company had no new modifications to borrowers experiencing financial difficulty.

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

During the three months ended March 31, 2026 and 2025, the Company had no new modifications to borrowers experiencing financial difficulty.

There were no modified loans or leases that had a payment default during the three months ended March 31, 2026 or 2025, and that were modified in the twelve months prior to that default by borrowers experiencing financial difficulty.

Other Real Estate Owned

Other real estate owned is included in other assets on the Condensed Consolidated Balance Sheets.

There was no other real estate owned at September 30, 2025, compared to $ 37,000 of other real estate owned, consisting of foreclosed residential real estate properties, at December 31, 2024.

At September 30, 2025 and December 31, 2024, the recorded investment in consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process w as $ 289,000 a nd $ 275,000 , respectively.

There was $ 56,000 of other real estate owned, consisting of foreclosed residential real estate properties, at both March 31, 2026 and December 31, 2025.

At March 31, 2026 and December 31, 2025, the recorded investment in consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process w as $ 1,055,000 a nd $ 923,000 , respectively.

Direct Financing Leases

The following lists the components of the net investment in direct financing leases:

September 30,

2026 December 31,

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Net investment in direct finance leases $ 142,979 $ 145,806

The following table summarizes the future minimum lease payments receivable subsequent to September 30, 2025:

The following table summarizes the future minimum lease payments receivable subsequent to March 31, 2026:

Remainder of 2026 $ 49,542

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The Company estimates expected future losses for the loan's entire contractual term, taking into account expected payments when appropriate.

The allowance is an estimation based on management's evaluation of expected losses related to the Company's financial assets

measured at amortized cost.

The allowance is an estimation based on management's evaluation of expected losses related to the Company's financial assets measured at amortized cost.

It considers relevant available information from internal and external sources relating to the historical loss experience, current conditions and reasonable and supportable forecasts for the Company's outstanding loan and lease balances.

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• the effect of other external factors.

The following tables summarize changes in the allowance for credit losses by segment for the three and nine months ended September 30, 2025 and 2024, respectively:

Balances, June 30, 2025 Provision for (reversal of) credit losses Charge-offs Recoveries Balances, September 30, 2025

Commercial mortgage $ 4,788 $ ( 157 ) $ — $ — $ 4,631

Commercial and industrial 1,660 53 ( 2 ) 11 1,722

Construction and development 2,143 153 — — 2,296

Multi-family 2,652 ( 85 ) — — 2,567

Residential mortgage 1,876 ( 52 ) — 2 1,826

Home equity 211 ( 34 ) — — 177

Direct financing leases 2,512 553 ( 400 ) 118 2,783

Consumer 377 32 ( 61 ) 15 363

Total $ 16,219 $ 463 $ ( 463 ) $ 146 $ 16,365

Balances, December 31, 2024 Provision for (reversal of) credit losses Charge-offs Recoveries Balances, September 30, 2025

Commercial mortgage $ 4,486 $ 145 $ — $ — $ 4,631

Commercial and industrial 1,483 225 ( 2 ) 16 1,722

Construction and development 2,243 53 — — 2,296

Multi-family 2,660 ( 93 ) — — 2,567

Residential mortgage 1,910 ( 108 ) — 24 1,826

Home equity 184 ( 7 ) — — 177

Direct financing leases 2,469 1,595 ( 1,565 ) 284 2,783

Consumer 356 103 ( 161 ) 65 363

Total $ 15,791 $ 1,913 $ ( 1,728 ) $ 389 $ 16,365

Balances, June 30, 2024 Provision for (reversal of) credit losses Charge-offs Recoveries Balances, September 30, 2024

The following tables summarize changes in the allowance for credit losses by segment for the three months ended March 31, 2026 and 2025, respectively:

Balances, December 31, 2025 Provision for (reversal of) credit losses Charge-offs Recoveries Balances, March 31, 2026

Commercial mortgage $ 4,575 $ 238 $ — $ — $ 4,813

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Total $ 16,466 $ 621 $ ( 549 ) $ 202 $ 16,740

Balances, December 31, 2023 Provision for (reversal of) credit losses Charge-offs Recoveries Balances, September 30, 2024

Balances, December 31, 2024 Provision for (reversal of) credit losses Charge-offs Recoveries Balances, March 31, 2025

Commercial mortgage $ 4,486 $ 248 $ — $ — $ 4,734

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Total $ 15,791 $ 683 $ ( 558 ) $ 162 $ 16,078

During the third quarter of 2025, the allowance for credit losses on loans and leases increased from $ 16.2 million at June 30, 2025, to $ 16.4 million at September 30, 2025.

The increase was attributable to provisions for credit losses totaling $ 463,000 during the three months ended September 30, 2025, partially offset by net charge-offs of $ 317,000 .

During the third quarter of 2025, updates were made to our allowance for credit losses calculation, including macroeconomic inputs, credit metrics, and refreshed loss driver data.

As a result of these refinements, several loan and lease categories saw changes to their respective loss rates during the quarter.

• Commercial Mortgage – Allowance decreased as improved credit performance and lower modeled loss rates offset the impact of a $ 27.0 million increase in loan balances.

• Commercial & Industrial – Allowance increased despite a $ 2.4 million decline in balances, reflecting slightly higher modeled loss rates due to portfolio mix changes.

• Construction & Development – Allowance increased as certain project exposures were reassessed for higher loss sensitivity, while loan balances declined by $ 34.9 million.

• Multi-Family – Allowance decreased as strong collateral performance and stable market conditions led to lower modeled loss rates, while loan balances increased $ 25.2 million.

• Residential Mortgage, Home Equity, Direct Financing Leases, and Consumer – Allowances decreased in line with lower portfolio balances and stable credit trends.

Our commercial loan portfolio, consisting of commercial and multi-family real estate loans, commercial and industrial loans, and construction loans, represented 70.6 % and 69.5 % of our portfolio as of September 30, 2025 and December 31, 2024, respectively.

The allowance for credit losses on loans and leases allocated to the commercial loan portfolio represented 68.5 % and 68.9 % of our total allowance at September 30, 2025 and December 31, 2024, respectively.

During the first quarter of 2026, the allowance for credit losses on loans and leases increased from $ 16.5 million at December 31, 2025, to $ 16.7 million at March 31, 2026.

The increase was attributable to provisions for credit losses totaling $ 621,000 during the three months ended March 31, 2026, partially offset by net charge-offs of $ 347,000 .

Set forth below is a segment analysis of the loan and lease portfolio reflecting the change in the allowance for each segment, due to the change in the amount of each segment.

• Commercial Mortgage – Allowance increased as additional reserves were placed on individually evaluated loans.

• Commercial & Industrial – Allowance decreased despite a $ 2.7 million increase in balances, reflecting changes in portfolio composition as longer term loans paid off.

• Construction & Development – Allowance increased in line with loan balances increasing by $ 2.6 million.

• Multi-Family – Allowance decreased as longer term loans paid off and portfolio balances decreased $ 860,000 .

• Home Equity - Allowance increased as loan balances increased $ 1.3 million.

• Residential Mortgage, Direct Financing Leases, and Consumer – Allowances decreased in line with lower portfolio balances and stable credit trends.

Our commercial loan portfolio, consisting of commercial and multi-family real estate loans, commercial and industrial loans, and construction loans, represented 70.7 % and 70.2 % of our portfolio as of March 31, 2026 and December 31, 2025, respectively.

The allowance for credit losses on loans and leases allocated to the commercial loan portfolio represented 68.2 % and 66.9 % of our total allowance at March 31, 2026 and December 31, 2025, respectively.

Economic Outlook

Due to the future-focused nature of the calculation for the allowance for credit losses, management must make significant assumptions.

Estimating an appropriate allowance requires management to use relevant forward-looking information drawn from reasonable and supportable forecasts.

Estimating an appropriate allowance requires management to use relevant forward-looking information drawn

from reasonable and supportable forecasts.

Economic factors are a consequential part of these forecasts, and as such are evaluated periodically for developments that may impact the Company's allowance for credit losses and loan and lease portfolio.

As of September 30, 2025, several key economic factors continue to influence the Company's loan and lease portfolio.

As of March 31, 2026, several key economic factors continue to influence the Company's loan and lease portfolio.

Persistent inflation, slowing economic growth, and labor market uncertainty are contributing to a more challenging operating environment for many borrowers.

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Forecasts for these markets are summarized below:

• Columbus, Ohio – The Columbus MSA continues to experience steady economic expansion, driven by growth in technology, healthcare, and strategic development.

Job creation and infrastructure expansion are supported by over $ 2 billion in public and private development projects, while population growth sustains demand for housing, services, and consumer goods.

Challenges include persistent inflationary pressures, housing affordability constraints, and labor shortages across multiple industries.

• Cincinnati/Dayton/Springfield, Ohio – The Cincinnati/Dayton/Springfield MSA is projected to experience moderate growth.

• Columbus, Ohio – The Columbus MSA continues to experience steady economic conditions, driven by growth in healthcare and state government employment.

Job creation in professional and design services indicates high activity in engineering and related consulting, and the housing market's high demand is supported by long-term population growth and regional investments.

Despite the positive momentum, the market faces challenges such as persistent inflationary pressures, affordability constraints, and labor shortages across multiple industries.

• Cincinnati/Dayton/Springfield, Ohio – The Cincinnati/Dayton/Springfield MSA is projected to experience moderate economic growth during 2026.

Cincinnati leads the region in employment and GDP gains, supported by manufacturing, construction, and technology investments.

Dayton remains stable despite slower job growth and inflationary pressures.

Dayton is experiencing economic growth in manufacturing, aerospace, and defense alongside a tightening industrial real estate market.

The region is experiencing continued growth supported by increased investment and declining industrial vacancy rates;

labor demand remains stable.

Ongoing labor market constraints, particularly in skilled trades and technology fields, persist.

The region’s connection with Columbus as part of Ohio’s emerging Silicon Corridor enhances opportunities for investment, workforce development, and regional competitiveness.

• Indianapolis, Indiana – The Indianapolis MSA continues to demonstrate favorable economic conditions, supported by advanced manufacturing, technology, and urban revitalization initiatives.

Downtown capital projects totaling approximately $ 9 billion are underway, while consumer demand and population growth of about 1.2 % support urban momentum.

Inflation, elevated interest rates, and tariff-related impacts on manufacturing present ongoing challenges;

• Indianapolis, Indiana – The Indianapolis MSA continues to demonstrate moderate growth driven by investment in pharmaceutical manufacturing and ongoing urban revitalization initiatives.

Downtown capital projects totaling approximately $ 6 billion are underway;

the READI 2.0 program commits funding toward improving quality of life and infrastructure in the region.

Inflation and tariff-related impacts on manufacturing present ongoing challenges;

however, the region remains well positioned relative to peer metros due to its diversified and innovation-driven economy.

The overall economic outlook remains complex and uncertain, creating a challenging environment requiring continued vigilance and adaptability.

Potential economic volatility could materially affect the Company’s loan and lease portfolio,

including the allowance for credit losses.

Potential economic volatility could materially affect the Company’s loan and lease portfolio, including the allowance for credit losses.

As a result, the Company expects that future estimates may fluctuate throughout the remainder of 2026.

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Adjustments to the allowance, either additional provisions or reversals, are recorded in the provision for (reversal of) credit losses in the Condensed Consolidated Statements of Income.

The following tables detail activity in the allowance for credit losses on unfunded commitments during the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30,

Beginning balance $ 584 $ 1,103

Reversal of credit losses ( 194 ) ( 436 )

Ending balance $ 390 $ 667

Nine Months Ended September 30,

The following table details activity in the allowance for credit losses on unfunded commitments during the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

Beginning balance $ 328 $ 558

Reversal of credit losses ( 168 ) ( 975 )

Provision for credit losses 72 48

Ending balance $ 400 $ 606

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Recurring Measurements

The following tables present the fair value measurements of assets recognized in the Condensed Consolidated Balance Sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2025 and December 31, 2024:

Fair Value Measurements Using

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(Level 2) Significant

September 30, 2025

March 31, 2026

Available for sale securities

Treasury securities $ 794 $ 794 $ — $ —

SBA Pools $ 2,948 $ — $ 2,948 $ —

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Available for sale securities

Treasury securities $ 3,161 $ 3,161 $ — $ —

SBA Pools $ 3,124 $ — $ 3,124 $ —

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Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.

There have been no significant changes in the valuation techniques during the nine months ended September 30, 2025.

There have been no significant changes in the valuation techniques during the three months ended March 31, 2026.

Available for Sale Securities

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Level 2 securities include agency securities, obligations of state and political subdivisions, and mortgage-backed securities.

Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment

In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

During the nine months ended September 30, 2025, approximately $ 1.3 million of state and municipal obligations were transferred from Level 2 to Level 3 due to the absence of observable market inputs and reliance on the original purchase price for valuation.

There was no other activity in Level 3 investments during the nine months ended September 30, 2025.

Nonrecurring Measurements

As of September 30, 2025 and December 31, 2024, there were no assets or liabilities measured at fair value on a nonrecurring basis.

As of March 31, 2026 and December 31, 2025, there were no assets or liabilities measured at fair value on a nonrecurring basis.

Fair Value of Financial Instruments

The following tables present estimated fair values of the Company’s financial instruments at September 30, 2025 and December 31, 2024:

The following tables present estimated fair values of the Company’s financial instruments at March 31, 2026 and December 31, 2025:

Fair Value Measurements Using

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(Level 2) Significant

September 30, 2025

March 31, 2026

Financial assets

Cash and cash equivalents $ 34,798 $ 34,798 $ — $ —

Interest-earning time deposits 2,820 — 2,820 —

Available for sale securities 245,519 — 244,056 1,463

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FHLB advances 240,000 — 240,832 —

Other borrowings 12,000 — 12,041 —

Interest payable 3,457 — 3,457 —

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The following table presents the computation of basic and diluted EPS for the periods indicated:

Three Months Ended September 30,

Net income $ 3,597 $ 2,472

Shares outstanding for Basic EPS:

Average shares outstanding 10,420,613 10,986,327

average restricted stock award shares not vested 31,476 83,379

average unearned ESOP Shares 761,835 815,942

Shares outstanding for Basic EPS 9,627,302 10,087,006

Additional Dilutive Shares 266,551 129,388

Shares outstanding for Diluted EPS 9,893,853 10,216,394

Basic Earnings Per Share $ 0.37 $ 0.25

Diluted Earnings Per Share $ 0.36 $ 0.24

Nine Months Ended September 30,

Three Months Ended March 31,

Net income $ 2,785 $ 1,968

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The Company matches employees' contributions at the rate of 50 percent for the first six percent of base salary contributed by participants.

The Company’s expense for the plan was $ 61,000 and $ 192,000 for the three and nine months ended September 30, 2025, respectively, and $ 76,000 and $ 214,000 for the three and nine months ended September 30, 2024, respectively.

The Company’s expense for the plan was $ 36,000 for the three months ended March 31, 2026 and $ 65,000 for the three months ended March 31, 2025.

Employee Stock Ownership Plan

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Unearned ESOP shares which have not yet been allocated to ESOP participants are excluded from the computation of average shares outstanding for earnings per share calculation.

Accordingly, 748,456 and 789,035 shares of common stock acquired by the ESOP were shown as a reduction of stockholders’ equity at September 30, 2025 and December 31, 2024, respectively.

Accordingly, $ 9,803,000 and $ 9,987,000 of common stock acquired by the ESOP was shown as a reduction of stockholders’ equity at March 31, 2026 and December 31, 2025, respectively.

Shares are released to participants proportionately as the loan is repaid.

ESOP expense for the three and nine months ended September 30, 2025 was $ 193,000 and $ 552,000 , respectively, and was $ 167,000 and $ 476,000 for the three and nine months ended September 30, 2024, respectively.

September 30,

ESOP expense for the three months ended March 31, 2026 and 2025 was $ 188,000 and $ 178,000 , respectively.

2026 December 31,

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Restricted Stock Awards .

On October 1, 2020, the Company awarded 449,086 shares of common stock under the 2020 EIP with a grant date fair value of $ 10.53 per share (total fair value of $ 4.7 million at issuance) to eligible participants.

On April 1, 2021, the Company awarded an additional 4,000 shares of common stock under the 2020 EIP with a grant date fair value of $ 13.86 (total fair value of $ 55,000 at issuance) to eligible participants.

These awards vested in five equal annual installments with the first vesting having occurred on June 30, 2021.

As of September 30, 2025, these awards were fully vested.

On July 15, 2025, the Company awarded 37,126 shares of common stock under the 2020 EIP with a grant date fair value of $ 13.37 per share (total fair value of $ 496,000 at issuance) to eligible participants.

These awards vest in five equal installments with the first vesting occurring on June 30, 2026.

Forfeited shares may be awarded to other eligible recipients in future grants until the 2020 EIP terminates in September 2030.

The following table summarizes the restricted stock award activity in the 2020 EIP during the nine months ended September 30, 2025.

Nine Months Ended September 30, 2025

Under the Company's 2020 Equity Incentive Plan (the "2020 EIP"), 453,086 shares of common stock were granted in fiscal years 2020 and 2021 with grant date fair values ranging from $ 10.53 to $ 13.86 per share.

As of March 31, 2026, these awards were fully vested.

On July 15, 2025, the Company awarded 37,126 shares of common stock under the 2020 EIP to eligible participants.

The grant date fair value was $ 13.37 per share, for a total fair value of $ 496,000 at issuance.

On November 20, 2025, the Company awarded an additional 51,253 shares of common stock under the 2020 EIP with a grant date fair value of $ 12.92 per share (total fair value of $ 662,000 at issuance) to eligible participants.

These awards vest in five equal installments, with the first installment vesting on June 30, 2026, subject to the participant's continued service.

Any shares forfeited prior to vesting may be reissued to eligible recipients in future grants until the 2020 EIP expires in September 2030.

The following table summarizes the restricted stock award activity in the 2020 EIP during the three months ended March 31, 2026.

Three Months Ended March 31, 2026

Number of Restricted Shares Weighted Average Grant Date Fair Value

Non-vested, beginning of period 88,379 $ 13.11

Granted 37,126 13.37

Vested ( 83,379 ) 10.55

Forfeited — —

Non-vested, September 30, 2025 37,126 13.37

Total compensation cost recognized in the Condensed Consolidated Statements of Income for restricted stock awards during the three and nine months ended September 30, 2025 was $ 22,000 and $ 456,000 , and the related tax benefit recognized was $ 5,000 and $ 96,000 , respectively.

As of September 30, 2025, there was $ 474,000 of unrecognized compensation expense related to restricted stock awards.

Non-vested, March 31, 2026 88,379 13.11

Total compensation cost recognized in the Condensed Consolidated Statements of Income for restricted stock awards during the three months ended March 31, 2026 and 2025 was $ 79,000 and $ 217,000 , and the related tax benefit recognized was $ 17,000 and $ 46,000 , respectively.

As of March 31, 2026, there was $ 1.0 million of unrecognized compensation expense related to restricted stock awards.

Stock Option Plan.

On October 1, 2020, the Company awarded options to purchase 1,095,657 shares of common stock under the 2020 EIP with an exercise price of $ 10.53 per share, the fair value of a share of the Company's common stock on the date of

grant, to eligible participants.

On April 1, 2021, the Company awarded options to purchase 8,000 shares of common stock under the 2020 EIP with an exercise price of $ 13.86 per share, the fair value of a share of the Company's common stock on the date of the grant, to eligible participants.

These awards vested in five equal annual installments with the first vesting having occurred on June 30, 2021.

As of September 30, 2025, these awards were fully vested.

Under the Company's 2020 EIP, options to purchase an aggregate of 1,103,657 shares of common stock were granted in fiscal years 2021 and 2022 at exercise prices ranging from $ 10.53 to $ 13.86 per share.

As of March 31, 2026, these awards were fully vested.

On July 15, 2025, the Company awarded options to purchase 55,467 shares of common stock under the 2020 EIP with an exercise price of $ 13.37 per share, the fair value of a share of the Company's common stock on the date of grant, to eligible participants.

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Forfeited options are available to be awarded in future grants until the 2020 EIP terminates in September 2030.

The following table summarizes the stock option activity in the 2020 EIP during the nine months ended September 30, 2025.

Nine Months Ended September 30, 2025

The following table summarizes the stock option activity in the 2020 EIP during the three months ended March 31, 2026.

Three Months Ended March 31, 2026

Number of Shares Weighted-Average Exercise Price

Balance at beginning of period 760,852 $ 10.76

Granted 55,467 13.37

Exercised — —

Forfeited/expired — —

Balance, September 30, 2025 1,071,964 10.55

Balance, March 31, 2026 760,852 10.76

Exercisable at end of period 705,385 $ 10.56

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Expected life of options 6.5 years

A summary of the status of the Company stock option shares as of September 30, 2025 is presented below.

A summary of the status of the Company stock option shares as of March 31, 2026 is presented below.

Shares Weighted Average Grant Date Fair Value

Non-vested, beginning of year 55,467 $ 3.00

Vested ( 204,096 ) 2.91

Granted 55,467 3.00

Forfeited — —

Non-vested, September 30, 2025 55,467 $ 3.00

Total compensation cost recognized in the Condensed Consolidated Statements of Income for option-based payment arrangements for the three and nine months ended September 30, 2025 was $ 7,000 and $ 300,000 , and the related tax benefit recognized was $ 0 and $ 31,000 , respectively.

As of September 30, 2025, there was $ 154,000 in unrecognized compensation expense related to the stock option awards.

Non-vested, March 31, 2026 55,467 $ 3.00

Total compensation cost recognized in the Condensed Consolidated Statements of Income for option-based payment arrangements for the three months ended March 31, 2026 and 2025 was $ 8,000 and $ 146,000 , and the related tax benefit recognized was $ 0 and $ 16,000 , respectively.

As of March 31, 2026, there was $ 137,000 in unrecognized compensation expense related to the stock option awards.

Qualified Affordable Housing Investments

The Company has investments in certain limited partnerships that fund affordable housing projects and provide the Company with low income housing tax credits ("LIHTC").

At September 30, 2025 and December 31, 2024, the balance of these investments in LIHTC totaled $ 820,000 and $ 951,000 , respectively.

At March 31, 2026 and December 31, 2025, the balance of these investments

in LIHTC totaled $ 731,000 and $ 775,000 , respectively.

These balances are reflected in the other assets line of the Condensed Consolidated Balance Sheets.

The assets are amortized as a component of the provision for income taxes.

The following table summarizes the amortization expense and tax credits recognized for the Company's LIHTC investments for the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

The following table summarizes the amortization expense and tax credits recognized for the Company's LIHTC investments for the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

Amortization expense $ 44 $ 44

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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