What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-11-07 compared with 2024-08-08 · 161 added, 152 removed, 314 unchanged (50% of the section changed)

27 unchanged sentences

the failure of the federal government to raise the federal debt ceiling and/or possible future

government shutdowns over budget disagreements, slowing gross domestic product, tariffs,

withdrawal from or significant renegotiation of trade agreements, trade wars, and

other factors beyond our control, any of which may result in adverse impacts on our deposit

levels and composition, the quality of investment securities available for purchase, demand

for loans, the ability of our borrowers to repay their loans, and the value of the collateral

securing loans made by us;

government shutdowns over budget disagreements, uncertainties surrounding the November

Presidential election and potential changes in the U.S.

Senate and House of Representatives,

slowing gross domestic product, tariffs, a U.S.

withdrawal from or significant renegotiation

of trade agreements, trade wars, and other factors beyond our control, any of which may result

in adverse impacts on our deposit levels and composition, the quality of investment securities

available for purchase, demand for loans, the ability of our borrowers to repay their loans,

and the value of the collateral securing loans made by us;

and future bank failures may reduce customer confidence, affect sources of funding and liquidity,

87 unchanged sentences

operates as a loan subsidiary in servicing and working out problem loans.

Bank Insurance, LLC (“SBI”) is an Ohio corporation and a wholly owned subsidiary of State Bank incorporated in June of 2010.

Bank Insurance, LLC (“SBI”) is an Ohio corporation and a wholly owned subsidiary of State Bank incorporated in June 2010.

SBI is an insurance company that engages in the sale of insurance products to retail and commercial customers of State Bank.

48 unchanged sentences

could lead to an impairment of goodwill that could adversely impact earnings in future periods.

Months Ended June 30, 2024, compared to Three Months Ended June 30, 2023

Net income for the second quarter of 2024 was $3.1 million compared to net income of $3.1 million for the second quarter

of 2023, an increase of 1.2 percent.

Diluted earnings per share (“DEPS”) of $0.47 for the second quarter of 2024 were slightly

higher compared to the DEPS of $0.44 for the second quarter of 2023.

Net income for the second quarter of 2024 was positively impacted

by higher loan income, which was offset by higher interest expense on deposits and wholesale borrowings.

Interest income continues to

improve and was up 2.3% compared to the linked quarter.

Mortgage loan volume was up 14.9 percent compared to the prior year second quarter,

while sales of originated loans were up 16.5 percent when compared to the second quarter of 2023.

Months Ended September 30, 2024, compared to Three Months Ended September 30, 2023

Net income for the third quarter of 2024 was $2.4 million compared to net income of $2.7 million for the third quarter

of 2023, a decrease of 12.4 percent.

Diluted earnings per share (“DEPS”) of $0.35 for the third quarter of 2024 were slightly

lower compared to the DEPS of $0.39 for the third quarter of 2023.

Net income for the third quarter of 2024 was positively impacted by

higher interest income on loans, which was offset by higher interest expense on deposits and wholesale borrowings.

Total interest income

continues to improve and was up 11.8 percent compared to the prior year.

Mortgage loan volume was up 15.5 percent compared to the prior

year third quarter, while sales of originated loans were up 13.3 percent when compared to the third quarter of 2023.

for Credit Losses:

The second quarter provision for credit losses was zero as compared to $145,000 provision for the prior year

The Company had net recoveries of $16,000 for the second quarter of 2024 compared to net charge-offs of $22,000 for the year-ago

Total delinquent loans (consisting of nonaccruing loans and loans greater than 30 days past due) ended the quarter at $5.3 million,

or 0.52 percent of total loans.

The Company adopted ASC 326 on January 1, 2023, which increased the allowance for credit losses (“ACL”)

by $1.4 million.

The third quarter provision for credit losses was $200,000 as compared to a $6,000 recovery of provision for

the prior year third quarter.

The Company had net charge-offs of $27,000 for the third quarter of 2024 compared to net charge-offs of

$5,000 for the year-ago quarter.

Total delinquent loans (consisting of nonaccrual loans and loans greater than 30 days past due) ended

the quarter at $6.7 million, or 0.65 percent of total loans.

The Company adopted ASC 326 on January 1, 2023, which increased the allowance

for credit losses (“ACL”) by $1.4 million.

Asset Quality Review – For the Period Ended

($ in thousands)

Net charge-offs (recoveries) –

September 30,

Net charge-offs (recoveries) – QTD/YTD

Nonaccruing loans

4 unchanged sentences

Allowance for credit losses/Nonperforming loans

Total revenue, consisting of net interest income and noninterest income, was $14.0 million for the second quarter of

2024, a decrease of $0.2 million, or 1.0 percent, from the $14.2 million generated during the second quarter of 2023.

interest income (“NII”) for the second quarter of 2024 was $9.7 million, which was down $0.2 million from the prior year

second quarter’s $9.8 million.

Comparing the second quarter of 2024 to the prior year second quarter, the Company’s earning

assets decreased $2.7 million, and the average yield on earning assets increased by 41 basis points.

The net interest margin for the

second quarter of 2024 was 3.11 percent compared to 3.16 percent for the second quarter of 2023.

Funding costs (interest paid to consumers

and other entities) for deposits and other interest-bearing liabilities for the second quarter of 2024 were 2.47 percent compared to

1.90 percent for the prior year second quarter.

The increase in funding costs has been driven by the increased competition among banks

for funding sources, although interest expense did decline from the linked quarter for the first time in over two years.

income was $4.4 million for the second quarter of 2024, which was level to the prior year second quarter.

Operating revenue, consisting of net interest income (“NII”) and noninterest income, was $14.3 million for

the third quarter of 2024, an increase of $0.6 million, or 4.5 percent, from the $13.7 million generated during the third quarter of

for the third quarter of 2024 was $10.2 million, which was up $0.65 million from the prior year third quarter’s $9.5 million.

the third quarter of 2024 to the prior year third quarter, the Company’s earning assets increased $44.3 million, and the average

yield on earning assets increased by 38 basis points.

The net interest margin for the third quarter of 2024 was 3.17 percent compared

to 3.08 percent for the third quarter of 2023.

Funding costs (interest paid to consumers and other entities) for deposits and other interest-bearing

liabilities for the third quarter of 2024 were 2.53 percent compared to 2.18 percent for the prior year third quarter.

Total noninterest income was $4.1 million for the

third quarter of 2024, which decreased slightly compared to $4.2 million for the prior year third quarter.

In addition to the mortgage

revenue detailed below, wealth management revenue was slightly down from the prior year.

Recapture of mortgage servicing rights increased

noninterest income by $0.04 million in the quarter, compared to an impairment of $0.02 million in the prior year second quarter.

Title contributed revenue of $0.4 million in the second quarter of 2024, down $0.05 million from the prior year.

Noninterest income as

a percentage of average assets for the second quarter of 2024 was 1.31 percent compared to 1.30 percent for the prior year second quarter.

Bank originated $75.1 million of mortgage loans during the second quarter of 2024, of which $55.8 million were sold with the remainder

revenue detailed below, wealth management revenue was slightly up from the prior year.

Impairment of mortgage servicing rights decreased

noninterest income by $0.47 million in the quarter, compared to an impairment of $0.08 million in the prior year third quarter.

contributed revenue of $0.5 million in the third quarter of 2024, up $0.06 million from the prior year.

Noninterest income as a percentage

of average assets for the third quarter of 2024 was 1.20 percent compared to 1.24 percent for the prior year third quarter.

Bank originated $70.7 million of mortgage loans during the third quarter of 2024, of which $61.3 million were sold with the remainder

of loans held for investment.

This compares to $65.4 million originated for the second quarter of 2023, of which $47.9 million were sold

This compares to $61.2 million originated for the third quarter of 2023, of which $54.1 million were sold

with the remainder of loans held for investment.

These second quarter 2024 originations and subsequent sales resulted in $1.3 million

of gains, up $0.2 million from the gains for the second quarter of 2023.

Net mortgage banking revenue was $1.84 million for the second

quarter of 2024 compared to $1.55 million for the second quarter of 2023.

The economic headwinds of higher interest rates and limited

housing supply in our markets has kept overall production down below historical levels.

These third quarter 2024 originations and subsequent sales resulted in $1.3 million

of gains, up $0.1 million from the gains for the third quarter of 2023.

Net mortgage banking revenue was $1.35 million for the third

quarter of 2024 compared to $1.65 million for the third quarter of 2023.

Noninterest Expense:

Noninterest expense for the second quarter of 2024 was $10.7 million, which was up $0.4 million compared

to $10.3 million in the prior-year second quarter.

Commission expense for both mortgage and Small Business Administration (“SBA”)

is higher compared to the prior year due to the total origination volume.

Income taxes for the second quarter of 2024 were $0.3 million compared to $0.6 million for the second quarter of 2023.

This quarter included a recapture of a prior period over accrual and the higher impact of our captive insurance agency, SB Captive.

Months Ended June 30, 2024, compared to Six Months Ended June 30, 2023

Net income for the first six months of 2024 was $5.5 million compared to net income of $5.5 million for the first six

Total noninterest expense for the third quarter of 2024 was $11.0 million, which was up $0.5 million compared

to $10.5 million in the prior-year third quarter.

Commission expense for mortgage origination and adding additional talent have increased

our compensation expense levels.

Income taxes for the third quarter of 2024 were $0.75 million compared to $0.54 million for the third quarter of 2023.

Months Ended September 30, 2024, compared to Nine Months Ended September 30, 2023

Net income for the first nine months of 2024 was $7.8 million compared to net income of $8.2 million for the first nine

months of 2023, a decrease of 4.6 percent.

Diluted earnings per share (“DEPS”) of $0.82 were up 6.8 percent compared to the

DEPS of $0.79 for the first six months of 2023.

Net income for the first six months of 2024 was positively impacted by the Company’s

recapture of temporary impairment of $0.2 million on its mortgage servicing rights, while net income for the 2023 first six months was

positively impacted by a recapture of mortgage servicing rights of $0.04 million.

Mortgage loan volume was up 2.9 percent during the

first six months of 2024, with a higher percentage of originated volume sold on the secondary market, as compared to the same period

Funding costs for the first six months of 2024 were up nearly 50 percent as compared to the prior year first six months.

Diluted earnings per share (“DEPS”) of $1.17 were down 0.8 percent compared to

the DEPS of $1.18 for the first nine months of 2023.

Net income for the first nine months of 2024 was negatively impacted by the Company’s

impairment of $0.25 million on its mortgage servicing rights, while net income for the first nine months of 2023 was negatively impacted

by an impairment of mortgage servicing rights of $0.04 million.

Mortgage loan volume was up 7.3 percent during the first nine months

of 2024, with a higher percentage of originated volume sold on the secondary market, as compared to the same period in 2023.

costs for the first nine months of 2024 were up nearly 40 percent as compared to the prior year first nine months.

for Credit Losses:

The first six months of 2024 provision for credit losses was zero as compared to $0.4 million in provision

for the prior year first six months.

Net charge-offs for the current year were $41,000 compared to net charge-offs of $83,000 for the

year-ago first six months.

Total revenue, consisting of net interest income and noninterest income, was $27.2 million for the first six months

of 2024, a decrease of $1.0 million, or 3.6 percent, from the $28.2 million generated during the first six months of 2023.

for the first six months of 2024 was $18.8 million, which was down $1.3 million from the prior year first six months $20.2 million.

net interest margin for the first six months of 2024 was 3.02 percent compared to 3.24 percent for the first six months of 2023 as funding

costs increased faster than the yield on earnings assets.

Funding costs (interest paid to consumers and other entities) for interest

bearing liabilities for the first six months of 2024 were 2.51 percent compared to 1.69 percent for the prior year first six months.

income was $8.3 million for the first six months of 2024, which was up $0.3 million from the prior year first six months $8.0 million.

In addition to the mortgage revenue detailed below, recapture of our mortgage servicing rights impairment increased noninterest income

in the first six months by nearly $0.2 million compared to the first six months of 2023.

Our title agency contributed revenue

of $0.7 million in the first six months of 2024, down $0.1 million from the prior year first six months level of $0.8 million.

Bank originated $118.0 million of mortgage loans during the first six months of 2024, of which $92.5 million was sold with the remainder

The first nine months of 2024 provision for credit losses was $0.2 million as compared to $0.4 million in

provision for the prior year first nine months.

Net charge-offs for the current year were $68,000 compared to net charge-offs of $88,000

for the year-ago first nine months.

Operating revenue, consisting of net interest income (NII) and noninterest income, was $41.5 million for the first nine

months of 2024, a decrease of $0.4 million, or 0.9 percent, from the $41.9 million generated during the first nine months of 2023.

NII for the first nine months of 2024 was $29.0 million,

which was down $0.7 million from NII of $29.7 million for the prior year first nine months.

The net interest margin for the first nine

months of 2024 was 3.08 percent compared to 3.18 percent for the first nine months of 2023 as funding costs increased faster than the

yield on earnings assets.

Funding costs (interest paid to consumers and other entities) for interest bearing liabilities for the first

nine months of 2024 were 2.52 percent compared to 1.85 percent for the prior year first nine months.

noninterest income was $12.5 million for the first nine months of 2024, which was up $0.3 million from $12.2 million for the prior year

first nine months.

In addition to the mortgage revenue detailed below, impairment of our mortgage servicing rights decreased noninterest

income in the first nine months by slightly over $0.2 million compared to the first nine months of 2023.

Our title agency contributed

revenue of $1.2 million in the first nine months of 2024, down $0.1 million from the prior year first nine months level of $1.3 million.

Bank originated $188.7 million of mortgage loans during the first nine months of 2024, of which $153.7 million was sold with the remainder

of loans held for investment.

This compares to $114.8 million originated for the first six months of 2023, of which $73.7 million was

This compares to $176.0 million originated for the first nine months of 2023, of which $127.8 million was

sold with the remainder of loans held for investment.

These 2024 year-to-date mortgage originations and subsequent sales resulted in

$2.1 million of gains, up $0.4 million from the $1.7 million in gains for the first six months of 2023.

$3.4 million of gains, up $0.5 million from the $2.9 million in gains for the first nine months of 2023.

Net mortgage banking revenue

was $3.4 million for the first six months of 2024 compared to $2.8 million for the first six months of 2023.

was $4.7 million for the first nine months of 2024 compared to $4.4 million for the first nine months of 2023.

Noninterest Expense:

Noninterest expense for the first six months of 2024 was $21.0 million, which was down $0.1 million compared

to $21.1 million in the prior-year first six months.

Commission and benefit expense was down compared to the prior year due to lower

staffing levels and lower medical costs.

Income taxes for the first six months of 2024 were $0.7 million (effective rate of 11.9 percent) compared to $1.1 million

(effective rate of 17.2 percent) for the first six months of 2023.

Total noninterest expense for the first nine months of 2024 was $32.0 million, which was up $0.4 million

compared to $31.6 million in the prior-year first nine months.

Salaries and employee benefits expense was up compared to the prior year

due to higher commission levels and higher medical insurance costs.

Income taxes for the first nine months of 2024 were $1.5 million (effective rate of 16.0 percent) compared to $1.7 million

(effective rate of 17.0 percent) for the first nine months of 2023.

in Financial Condition

assets at June 30, 2024, were $1.34 billion, still largely unchanged since December 31, 2023.

Total loans, net of unearned income, were

$1.01 billion as of June 30, 2024, up $5.2 million, or 0.5 percent, from year-end.

Total deposits at June 30, 2024, were $1.11 billion,

an increase of $45.0 million, or 3.9 percent, since 2023 year end.

Total assets at September 30, 2024, were $1.39 billion,

up $50.7 million or 3.8 percent since December 31, 2023.

Total loans, net of unearned income, were $1.03 billion as of September 30, 2024,

up $29.7 million, or 3.0 percent, from year-end.

Total deposits at September 30, 2024, were $1.16 billion, an increase of $89.3 million,

or 8.3 percent, since 2023 year end.

funds (consisting of FHLB advances, repurchase (“REPO”) agreements, trust preferred securities and subordinated debt) totaled

$80.2 million at June 30, 2024.

This is down from year-end 2023 when borrowed funds totaled $126.9 million due to the paydown of FHLB

Total equity for the Company of $125.5 million now stands at 9.4 percent of total assets compared to the December 31, 2023,

level of $124.3 million or 9.3 percent of total assets.

Adjusting for the temporary impairment of Accumulated Other Comprehensive Loss,

total equity would increase to $157.3 million or 11.7% of total assets.

$80.2 million at September 30, 2024.

This is down from year-end 2023 when borrowed funds totaled $126.9 million due to the paydown of

FHLB advances.

Total shareholders’ equity for the Company of $132.8 million now stands at 9.5 percent of total assets compared

to the December 31, 2023, level of $124.3 million or 9.3 percent of total assets.

Adjusting for the temporary impairment of Accumulated

Other Comprehensive Loss, total equity would increase to $157.7 million or 11.3 percent of total assets.

allowance for credit losses of $15.3 million is down $0.5 million from the December 2023 year-end level due to $0.07 million of net charge-offs

and zero provision for the year.

The Company has had stable to slightly weaker asset quality through the first six months of 2024, with

the non-performing asset ratio at 39 basis points and coverage on non-performing loans at 330 percent.

of June 30, 2024, based on the computations for the FFIEC 041 Consolidated Reports of Condition and Income filed by State Bank with the

Federal Reserve Board, State Bank was classified as “well capitalized” under the regulatory framework for prompt corrective

and $0.44 million in negative provision for loans, offset by an increase due to unfunded commitments.

The Company has had stable asset

quality through the first nine months of 2024, with the non-performing asset ratio at 40 basis points and coverage on non-performing

loans at 277 percent.

of September 30, 2024, based on the computations for the FFIEC 041 Consolidated Reports of Condition and Income filed by State Bank with

the Federal Reserve Board, State Bank was classified as “well capitalized” under the regulatory framework for prompt corrective

To be categorized as well capitalized, State Bank must maintain capital ratios as set forth in the table below.

conditions or events since June 30, 2024, that management believes have changed State Bank’s capital classification.

conditions or events since September 30, 2024, that management believes have changed State Bank’s capital classification.

adopted CECL on January 1, 2023, which reduced capital levels by $2.0 million.

1 unchanged sentence

as the reduction in capital did not have a material impact to tangible and regulatory capital levels.

Bank’s actual capital levels and ratios as of June 30, 2024, and December 31, 2023, are presented in the following table.

levels are presented for State Bank only as the Company is exempt from quarterly reporting on capital levels at the holding company level:

Bank’s actual capital levels and ratios as of September 30, 2024, and December 31, 2023, are presented in the following table.

Capital levels are presented for State Bank only as the Company is exempt from quarterly reporting on capital levels at the holding company

For Capital Adequacy

To Be Well Capitalized Under

Prompt Corrective Action

Capitalized Under Prompt

Corrective Action

($ in thousands)

As of June 30, 2024

As of September 30, 2024

Tier I Capital to average assets

8 unchanged sentences

capital requirements commonly referred to as “Basel III” were fully phased in as of January 1, 2019, and are reflected in

the June 30, 2024, capital table above.

Management opted out of the accumulated other comprehensive income treatment under the new requirements

and, as such, unrealized gains and losses from available-for-sale securities will continue to be excluded from State Bank’s regulatory

the capital table above.

Management opted out of the accumulated other comprehensive income treatment under the new requirements and,

as such, unrealized gains and losses from available-for-sale securities will continue to be excluded from State Bank’s regulatory

relates primarily to the Company’s ability to fund loan demand, meet deposit customers’ withdrawal requirements and provide

3 unchanged sentences

These assets are commonly referred to as liquid

Liquid assets totaled $240.1 million at June 30, 2024, compared to $246.7 million at December 31, 2023.

Liquid assets totaled $271.5 million at September 30, 2024, compared to $246.7 million at December 31, 2023.

risk arises from the possibility that the Company may not be able to meet the Company’s financial obligations and operating cash

10 unchanged sentences

Company’s commercial real estate, first mortgage residential, agricultural and multi-family mortgage portfolio of $838.3 million

at June 30, 2024, and $807.8 million at December 31, 2023, which can and has been used to collateralize borrowings, is an additional

at September 30, 2024, and $807.8 million at December 31, 2023, which can and has been used to collateralize borrowings, is an additional

source of liquidity.

1 unchanged sentence

its liquidity needs.

At June 30, 2024, all eligible commercial real estate, first mortgage residential, agricultural and multi-family

At September 30, 2024, all eligible commercial real estate, first mortgage residential, agricultural and multi-family

mortgage loans were pledged under an FHLB blanket lien.

1 unchanged sentence

of the ability of the Company to maintain an adequate level of liquidity.

A discussion of the cash flow statements for the six months

ended June 30, 2024, and June 30, 2023 follows.

Company experienced negative cash flows from operating activities for the six months ended June 30, 2024, and June 30, 2023.

used in operating activities was $.1 million for the six months ended June 30, 2024, and $.9 million for the six months ended June 30,

Highlights for the current year include $92.5 million in proceeds from the sale of loans, which is up $18.8 million from the prior

Originations of loans held for sale was a use of cash of $96.7 million, which is up $20.4 million from the prior year .

six months ended June 30, 2024, there was a gain on sale of loans of $2.2 million, and depreciation and amortization on premises and

equipment of $1.1 million.

Company experienced positive cash flows from investing activities for the six months ended June 30, 2024, and negative cash flows from

investing activities for the six months ended June 30, 2023.

Net cash provided by investing activities was $3.7 million for the six months

ended June 30, 2024, and net cash used in investing activities was $14.0 million for the six months ended June 30, 2023.

Highlights for

the current year include an increase of $5.2 million in loans, which is down $17.7 million from the prior year six-month period.

cash payments were offset by $9.1 million in proceeds from maturities and sales of securities, which is down $1.2 million from the prior

year six-month period.

Company experienced negative cash flows from financing activities for the six months ended June 30, 2024, and positive cash flows from

financing activities for the six months ended June 30, 2023.

Net cash used by financing activities was $4.6 million for the six months

ended June 30, 2024, and net cash provided by financing activities was $8.1 million for the six months ended June 30, 2023.

for the current period include a $41.9 million increase in transaction deposits and a $3.1 million increase in time deposits for the

six months ended June 30, 2024.

This compares to the prior year six-month period where transaction deposits decreased by $64.3 million

and time deposits increased by $48.8 million.

Net repayments of Federal Home Loan Bank advances for the six months ended June 30, 2024,

were $48.6 million, compared to net proceeds of $21.3 million for the prior year six-month period.

A discussion of the cash flow statements for the nine months

ended September 30, 2024, and September 30, 2023 follows.

Company experienced positive cash flows from operating activities for the nine months ended September 30, 2024, and September 30, 2023.

Net cash provided by operating activities was $3.5 million for the nine months ended September 30, 2024, and $7.2 million for the nine

months ended September 30, 2023.

Highlights for the current year include $153.7 million in proceeds from the sale of loans, which is

up $25.9 million from the prior year.

Originations of loans held for sale was a use of cash of $158.3 million, which is up $31.1 million

from the prior year .

For the nine months ended September 30, 2024, there was a gain on sale of loans of $3.5 million, and depreciation

and amortization on premises and equipment of $1.6 million.

Company experienced negative cash flows from investing activities for the nine months ended September 30, 2024, and September 30, 2023.

Net cash used in investing activities was $14.9 million for the nine months ended September 30, 2024, and $10.3 million for the nine

months ended September 30, 2023.

Highlights for the current year include an increase of $29.8 million in loans, which is up $2.7 million

from the prior year nine-month period.

These cash payments were offset by $14.1 million in proceeds from maturities and sales of securities,

which is down $2.9 million from the prior year nine-month period.

Company experienced positive cash flows from financing activities for the nine months ended September 30, 2024, and negative cash flows

from financing activities for the nine months ended September 30, 2023.

Net cash provided by financing activities was $37.8 million for

the nine months ended September 30, 2024, and net cash used in financing activities was $5.6 million for the nine months ended September

Highlights for the current period include a $79.8 million increase in transaction deposits and a $9.6 million increase in time

deposits for the nine months ended September 30, 2024.

This compares to the prior year nine-month period where transaction deposits decreased

by $54.2 million and time deposits increased by $52.9 million.

Net repayments of Federal Home Loan Bank advances for the nine months

ended September 30, 2024, were $48.6 million, compared to $0.5 million for the prior year nine-month period.

Off-Balance-Sheet

3 unchanged sentences

Company’s commercial real estate, first mortgage residential, agricultural and multi-family mortgage portfolios in the total amount

of $815.5 million were pledged to meet FHLB collateralization requirements as of June 30, 2024.

of $838.3 million were pledged to meet FHLB collateralization requirements as of September 30, 2024.

Based on the current collateralization

requirements of the FHLB, the Company had approximately $144.7 million of additional borrowing capacity at June 30, 2024.

requirements of the FHLB, the Company had approximately $136.9 million of additional borrowing capacity at September 30, 2024.

also had $63.6 million in unpledged securities available to pledge for additional borrowings.

Company has contractual obligations consisting of long-term debt obligations and operating lease obligations.

In addition, as of June

In addition, as of September

30, 2024, the Company had commitments to sell mortgage loans totaling $16.9 million.

76 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 2. Management’s Discussion and Analysis