What changed in this filing

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Item 1. Financial Statements

2023-11-14 compared with 2023-08-14 · 146 added, 181 removed, 916 unchanged (26% of the section changed)

4 unchanged sentences

(In thousands, except share and per share amounts)

September 30,

2023 December 31,

Cash and cash equivalents $ 101,890 $ 57,836

Available-for-sale securities, at fair value 8,398 10,207

Available-for-sale securities, at fair value (amortized cost of $ 9,673 and $ 11,621 as of September 30, 2023 and December 31, 2022, respectively)

Held-to-maturity securities, at amortized cost 2,174 2,199

25 unchanged sentences

Preferred stock, $ 0.01 par value, 10,000,000 shares authorized, none issued or outstanding

Common stock, $ 0.01 par value, 40,000,000 shares authorized, 2,573,223 and 2,583,619 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively

Common stock, $ 0.01 par value, 40,000,000 shares authorized, 2,568,054 and 2,583,619 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively

Additional paid-in capital 28,112 28,004

8 unchanged sentences

(In thousands, except share and per share amounts)

Three Months Ended June 30, Six Months Ended June 30,

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

2023 2022 2023 2022

9 unchanged sentences

Net interest income 8,168 9,597 26,283 25,607

(RELEASE OF) PROVISION FOR CREDIT LOSSES ( 331 ) 592 ( 321 ) 748

Net interest income after (release of) provision for credit losses 9,075 7,800 18,437 15,262

PROVISION FOR (RELEASE OF) CREDIT LOSSES 75 346 ( 246 ) 1,079

Net interest income after provision for (release of) credit losses 8,093 9,251 26,529 24,528

NONINTEREST INCOME

11 unchanged sentences

Data processing 1,296 848 3,077 2,518

Net (gain) loss on OREO and repossessed assets ( 71 ) — 13 —

Net loss on OREO and repossessed assets — — 13 —

Total noninterest expense 7,710 7,065 22,822 20,678

13 unchanged sentences

(In thousands)

Three Months Ended June 30, Six Months Ended June 30,

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

2023 2022 2023 2022

1 unchanged sentence

Available for sale securities:

Unrealized (losses) gains arising during the period ( 76 ) ( 607 ) 29 ( 1,377 )

Income tax benefit (expense) related to unrealized (losses) gains 16 127 ( 6 ) 289

Other comprehensive (loss) income, net of tax ( 60 ) ( 480 ) 23 ( 1,088 )

Unrealized losses arising during the period ( 307 ) ( 400 ) ( 278 ) ( 1,777 )

Income tax benefit related to unrealized losses 64 84 58 373

Other comprehensive loss, net of tax ( 243 ) ( 316 ) ( 220 ) ( 1,404 )

Comprehensive income $ 926 $ 2,230 $ 6,008 $ 4,477

3 unchanged sentences

Condensed Consolidated Statements of Stockholders’ Equity

For the Three and Six Months Ended June 30, 2023 and 2022 (unaudited)

For the Three and Nine Months Ended September 30, 2023 and 2022 (unaudited)

(In thousands, except share and per share amounts)

4 unchanged sentences

Stockholders’

Balance, at March 31, 2023

Balance, at June 30, 2023

2,573,223 $ 25 $ 28,070 $ 72,923 $ ( 1,094 ) $ 99,924

Impact of adoption of Accounting Standards Update (“ASU”) 2016-13 — — — — —

Net income — — — 1,169 — 1,169

5 unchanged sentences

Common stock options exercised 1,000 — 17 — — 17

Balance, at June 30, 2023

Balance, at September 30, 2023

2,568,054 $ 25 $ 28,112 $ 73,438 $ ( 1,337 ) $ 100,238

1 unchanged sentence

2,583,619 $ 26 $ 28,004 $ 70,792 $ ( 1,117 ) $ 97,705

Impact of adoption of ASU 2016-13 — — — ( 1,149 ) — ( 1,149 )

Impact of adoption of Accounting Standards Update (“ASU”) 2016-13 — — — ( 1,149 ) — ( 1,149 )

Net income — — — 6,228 — 6,228

Other comprehensive income, net of tax — — — — 23 23

Other comprehensive loss, net of tax — — — — ( 220 ) ( 220 )

Share-based compensation — — 368 — — 368

6 unchanged sentences

Common stock options exercised 18,610 — 320 — — 320

Balance, at June 30, 2023

Balance, at September 30, 2023

2,568,054 $ 25 $ 28,112 $ 73,438 $ ( 1,337 ) $ 100,238

4 unchanged sentences

Stockholders’

Balance, at March 31, 2022

Balance, at June 30, 2022

2,578,595 $ 26 $ 27,777 $ 66,203 $ ( 949 ) $ 93,057

5 unchanged sentences

— — — ( 440 ) — ( 440 )

Common stock repurchased ( 42,791 ) — ( 468 ) ( 1,106 ) — ( 1,574 )

Restricted shares forfeited ( 95 ) — — — — —

Common stock options exercised 5,880 — 110 — — 110

Balance, at June 30, 2022

Balance, at September 30, 2022

2,581,949 $ 26 $ 27,886 $ 68,309 $ ( 1,265 ) $ 94,956

11 unchanged sentences

Common stock options exercised 9,751 — 195 — — 195

Balance, at June 30, 2022

Balance, at September 30, 2022

2,581,949 $ 26 $ 27,886 $ 68,309 $ ( 1,265 ) $ 94,956

4 unchanged sentences

(In thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

4 unchanged sentences

Depreciation and amortization 534 539

Compensation expense related to stock options and restricted stock 279 294

Share based compensation 368 384

Fair value adjustment on mortgage servicing rights 123 ( 334 )

23 unchanged sentences

Proceeds from sale of OREO and other repossessed assets 71 —

Net cash provided by (used in) investing activities 12,786 ( 122,611 )

Net cash used in investing activities ( 7,177 ) ( 169,451 )

CASH FLOWS FROM FINANCING ACTIVITIES:

Net increase (decrease) in deposits 13,490 ( 12,334 )

Net increase in deposits 52,112 17,077

Proceeds from borrowings 40,000 44,500

45 unchanged sentences

For unrealized losses deemed non-credit related, we record the loss, net of tax, through accumulated other comprehensive income.

We determine expected credit losses on available-for-sale and held-to-maturity securities through a discounted cash flow approach, using the security’s effective interest rate.

We determine expected credit losses on available-for-sale (“AFS”) and held-to-maturity (“HTM”) securities through a discounted cash flow approach, using the security’s effective interest rate.

However, as previously mentioned, the measurement of credit losses on available-for-sale securities only occurs when, through our qualitative assessment, all or a portion of the unrealized loss is determined to be credit related.

32 unchanged sentences

Management periodically evaluates appropriateness of economic scenarios and may decide that a particular economic scenario or a combination of probability-weighted economic scenarios should be used in our ACL model.

Our ACL model at June 30, 2023 includes assumptions concerning the rising interest rate environment, ongoing inflationary pressures throughout the U.S.

economy, higher energy prices, the potential impact of the ongoing war between Russia and Ukraine, general uncertainty concerning future economic conditions, and the potential for recessionary conditions.

Our ACL model at September 30, 2023 includes assumptions concerning the rising interest rate environment, ongoing inflationary pressures throughout the U.S.

economy, higher energy prices, the potential impact of wars and other sources of geopolitical tension, general uncertainty concerning future economic conditions, and the potential for recessionary conditions.

It is important to note that our ACL model relies on multiple economic variables, which are used in several economic scenarios.

1 unchanged sentence

These key economic variables include changes in the Washington state unemployment rate, residential real estate prices in the Seattle Metropolitan Statistical Area, and interest rates.

Recognizing that forecasts of macroeconomic conditions are inherently uncertain, we believe that the process to consider the available information and associated risks and uncertainties is appropriately governed and that estimates of expected credit losses were reasonable and appropriate upon adoption and for the three and six months ended June 30, 2023.

Our ACL model also includes adjustments for qualitative factors, where appropriate.

9 unchanged sentences

We refer to these modifications as modified loans to troubled borrowers.

Modifications may include:

changes in the amortization terms of the loan, reductions in interest rates, acceptance of interest only payments, and, in very limited cases, reductions to the outstanding loan balance.

Such loans are typically placed on nonaccrual status when there is doubt concerning the full repayment of principal and interest or the loan has been in default for a period of 90 days or more.

Modifications may include changes in the amortization terms of the loan, reductions in interest rates, acceptance of interest only payments, and, in very limited cases, reductions to the outstanding loan balance.

Such loans are typically placed on nonaccrual status when there is doubt concerning the full repayment of principal and interest or the loan has been past due for a period of 90 days or more.

Such loans may be returned to accrual status when all contractual amounts past due have been brought current, and the borrower’s performance under the modified terms of the loan agreement and the ultimate collectability of all contractual amounts due under the modified terms is no longer in doubt.

6 unchanged sentences

2020-04, " Reference Rate Reform" ("Topic 848").

This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting.

This ASU provides optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting.

The amendments in this update apply to modifications to eligible contracts (e.g., loans, debt securities, derivatives, borrowings) that replace a reference rate affected by reference rate reform (including rates referenced in fallback provisions) and contemporaneous modifications of other contract terms related to the replacement of the reference rate (including contract modifications to add or change fallback provisions).

10 unchanged sentences

Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance in November 2018, ASU No.

April 2019, ASU 2019-04, May 2019, ASU 2019-05, November 2019, ASU 2019-11, February 2020, ASU 2020-02, and March 2020, ASU 2020-03, all of which clarifies codification and corrects unintended application of the guidance.

April 2019, ASU 2019-04, May 2019, ASU 2019-05, November 2019, ASU 2019-11, February 2020, ASU 2020-02, and March 2020, ASU 2020-03, all of which clarify the codification and correct unintended application of the guidance.

This ASU replaces the existing incurred loss impairment methodology that recognizes credit losses when a probable loss has been incurred with new methodology where loss estimates are based upon lifetime expected credit losses.

27 unchanged sentences

Troubled Debt Restructurings and Vintage Disclosures .

The ASU eliminates the accounting guidance for troubled debt restructured loans (“TDRs”) by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty.

Additionally, the ASU requires public business entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases.

This ASU eliminates the accounting guidance for troubled debt restructured loans (“TDRs”) by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty.

Additionally, this ASU requires public business entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases.

This ASU was effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, upon the Company’s adoption of the amendments in ASU 2016-13, which is commonly referred to as the current expected credit loss methodology.

1 unchanged sentence

GAAP for receivables modified in a TDR until the receivables are subsequently modified or settled.

Once a legacy TDR is modified after adoption of ASU 2022-02, the

prospective transition guidance no longer applies and the impact to the ACL is recognized in earnings in the period of modification.

This is not expected to be material.

Once a legacy TDR is modified after adoption of ASU

2022-02, the prospective transition guidance no longer applies and the impact to the ACL is recognized in earnings in the period of modification.

The adoption of this ASU did not have a material impact on the Company’s consolidated results of operations, financial position or cash flows.

As a result of the election to adopt this ASU on a prospective basis, the impact in future periods is not expected to be material.

Note 3 – Investments

At June 30, 2023, the Company did not own any debt securities classified as trading or any equity investment securities.

At September 30, 2023, the Company did not own any debt securities classified as trading or any equity investment securities.

The amortized cost and fair value of our AFS securities and the corresponding amounts of gross unrealized gains and losses at the dates indicated were as follows (in thousands):

Losses Estimated

June 30, 2023

September 30, 2023

Municipal bonds $ 6,404 $ 10 $ ( 1,261 ) $ 5,153

8 unchanged sentences

Losses Estimated

June 30, 2023

September 30, 2023

Municipal bonds $ 704 $ — $ ( 219 ) $ 485

5 unchanged sentences

Total $ 2,199 $ — $ ( 388 ) $ 1,811

The amortized cost and fair value of AFS and HTM securities at June 30, 2023, by contractual maturity, are shown below (in thousands).

The amortized cost and fair value of AFS and HTM securities at September 30, 2023, by contractual maturity, are shown below (in thousands).

Expected maturities of AFS securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Investments not due at a single maturity date, consisting of agency mortgage-backed securities, are shown separately.

June 30, 2023

September 30, 2023

Available-for-sale Held-to-maturity

Value Amortized

Due within one year $ — $ — $ — $ —

Due after one year through five years $ 150 $ 150 $ — $ —

3 unchanged sentences

Total $ 9,673 $ 7,980 $ 2,174 $ 1,671

There were no pledged securities at June 30, 2023 or December 31, 2022.

There were no sales of AFS or HTM securities during the three and six months ended June 30, 2023 or 2022.

Accrued interest receivable on securities totaled $ 49 thousand and $ 54 thousand at June 30, 2023 and December 31, 2022, respectively, in the accompanying Condensed Consolidated Balance Sheets.

There were no pledged securities at September 30, 2023 or December 31, 2022.

There were no sales of AFS or HTM securities during the three and nine months ended September 30, 2023 and 2022.

Accrued interest receivable on securities totaled $ 78 thousand and $ 54 thousand at September 30, 2023 and December 31, 2022, respectively, in the accompanying Condensed Consolidated Balance Sheets.

Accrued interest receivable is excluded from the estimate of expected credit losses.

The following table summarizes the aggregate fair value and gross unrealized loss by length of time of those investments for which an allowance for credit losses has not been recorded that have been in a continuous unrealized loss position at the dates indicated (in thousands):

June 30, 2023

September 30, 2023

Less Than 12 Months 12 Months or Longer Total

24 unchanged sentences

Total held-to-maturity securities $ 1,810 $ ( 388 ) $ — $ — $ 1,810 $ ( 388 )

There was no allowance for credit losses on securities at June 30, 2023 or December 31, 2022.

At June 30, 2023, the total securities portfolio consisted of 12 agency mortgage-backed securities and 11 municipal bonds, with a total portfolio fair value of $ 10.2 million.

At December 31, 2022, the total securities portfolio consisted of one treasury bill security, 11 agency mortgage-backed securities and 12 municipal bonds, with a fair value of $ 12.0 million.

At June 30, 2023, there were two securities in an unrealized loss position for less than 12 months, and 16 securities in an unrealized loss position for more than 12 months.

Of the two securities in an unrealized loss position for less than 12 months, both were classified as AFS.

There was no allowance for credit losses on securities at September 30, 2023 or December 31, 2022.

At September 30, 2023, the total securities portfolio consisted of 12 agency mortgage-backed securities and 11 municipal bonds, with a total portfolio fair value of $ 9.7 million.

At December 31, 2022, the total securities portfolio consisted of one treasury bill, 11 municipal

bonds and 12 agency mortgage-backed securities, with a fair value of $ 12.0 million.

At September 30, 2023, there were three securities in an unrealized loss position for less than 12 months, and 17 securities in an unrealized loss position for more than 12 months.

All three securities in an unrealized loss position for less than 12 months were classified as AFS.

At December 31, 2022, there were 16 securities in an unrealized loss position for less than 12 months, and three securities in an unrealized loss position for more than 12 months.

1 unchanged sentence

It is expected that these securities will not be settled at a price less than the amortized cost of each investment.

There was no provision for credit losses recognized for investment securities during the three or six months ended June 30, 2023, because the declines in fair value were not attributable to credit quality and because we do not intend, and it is not likely that we will be required, to sell these securities before recovery of their amortized cost basis .

There was no provision for credit losses recognized for investment securities during the three or nine months ended September 30, 2023, because the declines in fair value were not attributable to credit quality and because we do not intend, and it is not likely that we will be required, to sell these securities before recovery of their amortized cost basis .

Note 4 – Loans

Loans-held-for portfolio at the dates indicated, excluding loans held-for-sale, were as follows (in thousands):

September 30,

2023 December 31,

17 unchanged sentences

Total loans held-for-portfolio, net $ 866,996 $ 858,382

(1) Includes premiums resulting from purchased loans of $ 492 thousand related to one-to-four family loans, $ 300 thousand related to commercial and multifamily loans, and $ 92 thousand related to commercial business loans as of June 30, 2023.

(1) Includes premiums resulting from purchased loans of $ 472 thousand related to one-to-four family loans, $ 290 thousand related to commercial and multifamily loans, and $ 88 thousand related to commercial business loans as of September 30, 2023.

Includes premiums resulting from purchased loans of $ 507 thousand related to one-to-four family loans, $ 320 thousand related to commercial and multifamily loans, and $ 146 thousand related to commercial business loans as of December 31, 2022.

As of June 30, 2023, there were three collateral dependent loans, totaling $ 147 thousand, that were in process of foreclosure.

As of September 30, 2023, there were two collateral dependent loans, totaling $ 99 thousand, that were in process of foreclosure.

The following table presents a summary of activity in the ACL on loans and unfunded commitments for the periods indicated (in thousands):

Three Months Ended June 30,

Three Months Ended September 30,

Allowance for Credit Losses - Loans Reserve for Unfunded Loan Commitments Allowance for Credit Losses Allowance for Credit Losses - Loans Reserve for Unfunded Loan Commitments Allowance for Credit Losses

Balance at beginning of period $ 8,217 $ 706 $ 8,923 $ 7,117 $ 411 $ 7,528

(Release of) provision for credit losses during the period ( 242 ) ( 89 ) ( 331 ) 600 ( 8 ) 592

Provision for (release of) credit losses during the period 224 ( 149 ) 75 375 ( 29 ) 346

Net (charge-offs)/recoveries during the period ( 3 ) — ( 3 ) ( 3 ) — ( 3 )

Balance at end of period $ 8,438 $ 557 $ 8,995 $ 7,489 $ 382 $ 7,871

Six Months Ended June 30,

Nine months ended September 30, 2023

7 unchanged sentences

Since that date, as a result of adopting ASU 2016-13, our methodology to compute our allowance for credit losses has been based on a current expected credit loss methodology, rather than the previously applied incurred loss methodology.

Accrued interest receivable on loans receivable totaled $ 3.0 million at both June 30, 2023 and December 31, 2022 in the accompanying Condensed Consolidated Balance Sheets.

Accrued interest receivable on loans receivable totaled $ 3.2 million and $ 3.0 million at September 30, 2023 and December 31, 2022, respectively, in the accompanying Condensed Consolidated Balance Sheets.

Accrued interest receivable is excluded from the estimate of expected credit losses.

The following tables summarize the activity in the allowance for credit losses - loans, excluding accrued interest, for the periods indicated (in thousands):

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Allowance Charge-offs Recoveries Provision (Recapture) Ending

1 unchanged sentence

Home equity 194 — — 12 206

197 ( 25 ) — 22 194

Commercial and multifamily 2,268 — — 77 2,345

7 unchanged sentences

Total $ 8,217 $ ( 27 ) $ 24 $ 224 $ 8,438

(1) During the three months ended June 30, 2023, there was one revolving home equity loan that was charged off.

(2) During the three months ended June 30, 2023, the gross charge-offs related entirely to deposit overdrafts that were charged off.

Six Months Ended June 30, 2023

(1) During the three months ended September 30, 2023, the gross charge-offs related entirely to deposit overdrafts that were charged off.

Nine Months Ended September 30, 2023

Allowance Impact of Adoption of ASU 2016-16 Charge-offs Recoveries Provision (Recapture) Ending

11 unchanged sentences

Total $ 7,599 $ 760 $ ( 184 ) $ 36 $ 227 $ 8,438

(1) During the six months ended June 30, 2023, there was one revolving home equity loan that was charged off.

(2) During the six months ended June 30, 2023, the gross charge-offs related entirely to deposit overdrafts that were charged off.

Three Months Ended June 30, 2022

(1) During the nine months ended September 30, 2023, there was one revolving home equity loan that was charged off.

(2) During the nine months ended September 30, 2023, the gross charge-offs related primarily to deposit overdrafts that were charged off.

Three Months Ended September 30, 2022

Allowance Charge-offs Recoveries Provision

10 unchanged sentences

Total $ 7,117 $ ( 6 ) $ 3 $ 375 $ 7,489

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Allowance Charge-offs Recoveries Provision

23 unchanged sentences

When an insured institution classifies problem assets as a loss, it is required to charge off those assets in the period in which they are deemed uncollectible.

Our determination as to the classification of our assets and the amount of our valuation allowances is subject to review by the Federal Deposit Insurance Corporation (“FDIC”), the Bank's federal regulator, and, the Washington Department of Financial Institutions, the Bank's state banking regulator, which can order the establishment of additional loss allowances.

Our determination as to the classification of our assets and the amount of our valuation allowances is subject to review by the Federal Deposit Insurance Corporation (“FDIC”), the Bank's federal regulator, and the Washington Department of Financial Institutions, the Bank's state banking regulator, which can order the establishment of additional credit loss allowances.

Assets which do not currently expose us to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are required to be designated as special mention.

The following table presents the internally assigned grades as of June 30, 2023, by type of loan and origination year (in thousands):

The following table presents the internally assigned grades as of September 30, 2023, by type of loan and origination year (in thousands):

Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis Converted to Term

2 unchanged sentences

Pass $ 21,831 $ 86,993 $ 111,616 $ 16,269 $ 13,125 $ 29,766 $ — $ — $ 279,600

Special mention — — — — — — — — —

Substandard — 259 121 — 264 581 — — 1,225

Doubtful — — — — — — — — —

Loss — — — — — — — — —

Total one-to-four family $ 21,831 $ 87,252 $ 111,737 $ 16,269 $ 13,389 $ 30,347 $ — $ — $ 280,825

Pass $ 3,064 $ 2,874 $ 1,089 $ 305 $ 98 $ 1,739 $ 10,804 $ 1,348 $ 21,321

Special mention — — — — — — — — —

Substandard — — — — — 64 — 179 243

Doubtful — — — — — — — — —

Loss — — — — — — — — —

Total home equity $ 3,064 $ 2,874 $ 1,089 $ 305 $ 98 $ 1,803 $ 10,804 $ 1,527 $ 21,564

3 unchanged sentences

Substandard — — — 1,323 5,136 1,433 — — 7,892

Doubtful — — — — — — — — —

Loss — — — — — — — — —

Total commercial and multifamily $ 13,820 $ 80,182 $ 85,099 $ 27,621 $ 35,472 $ 61,115 $ — $ — $ 303,309

1 unchanged sentence

Pass $ 11,272 $ 60,325 $ 41,860 $ 978 $ 608 $ 2,223 $ — $ — $ 117,266

Special mention — — — — — — — — —

Substandard — — — — 693 70 — — 763

Doubtful — — — — — — — — —

Loss — — — — — — — — —

Total construction and land $ 11,272 $ 60,325 $ 41,860 $ 978 $ 1,301 $ 2,293 $ — $ — $ 118,029

1 unchanged sentence

Pass $ 11,011 $ 8,388 $ 4,624 $ 2,184 $ 2,226 $ 5,924 $ — $ — $ 34,357

Special mention — — — — — — — — —

Substandard — 28 — 22 41 103 — — 194

Doubtful — — — — — — — — —

Loss — — — — — — — — —

Total manufactured homes $ 11,011 $ 8,416 $ 4,624 $ 2,206 $ 2,267 $ 6,027 $ — $ — $ 34,551

1 unchanged sentence

Pass $ 5,722 $ 21,644 $ 27,146 $ 6,514 $ 1,892 $ 10,418 $ — $ — $ 73,336

Special mention — — — — — — — — —

Substandard — — — — — — — — —

Doubtful — — — — — — — — —

Loss — — — — — — — — —

Total floating homes $ 5,722 $ 21,644 $ 27,146 $ 6,514 $ 1,892 $ 10,418 $ — $ — $ 73,336

1 unchanged sentence

Pass $ 3,469 $ 1,977 $ 3,936 $ 5,938 $ 622 $ 2,269 $ 499 $ — $ 18,710

Special mention — — — — — — — — —

Substandard — — — 72 — — — — 72

Doubtful — — — — — — — — —

Loss — — — — — — — — —

Total other consumer $ 3,469 $ 1,977 $ 3,936 $ 5,938 $ 622 $ 2,269 $ 499 $ — $ 18,710

1 unchanged sentence

Pass $ 6,329 $ 457 $ 3,689 $ 439 $ 290 $ 5,531 $ 8,020 $ — $ 24,755

Special mention — — — — — — — — —

Substandard — 61 294 — — — — — 355

Doubtful — — — — — — — — —

Loss — — — — — — — — —

Total commercial business $ 6,329 $ 518 $ 3,983 $ 439 $ 290 $ 5,531 $ 8,020 $ — $ 25,110

2 unchanged sentences

Substandard — 348 415 1,345 6,134 2,251 — 179 10,672

Doubtful — — — — — — — — —

Loss — — — — — — — — —

Total loans $ 76,518 $ 263,188 $ 279,474 $ 60,270 $ 55,331 $ 119,803 $ 19,323 $ 1,527 $ 875,434

17 unchanged sentences

The following table presents the amortized cost of nonaccrual loans as of the dates indicated, by type of loan (in thousands):

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

with no ACL Total

7 unchanged sentences

The following tables present the aging of past due loans, based on amortized cost, as of the dates indicated, by type of loan (in thousands):

June 30, 2023

September 30, 2023

Past Due 60-89 Days

Past Due 90 Days and Greater Past Due > 90 Days and Accruing Total Past

Past Due 90 Days and Greater Past Due 90 Days and Greater Past Due and Accruing Total Past

Due Current Total Loans

10 unchanged sentences

Past Due 60-89 Days

Past Due 90 Days and Greater Past Due > 90 Days and Accruing Total Past

Past Due 90 Days and Greater Past Due 90 Days and Greater Past Due and Accruing Total Past

Due Current Total Loans

22 unchanged sentences

Loan Modifications to Borrowers Experiencing Financial Difficulty.

Loans modified to borrowers experiencing financial difficulty totaled $ 2.0 million at June 30, 2023.

Loans modified to borrowers experiencing financial difficulty totaled $ 2.0 million at September 30, 2023.

The Company has granted modifications which can generally be described in the following categories:

10 unchanged sentences

Any other type of modification, including the use of multiple categories above.

The Company had no commitments to extend additional credit to borrowers owing loan receivables whose terms have been modified at June 30, 2023.

During the six months ended June 30, 2023, there was one one-to-four family loan modified to borrowers experiencing financial difficulty that was in current status as of June 30, 2023.

At September 30, 2023, the Company had no commitments to extend additional credit to borrowers owing loan receivables with modified terms.

During the nine months ended September 30, 2023, there was one modified one-to-four family loan to a borrower experiencing financial difficulty.

This loan received a term extension for 90 days, with an amortized cost basis of $ 90 thousand representing 0.03 % of the total class of loans.

There were no loans modified within the three months ended June 30, 2023.

We have no modified loan receivables that have subsequently defaulted at June 30, 2023.

There were no loans modified within the three months ended September 30, 2023.

We have no modified loan receivables that have subsequently defaulted at September 30, 2023.

Troubled debt restructurings.

8 unchanged sentences

The following tables summarize collateral dependent loans by collateral type as of the dates indicated (in thousands):

June 30, 2023

September 30, 2023

Commercial Real Estate Residential Real Estate Land Other Residential Total

10 unchanged sentences

Impaired Loans.

Prior to the adoption of ASC 326 on January 1, 2023, we classified loans as impaired when we determined that we may be unable to collect payments of principal or interest when due under the terms of the loan.

In the process of identifying loans as impaired, we took into consideration factors which include payment history and status, collateral value, financial condition of the borrower, and the probability of collecting scheduled payments in the future.

Prior to the adoption of ASC 326 on January 1, 2023, we classified loans as impaired when we determined that we might be unable to collect payments of principal or interest when due under the terms of the loan.

In the process of identifying loans as impaired, we took into consideration factors which included payment history and status, collateral value, financial condition of the borrower, and the probability of collecting scheduled payments in the future.

Minor payment delays and insignificant payment shortfalls typically did not result in a loan being classified as impaired.

12 unchanged sentences

Home equity 210 142 68 210 5

Commercial and multifamily — — — — —

Construction and land 358 324 34 358 3

Manufactured homes 187 93 94 187 52

Floating homes — — — — —

Other consumer 343 261 82 343 22

Commercial business — — — — —

Total $ 4,856 $ 3,858 $ 986 $ 4,844 $ 184

The following tables present the average recorded investment and interest income recognized on impaired loans for the periods indicated, by loan types (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

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

Investment Interest Income

14 unchanged sentences

ASC 820 defines fair values for financial instruments as the exit price, the price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions.

The Company’s fair values for financial instruments at June 30, 2023 and December 31, 2022 were determined based on these requirements.

The Company’s fair values for financial instruments at September 30, 2023 and December 31, 2022 were determined based on these requirements.

The following methods and assumptions were used to estimate the fair value of other financial instruments:

Cash and cash equivalents - The estimated fair value is equal to the carrying amount.

Available-for-sale securities – AFS securities are recorded at fair value based on quoted market prices, if available.

Available-for-sale securities – AFS securities are recorded at fair value based on quoted market prices, if available (Level 1).

If quoted market prices are not available, management utilizes third-party pricing services or broker quotations from dealers in the specific instruments.

Level 2 securities include those traded on an active exchange, as well as U.S.

Level 2 securities include those traded on an active exchange without readily available market prices, as well as U.S.

government securities.

Held-to-maturity securities – HTM securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts.

The fair value is based on quoted market prices, if available.

If quoted market prices are not available,

management utilizes third-party pricing services or broker quotations from dealers in the specific instruments.

Level 2 securities include those traded on an active exchange, as well as U.S.

The fair value is based on quoted market prices, if available (Level 1).

If quoted market prices are not available, management utilizes third-party pricing services or broker quotations from dealers in the specific instruments.

Level 2 securities include those traded on an active exchange without readily available market prices, as well as U.S.

government securities.

1 unchanged sentence

The fair value of fixed-rate one-to-four family loans held-for-sale is based on whole loan forward prices obtained from government sponsored enterprises.

At June 30, 2023 and December 31, 2022, loans held-for-sale were carried at cost, as no impairment was required.

At September 30, 2023 and December 31, 2022, loans held-for-sale were carried at cost, as no impairment was required.

Loans held-for-portfolio - The estimated fair value of loans held-for-portfolio consists of a credit adjustment to reflect the estimated adjustment to the carrying value of the loans due to credit-related factors and a yield adjustment, to reflect the estimated adjustment to the carrying value of the loans due to a differential in yield between the portfolio loan yields and estimated current market rate yields on loans with similar characteristics.

The estimated fair values of loans held-for-portfolio reflect exit price assumptions.

The liquidity premium/discounts are part of the valuation for exit pricing.

The liquidity premiums/discounts are part of the valuation for exit pricing.

Mortgage servicing rights –The fair value of mortgage servicing rights is determined through a discounted cash flow analysis, which uses interest rates, prepayment speeds, discount rates, and delinquency rate assumptions as inputs.

4 unchanged sentences

Subordinated notes - The fair value of subordinated notes is estimated using discounted cash flows based on current lending rates for similar long-term debt instruments with similar terms and remaining time to maturity.

A description of the valuation methodologies used for impaired loans and OREO is as follows:

A description of the valuation methodologies used for collateral dependent loans and OREO is as follows:

Collateral dependent loans - The fair value of collateral dependent loans is based on the current appraised value of the collateral less estimated costs to sell.

6 unchanged sentences

Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s quarterly valuation process.

There were no transfers between levels during the three and six months ended June 30, 2023 and 2022.

The following tables present information about the level in the fair value hierarchy for the Company’s financial assets and liabilities, whether or not recognized or recorded at fair value as of the dates indicated (in thousands):

June 30, 2023 Fair Value Measurements Using:

There were no transfers between levels during the three and nine months ended September 30, 2023 and 2022.

The following tables present information about the level in the fair value hierarchy for the Company’s financial assets and liabilities, whether recognized or recorded at fair value or not as of the dates indicated (in thousands):

September 30, 2023 Fair Value Measurements Using:

Value Estimated

7 unchanged sentences

Mortgage servicing rights 4,681 4,681 — — 4,681

FHLB stock 3,583 3,583 — 3,583 —

FINANCIAL LIABILITIES:

Non-maturity deposits 533,768 533,768 — 533,768 —

Time deposits 301,226 302,574 — 302,574 —

10 unchanged sentences

Mortgage servicing rights 4,687 4,687 — — 4,687

FHLB stock 2,832 2,832 — 2,832 —

FINANCIAL LIABILITIES:

Non-maturity deposits 598,458 598,458 — 598,458 —

Time deposits 210,305 209,965 — 209,965 —

2 unchanged sentences

The following tables present the balance of assets measured at fair value on a recurring basis as of the dates indicated (in thousands):

Fair Value at June 30, 2023

Fair Value at September 30, 2023

Description Total Level 1 Level 2 Level 3

9 unchanged sentences

The following tables provide a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring basis as of the dates indicated:

June 30, 2023

September 30, 2023

Financial Instrument Valuation Technique Unobservable Input(s) Range

13 unchanged sentences

Such differences may result in significantly different fair value measurements.

There were no assets or liabilities (excluding mortgage servicing rights) measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and six months ended June 30, 2023 and 2022.

Mortgage servicing rights are measured at fair value using a significant unobservable input (Level 3) on a recurring basis.

5 unchanged sentences

The following tables present the balance of assets measured at fair value on a nonrecurring basis at the dates indicated (in thousands):

Fair Value at June 30, 2023

Fair Value at September 30, 2023

Total Level 1 Level 2 Level 3

5 unchanged sentences

Impaired loans 4,844 — — 4,844

There were no liabilities carried at fair value, measured on a recurring or nonrecurring basis, at both June 30, 2023 and December 31, 2022.

There were no liabilities carried at fair value, measured on a recurring or nonrecurring basis, at both September 30, 2023 and December 31, 2022.

Note 6 – Mortgage Servicing Rights

The unpaid principal balance of the Company’s mortgage servicing rights portfolio totaled $ 463.6 million at June 30, 2023 compared to $ 472.5 million at December 31, 2022.

Of this total balance, the unpaid principal balance of loans serviced for Federal National Mortgage Association (“Fannie Mae”) at June 30, 2023 and December 31, 2022 were $ 461.4 million and $ 470.3 million, respectively.

The unpaid principal balance of loans serviced for other financial institutions at June 30, 2023 and December 31, 2022, totaled $ 2.2 million and $ 2.2 million, respectively.

The unpaid principal balance of the Company’s mortgage servicing rights portfolio totaled $ 456.1 million at September 30, 2023 compared to $ 472.5 million at December 31, 2022.

Of this total balance, the unpaid principal balance of loans serviced for Federal National Mortgage Association (“Fannie Mae”) at September 30, 2023 and December 31, 2022 were $ 453.9 million and $ 470.3 million, respectively.

The unpaid principal balance of loans serviced for other financial institutions totaled $ 2.2 million at both September 30, 2023 and December 31, 2022.

Loans serviced for others are not included in the Company’s financial statements as they are not assets of the Company.

A summary of the change in the balance of mortgage servicing assets during the periods indicated were as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

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

2023 2022 2023 2022

7 unchanged sentences

The key economic assumptions used in determining the fair value of mortgage servicing rights at the dates indicated are as follows:

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

Prepayment speed (Public Securities Association “PSA” model) 122 % 132 %

2 unchanged sentences

The amount of contractually specified servicing, late and ancillary fees earned on the mortgage servicing rights are included in

mortgage servicing income on the Condensed Consolidated Statements of Income and totaled $ 297 thousand and $ 596 thousand for the three and six months ended June 30, 2023, and $ 313 thousand and $ 633 thousand for the three and six months ended June 30, 2022, respectively.

mortgage servicing income on the Condensed Consolidated Statements of Income and totaled $ 295 thousand and $ 891 thousand for the three and nine months ended September 30, 2023, and $ 306 thousand and $ 939 thousand for the three and nine months ended September 30, 2022, respectively.

Note 7 – Commitments and Contingencies

5 unchanged sentences

The following table presents advances from the FHLB as of the dates indicated:

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

Outstanding balance $ 40,000 $ —

10 unchanged sentences

The following table presents the borrowing capacity from the FHLB as of the dates indicated:

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

Amount available to borrow under credit facility (1)

8 unchanged sentences

As a member of the FHLB, the Company is required to maintain a minimum level of investment in FHLB of Des Moines stock based on specific percentages of its outstanding FHLB advances.

At June 30, 2023 and December 31, 2022, the Company had an investment of $ 3.6 million and $ 2.8 million, respectively in FHLB of Des Moines stock.

At both September 30, 2023 and December 31, 2022, the Company had an investment of $ 2.8 million in FHLB of Des Moines stock.

Federal Reserve Bank of San Francisco (“FRB SF”) Borrowings

1 unchanged sentence

The terms of the agreement call for a blanket pledge of a portion of the Company’s consumer and commercial business loans based on the outstanding balance.

At June 30, 2023 and December 31, 2022, the amount available to borrow under this credit facility was $ 18.4 million and $ 20.8 million, respectively, subject to eligible pledged collateral.

The Company had no outstanding borrowings under this arrangement at June 30, 2023 and December 31, 2022.

At September 30, 2023 and December 31, 2022, the amount available to borrow under this credit facility was $ 17.5 million and $ 20.8 million, respectively, subject to eligible pledged collateral.

The Company had no outstanding borrowings under this arrangement at September 30, 2023 and December 31, 2022.

Other Borrowings

1 unchanged sentence

The line has a one year term maturing on June 30, 2024 and is renewable annually.

As of June 30, 2023, the amount available under this line of credit was $ 20.0 million.

There was no balance on this line of credit as of June 30, 2023 and December 31, 2022.

As of September 30, 2023, the amount available under this line of credit was $ 20.0 million.

There was no balance on this line of credit as of September 30, 2023 and December 31, 2022.

Subordinated Debt

2 unchanged sentences

From, and including, October 1, 2025, the interest rate on the subordinated notes will reset quarterly to a floating rate per annum equal to a benchmark rate, which is expected to be the then-current three-month term Secured Overnight Financing Rate, or SOFR, plus 513 basis points, payable quarterly in arrears.

The subordinated notes mature on May 15, 2030, and may be redeemed by the Company, in whole or in part, on October 1, 2025, or on any subsequent interest payment due.

The subordinated notes mature on May 15, 2030, and may be redeemed by the Company, in whole or in part, on October 1, 2025, or on any subsequent interest payment date.

Prior to October 1, 2025, the Company may redeem these notes, in whole but not in part, only under certain limited circumstances set forth in the terms of the subordinated notes.

The balance of the subordinated notes was $ 11.7 million as of both June 30, 2023 and December 31, 2022.

The balance of the subordinated notes was $ 11.7 million as of both September 30, 2023 and December 31, 2022.

Note 9 – Earnings Per Common Share

The following table summarizes the calculation of earnings per share for the periods indicated (in thousands, except per share data):

Three Months Ended Six Months Ended

Three Months Ended Nine Months Ended

2023 2022 2023 2022

11 unchanged sentences

Earnings per share, diluted $ 0.45 $ 0.97 $ 2.39 $ 2.23

There were 13,080 anti-dilutive securities at June 30, 2023 and 2,656 anti-dilutive securities at June 30, 2022.

There were 7,892 anti-dilutive securities at September 30, 2023 and 2,612 anti-dilutive securities at September 30, 2022.

Note 10 – Stock-based Compensation

5 unchanged sentences

Under the 2013 Plan, 181,750 shares of common stock were approved for awards for stock options and stock appreciation rights and 116,700 shares of common stock were approved for awards for restricted stock and restricted stock units.

As of June 30, 2023, on an adjusted basis, awards for stock options totaling 295,464 shares and awards for restricted stock totaling 159,396 shares of Company common stock have been granted, net of any forfeitures, to participants in the 2013 Plan and the 2008 Plan.

Share-based compensation expense was $ 87 thousand and $ 279 thousand for the three and six months ended June 30, 2023, and $ 91 thousand and $ 294 thousand for the three and six months ended June 30, 2022, respectively.

As of September 30, 2023, on an adjusted basis, awards for stock options totaling 295,464 shares and awards for restricted stock totaling 159,396 shares of Company common stock have been granted, net of any forfeitures, to participants in the 2013 Plan and the 2008 Plan.

Share-based compensation expense was $ 88 thousand and $ 368 thousand for the three and nine months

ended September 30, 2023, and $ 90 thousand and $ 384 thousand for the three and nine months ended September 30, 2022, respectively.

Stock Option Awards

2 unchanged sentences

All of the options granted under the 2008 Plan and the 2013 Plan are exercisable for a period of 10 years from the date of grant, subject to vesting.

The following is a summary of the Company’s stock option award activity during the three months ended June 30, 2023 (dollars in thousands, except per share amounts):

The following is a summary of the Company’s stock option award activity during the three months ended September 30, 2023 (dollars in thousands, except per share amounts):

Shares Weighted-

2 unchanged sentences

Term in Years Aggregate

Outstanding at April 1, 2023 89,269 $ 31.00 5.68 $ 647

Outstanding at July 1, 2023 85,895 $ 31.51 5.68 $ 647

Exercised ( 1,000 ) 16.80

Expired ( 117 ) 42.27

Outstanding at June 30, 2023 85,895 31.51 5.62 495

Outstanding at September 30, 2023 84,895 31.68 5.42 560

Exercisable 62,550 28.96 4.36 540

1 unchanged sentence

84,895 $ 31.68 5.42 $ 560

The following is a summary of the Company’s stock option award activity during the six months ended June 30, 2023 (dollars in thousands, except per share amounts):

The following is a summary of the Company’s stock option award activity during the nine months ended September 30, 2023 (dollars in thousands, except per share amounts):

Shares Weighted-

7 unchanged sentences

Expired ( 117 ) 42.27

Outstanding at June 30, 2023 85,895 31.51 5.62 495

Outstanding at September 30, 2023 84,895 31.68 5.42 560

Exercisable 62,550 28.96 4.36 540

1 unchanged sentence

84,895 $ 31.68 5.42 $ 560

As of June 30, 2023, there was $ 179 thousand of total unrecognized compensation cost related to non-vested stock options granted under the Plans.

As of September 30, 2023, there was $ 158 thousand of total unrecognized compensation cost related to non-vested stock options granted under the Plans.

The cost is expected to be recognized over the remaining weighted-average vesting period of approximately 2.5 years.

The total intrinsic value of the shares exercised during the three and six months ended June 30, 2023 was $ 61 thousand and $ 388 thousand, and for the three and six months ended 2022 was $ 0 and $ 54 thousand, respectively.

The total intrinsic value of the shares exercised during the three and nine months ended September 30, 2023 was $ 20 thousand and $ 408 thousand, and for the three and nine months ended 2022 was $ 113 and $ 168 thousand, respectively.

The fair value of each option grant is estimated as of the grant date using the Black-Scholes option-pricing model.

The fair value of options granted during the six months ended June 30, 2023 and 2022 were determined using the following weighted-average assumptions as of the grant date.

Six Months Ended June 30,

The fair values of options granted during the nine months ended September 30, 2023 and 2022 were determined using the following weighted-average assumptions as of the grant date.

Nine Months Ended September 30,

Annual dividend yield 1.69 % 1.59 %

3 unchanged sentences

Weighted-average grant date fair value per option granted $ 11.33 $ 9.95

There were no options granted during the three months ended June 30, 2023 or 2022.

There were no options granted during the three months ended September 30, 2023 or 2022.

Restricted Stock Awards

3 unchanged sentences

The restricted stock awards granted to date under the 2013 Plan provide for immediate vesting of a portion of the award with the balance of the award vesting on the anniversary dates of the grant date in equal annual installments over periods of one -to- four years subject to the continued service of the participant with the Company.

The following is a summary of the Company’s non-vested restricted stock award activity during the three months ended June 30, 2023:

The following is a summary of the Company’s non-vested restricted stock award activity during the three months ended September 30, 2023:

Shares Weighted-Average

1 unchanged sentence

Value Per Share Aggregate Intrinsic Value Per Share

Non-Vested at April 1, 2023 16,342 $ 39.17

Non-Vested at July 1, 2023 16,342 $ 39.17

Forfeited — —

Non-Vested at June 30, 2023 16,342 39.17 35.50

Non-Vested at September 30, 2023 16,342 42.45 36.97

Expected to vest assuming a 0 % forfeiture rate over the vesting term

16,342 $ 42.45 $ 36.97

The following is a summary of the Company’s non-vested restricted stock award activity during the six months ended June 30, 2023:

The following is a summary of the Company’s non-vested restricted stock award activity during the nine months ended September 30, 2023:

Shares Weighted-Average

5 unchanged sentences

Forfeited ( 425 ) 41.95

Non-Vested at June 30, 2023 16,342 $ 39.17 $ 35.50

Non-Vested at September 30, 2023 16,342 $ 42.45 $ 36.97

Expected to vest assuming a 0 % forfeiture rate over the vesting term

16,342 $ 42.45 $ 36.97

As of June 30, 2023, there was $ 527 thousand of unrecognized compensation cost related to non-vested restricted stock granted under the Plans.

As of September 30, 2023, there was $ 459 thousand of unrecognized compensation cost related to non-vested restricted stock granted under the Plans.

The cost is expected to be recognized over the weighted-average vesting period of 2.4 years.

The total fair value of shares vested for the six months ended June 30, 2023 and 2022 was $ 370 thousand and $ 306 thousand, respectively.

The total fair value of shares vested for the nine months ended September 30, 2023 and 2022 was $ 370 thousand and $ 306 thousand, respectively.

Employee Stock Ownership Plan

The fair value of the 162,901 shares held by the Company’s Employee Stock Ownership Plan (the “ESOP”) trust was $ 5.8 million at June 30, 2023.

ESOP compensation expense included in salaries and benefits was $ 204 thousand and $ 408 thousand for the three and six months ended June 30, 2023, and $ 170 thousand and $ 375 thousand for the three and six months ended June 30, 2022, respectively.

The fair value of the 162,523 shares held by the Company’s Employee Stock Ownership Plan (the “ESOP”) trust was $ 6.0 million at September 30, 2023.

ESOP compensation expense included in salaries and benefits was $ 204 thousand and $ 612 thousand for the three and nine months ended September 30, 2023, and $ 205 thousand and $ 580 thousand for the three and nine months ended September 30, 2022, respectively.

Note 11 – Leases

We have operating leases for branch locations, a loan production office, our corporate office and in the past, for certain equipment.

The term for our leases begins on the date we become legally obligated for the rent payments or take possession of the building, whichever is earlier.

The term for our real estate leases begins on the date we become legally obligated for the rent payments or take possession of the building, whichever is earlier.

Generally, our real estate leases have initial terms of three to ten years and typically include one renewal option.

2 unchanged sentences

The following table presents the lease right-of-use assets and lease liabilities recorded on the Condensed Consolidated Balance Sheets at the dates indicated (in thousands):

September 30,

2023 December 31,

2 unchanged sentences

The following table presents the components of lease expense for the periods indicated (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

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

2023 2022 2023 2022

4 unchanged sentences

The following table presents the schedule of lease liabilities at the date indicated (in thousands):

June 30, 2023

September 30, 2023

Remainder of 2023

4 unchanged sentences

Lease term and discount rate by lease type consist of the following at the dates indicated:

September 30,

2023 December 31,

4 unchanged sentences

Supplemental cash flow information related to leases was as follows for the periods indicated (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

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

2023 2022 2023 2022

3 unchanged sentences

Note 12 – Subsequent Events

On July 25, 2023, the Company announced that its Board of Directors declared a quarterly cash dividend of $ 0.19 per common share, payable on August 23, 2023 to stockholders of record at the close of business on August 9, 2023.

On October 24, 2023, the Company announced that its Board of Directors declared a quarterly cash dividend of $ 0.19 per common share, payable on November 22, 2023 to stockholders of record at the close of business on November 8, 2023.

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