JUNIATA VALLEY FINANCIAL CORP

Previous wording

The information contained in this Quarterly Report on Form 10-Q contains forward looking statements (as such term is defined in the Securities Exchange Act of 1934 and the regulations thereunder). These forward-looking statements may include projections of, or guidance on, the Company’s future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Company’s business or financial results. When words such as "may”, "should”, "will”, "could”, "estimates”, "predicts”, "potential”, “possible”, "continue”, "anticipates”, "believes”, "plans”, "expects”, "future”, "intends”, “projects”, the negative of these terms and other comparable terminology are used in this report, Juniata is making forward-looking statements. Any forward-looking statement made by the Company in this document is based only on Juniata’s current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business based on information currently available to the Company and speaks only as of the date when made. Juniata undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new or updated information, future events, or otherwise. Forward-looking statements are not historical facts or guarantees of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control, and actual results may differ materially from this forward-looking information and therefore, should not be unduly relied upon. Many factors could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements, including, but not limited to: (i) the factors set forth in the sections of Juniata’s Annual Report on Form 10-K for the year ended December 31, 2024, titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and factors set forth in other current and periodic reports which Juniata has or will file with the Securities and Exchange Commission, and (ii) the following factors:

Current wording

The information contained in this Quarterly Report on Form 10-Q contains forward looking statements (as such term is defined in the Securities Exchange Act of 1934 and the regulations thereunder). These forward-looking statements may include projections of, or guidance on, the Company’s future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Company’s business or financial results. When words such as "may”, "should”, "will”, "could”, "estimates”, "predicts”, "potential”, “possible”, "continue”, "anticipates”, "believes”, "plans”, "expects”, "future”, "intends”, “projects”, the negative of these terms and other comparable terminology are used in this report, Juniata is making forward-looking statements. Any forward-looking statement made by the Company in this document is based only on Juniata’s current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business based on information currently available to the Company and speaks only as of the date when made. Juniata undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new or updated information, future events, or otherwise. Forward-looking statements are not historical facts or guarantees of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. Actual results may differ materially from this forward-looking information and therefore, should not be unduly relied upon. Many factors could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements, including, but not limited to: (i) the factors set forth in the sections of Juniata’s Annual Report on Form 10-K for the year ended December 31, 2024, titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and factors set forth in other current and periodic reports which Juniata has filed or will file with the Securities and Exchange Commission, and (ii) the following factors:

Previous wording

The fol6lowing discussion relates to the consolidated financial condition of the Company as of June 30, 2025, compared to December 31, 2024, and the consolidated results of operations for the three and six months ended June 30, 2025, compared to the same periods in 2024. This discussion should be read in conjunction with the interim consolidated financial statements and related notes included herein.

Current wording

The following discussion relates to the consolidated financial condition of the Company as of September 30, 2025, compared to December 31, 2024, and the consolidated results of operations for the three and nine months ended September 30, 2025, compared to the same periods in 2024. This discussion should be read in conjunction with the interim consolidated financial statements and related notes included herein.

Previous wording

Total assets as of June 30, 2025 were $866.4 million, an increase of $17.6 million, or 2.1%, compared to total assets of $848.9 million at December 31, 2024. Cash and cash equivalents increased by $1.1 million, or 10.1%, as of June 30, 2025 compared to December 31, 2024, while total debt and equity securities decreased by $4.9 million, or 1.9%, over the same period as cash flows were used for funding needs rather than being reinvested into the investment portfolio. Total loans increased by $22.5 million, or 4.2%, as of June 30, 2025 compared to year-end 2024 mainly due to increases in commercial loans. Total deposits increased by $11.4 million, or 1.5%, as of June 30, 2025 compared to December 31, 2024 due to an increase in interest bearing deposits as interest bearing demand, savings and time deposits all increased between comparative periods offsetting a decrease in non-interest bearing demand deposits. Short-term borrowings and repurchase agreements increased by $7.5 million, or 17.7%, as of June 30, 2025 compared to year-end 2024 primarily due to an increase in overnight borrowings, which were used to replace a FHLB long-term advance that matured in June 2025, resulting in the $5.0 million, or 100.0%, decline in long-term debt between comparative periods. At June 30, 2025, total

Current wording

Total assets as of September 30, 2025 were $880.5 million, an increase of $31.6 million, or 3.7%, compared to total assets of $848.9 million at December 31, 2024. Total loans increased by $43.9 million, or 8.2%, as of September 30, 2025 compared to year-end 2024 mainly due to increases in real estate – commercial and other construction loans. The increase was partially offset by a $10.2 million, or 4.0%, decrease in debt securities as of September 30, 2025 compared to December 31, 2024, as cash flows were used for funding needs rather than being reinvested into the investment portfolio. Total deposits increased by $27.6 million, or 3.7%, as of September 30, 2025 compared to December 31, 2024 due to increases in all deposit account types. Long-term debt decreased by $5.0 million, or 100.0%, as of September 30, 2025 compared to year-end 2024 due to the maturity of the remaining FHLB long-term advance in June 2025. Total capital increased $7.5 million, or 15.9%, as of September 30, 2025 due to an increase in undivided profits and a decline in other comprehensive losses compared to year-end 2024.

Previous wording

A summary of the activity in the allowance for credit losses for the six month periods ended June 30, 2025 and 2024, respectively, is presented below.

Current wording

A summary of the activity in the allowance for credit losses for the nine month periods ended September 30, 2025 and 2024, respectively, is presented below.

Previous wording

As of June 30, 2025, there were $13.0 million of loans classified as special mention compared to $23.0 million at December 31, 2024, $1.2 million of loans classified as substandard at June 30, 2025 compared to $1.8 million at December 31, 2024, and $138,000 of loans classified as doubtful at June 30, 2025 compared to $72,000 at December 31, 2024. The decrease in special mention loans between periods was primarily due to the upgrade of two commercial relationships, while the

Current wording

As of September 30, 2025, there were $12.5 million of loans classified as special mention compared to $23.0 million at December 31, 2024, $1.3 million of loans classified as substandard at September 30, 2025 compared to $1.8 million at December 31, 2024, and $133,000 of loans classified as doubtful at September 30, 2025 compared to $72,000 at December 31, 2024. The decrease in special mention loans between periods was primarily due to the upgrade of two commercial relationships, while the increase in doubtful loans was due to the downgrade of a non-accrual loan guaranteed by the Small Business Administration.

Previous wording

The quantitative general allowance was $3.4 million at June 30, 2025 and $3.0 million at December 31, 2024.

Current wording

The quantitative general allowance was $3.5 million at September 30, 2025 and $3.0 million at December 31, 2024.

Previous wording

The qualitative analysis resulted in a general reserve of $3.2 million at June 30, 2025 and $3.1 million at December 31, 2024.

Current wording

The qualitative analysis resulted in a general reserve of $3.3 million at September 30, 2025 and $3.1 million at December 31, 2024.

Previous wording

Net income for the three months ended June 30, 2025 was $1.9 million, an increase of $165,000, or 9.5%, compared to the three months ended June 30, 2024. Basic and diluted earnings per share was $0.38 for the three months ended June 30, 2025, an increase of 8.6%, compared to basic and diluted earnings per share of $0.35 for the comparable 2024 period.

Current wording

Net income for the three months ended September 30, 2025 was $2.1 million, an increase of $419,000, or 25.6%, compared to the three months ended September 30, 2024. Basic and diluted earnings per share was $0.41 for the three months ended September 30, 2025, an increase of 24.2%, compared to basic and diluted earnings per share of $0.33 for the comparable 2024 period.

Previous wording

Annualized return on average assets for the three months ended June 30, 2025 was 0.89%, compared to the annualized return on average assets of 0.81% for the same period in 2024. For the three months ended June 30, annualized return on average equity was 15.01% in 2025 compared to 16.38% in the 2024 period.

Current wording

Annualized return on average assets for the three months ended September 30, 2025 was 0.94%, compared to the annualized return on average assets of 0.76% for the same period in 2024. For the three months ended September 30, annualized return on average equity was 15.47% in 2025 compared to 14.72% in the 2024 period.

Previous wording

Net interest income was $6.2 million for the three months ended June 30, 2025, an increase of $397,000, or 6.9%, compared to $5.8 million for the three months ended June 30, 2024.

Current wording

Net interest income was $6.6 million for the three months ended September 30, 2025, an increase of $761,000, or 13.1%, compared to $5.8 million for the three months ended September 30, 2024.

Previous wording

Average interest earning assets decreased 1.0%, to $849.8 million, for the three months ended June 30, 2025 compared to the same period in 2024, due to a decrease of $18.3 million, or 5.8%, in average investment securities, which was partially offset by an $11.2 million, or 2.1%, increase in average loans. Average interest bearing liabilities decreased by $11.3 million, or 1.8%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. This decrease was primarily due to a decline of $28.1 million, or 38.1%, in average borrowings and other interest bearing liabilities, which was partially offset by increases in average interest bearing demand and time deposits of $4.9 million, or 2.4%, and $14.9 million, or 7.3%, respectively, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Current wording

Average interest earning assets increased 1.4%, to $864.6 million, for the three months ended September 30, 2025 compared to the same period in 2024, due to an increase of $31.0 million, or 5.7%, in average loans, which was partially offset by a $19.1 million, or 6.2%, decrease in average investment securities. Average interest bearing liabilities increased by $4.4 million, or 0.7%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was primarily due to an increase of $19.7 million, or 3.6%, in average interest bearing deposits, which was partially offset by a decrease of $15.3 million, or 23.4%, in average borrowings and other interest bearing liabilities for the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

Previous wording

The yield on earning assets increased 17 basis points, to 4.46%, for the six months ended June 30, 2025 compared to same period last year driven by an increase in loan yields of 18 basis points, while the cost to fund interest earning assets with interest bearing liabilities decreased three basis points, to 2.24%.

Current wording

The yield on earning assets increased 18 basis points, to 4.59%, for the three months ended September 30, 2025 compared to same period in 2024, driven by an increase in loan yields of 12 basis points, while the cost to fund interest earning assets with interest bearing liabilities decreased 16 basis points, to 2.22%.

Previous wording

The net interest margin, on a fully tax equivalent basis, increased from 2.73% for the three months ended June 30, 2024 to 2.95% for the three months ended June 30, 2025.

Current wording

The net interest margin, on a fully tax equivalent basis, increased from 2.73% for the three months ended September 30, 2024 to 3.04% for the three months ended September 30, 2025.

Previous wording

Juniata recorded a provision for credit losses of $349,000 for the three months ended June 30, 2025 compared to a provision for credit losses of $119,000 for the three months ended June 30, 2024. The increase in the provision for credit losses between three month periods was primarily due to growth in outstanding loans and a downturn of the projected economic factors used as loss drivers in the model, and not because of deteriorated credit quality.

Current wording

Juniata recorded a provision for credit losses of $216,000 for the three months ended September 30, 2025 compared to a provision for credit losses of $232,000 for the three months ended September 30, 2024.

Previous wording

Non-interest income was $2.8 million for the six months ended June 30, 2025, an increase of $48,000, or 1.7%, compared to the six months ended June 30, 2024. Most significantly impacting the comparative six month periods was an increase of $99,000 in customer service fees and the receipt of $20,000 in life insurance proceeds in the 2025 period. These increases were partially offset by decreases of $75,000 in fees derived from loan activity, primarily due to a decline in title insurance commissions, as well as $41,000 in commissions from sales of non-deposit products in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Current wording

Non-interest income was $1.5 million for the three months ended September 30, 2025, an increase of $72,000, or 5.0%, compared to the three months ended September 30, 2024. Most significantly impacting the comparative three month periods was an increase of $99,000 in fees derived from loan activity primarily due to increases in title insurance commissions, as well as increases in letter of credit and guidance line fees. These increases were partially offset by a decrease of $38,000 in commissions from sales of non-deposit products in the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

Previous wording

As a percentage of average assets, annualized non-interest income was 0.69% for both the three months ended June 30, 2025 and June 30, 2024.

Current wording

As a percentage of average assets, annualized non-interest income was 0.69% for the three months ended September 30, 2025 compared to 0.67% for the three months ended September 30, 2024.

Previous wording

An income tax provision of $329,000 was recorded during the three months ended June 30, 2025 compared to an income tax provision of $296,000 recorded during the three months ended June 30, 2024. The increase between three month periods was mainly due to more taxable income being recorded in the 2025 period. Juniata qualifies for a federal tax credit for an investment in a low-income housing partnerships. The tax credit was $83,000 for both the three months ended June 30, 2025 and June 30, 2024. For the three months ended June 30, 2025, the tax credit lowered the effective tax rate from 18.4% to 14.7% compared to the same period in 2024, when the tax credit lowered the effective tax rate from 18.6% to 14.5%.

Current wording

An income tax provision of $357,000 was recorded during the three months ended September 30, 2025 compared to an income tax provision of $270,000 recorded during the three months ended September 30, 2024. The increase between three month periods was mainly due to more taxable income being recorded in the 2025 period. Juniata qualifies for a federal tax credit for an investment in a low-income housing partnerships. The tax credit was $82,000 for both the three months ended September 30, 2025 and September 30, 2024. For the three months ended September 30, 2025, the tax credit lowered the effective tax rate from 18.2% to 14.8% compared to the same period in 2024, when the tax credit lowered the effective tax rate from 18.5% to 14.2%.

Previous wording

Net income was $3.9 million for the six months ended June 30, 2025, an increase of $818,000, or 26.4%, compared to the six months ended June 30, 2024. Basic and diluted earnings per share was $0.78 for the six months ended June 30, 2025, an increase of 25.8%, compared to basic and diluted earnings per share of $0.62 for the comparable 2024 period.

Current wording

Net income was $6.0 million for the nine months ended September 30, 2025, an increase of $1.2 million, or 26.1%, compared to the nine months ended September 30, 2024. Basic and diluted earnings per share was $1.19 for the nine months ended September 30, 2025, an increase of 25.3%, compared to basic and diluted earnings per share of $0.95 for the comparable 2024 period.

Previous wording

Annualized return on average assets for the six months ended June 30, 2025 was 0.92%, compared to 0.72% for the same period in 2024. For the six months ended June 30, annualized return on average equity was 15.76% in 2025 compared to 15.14% in 2024.

Current wording

Annualized return on average assets for the nine months ended September 30, 2025 was 0.92%, compared to 0.73% for the same period in 2024. For the nine months ended September 30, annualized return on average equity was 15.65% in 2025 compared to 14.70% in 2024.

Previous wording

The discussion that follows further explains changes in the components of net income when comparing the six months ended June 30, 2025 to the six months ended June 30, 2024.

Current wording

The discussion that follows further explains changes in the components of net income when comparing the nine months ended September 30, 2025 to the nine months ended September 30, 2024.

Previous wording

Net interest income was $12.0 million during the six months ended June 30, 2025, an increase of $680,000, or 6.0%, compared to $11.3 million recorded during the six months ended June 30, 2024.

Current wording

Net interest income was $18.6 million during the nine months ended September 30, 2025, an increase of $1.4 million, or 8.4%, compared to $17.1 million recorded during the nine months ended September 30, 2024.

Previous wording

Average earning assets decreased $11.6 million, or 1.3%, to $846.3 million, during the six months ended June 30, 2025 compared to the same period in 2024, due primarily to a decrease of $18.2 million, or 5.8%, in average investment securities as principal paydowns on the mortgage-backed securities portfolio were used for funding needs rather than being reinvested into the securities portfolio. This decline was partially offset by a $7.9 million, or 1.5%, increase in average loans over the same six month periods. Average interest bearing liabilities decreased by $13.6 million, or 2.2%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. This decrease was primarily due to a decline of $26.0 million, or 33.9%, in average borrowings and other interest bearing liabilities, which was partially offset by an increase in average time deposits of $16.2 million, or 8.0%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Current wording

Average earning assets decreased $3.8 million, or 0.4%, to $852.4 million during the nine months ended September 30, 2025 compared to the same period in 2024, due primarily to a decrease of $18.6 million, or 5.9%, in average investment securities as principal paydowns on the mortgage-backed securities portfolio were used for funding needs rather than being reinvested into the securities portfolio. This decline was partially offset by a $15.7 million, or 2.9%, increase in average loans comparing the nine month periods. Average interest bearing liabilities decreased by $7.6 million, or 1.2%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This decrease was primarily due to a decline of $22.4 million, or 30.7%, in average borrowings and other interest bearing liabilities, which was partially offset by an increase in average time deposits of $15.1 million, or 7.4%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Previous wording

The yield on earning assets increased 14 basis points, to 4.50%, for the three months ended June 30, 2025 compared to same period last year, driven by an increase in loan yields of 11 basis points, while the cost to fund interest earning assets with interest bearing liabilities decreased eight basis points, to 2.21%.

Current wording

The yield on earning assets increased 17 basis points, to 4.50%, for the nine months ended September 30, 2025 compared to same period in 2024 driven by an increase in loan yields of 16 basis points, while the cost to fund interest earning assets with interest bearing liabilities decreased eight basis points, to 2.23%.

Previous wording

The net interest margin, on a fully tax equivalent basis, increased from 2.68% during the six months ended June 30, 2024, to 2.89% during the six months ended June 30, 2025.

Current wording

The net interest margin, on a fully tax equivalent basis, increased from 2.70% during the nine months ended September 30, 2024, to 2.94% during the nine months ended September 30, 2025.

Previous wording

The table below shows the net interest margin on a fully tax-equivalent basis for the six months ended June 30, 2025 and 2024.

Current wording

The table below shows the net interest margin on a fully tax-equivalent basis for the nine months ended September 30, 2025 and 2024.

Previous wording

Juniata recorded a provision for credit losses of $453,000 in the six months ended June 30, 2025 compared to a provision for credit losses of $239,000 in the six months ended June 30, 2024. The increase in the provision for credit losses between six month periods was primarily due to growth in outstanding loans, as well as a downturn of the projected economic factors used as loss drivers in the model.

Current wording

Juniata recorded a provision for credit losses of $669,000 in the nine months ended September 30, 2025 compared to a provision for credit losses of $471,000 in the nine months ended September 30, 2024. The increase in the provision for credit losses between nine month periods was primarily the result of 8.2% loan growth as of September 30, 2025 compared to December 31, 2024, in comparison to 2.4% loan growth during the same period in 2024.

Previous wording

As a percentage of average assets, annualized non-interest income was 0.66% in the first six months of 2025 compared to 0.64% in the comparable 2024 period.

Current wording

As a percentage of average assets, annualized non-interest income was 0.67% in the first nine months of 2025 compared to 0.65% in the comparable 2024 period.

Previous wording

Non-interest expense was $9.8 million for the six months ended June 30, 2025, a decrease of $507,000, or 4.9%, compared to the six months ended June 30, 2024. Most significantly impacting non-interest expense in the comparative six month periods were decreases in employee compensation and benefits expenses of $367,000 and $130,000, respectively. The primary drivers for these declines were decreases in employee salary expenses compared to the 2024 period, with the 2024 expenses having been elevated due to overtime pay from the 2024 core conversion and actions taken to optimize staffing levels, and employee benefits expense due to a decrease in medical claims expenses for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Also contributing to the decrease in non-interest expense between the comparative six month periods was a decrease of $80,000 in professional fees. These decreases were partially offset by an increase of $91,000 in equipment expense primarily due to an increase in office depreciation expenses.

Current wording

Non-interest expense was $15.2 million for the nine months ended September 30, 2025, a decrease of $164,000, or 1.1%, compared to the nine months ended September 30, 2024. Most significantly impacting non-interest expense in the comparative nine month periods was a decrease in employee benefits expenses of $209,000 due to a decline in medical claims expenses for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Also contributing to the decrease in non-interest expense between the comparative nine month periods were decreases of $121,000 in professional fees and $55,000 in FDIC insurance premiums. These decreases were partially offset by increases of $94,000 in equipment expense and $164,000 in the provision for unfunded loan commitments, which is included in other non-interest expense, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Previous wording

As a percentage of average assets, annualized non-interest expense was 2.28% in the six months ended June 30, 2025 compared to 2.38% in the six months ended June 30, 2024.

Current wording

As a percentage of average assets, annualized non-interest expense was 2.35% in the nine months ended September 30, 2025 compared to 2.38% in the nine months ended September 30, 2024.

Previous wording

An income tax provision of $700,000 was recorded during the six months ended June 30, 2025 compared to an income tax provision of $497,000 recorded during the six months ended June 30, 2024. Juniata qualifies for a federal tax credit for investments in low-income housing partnerships. The tax credit was $165,000 in both the six months ended June 30, 2025 and June 30, 2024. The tax credit lowered the effective tax rate from 18.7% to 15.2% during the six months ended June 30, 2025 compared to the same period in 2024, when the tax credit lowered the effective tax rate from 18.4% to 13.8%.

Current wording

An income tax provision of $1.1 million was recorded during the nine months ended September 30, 2025 compared to an income tax provision of $767,000 recorded during the nine months ended September 30, 2024. The increase between nine month periods was mainly due to more taxable income being recorded in the 2025 period. Juniata qualifies for a federal tax credit for investments in low-income housing partnerships. The tax credit was $247,000 in both the nine months ended September 30, 2025 and September 30, 2024. The tax credit lowered the effective tax rate from 18.5% to 15.0% during the nine months ended September 30, 2025 compared to the same period in 2024, when the tax credit lowered the effective tax rate from 18.4% to 13.9%.

Previous wording

The Company is a member of the Federal Home Loan Bank of Pittsburgh for the purpose of providing short-term liquidity to supplement other sources of liability liquidity. During the six months ended June 30, 2025, overnight borrowings from the FHLB averaged $29.7 million. As of June 30, 2025, the Company had $33.0 million in short-term borrowings at the FHLB, with a remaining unused borrowing capacity of $203.9 million at the FHLB. Borrowings from the FHLB are secured by the Company’s qualifying loans at the FHLB.

Current wording

The Company is a member of the Federal Home Loan Bank of Pittsburgh for the purpose of providing short-term liquidity to supplement other sources of liability liquidity. During the nine months ended September 30, 2025, overnight borrowings from the FHLB averaged $31.0 million. As of September 30, 2025, the Company had $29.1 million in short-term borrowings at the FHLB, with a remaining unused borrowing capacity of $244.1 million at the FHLB. Borrowings from the FHLB are secured by the Company’s qualifying loans at the FHLB.

Previous wording

As of June 30, 2025, the Company had no outstanding borrowings at the Federal Reserve Bank with an unused borrowing capacity of $50.7 million.

Current wording

As of September 30, 2025, the Company had no outstanding borrowings at the Federal Reserve Bank with an unused borrowing capacity of $50.6 million.

Previous wording

At June 30, 2025, the Company had $16.7 million in funding derived from securities sold under agreements to repurchase (accounted for as collateralized financing transactions). This product is available through corporate cash management accounts for business customers and provides the Company with the ability to pay interest on corporate checking accounts.

Current wording

At September 30, 2025, the Company had $13.6 million in funding derived from securities sold under agreements to repurchase (accounted for as collateralized financing transactions). This product is available through corporate cash management accounts for business customers and provides the Company with the ability to pay interest on corporate checking accounts.

Previous wording

At June 30, 2025, uninsured deposits represented 14.1% of the Company’s total deposits. This amount excludes deposits of state and political subdivisions because the Company pledges debt securities for deposits in excess of the $250,000 FDIC insurance limit in the case of those deposits.

Current wording

At September 30, 2025, uninsured deposits represented 15.1% of the Company’s total deposits. This amount excludes deposits of state and political subdivisions because the Company pledges debt securities for deposits in excess of the $250,000 FDIC insurance limit in the case of those deposits.

Previous wording

In view of the sources previously mentioned and the steps taken by the Company through the three months ended June 30, 2025, management believes the Company’s liquidity can provide the funds needed to meet operational cash needs.

Current wording

In view of the sources previously mentioned and the steps taken by the Company through the nine months ended September 30, 2025, management believes the Company’s liquidity can provide the funds needed to meet operational cash needs.

Previous wording

As of June 30, 2025, the Company had $127.6 million outstanding in loan commitments and other unused lines of credit extended to its customers as compared to $145.0 million at December 31, 2024. As of June 30, 2025 and December 31, 2024, the Company had $3.5 million and $4.2 million, respectively, of financial and performance letters of credit commitments outstanding. Commercial letters of credit as of June 30, 2025 and December 31, 2024 totaled $11.2 million and $10.9 million, respectively.

Current wording

As of September 30, 2025, the Company had $145.4 million outstanding in loan commitments and other unused lines of credit extended to its customers as compared to $145.0 million at December 31, 2024. As of September 30, 2025 and December 31, 2024, the Company had $3.9 million and $4.2 million, respectively, of financial and performance letters of credit commitments outstanding. Commercial letters of credit as of September 30, 2025 and December 31, 2024 totaled $9.7 million and $10.9 million, respectively.

Previous wording

The Company’s principal source of funds for dividend payments is dividends received from the Bank. Certain regulatory restrictions exist regarding the ability of the Bank to transfer funds to the Company in the form of cash dividends, loans or advances. At June 30, 2025, $4.6 million in undistributed earnings of the Bank, included in the consolidated stockholders’ equity, was available for distribution to the Company as dividends without prior regulatory approval, subject to regulatory capital requirements.

Current wording

The Company’s principal source of funds for dividend payments is dividends received from the Bank. Certain regulatory restrictions exist regarding the ability of the Bank to transfer funds to the Company in the form of cash dividends, loans or advances. At September 30, 2025, $4.8 million in undistributed earnings of the Bank, included in the consolidated stockholders’ equity, was available for distribution to the Company as dividends without prior regulatory approval, subject to regulatory capital requirements.