John Marshall Bancorp, Inc.
For the period ended Jun 30, 2026. Filed Aug 7, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 7, 2026
JMSB$23.20+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001104659-26-057594
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001104659-26-092388
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 105 previous paragraphs and 145 current paragraphs.
58 unchanged; 41 reworded; 36 added; 6 removed; 0 previous and 10 current paragraphs rearranged.
Tables are not compared: 55 previous and 68 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (36)
Current report
Results of Operations - Six months ended June 30, 2026 and June 30, 2025
Current report
The Company reported net income of $13.1 million for the six months ended June 30, 2026, an increase of $3.2 million or 32.4% when compared to the six months ended June 30, 2025. Diluted earnings per common share were $0.93 for the six months ended June 30, 2026, compared to diluted earnings per common share of $0.69 for the six months ended June 30, 2025, representing a 34.8% increase.
Current report
Net interest income for the six months ended June 30, 2026 increased $4.8 million or 16.6% compared to the same period of 2025, driven primarily by the increases in average balances and yields of the loan portfolio in combination with the decrease in rates of interest-bearing deposits.
Current report
Non-interest income increased $716 thousand during the six months ended June 30, 2026 compared to the same period of 2025. The increase was primarily driven by a $835 thousand gain as a result of the sale of an unaffiliated company in which the Company held an equity investment unit, in combination with a $51 thousand increase in other income, driven by the receipt of a class action settlement claim from a health insurance carrier, and a $43 thousand increase in mark-to-market adjustments on investments related to the Company’s non-qualified deferred compensation plan. These increases were partially offset by a $153 thousand decrease in bankers insurance commission coupled with a $91 thousand decline in gain on sale of SBA 7(a) loans, due to lower sales volumes.
Current report
Non-interest expense increased $1.9 million or 11.2% for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 predominantly due to a $1.5 million or 14.6% increase in salaries and employee benefits, as a result of increases in incentive compensation, higher mark-to-market adjustments on the Company’s non-qualified deferred compensation plan and the impact of the annual salary merit increase. Other expenses increased $302 thousand or 6.2% for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Increases were primarily in state franchise tax and FDIC insurance, due to higher assessment bases, and an increase in marketing expense. Furniture and equipment expenses increased $62 thousand or 9.8% for the six months ended June 30, 2026 compared to the same period in 2025. The increase was due to investment and maintenance in technology.
Current report
The ROAA for the six months ended June 30, 2026 and 2025 was 1.13% and 0.89%, respectively. The ROAE for the six months ended June 30, 2026 and 2025 was 9.77% and 7.91%, respectively.
Current report
Tax-equivalent net interest income increased $4.8 million or 16.7% for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The increase in fully tax-equivalent net interest income was driven by the increase in average balances and yields of the loan portfolio in combination with a decrease in the cost of interest-bearing deposits.
Current report
The net interest margin was 2.93% for the six months ended June 30, 2026, compared to 2.63% for the six months ended June 30, 2025. The 30 basis points increase in net interest margin was due to a combination of a 29 basis point decrease in the cost of interest-bearing liabilities and a nine basis point increase in yields in interest-earning assets coupled with higher average loan balances.
Current report
The cost of interest-bearing liabilities was 3.14% for the six months ended June 30, 2026 compared to 3.43% for the six months ended June 30, 2025. Rates declined across all deposit categories, most notably in time deposits, money market accounts, and NOW deposit accounts, which declined 36 basis points, 32 basis points, and 22 basis points, respectively. Total cost of borrowings declined from 4.55% in the prior year period to 4.48% in the current year period, mainly as a result of refinancing a maturing Federal Home Loan Bank of Atlanta (“FHLB”) advance at a lower rate of interest during the first quarter of 2026.
Current report
The loan portfolio’s yield for the six months ended June 30, 2026 was 5.50% compared to 5.41% for the six months ended June 30, 2025, as variable rate loans repriced at higher prevailing rates subsequent to the second quarter of 2025. Average loans increased $108.2 million between the six months ended June 30, 2026 and 2025, which was primarily attributable to origination volume in the construction & development and residential mortgage loan portfolios subsequent to June 30, 2025.
Current report
The yield on interest-bearing deposits due from banks for the six months ended June 30, 2026 was 3.72% compared to 4.48% for the six months ended June 30, 2025. The decrease of 76 basis points was due to three fed funds rate cuts totaling 75 basis points, which occurred after June 30, 2025.
Current report
Interest income increased by $3.7 million or 6.7% to $58.9 million on a fully tax-equivalent basis for the six months ended June 30, 2026 compared to $55.2 million for the six months ended June 30, 2025, driven by both an increase in rates and volume on interest-earning assets, primarily attributable to the Company’s loan portfolio.
Current report
Fully tax-equivalent interest income on loans increased $3.8 million or 7.6% as a result of increases in rates and volume. Average loans increased $108.2 million between the six months ended June 30, 2026 and 2025, which was primarily attributable to origination volume in the construction & development and residential mortgage loan portfolios subsequent to June 30, 2025.
Current report
Fully tax-equivalent interest income on investment securities increased $322 thousand or 13.6%, as a result of higher securities rates. The yield on investment securities increased to 2.39% for the six months ended June 30, 2026 as compared to 2.07% for the six months ended June 30, 2025.
Current report
Interest income on interest-bearing deposits in other banks decreased $421 thousand or 15.3% as a result of a 76 basis point decline in yield, which was directly related to three fed funds rate cuts totaling 75 basis points since June 30, 2025.
Current report
The Company recorded a $281 thousand provision for credit losses for the six months ended June 30, 2026 compared to a $707 thousand provision for credit losses for the six months ended June 30, 2025. The provision for credit losses for the six months ended June 30, 2026 that is directly attributable to the funded loan portfolio was $528 thousand, while unfunded commitments provision was a recovery of $247 thousand.
Current report
The provision for credit losses during the six months ended June 30, 2026 was primarily a result of changes in the composition and volume of the loan portfolio in combination with the impact of charge-offs of three commercial SBA 7(a) loans recorded during the second quarter of 2026. See “Asset Quality” below for additional information on the credit quality of the loan portfolio.
Current report
The Company’s recurring sources of non-interest income consist primarily of interchange income, gains on sale of government guaranteed loans, service charges on deposit accounts and insurance commissions. Generally speaking, loan fees are included in interest income on the loan portfolio and not reported as non-interest income.
Current report
The following table summarizes non-interest income for the six months ended June 30, 2026 and 2025.
Current report
Non-interest income increased $716 thousand or 70.8% during the six months ended June 30, 2026 compared to the same period of 2025. The increase was primarily attributable to a $835 thousand gain as a result of the sale of an unaffiliated company in which the Company held an equity investment unit, in combination with a $53 thousand increase in other charges and fees due to higher early termination fees on customer’s time deposits, and a $48 thousand increase in other operating income driven by the receipt of a class action settlement claim from a health insurance carrier. These increases were partially offset by a $153 thousand decrease in bankers insurance commission coupled with a $91 thousand decline in gain on sale of SBA 7(a) loans, due to lower sales volume.
Current report
Generally, non-interest expense is composed of all employee expenses and costs associated with operating our facilities, obtaining and retaining customer relationships and providing banking services. The largest component of non-interest expense is salaries and employee benefits. Non-interest expense also includes operational expenses, such as occupancy and equipment expenses, data processing expenses, professional fees, advertising expenses and other general and administrative expenses, including FDIC assessments, and Virginia state franchise taxes.
Current report
Non-interest expense increased $1.9 million or 11.2% during the six months ended June 30, 2026 compared to the same period in 2025. The increase was primarily due to a $1.5 million increase in salaries and employee benefits, as a result of increases in incentive compensation tied to performance, higher mark-to-market adjustments on the Company’s non-qualified deferred compensation plan and the impact of the annual salary merit increase. Incentive compensation accruals can fluctuate materially from period to period, based upon the Company’s financial performance and conditions measured against, among other evaluation criteria, our strategic plan and budget. At the end of each year, the ultimate determination of the incentive compensation is approved by the Board of Directors. Advertising expense increased $93 thousand mainly due to various public relations and advertising initiatives. State franchise taxes increased $91 thousand due to a higher assessment base, mainly a result of the growth of the Company’s shareholder’s equity during the period.
Current report
Income tax expense increased $902 thousand or 31.6% to $3.8 million for the six months ended June 30, 2026 compared to $2.9 million for the six months ended June 30, 2025. Our effective tax rate for the six months ended June 30, 2026 was 22.3% compared to 22.4% for the same period ended June 30, 2025.
Current report
Non-interest income increased $936 thousand or 184.6% during the second quarter of 2026 compared to the second quarter of 2025, which was primarily attributable to a $835 thousand gain as a result of the sale of an unaffiliated company in which the Company held an equity investment unit. Excluding this gain, non-interest income increased $101 thousand or 19.9% during the most recent quarter as compared to the prior year quarter, as a result of a $80 thousand increase in mark-to-market adjustments on investments related to the Company’s non-qualified deferred compensation plan, a $50 thousand increase in other fee income due to higher early termination fees on customers’ time deposits, and a $43 thousand increase in other income, as a result of receipt of a class action settlement claim from a health insurance carrier. These increases were partially offset by a $61 thousand decrease in gain on sale of SBA 7(a) loans.
Current report
Non-interest expense increased $1.2 million or 14.2% during the second quarter of 2026 compared to the second quarter of 2025 primarily resulting from an increase in salaries and employee benefits and higher marketing expense. Salaries and employee benefits increased $979 thousand, as a result of increases in incentive compensation, higher mark-to-market adjustments on the Company’s non-qualified deferred compensation plan and the impact of the annual salary merit increase. Marketing expense increased $130 thousand mainly due to various public relations and advertising initiatives.
Current report
Tax-Equivalent Net Interest Income
Current report
Rate/Volume Analysis
Current report
Interest Income
Current report
Interest Expense
Current report
Provision for Credit Losses
Current report
Non-interest Income
Current report
Non-interest income was $1.4 million for the three months ended June 30, 2026 compared to $507 thousand for the same period in the prior year. The $936 thousand increase in non-interest income was primarily attributable to a $835 thousand gain as a result of the sale of an unaffiliated company in which the Company held an equity investment unit. Excluding this gain, non-interest income increased $101 thousand or 19.9% during the most recent quarter as compared to the prior year quarter, as a result of an $80 thousand increase in mark-to-market adjustments on investments related to the Company’s non-qualified deferred compensation plan, a $55 thousand increase in other charges and fees due to higher early termination fees on customers’ time deposits, and a $43 thousand increase in other income, as a result of receipt of a class action settlement claim from a health insurance carrier. These increases were partially offset by a $61 thousand decrease in gain on sale of SBA 7(a) loans, due to lower sales volume.
Current report
Non-interest Expense
Current report
Non-interest expense increased $1.2 million or 14.2% during the second quarter of 2026 compared to the second quarter of 2025 primarily resulting from an increase in salaries and employee benefits and higher marketing expense. Salaries and employee benefits increased $979 thousand, as a result of increases in incentive compensation, higher mark-to-market adjustments on the Company’s non-qualified deferred compensation plan and the impact of the annual salary merit increase. Incentive compensation accruals can fluctuate materially from quarter to quarter, based upon the Company’s financial performance and conditions measured against, among other evaluation criteria, our strategic plan and budget. At the end of each year, the ultimate determination of the incentive compensation is approved by the Board of Directors. Marketing expense increased $130 thousand mainly due to various public relations and advertising initiatives. These increases were partially offset by a $70 thousand decrease in professional fees as the Company incurred additional expenses related to the use of external advisors to assist the Company with various regulatory filings during the three months ended June 30, 2025.
Current report
Income Taxes
Current report
During the six months ended June 30, 2026, the Company charged-off three commercial SBA 7(a) loans in the total amount of $172 thousand. These charge-offs represented the unguaranteed portions of the loans and we expect the SBA to fully pay the guaranteed portions.
Removed paragraphs (6)
Previous report
Overview
Previous report
Overview
Previous report
Non-interest income decreased $221 thousand during the three months ended March 31, 2026 compared to the three months ended March 31, 2025. This decrease was primarily attributable to a $149 thousand decrease in insurance commissions, in combination with a $37 thousand decrease in mark-to-market adjustments on investments related to the Company’s nonqualified deferred compensation (“NQDC”) plan and a $30 thousand decline in gains recorded on sales of the guaranteed portions of the SBA 7(a) loans.
Previous report
Non-interest expense increased $0.7 million or 8.2% during the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to a $522 thousand or 10.2% increase in salaries and employee benefits, as a result of increases in employee headcount coupled with annual salary merit increases. Other expenses grew $124 thousand due to a combination of higher state franchise taxes and Federal Deposit Insurance Corporation (“FDIC”) insurance, due to higher assessment bases, partially offset by lower marketing expense.
Previous report
Non-interest income was $284 thousand for the three months ended March 31, 2026 compared to $505 thousand for the same period in the prior year. The $221 thousand decrease in non-interest income was primarily attributable to a $149 thousand decrease in insurance commissions, in combination with a $37 thousand decrease in mark-to-market adjustments on investments related to the Company’s NQDC plan and a $30 thousand decline in gains recorded on sales of the guaranteed portions of the SBA 7(a) loans.
Previous report
Non-interest expense increased $675 thousand or 8.2% during the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily as a result of an increase in salaries and employee benefits expense, which was mainly related to increases in headcount within the Bank during the preceding twelve months and an annual salary merit increase in combination with lower direct loan origination costs when compared to the same period of the prior year. Salaries and employee benefit expense is reduced to account for the portion of salary costs incurred to originate a loan and is subsequently amortized into interest income to match the costs incurred with the economic benefit derived from originating a loan. State franchise taxes and FDIC insurance increased by $69 thousand and $29 thousand, respectively, due to higher assessment bases mainly a result of the growth of the Company’s assets and shareholder’s equity during the period.
Reworded paragraphs (41)
Previous wording
As of March 31, 2026, the Company had total consolidated assets of $2.35 billion, total loans net of unearned income of $1.97 billion, total deposits of $1.99 billion and total shareholders’ equity of $268.1 million.
Current wording
As of June 30, 2026, the Company had total consolidated assets of $2.40 billion, total loans net of unearned income of $2.01 billion, total deposits of $1.99 billion and total shareholders’ equity of $273.8 million.
Previous wording
The following table contains selected historical consolidated financial data as of the dates and for the periods shown. The selected balance sheet data as of March 31, 2026 and 2025 and the selected income statement data for the three months ended March 31, 2026 and March 31, 2025 have been derived from our consolidated financial statements.
Current wording
The following table contains selected historical consolidated financial data as of the dates and for the periods shown. The selected balance sheet data as of June 30, 2026 and 2025 and the selected income statement data for the three and six months ended June 30, 2026 and June 30, 2025 have been derived from our consolidated financial statements.
Previous wording
The Company recorded a $23 thousand provision for credit losses for the three months ended March 31, 2026 compared to a provision for credit losses of $170 thousand for the three months ended March 31, 2025. Additional discussion of the provision for credit losses is included below under the headingProvision for Credit Losses.
Current wording
The Company recorded a $281 thousand provision for credit losses for the six months ended June 30, 2026 compared to a $707 thousand provision for credit losses for the six months ended June 30, 2025. Additional discussion of the provision for credit losses is included below under the headingProvision for Credit Losses.
Previous wording
The Company reported net income of $6.1 million for the three months ended March 31, 2026, an increase of $1.3 million or 26.8% when compared to $4.8 million for the three months ended March 31, 2025. Diluted earnings per common share were $0.43 for the three months ended March 31, 2026, compared to diluted earnings per common share of $0.34 for the three months ended March 31, 2025, an increase of 26.5%.
Current wording
The Company reported net income of $7.0 million for the three months ended June 30, 2026, an increase of $1.9 million or 37.5% when compared to $5.1 million for the three months ended June 30, 2025. Diluted earnings per common share were $0.50 for the three months ended June 30, 2026, compared to diluted earnings per common share of $0.36 for the three months ended June 30, 2025, an increase of 38.9%.
Previous wording
Net interest income for the three months ended March 31, 2026 increased $2.4 million or 17.1% to $16.5 million compared to $14.1 million for the three months ended March 31, 2025, driven primarily by the lower cost of interest-bearing deposits coupled with higher average balances and yields of loans. During the same period, interest income increased $1.8 million or 6.5%, driven by higher interest income on loans, while interest expense declined by $0.6 million or 4.8%, predominantly due to lower interest expense on time deposits, interest-bearing demand deposits, and money market accounts. The annualized net interest margin for the three months ended March 31, 2026 was 2.87% as compared to 2.58% for the same period in 2025.
Current wording
Net interest income for the three months ended June 30, 2026 increased $2.4 million or 16.1% to $17.3 million compared to $14.9 million for the three months ended June 30, 2025, as a result of higher average balances and yields of loans coupled with the lower cost of interest-bearing deposits. During the same period, interest income increased $1.9 million or 6.8%, driven by higher interest income on loans, while interest expense declined by $0.5 million or 3.9%, predominantly due to lower interest expense on interest-bearing deposit categories. The annualized net interest margin for the three months ended June 30, 2026 was 2.99% as compared to 2.69% for the same period in 2025.
Previous wording
The ROAA for the three months ended March 31, 2026 and March 31, 2025 were 1.06% and 0.87%, respectively. The ROAE for the three months ended March 31, 2026 and March 31, 2025 were 9.19% and 7.76%, respectively.
Current wording
The ROAA for the three months ended June 30, 2026 and June 30, 2025 were 1.20% and 0.91%, respectively. The ROAE for the three months ended June 30, 2026 and June 30, 2025 were 10.34% and 8.06%, respectively.
Previous wording
Tax-equivalent net interest income increased $2.4 million or 17.2% for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, driven primarily by higher average balances and yields of the loan portfolio coupled with the lower rates on interest-bearing deposits.
Current wording
Tax-equivalent net interest income increased $2.4 million or 16.1% for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, driven primarily by higher average balances and yields of the loan portfolio coupled with the lower rates on interest-bearing deposits.
Previous wording
The net interest margin was 2.87% for the three months ended March 31, 2026, compared to 2.58% for the three months ended March 31, 2025. The 29 basis point increase in net interest margin was primarily due to a 34 basis point reduction in rates on interest-bearing deposits and an eight basis point increase in yields on the Company’s loans. In addition, average loans increased $105.9 million between the three months ended March 31, 2025 and the three months ended March 31, 2026, which was primarily attributable to origination volume in the construction and development, and residential mortgage loan portfolios subsequent to March 31, 2025.
Current wording
The net interest margin was 2.99% for the three months ended June 30, 2026, compared to 2.69% for the three months ended June 30, 2025. The 30 basis point increase in net interest margin was primarily due to a 26 basis point reduction in rates on interest-bearing deposits and an 11 basis point increase in yields on the Company’s loans. In addition, average loans increased $110.5 million between the three months ended June 30, 2025 and the three months ended June 30, 2026, which was primarily attributable to origination volume in the construction & development and residential mortgage loan portfolios subsequent to June 30, 2025.
Previous wording
The loan portfolio’s yield for the three months ended March 31, 2026 was 5.47% compared to 5.39% for the three months ended March 31, 2025. The increase of eight basis points was primarily attributable to increase in yield on the Company’s residential mortgage portfolio along with higher average loan balances.
Current wording
The loan portfolio’s yield for the three months ended June 30, 2026 was 5.53% compared to 5.42% for the three months ended June 30, 2025. The increase of 11 basis points was primarily attributable to an increase in yield on the Company’s commercial real estate portfolio along with higher average loan balances.
Previous wording
The yield on interest-bearing deposits due from banks for the three months ended March 31, 2026 was 3.71% compared to 4.47% for the three months ended March 31, 2025. The decrease of 76 basis points was directly attributable to three fed funds rate cuts totaling 75 basis points over the preceding twelve months.
Current wording
The yield on interest-bearing deposits due from banks for the three months ended June 30, 2026 was 3.73% compared to 4.48% for the three months ended June 30, 2025. The decrease of 75 basis points was directly attributable to three fed funds rate cuts totaling 75 basis points over the preceding twelve months.
Previous wording
The cost of interest-bearing liabilities was 3.15% for the three months ended March 31, 2026 compared to 3.48% for the three months ended March 31, 2025. Rates declined across all deposit categories, most notably in money market accounts, time deposits and interest-bearing demand deposits, which declined by 37 basis points, 36 basis points, and 31 basis points, respectively.
Current wording
The cost of interest-bearing liabilities was 3.13% for the three months ended June 30, 2026 compared to 3.38% for the three months ended June 30, 2025. Rates declined across all deposit categories, most notably in time deposits, money market accounts, and savings accounts, which declined by 35 basis points, 28 basis points, and 18 basis points, respectively.
Previous wording
Interest income increased $1.8 million or 6.6% to $29.1 million on a fully tax-equivalent basis for the three months ended March 31, 2026 compared to $27.3 million for the three months ended March 31, 2025, driven primarily by higher average balances and yields on the Company’s loan portfolio.
Current wording
Interest income increased $1.9 million or 6.9% to $29.8 million on a fully tax-equivalent basis for the three months ended June 30, 2026 compared to $27.9 million for the three months ended June 30, 2025, driven primarily by higher average balances and yields on the Company’s loan portfolio.
Previous wording
Fully tax-equivalent interest income on loans increased $1.8 million or 7.2% as a result of volume and rates increases. Average loans increased $105.9 million between the three months ended March 31, 2025 and the three months ended March 31, 2026, which was primarily attributable to origination volume in the construction and development and residential mortgage loan portfolios subsequent to March 31, 2025.
Current wording
Fully tax-equivalent interest income on loans increased $2.0 million or 8.0% as a result of volume and rates increases. Average loans increased $110.5 million between the three months ended June 30, 2026 and the three months ended June 30, 2025, which was primarily attributable to origination volume in the construction & development and residential mortgage loan portfolios subsequent to June 30, 2025.
Previous wording
Fully tax-equivalent interest income on investment securities increased $126 thousand or 10.8% primarily as a result of an increase in rates. The yield on investment securities increased to 2.32% at March 31, 2026 from 2.04% at March 31, 2025.
Current wording
Fully tax-equivalent interest income on investment securities increased $195 thousand or 16.2% primarily as a result of an increase in rates. The yield on investment securities increased to 2.46% at June 30, 2026 from 2.11% at June 30, 2025.
Previous wording
Interest income on interest-bearing deposits in other banks decreased $128 thousand as a result of a decrease in rates, partially offset by an increase in volume. The yield on interest-bearing deposits in other banks decreased from 4.47% to 3.71%, while average balances increased $10.8 million from $120.9 million to $131.7 million between March 31, 2025 and March 31, 2026.
Current wording
Interest income on interest-bearing deposits in other banks decreased $293 thousand or 20.6% as a result of a decreases in rates and average balances. The yield on interest-bearing deposits in other banks decreased from 4.48% to 3.73% between June 30, 2025 and June 30, 2026 and average balances declined $6.1 million during the same period.
Previous wording
Interest expense decreased $635 thousand to $12.6 million for the three months ended March 31, 2026 compared to $13.2 million for the three months ended March 31, 2025, primarily due to a decrease in rates on interest-bearing deposits, partially offset by an increase in volume of interest-bearing deposits. The decrease in rates on deposits was mainly a result of the repricing of the Company’s deposit accounts in conjunction with the decrease in federal funds benchmark interest rates that took place starting in September of 2025.
Current wording
Interest expense decreased $502 thousand or 3.9% to $12.4 million for the three months ended June 30, 2026 compared to $12.9 million for the three months ended June 30, 2025, primarily due to a decrease in rates on interest-bearing deposits, partially offset by an increase in volume of interest-bearing deposits. The decrease in rates on deposits was mainly a result of the repricing of the Company’s deposit accounts in conjunction with the decrease in federal funds benchmark interest rates that took place starting in September of 2025.
Previous wording
The Company recorded a $23 thousand provision for credit losses for the three months ended March 31, 2026 compared to a provision for credit losses of $170 thousand for the three months ended March 31, 2025. The provision for credit losses for the three months ended March 31, 2026 that is directly attributable to the funded loan portfolio was $143 thousand, while provision for credit losses on unfunded loan commitments was a recovery of $120 thousand.
Current wording
The Company recorded a $258 thousand provision for credit losses for the three months ended June 30, 2026 compared to $537 thousand for the three months ended June 30, 2025. The provision for credit losses for the three months ended June 30, 2026 that is directly attributable to the funded loan portfolio was $385 thousand, while provision for credit losses on unfunded loan commitments was a recovery of $127 thousand.
Previous wording
The provision for credit losses on funded loans during the most recent quarter reflected the change in the Company’s loan portfolio mix quarter-over-quarter along with the updated forecasted economic variables utilized in the quantitative portion of the allowance calculation. Recovery of the provision for credit losses on unfunded loan commitments was due to lower amount of available loan commitments at March 31, 2026 as compared to December 31, 2025.
Current wording
The provision for credit losses on funded loans during the most recent quarter reflected the growth of the Company’s loan portfolio, and the related change in the portfolio mix, in combination with the impact of charge-offs of three commercial SBA 7(a) loans during the three months ended June 30, 2026. Recovery of the provision for credit losses on unfunded loan commitments was due to lower amount of available loan commitments at June 30, 2026 as compared to December 31, 2025.
Previous wording
Income tax expense increased $372 thousand to $1.7 million for the three months ended March 31, 2026 compared to $1.4 million for the three months ended March 31, 2025. Our effective tax rate for the three months ended March 31, 2026 was 22.3% compared to 22.2% for the same period ended March 31, 2025.
Current wording
Income tax expense increased $530 thousand to $2.0 million for the three months ended June 30, 2026 compared to $1.5 million for the three months ended June 30, 2025. Our effective tax rate for the three months ended June 30, 2026 was 22.3% compared to 22.5% for the same period ended June 30, 2025.
Previous wording
The Company’s total assets increased $19.8 million or 0.8% to $2.35 billion at March 31, 2026 compared to $2.33 billion at December 31, 2025. The increase in total assets was predominantly attributable to an increase in the Company’s interest-bearing deposits in banks, which grew by $17.6 million or 14.2%. All other asset categories, including the Company’s loan portfolio, stayed relatively unchanged since December 31, 2025.
Current wording
The Company’s total assets increased $69.9 million or 3.0% to $2.40 billion at June 30, 2026 compared to $2.33 billion at December 31, 2025. The increase in total assets was predominantly attributable to an increase in the Company’s loan portfolio and interest-bearing deposits in banks, which grew by $39.6 million and $29.1 million, respectively. All other asset categories stayed relatively unchanged since December 31, 2025.
Previous wording
The Company’s total liabilities increased $17.3 million or 0.8% to $2.08 billion at March 31, 2026 compared to $2.07 billion at December 31, 2025. The increase in total liabilities was almost entirely due to a $15.4 million or 0.8% increase in total deposits, predominantly driven by a $25.5 million or 5.9% increase in non-interest bearing deposits.
Current wording
The Company’s total liabilities increased $61.7 million or 3.0% to $2.13 billion at June 30, 2026 compared to $2.07 billion at December 31, 2025. The increase in total liabilities was due to a combination of a $40.0 million increase in federal funds purchased and a $20.7 million increase in deposits, driven by an $18.8 million increase in non-interest bearing deposits.
Previous wording
Shareholders’ equity increased $2.5 million or 0.9% to $268.1 million at March 31, 2026 compared to $265.6 million at December 31, 2025. The increase in shareholders’ equity was primarily attributable to net income earned during the current year, partially offset by cash dividends paid and a reduction of additional paid-in capital due to the Company’s share repurchases during the three months ended March 31, 2026. Book value per share was $19.00 as of March 31, 2026 compared to $18.69 as of December 31, 2025, an increase of 1.7%. During the three months ended March 31, 2026, the Company repurchased 103,507 shares of its common stock at a weighted average price of $19.69.
Current wording
Shareholders’ equity increased $8.1 million or 3.0% to $273.8 million at June 30, 2026 compared to $265.6 million at December 31, 2025. The increase in shareholders’ equity was primarily attributable to net income earned during the current year, partially offset by cash dividends paid and a reduction of additional paid-in capital due to the Company’s share repurchases during the six months ended June 30, 2026. Book value per share was $19.40 as of June 30, 2026 compared to $18.69 as of December 31, 2025, an increase of 3.8%. During the six months ended June 30, 2026, the Company repurchased 103,507 shares of its common stock at a weighted average price of $19.69.
Previous wording
The Company maintains a primarily fixed income investment securities portfolio that had a total carrying value of $213.8 million at March 31, 2026 and $212.3 million at December 31, 2025. The investment portfolio provides liquidity, interest income, credit risk diversification, means to manage interest rate sensitivity and collateral for secured public funds and secured credit lines. Investment securities are classified as available-for-sale or held-to-maturity based on management’s investment strategy and management’s assessment of the intent and ability to hold the securities until maturity. Investment securities that we may sell prior to maturity in response to changes in management’s investment strategy, liquidity needs, interest rate risk profile or for other reasons are classified as available-for-sale. The Company also had restricted stock and equity securities within its investment securities portfolio with total carrying values of $7.7 million and $2.9 million, respectively, at March 31, 2026 compared to $7.6 million and $2.8 million, respectively, at December 31, 2025.
Current wording
The Company maintains a primarily fixed income investment securities portfolio that had a total carrying value of $213.7 million at June 30, 2026 and $212.3 million at December 31, 2025. The investment portfolio provides liquidity, interest income, credit risk diversification, means to manage interest rate sensitivity and collateral for secured public funds and secured credit lines. Investment securities are classified as available-for-sale or held-to-maturity based on management’s investment strategy and management’s assessment of the intent and ability to hold the securities until maturity. Investment securities that we may sell prior to maturity in response to changes in management’s investment strategy, liquidity needs, interest rate risk profile or for other reasons are classified as available-for-sale. The Company also had restricted stock and equity securities within its investment securities portfolio with total carrying values of $7.7 million and $3.1 million, respectively, at June 30, 2026 compared to $7.6 million and $2.8 million, respectively, at December 31, 2025.
Previous wording
The Company purchased seven agency mortgage-backed fixed income securities, designated as available-for-sale, with the total carrying amount of $15.0 million and a weighted average purchase yield of 4.08% during the three months ended March 31, 2026. The Company did not sell any fixed income investment securities during the three months ended March 31, 2026. The Company had $13.1 million in maturities and principal repayments on securities during the three months ended March 31, 2026, which were comprised of $5.7 million of U.S. agency mortgage-backed securities, $4.3 million of U.S. Treasuries, $2.0 million of U.S. government and federal agencies securities and $1.1 million of U.S. agency collateralized mortgage obligation securities.
Current wording
During the six months ended June 30, 2026, the Company purchased 16 agency mortgage-backed fixed income securities, designated as available-for-sale, with the total carrying amount of $32.7 million and a weighted average purchase yield of 4.25%. The Company did not sell any fixed income investment securities during the six months ended June 30, 2026. The Company had $30.7 million in maturities and principal repayments on securities during the six months ended June 30, 2026, which were comprised of $13.3 million of U.S. Treasuries, $12.1 million of U.S. agency mortgage-backed securities, $3.3 million of U.S. agency collateralized mortgage obligation securities and $2.0 million of U.S. government and federal agencies securities.
Previous wording
In the prevailing rate environments as of both March 31, 2026 and December 31, 2025, the Company’s fixed income investment portfolio had an estimated weighted average remaining life of approximately 3.9 years. The available-for-sale investment portfolio had an estimated weighted average remaining life of approximately 3.2 years and 3.1 years at March 31, 2026 and December 31, 2025, respectively. The held-to-maturity investment portfolio had an estimated weighted average remaining life of approximately 4.9 years and 5.2 years as of March 31, 2026 and December 31, 2025, respectively.
Current wording
In the prevailing rate environments as of June 30, 2026 and December 31, 2025, the Company’s fixed income investment portfolio had an estimated weighted average remaining life of approximately 4.0 years and 3.9 years, respectively. The available-for-sale investment portfolio had an estimated weighted average remaining life of approximately 3.5 years and 3.1 years at June 30, 2026 and December 31, 2025, respectively. The held-to-maturity investment portfolio had an estimated weighted average remaining life of approximately 4.9 years and 5.2 years as of June 30, 2026 and December 31, 2025, respectively.
Previous wording
Gross loans, net of unearned income, decreased $1.6 million to $1.97 billion as of March 31, 2026 compared to $1.98 billion as of December 31, 2025. The decrease in loans from December 31, 2025, was primarily attributable to a decline in residential real estate loans, partially offset by a growth in construction and development loans. The Company continues to maintain its disciplined underwriting standards while prudently pursuing loan growth opportunities that provide acceptable risk-adjusted returns.
Current wording
Gross loans, net of unearned income, increased $39.6 million to $2.01 billion as of June 30, 2026 compared to $1.98 billion as of December 31, 2025. An increase in loans from December 31, 2025, was primarily attributable to growth in commercial real estate and residential real estate loans. The Company continues to maintain its disciplined underwriting standards while prudently pursuing loan growth opportunities that provide acceptable risk-adjusted returns.
Previous wording
The Company’s asset quality remained strong during the quarter ended March 31, 2026. The Company recorded no charge-offs during the period and had no other real estate owned assets as of March 31, 2026. During the most recent quarter, management placed one SBA 7(a) loan in the total amount of $984 thousand on non-accrual status, representing the Company’s only non-accrual loan as of March 31, 2026. As a result, the Company reversed uncollected accrued interest receivable in the total amount of $9 thousand. The entire outstanding loan amount is fully guaranteed by the SBA. This is the only non-accrual loan since the third quarter of 2019. The Company charged-off the unguaranteed portion of the loan in the total amount of $361 thousand during the fourth quarter of 2025. The Company has submitted the guaranty purchase to the SBA and expects to receive the full guarantee payment. The Company did not have any nonaccrual loans as of December 31, 2025. A loan is placed on nonaccrual status when (i) the Company is advised by the borrower that scheduled principal or interest payments cannot be met, (ii) when management’s best judgment indicates that payment in full of principal and interest can no longer be expected, or (iii) when any such loan or obligation becomes delinquent for 90 days, unless it is both well-secured and in the process of collection.
Current wording
The Company’s asset quality remained strong during the quarter ended June 30, 2026. The Company did not have any non-accrual loans and had no other real estate owned assets as of June 30, 2026. A commercial SBA 7(a) loan previously designated as non-accrual at March 31, 2026, was paid in full by the SBA on June 2, 2026. A loan is placed on nonaccrual status when (i) the Company is advised by the borrower that scheduled principal or interest payments cannot be met, (ii) when management’s best judgment indicates that payment in full of principal and interest can no longer be expected, or (iii) when any such loan or obligation becomes delinquent for 90 days, unless it is both well-secured and in the process of collection.
Previous wording
The Company recorded $35 thousand of net recoveries during the three months ended March 31, 2026 and had no net charge-offs or recoveries during the three months ended March 31, 2025. At March 31, 2026, the allowance for loan credit losses was $20.0 million or 1.01% of outstanding loans, net of unearned income, compared to $19.8 million or 1.00% of outstanding loans, net of unearned income, at December 31, 2025. Management continues to assess credit risk exposure and monitor macroeconomic indicators that may impact borrower behavior and repayment capacity. Management believes the current allowance for credit losses is appropriate given the composition and performance of the loan portfolio.
Current wording
The Company recorded $172 thousand and $137 thousand of net charge-offs during the three and six months ended June 30, 2026, respectively, and had no net charge-offs or recoveries during the three or six months ended June 30, 2025. At June 30, 2026, the allowance for loan credit losses was $20.2 million or 1.00% of outstanding loans, net of unearned income, compared to $19.8 million or 1.00% of outstanding loans, net of unearned income, at December 31, 2025. The increase in the allowance for credit losses during the most recent quarter was predominantly driven by loan portfolio growth and the associated change in the portfolio mix. Management believes the current allowance for credit losses is appropriate given the composition and performance of the loan portfolio.
Previous wording
The following table summarizes the Company’s loan loss experience by loan portfolio for the three months ended March 31, 2026 and March 31, 2025.
Current wording
The following table summarizes the Company’s loan loss experience by loan portfolio for the three and six months ended June 30, 2026 and June 30, 2025.
Previous wording
Total deposits increased $15.4 million or 0.8% to $1.99 billion as of March 31, 2026 compared to $1.97 billion as of December 31, 2025.
Current wording
Total deposits increased $20.7 million or 1.0% to $1.99 billion as of June 30, 2026 compared to $1.97 billion as of December 31, 2025.
Previous wording
Non-interest bearing demand deposits increased $25.5 million or 5.9% to $458.2 million as of March 31, 2026 compared to $432.7 million at December 31, 2025. Non-interest bearing demand deposits represented 23.1% and 21.9% of total deposits at March 31, 2026 and December 31, 2025, respectively.
Current wording
Non-interest bearing demand deposits increased $18.8 million or 4.3% to $451.5 million as of June 30, 2026 compared to $432.7 million at December 31, 2025. Non-interest bearing demand deposits represented 22.7% and 21.9% of total deposits at June 30, 2026 and December 31, 2025, respectively.
Previous wording
Interest-bearing deposits, which include NOW accounts, regular savings accounts, money market accounts, and time deposits, decreased $10.0 million or 0.7% to $1.53 billion as of March 31, 2026 compared to $1.54 billion as of December 31, 2025. Interest-bearing deposits represented 76.9% and 78.1% of total deposits at March 31, 2026 and December 31, 2025, respectively.
Current wording
Interest-bearing deposits, which include NOW accounts, regular savings accounts, money market accounts, and time deposits, increased $1.9 million or 0.1% to $1.54 billion as of June 30, 2026 compared to $1.54 billion as of December 31, 2025. Interest-bearing deposits represented 77.3% and 78.1% of total deposits at June 30, 2026 and December 31, 2025, respectively.
Previous wording
The Company focuses on funding asset growth with deposit accounts, with an emphasis on core deposit growth, as its primary source of deposits. Core deposits consist of checking accounts, NOW accounts, money market accounts, regular savings accounts, time deposits, reciprocal IntraFi Demand® deposits, reciprocal IntraFi Money Market® deposits and reciprocal IntraFi CD® deposits. Core deposits totaled $1.69 billion or 84.8% of total deposits and $1.67 billion or 84.7% of total deposits at March 31, 2026 and December 31, 2025, respectively.
Current wording
The Company focuses on funding asset growth with deposit accounts, with an emphasis on core deposit growth, as its primary source of deposits. Core deposits consist of checking accounts, NOW accounts, money market accounts, regular savings accounts, time deposits, reciprocal IntraFi Demand® deposits, reciprocal IntraFi Money Market® deposits and reciprocal IntraFi CD® deposits. Core deposits totaled $1.67 billion or 83.9% of total deposits and $1.67 billion or 84.7% of total deposits at June 30, 2026 and December 31, 2025, respectively.
Previous wording
The total amount of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) was estimated at $887.3 million at March 31, 2026 and $853.4 million at December 31, 2025. Included in these amounts were $162.8 million and $161.8 million of public fund deposits that are collateralized as of March 31, 2026 and December 31, 2025, respectively. Deposits that were not insured or not collateralized represented 36.5% and 35.1% of total deposits at March 31, 2026 and December 31, 2025, respectively.
Current wording
The total amount of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) was estimated at $893.0 million at June 30, 2026 and $853.4 million at December 31, 2025. Included in these amounts were $189.2 million and $161.8 million of public fund deposits that are collateralized as of June 30, 2026 and December 31, 2025, respectively. Deposits that were not insured or not collateralized represented 35.2% and 35.1% of total deposits at June 30, 2026 and December 31, 2025, respectively.
Previous wording
The Company is a bank holding company with less than $3 billion in assets and does not (i) have significant off balance sheet exposure, (ii) engage in significant non-banking activities, or (iii) have a material amount of securities registered under the Exchange Act. As a result, the Company qualifies as a small bank holding company under the Federal Reserve’s Small Bank Holding Company Policy Statement and is currently not subject to consolidated regulatory capital requirements.
Current wording
The Company is a bank holding company with less than $3 billion in assets and does not (i) have significant off balance sheet exposure, (ii) engage in significant non-banking activities, or (iii) have a material amount of securities registered under the Securities Exchange Act of 1934, as amended (“Exchange Act”). As a result, the Company qualifies as a small bank holding company under the Federal Reserve’s Small Bank Holding Company Policy Statement and is currently not subject to consolidated regulatory capital requirements.
Previous wording
Shareholders’ equity increased $2.5 million or 0.9% to $268.1 million at March 31, 2026 compared to $265.6 million at December 31, 2025. During the three months ended March 31, 2026, the increase in shareholders’ equity was primarily attributable to a $4.8 million increase in retained earnings, partially offset by a $1.9 million decrease in additional paid-in capital due to the Company’s share repurchases coupled with a $0.4 million increase in accumulated other comprehensive loss on the Company’s available-for-sale securities. Book value per share was $19.00 as of March 31, 2026 compared to $18.69 as of December 31, 2025.
Current wording
Shareholders’ equity increased $8.1 million or 3.1% to $273.8 million at June 30, 2026 compared to $265.6 million at December 31, 2025. During the six months ended June 30, 2026, the increase in shareholders’ equity was primarily attributable to a $10.6 million increase in retained earnings, partially offset by a $1.8 million decrease in additional paid-in capital due to the Company’s share repurchases coupled with a $0.6 million increase in accumulated other comprehensive loss on the Company’s available-for-sale securities. Book value per share was $19.40 as of June 30, 2026 compared to $18.69 as of December 31, 2025.
Previous wording
In August of 2025, the Company’s Board of Directors authorized the extension of the Company’s stock repurchase program that was originally adopted in August of 2021. Under the stock repurchase program, the Company may repurchase up to 700,000 shares of its common stock, par value of $0.01 per share, or approximately 5% of its outstanding shares of common stock. The stock repurchase program will expire on August 31, 2026, or earlier if all the authorized shares have been repurchased. The Company repurchased 103,507 shares of its outstanding common stock under the program during the three months ended March 31, 2026.
Current wording
In August of 2025, the Company’s Board of Directors authorized the extension of the Company’s stock repurchase program that was originally adopted in August of 2021. Under the stock repurchase program, the Company may repurchase up to 700,000 shares of its common stock, par value of $0.01 per share, or approximately 5% of its outstanding shares of common stock. The stock repurchase program will expire on August 31, 2026, or earlier if all the authorized shares have been repurchased. The Company did not repurchase any shares of its outstanding common stock during the three months ended June 30, 2026 and repurchased 103,507 shares of its outstanding common stock during the six months ended June 30, 2026.
Previous wording
In addition to the liquidity provided by balance sheet cash flows, the Company supplements its liquidity with additional sources such as secured borrowing credit lines with the FHLB and the Federal Reserve Bank. Specifically, the Company has pledged a portion of its commercial real estate and residential real estate loan portfolios to the FHLB and commercial loans to the Federal Reserve Bank. Based on collateral pledged as of March 31, 2026, the remaining FHLB available borrowing capacity was $470.6 million. Additional borrowing capacity with the Federal Reserve Bank was approximately $157.5 million as of March 31, 2026.
Current wording
In addition to the liquidity provided by balance sheet cash flows, the Company supplements its liquidity with additional sources such as secured borrowing credit lines with the FHLB and the Federal Reserve Bank. Specifically, the Company has pledged a portion of its commercial real estate and residential real estate loan portfolios to the FHLB and commercial loans to the Federal Reserve Bank. Based on collateral pledged as of June 30, 2026, the remaining FHLB available borrowing capacity was $469.0 million. Additional borrowing capacity with the Federal Reserve Bank was approximately $125.1 million as of June 30, 2026.
Previous wording
During the first quarter of 2026, a $15.0 million FHLB advance, carrying an interest rate of 4.14%, matured and was replaced with the FHLB advance of the same principal amount at an interest rate of 3.61%. At March 31, 2026, the Company had three outstanding FHLB advances totaling $56.0 million with interest rates ranging from 3.61% to 3.98%.
Current wording
At June 30, 2026, the Company had three outstanding FHLB advances totaling $56.0 million with interest rates ranging from 3.61% to 3.98%.
Previous wording
Total liquidity, defined as cash and cash equivalents, unencumbered securities at fair value, and available secured borrowing capacity, was $881.0 million at March 31, 2026 compared to $827.0 million at December 31, 2025.
Current wording
Total liquidity, defined as cash and cash equivalents, unencumbered securities at fair value, and available secured borrowing capacity, was $827.2 million at June 30, 2026 compared to $827.0 million at December 31, 2025.
Showing the first 40 of 41 pairs. Open the source sections for the rest.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
The following table presents the average balance for each principal balance sheet category, and the amount of interest income or expense associated with that category, as well as corresponding average yields earned and rates paid for the six months ended June 30, 2026 and 2025.
Current report — wording carried from elsewhere
(1)Tax benefit was calculated using the federal statutory tax rate of 21%.
Current report — wording carried from elsewhere
Interest expense decreased $1.1 million to $25.0 million for the six months ended June 30, 2026 compared to $26.1 million for the six months ended June 30, 2025, primarily due to a decrease in rates on interest-bearing deposits, partially offset by an increase in volume of interest-bearing deposits. The decrease in rates on deposits was mainly a result of the repricing of the Company’s interest-bearing deposit accounts in conjunction with the decrease in federal funds benchmark interest rates that took place starting in September of 2025.
Current report — wording carried from elsewhere
The following table summarizes non-interest expense for the six months ended June 30, 2026 and 2025.
Current report — wording carried from elsewhere
The Company recorded a $258 thousand provision for credit losses for the three months ended June 30, 2026 compared to $537 thousand for the three months ended June 30, 2025. Additional discussion of the provision for credit losses is included below under the headingProvision for Credit Losses.
Current report — wording carried from elsewhere
Net Interest Income and Net Interest Margin
Current report — wording carried from elsewhere
Average Balance Sheets and Interest Rates on Interest-Earning Assets and Interest-Bearing Liabilities
Current report — wording carried from elsewhere
Tax-equivalent net interest income is calculated by adding the tax benefit on certain securities and loans, whose interest is tax-exempt, to total interest income then subtracting total interest expense. The following table, “Tax-Equivalent Net Interest Income,” reconciles net interest income to tax-equivalent net interest income, which is a non-GAAP measure.
Current report — wording carried from elsewhere
The following table presents the effects of changing rates and volumes on tax-equivalent net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated to volume.
Current report — wording carried from elsewhere
The following table sets forth the average balances of deposits and the average interest rates paid for the six months ended June 30, 2026 and 2025.