MUNCY COLUMBIA FINANCIAL Corp
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
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001174947-26-000564
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.
0001174947-26-000773
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 121 previous paragraphs and 141 current paragraphs.
82 unchanged; 35 reworded; 23 added; 4 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 41 previous and 39 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 (23)
Current report
Cash and cash equivalents decreased $28.4 million or 58.5% from $48.5 million at December 31, 2025 to $20.1 million at June 30, 2026. This decrease is directly related to the prepayment of long-term borrowings during the six months ended June 30, 2026, which is discussed in further detail below.
Current report
Short-term borrowings, which consist primarily of securities sold under agreements to repurchase and periodic overnight or short-term FHLB advances, increased $11.8 million from $12.5 million at December 31, 2025 to $24.3 million at June 30, 2026. Included in this change was a decrease of securities sold under agreements to repurchase of $6.0 million along with an increase in short-term FHLB advances of $17.8 million. The decrease in repurchase agreements was due to the strategic initiative noted above. Short-term FHLB advances are utilized in the daily management of the Bank’s loan and deposit portfolios and increased due to strong loan demand experienced during the six months ended June 30, 2026.
Current report
Long-term borrowings, which consist of advances due to the FHLB – Pittsburgh, totaled $40.6 million at December 31, 2025 and $0 at June 30, 2026. The Corporation prepaid, in full, its outstanding long-term FHLB borrowings during the three months ended June 30, 2026. This resulted in an aggregate prepayment penalty of approximately $49,000, as well as the immediate recognition of approximately $313,000 of remaining unamortized fair value adjustments related to these borrowings during the three months ended June 30, 2026, on a pretax basis. The prepayment of long-term borrowings was executed to reduce borrowing costs and enhance net interest margin on a prospective basis. The weighted-average FHLB interest rate of long-term borrowings which were prepaid was 3.96%.
Current report
Net interest income increased $2.0 million, or 13.2% to $16.8 million for the three months ended June 30, 2026, from $14.8 million for the same period in 2025. Non-interest income was $2.6 million for the three months ended June 30, 2026, an increase of $0.3 million, or 14.4%, from $2.2 million for the same period in 2025, which primarily reflected increases in gain on settlement of bank-owned life insurance claims and other non-interest income offset by increases in realized losses on available-for-sale debt securities. Non-interest expense was $10.4 million for the three months ended June 30, 2026, an increase of $0.6 million, or 5.7%, from $9.9 million for the same period in 2025, which was primarily related to increases in salaries and employee benefits partially offset by a decrease in data processing and telecommunications.
Current report
Net interest income increased $4.5 million, or 15.8% to $33.2 million for the six months ended June 30, 2026, from $28.7 million for the same period in 2025. Non-interest income was $5.1 million for the six months ended June 30, 2026, an increase of $0.4 million, or 7.9%, from $4.7 million for the same period in 2025, which primarily reflected increases in gain on settlement of bank-owned life insurance claims and other non-interest income offset by increases in loss on sale of loans and realized losses on available-for-sale debt securities. Non-interest expense was $20.6 million for the six months ended June 30, 2026, an decrease of $0.3 million, or 1.6%, from $20.9 million for the same period in 2025, which was primarily related to decreases in salaries and employee benefits partially offset by an increase in professional fees.
Current report
On a year-to-date basis, tax equivalent net interest income increased $4.54 million, or 15.5%, to $33.8 million for the six months ended June 30, 2026, from $29.3 million for the comparable period of 2025. The increase in tax-equivalent net interest income for the year-to-date period was largely due to a $3.8 million, or 8.8%, increase in tax equivalent interest income, to $46.9 million, from $43.1 million for 2025, combined with a decrease in interest expense of $0.7 million, or 5.3%, to $13.1 million for the six months ended June 30, 2026, from $13.8 million for the six months ended June 30, 2025. Similar to the quarterly period, the $3.8 million or 8.8%, increase in year-to-date tax equivalent interest income was primarily due to higher earning-asset yields, coupled with an increase in average earning assets balances. The tax-equivalent yield on average earning assets increased 23 basis points to 6.03% for the six months ended June 30, 2026 from 5.80% for the same period in 2025, which resulted in a corresponding increase of $2.1 million to tax-equivalent interest income. The tax-equivalent yield on loans increased 13 basis points, while the tax-equivalent yield on investments increased 76 basis points comparing the year-to-date periods of 2026 and 2025, which resulted in corresponding increases in tax-equivalent interest income of $0.8 million and $1.4 million, respectively. Regarding earning-asset volumes, total average earning assets increased $69.5 million, or 4.6%, to $1.570 billion for the six months ended June 30, 2026, from $1.500 billion for the same period of 2025, which resulted in a corresponding increase in tax-equivalent interest income of $1.7 million. Similar to the quarterly period, this was primarily due to an increase in average total loans which increased $33.3 million, or 2.9%, to $1.189 billion for the six months ended June 30, 2026, from $1.156 billion for the same comparable period of 2025, which was primarily as a result of strong organic loan demand. This increase resulted in a corresponding increase in tax-equivalent interest income of $1.1 million.
Current report
The $0.7 million, or 5.3%, decrease in year-to-date interest expense was largely due to a significant decrease in average total borrowings. Average borrowed funds averaged $39.7 million for the six months ended June 30, 2026, a decrease of $50.7 million from $90.4 million for the same period in 2025. Lower volumes of average borrowed funds resulted in a corresponding decrease in interest expense of $1.1 million. This decrease was partially offset by an increase in interest-bearing deposit volumes. Comparing the year-to-date periods of 2026 and 2025, average interest-bearing deposits increased $94.3 million, or 8.9%, to $1.154 billion from $1.060 billion, respectively, increasing interest expense by $1.2 million.
Current report
(1) Average volume information was compared using daily averages for interest-earning and bearing accounts.
Current report
(2) Interest on loans includes loan fee income.
Current report
(3) Tax exempt interest revenue is shown on a tax-equivalent basis using a statutory federal income tax rate of 21 percent for 2026 and 2025.
Current report
(4) Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings.
Current report
(5) Net interest margin is computed by dividing annualized tax-equivalent net interest income by total interest earning assets.
Current report
(6) Interest rate spread represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities.
Current report
SIX MONTHS ENDED JUNE 30,
Current report
(1) Average volume information was compared using daily averages for interest-earning and bearing accounts.
Current report
(2) Interest on loans includes loan fee income.
Current report
(3) Tax exempt interest revenue is shown on a tax-equivalent basis using a statutory federal income tax rate of 21 percent for 2026 and 2025.
Current report
(4) Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings.
Current report
(5) Net interest margin is computed by dividing annualized tax-equivalent net interest income by total interest earning assets.
Current report
(6) Interest rate spread represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities.
Current report
Total non-interest income increased $323,000 or 14.4% to $2,560,000 for the three months ended June 30, 2026 compared to $2,237,000 for the three months ended June 30, 2025. Realized losses on available-for-sale debt securities, net, totaled $1,445,000 for the three months ended June 30, 2026 compared to $426,000 for the same period of 2025. This change was offset by $605,000 of one-time gains recognized related to bank-owned life insurance claims during the three months ended June 30, 2026 as well as an increase in other non-interest income of $400,000 which was primarily related to incentives received pursuant to the Bank’s debit card processing contract during the three months ended June 30, 2026.
Current report
For the six months ended June 30, 2026, total non-interest income increased $368,000 or 7.9% to $5,050,000, compared to $4,682,000 for the six months ended June 30, 2025. Consistent with the quarterly period, realized losses on available-for-sale debt securities, net, resulted in a decrease of $1,019,000. Additionally, for the six months ended June 30 2026, a $482,000 loss on sale of loans was recorded, compared to a gain on sale of loans of $154,000 for the six months ended June 30, 2025, which relates to the loan sale noted above. Offsetting these decreases was $605,000 of one-time gains recognized related to bank-owned life insurance claims as well as an increase in other non-interest income of $980,000 which was primarily related to incentives received pursuant to the Bank’s debit card processing contract and a sales tax refund received from the Commonwealth of Pennsylvania resulting from a state sales and use tax review engagement during the six months ended June 30, 2026.
Current report
Total non-interest expense increased $564,000 from $9,856,000 for the three months ended June 30, 2025, to $10,420,000 for the three months ended June 30, 2026. Salaries and employee benefits expense of $5,580,000 for the three months ended June 30, 2026 increased $596,000 from $4,984,000 for the three months ended June 30, 2025. This increase was related to health insurance expenses associated with the Corporation’s partially self-funded health insurance plan which were $316,000 higher for the three months ended June 30, 2026 than the comparable 2025 period, along with ongoing salary and wage increases for employees. The increase in salaries and employee benefits expense was partially offset by a decrease in data processing and telecommunications expenses of $116,000 due to one-time charges incurred in conjunction with the implementation of new products during the three months ended June 30, 2025.
Removed paragraphs (4)
Previous report
Cash and cash equivalents increased $11.9 million or 24.5% from $48.5 million at December 31, 2025 to $60.4 million at March 31, 2026. This increase is primarily related to increased correspondent bank balances resulting from strong deposit growth during the three months ended March 31, 2026.
Previous report
Available-for-sale debt securities increased $28.0 million to $355.2 million at March 31, 2026 from $327.2 million at December 31, 2025. The Corporation purchased $38.6 million in available-for-sale debt securities during the three months ended March 31, 2026. Partially offsetting this activity was proceeds from paydowns, calls and maturities of available-for-sale debt securities of $8.0 million and a decrease in fair value of $3.2 million during the three months ended March 31, 2026.
Previous report
Net interest income increased $2.6 million, or 18.6% to $16.4 million for the three months ended March 31, 2026, from $13.9 million for the same period in 2025. Non-interest income was $2.5 million for the three months ended March 31, 2026, an increase of $0.1 million, or 1.8%, from $2.4 million for the same period in 2025, which primarily reflected a decrease in (loss) gain on sale of loans offset by increases in gains (losses) on marketable equity securities and other non-interest income. Non-interest expense was $10.2 million for the three months ended March 31, 2026, a decrease of $0.9 million, or 8.1%, from $11.1 million for the same period in 2025, which was primarily related to decreases in salaries and employee benefits and automated teller machine and interchange expenses partially offset by an increase in professional fees.
Previous report
Total non-interest income increased $45,000 to $2,490,000 for the first quarter 2026, compared to the first quarter 2025 amount of $2,445,000. For the first quarter 2026, a $637,000 loss on sale of loans was recorded, compared to a gain on sale of loans of $83,000 for the first quarter 2025. As noted above, on January 28, 2026, the Bank entered into an Asset Purchase and Interim Servicing Agreement pursuant to which the Bank agreed to sell a portfolio of 82 individual delinquent, nonperforming or reperforming 1-4 family residential mortgage loans. The purchase price was approximately $9.1 million and was paid in cash. The outstanding principal balance of the loans was approximately $9.8 million. The resulting pretax loss of $714,000 was recognized during the first quarter 2026. This loss was partially offset by ongoing gains on sale of loans of $77,000 recognized during the first quarter 2026. Other significant variances in total non-interest income included a sales tax refund received from the Commonwealth of Pennsylvania of $454,000 during the first quarter 2026 resulting from a state sales and use tax review engagement, an increase in gains (losses) on marketable equity securities of $113,000 due to market value changes comparing the first quarter 2026 to the first quarter 2025 and an increase in other non-interest income of $126,000 due primarily to a $94,000 gain on sale of foreclosed assets held for sale recorded during the first quarter 2026.
Reworded paragraphs (35)
Previous wording
Although the Corporation’s management uses the best information available, the level of the ACL remains an estimate which is subject to significant judgment and short-term change which could have a significant impact on the Corporation’s financial condition or results of operations. From January 1, 2026 to March 31, 2026, the level of the ACL remained consistent at $10.0 million and the ACL to total loans decreased from 0.85% to 0.84%. The Corporation’s ACL is highly sensitive to the methods, assumptions and estimates underlying its calculation. See Note 3 “Loans and Allowance for Credit Losses” within the Corporation’s Notes to the Unaudited Consolidated Financial Statements which are included in Part I of this Quarterly Report on Form 10-Q for additional qualitative and quantitative information about the Corporation’s ACL.
Current wording
Although the Corporation’s management uses the best information available, the level of the ACL remains an estimate which is subject to significant judgment and short-term change which could have a significant impact on the Corporation’s financial condition or results of operations. From January 1, 2026 to June 30, 2026, the level of the ACL increased from $10.0 million to $10.3 million and the ACL to total loans remained consistent at 0.85%. The Corporation’s ACL is highly sensitive to the methods, assumptions and estimates underlying its calculation. See Note 3 “Loans and Allowance for Credit Losses” within the Corporation’s Notes to the Unaudited Consolidated Financial Statements which are included in Part I of this Quarterly Report on Form 10-Q for additional qualitative and quantitative information about the Corporation’s ACL.
Previous wording
Total assets at March 31, 2026, were $1.717 billion, an increase of $44.1 million, or 2.6% from $1.673 billion at December 31, 2025. The change in total assets primarily reflects increases in cash and cash equivalents, available-for-sale debt securities and loans receivable. Cash and cash equivalents increased $11.9 million, available-for-sale debt securities increased $27.9 million and gross loans receivable increased $3.9 million. Total liabilities at March 31, 2026, were $1.525 billion, an increase of $44.6 million, or 3.0% from $1.481 billion at December 31, 2025. Deposit balances increased by $40.8 million since December 31, 2025.
Current wording
Total assets at June 30, 2026, were $1.672 billion, a decrease of $0.9 million, or 0.1% from $1.673 billion at December 31, 2025. The change in total assets primarily reflects a decrease in cash and cash equivalents offset by an increase in loans receivable. Cash and cash equivalents decreased $28.4 million and gross loans receivable increased $28.6 million. Total liabilities at June 30, 2026, were $1.474 billion, a decrease of $7.0 million, or 0.5% from $1.481 billion at December 31, 2025. Deposit balances increased by $20.8 million, short-term borrowings increased by $11.8 million and long-term borrowings decreased by $40.6 million since December 31, 2025.
Previous wording
Total average assets increased 5.4% from $1.601 billion for the three months ended March 31, 2025, to $1.688 billion for the three months ended March 31, 2026. Average earning assets were $1.571 billion for the three months ended March 31, 2026 and $1.499 billion for the three months ended March 31, 2025. Average interest-bearing liabilities were $1.197 billion for the three months ended March 31, 2026 and $1.154 billion for the three months ended March 31, 2025.
Current wording
Total average assets increased 5.1% from $1.605 billion for the six months ended June 30, 2025, to $1.687 billion for the six months ended June 30, 2026. Average earning assets were $1.570 billion for the six months ended June 30, 2026 and $1.500 billion for the six months ended June 30, 2025. Average interest-bearing liabilities were $1.194 billion for the six months ended June 30, 2026 and $1.150 billion for the six months ended June 30, 2025.
Previous wording
Gross loans receivable held for investment increased $3.9 million or 0.3% to $1.182 billion at March 31, 2026 from $1.178 billion at December 31, 2025. New loan originations for the three months ended March 31, 2026 totaled $11.8 million. Partially offsetting this increase was the sale of approximately $9.8 million in mortgage loans for the three months ended March 31, 2026. On January 28, 2026, the Bank entered into an Asset Purchase and Interim Servicing Agreement pursuant to which the Bank agreed to sell a portfolio of 82 individual delinquent, nonperforming or reperforming 1-4 family residential mortgage loans. The outstanding principal balance of the loans was approximately $9.8 million. The sale resulted in reductions in past-due and nonaccrual residential real estate loans comparing respective March 31, 2026 and December 31, 2025 amounts.
Current wording
Gross loans receivable held for investment increased $28.6 million or 2.4% to $1.206 billion at June 30, 2026 from $1.178 billion at December 31, 2025. New loan originations for the six months ended June 30, 2026 totaled $34.4 million. Partially offsetting this increase was the sale of approximately $9.8 million in mortgage loans for the six months ended June 30, 2026. On January 28, 2026, the Bank entered into an Asset Purchase and Interim Servicing Agreement pursuant to which the Bank agreed to sell a portfolio of 82 individual delinquent, nonperforming or reperforming 1-4 family residential mortgage loans. The outstanding principal balance of the loans was approximately $9.8 million. The sale resulted in reductions in past-due and nonaccrual residential real estate loans comparing respective June 30, 2026 and December 31, 2025 amounts.
Previous wording
Interest-bearing deposits increased $34.6 million to $1.170 billion at March 31, 2026 from $1.136 billion at December 31, 2025. Noninterest-bearing deposits increased 2.2% from $277.0 million at December 31, 2025 to $283.2 million at March 31, 2026. The increase in total deposits during the three months ended March 31, 2026 was a result of strong organic deposit growth in combination with a strategic initiative to reposition customer repurchase agreements, which are classified as short-term borrowings, into core deposit accounts.
Current wording
Interest-bearing deposits increased $20.5 million to $1.156 billion at June 30, 2026 from $1.136 billion at December 31, 2025. Noninterest-bearing deposits increased 0.1% from $277.0 million at December 31, 2025 to $277.4 million at June 30, 2026. The increase in total deposits during the six months ended June 30, 2026 was a result of organic deposit growth in combination with a strategic initiative to reposition customer repurchase agreements, which are classified as short-term borrowings, into core deposit accounts.
Previous wording
Total stockholder’s equity decreased by $0.5 million, or 0.3%, from $192.5 million at December 31, 2025, to $192.1 million at March 31, 2026. This decrease is primarily attributable to earnings, net of cash dividends, offset by an increase in accumulated other comprehensive loss due to changes in the fair values of available-for-sale debt securities. Accumulated other comprehensive loss amounted to $6.6 million as of March 31, 2026 and $4.0 million as of December 31, 2025.
Current wording
Total stockholder’s equity increased by $6.1 million, or 3.2%, from $192.5 million at December 31, 2025, to $198.7 million at June 30, 2026. This increase is primarily attributable to earnings, net of cash dividends, offset by an increase in accumulated other comprehensive loss due to changes in the fair values of available-for-sale debt securities. Accumulated other comprehensive loss amounted to $5.5 million as of June 30, 2026 and $4.0 million as of December 31, 2025.
Previous wording
The loan-to-deposit ratio is a key measurement of liquidity. Our loan-to-deposit ratio decreased from 82.6% as of December 31, 2025 to 80.6% as of March 31, 2026 due to the asset/liability mix changes noted above, and remains within internal policy limits.
Current wording
The loan-to-deposit ratio is a key measurement of liquidity. Our loan-to-deposit ratio increased from 82.6% as of December 31, 2025 to 83.4% as of June 30, 2026 due to the asset/liability mix changes noted above, and remains within internal policy limits.
Previous wording
The majority of the Corporation's debt securities are fixed-rate instruments and inherently subject to interest rate risk, as the value of fixed-rate securities fluctuates with changes in interest rates. Generally, a security's value reacts inversely with changes in interest rates. Available-for-sale securities are carried at fair value, with unrealized gains or losses reported in the accumulated other comprehensive income or loss component of stockholder's equity, net of deferred income taxes. At March 31, 2026, the Corporation reported a net unrealized loss, included in accumulated other comprehensive loss, of $6.6 million, net of deferred income taxes of $1.7 million, an increase of $2.5 million compared to the net unrealized holding loss of $4.0 million, net of deferred income taxes of $1.1 million, at December 31, 2025. Any future changes in interest rates could result in changes in the fair value of the Corporation’s securities portfolio and capital position. However, accumulated other comprehensive income and loss related to available-for-sale debt securities is excluded from regulatory capital and does not have an impact on the Corporation's regulatory capital ratios.
Current wording
The majority of the Corporation's debt securities are fixed-rate instruments and inherently subject to interest rate risk, as the value of fixed-rate securities fluctuates with changes in interest rates. Generally, a security's value reacts inversely with changes in interest rates. Available-for-sale securities are carried at fair value, with unrealized gains or losses reported in the accumulated other comprehensive income or loss component of stockholder's equity, net of deferred income taxes. At June 30, 2026, the Corporation reported a net unrealized loss, included in accumulated other comprehensive loss, of $5.5 million, net of deferred income taxes of $1.5 million, an increase of $1.5 million compared to the net unrealized holding loss of $4.0 million, net of deferred income taxes of $1.1 million, at December 31, 2025. Any future changes in interest rates could result in changes in the fair value of the Corporation’s securities portfolio and capital position. However, accumulated other comprehensive income and loss related to available-for-sale debt securities is excluded from regulatory capital and does not have an impact on the Corporation's regulatory capital ratios.
Previous wording
At March 31, 2026 and December 31, 2025, the Corporation held $1.5 million and $1.4 million, respectively, in equity securities recorded at fair value. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three months ended March 31, 2026 and 2025:
Current wording
At June 30, 2026 and December 31, 2025, the Corporation held $1.6 million and $1.4 million, respectively, in equity securities recorded at fair value. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three and six months ended June 30, 2026 and 2025:
Previous wording
Gross loans receivable increased 0.3% from $1.178 billion at December 31, 2025 to $1.182 billion at March 31, 2026. The percentage distribution in the loan portfolio is shown in the tables below:
Current wording
Gross loans receivable increased 2.4% from $1.178 billion at December 31, 2025 to $1.206 billion at June 30, 2026. The percentage distribution in the loan portfolio is shown in the tables below:
Previous wording
As of March 31, 2026, commercial real estate loans totaled $417.7 million or 35.4% of total gross loans. Of this amount commercial mortgage loans represented $368.1 million or 31.2% of total gross loans and student housing loans represented $49.6 million or 4.2% of total gross loans. The following table presents the distribution of commercial real estate loans and related percentage of the total loan portfolio as of March 31, 2026 and December 31, 2025:
Current wording
As of June 30, 2026, commercial real estate loans totaled $435.7 million or 36.1% of total gross loans. Of this amount commercial mortgage loans represented $386.1 million or 32.0% of total gross loans and student housing loans represented $49.7 million or 4.1% of total gross loans. The following table presents the distribution of commercial real estate loans and related percentage of the total loan portfolio as of June 30, 2026 and December 31, 2025:
Previous wording
Total non-performing assets amounted to $9,360,000, or 0.55% of total assets at March 31, 2026, as compared to $11,978,000, or 0.72% of total assets at December 31, 2025. For the three months ended March 31, 2026, the Corporation experienced decreases in non-accrual loans in all major loan classifications, however, the most significant decreases was in residential real estate loans which decreased $2.3 million, primarily related to the loan sale mentioned above.
Current wording
Total non-performing assets amounted to $8,881,000, or 0.53% of total assets at June 30, 2026, as compared to $11,978,000, or 0.72% of total assets at December 31, 2025. For the six months ended June 30, 2026, the Corporation experienced a significant decrease in nonaccrual loans, which was largely driven by nonaccrual residential real estate loans which decreased $3.0 million, primarily related to the loan sale mentioned previously.
Previous wording
The allowance for credit losses was $10.0 million at both March 31, 2026 and December 31, 2025. The allowance equaled 0.84% of total loans, net of unearned fees and costs and unamortized fair value adjustments, at March 31, 2026 as compared to 0.85% at December 31, 2025. The allowance for credit losses is analyzed quarterly and reviewed by the Corporation’s Board of Directors. Regular loan meetings with the Corporation’s Board of Directors reviewed new loans over specified thresholds. Delinquent loans, loan exceptions and certain large loans are addressed by the full Board no less than monthly to determine compliance with policies.
Current wording
The allowance for credit losses was $10.3 million and $10.0 million at June 30, 2026 and December 31, 2025, respectively. The allowance equaled 0.85% of total loans, net of unearned fees and costs and unamortized fair value adjustments, at June 30, 2026 and December 31, 2025. The allowance for credit losses is analyzed quarterly and reviewed by the Corporation’s Board of Directors. Regular loan meetings with the Corporation’s Board of Directors reviewed new loans over specified thresholds. Delinquent loans, loan exceptions and certain large loans are addressed by the full Board no less than monthly to determine compliance with policies.
Previous wording
There were no material changes to the allowance for credit losses in total or on an individual segment basis from December 31, 2025 to March 31, 2026. The largest changes on an individual segment basis from December 31, 2025 to March 31, 2026 include a decrease in commercial and industrial loans from $1,037,000, or 10.4% of the total allowance, at December 31, 2025 to $895,000, or 9.0% of the total allowance, at March 31, 2026, as well as an increase in commercial real estate loans from $6,148,000, or 61.7% of the total allowance, at December 31, 2025 to $6,323,000, or 63.4% of the total allowance, at March 31, 2026. The decrease for commercial and industrial loans is primarily related to the impact of decreases in non-accrual loans, which impacted probability of default calculations, as well as a reduction in total loan volume. The increase for commercial real estate loans is primarily related to increases in loan volume and changes in qualitative factors, partially offset by the impact of lower individually evaluated allowances related to student housing loans due to a decrease in loan balances.
Current wording
There were no material changes to the allowance for credit losses in total or on an individual segment basis from December 31, 2025 to June 30, 2026. The largest changes on an individual segment basis from December 31, 2025 to June 30, 2026 include a decrease in commercial and industrial loans from $1,037,000, or 10.4% of the total allowance, at December 31, 2025 to $765,000, or 7.1% of the total allowance, at June 30, 2026, as well as an increase in commercial real estate loans from $6,148,000, or 61.7% of the total allowance, at December 31, 2025 to $6,528,000, or 63.6% of the total allowance, at June 30, 2026. The decrease for commercial and industrial loans is primarily related to the impact of decreases in non-accrual loans, which impacted probability of default calculations, as well as a reduction in total loan volume. The increase for commercial real estate loans is primarily related to increases in loan volume and changes in qualitative factors, partially offset by the impact of lower individually evaluated allowances related to student housing loans due to a decrease in loan balances.
Previous wording
The following tables summarize the average balances outstanding and average interest rates for each major category of deposits for the three months ended March 31, 2026 and 2025, respectively:
Current wording
The following tables summarize the average balances outstanding and average interest rates for each major category of deposits for the three and six months ended June 30, 2026 and 2025, respectively:
Previous wording
The Corporation believes its deposit product offerings are properly structured to attract and retain core low-cost deposit relationships. The average cost of interest-bearing deposits for the three months ended March 31, 2026 and 2025 was 2.09% and 2.25%, respectively.
Current wording
The Corporation believes its deposit product offerings are properly structured to attract and retain core low-cost deposit relationships. The average cost of interest-bearing deposits for the three and six months ended June 30, 2026 was 2.08% and 2.09%, respectively. The average cost of interest-bearing deposits for the three and six months ended June 30, 2025 was 2.26% and 2.25%, respectively.
Previous wording
At March 31, 2026, estimated uninsured deposits, or the portion of deposit accounts which exceeded the Federal Deposit Corporation insurance limit, totaled $417.0 million. Of this amount, $149.2 million was collateralized by securities pledged by the Corporation or letters of credit issued through the Federal Home Loan Bank of Pittsburgh. Time deposits of $250,000 or more totaled approximately $109.9 million at March 31, 2026.
Current wording
At June 30, 2026, estimated uninsured deposits, or the portion of deposit accounts which exceeded the Federal Deposit Corporation insurance limit, totaled $396.9 million. Of this amount, $152.8 million was collateralized by securities pledged by the Corporation or letters of credit issued through the Federal Home Loan Bank of Pittsburgh. Time deposits of $250,000 or more totaled approximately $111.0 million at June 30, 2026.
Previous wording
Short-term borrowings consist primarily of securities sold under agreements to repurchase and periodic overnight or short-term Federal Home Loan Bank advances. Average short-term borrowings amounted to 1.1% and 4.7% of total interest-bearing liabilities for the three months ended March 31, 2026 and 2025, respectively. This reduction was primarily related to the migration of customer repurchase agreements as well as a paydown in short-term FHLB borrowings during 2025 and 2026.
Current wording
Short-term borrowings consist primarily of securities sold under agreements to repurchase and periodic overnight or short-term Federal Home Loan Bank advances. Average short-term borrowings amounted to 1.1% of total average interest-bearing liabilities for both the three and six months ended June 30, 2026. Average short-term borrowings amounted to 2.2% and 3.4% of total average interest-bearing liabilities for the three and six months ended June 30, 2025, respectively.
Previous wording
Long-term borrowings consist of advances due to the FHLB - Pittsburgh. Under terms of a blanket agreement, the loans are secured by certain qualifying assets of the Bank which consist principally of first mortgage loans. The carrying value of these collateralized items was $821.3 million at March 31, 2026. The Bank has lines of credit with the Federal Reserve Bank Discount Window, FHLB – Pittsburgh, and Atlantic Community Bankers Bank in the aggregate amount of $592.2 million at March 31, 2026. The unused portion of these lines of credit was $545.0 million at March 31, 2026.
Current wording
Long-term borrowings consist of advances due to the FHLB - Pittsburgh. Under terms of a blanket agreement, the loans are secured by certain qualifying assets of the Bank which consist principally of first mortgage loans. The carrying value of these collateralized items was $833.5 million at June 30, 2026. The Bank has lines of credit with the Federal Reserve Bank Discount Window, FHLB – Pittsburgh, and Atlantic Community Bankers Bank in the aggregate amount of $600.8 million at June 30, 2026. The unused portion of these lines of credit was $577.0 million at June 30, 2026.
Previous wording
Net income for the three months ended March 31, 2026 was $7.2 million, or $2.02 per share, compared to $4.3 million, or $1.23 per share, for the three months ended March 31, 2025. The increase in net income for the three months ended March 31, 2026, compared to the same period in 2025, was primarily attributable to a significant increase in net interest income as well as a decrease in non-interest expense.
Current wording
Net income for the three months ended June 30, 2026 was $7.2 million, or $0.67 per share, compared to $5.8 million, or $0.54 per share, for the three months ended June 30, 2025. Net income for the six months ended June 30, 2026 was $14.3 million, or $1.35 per share, compared to $10.1 million, or $0.95 per share, for the six months ended June 30, 2025. The increase in net income for the three and six months ended June 30, 2026, compared to the same period in 2025, was primarily attributable to a significant increase in net interest income.
Previous wording
For the three months ended March 31, 2026, the annualized return on average assets was 1.72%, compared to 1.10% for the comparable period of 2025. The annualized return on average equity was 14.83% for the three months ended March 31, 2026, compared to 10.33% for the comparable period of 2025. For the three months ended March 31, 2026 the Corporation declared dividends to holders of common stock of $1.46 per share, which includes the impact of a special one-time cash dividend of $1.00 per share, as compared to $0.45 for the same period of 2025.
Current wording
For the three and six months ended June 30, 2026, the annualized return on average assets was 1.70% and 1.71%, respectively, compared to 1.44% and 1.27%, respectively for the comparable periods of 2025. The annualized return on average equity was 14.65% and 14.74%, respectively, for the three and six months ended June 30, 2026, compared to 13.33% and 11.85%, respectively, for the comparable periods of 2025. For the three months ended June 30, 2026 total cash dividends of $0.155 per share were declared as compared to $0.317 for the same period of 2025. For the six months ended June 30, 2026, total cash dividends of $0.642 per share were declared as compared to $0.467 for the same period of 2025, which included the impact of special one-time dividends of $0.333 per share and $0.167 per share for the six months ended June 30, 2026 and 2025, respectively.
Previous wording
Tax-equivalent net interest income increased $2.6 million, or 18.2%, to $16.8 million for the three months ended March 31, 2026 compared to $14.2 million for the same period in 2025. The increase in tax-equivalent net interest income was due to an increase in tax-equivalent interest income reflecting higher earning asset volumes and yields, along with a decrease in interest expense which resulted primarily from a significant decrease in average borrowings coupled with a decrease in the average rate paid on total interest-bearing liabilities. Tax-equivalent net interest margin, a key measurement used in the banking industry to measure income from earning assets relative to the cost to fund those assets, is calculated by dividing tax-equivalent net interest income by average interest-earning assets. The Corporation’s tax-equivalent net interest margin increased 50 basis points to 4.33% for the three months ended March 31, 2026 compared to 3.83% for the same period of 2025, which was largely caused by increases in yields on earning assets along with a decrease in total in cost of funds. Additionally, interest rate spread, the difference between the average yield on interest-earning assets, shown on a fully tax-equivalent basis, and the average cost of interest-bearing liabilities, increased 54 basis points to 3.81% for the three months ended March 31, 2026 compared to 3.27% for the same period in 2025.
Current wording
Tax-equivalent net interest income increased $2.0 million, or 13.0%, to $17.1 million for the three months ended June 30, 2026 compared to $15.1 million for the same period in 2025. The increase in tax-equivalent net interest income was due to an increase in tax-equivalent interest income reflecting higher earning asset volumes and yields, along with a decrease in interest expense which resulted primarily from a significant decrease in average borrowings coupled with a decrease in the average rate paid on total interest-bearing liabilities. Tax-equivalent net interest margin, a key measurement used in the banking industry to measure income from earning assets relative to the cost to fund those assets, is calculated by dividing tax-equivalent net interest income by average interest-earning assets. The Corporation’s tax-equivalent net interest margin increased 33 basis points to 4.37% for the three months ended June 30, 2026 compared to 4.04% for the same period of 2025, which was largely caused by increases in yields on earning assets along with a decrease in total in cost of funds. Additionally, interest rate spread, the difference between the average yield on interest-earning assets, shown on a fully tax-equivalent basis, and the average cost of interest-bearing liabilities, increased 36 basis points to 3.83% for the three months ended June 30, 2026 compared to 3.47% for the same period in 2025.
Previous wording
Tax-equivalent interest income increased $2.1 million, or 9.8%, to $23.2 million for the three months ended March 31, 2026 from $21.1 million for the same period in 2025, which was largely caused by growth in average earning assets, coupled with an increase in the tax-equivalent yield on average earning assets. Average earning assets increased $72.0 million, or 4.8%, to $1.571 billion for the three months ended March 31, 2026 from $1.499 billion for the same period in 2025, resulting in a corresponding increase to tax-equivalent interest income of $1.0 million. Specifically, average loans increased $37.8 million, or 3.3%, to $1.187 billion for the three months ended March 31, 2026 from $1.149 billion for the same period in 2025, which reflected strong organic loan growth, partially offset by the loan sale noted above. Total investment securities averaged $348.1 million for the three months ended March 31, 2026, an increase of $2.1 million, or 0.6%, compared to $346.0 million for the same period in 2025. The tax-equivalent yield on earning assets increased 27 basis points to 5.99% for the three months ended March 31, 2026 from 5.72% for the same period in 2025, which resulted in a corresponding increase in tax-equivalent interest income of $1.1 million. The Corporation's tax-equivalent yield on loans increased 15 basis points to 6.78% for the three months ended March 31, 2026 compared to 6.63% for the same period in 2025, resulting in a corresponding increase in tax-equivalent interest income of $0.5 million. Meanwhile, the tax-equivalent yield on investment securities increased 82 basis points to 3.55% for the three months ended March 31, 2026 from 2.73% for the same period in 2025 and caused a corresponding increase to tax-equivalent interest income of $0.7 million.
Current wording
Tax-equivalent interest income increased $1.7 million, or 7.9%, to $23.7 million for the three months ended June 30, 2026 from $22.0 million for the same period in 2025, which was largely caused by growth in average earning assets, coupled with an increase in the tax-equivalent yield on average earning assets. Average earning assets increased $67.0 million, or 4.5%, to $1.568 billion for the three months ended June 30, 2026 from $1.501 billion for the same period in 2025, resulting in a corresponding increase to tax-equivalent interest income of $0.7 million. Specifically, average loans increased $29.0 million, or 2.5%, to $1.190 billion for the three months ended June 30, 2026 from $1.161 billion for the same period in 2025, which reflected strong organic loan growth, partially offset by the loan sale noted above. Total investment securities averaged $364.5 million for the three months ended June 30, 2026, an increase of $34.1 million, or 10.3%, compared to $330.4 million for the same period in 2025. The tax-equivalent yield on earning assets increased 19 basis points to 6.06% for the three months ended June 30, 2026 from 5.87% for the same period in 2025, which resulted in a corresponding increase in tax-equivalent interest income of $1.0 million. The Corporation's tax-equivalent yield on loans increased 11 basis points to 6.78% for the three months ended June 30, 2026 compared to 6.67% for the same period in 2025, resulting in a corresponding increase in tax-equivalent interest income of $0.3 million. Meanwhile, the tax-equivalent yield on investment securities increased 68 basis points to 3.76% for the three months ended June 30, 2026 from 3.08% for the same period in 2025 and caused a corresponding increase to tax-equivalent interest income of $0.7 million.
Previous wording
Interest expense decreased $0.5 million, or 7.4%, to $6.5 million for the three months ended March 31, 2026 from $7.0 million for the same period in 2025, which was primarily from a significant decrease in average borrowings, coupled with a lower overall cost of funds. Average borrowed funds, which are largely comprised of customer repurchase agreements and FHLB of Pittsburgh advances, averaged $54.0 million for the three months ended March 31, 2026, a decrease of $54.0 million from $108.0 million for the same period in 2025. Lower volumes of average borrowed funds resulted in a corresponding decrease in interest expense of $0.6 million. Total average interest-bearing deposits increased $97.7 million, or 9.3%, to $1.143 billion for the three months ended March 31, 2026, compared to $1.046 billion for the same period in 2025, which resulted in a corresponding increase in interest expense of $0.6 million. For the three months ended March 31, 2026, the Corporation's cost of funds decreased 26 basis points to 2.19% from 2.45% for the same period in 2025. The average rate paid on total borrowings decreased 15 basis points to 4.25% for the three months ended March 31, 2026 from 4.40% for the same period in 2025. The average rate paid on total interest-bearing deposits decreased 16 basis points to 2.09% for the three months ended March 31, 2026 from 2.25% for the same period in 2025, which resulted in a corresponding decrease in interest expense of $0.5 million.
Current wording
Interest expense decreased $0.2 million, or 3.3%, to $6.7 million for the three months ended June 30, 2026 from $6.9 million for the same period in 2025, which was primarily from a significant decrease in average borrowings, coupled with a lower overall cost of funds. Average borrowed funds, which are largely comprised of customer repurchase agreements and FHLB of Pittsburgh advances, averaged $25.6 million for the three months ended June 30, 2026, a decrease of $47.5 million from $73.1 million for the same period in 2025. Lower volumes of average borrowed funds resulted in a corresponding decrease in interest expense of $0.5 million. Total average interest-bearing deposits increased $90.8 million, or 8.5%, to $1.164 billion for the three months ended June 30, 2026, compared to $1.073 billion for the same period in 2025, which resulted in a corresponding increase in interest expense of $0.6 million. For the three months ended June 30, 2026, the Corporation's cost of funds decreased 16 basis points to 2.24% from 2.40% for the same period in 2025. The average rate paid on total borrowings increased to 9.06% for the three months ended June 30, 2026 from 4.48% for the same period in 2025. The increase in the average rate paid on total borrowings is related to the prepayment of long-term borrowings during the three months ended June 30, 2026 discussed above and associated recognition of approximately $0.3 million of remaining unamortized fair value adjustments as a yield adjustment during the period. The average rate paid on total interest-bearing deposits decreased 18 basis points to 2.08% for the three months ended June 30, 2026 from 2.26% for the same period in 2025, which resulted in a corresponding decrease in interest expense of $0.6 million.
Previous wording
The following Average Balance Sheet and Rate Analysis tables presents the average assets, actual income or expense and the average yield on assets, liabilities and stockholders' equity for the three months ended March 31, 2026 and 2025.
Current wording
The following Average Balance Sheet and Rate Analysis tables present the average assets, actual income or expense and the average yield on assets, liabilities and stockholders' equity for the three and six months ended June 30, 2026 and 2025.
Previous wording
To enhance the understanding of the effects of volumes (the average balance of earning assets and costing liabilities) and average interest rate fluctuations on the Consolidated Balance Sheets as it pertains to net interest income, the table below reflects these changes for the three months ended March 31, 2026 versus March 31, 2025:
Current wording
To enhance the understanding of the effects of volumes (the average balance of earning assets and costing liabilities) and average interest rate fluctuations on the Consolidated Balance Sheets as it pertains to net interest income, the table below reflects these changes for the three and six months ended June 30, 2026 versus June 30, 2025:
Previous wording
A summary of the provision for credit losses for the three months ended March 31, 2026 and 2025, is as follows:
Current wording
A summary of the provision for credit losses for the three and six months ended June 30, 2026 and 2025, is as follows:
Previous wording
For the three months ended March 31, 2026, there was a provision for credit losses of $69,000, a decrease of $41,000 in expense compared to a provision for credit losses of $110,000 for the three months ended March 31, 2025. The provision for the three months ended March 31, 2026 included expense related to loans receivable of $67,000 and expense related to off-balance sheet exposures of $2,000.
Current wording
For the three months ended June 30, 2026, there was a provision for credit losses of $394,000, an increase of $140,000 in expense compared to a provision for credit losses of $254,000 for the three months ended June 30, 2025. The provision for the three months ended June 30, 2026 included expense related to loans receivable of $396,000 and a credit related to off-balance sheet exposures of $2,000. For the six months ended June 30, 2026, there was a provision for credit losses of $463,000, an increase of $99,000 in expense compared to a provision for credit losses of $364,000 for the six months ended June 30, 2025. The $463,000 provision for the six months ended June 30, 2026 was exclusively related to loans receivable and included no provision related to off-balance sheet exposures.
Previous wording
The provision amounts for the three months ended March 31, 2026 and 2025 primarily reflect an increase in volume in the loan portfolio, changes in non-accrual loans which impact probability of default calculations and changes in qualitative factors related to the volume and severity of past due loans and loan grade migration.
Current wording
The provision amounts for the three and six months ended June 30, 2026 and 2025 primarily reflect an increase in volume in the loan portfolio, changes in non-accrual loans which impact probability of default calculations and changes in qualitative factors related to volume and severity of past due loans and loan grade migration.
Previous wording
Total non-interest expense decreased $894,000 from $11,091,000 for the first quarter 2025, to $10,197,000 for the first quarter 2026. Salaries and employee benefits expense of $5,333,000 for the first quarter 2026 decreased $987,000 from $6,320,000 for the first quarter 2025. The Corporation recorded one-time pretax expenses totaling $1,295,000 in conjunction with the retirement of its Executive Chairman during the first quarter 2025. This decrease was partially offset by health insurance expenses associated with the Corporation’s partially self-funded health insurance plan which were $165,000 higher in the first quarter 2026 than the first quarter 2025 along with ongoing salary and wage increases for employees. Other significant variances in total non-interest expense included an increase in professional fees of $196,000 due primarily to fees paid in conjunction with the sales and use tax review engagement noted above and a decrease in automated teller machine and interchange expenses of $102,000 due primarily to lower automated teller machine processing expenses comparing the first quarter 2026 to the first quarter 2025.
Current wording
For the six months ended June 30, 2026, total non-interest expense decreased $330,000 or 1.6% to $20,617,000, compared to $20,947,000 for the six months ended June 30, 2025. Salaries and employee benefits expense of $10,913,000 for the six months ended June 30, 2026 decreased $391,000 from $11,304,000 for the same period of 2025. The Corporation recorded one-time pretax expenses totaling $1,295,000 in conjunction with the retirement of its Executive Chairman during the three months ended March 31, 2025. This decrease was partially offset by health insurance expenses associated with the Corporation’s partially self-funded health insurance plan which were $481,000 higher for the six months ended June 30, 2026 than same period in 2025 along with ongoing salary and wage increases for employees. Professional fees increased $227,000 from $862,000 for the six months ended June 30, 2025 to $1,089,000 for the six months ended June 30, 2026 due primarily to fees paid in conjunction with the sales and use tax review engagement noted above.
Previous wording
One standard to measure non-interest expense is to express annualized non-interest expense as a percentage of average total assets. For the three months ended March 31, 2026 and 2025 this percentage was 2.50% and 2.81%, respectively.
Current wording
One standard to measure non-interest expense is to express annualized non-interest expense as a percentage of average total assets. For the three and six months ended June 30, 2026 this percentage was 2.48% and 2.46%, respectively, compared to 2.46% and 2.64%, respectively, for the three and six months ended June 30, 2025.
Previous wording
The Bank reviews cash flow projections regularly and updates them in order to maintain liquid assets at levels believed to meet the requirements of normal operations, including loan commitments and potential deposit outflows from maturing certificates of deposit and savings withdrawals. While deposits and securities sold under agreements to repurchase are its primary source of funds, when needed it is also able to generate cash through borrowings from the FHLB. At March 31, 2026, the Bank had remaining available capacity with FHLB, subject to certain collateral restrictions, of $545.0 million.
Current wording
The Bank reviews cash flow projections regularly and updates them in order to maintain liquid assets at levels believed to meet the requirements of normal operations, including loan commitments and potential deposit outflows from maturing certificates of deposit and savings withdrawals. While deposits and securities sold under agreements to repurchase are its primary source of funds, when needed it is also able to generate cash through borrowings from the FHLB. At June 30, 2026, the Bank had remaining available capacity with FHLB, subject to certain collateral restrictions, of $557.4 million.
Previous wording
The statement of cash flows presents the change in cash and cash equivalents from operating, investing and financing activities. Cash and due from banks and interest-bearing deposits in other banks, which comprise cash and cash equivalents, are the Corporation’s most liquid assets. Cash and cash equivalents totaled $60.4 million at March 31, 2026, an increase of $11.9 million from $48.5 million at December 31, 2025, as net cash inflows reported from operating and financing activities outpaced net cash outflows from investing activities for the three months ended March 31, 2026.
Current wording
The statement of cash flows presents the change in cash and cash equivalents from operating, investing and financing activities. Cash and due from banks and interest-bearing deposits in other banks, which comprise cash and cash equivalents, are the Corporation’s most liquid assets. Cash and cash equivalents totaled $20.1 million at June 30, 2026, a decrease of $28.4 million from $48.5 million at December 31, 2025, as net cash outflows from investing and financing activities outpaced new cash inflows reported from operating activities for the six months ended June 30, 2026.
Previous wording
Net cash outflows from investing activities used $42.1 million of cash and cash equivalents during the three months ended March 31, 2026. Accounting for the majority of the net cash outflows was $8.0 million related to proceeds from sales, paydowns, calls and maturities of available-for-sale debt securities which was offset by purchases of available-for-sale debt securities of $38.6 million and a net increase in loans of $11.8 million, which reflected strong loan demand. Financing activities provided $37.4 million in net cash, which resulted primarily from a $40.8 million increase in deposits, partially offset by decreases in short-term borrowings, consisting of customer repurchase agreements and short-term FHLB borrowings, of $1.8 million along with cash dividends paid of $1.6 million. Operating activities include net income, adjusted for the effects of non-cash transactions including, among others, depreciation and amortization and the provision for credit losses, and is the primary source of cash flows from operations. For the three months ended March 31, 2026, operating activities provided the Corporation with $16.6 million in net cash, which primarily reflected net income of $7.2 million and proceeds from the sale of mortgage loans of $12.3 million.
Current wording
Net cash outflows from investing activities used $35.5 million of cash and cash equivalents during the six months ended June 30, 2026. Accounting for the majority of the net cash outflows was $51.0 million related to proceeds from sales, paydowns, calls and maturities of available-for-sale debt securities which was offset by purchases of available-for-sale debt securities of $54.2 million and a net increase in loans of $34.4 million, which reflected strong loan demand. Financing activities used $15.1 million in net cash, which resulted primarily from a $41.0 million repayment of long-term borrowings, partially offset by a $20.8 million increase in deposits, and an increase in short-term borrowings, consisting of customer repurchase agreements and short-term FHLB borrowings, of $11.8 million along with cash dividends paid of $6.8 million. Operating activities include net income, adjusted for the effects of non-cash transactions including, among others, depreciation and amortization and the provision for credit losses, and is the primary source of cash flows from operations. For the six months ended June 30, 2026, operating activities provided the Corporation with $22.2 million in net cash, which primarily reflected net income of $14.3 million and proceeds from the sale of mortgage loans of $19.0 million.
Previous wording
Model results from the simulation at March 31, 2026 indicated that the Bank was projected to see an increase in net interest income over a one-year horizon in any of the rate shock scenarios, with the exception of the +200 and +300 scenarios, which showed 2.66% and 6.09% decreases, respectively. The percent change in EVE is expected to decrease in all rates up scenarios and increase in all rates down scenarios. All modeled exposures to net interest income and EVE for the next twelve-month horizon are within internal ALCO policy guidelines.
Current wording
Model results from the simulation at June 30, 2026 indicated that the Bank was projected to see an increase in net interest income over a one-year horizon in any of the rate shock scenarios, with the exception of the +200 and +300 scenarios, which showed 1.44% and 5.49% decreases, respectively. The percent change in EVE is expected to decrease in all rates up scenarios and increase in all rates down scenarios. All modeled exposures to net interest income and EVE for the next twelve-month horizon are within internal ALCO policy guidelines.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
AVERAGE BALANCE SHEET AND RATE ANALYSIS