FIRST US BANCSHARES, INC.
For the period ended Dec 31, 2025. Filed Mar 12, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Mar 12, 2026
FUSB$16.450.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-03-14.
0000950170-25-039251
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-03-12.
0001193125-26-103635
Item 7. 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 158 previous paragraphs and 166 current paragraphs.
97 unchanged; 46 reworded; 22 added; 14 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 23 previous and 23 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 (22)
Current report
During the year ended December 31, 2025, the banking industry continued to be impacted by economic uncertainty driven by a rebound in U.S. economic growth following a first-quarter contraction, inflation remaining above the Federal Reserve’s 2% objective, rising unemployment levels, and heightened uncertainty related to domestic and global policy developments. U.S. gross domestic product (“GDP”) contracted during the first quarter of 2025 but rebounded during the remainder of the year, as real GDP increased at an annualized rate of 3.8% in the second quarter, 4.4% in the third quarter, and 1.4% in the fourth quarter. Inflation, as measured by the consumer price index, was 2.7% on a year-over-year basis in December 2025, and remained above the Federal Reserve’s long-term objective. The U.S. unemployment rate increased modestly during 2025, reaching 4.4% in December.
Current report
Throughout much of 2025, the Federal Open Market Committee maintained the federal funds rate at elevated levels; however, in September, October, and December 2025, the federal funds rate was reduced by an aggregate of 75 basis points. Treasury yields were volatile during the year and declined from mid-year levels into year-end, reflecting market expectations for additional monetary policy easing. The combination of continued GDP growth, inflation remaining above the Federal Reserve’s objective, and rising unemployment levels created a challenging environment in which to predict future interest rate movements.
Current report
As 2025 progressed, uncertainty increased related to the ultimate impact of U.S. trade and economic policies, including tariffs implemented by the Trump administration, the passage of the One Big Beautiful Bill Act, and the potential for additional tariffs. Geopolitical uncertainty, including ongoing unrest in the Middle East and Ukraine, also persisted during the year. In addition, a partial shutdown of nonessential U.S. government functions occurred during the fourth quarter of 2025, contributing to the reduction in GDP in the fourth quarter and to broader economic uncertainty.
Current report
Competitive pressures related to both loan and deposit pricing remained elevated during 2025. In the Company’s local markets, competition for deposits continued to constrain the Company’s ability to reduce funding costs despite declining market interest rates. Commercial lending activity remained cautious as business customers assessed the potential impact of trade policies and interest rate uncertainty on their operations. While consumer spending slowed on a macroeconomic basis, the Company experienced growth in consumer indirect lending during the year, primarily within higher credit quality segments. The competitive environment, combined with ongoing economic and policy uncertainty, presents a challenging operating environment for maintaining and improving the Company’s net interest margin. Management continues to closely monitor these conditions and believes the Company remains well positioned to respond to a range of economic outcomes; however, adverse changes in economic conditions, credit quality, competitive dynamics, or interest rate movements could negatively impact the Company’s financial condition and results of operations.
Current report
Net interest income increased by $1.3 million, or 3.6%, comparing the year ended December 31, 2025 to the year ended December 31, 2024. The increase was primarily attributable to growth in average interest-earning assets, both loans and investment securities, which more than offset the impact of lower average yields on interest-earning assets during the year. Average loans during the year ended December 31, 2025 increased to $856.0 million, compared to $818.5 million during the year ended December 31, 2024.
Current report
Net interest margin totaled 3.54% in 2025, compared to 3.59% in 2024. The decrease in net interest margin, comparing 2025 to 2024, was driven primarily by rate compression resulting from declining short-term market interest rates and the timing of asset and liability repricing, as interest-earning assets repriced downward more quickly than interest-bearing liabilities. The rate-based pressure on net interest margin was partially offset by increased volume in interest-earning assets, as well as by improved yield on the investment portfolio.
Current report
Non-interest income remained consistent at $3.6 million for both the years ended December 31, 2025 and 2024.
Current report
Non-interest expense increased to $29.1 million for the year ended December 31, 2025, compared to $28.4 million for the year ended December 31, 2024, an increase of $0.7 million, or 2.5%.
Current report
Loan Growth
Current report
Short-term Borrowings
Current report
As of December 31, 2025, the Company did not have any short-term borrowings outstanding, compared to $10.0 million in outstanding short-term borrowings as of December 31, 2024. As of December 31, 2024, all outstanding short-term borrowings had remaining maturities of less than 30 days and were borrowed exclusively from the Federal Home Loan Bank of Atlanta (FHLB).
Current report
Cash and Investment Securities
Current report
Interest income increased by $1.2 million for the year ended 2025 compared to 2024. The increase was primarily driven by a $2.7 million increase attributable to growth in average interest-earning assets, reflecting higher average loan balances during the period. This volume-driven increase was partially offset by a $1.5 million decrease attributable to lower average yields on interest-earning assets, as rate compression and changes in asset mix reduced overall earning-asset yields.
Current report
Interest expense decreased by $0.2 million for the year ended December 31, 2025 compared to 2024. The decrease reflected a $1.3 million reduction attributable to lower average rates paid on interest-bearing liabilities, primarily interest-bearing demand deposits and time deposits. This rate-related decrease was partially offset by a $1.2 million increase attributable to growth in average interest-bearing liabilities, driven primarily by higher balances of interest-bearing demand deposits and short-term borrowings. Significant competitive pressure remains to acquire and maintain deposit balances in the current environment. The increase in average short-term borrowings was attributable to the Company’s efforts to maintain on-balance sheet liquidity while repricing deposits at lower rates.
Current report
The provision for credit losses was $4.0 million for the year ended December 31, 2025, compared to $0.6 million for the year ended December 31, 2024. The increase in the provision for credit losses in 2025 compared to 2024 resulted primarily from credit-related activity associated with specific commercial loan relationships, including charge-off activity occurring during the second and third quarters of 2025. In addition, significant growth in the indirect consumer loan portfolio, together with elevated charge-offs within that portfolio, contributed to higher provision expense during the year. During the fourth quarter of 2025, credit metrics related to the loan portfolio generally improved; however, uncertainty continues to exist pertaining to the ultimate impact on the Company’s loan portfolio of economic matters, including prospective inflation, unemployment levels, tariffs, and consumer affordability. Net charge-offs on loans totaled $3.5 million, or 0.41% of average loans, for 2025 and $1.1 million, or 0.14% of average loans, for 2024. Of the net charge-offs recorded during 2025, $2.2 million was associated with one individually evaluated commercial loan and $1.9 million was associated with the consumer indirect loan portfolio. The individually evaluated commercial loan had been partially reserved during 2024. These amounts were partially offset by $0.6 million in net recoveries associated with other loan categories during 2025. As of December 31, 2025, the Company's allowance for credit losses was 1.25% of total loans, compared to 1.24% as of December 31, 2024.
Current report
Non-interest expense increased to $29.1 million for the year ended December 31, 2025, compared to $28.4 million for the year ended December 31, 2024, an increase of $0.7 million, or 2.5%. The increase was driven primarily by higher fees for professional and outside services, increased collection expenses, and the impact of fraud expense recoveries that occurred in 2024, but were not repeated in 2025. These increases were partially offset by decreases in salaries and employee benefits and insurance expense and assessments comparing 2025 to 2024.
Current report
In the ordinary course of business, the Bank makes loans to certain officers and directors of the Company, including companies with which they are associated. These loans are made on the same terms as those prevailing for comparable transactions with unrelated parties. Management believes that such loans do not represent more than a normal risk of collectability, nor do they present other unfavorable features. The aggregate balances of such related party loans and commitments as of December 31, 2025 and 2024 were $22.9 million and $11.4 million, respectively. During the year ended December 31, 2025, there were new loans of $11.5 million to these parties, and no repayments made by active related parties. During the year ended December 31, 2024, there were new loans of $1.4 million to these parties, and repayments made of $1.4 million by active related parties.
Current report
The Company had no outstanding short-term borrowings as of December 31, 2025. As of December 31, 2024, the Company had $10.0 million in outstanding short-term borrowings under FHLB advances. The Company's use of FHLB advances varies depending on fluctuations in deposits and other funding sources, as well as their use in interest rate hedging strategies. In addition, the Company had $48.0 million in unused established federal funds lines with other financial institutions as of both December 31, 2025 and 2024.
Current report
Two interest rate cap contracts designated as cash flow hedges that were intended to mitigate the Company’s exposure to increases in short-term interest rates on an aggregate notional amount of $80.0 million in short-term fixed rate liabilities.
Current report
One interest rate floor contract not designated as a hedging instrument that was intended to mitigate the Company’s risk of loss associated with downward shifts in the SOFR on a notional amount of $25.0 million.
Current report
One interest rate floor contract designated as a cash flow hedge that was intended to mitigate the Company’s risk of loss associated with downward shifts in the SOFR on a $20.0 million notional amount of variable interest rate loans.
Current report
Two customer-related interest rate swap arrangements with borrowers and a third-party counterparty. Each arrangement consists of a receive-fixed/pay-floating swap with the borrower and an offsetting swap with a third-party counterparty. These derivatives are not designated as hedging instruments.
Removed paragraphs (14)
Previous report
During the year ended December 31, 2024, the banking industry continued to be impacted by economic volatility and the higher interest rate environment that has persisted since 2022. The U.S. inflation rate, as measured by the consumer price index, generally slowed during the first three quarters of the year, but increased during the fourth quarter, ending at 2.9% in December. While the inflation rate remained elevated above the Federal Reserve Bank’s (“FRB”) longer run target of 2%, the earlier trend downward led the Open Market Committee of the FRB to reduce the federal funds rate by 50 basis points in September, followed by two additional 25-basis point decreases (one in November and one in December), bringing the target federal funds rate to a range of 4.25% to 4.50% as of December 31, 2024. This signaled a shift in focus by the FRB to managing employment levels more closely, while continuing to monitor inflation levels. The U.S. unemployment rate increased slightly during certain months of 2024, but trended downward to 4.1% in December. The U.S. economy, as measured by gross domestic product (“GDP”), expanded at an annualized pace of 2.8% in 2024, while fourth quarter 2024 GDP trended downward to 2.5% year-over-year.
Previous report
As 2024 closed, U.S. treasury rates flattened with longer-term rates increasing, while shorter-term rates decreased. As of December 31, 2024, the treasury curve (as measured from the two-year to the 10-year treasury instrument) was no longer inverted. Competitive pressures related to both loan and deposit pricing remained elevated. In addition, geopolitical uncertainty, particularly in the Mid-east and Ukraine, continued, and political uncertainty with respect to the impact on markets and interest rates of the Trump presidential administration persisted. Expectations are for the economy to hold up well for the first half of 2025, with more risks of a potential slowdown in the back half of the year. Management continues to carefully navigate the Company’s course through these challenges, and believes the Company is well positioned to respond effectively in multiple operating environments. However, additional inflationary pressure, significant changes in interest rates, and a fiercely competitive environment could put downward pressure on the Company’s positioning and results of operations.
Previous report
Net interest income decreased by $1.2 million, or 3.2%, comparing the year ended December 31, 2024 to the year ended December 31, 2023. The decrease was primarily attributable to increased interest expense during 2024, as average rates on interest bearing liabilities increased at a faster pace than average yields on interest earning assets. Net interest margin totaled 3.59% in 2024, compared to 3.87% in 2023. The decrease in net interest margin, comparing 2024 to 2023, was driven by an increase in total funding costs of 63 basis points, partially offset by an increase in yield on interest earning assets of 31 basis points. The rate-based decrease in net interest income was partially offset by increased volume in interest earning assets. Average loans during the year ended December 31, 2024 increased to $818.5 million, compared to $795.4 million during the year ended December 31, 2023.
Previous report
The provision for credit losses was $0.6 million for the year ended December 31, 2024, compared to $0.3 million during the year ended December 31, 2023. The increase resulted primarily from loan growth during the year, as well as an increase in the allowance for credit losses ("ACL") on individually evaluated loans. The Company’s net charge-offs as a percentage of average loans totaled 0.14% during both the years ended December 31, 2024 and 2023. As of December 31, 2024, the Company’s allowance for credit losses on loans as a percentage of total loans was 1.24%, compared to 1.28% as of December 31, 2023.
Previous report
Non-interest income totaled $3.6 million and $3.4 million for the years ended December 31, 2024 and 2023, respectively. The increase in non-interest income resulted primarily from increases in lease income, bank owned life insurance, and other miscellaneous revenue sources comparing 2024 to 2023.
Previous report
Non-interest expense decreased to $28.4 million for the year ended December 31, 2024, compared to $29.1 million for the year ended December 31, 2023. The expense reduction resulted primarily from decreases in salaries and benefits and other expense categories. Salaries and benefits expense decreased during 2024 primarily due to lower staff levels resulting from strategic initiatives implemented by the Company in prior years. In addition, other expenses were lower during 2024 compared to 2023, primarily due to the recovery of check fraud losses and reduced collection expenses. The reductions in non-interest expense during the year ended December 31, 2024 were partially offset by increased occupancy and equipment expenses, and other real estate/foreclosure expenses.
Previous report
Loans
Previous report
Deployment of Funds
Previous report
Interest income increased by $5.5 million, comparing 2024 to 2023. Of the increase, $3.5 million was attributable to higher average yields on interest-earning assets, while $1.9 million was attributable to growth in average loan volume comparing the two periods. The increase in average yield was attributable to elevated market interest rates that began in 2022 and remained throughout most of 2024 before the FRB began reducing the federal funds rate in September 2024. The increase in interest income associated with loan volume increases was attributable to higher average loan and investment balances in 2024 compared to 2023.
Previous report
The increase in interest income was offset by an increase in interest expense of $6.7 million, comparing 2024 to 2023. Of the increase, $5.6 million was attributable to the rise in market interest rates, while $1.1 million was attributable to growth in interest-bearing liabilities, primarily interest-bearing demand deposits and time deposits. The shift to interest-bearing deposits is consistent with deposit holders seeking to maximize interest earnings on their accounts amid the elevated interest rate environment.
Previous report
The Company’s non-interest expense decreased by $0.8 million comparing 2024 to 2023. The expense reduction comparing 2024 to 2023 resulted primarily from decreases in salaries and benefits, collections, and other expense categories. Salaries and benefits expense decreased during 2024 due, in part, to lower staff levels resulting from strategic initiatives implemented by the Company in prior years. In addition, other expenses were lower during 2024 compared to 2023, primarily due to the recovery of check fraud losses. The reductions in non-interest expense during the year ended December 31, 2024 were partially offset by increased occupancy and equipment expenses, as well as other real estate/foreclosure expense.
Previous report
The increase in nonperforming assets during 2024 resulted primarily from one loan that was foreclosed and moved into OREO and another loan that moved into non-accrual status during the year.
Previous report
The Company had up to $319.9 million and $279.4 million in remaining unused credit from the FHLB (subject to available collateral) as of December 31, 2024 and 2023, respectively. In addition, the Company had $48.0 million in unused established federal funds lines as of both December 31, 2024 and 2023.
Previous report
In 2022 and 2023, the Company terminated certain interest rate swap contracts that had previously been in place, recording deferred gains totaling $0.3 million and $2.1 million in 2022 and 2023, respectively. The deferred gains are being accreted to net interest income over the remaining life of the original terms of each swap. Remaining deferred gains associated with terminated swaps totaled $0.3 million and $1.2 million as of December 31, 2024 and 2023, respectively
Reworded paragraphs (46)
Previous wording
First US Bancshares, Inc., a Delaware corporation (“Bancshares” and, together with its subsidiary, the “Company”), is a bank holding company formed in 1983 registered under the Bank Holding Company Act of 1956, as amended (the “BHCA”). Bancshares operates one wholly-owned banking subsidiary, First US Bank, an Alabama banking corporation (the “Bank”). Bancshares and the Bank are headquartered in Birmingham, Alabama. Previously, the Bank operated two additional wholly-owned subsidiaries, Acceptance Loan Company ("ALC") and FUSB Reinsurance, Inc., both of which were legally dissolved in 2023, and all remaining assets and liabilities of these entities were transferred to the Bank prior to December 31, 2023.
Current wording
First US Bancshares, Inc., a Delaware corporation (“Bancshares” and, together with its subsidiary, the “Company”), is a bank holding company formed in 1983 registered under the Bank Holding Company Act of 1956, as amended (the “BHCA”). Bancshares operates one wholly-owned banking subsidiary, First US Bank, an Alabama banking corporation (the “Bank”). Bancshares and the Bank are headquartered in Birmingham, Alabama.
Previous wording
Other intangible assets consist of core deposit intangible assets arising from acquisitions. Core deposit intangible assets have definite useful lives and are amortized on an accelerated basis over their estimated useful lives. The Company’s core deposit intangibles have estimated useful lives of seven years. Intangible assets are evaluated for impairment whenever events or circumstances exist that indicate that the carrying amount should be reevaluated. As of December 31, 2024, there was no indication of impairment associated with the Company's other intangible assets.
Current wording
Other intangible assets consist of core deposit intangible assets arising from acquisitions. Core deposit intangible assets have definite useful lives and are amortized on an accelerated basis over their estimated useful lives. The Company’s core deposit intangibles have estimated useful lives of seven years. Intangible assets are evaluated for impairment whenever events or circumstances exist that indicate that the carrying amount should be reevaluated. During 2025, the balance of the Company's other intangible assets was amortized to zero.
Previous wording
For the year ended December 31, 2024, the Company earned net income of $8.2 million, or $1.33 per diluted common share, compared to net income of $8.5 million, or $1.33 per diluted common share, for the year ended December 31, 2023. Summarized condensed consolidated statements of operations are included below for the years ended December 31, 2024 and 2023, respectively.
Current wording
For the year ended December 31, 2025, the Company earned net income of $6.0 million, or $1.00 per diluted common share, compared to net income of $8.2 million, or $1.33 per diluted common share, for the year ended December 31, 2024. Summarized condensed consolidated statements of operations are included below for the years ended December 31, 2025 and 2024, respectively.
Previous wording
The provision for credit losses was $0.6 million for the year ended December 31, 2024, compared to $0.3 million for the year ended December 31, 2023. The increase in the provision for credit losses in 2024 compared to 2023 resulted primarily from an increase in the allowance for credit losses ("ACL") on individually evaluated loans and adjustments in economic forecasts that impact the calculation of the ACL on loans and leases. Net charge-offs on loans totaled $1.1 million, or 0.14% of average loans, for both 2024 and 2023. As of December 31, 2024, the Company's allowance for credit losses was 1.24% of total loans, compared to 1.28% as of December 31, 2023.
Current wording
The provision for credit losses was $4.0 million for the year ended December 31, 2025, compared to $0.6 million during the year ended December 31, 2024. The increase in the provision for credit losses in 2025 compared to 2024 resulted primarily from credit-related activity associated with specific commercial loan relationships, including charge-off activity occurring during the second and third quarters of 2025. In addition, significant growth in the indirect consumer loan portfolio, together with elevated charge-offs within that portfolio, contributed to higher provision expense during the year. Net charge-offs on loans totaled $3.5 million, or 0.41% of average loans, for 2025, and $1.1 million, or 0.14%, for 2024. As of December 31, 2025, the Company's allowance for credit losses was 1.25% of total loans, compared to 1.24% as of December 31, 2024.
Previous wording
As of December 31, 2024, the Company's assets totaled $1,101.1 million, compared to $1,072.9 million as of December 31, 2023, an increase of 2.6%.
Current wording
As of December 31, 2025, the Company's assets totaled $1,154.8 million, compared to $1,101.1 million as of December 31, 2024, an increase of 4.9%.
Previous wording
Total loans increased by $1.2 million, or 0.2%, as of December 31, 2024, compared to December 31, 2023. Loan volume increases during 2024 were driven primarily by growth in multi-family and non-farm, non-residential portfolios, partially offset by decreases in construction, commercial and industrial, 1-4 family residential and consumer categories.
Current wording
Total loans increased by $30.0 million, or 3.6%, as of December 31, 2025, compared to December 31, 2024. Loan volume increases during 2025 were driven by substantial growth in the consumer indirect category, and to a lesser extent, the multi-family residential and C&I categories. This growth was partially offset by decreases in non-residential commercial real estate, construction and 1-4 family residential categories.
Previous wording
Nonperforming assets, including loans in non-accrual status and OREO, totaled $5.5 million as of December 31, 2024, compared to $3.0 million as of December 31, 2023. The increase in nonperforming assets during 2024 resulted primarily from one loan that was foreclosed and moved into OREO and another loan that moved into non-accrual status during 2024. As a percentage of total assets, nonperforming assets totaled 0.50% as of December 31, 2024, compared to 0.28% as of December 31, 2023.
Current wording
Nonperforming assets, including loans in non-accrual status and OREO, totaled $1.6 million as of December 31, 2025, compared to $5.5 million as of December 31, 2024. As a percentage of total assets, nonperforming assets decreased to 0.14% as of December 31, 2025, compared to 0.50% as of December 31, 2024. For the year ended December 31, 2025, annualized net charge-offs as a percentage of average loans totaled 0.41%, compared to 0.14% for the year ended December 31 2024.
Previous wording
Deposits totaled $972.6 million as of December 31, 2024, compared to $950.2 million as of December 31, 2023. The growth in 2024 included an increase of $20.0 million in interest-bearing deposits and an increase in certificates of deposit of $16.9 million, partially offset by a decrease of $8.9 million in money market and savings deposits. The shift to interest-bearing deposits is consistent with deposit holders seeking to maximize interest earnings on their accounts amid the elevated interest rate environment. The deposit growth in 2024 was also partially offset by a decrease of $10.3 million in wholesale brokered deposits. As of December 31, 2024, core deposits, which exclude time deposits of $250 thousand or more and all brokered deposits, totaled $837.7 million, or 86.1% of total deposits, compared to $819.5 million, or 86.2% of total deposits, as of December 31, 2023.
Current wording
Deposits totaled $1,028.0 million as of December 31, 2025, compared to $972.6 million as of December 31, 2024. The growth in 2025 included an increase of $54.3 million in money market and savings deposits and an increase in brokered deposits of $65.6 million, partially offset by decreases of $21.9 million in interest-bearing demand deposits, $40.5 million in certificates of deposit and $2.1 million in non-interest bearing deposits. The shift to money market and savings deposits is consistent with deposit holders seeking to maximize interest earnings on their accounts, while also maintaining liquidity. The majority of the brokered deposits acquired by the Company during the year were obtained in conjunction with interest rate derivative instruments that are intended to support the Company’s overall interest rate hedging strategy. As of December 31, 2025, core deposits, which exclude time deposits of $250 thousand or more and all brokered deposits, totaled $838.3 million, or 81.6% of total deposits, compared to $837.7 million, or 86.1% of total deposits, as of December 31, 2024.
Previous wording
As of December 31, 2024, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $52.9 million, or 4.8% of total assets, compared to $59.8 million, or 5.6% of total assets, as of December 31, 2023. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $168.6 million as of December 31, 2024, compared to $136.7 million as of December 31, 2023. During the year ended December 31, 2024, the Company invested $58.0 million in taxable U.S. agency-sponsored bonds, resulting in improved yields in the investment portfolio. As of December 31, 2024, the expected average life of securities in the investment portfolio was 3.6 years, compared to 3.9 years as of December 31, 2023.
Current wording
As of December 31, 2025, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $78.4 million, or 6.8% of total assets, compared to $52.9 million, or 4.8% of total assets, as of December 31, 2024. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $168.5 million as of December 31, 2025, compared to $168.6 million as of December 31, 2024. As of December 31, 2025, the expected average life of securities in the investment portfolio was 3.7 years compared to 3.6 years as of December 31, 2024. During the years ended December 31, 2025 and 2024, the Company purchased $43.6 million and $58.0 million, respectively, of investment securities at market rates in existence at the time of purchase. These purchases, combined with the maturity and paydown of investment securities at lower rates, have led to continued improvement in yield on the portfolio.
Previous wording
As of December 31, 2024, shareholders’ equity totaled $98.6 million, or 8.96% of total assets, compared to $90.6 million, or 8.44% of total assets, as of December 31, 2023. The increase in shareholders’ equity during the year ended December 31, 2024 resulted primarily from earnings, net of dividends paid, which was partially offset by repurchases of shares of the Company's common stock. In addition, shareholders' equity was positively impacted during 2024 by reductions in the Company's accumulated other comprehensive loss resulting from changes in market interest rates, as well as the maturity of lower yielding investment securities.
Current wording
As of December 31, 2025, shareholders’ equity totaled $105.6 million, or 9.15% of total assets, compared to $98.6 million, or 8.96% of total assets, as of December 31, 2024. The increase in shareholders’ equity during the year ended December 31, 2025 resulted primarily from earnings, net of dividends paid and repurchases of shares of the Company's common stock. In addition, shareholders' equity was positively impacted during the period by reductions in the Company's accumulated other comprehensive loss resulting from changes in market interest rates, the maturity of lower yielding investment securities, and purchases of investment securities at higher yields.
Previous wording
The Company declared cash dividends totaling $0.22 per share on its common stock during 2024, compared to cash dividends totaling $0.20 per share on its common stock during 2023.
Current wording
The Company declared cash dividends totaling $0.28 per share on its common stock during 2025, compared to cash dividends totaling $0.22 per share on its common stock during 2024.
Previous wording
During 2024, the Company completed share repurchases totaling 146,500 shares of its common stock at a weighted average price of $11.22 per share. The repurchases were completed under the Company’s previously announced share repurchase program, which was expanded in 2024 to authorize the purchase of 600,000 additional shares. As of December 31, 2024, a total of 912,813 shares remained available for repurchase under the program.
Current wording
During 2025, the Company completed share repurchases totaling 128,000 shares of its common stock at a weighted average price of $13.76 per share. The repurchases were completed under the Company’s previously announced share repurchase program, which was expanded in 2025 to authorize the purchase of 1,000,000 additional shares. As of December 31, 2025, a total of 1,784,813 shares remained available for repurchase under the program.
Previous wording
During 2024, the Bank continued to maintain capital ratios at higher levels than required to be considered a “well-capitalized” institution under applicable banking regulations. As of December 31, 2024, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 11.31%. Its total capital ratio was 12.47%, and its Tier 1 leverage ratio was 9.50%.
Current wording
During 2025, the Bank continued to maintain capital ratios at higher levels than required to be considered a “well-capitalized” institution under applicable banking regulations. As of December 31, 2025, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 10.88%. Its total capital ratio was 12.05%, and its Tier 1 leverage ratio was 9.03%.
Previous wording
(1) For the purpose of these computations, non-accruing loans are included in the average loan amounts outstanding. Non-accruing loans averaged $3.1 million and $1.7 million for the years ended December 31, 2024 and 2023, respectively.
Current wording
(1) For the purpose of these computations, non-accruing loans are included in the average loan amounts outstanding. Non-accruing loans averaged $2.5 million and $3.1 million for the years ended December 31, 2025 and 2024, respectively.
Previous wording
(2) Loan fees are included in the interest amounts presented. Loan fees totaled $0.7 million and $0.6 million for the years ended December 31, 2024 and December 31, 2023, respectively.
Current wording
(2) Loan fees are included in the interest amounts presented. Loan fees totaled $0.7 million for both the years ended December 31, 2025 and December 31, 2024.
Previous wording
The elevated market interest rate environment has had, and continues to have, a significant impact on the Company and the banking industry in general. The decrease in net interest income and margin during 2024 compared to 2023 was primarily driven by the accelerated repricing of interest-bearing liabilities through the first three quarters of 2024. From September 2024 through December 2024, the federal funds rate was reduced by 100 basis points and the cost of interest-bearing liabilities decreased; however, similar reductions occurred on certain market interest rates that are used to price the Company’s variable rate loans. Amid these interest rate reductions, the Company’s interest earning assets repriced downward more quickly than its interest-bearing liabilities during the fourth quarter of 2024. Competition for both loans and deposits remains intense and is expected to continue to put pressure on net interest margin. Should market interest rates continue to increase or decrease at significant levels, the Company’s net interest income could be negatively impacted.
Current wording
The interest rate environment has been characterized by declining short-term market interest rates and increased volatility, which has had, and continues to have, a significant impact on the Company and the banking industry in general. Changes in net interest income and net interest margin during 2025 compared to 2024 were primarily driven by movements in short-term market interest rates and the timing of asset and liability repricing. Following reductions in the federal funds rate in both late 2024 and late 2025, the Company experienced downward repricing of variable-rate interest-earning assets, while reductions in the cost of interest-bearing liabilities occurred more gradually. As a result, interest-earning assets generally repriced downward more quickly than interest-bearing liabilities during portions of both 2025 and 2024. Competition for both loans and deposits remains intense and continues to place pressure on net interest margin. Future changes in market interest rates, whether increases or decreases, could adversely affect the Company’s net interest income and net interest margin.
Previous wording
The Company’s non-interest income increased by $0.2 million comparing 2024 to 2023, due primarily to increases in lease income, bank-owned life insurance, and other miscellaneous revenue sources. The majority of the Company’s sources of non-interest income are relatively stable and are not expected to change significantly in the near term.
Current wording
The Company’s non-interest income remained relatively consistent at $3.6 million comparing 2025 to 2024. Decreases in service charges and ATM fee income were partially offset by increases in lease income, bank-owned life insurance, and other miscellaneous revenue sources. Management continues to evaluate opportunities to add non-interest revenue streams; however, significant variation in non-interest income is not expected in the near term.
Previous wording
The provision for income taxes was $2.6 million and $2.8 million for the years ended December 31, 2024 and 2023, respectively. The Company’s effective tax rate was 24.0% and 24.7%, respectively, for the same periods.
Current wording
The provision for income taxes was $1.9 million and $2.6 million for the years ended December 31, 2025 and 2024, respectively. The Company’s effective tax rate was 24.5% and 24.0%, respectively, for the same periods.
Previous wording
The investment securities portfolio is used by management to provide liquidity, to generate interest income and for use as collateral for public deposits and wholesale funding. Risk and return can be adjusted by altering the duration, composition and/or balance of the portfolio. The expected average life of securities in the investment portfolio was 3.6 years and 3.9 years as of December 31, 2024 and 2023, respectively.
Current wording
The investment securities portfolio is used by management to provide liquidity, to generate interest income and for use as collateral for public deposits and wholesale funding. Risk and return can be adjusted by altering the duration, composition and/or balance of the portfolio. The expected average life of securities in the investment portfolio was 3.7 years and 3.6 years as of December 31, 2025 and 2024, respectively.
Previous wording
Available-for-sale securities are recorded at estimated fair value, with unrealized gains or losses recognized, net of taxes, in accumulated other comprehensive loss, a separate component of shareholders’ equity. As of December 31, 2024, available-for-sale securities totaled $167.9 million, or 99.6% of the total investment portfolio, compared to $135.6 million, or 99.2% of the total investment portfolio, as of December 31, 2023. Available-for-sale securities consisted of residential and commercial mortgage-backed securities, U.S. Treasury securities, corporate notes, obligations of U.S. government-sponsored agencies, and obligations of state and political subdivisions.
Current wording
Available-for-sale securities are recorded at estimated fair value, with unrealized gains or losses recognized, net of taxes, in accumulated other comprehensive loss, a separate component of shareholders’ equity. As of December 31, 2025, available-for-sale securities totaled $168.1 million, or 99.7% of the total investment portfolio, compared to $167.9 million, or 99.6% of the total investment portfolio, as of December 31, 2024. Available-for-sale securities consisted of residential and commercial mortgage-backed securities, U.S. Treasury securities, corporate notes, obligations of U.S. government-sponsored agencies, and obligations of state and political subdivisions.
Previous wording
Held-to-maturity securities are recorded at amortized cost and represent securities that the Company both intends and has the ability to hold to maturity. As of December 31, 2024, held-to-maturity securities totaled $0.7 million, or 0.4% of the total investment portfolio, compared to $1.1 million, or 0.8% of the total investment portfolio, as of December 31, 2023. Held-to-maturity securities consisted of commercial mortgage-backed securities, obligations of U.S. government-sponsored agencies and obligations of states and political subdivisions.
Current wording
Held-to-maturity securities are recorded at amortized cost and represent securities that the Company both intends and has the ability to hold to maturity. As of December 31, 2025, held-to-maturity securities totaled $0.5 million, or 0.3% of the total investment portfolio, compared to $0.7 million, or 0.4% of the total investment portfolio, as of December 31, 2024. Held-to-maturity securities consisted of commercial mortgage-backed securities, obligations of U.S. government-sponsored agencies and obligations of states and political subdivisions.
Previous wording
Net unrealized losses in the available-for-sale portfolio totaled $6.7 million as of December 31, 2024, compared to $9.3 million as of December 31, 2023. Net unrealized losses within the available-for-sale portfolio were recognized, net of tax, in accumulated other comprehensive loss.
Current wording
Net unrealized losses in the available-for-sale portfolio totaled $1.0 million as of December 31, 2025, compared to $6.7 million as of December 31, 2024. Net unrealized losses within the available-for-sale portfolio were recognized, net of tax, in accumulated other comprehensive loss.
Previous wording
During the year ended December 31, 2024, the Company purchased $58.0 million in taxable U.S. agency-sponsored securities that are included in the available-for-sale portfolio. The purchased securities offset $28.5 million in proceeds received by the Company associated with maturities and prepayments in the portfolio. In the higher interest rate environment, the securities purchased have served to increase the Company’s yield on taxable investment securities. For the year ended December 31, 2024, the yield on taxable investment securities totaled 3.04%, compared to 2.24% for the year ended December 31, 2023.
Current wording
During the year ended December 31, 2025, the Company purchased $43.6 million in taxable U.S. agency-sponsored securities that are included in the available-for-sale portfolio. The purchased securities partially offset $50.0 million in proceeds received by the Company associated with maturities, calls and prepayments in the portfolio. These purchases, combined with the maturity, calls and paydown of investment securities at lower rates, have led to continued improvement in yield on the portfolio. For the year ended December 31, 2025, the yield on investment securities totaled 3.59%, compared to 3.02% for the year ended December 31, 2024.
Previous wording
The Company's total loan portfolio increased by $1.2 million, or 0.2%, as of December 31, 2024, compared to December 31, 2023. The table below summarizes loan balances by portfolio category at the end of each of the most recent five years as of December 31, 2024:
Current wording
The Company's total loan portfolio increased by $30.0 million, or 3.6%, as of December 31, 2025, compared to December 31, 2024. The table below summarizes loan balances by portfolio category at the end of each of the most recent five years as of December 31, 2025:
Previous wording
As of December 31, 2024 and December 31, 2023, the composition of the non-farm, non-residential loan portfolio was as follows:
Current wording
As of December 31, 2025 and December 31, 2024, the composition of the non-residential commercial real estate loan portfolio was as follows:
Previous wording
The table below summarizes changes in the allowance for credit losses on loans and leases for each of the most recent five years as of December 31, 2024. For years ended December 31, 2022 and prior, information presented is as determined in accordance with ASC 310, Receivables, prior to the adoption of ASC 326, Financial Instruments - Credit losses:
Current wording
The table below summarizes changes in the allowance for credit losses ("ACL") on loans and leases for each of the most recent five years as of December 31, 2025. For years ended December 31, 2022 and prior, information presented is as determined in accordance with Accounting Standards Codification ("ASC") 310, Receivables, prior to the adoption of ASC 326, Financial Instruments - Credit losses:
Previous wording
Unfunded lending commitments are off-balance sheet arrangements that represent unconditional commitments of the Company to lend to a borrower that are unfunded as of the balance sheet date. These may include unfunded loan commitments, standby letters of credit, and financial guarantees. ASC 326 guidance requires that an estimate of expected credit loss be measured on commitments in which an entity is exposed to credit risk via a present contractual obligation to extend credit unless the obligation is unconditionally cancellable by the issuer. For the Company, unconditional lending commitments generally include unfunded term loan agreements, home equity lines of credit, lines of credit, and demand deposit account overdraft protection. As of December 31, 2024 and 2023, the Company’s allowance for credit losses on unfunded commitments, which is recorded in other liabilities in the Company’s consolidated balance sheets, totaled $0.4 million and $0.6 million, respectively. No allowance for credit losses on unfunded commitments was recorded by the Company in the years prior to 2023.
Current wording
Unfunded lending commitments are off-balance sheet arrangements that represent unconditional commitments of the Company to lend to a borrower that are unfunded as of the balance sheet date. These may include unfunded loan commitments, standby letters of credit, and financial guarantees. ASC 326 guidance requires that an estimate of expected credit loss be measured on commitments in which an entity is exposed to credit risk via a present contractual obligation to extend credit unless the obligation is unconditionally cancellable by the issuer. For the Company, unconditional lending commitments generally include unfunded term loan agreements, home equity lines of credit, lines of credit, and demand deposit account overdraft protection. As of both December 31, 2025 and 2024, the Company’s allowance for credit losses on unfunded commitments, which is recorded in other liabilities in the Company’s consolidated balance sheets, totaled $0.4 million.
Previous wording
Deposits totaled $972.6 million as of December 31, 2024, compared to $950.2 million as of December 31, 2023. The growth in 2024 included an increase of $20.0 million in interest-bearing deposits and an increase in certificates of deposit of $16.9 million, partially offset by a decrease of $8.9 million in money market and savings deposits. The deposit growth in 2024 was partially offset by a decrease of $10.3 million in wholesale brokered deposits. As of December 31, 2024, core deposits, which exclude time deposits of $250 thousand or more and all brokered deposits, totaled $837.7 million, or 86.1% of total deposits, compared to $819.5 million, or 86.2% of total deposits, as of December 31, 2023.
Current wording
Deposits totaled $1,028.0 million as of December 31, 2025, compared to $972.6 million as of December 31, 2024. The growth in 2025 included an increase of $54.3 million in money market and savings deposits and an increase in brokered deposits of $65.6 million, partially offset by decreases of $21.9 million in interest-bearing demand deposits, $40.5 million in certificates of deposit and $2.1 million in non-interest bearing deposits. The shift to money market and savings deposits is consistent with deposit holders seeking to maximize interest earnings on their accounts, while also maintaining liquidity. The majority of the brokered deposits acquired by the Company during the year were obtained in conjunction with interest rate derivative instruments that are intended to support the Company’s overall interest rate hedging strategy. As of December 31, 2025, core deposits, which exclude time deposits of $250 thousand or more and all brokered deposits, totaled $838.3 million, or 81.6% of total deposits, compared to $837.7 million, or 86.1% of total deposits, as of December 31, 2024.
Previous wording
Other interest-bearing liabilities consist of federal funds purchased, securities sold under agreements to repurchase, FHLB advances and subordinated debt that are used by the Company as alternative sources of funds. As of both December 31, 2024 and 2023, these liabilities represented 2.5% of interest-bearing liabilities. The table below summarizes short- and long-term liabilities and related interest rate data as of and for the years ended December 31, 2024 and 2023.
Current wording
Other interest-bearing liabilities consist of federal funds purchased, securities sold under agreements to repurchase, FHLB advances and subordinated debt that are used by the Company as alternative sources of funds. As of December 31, 2025 and 2024, these liabilities represented 1.2% and 2.5%, respectively, of interest-bearing liabilities. The table below summarizes short- and long-term liabilities and related interest rate data as of and for the years ended December 31, 2025 and 2024.
Previous wording
As of December 31, 2024, shareholders’ equity totaled $98.6 million, or 9.0% of total assets, compared to $90.6 million, or 8.4% of total assets, as of December 31, 2023. The increase in shareholders’ equity during the year ended December 31, 2024 resulted primarily from earnings, net of dividends paid, partially offset by repurchases of shares of the Company's common stock. In addition, shareholders' equity was positively impacted during 2024 by reductions in the Company's accumulated other comprehensive loss resulting from changes in market interest rates, as well as the maturity of lower yielding investment securities.
Current wording
As of December 31, 2025, shareholders’ equity totaled $105.6 million, or 9.1% of total assets, compared to $98.6 million, or 9.0% of total assets, as of December 31, 2024. The increase in shareholders’ equity during the year ended December 31, 2025 resulted primarily from earnings, net of dividends paid and repurchases of shares of the Company's common stock. In addition, shareholders' equity was positively impacted during the period by reductions in the Company's accumulated other comprehensive loss resulting from the maturity of lower yielding investment securities combined with purchases of investment securities at higher yields.
Previous wording
During the year ended December 31, 2024 the Company completed repurchases of 146,500 shares of its common stock at a weighted average price of $11.22 per share, or $1.6 million in aggregate. The repurchased shares were allocated to treasury stock under the Company’s previously announced share repurchase program, which was expanded in 2024 to authorize the purchase of 600,000 additional shares. Share repurchases under the program may be made through open market and privately negotiated transactions at times and in such amounts as management deems appropriate, subject to applicable regulatory requirements. The repurchase program does not obligate the Company to acquire any particular number of shares and may be suspended at any time at the Company’s discretion. As of December 31, 2024, 912,813 shares remained available for repurchase under the program.
Current wording
During the year ended December 31, 2025, the Company completed repurchases of 128,000 shares of its common stock at a weighted average price of $13.76 per share, or $1.8 million in aggregate. The repurchased shares were allocated to treasury stock under the Company’s previously announced share repurchase program, which was expanded in 2025 to authorize the purchase of 1,000,000 additional shares. Share repurchases under the program may be made through open market and privately negotiated transactions at times and in such amounts as management deems appropriate, subject to applicable regulatory requirements. The repurchase program does not obligate the Company to acquire any particular number of shares and may be suspended at any time at the Company’s discretion. As of December 31, 2025, 1,784,813 shares remained available for repurchase under the program.
Previous wording
During the year ended December 31, 2024, the Company declared dividends totaling $0.22 per common share, or approximately $1.3 million in aggregate amount, compared to $0.20 per common share, or approximately $1.2 million in aggregate amount, during the year ended December 31, 2023. Bancshares’ Board of Directors evaluates dividend payments based on the Company’s level of earnings and the desire to maintain a strong capital base, as well as regulatory requirements relating to the payment of dividends.
Current wording
During the year ended December 31, 2025, the Company declared dividends totaling $0.28 per common share, or approximately $1.6 million in aggregate amount, compared to $0.22 per common share, or approximately $1.3 million in aggregate amount, during the year ended December 31, 2024. Bancshares’ Board of Directors evaluates dividend payments based on the Company’s level of earnings and the desire to maintain a strong capital base, as well as regulatory requirements relating to the payment of dividends.
Previous wording
The asset portion of the balance sheet provides liquidity primarily from the following sources: (1) excess cash and interest-bearing deposits in banks, (2) federal funds sold, (3) principal payments and maturities of loans and (4) principal payments and maturities from the investment portfolio. Loans maturing or repricing in one year or less amounted to $279.0 million as of December 31, 2024 and $241.2 million as of December 31, 2023. Investment securities forecasted to mature or reprice in one year or less were estimated to be $29.6 million and $12.9 million of the investment portfolio as of December 31, 2024 and 2023, respectively.
Current wording
The asset portion of the balance sheet provides liquidity primarily from the following sources: (1) excess cash and interest-bearing deposits in banks, (2) federal funds sold, (3) principal payments and maturities of loans and (4) principal payments and maturities from the investment portfolio. Loans maturing or repricing in one year or less amounted to $274.7 million as of December 31, 2025 and $279.0 million as of December 31, 2024. Investment securities forecasted to mature or reprice in one year or less were estimated to be $27.5 million and $29.6 million of the investment portfolio as of December 31, 2025 and 2024, respectively.
Previous wording
Although some securities in the investment portfolio have legal final maturities exceeding 10 years, a substantial percentage of the portfolio provides monthly principal and interest payments and consists of securities that are readily marketable and easily convertible into cash on short notice. The investment securities portfolio had an estimated average life of 3.6 years and 3.9 years as of December 31, 2024 and 2023, respectively. However, management does not rely solely upon the investment portfolio to generate cash flows to fund loans, capital expenditures, dividends, debt repayment and other cash requirements. These activities are also funded by cash flows from loan payments, as well as increases in deposits and short-term borrowings.
Current wording
Although some securities in the investment portfolio have legal final maturities exceeding 10 years, a substantial percentage of the portfolio provides monthly principal and interest payments and consists of securities that are readily marketable and easily convertible into cash on short notice. The investment securities portfolio had an estimated average life of 3.7 years and 3.6 years as of December 31, 2025 and 2024, respectively. However, management does not rely solely upon the investment portfolio to generate cash flows to fund loans, capital expenditures, dividends, debt repayment and other cash requirements. These activities are also funded by cash flows from loan payments, as well as increases in deposits and short-term borrowings.
Previous wording
The Company also has access to the FRB’s discount window. The discount window allows borrowing on pledged collateral that includes eligible investment securities and loans. In response to heightened liquidity concerns in the banking industry, during 2023 management undertook measures designed to enhance the Company’s liquidity position. These procedures included holding higher levels of on-balance sheet cash, as well as enhancing the availability of off-balance sheet borrowing capacity. As part of these efforts, during the third quarter of 2023, the Company completed the establishment of additional borrowing capacity through the FRB's discount window, primarily via the pledging of the majority of the Company’s indirect loan portfolio as collateral. Including the pledging of these loans, along with selected securities, the Company had $165.1 million and $161.7 million in borrowing capacity as of December 31, 2024 and December 31, 2023, respectively.
Current wording
The Company also has access to the FRB’s discount window. The discount window allows borrowing on pledged collateral that includes eligible investment securities and loans. Including the pledging of these eligible investment securities and loans, the Company had $210.9 million and $165.1 million in borrowing capacity as of December 31, 2025 and December 31, 2024, respectively.
Previous wording
The Company had $10.0 million in outstanding short-term borrowings under FHLB advances as of both December 31, 2024 and 2023. On October 1, 2021, the Company completed a private placement of $11.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes that will mature on October 1, 2031. Net of unamortized debt issuance costs, the subordinated notes were recorded as long-term borrowings totaling $10.9 million and $10.8 million as of December 31, 2024 and 2023, respectively.
Current wording
On October 1, 2021, the Company completed a private placement of $11.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes that will mature on October 1, 2031. Net of unamortized debt issuance costs, the subordinated notes were recorded as long-term borrowings totaling $10.9 million as of both December 31, 2025 and 2024.
Previous wording
The table above calculates readily available liquidity by combining cash and cash equivalents, federal funds sold, securities purchased under reverse repurchase agreements and unencumbered investment security values on the Company’s consolidated balance sheet with off-balance sheet liquidity that is readily available through unused collateral pledged to the FHLB and FRB, as well as unsecured lines of credit with other banks. Liquidity from pledgable investment securities and total readily available liquidity are measures that have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) used by management and regulators to analyze the Company's liquidity position. Management believes that these non-GAAP measures are beneficial to the reader as they enhance the overall understanding of the Company’s liquidity position and can be used as a supplement to GAAP-based measures of liquidity, but they should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP.
Current wording
The table above calculates readily available liquidity by combining cash and cash equivalents, federal funds sold, securities purchased under reverse repurchase agreements and unencumbered investment security values on the Company’s consolidated balance sheet with off-balance sheet liquidity that is readily available through unused collateral pledged to the FHLB and FRB, as well as unsecured lines of credit with other banks. Liquidity from pledgable investment securities and total readily available liquidity are non-GAAP measures used by management and regulators to analyze a portion of the Company's liquidity. Management uses these measures to evaluate the Company's liquidity position. Management believes that these non-GAAP measures are beneficial to the reader as they enhance the overall understanding of the Company’s liquidity position and can be used as a supplement to GAAP-based measures of liquidity, but they should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP.
Previous wording
Pledgable investment securities are considered by management as a readily available source of liquidity since the Company has the ability to pledge the securities with the FHLB or FRB to obtain immediate funding. Both available-for-sale and held-for-maturity securities may be pledged at fair value with the FHLB and through the FRB discount window. The amounts shown as liquidity from pledgable investment securities represent total investment securities as recorded on the consolidated balance sheet, less reductions for securities already pledged and discounts expected to be taken by the lender to determine collateral value.
Current wording
Pledgable investment securities are considered by management as a readily available source of liquidity since the Company has the ability to pledge the securities with the FHLB or FRB to obtain immediate funding. Both available-for-sale and held-to-maturity securities may be pledged at fair value with the FHLB and through the FRB discount window. The amounts shown as liquidity from pledgable investment securities represent total investment securities as recorded on the consolidated balance sheets, less reductions for securities already pledged and discounts expected to be taken by the lender to determine collateral value.
Previous wording
The unused lendable collateral value at the FHLB presented in the table above represents only the amount immediately available to the Company from loans already pledged by the Company to the FHLB as of each consolidated balance sheet date presented. As of December 31, 2024 and December 31, 2023, the Company's total remaining credit availability with the FHLB was $319.9 million and $279.4 million, respectively, subject to the pledging of additional collateral which may include eligible investment securities and loans. In addition, the Company has access to additional sources of liquidity that generally could be obtained over a period of time, including access to unsecured brokered deposits through the wholesale funding markets. Management believes the Company’s on-balance sheet and other readily available liquidity provide strong indicators of the Company’s ability to fund obligations in a stressed liquidity environment.
Current wording
The unused lendable collateral value at the FHLB presented in the table above represents only the amount immediately available to the Company from loans already pledged by the Company to the FHLB as of each consolidated balance sheet date presented. As of December 31, 2025 and December 31, 2024, the Company's total remaining credit availability with the FHLB was $324.1 million and $319.9 million, respectively, subject to the pledging of additional collateral which may include eligible investment securities and loans. In addition, the Company has access to additional sources of liquidity that generally could be obtained over a period of time, including access to unsecured brokered deposits through the wholesale funding markets. Management believes the Company’s on-balance sheet and other readily available liquidity provide strong indicators of the Company’s ability to fund obligations in a stressed liquidity environment.
Previous wording
Excluding wholesale brokered deposits, as of December 31, 2024, the Company had approximately 29 thousand deposit accounts with an average balance of approximately $31.0 thousand per account. Estimated uninsured deposits (calculated as deposit amounts per deposit holder in excess of $250 thousand, the maximum amount of federal deposit insurance, and excluding deposits secured by pledged assets) totaled $216.8 million, or 22.2% of total deposits, as of December 31, 2024. As of December 31, 2023, estimated uninsured deposits totaled $200.3 million, or 21.1% of total deposits.
Current wording
Excluding wholesale brokered deposits, as of December 31, 2025, the Company had approximately 28 thousand deposit accounts with an average balance of approximately $32.0 thousand per account. Estimated uninsured deposits (calculated as deposit amounts per deposit holder in excess of $250 thousand, the maximum amount of federal deposit insurance, and excluding deposits secured by pledged assets) totaled $218.0 million, or 21.2% of total deposits, as of December 31, 2025. As of December 31, 2024, estimated uninsured deposits totaled $216.8 million, or 22.3% of total deposits.
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Three credit risk participation agreements with lead participant banks with which the Company shares participation loans. For participating in the agreements, the Company received one-time fees which were included in other liabilities. These derivatives are not eligible for hedge accounting treatment.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Three forward interest rate swap contracts designated as fair value hedges that were intended to mitigate risk associated with rising interest rates by converting a portfolio of fixed rate loans to a variable rate.