FIRST US BANCSHARES, INC.
For the period ended Mar 31, 2026. Filed May 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.
Mar 31, 2026 · Filed May 7, 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-Q
Period ended 2025-09-30; filed 2025-11-06.
0001193125-25-268881
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001193125-26-211192
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 116 previous paragraphs and 112 current paragraphs.
59 unchanged; 39 reworded; 14 added; 15 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 previous and 16 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 (14)
Current report
During the three months ended March 31, 2026, the banking industry continued to operate in an environment characterized by economic uncertainty, influenced by moderating, but still resilient, U.S. economic growth, inflation levels remaining above the Federal Reserve’s long-term objective, and a labor market that has shown signs of gradual softening. While U.S. gross domestic product (“GDP”) growth moderated from levels experienced during the middle of 2025, economic activity remained positive entering 2026, supported by consumer spending and business investment, though at a slower pace.
Current report
During the first quarter of 2026, financial markets were significantly impacted by the onset of military conflict involving Iran beginning in late February 2026. The conflict, including disruptions to energy markets and shipping routes in the Strait of Hormuz, contributed to increased volatility across global financial markets and renewed upward pressure on inflation expectations. Oil prices increased sharply during the quarter, and global supply chain disruptions intensified, contributing to heightened economic uncertainty and raising concerns regarding the potential for slower economic growth or recessionary conditions should the conflict persist.
Current report
Market interest rates, including U.S. Treasury yields, exhibited increased volatility during the first quarter of 2026 compared to the fourth quarter of 2025. While Treasury yields generally declined during the latter part of 2025 as markets anticipated monetary policy easing, yields moved higher during portions of the first quarter of 2026 in response to rising inflation expectations and geopolitical uncertainty associated with the Iran conflict. For example, the 10-year U.S. Treasury yield increased meaningfully following the onset of the conflict, reaching levels above those observed at year-end 2025, before experiencing periods of fluctuation as market sentiment shifted. The combination of moderating economic growth, inflation above target levels, geopolitical instability, and evolving expectations for monetary policy continues to create a challenging environment in which to predict future interest rate movements.
Current report
Uncertainty remains elevated with respect to U.S. fiscal and trade policy, including the ongoing and potential impacts of tariffs implemented by the Trump administration and the possibility of additional policy changes. Geopolitical risks, including the ongoing conflict involving Iran as well as continued unrest in the Middle East and Ukraine, persist and contribute to broader global economic uncertainty. These factors may continue to impact business sentiment, energy markets, supply chains, and overall economic activity.
Current report
In the Company’s local markets, competitive pressures for both loans and deposits have remained elevated during the first quarter of 2026. Competition for deposits continues to constrain the Company’s ability to significantly reduce funding costs despite the decline in market interest rates relative to peak levels in 2025. Commercial lending activity has remained measured as business customers continue to evaluate the potential impact of interest rate movements, geopolitical developments, and broader economic uncertainty on their operations. Consumer spending trends have remained mixed on a macroeconomic basis; however, the Company has continued to experience growth in consumer indirect lending, primarily within higher credit quality segments.
Current report
The competitive environment, combined with ongoing economic, geopolitical, and policy uncertainty, continues to present 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, geopolitical developments, or interest rate movements could negatively impact the Company’s financial condition and results of operations.
Current report
For the three months ended March 31, 2026, the Company recorded a provision for credit losses of $0.3 million, compared to $0.5 million for the three months ended March 31, 2025. The decrease in provisioning comparing the two periods was primarily associated with a reduction in loan growth during the first quarter of 2026 compared to the first quarter of 2025, including the impact of the Company’s reserve for unfunded lending commitments. As of both March 31, 2026 and December 31, 2025, the Company’s allowance for credit losses ("ACL") on loans and leases as a percentage of total loans was 1.25%.
Current report
Total deposits increased by $10.9 million, or 1.1%, during the three months ended March 31, 2026, due primarily to an increase in interest-bearing demand deposits of $28.4 million, partially offset by a $4.7 million decrease in noninterest-bearing deposits and a $12.8 million decrease in time deposits. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $853.8 million, or 82.2% of total deposits, as of March 31, 2026, compared to $838.3 million, or 81.6% of total deposits, as of December 31, 2025. The average rate on deposits totaled 2.18% during the three months ended March 31, 2026, compared to 2.07% during the three months ended March 31, 2025. In the current environment, significant competitive pressure remains to acquire and maintain deposit balances.
Current report
Cash and Investment Securities
Current report
Interest income increased by $0.9 million, comparing the three months ended March 31, 2026 to the three months ended March 31, 2025. The increase in interest income resulted from a $1.0 increase attributable to growth in average interest-earning assets, partially offset by a $0.1 million decrease attributable to lower average yields on interest-earning assets. With the exception of investment securities, yields in all earning asset categories declined comparing the three months ended March 31, 2026 to the three months ended March 31, 2025 as short-term interest rates generally declined comparing the two periods.
Current report
Interest expense increased by $0.6 million, comparing the three months ended March 31, 2026 to the three months ended March 31, 2025. The increase resulted primarily from increases in both the average balance and rates paid on money market and time deposits. These increases were partially offset by reductions in both average balances and rates associated with demand deposits and borrowings.
Current report
For the three months ended March 31, 2026, the Company recorded a provision for credit losses of $0.3 million, compared to $0.5 million for the three months ended March 31, 2025. The decrease in provisioning comparing the two periods was primarily associated with a reduction in loan growth during the first quarter of 2026 compared to the first quarter of 2025, including the impact of the Company’s reserve for unfunded lending commitments. Net charge-offs totaled $0.5 million and $0.3 million for the three months ended March 31, 2026 and 2025, respectively.
Current report
Net charge-offs as a percentage of average loans in the three prior full years were as follows: 0.14% (2024), 0.14% (2023), 0.16% (2022).
Current report
As of March 31, 2026, shareholders’ equity totaled $104.6 million, or 9.0% of total assets, compared to $105.6 million, or 9.1% of total assets, as of December 31, 2025. While earnings, net of dividends paid, increased shareholders’ equity during the three months ended March 31, 2026, the increase was fully offset by share repurchases, combined with an increase in the Company’s accumulated other comprehensive loss resulting from the increasing interest rate environment during the period. During both the three months ended March 31, 2026 and 2025, the Company declared cash dividends totaling $0.07 per share on its common stock.
Removed paragraphs (15)
Previous report
Economic volatility persisted during the nine months ended September 30, 2025 due to a number of factors, including continued growth in U.S. gross domestic product (“GDP”), as well as rising inflation and unemployment levels, during the third quarter of 2025. As of September 30, 2025, uncertainty continued related to the ultimate impact of trade tariffs introduced by the Trump administration, ongoing geopolitical unrest, and more recently, the Congressional shutdown of “nonessential” portions of the U.S. government. Estimates of second quarter 2025 U.S. GDP were revised upward to 3.8%, rebounding from a 0.5% contraction in the first quarter of 2025. An October 2025 estimate by the Federal Reserve Bank of Atlanta put third quarter 2025 GDP at 3.9%. The U.S. inflation rate, as measured by the consumer price index, rose to 3.0% in September 2025, the highest level since January 2025, but slightly below consensus forecasts. The U.S. unemployment rate increased to 4.3% in August 2025, and while unemployment for September 2025 was not released in accordance with the typical time-frame due to the government shutdown, consensus expectations are that September unemployment will hold steady with the August number. Through most of the nine months ended September 30, 2025, the Open Market Committee of the FRB did not change the federal funds rate; however, in both September and October 2025, the federal funds rate was reduced by 25 basis points. Although volatile at times, Treasury rates trended lower during the first nine months of 2025, indicating continued sentiment for further rate reductions in the coming year. The combination of continued GDP growth, inflation levels above the FRB’s 2% target, and rising unemployment levels provides a difficult environment in which to predict future movement in interest rates.
Previous report
Additionally, the impacts of new trade and other economic policies in the U.S., including tariffs and the One Big Beautiful Bill Act, along with the threat to implement additional tariffs, have created economic uncertainty which will continue to evolve and impact our business in future periods. There is a risk that these policy changes could have a negative impact on certain of our customers, causing increased difficulty in repaying their loans or other obligations which could result in a higher level of credit losses in our loan portfolios with a corresponding impact on our results of operations. In the Company’s local markets, competition for deposits has remained at elevated levels causing difficulty in lowering funding costs amid a declining interest rate environment. Uncertainty has continued with respect to commercial lending as business firms assess the potential impact of trade tariffs and the interest rate environment on their activities. However, while consumer spending has generally slowed on a macro-basis, the Company has experienced significant growth in consumer indirect lending at the higher end of the credit spectrum during the first nine months of 2025. The competitive environment, combined with ongoing economic uncertainty, provides a challenging environment in which to maintain and increase the Company’s net interest margin. Should economic conditions worsen, the Company is exposed to increased credit risk from both commercial and consumer borrowers. Furthermore, should market interest rates or the federal funds rate increase or decrease at significant levels, particularly over a short period of time, the Company’s net interest margin and net interest income could be negatively impacted.
Previous report
For the nine months ended September 30, 2025, the Company recorded a provision for credit losses of $3.8 million, compared to $0.2 million for the nine months ended September 30, 2024. Of the total provision recorded in the 2025 period, $2.8 million was associated with the consumer indirect loan portfolio, $1.1 million with the commercial and industrial portfolio (“C&I”), $0.1 million with the non-residential commercial real estate portfolio (“CRE”) and $0.1 million with the multi-family real estate category. These provisions were partially offset by a net of $0.3 million in reductions of credit losses in other loan categories. The increased provision associated with the consumer indirect portfolio was attributable to significant growth in the portfolio during the nine months ended September 30, 2025, as well as an increase in net charge-offs, particularly in the second quarter of 2025. The provisions recorded for C&I and CRE were primarily the result of credit allowances on two individually evaluated loans. During the third quarter of 2025, charge-offs associated with the indirect portfolio decreased relative to the second quarter and credit issues associated with the two individually evaluated loans were substantially resolved. As of September 30, 2025, the Company’s allowance for credit losses ("ACL") on loans and leases as a percentage of total loans was 1.23%, compared to 1.24% as of December 31, 2024.
Previous report
September 30, 2025 compared to the corresponding period of 2024 was partially offset by a decrease in salaries and benefits, and to a lesser extent, various other expense categories.
Previous report
Total deposits increased by $29.9 million, or 3.1%, during the nine months ended September 30, 2025, due primarily to increases in interest-bearing demand deposit accounts, as well as the addition of brokered certificates of deposit obtained to assist in the management of deposit costs. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $838.4 million, or 83.6% of total deposits, as of September 30, 2025, compared to $837.7 million, or 86.1% of total deposits, as of December 31, 2024.
Previous report
Short-term Borrowings
Previous report
As of September 30, 2025, the Company had $20.0 million in short-term borrowings outstanding compared to $10.0 million outstanding as of December 31, 2024. The short-term borrowings were held as part of the Company’s efforts to maintain on-balance sheet liquidity levels while repricing deposits at lower rates. As of both September 30, 2025 and December 31, 2024, all outstanding short-term borrowings had remaining maturities of less than 30 days. The amount outstanding as of September 30, 2025 included $10.0 million borrowed from the Federal Home Loan Bank of Atlanta (“FHLB”) and $10.0 million borrowed from the Federal Reserve Bank’s (“FRB”) discount window. As of December 31, 2024, all short-term borrowings outstanding were borrowed exclusively from the FHLB.
Previous report
Deployment of Funds
Previous report
Shareholders’ equity increased by $5.6 million, or 5.7%, as of September 30, 2025, compared to December 31, 2024. The increase in shareholders’ equity during the nine months ended September 30, 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 nine months ended September 30, 2025 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.
Previous report
Interest income increased by $0.3 million, comparing the nine months ended September 30, 2025 to the nine months ended September 30, 2024. While increased average interest-earning asset balances contributed $1.8 million in interest income growth, this growth was offset by reductions in average yield. Amid a declining interest rate environment, average yields decreased in all interest-earning categories, except investment securities which provided the majority of interest income growth comparing the two nine-month periods.
Previous report
Interest expense decreased by $0.3 million, comparing the nine months ended September 30, 2025 to the nine months ended September 30, 2024. While a decrease in average rates paid on deposits contributed $1.1 million to the decrease in interest expense, these savings were partially offset by the impact of growth in average deposits and borrowings which increased interest expense by $0.8 million comparing the two nine-month periods.
Previous report
For the nine months ended September 30, 2025, the Company recorded a provision for credit losses of $3.8 million, compared to $0.2 million for the nine months ended September 30, 2024. Of the total provision in the 2025 period, $2.8 million was associated with the consumer indirect loan portfolio, $1.1 million with the C&I portfolio, $0.1 million with the non-residential CRE portfolio and $0.1 million with the multi-family real estate category. These provisions were partially offset by a $0.3 million net reduction of credit losses in other loan categories. The increased provision associated with the consumer indirect portfolio was attributable to significant growth in the portfolio during the nine months ended September 30, 2025, as well as an increase in net charge-offs, particularly in the second quarter of 2025. The provisions recorded for C&I and CRE were primarily the result of credit allowances on two individually evaluated loans.
Previous report
Net charge-offs totaled $3.3 million and $0.6 million for the nine months ended September 30, 2025 and 2024, respectively. Of the net charge-offs recorded during the nine months ended September 30, 2025, $2.2 million was associated with one individually evaluated commercial loan and $1.3 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 $0.2 million in net recoveries associated with other loan categories. Of the net charge-offs recorded during the nine months ended September 30, 2024, $0.8 million was associated with the consumer indirect portfolio, partially offset by $0.2 million in net recoveries in the consumer direct portfolio.
Previous report
In July 2025, the One Big Beautiful Bill Act (the "OBBBA") was signed into law, which includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain key provisions from the Tax Cuts and Jobs Act of 2017 and expanding certain incentives from the Inflation Reduction Act of 2022 while accelerating the phase-out of others. We do not anticipate a material impact on our income tax expense and taxes payable from the tax provisions of the OBBBA
Previous report
During the nine months ended September 30, 2025, the Company declared cash dividends totaling $0.21 per share on its common stock, compared to cash dividends totaling $0.15 per share on its common stock during the nine months ended September 30, 2024.
Reworded paragraphs (39)
Previous wording
Delivery of the best possible financial services to customers remains an overall operational focus of the Company. The Company recognizes that attention to detail and responsiveness to customers’ desires are critical to customer satisfaction. The Company continues to upgrade technology, both in its financial services and in the training of its 151 full-time equivalent employees (as of September 30, 2025), to ensure customer satisfaction and convenience.
Current wording
Delivery of the best possible financial services to customers remains an overall operational focus of the Company. The Company recognizes that attention to detail and responsiveness to customers’ desires are critical to customer satisfaction. The Company continues to upgrade technology, both in its financial services and in the training of its 153 full-time equivalent employees (as of March 31, 2026), to ensure customer satisfaction and convenience.
Previous wording
The emphasis of this discussion is a comparison of assets, liabilities and shareholders’ equity as of September 30, 2025 to December 31, 2024, while comparing income and expense for the nine months ended September 30, 2025 and 2024. All yields and ratios presented and discussed herein are recorded and presented on the accrual basis and not on the tax-equivalent basis, unless otherwise indicated.
Current wording
The emphasis of this discussion is a comparison of assets, liabilities and shareholders’ equity as of March 31, 2026 to December 31, 2025, while comparing income and expense for the three months ended March 31, 2026 and 2025. All yields and ratios presented and discussed herein are recorded and presented on the accrual basis and not on the tax-equivalent basis, unless otherwise indicated.
Previous wording
The Company earned net income of $1.9 million, or $0.32 per diluted common share, during the three months ended September 30, 2025, compared to $2.2 million, or $0.36 per diluted common share, for the three months ended September 30, 2024. For the nine months ended September 30, 2025, net income totaled $3.9 million, or $0.64 per diluted share, compared to $6.5 million, or $1.04 per diluted share for the nine months ended September 30, 2024. The decrease in net income during both the three months and the nine months ended September 30, 2025, compared to the previous periods, resulted primarily from increases in the Company’s provision for credit losses on loans and leases and non-interest expense, partially offset by increases in net interest income.
Current wording
The Company earned net income of $1.9 million, or $0.33 per diluted common share, during the three months ended March 31, 2026, compared to $1.8 million, or $0.29 per diluted common share, for the three months ended March 31, 2025. Comparing the two periods, the increase in net income resulted primarily from increased interest income associated with growth in earning assets, as well as from a decrease in the Company’s provision for credit losses on loans and leases.
Previous wording
Summarized condensed consolidated statements of operations are included below for the three and nine months ended September 30, 2025 and 2024.
Current wording
Summarized condensed consolidated statements of operations are included below for the three months ended March 31, 2026 and 2025.
Previous wording
The discussion that follows summarizes the most significant activity that drove changes in the Company’s operating results during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024.
Current wording
The discussion that follows summarizes the most significant activity that drove changes in the Company’s operating results during the three months ended March 31, 2026, as compared to the three months ended March 31, 2025.
Previous wording
Net interest income increased by $0.6 million, or 2.3%, comparing the nine months ended September 30, 2025 to the nine months ended September 30, 2024. The increase resulted from a combination of increased average interest-earning asset balances and decreased average rates on deposits. Average interest-earning assets increased by $45.3 million during the first nine months of 2025, driven by growth in consumer indirect loans and, to a lesser extent, investment securities. While decreases in deposit costs were favorable to the Company’s net interest income, net interest margin decreased as the average yield on interest-earnings assets declined at a faster pace than the average rate on interest-bearing liabilities amid the declining interest rate environment. Net interest margin was 3.57% for the nine months ended September 30, 2025, compared to 3.65% for the nine months ended September 30, 2024.
Current wording
Net interest income increased by $0.3 million, or 3.6%, comparing the three months ended March 31, 2026 to the three months ended March 31, 2025. The increase resulted from growth in average interest-earning asset balances comparing the two periods. Average interest-earning assets increased by $86.3 million, or 8.4%, comparing the three months ended March 31, 2026 to the corresponding period of 2025. Earning asset growth was reflected in total loans, investment securities, federal funds sold and interest-bearing deposits with other financial institutions. The increase in interest income was partially offset by both volume and rate-related increases in interest expense associated with interest-bearing liabilities. While the increase in earning assets was favorable to the Company’s net interest income, net interest margin decreased as the average yield on interest-earnings assets declined at a faster pace than the average rate on interest-bearing liabilities. Net interest margin was 3.37% for the three months ended March 31, 2026, compared to 3.53% for the three months ended March 31, 2025.
Previous wording
Non-interest income remained relatively consistent, totaling $2.6 million for both the nine months ended September 30, 2025 and 2024.
Current wording
Non-interest income remained relatively consistent, totaling $0.8 million for the three months ended March 31, 2026, compared to $0.9 million for the three months ended March 31, 2025.
Previous wording
Non-interest expense increased to $21.8 million for the nine months ended September 30, 2025, compared to $21.4 million for the nine months ended September 30, 2024, an increase of $0.4 million, or 1.8%. The increase comparing the 2025 period to the 2024 period resulted from increases in a number of expense categories, including collection and other real estate/foreclosure expense, as well as increases related to check fraud recoveries that occurred in 2024, but were not repeated in 2025. The increase in non-interest expense during the nine months ended
Current wording
Non-interest expense increased to $7.3 million for the three months ended March 31, 2026, compared to $6.9 million for the three months ended March 31, 2025. The increase comparing the 2026 period to the 2025 period resulted from increases in a number of expense categories, primarily fees for professional services, occupancy, and salaries and benefits expense.
Previous wording
As of September 30, 2025, the Company’s assets totaled $1,147.2 million, compared to $1,101.1 million as of December 31, 2024, an increase of 4.2%.
Current wording
As of March 31, 2026, the Company’s assets totaled $1,165.2 million, compared to $1,154.8 million as of December 31, 2025, an increase of 0.9%.
Previous wording
Total loans increased by $44.5 million, or 5.4%, as of September 30, 2025, compared to December 31, 2024. The increase was driven primarily by growth of $75.9 million in consumer indirect loans during the nine months ended September 30, 2025. The indirect lending platform focuses on consumer lending on the higher end of the credit spectrum. Collateral financed in the indirect portfolio primarily includes boats, recreational vehicles/campers, horse trailers and cargo trailers. The weighted average credit score of new indirect loans financed during the nine months ended September 30, 2025 was 798, while the weighted average credit score for the entire portfolio was 782. In addition to the indirect portfolio, the Company also grew its multi-family residential real estate and commercial and industrial lending categories during the nine months ended September 30, 2025 by $11.7 million and $2.3 million, respectively. Loan growth during the nine months ended September 30, 2025 was partially offset by net reductions of $45.4 million in other lending categories, primarily construction and non-residential commercial real estate. For the nine months ended September 30, 2025, average loan balances increased by $30.6 million, or 3.7%, compared to the nine months ended September 30, 2024.
Current wording
Total loans decreased by $9.3 million, or 1.1%, as of March 31, 2026, compared to December 31, 2025, as growth in the multi-family residential real estate and indirect categories was offset by decreases primarily in the construction, non-residential commercial real estate and commercial and industrial (“C&I”) categories. The decrease in construction is consistent with the ebb and flow of projects in the Company's service territories. Construction loans are generally short-to-medium term loans that are expected to pay off or transfer to another loan category upon project completion. The decrease in non-residential commercial real estate was related to completed construction projects that moved into a permanent category, but were subsequently refinanced into the permanent market. The growth in the indirect category accelerated in the latter part of the first quarter of 2026, consistent with typical seasonal trends. The indirect lending platform focuses on consumer lending at the higher end of the credit spectrum. Collateral financed in the indirect portfolio primarily includes boats, recreational vehicles, campers, horse trailers and cargo trailers. The weighted average credit score of new indirect loans financed during the three months ended March 31, 2026 was 797, while the weighted average credit score for the entire portfolio was 783. While total loans decreased during the first quarter of 2026, average loan balances remained higher comparing the three months ended March 31, 2026 to the three months ended March 31, 2025, increasing by $26.7 million, or 3.2%.
Previous wording
Nonperforming assets, including loans in non-accrual status and other real estate owned, totaled $2.2 million as of September 30, 2025, compared to $5.5 million as of December 31, 2024. As a percentage of total assets, nonperforming assets totaled 0.19% as of September 30, 2025, compared to 0.50% as of December 31, 2024. For the nine months ended September 30, 2025, annualized net charge-offs as a percentage of average loans totaled 0.52% compared to 0.10% for the nine months ended September 30, 2024. Net charge-offs over the nine months ended September 30, 2025 totaled $3.3 million, of which $2.2 million was associated with individually evaluated commercial loans and $1.3 million was associated with the consumer indirect portfolio, partially offset by $0.2 million in net recoveries in other portfolios.
Current wording
Nonperforming assets, including loans in non-accrual status and other real estate owned, totaled $1.8 million as of March 31, 2026, an increase from $1.6 million as of December 31, 2025. As a percentage of total assets, nonperforming assets increased to 0.16% as of March 31, 2026, compared to 0.14% as of December 31, 2025. Net charge-offs as a percentage of average loans totaled 0.23% during the three months ended March 31, 2026, compared to 0.13% during the three months ended March 31, 2025. The increase in net charge-offs comparing the two periods was due primarily to an increase in charge-offs associated with the indirect consumer portfolio.
Previous wording
As of September 30, 2025, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $59.5 million, or 5.2% 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 $164.5 million as of September 30, 2025 compared to $168.6 million as of December 31, 2024. As of September 30, 2025, the expected average life of securities in the investment portfolio was 4.2 years compared to 3.6 years as of December 31, 2024. During the nine months ended September 30, 2025 and 2024, the Company purchased $34.0 million and $27.5 million, respectively, of investment securities at market rates 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. The yield on the investment securities, including both available-for-sale and held to maturity securities, totaled 3.52% for the nine months ended September 30, 2025, compared to 2.93% for the nine months ended September 30, 2024.
Current wording
As of March 31, 2026, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $85.4 million, or 7.3% of total assets, compared to $78.4 million, or 6.8% of total assets, as of December 31, 2025. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $181.5 million as of March 31, 2026, compared to $168.5 million as of December 31, 2025. During the three months ended March 31, 2026, the Company purchased $20.5 million 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, led to continued improvement in yield on the portfolio. The yield on investment securities, including both available-for-sale and held to maturity securities, totaled 3.89% during the three months ended March 31, 2026, compared to 3.44% during the three months ended March 31, 2025. As of March 31, 2026, the expected average life of securities in the investment portfolio was 3.8 years compared to 3.7 years as of December 31, 2025.
Previous wording
As of September 30, 2025, shareholders’ equity totaled $104.2 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 nine months ended September 30, 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 nine months ended September 30, 2025 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 March 31, 2026, shareholders’ equity totaled $104.6 million, or 9.0% of total assets, compared to $105.6 million, or 9.1% of total assets, as of December 31, 2025. While earnings, net of dividends paid, increased shareholders’ equity during the three months ended March 31, 2026, the increase was fully offset by share repurchases, combined with an increase in the Company’s accumulated other comprehensive loss resulting from the increasing interest rate environment during the period.
Previous wording
During the nine months ended September 30, 2025, the Company declared cash dividends totaling $0.21 per share on its common stock, compared to cash dividends totaling $0.15 per share on its common stock during the nine months ended September 30, 2024.
Current wording
During both the three months ended March 31, 2026 and 2025, the Company declared cash dividends totaling $0.07 per share on its common stock.
Previous wording
During the nine months ended September 30, 2025, the Company completed the repurchase of 40,000 shares of its common stock at a weighted average price of $13.38 per share. The repurchases were completed under the Company’s previously announced share repurchase program. As of September 30, 2025, 872,813 shares remained available for repurchase under the program.
Current wording
During the three months ended March 31, 2026, the Company completed the repurchase of 146,500 shares of its common stock at a weighted average price of $15.03 per share. The repurchases were completed under the Company’s previously announced share repurchase program, which was expanded during the fourth quarter of 2025. As of March 31, 2026, 1,638,313 shares remained available for repurchase under the program.
Previous wording
During the nine months ended September 30, 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 September 30, 2025, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 10.77%. Its total capital ratio was 11.92%, and its Tier 1 leverage ratio was 9.19%.
Current wording
During the three months ended March 31, 2026, 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 March 31, 2026, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 10.85%. Its total capital ratio was 11.99%, and its Tier 1 leverage ratio was 8.85%.
Previous wording
During the nine months ended September 30, 2025, the Company continued its renovation of a banking center office in Daphne, Alabama that was purchased from another financial institution. This location is expected to serve as the Bank’s initial deposit gathering facility in the Daphne/Mobile area. It is currently anticipated that the location will open to the public during the first half of 2026. In addition, in October 2025, the Company opened a new automated banking facility in Mountain Brook, Alabama.
Current wording
During the three months ended March 31, 2026, the Company neared completion on renovation of a banking center office in Daphne, Alabama that was purchased from another financial institution. This location will serve as the Bank’s initial deposit gathering facility in the Daphne/Mobile area, and is expected to open to the public during the second quarter of 2026.
Previous wording
The following tables show the average balances of each principal category of assets, liabilities and shareholders’ equity for the three and nine months ended September 30, 2025 and 2024. Additionally, the tables provide an analysis of interest revenue or expense associated with each category, along with the accompanying yield or rate percentage. Net interest margin is calculated for each period presented as net interest income divided by average total interest-earning assets.
Current wording
The following tables show the average balances of each principal category of assets, liabilities and shareholders’ equity for the three months ended March 31, 2026 and 2025. Additionally, the tables provide an analysis of interest revenue or expense associated with each category, along with the accompanying yield or rate percentage. Net interest margin is calculated for each period presented as net interest income divided by average total interest-earning assets.
Previous wording
The Company’s net interest income and net interest margin during the nine months ended September 30, 2025 continued to be impacted by changes in the interest rate environment that began during the latter months of 2024. Notably, between September and December 2024, the federal funds rate was reduced by 100 basis points, and generally, the Company’s interest-earning assets repriced more quickly than interest-bearing liabilities during the latter part of 2024, reducing the Company’s net interest margin to 3.41% during the three months ended December 31 2024. During the nine months ended September 30, 2025, management continued efforts to both maximize earning asset growth and reduce interest expense, resulting in an improvement in net interest margin by 19 basis points, comparing the third quarter of 2025 to the fourth quarter of 2024. While net interest margin improved for three consecutive quarters, it remained below the levels recorded during the earlier periods of 2024. For the nine months ended September 30, 2025, net interest margin was 3.57%, compared to 3.65% for the nine months ended September 30, 2024. In September 2025, the federal funds rate was reduced by 25 basis points, marking the first reduction in the rate since December 2024. In October 2025, the federal funds rate was reduced by an additional 25 basis points. While management is continuing efforts to improve net interest margin, the results of these efforts cannot be fully predicted. Should market interest rates increase or decrease at significant levels, particularly over a short period of time, the Company’s net interest margin and net interest income could be negatively impacted.
Current wording
The Company’s net interest income and net interest margin during the three months ended March 31, 2026 continued to be impacted by variability in the interest rate environment. Notably, between September and December 2025, the federal funds rate was reduced by 75 basis points, and generally, the Company’s interest-earning assets have repriced downward more quickly than interest-bearing liabilities, reducing the Company’s net interest margin to 3.37% during the three months ended March 31 2026, compared to 3.53% during the three months ended March 31, 2025. While management is continuing efforts to improve net interest margin, the results of these efforts cannot be fully predicted. Should market interest rates increase or decrease at significant levels, particularly over a short period of time, the Company’s net interest margin and net interest income could be negatively impacted.
Previous wording
As of September 30, 2025, the Company’s ACL as a percentage of total loans and leases was 1.23%, compared to 1.24% as of December 31, 2024. While we believe that the methodologies and calculations that have been used in the determination of the ACL are adequate, the determination of the appropriateness of the ACL is complex and requires judgment by management about the effects of matters that are inherently uncertain. Factors beyond our control, such as changes in economic forecasts related to the national economy, changes in consumer behavior, or economic deterioration in service areas in which the Company operates, may negatively and materially affect asset quality and the adequacy of the ACL, as well as the resulting provision for credit losses.
Current wording
As of both March 31, 2026 and December 31, 2025, the Company’s ACL as a percentage of total loans and leases was 1.25%. While we believe that the methodologies and calculations that have been used in the determination of the ACL are adequate, the determination of the appropriateness of the ACL is complex and requires judgment by management about the effects of matters that are inherently uncertain. Factors beyond our control, such as changes in economic forecasts related to the national economy, changes in consumer behavior, or economic deterioration in service areas in which the Company operates, may negatively and materially affect asset quality and the adequacy of the ACL, as well as the resulting provision for credit losses.
Previous wording
The Company’s non-interest income remained relatively consistent, totaling $2.6 million for both the nine months ended September 30, 2025 and 2024. Management continues to evaluate opportunities to add non-interest revenue streams and grow existing streams; however, significant variation in non-interest income is not expected in the near term.
Current wording
The Company’s non-interest income remained relatively consistent, totaling $0.8 million for the three months ended March 31, 2026, compared to $0.9 million for the three months ended March 31, 2025. Management continues to evaluate opportunities to add non-interest revenue streams and grow existing streams; however, significant variation in non-interest income is not expected in the near term.
Previous wording
Non-interest expense totaled $21.8 million and $21.4 million during the nine months ended September 30, 2025 and 2024, respectively. The increase comparing the 2025 period to the 2024 period resulted from an increase in a number of expense categories, including collection and other real estate/foreclosure expense, as well as increases related to check fraud recoveries that occurred in 2024, but were not repeated in 2025. The increase in non-interest expense during the nine months ended September 30, 2025 compared to the corresponding nine month period of 2024 was partially offset by a decrease in salaries and benefits, and to a lesser extent, decreases in various other expense categories.
Current wording
Non-interest expense totaled $7.3 million during the three months ended March 31, 2026, compared to $6.9 million during the three months ended March 31, 2025. The increase comparing the 2026 period to the 2025 period resulted from increases in a number of expense categories, primarily fees for professional services, occupancy, and salaries and benefits expense.
Previous wording
The provision for income taxes was $1.1 million and $2.0 million for the nine months ended September 30, 2025 and 2024, respectively. The Company’s effective tax rate was 22.9% and 23.5%, respectively, for the same periods.
Current wording
The provision for income taxes was $0.5 million and $0.6 million for the three months ended March 31, 2026 and 2025, respectively. The Company’s effective tax rate was 20.9% and 23.8%, 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 4.2 years and 3.6 years as of September 30, 2025 and December 31, 2024, 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 3.8 years and 3.7 years as of March 31, 2026 and December 31, 2025, 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 September 30, 2025, available-for-sale securities totaled $164.0 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,
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 March 31, 2026, available-for-sale securities totaled $181.1 million, or 99.8% of the total investment portfolio, compared to $168.1 million, or 99.7% of the total investment portfolio, as of December 31, 2025. Available-for-sale securities consisted of residential and commercial mortgage-backed securities, U.S. Treasury securities, corporate bonds, 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 September 30, 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 state 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 March 31, 2026, held-to-maturity securities totaled $0.4 million, or 0.2% of the total investment portfolio, compared to $0.5 million, or 0.3% of the total investment portfolio, as of December 31, 2025. Held-to-maturity securities consisted of commercial mortgage-backed securities, obligations of U.S. government-sponsored agencies, and obligations of state and political subdivisions.
Previous wording
Net unrealized losses in the available-for-sale portfolio totaled $2.0 million as of September 30, 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.
Current wording
Net unrealized losses in the available-for-sale portfolio totaled $2.1 million as of March 31, 2026, compared to $1.0 million as of December 31, 2025. The increase in unrealized losses in the portfolio resulted from changes in the interest rate environment, in particular, increases in market rates, particularly in the mid- to long-term part of the Treasury curve between December 31, 2025 and March 31, 2026. Net unrealized losses within the available-for-sale portfolio were recognized, net of tax, in accumulated other comprehensive loss.
Previous wording
The Company’s total loan portfolio increased by $44.5 million, or 5.4%, as of September 30, 2025, compared to December 31, 2024. The tables below summarize loan balances by portfolio category, as well as the ACL, as of the end of each of the most recent five quarters as of September 30, 2025:
Current wording
The Company’s total loan portfolio decreased by $9.3 million, or 1.1%, as of March 31, 2026, compared to December 31, 2025. The tables below summarize loan balances by portfolio category, as well as the ACL, as of the end of each of the most recent five quarters as of March 31, 2026:
Previous wording
The Company records an ACL on unfunded lending commitments in which the Company is exposed to credit risk via a present contractual obligation to extend credit unless the obligation is unconditionally cancellable. Unconditional lending commitments generally include unfunded term loan agreements, home equity lines of credit, lines of credit, and demand deposit account overdraft protection.
Current wording
The Company records an ACL on unfunded lending commitments in which the Company is exposed to credit risk via a present contractual obligation to extend credit unless the obligation is unconditionally cancellable. 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 March 31, 2026, the Company’s reserve for unfunded commitments, which is recorded in other liabilities in the Company’s consolidated balance sheets, totaled $0.3 million, compared to $0.4 million as of December 31, 2025.
Previous wording
Total deposits increased to $1,002.5 million as of September 30, 2025, from $972.6 million as of December 31, 2024, an increase of 3.1%. The increase was due primarily to increases in interest-bearing money market accounts, as well as the addition of brokered certificates of deposit obtained to assist in the management of deposit costs over specific terms. Core deposits, which exclude time deposits of $250 thousand or more and all brokered deposits, provide a relatively stable funding source that supports earning assets. Core deposits totaled $838.4 million, or 83.6% of total deposits, as of September 30, 2025, compared to $837.7 million, or 86.1% of total deposits, as of December 31, 2024.
Current wording
Total deposits increased to $1,038.8 million as of March 31, 2026, from $1,028.0 million as of December 31, 2025, an increase of 1.1%. The increase was due primarily to an increase in interest-bearing demand deposits of $28.4 million, partially offset by a $4.7 million decrease in noninterest-bearing deposits and a $12.8 million decrease in time deposits. Core deposits, which exclude time deposits of $250 thousand or more and all brokered deposits, provide a relatively stable funding source that supports earning assets. Core deposits totaled $853.8 million, or 82.2% of total deposits, as of March 31, 2026, compared to $838.3 million, or 81.6% of total deposits, as of December 31, 2025.
Previous wording
In addition, during the nine months ended September 30, 2025, the Company completed the repurchase of 40,000 shares of its common stock at a weighted average price of $13.38 per share. The repurchases were completed under the Company’s previously announced share repurchase program. As of September 30, 2025, 872,813 shares remained available for repurchase under the program. During the nine months ended September 30, 2024, the Company repurchased 106,500 shares of its common stock at a weighted average price of $10.67 per share.
Current wording
In addition, during the three months ended March 31, 2026, the Company completed the repurchase of 146,500 shares of its common stock at a weighted average price of $15.03 per share. The repurchases were completed under the Company’s previously announced share repurchase program. As of March 31, 2026, 1,638,313 shares remained available for repurchase under the program. During the three months ended March 31, 2025, the Company repurchased 40,000 shares of its common stock at a weighted average price of $13.38 per share.
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 and securities purchased under reverse repurchase agreements, (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 $266.2 million as of September 30, 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 $21.7 million and $29.6 million as of September 30, 2025 and December 31, 2024, 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 and securities purchased under reverse repurchase agreements, (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 $277.6 million as of March 31, 2026 and $274.7 million as of December 31, 2025. Investment securities forecasted to mature or reprice in one year or less were estimated to be $28.5 million and $27.5 million as of March 31, 2026 and December 31, 2025, respectively.
Previous wording
Although some securities in the investment portfolio have 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 4.2 years and 3.6 years as of September 30, 2025 and December 31, 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.
Current wording
Although some securities in the investment portfolio have 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 3.8 years and 3.7 years as of March 31, 2026 and December 31, 2025, 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 had $10.0 million of outstanding borrowings under FHLB advances as of both September 30, 2025 and December 31, 2024. 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. The Company had up to $313.0 million and $319.9 million in remaining unused credit from the FHLB (subject to available collateral, which may include eligible investment securities and loans) as of September 30, 2025 and December 31, 2024, respectively.
Current wording
The Company had no outstanding borrowings under FHLB advances as of both March 31, 2026 and December 31, 2025. 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. The Company had up to $326.5 million and $324.1 million in remaining unused credit from the FHLB (subject to available collateral, which may include eligible investment securities and loans) as of March 31, 2026 and December 31, 2025, respectively.
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. The Company maintains pledges of its consumer indirect loan portfolio and selected investment securities with the FRB as collateral to provide immediate access to funding through the discount window. As of September 30, 2025 and December 31, 2024 the Company had $200.9 and $165.1 million, respectively, in unused borrowing capacity with the FRB’s discount window. As of September 30, 2025 and December 31, 2024, the Bank had $10.0 million and zero, respectively, in outstanding federal funds purchased from the FRB's discount window.
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. The Company maintains pledges of its consumer indirect loan portfolio and selected investment securities with the FRB as collateral to provide immediate access to funding through the discount window. As of March 31, 2026 and December 31, 2025 the Company had $212.1 and $210.9 million, respectively, in unused borrowing capacity with the FRB’s discount window. As of both March 31, 2026 and December 31, 2025, the Bank had no outstanding federal funds purchased from the FRB's discount window.
Previous 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 September 30, 2025 and December 31, 2024.
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 $11.0 million and $10.9 million as of March 31, 2026 and December 31, 2025, respectively.
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 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.
Current wording
The table 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.
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-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. The unused lendable collateral value at the FHLB presented in the table 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.
Previous wording
Excluding wholesale brokered deposits, as of September 30, 2025, the Company had approximately 28 thousand deposit accounts with an average balance of approximately $32.2 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 $220.2 million, or 22.0% of total deposits, as of September 30, 2025. As of December 31, 2024, estimated uninsured deposits totaled $216.8 million, or 22.2% of total deposits.
Current wording
Excluding wholesale brokered deposits, as of March 31, 2026, the Company had approximately 27 thousand deposit accounts with an average balance of approximately $33 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 $231.0 million, or 22.1% of total deposits, as of March 31, 2026. As of December 31, 2025, estimated uninsured deposits totaled $216.8 million, or 22.2% of total deposits. Management believes the Company’s on-balance sheet and other readily available liquidity sources as presented in the table above provide strong indicators of the Company’s ability to fund obligations in a stressed liquidity environment, particularly when considered relative to the Company’ uninsured deposit levels. Furthermore, in addition to the liquidity sources noted in the table above, the Company has access to additional sources of liquidity that generally could be obtained over a period of time. For example, the Company has access to unsecured brokered deposits through the wholesale funding markets.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Available-for-sale securities consisted of residential and commercial mortgage-backed securities, U.S. Treasury securities, corporate bonds, obligations of U.S. government-sponsored agencies, and obligations of state and political subdivisions.
Previous report — wording carried elsewhere
As of both September 30, 2025 and December 31, 2024, the Company’s reserve for unfunded commitments, which is recorded in other liabilities in the Company’s consolidated balance sheets, totaled $0.4 million.
Previous report — wording carried elsewhere
The unused lendable collateral value at the FHLB presented in the table 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 September 30, 2025 and December 31, 2024, the Company's total remaining credit availability with the FHLB was $313.0 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. For example, the Company has 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.