FIDELITY D & D BANCORP INC
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 8, 2025
FDBC$68.70+0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001437749-25-015781
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001437749-25-025716
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 182 previous paragraphs and 191 current paragraphs.
103 unchanged; 76 reworded; 11 added; 2 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 37 previous and 38 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 (11)
Current report
three and six months ended June 30, 2025 and 2024
Current report
Net interest income was $35.0 million for the six months ended June 30, 2025 compared to $30.1 million for the six months ended June 30, 2024. The $4.9 million increase in net interest income resulted from the increase of $6.4 million in interest income primarily due to a $181.0 million increase in the average balance of interest-earning assets and a 20 basis point increase in FTE yield. On the asset side, the loan portfolio interest income growth resulted from producing $5.3 million more in interest income from an increase of 25 basis points in FTE loan yields on $120.5 million in higher average balances. Additionally, the Company experienced an increase of $1.5 million in interest earned from interest-bearing deposits with other financial institutions from $71.6 million in higher average balances. The increase in interest income was partially offset by a decrease of $0.3 million in interest earned on the investment portfolio due to decreases of 6 basis points in yield and $11.3 million in average balances. On the funding side, total interest expense increased by $1.5 million primarily due to an increase in interest expense paid on deposits of $2.5 million from 2 basis points higher rates paid on a $194.0 million larger average balance of interest-bearing deposits, partially offset by a decrease in interest expense on borrowings of $1.0 million for the six months ended June 30, 2025 compared to the same period in 2024.
Current report
The overall cost of interest-bearing liabilities was 2.51% for the six months ended June 30, 2025 compared to 2.54% for the six months ended June 30, 2024. The cost of funds decreased 1 basis point to 1.94% for the six months ended June 30, 2025 from 1.95% from the same period of 2024. The FTE yield on earning assets was 4.75% for the six months ended June 30, 2025, an increase of 20 basis points from the 4.55% year-to-date June 30, 2024. The Company’s FTE net interest spread was 2.24% for the six months ended June 30, 2025, an increase of 23 basis points from the 2.01% recorded for the same period of 2024. FTE net interest margin increased by 21 basis points to 2.91% for the six months ended June 30, 2025 from 2.70% for the same 2024 period primarily due to the increase in yields earned on loans and leases outpacing the higher rates paid on interest-bearing deposits.
Current report
For the six months ended June 30, 2025, the provision for credit losses on loans was $755 thousand and the provision for credit losses on unfunded loan commitments was a net benefit of $65 thousand compared to a $400 thousand provision for credit losses on loans and a $90 thousand provision for credit losses on unfunded commitments for the six months ended June 30, 2024.
Current report
For the six months ended June 30, 2025, the increase in the provision for credit losses on loans compared to the prior year period was due to $215 thousand in higher net charge-offs and a higher average total loan balance compared to the same period in 2024. For the six months ended June 30, 2025, the decrease in the provision for unfunded commitments was due to lower growth in unfunded commitments during the period due to increased utilization, specifically commercial construction commitments, compared to the year earlier period.
Current report
Total non-interest income increased $0.7 million, or 16%, to $5.3 million for the second quarter of 2025 compared to $4.6 million for the second quarter of 2024. The increase in non-interest income was primarily attributed to increases of $0.2 million in trust fees, a $0.2 million BOLI death benefit, $0.2 million in loan service charges, and $0.1 million in interchange fees.
Current report
Non-interest expenses increased $1.1 million, or 8%, for the second quarter of 2025 to $14.7 million from $13.6 million for the same quarter of 2024. The increase in non-interest expenses was primarily due to the increases in salaries and benefits expense of $0.8 million, premises and equipment expense of $0.2 million, and advertising expense of $0.2 million. These increases were partially offset by a $0.2 million decrease in professional services for the three months ended June 30, 2025 compared to the same period of 2024.
Current report
The ratios of non-interest expense less non-interest income to average assets, known as the expense ratio, were 1.38% and 1.48% for the six months ended June 30, 2025 and 2024. The expense ratio decreased because of higher average assets. The efficiency ratio (non-GAAP) decreased from 67.01% at June 30, 2024 to 61.42%(1) at June 30, 2025 due to net interest income increasing.
Current report
During the second quarter of 2025, management created a separate pool for its consumer loans purchased from the third-party originator, BHG Financial, due to the unique risk characteristics of these loans compared to the consumer loans originated by the Company. The total balance of the BHG consumer loan portfolio was $11.3 million as of June 30, 2025.
Current report
Net of depreciation, premises and equipment increased $4.2 million during the first six months of 2025 primarily due to construction in the new headquarters building. These increases were partially offset by $1.2 million in depreciation expense.
Current report
During the first half of 2025, other assets increased by $1.1 million. The increase was primarily due to a security settlement of $2.6 million that is recorded within other assets until the settlement is closed, and the security is properly classified. Additionally, the Company recorded an increase of $0.8 million in prepaid assets. The primary asset to offset the increases was a decrease of $0.8 million in deferred taxes. On July 4, 2025, a new tax bill, H.R. 1 was signed into law. The Act extends or reinstates certain provisions of the 2017 Tax Cuts and Jobs Act, includes tax relief measures, modifies certain energy tax credits granted under the Inflation Reduction Act and sets various limits on tax deductions, among other key provisions. The Company expects this new law will have an immaterial effect on the calculation of deferred taxes in 2025.
Removed paragraphs (2)
Previous report
Net of depreciation, premises and equipment decreased $0.9 million during the first three months of 2025 primarily due to depreciation expense. These decreases were offset by $0.1 million in additions to premises and equipment.
Previous report
During the first three months of 2025, other assets decreased by $0.9 million. The decrease was primarily due to $1.1 million less in internal DDA overdrafts from the timing of payroll coupled with a decrease of $0.8 million in deferred tax assets. The primary asset to offset the decrease was an increase of $1.4 million in prepaid assets.
Reworded paragraphs (76)
Previous wording
The following is management's discussion and analysis of the significant changes in the consolidated financial condition of the Company as of March 31, 2025 compared to December 31, 2024 and a comparison of the results of operations for the three months ended March 31, 2025 and 2024. Current performance may not be indicative of future results. This discussion should be read in conjunction with the Company’s 2024 Annual Report filed on Form 10-K.
Current wording
The following is management's discussion and analysis of the significant changes in the consolidated financial condition of the Company as of June 30, 2025 compared to December 31, 2024 and a comparison of the results of operations for the three and six months ended June 30, 2025 and 2024. Current performance may not be indicative of future results. This discussion should be read in conjunction with the Company’s 2024 Annual Report filed on Form 10-K.
Previous wording
The Company is a Pennsylvania corporation and a bank holding company, whose wholly-owned state chartered commercial bank and trust subsidiary is The Fidelity Deposit and Discount Bank. The Company is headquartered in Dunmore, Pennsylvania. We consider Lackawanna, Northampton and Luzerne Counties our primary marketplace, the "market area".
Current wording
The Company is a Pennsylvania corporation and a bank holding company, whose wholly-owned state chartered commercial bank and trust subsidiary is The Fidelity Deposit and Discount Bank. The Company is headquartered in Dunmore, Pennsylvania. We consider Lackawanna, Northampton and Luzerne Counties of Pennsylvania our primary marketplace, the "market area".
Previous wording
As a leading Northeastern and Eastern Pennsylvania community bank, our goals are to enhance shareholder value while continuing to build a full-service community bank. We focus on growing our core business of retail and business lending and deposit gathering while maintaining strong asset quality and controlling operating expenses. We continue to implement management strategies to diversify earning assets (see “Funds Deployed” section of this management’s discussion and analysis) and to increase the amount of relationship core deposits (see “Funds Provided” section of this management’s discussion and analysis). These strategies include a focus on commercial lending and the ancillary business products and services supporting our commercial customers’ needs as well as residential lending strategies and an array of consumer products. We focus on developing a full banking relationship with existing, as well as new business prospects. The Bank has a personal and corporate trust department and also provides alternative financial and insurance products with asset management services. In addition, we explore opportunities to selectively expand and optimize our franchise footprint, consisting presently of our 21-branch network.
Current wording
As a leading Northeastern and Eastern Pennsylvania community bank, our goals are to enhance shareholder value while continuing to improve a full-service community bank. We focus on growing our core business of retail and business lending and deposit gathering while maintaining strong asset quality and controlling operating expenses. We continue to implement management strategies to diversify earning assets (see “Funds Deployed” section of this management’s discussion and analysis) and to increase the amount of relationship core deposits (see “Funds Provided” section of this management’s discussion and analysis). These strategies include a focus on commercial lending and the ancillary business products and services supporting our commercial customers’ needs as well as residential lending strategies and an array of consumer products. We focus on developing a full banking relationship with existing, as well as new business prospects. The Bank has a personal and corporate trust department and also provides alternative financial and insurance products with asset management services. In addition, we explore opportunities to selectively expand and optimize our franchise footprint, consisting presently of our 21-branch network.
Previous wording
We are impacted by national, regional and market area economic factors, with commercial, commercial real estate and residential mortgage loans concentrated in Northeastern Pennsylvania, primarily in Lackawanna and Luzerne counties, and Eastern Pennsylvania, primarily in Northampton county. According to the U.S. Bureau of Labor Statistics, the national unemployment rate for March 2025 was 4.2%, up 0.1 percentage points from December 2024. Similar to the national rate, the unemployment rates in the Scranton - Wilkes-Barre – Hazleton (market area north) and the Allentown – Bethlehem – Easton (market area south) Metropolitan Statistical Areas (local) increased. The local unemployment rates at March 31, 2025 were 4.6% in market area north and 4.2% in market area south, respectively, an increase of 0.8 percentage points and 0.8 percentage points from the 3.8% and 3.4%, respectively, at December 31, 2024. The median home values in the Scranton-Wilkes-Barre-Hazleton metro and Allentown-Bethlehem-Easton metro each increased 7.1% and 4.5% from a year ago, according to Zillow, an online database advertising firm providing access to its real estate search engines to various media outlets, and values are expected to grow 0.3% and remain flat, respectively, in the next year. In light of these expectations, we believe the real estate values could continue to increase at these levels with the declining rate environment. Management will continue to monitor the economic climate in our region and scrutinize growth prospects with credit quality as a principal consideration.
Current wording
We are impacted by national, regional and market area economic factors, with commercial, commercial real estate and residential mortgage loans concentrated in Northeastern Pennsylvania, primarily in Lackawanna and Luzerne counties, and Eastern Pennsylvania, primarily in Northampton county. According to the U.S. Bureau of Labor Statistics, the national unemployment rate for June 2025 was 4.1%, remaining flat compared to December 2024. The local market unemployment rates in the Scranton - Wilkes-Barre – Hazleton (market area north) and the Allentown – Bethlehem – Easton (market area south) Metropolitan Statistical Areas (local) increased. The local unemployment rates at June 30, 2025 were 5.1% in market area north and 4.5% in market area south, respectively, an increase of 1.3 percentage points and 1.1 percentage points from the 3.8% and 3.4%, respectively, at December 31, 2024. The median home values in the Scranton-Wilkes-Barre-Hazleton metro and Allentown-Bethlehem-Easton metro each increased 5.5% and 3.1% from a year ago, according to Zillow, an online database advertising firm providing access to its real estate search engines to various media outlets, and values are expected to remain flat and grow 0.4%, respectively, in the next year. In light of these expectations, we expect home prices to stabilize with the potential of a declining rate environment at the same time. Management will continue to monitor the economic climate in our region and scrutinize growth prospects with credit quality as a principal consideration.
Previous wording
For the three months ended March 31, 2025, net income was $6.0 million, or $1.03 diluted earnings per share, an 18% increase, compared to $5.1 million, or $0.88 diluted earnings per share, for the three months ended March 31, 2024.
Current wording
For the six months ended June 30, 2025, net income was $12.9 million, or $2.23 diluted earnings per share, a 29% increase, compared to $10.0 million, or $1.73 diluted earnings per share, for the six months ended June 30, 2024.
Previous wording
As of March 31, 2025 and March 31, 2024, tangible common book value per share (non-GAAP) was $33.16 and $29.80(1), respectively. The increase in tangible book value was due primarily to an increase in retained earnings from net income. These non-GAAP measures should be reviewed in connection with the reconciliation of these non-GAAP ratios.
Current wording
As of June 30, 2025 and June 30, 2024, tangible common book value per share (non-GAAP) was $34.25 and $30.52(1), respectively. The increase in tangible book value was due primarily to an increase in retained earnings from net income. These non-GAAP measures should be reviewed in connection with the reconciliation of these non-GAAP ratios.
Previous wording
Net income for the quarter ended March 31, 2025 was $6.0 million, or $1.03 diluted earnings per share, compared to $5.1 million, or $0.88 diluted earnings per share, for the quarter ended March 31, 2024. The $0.9 million, or 18%, increase in net income resulted primarily from a $2.1 million increase in net interest income coupled with a $0.4 million increase in non-interest income. This was partially offset by a $0.9 million increase in non-interest expense, a $0.4 million increase in the provision for income tax, and a $0.3 million increase in the provision for credit losses on loans.
Current wording
Net income for the quarter ended June 30, 2025 was $6.9 million, or $1.20 diluted earnings per share, compared to $4.9 million, or $0.86 diluted earnings per share, for the quarter ended June 30, 2024. The $2.0 million, or 40%, increase in net income resulted primarily from a $2.8 million increase in net interest income coupled with a $0.8 million increase in non-interest income. This was partially offset by a $1.1 million increase in non-interest expense and a $0.6 million increase in the provision for income tax. In the year-to-date comparison, net income increased by $2.9 million to $12.9 million, or $2.23 diluted earnings per share, from $10.0 million, or $1.73 diluted earnings per share. The increase in net income stemmed from the $4.9 million increase in net interest income and $1.1 million increase in non-interest income. This was partially offset by a $2.0 million increase in non-interest expense and a $1.0 million increase in the provision for income tax.
Previous wording
Return on average assets (ROA) was 0.93% and 0.83% for the first quarters of 2025 and 2024, respectively. During the same time periods, return on average shareholders’ equity (ROE) was 11.66% and 10.71%, respectively. The increases in ROA and ROE were primarily the result of an increase in net income during the first quarter of 2025, compared to the same period of 2024. Pre-provision net revenue to average assets (non-GAAP) was 1.16% and 0.96% for the three months ended March 31, 2025 and 2024, respectively. The increase quarter-over-quarter was due to an increase in pre-provision net revenue in the first quarter of 2025.
Current wording
Return on average assets (ROA) was 1.04% and 0.81% for the second quarters of 2025 and 2024, respectively, and 0.98% and 0.82% for the six months ended June 30, 2025 and 2024, respectively. During the same time periods, return on average shareholders’ equity (ROE) was 13.02% and 10.44%, respectively, and 12.35% and 10.57%, respectively. The increases in ROA and ROE were primarily the result of an increase in net income during the second quarter of 2025 and year-to-date 2025, compared to the same periods of 2024. Pre-provision net revenue to average assets (non-GAAP) was 1.28% and 1.00% for the three months ended June 30, 2025 and 2024, respectively, and 1.22% and 0.98% for the six months ended June 30, 2025 and 2024, respectively. The increases were due to an increase in income before taxes quarter-over-quarter and year-over-year.
Previous wording
Net interest income was $17.0 million for the first quarter of 2025, a 14% increase over the $14.9 million earned for the first quarter of 2024. The $2.1 million increase in net interest income resulted from a $2.7 million increase in interest income primarily due to a $148.0 million increase in the average balance of interest-earning assets and a 21 basis point increase in fully-taxable equivalent ("FTE") yield. The loan portfolio had the most significant impact, producing a $2.5 million increase in FTE interest income from $116.4 million in higher quarterly average balances and an increase of 26 basis points in FTE loan yield. Partially offsetting the higher interest income, was a $0.6 million increase in interest expense due to a $124.3 million quarter-over-quarter increase in average interest-bearing liability balances. The increase was due to growth of $179.3 million in average interest-bearing deposit balances and a 6 basis point increase in the rates paid on interest-bearing deposits. This was partially offset by a decrease in interest expense on borrowings due to $53.9 million less in average short-term borrowings.
Current wording
Net interest income was $17.9 million for the second quarter of 2025, a 19% increase over the $15.1 million earned for the second quarter of 2024. The $2.8 million increase in net interest income resulted from the increase of $3.7 million in interest income primarily due to a $213.6 million increase in the average balance of interest-earning assets and a 19 basis point increase in fully-taxable equivalent ("FTE") (non-GAAP measurement) yield. The loan portfolio had the most significant impact, producing a $2.8 million increase in FTE interest income from $124.6 million in higher quarterly average balances and an increase of 24 basis points in FTE loan yield. Additionally, the Company experienced an increase of $1.1 million in interest earned from interest-bearing deposits with other financial institutions from $102.0 million in higher average balances. Slightly offsetting the higher interest income, there was a $0.9 million increase in interest expense due to a $178.8 million quarter-over-quarter increase in average interest-bearing liability balances. The increase was primarily contributed to growth of $208.3 million in average interest-bearing deposit balances. However, this deposit growth was partially offset by a $28.5 million decrease in average short-term borrowings.
Previous wording
The FTE yield on interest-earning assets was 4.73% for the first quarter of 2025, an increase of 21 basis points from the 4.52% for the first quarter of 2024. The overall cost of interest-bearing liabilities was 2.49% for the first quarter of 2025, a decrease of 2 basis points from the 2.51% for the first quarter of 2024. The cost of funds remained flat at 1.93% for both the first quarters of 2025 and 2024. The Company’s FTE (non-GAAP measurement) net interest spread was 2.24% for the first quarter of 2025, an increase of 23 basis points from the 2.01% recorded for the first quarter of 2024. FTE net interest margin increased to 2.89% for the three months ended March 31, 2025 from 2.69% for the same period of 2024 due to the increase in the loan and lease portfolio coupled with the continued re-investment of cash flow into more effective interest-earning assets.
Current wording
The FTE yield on interest-earning assets was 4.77% for the second quarter of 2025, an increase of 19 basis points from the 4.58% for the second quarter of 2024. The overall cost of interest-bearing liabilities was 2.52% for the second quarter of 2025, a decrease of 6 basis points from the 2.58% for the second quarter of 2024. The cost of funds decreased 1 basis point from 1.96% to 1.95% for the second quarters of 2024 and 2025, respectively. The Company’s FTE net interest spread was 2.25% for the second quarter of 2025, an increase of 25 basis points from 2.00% recorded for the second quarter of 2024. FTE net interest margin increased to 2.92% for the three months ended June 30, 2025 from 2.71% for the same period of 2024 primarily due to the growth in higher yielding taxable commercial loans.
Previous wording
For the remainder of 2025, the Company currently expects to operate in a moderately declining interest rate environment. Management is primarily reliant on the Federal Open Market Committee's (FOMC) statements and forecast. For the three months ended March 31, 2025, the FOMC did not adjust interest rates based on the uncertainty about inflation and the effects of newly introduced tariffs on the economy. The Blue Chip Financial Forecasts economic consensus expects between 50 to 75 basis points in rate cuts during 2025. For 2025, the Company currently maintains a loan pipeline which is expected to grow the loan portfolio funded by utilizing excess cash holdings and will plan to borrow in the event cash is depleted and there is not enough deposit growth to fund loan growth. The focus remains on enhancing margin by reallocating cash flow to focus growth on specific assets, being proactive with loan pricing and managing deposit costs to maintain a reasonable spread.
Current wording
For the remainder of 2025, the Company currently expects to operate in a moderately declining interest rate environment. Management is primarily reliant on the Federal Open Market Committee's (FOMC) statements and forecast. For the six months ended June 30, 2025, the FOMC did not adjust interest rates based on the uncertainty about inflation and the effects of newly introduced tariffs on the economy. The current Blue Chip Financial Forecasts economic consensus anticipates two 25 basis points in rate cuts during the second half of 2025. Currently, the Company maintains a loan pipeline which is expected to grow the loan portfolio funded by utilizing excess cash holdings and will plan to borrow in the event cash is depleted and there is not enough deposit growth to fund loan growth. The focus remains on enhancing margin by reallocating cash flow to focus growth on specific assets, being proactive with loan pricing and managing deposit costs to maintain a reasonable spread.
Previous wording
The Company’s cost of interest-bearing liabilities was 2.49% for the three months ended March 31, 2025, compared to 2.51% for the same 2024 period. The reduction in average short-term borrowings contributed to the lower cost of interest-bearing liabilities.
Current wording
The Company’s cost of interest-bearing liabilities was 2.52% and 2.51% for the three and six months ended June 30, 2025, respectively, compared to 2.58% and 2.54% for the same 2024 periods. The reduction in average short-term borrowings contributed to the lower cost of interest-bearing liabilities.
Previous wording
The table below sets forth a comparison of average balances of assets and liabilities and their related net tax equivalent yields and rates for the periods indicated. Within the table, interest income was FTE adjusted, using the corporate federal tax rate of 21% for March 31, 2025 and 2024 to recognize the income from tax-exempt interest-earning assets as if the interest was taxable. See “Non-GAAP Financial Measures” within this management’s discussion and analysis for the FTE adjustments. This treatment allows a uniform comparison among yields on interest-earning assets. Loans include loans held-for-sale (HFS) and non-accrual loans but exclude the allowance for credit losses. Home equity lines of credit (HELOC) are included in the residential real estate category since they are secured by real estate. Net deferred loan cost amortization of $0.2 million and $0.2 million during the first quarter of 2025 and 2024, respectively, are included in interest income from loans. Merchants Bank of Bangor and Landmark Community Bank loan fair value purchase accounting adjustments of $0.4 million and $0.5 million are included in interest income from loans and less than $1 thousand and $1 thousand reduced interest expense on deposits and borrowings for the three months ended March 31, 2025 and 2024. Average balances are based on amortized cost and do not reflect net unrealized gains or losses. Residual values for direct finance leases are included in the average balances for consumer loans.
Current wording
The table below sets forth a comparison of average balances of assets and liabilities and their related net tax equivalent yields and rates for the periods indicated. Within the table, interest income was FTE adjusted, using the corporate federal tax rate of 21% for June 30, 2025 and 2024 to recognize the income from tax-exempt interest-earning assets as if the interest was taxable. See “Non-GAAP Financial Measures” within this management’s discussion and analysis for the FTE adjustments. This treatment allows a uniform comparison among yields on interest-earning assets. Loans include loans held-for-sale (HFS) and non-accrual loans but exclude the allowance for credit losses. Home equity lines of credit (HELOC) are included in the residential real estate category since they are secured by real estate. Net deferred loan cost amortization of $0.2 million and $0.2 million during the second quarters of 2025 and 2024, respectively, and $0.4 million and $0.4 million during the six months ended June 30, 2025 and 2024, respectively, are included in interest income from loans. Merchants Bank of Bangor and Landmark Community Bank loan fair value purchase accounting adjustments of $0.3 million and $0.4 million are included in interest income from loans and $1 thousand and $1 thousand reduced interest expense on deposits and borrowings for the three months ended June 30, 2025 and 2024. Merchants Bank of Bangor and Landmark Community Bank loan fair value purchase accounting adjustments of $0.6 million and $0.9 million are included in interest income from loans and $2 thousand and $5 thousand reduced interest expense on deposits and borrowings for the six months ended June 30, 2025 and 2024. Average balances are based on amortized cost and do not reflect net unrealized gains or losses. Residual values for direct finance leases are included in the average balances for consumer loans.
Previous wording
For the three months ended March 31, 2025, the provision for credit losses on loans was $455 thousand partially offset by a $85 thousand net benefit in the provision for unfunded commitments, compared to a $125 thousand provision for credit losses on loans and a $50 thousand net benefit in the provision for credit losses on unfunded loan commitments for the three months ended March 31, 2024.
Current wording
For the three months ended June 30, 2025, the provision for credit losses on loans was $300 thousand and the provision for unfunded commitments was $20 thousand compared to a $275 thousand provision for credit losses on loans and a $140 thousand provision for credit losses on unfunded loan commitments for the three months ended June 30, 2024.
Previous wording
For the three months ended March 31, 2025, the increase in the provision for credit losses on loans compared to the prior year period was due to higher loan growth and higher net charge-offs. For the three months ended March 31, 2025, the higher net benefit for credit losses on unfunded commitments was due to a larger reduction in unfunded commitments during the quarter compared to the same period in 2024.
Current wording
For the three months ended June 30, 2025, the increase in the provision for credit losses on loans compared to the prior year period was due to $155 thousand in higher net charge-offs and a higher average total loan balance compared to the same period in 2024. For the three months ended June 30, 2025, the decrease in the provision for unfunded commitments was due to lower levels of unfunded commitments during the quarter due to increased utilization, specifically commercial construction commitments, compared to the year earlier period.
Previous wording
The provision for credit losses derives from the reserve required from the allowance for credit losses calculation. The Company continued provisioning for three months ended March 31, 2025 to maintain an allowance level that management deemed adequate.
Current wording
The provision for credit losses derives from the reserve required from the allowance for credit losses calculation. The Company continued provisioning for six months ended June 30, 2025 to maintain an allowance level that management deemed adequate.
Previous wording
Total non-interest income increased $0.4 million, or 9%, to $5.0 million for the first quarter of 2025 compared to $4.6 million for the first quarter of 2024. The increase in non-interest income was attributed to $0.2 million in wealth management fees and $0.1 million in interchange fees. Additionally, during the first quarter of 2025, gains of $0.5 million on the sale of a commercial loan and $0.3 million from the sale of a property were offset by $0.8 million in losses recognized on the sale of securities.
Current wording
Total non-interest income for the six months ended June 30, 2025 was $10.3 million, an increase of $1.1 million, or 12%, from $9.2 million for the six months ended June 30, 2024. The increase was primarily due to $0.3 million higher fees from trust fiduciary activities. The Company also had $0.2 million more non-interest income resulting from an increase in interchange fees, a $0.2 million BOLI death benefit, and an increase of $0.2 million in service charges on loans primarily from commercial loans. During the first half of 2025, gains of $0.5 million on the sale of a commercial loan and $0.3 million from the sale of a property were offset by $0.8 million in losses recognized on the sale of securities.
Previous wording
Non-interest expenses increased $0.9 million, or 6%, for the first quarter of 2025 to $14.6 million from $13.7 million for the same quarter of 2024. Salaries and benefits expense increased $0.6 million due to an increase in the number of bankers, group insurance costs, and banker incentives in the first quarter of 2025. Additionally, the Company saw an increase of $0.3 million in advertising and marketing expenses primarily due to an increase in Neighborhood Assistance Program donations from which the Company recognized $0.2 million in additional tax credits causing a corresponding decrease in PA shares tax expense.
Current wording
Non-interest expenses increased to $29.3 million for the six months ended June 30, 2025, an increase of $2.0 million, or 7%, from $27.3 million for the six months ended June 30, 2024. Salaries and benefits expense increased $1.3 million due to an increase in the number of bankers, group insurance costs, and banker incentives in the first half of 2025, compared to the same period in 2024. Additionally, the Company experienced an increase of $0.5 million in advertising and marketing expenses primarily due to a $0.3 million increase in Neighborhood Assistance Program donations from which the Company recognized $0.2 million in additional tax credits causing a corresponding decrease in PA shares tax expense. There was also an increase of $0.5 million in premises and equipment expense primarily due to higher costs for software licenses, subscriptions, and maintenance. The increases were partially offset by $0.3 million less in professional services expense.
Previous wording
The provision for income taxes increased $0.4 million during the three months ended March 31, 2025 compared to the same period in 2024 primarily due to a $1.3 million increase in income before taxes and $0.1 million less in tax credits. The Company's effective tax rate was 15.4% at March 31, 2025 compared to 12.1% at March 31, 2024. The difference between the effective rate and the enacted statutory corporate rate of 21% is due mostly to the effect of tax-exempt income in relation to the level of pre-tax income.
Current wording
The provision for income taxes increased $0.6 million during the three months ended June 30, 2025 compared to the same period in 2024 primarily due to a $2.6 million increase in income before taxes. The provision for income taxes increased $1.0 million during the six months ended June 30, 2025 compared to the same period in 2024 primarily due to a $3.9 million increase in income before taxes and $0.2 million less in tax credits. The Company's effective tax rate was 15.8% at June 30, 2025 compared to 12.7% at June 30, 2024. The difference between the effective rate and the enacted statutory corporate rate of 21% is due mostly to the effect of tax-exempt income in relation to the level of pre-tax income.
Previous wording
The Company’s total assets had a balance of $2.7 billion as of March 31, 2025, an increase of $126.7 million from December 31, 2024. The increase resulted from $127.8 million in growth in cash and cash equivalents during the three months ended March 31, 2025. The loans and leases portfolio increased $16.3 million during the same period of 2025. Asset growth was offset by a decrease of $16.7 million in the investment portfolio. Deposit growth of $116.6 million was used to fund the loan portfolio with the remaining balances held in cash.
Current wording
The Company’s total assets had a balance of $2.7 billion as of June 30, 2025, an increase of $114.0 million from December 31, 2024. The increase resulted from $82.1 million in growth in cash and cash equivalents as of June 30, 2025. The loans and leases portfolio increased $37.9 million during the same period of 2025. Asset growth was offset by a decrease of $11.4 million in the investment portfolio. Deposit growth of $94.5 million was used to fund the loan portfolio with the remaining balances held in cash.
Previous wording
At the time of purchase, management classifies investment securities into one of three categories: trading, available-for-sale (AFS) or held-to-maturity (HTM). To date, management has not purchased any securities for trading purposes. Some of the securities the Company purchases are classified as AFS even though there is no immediate intent to sell them. The AFS designation affords management the flexibility to sell securities and position the balance sheet in response to capital levels, liquidity needs or changes in market conditions. Debt securities designated as AFS are carried at fair value on the consolidated balance sheets with unrealized gains and losses, net of deferred income taxes, reported within shareholders’ equity as a component of accumulated other comprehensive income (AOCI). Securities designated as HTM are carried at amortized cost and represent debt securities that the Company has the ability and intent to hold until maturity. For the three months ended March 31, 2025, AOCI improved by $3.6 million primarily due to the change in fair value of the Company's investment securities.
Current wording
At the time of purchase, management classifies investment securities into one of three categories: trading, available-for-sale (AFS) or held-to-maturity (HTM). To date, management has not purchased any securities for trading purposes. Some of the securities the Company purchases are classified as AFS even though there is no immediate intent to sell them. The AFS designation affords management the flexibility to sell securities and position the balance sheet in response to capital levels, liquidity needs or changes in market conditions. Debt securities designated as AFS are carried at fair value on the consolidated balance sheets with unrealized gains and losses, net of deferred income taxes, reported within shareholders’ equity as a component of accumulated other comprehensive income (AOCI). Securities designated as HTM are carried at amortized cost and represent debt securities that the Company has the ability and intent to hold until maturity. For the six months ended June 30, 2025, AOCI improved by $4.9 million primarily due to the change in fair value of the Company's investment securities.
Previous wording
As of March 31, 2025, the carrying value of held-to-maturity securities was $226.2 million, net of $13.4 million in remaining transferred discount.
Current wording
As of June 30, 2025, the carrying value of held-to-maturity securities was $226.5 million, net of $12.9 million in remaining transferred discount.
Previous wording
During September 2023, the Company entered into a $100 million interest rate swap with a third-party financial institution to limit the risk to the investment portfolio of rising interest rates. The interest rate swap was designated as a fair value hedge and utilized a pay fixed interest rate swap to hedge the change in fair value attributable to the movement in the Secured Overnight Financing Rate ("SOFR"). The Company designated $50 million of the swap's notional balance as a hedge against the closed portfolio of 20-year mortgage-backed securities and $50 million as a hedge against the closed portfolio of tax-free municipal bonds. As of March 31, 2025, the Company recorded the fair value of the swap of $1.2 million in accrued interest payable and other liabilities on the consolidated balance sheet offset by a $1.2 million increase to the carrying value of designated investment securities.
Current wording
During September 2023, the Company entered into a $100 million interest rate swap with a third-party financial institution to limit the risk to the investment portfolio of rising interest rates. The interest rate swap was designated as a fair value hedge and utilized a pay fixed interest rate swap to hedge the change in fair value attributable to the movement in the Secured Overnight Financing Rate ("SOFR"). The Company designated $50 million of the swap's notional balance as a hedge against the closed portfolio of 20-year mortgage-backed securities and $50 million as a hedge against the closed portfolio of tax-free municipal bonds. As of June 30, 2025, the Company recorded the fair value of the swap of $1.1 million in accrued interest payable and other liabilities on the consolidated balance sheet offset by a $1.1 million increase to the carrying value of designated investment securities.
Previous wording
As of March 31, 2025, the carrying value of investment securities amounted to $541.0 million, or 20% of total assets, compared to $557.2 million, or 22% of total assets, as of December 31, 2024. On March 31, 2025, 34% of the carrying value of the investment portfolio was comprised of U.S. Government Sponsored Enterprise residential mortgage-backed securities (MBS – GSE residential or mortgage-backed securities) that amortize and provide monthly cash flow that the Company can use for reinvestment, loan demand, unexpected deposit outflow, facility expansion or operations. The mortgage-backed securities portfolio includes only pass-through bonds issued by Fannie Mae, Freddie Mac and the Government National Mortgage Association (GNMA).
Current wording
As of June 30, 2025, the carrying value of investment securities amounted to $545.8 million, or 20% of total assets, compared to $557.2 million, or 22% of total assets, as of December 31, 2024. On June 30, 2025, 35% of the carrying value of the investment portfolio was comprised of U.S. Government Sponsored Enterprise residential mortgage-backed securities (MBS – GSE residential or mortgage-backed securities) that amortize and provide monthly cash flow that the Company can use for reinvestment, loan demand, unexpected deposit outflow, facility expansion or operations. The mortgage-backed securities portfolio includes only pass-through bonds issued by Fannie Mae, Freddie Mac and the Government National Mortgage Association (GNMA).
Previous wording
The Company’s municipal (obligations of states and political subdivisions) portfolio is comprised of tax-free municipal bonds with a carrying value of $176.8 million ($170.1 million including the remaining net unrealized loss transferred on HTM securities) and taxable municipal bonds with a carrying value of $83.1 million ($77.9 million including the remaining net unrealized loss transferred on HTM securities). The overall credit ratings of these municipal bonds were as follows: 36% AAA, 62% AA, and 1% A. For municipal securities HTM, the Company utilized a third-party model to analyze whether a credit loss reserve is needed for these bonds. The amount of the credit loss reserve calculated was immaterial because of the underlying strong credit quality of the municipal portfolio.
Current wording
The Company’s municipal (obligations of states and political subdivisions) portfolio is comprised of tax-free municipal bonds with a carrying value of $191.1 million ($167.8 million including the remaining net unrealized loss transferred on HTM securities) and taxable municipal bonds with a carrying value of $85.0 million ($78.2 million including the remaining net unrealized loss transferred on HTM securities). The overall credit ratings of these municipal bonds were as follows: 36% AAA, 62% AA, and 1% A. For municipal securities HTM, the Company utilized a third-party model to analyze whether a credit loss reserve is needed for these bonds. The amount of the credit loss reserve calculated was immaterial because of the underlying strong credit quality of the municipal portfolio.
Previous wording
During the first three months of 2025, the carrying value of total investments decreased $16.3 million, or 3%. The decline was primarily due to a sale of $17.5 million in available-for-sale securities and $5.2 million in paydowns partially offset by $4.6 million in purchases of securities. The Company attempts to maintain a well-diversified and proportionate investment portfolio that is structured to complement the strategic direction of the Company. Its growth typically supplements the lending activities but also considers the current and forecasted economic conditions, the Company’s liquidity needs and interest rate risk profile, to the extent possible.
Current wording
During the first half of 2025, the carrying value of total investments decreased $11.4 million, or 2%. The decline was primarily due to the sale of $17.5 million in available-for-sale securities and $11.3 million in paydowns partially offset by $14.7 million in purchases of securities. The Company attempts to maintain a well-diversified and proportionate investment portfolio that is structured to complement the strategic direction of the Company. Its growth typically supplements the lending activities but also considers the current and forecasted economic conditions, the Company’s liquidity needs and interest rate risk profile, to the extent possible.
Previous wording
The AFS securities were recorded with a net unrealized loss of $48.9 million and a net unrealized loss of $52.8 million as of March 31, 2025 and December 31, 2024, respectively. Of the $3.9 million net improvement; $5.1 million was attributable to mortgage-backed securities and $0.5 million was attributable to agency securities. This improvement was offset by a $1.7 million decrease to municipal securities. The direction and magnitude of the change in value of the Company’s investment portfolio is attributable to the direction and magnitude of the change in interest rates along the treasury yield curve. Generally, the values of debt securities move in the opposite direction of the changes in interest rates. As interest rates along the treasury yield curve rise, especially at the intermediate and long end, the values of debt securities tend to decline. Whether or not the value of the Company’s investment portfolio will change above or below its amortized cost will be largely dependent on the direction and magnitude of interest rate movements and the duration of the debt securities within the Company’s investment portfolio. Management does not consider the reduction in value attributable to changes in credit quality. Correspondingly, when interest rates decline, the market values of the Company’s debt securities portfolio could be subject to market value increases.
Current wording
The AFS securities were recorded with a net unrealized loss of $47.8 million and a net unrealized loss of $52.8 million as of June 30, 2025 and December 31, 2024, respectively. Of the $5.0 million net improvement; $7.5 million was attributable to mortgage-backed securities and $0.8 million was attributable to agency securities. This improvement was offset by a $3.3 million decrease to municipal securities. The direction and magnitude of the change in value of the Company’s investment portfolio is attributable to the direction and magnitude of the change in interest rates along the treasury yield curve. Generally, the values of debt securities move in the opposite direction of the changes in interest rates. As interest rates along the treasury yield curve rise, especially at the intermediate and long end, the values of debt securities tend to decline. Whether or not the value of the Company’s investment portfolio will change above or below its amortized cost will be largely dependent on the direction and magnitude of interest rate movements and the duration of the debt securities within the Company’s investment portfolio. Management does not consider the reduction in value attributable to changes in credit quality. Correspondingly, when interest rates decline, the market values of the Company’s debt securities portfolio could be subject to market value increases.
Previous wording
As of March 31, 2025, the Company had $292.7 million in public deposits, or 12% of total deposits. Pennsylvania state law requires the Company to maintain pledged securities on public and trust deposits or otherwise obtain a FHLB letter of credit or FDIC insurance for these customers. The Company also pledges securities for derivative instruments and certain borrowed funds. As of March 31, 2025, the balance of pledged securities required was $335.9 million, or 62% of total securities.
Current wording
As of June 30, 2025, the Company had $276.3 million in public deposits, or 11% of total deposits. Pennsylvania state law requires the Company to maintain pledged securities on public and trust deposits or otherwise obtain a FHLB letter of credit or FDIC insurance for these customers. The Company also pledges securities for derivative instruments and certain borrowed funds. As of June 30, 2025, the balance of pledged securities required was $319.4 million, or 59% of total securities.
Previous wording
Quarterly, management performs a review of the investment portfolio to determine the causes of declines in the fair value of each security. The Company uses inputs provided by independent third parties to determine the fair value of its investment securities portfolio. Inputs provided by the third parties are reviewed and corroborated by management. Evaluations of the causes of the unrealized losses are performed to determine whether credit losses on debt securities exist. Considerations such as the Company’s intent and ability to hold the securities until or sell prior to maturity, recoverability of the invested amounts over the intended holding period, the length of time and the severity in pricing decline below cost, the interest rate environment, the receipt of amounts contractually due and whether or not there is an active market for the securities, for example, are applied, along with an analysis of the financial condition of the issuer for management to make a realistic judgment of the probability that the Company will be unable to collect all amounts (principal and interest) due in determining whether a security has credit losses. If a decline in value is deemed to be a credit loss, a contra-asset is recorded on both HTM and AFS securities, limited by the amount that the fair value is less than the amortized cost basis. During the three months ended March 31, 2025, the Company did not incur any credit losses on debt securities from its investment securities portfolio.
Current wording
Quarterly, management performs a review of the investment portfolio to determine the causes of declines in the fair value of each security. The Company uses inputs provided by independent third parties to determine the fair value of its investment securities portfolio. Inputs provided by the third parties are reviewed and corroborated by management. Evaluations of the causes of the unrealized losses are performed to determine whether credit losses on debt securities exist. Considerations such as the Company’s intent and ability to hold the securities until or sell prior to maturity, recoverability of the invested amounts over the intended holding period, the length of time and the severity in pricing decline below cost, the interest rate environment, the receipt of amounts contractually due and whether or not there is an active market for the securities, for example, are applied, along with an analysis of the financial condition of the issuer for management to make a realistic judgment of the probability that the Company will be unable to collect all amounts (principal and interest) due in determining whether a security has credit losses. If a decline in value is deemed to be a credit loss, a contra-asset is recorded on both HTM and AFS securities, limited by the amount that the fair value is less than the amortized cost basis. During the six months ended June 30, 2025, the Company did not incur any credit losses on debt securities from its investment securities portfolio.
Previous wording
During the first quarter of 2025, the Company sold nineteen available-for-sale securities with the intention of replacing the holdings with better yielding bonds. The Company recognized a loss of $0.8 million as the amortized cost was $17.5 million compared to the sales proceeds of $16.7 million. This sale was due to the ongoing management strategy of improving margin and focusing on more effective interest earning assets.
Current wording
During the first half of 2025, the Company sold nineteen available-for-sale securities with the intention of replacing the holdings with better yielding bonds. The Company recognized a loss of $0.8 million as the amortized cost was $17.5 million compared to the sales proceeds of $16.7 million. This sale was due to the ongoing management strategy of improving margin and focusing on more effective interest earning assets.
Previous wording
Investment in Federal Home Loan Bank (FHLB) stock is required for membership in the organization and is carried at cost since there is no market value available. The amount the Company is required to invest is dependent upon the relative size of outstanding borrowings the Company has with the FHLB of Pittsburgh. Excess stock is repurchased from the Company at par if the amount of borrowings decline to a predetermined level. In addition, the Company earns a return or dividend based on the amount invested. The balance in FHLB stock was $3.9 million and $3.9 million as of March 31, 2025 and December 31, 2024, respectively. The dividends received from the FHLB totaled $77 thousand and $73 thousand for the three months ended March 31, 2025 and 2024, respectively. Atlantic Community Bankers Bank (ACBB) stock totaled $82 thousand as of March 31, 2025 and December 31, 2024.
Current wording
Investment in FHLB stock is required for membership in the organization and is carried at cost since there is no market value available. The amount the Company is required to invest is dependent upon the relative size of outstanding borrowings the Company has with the FHLB. Excess stock is repurchased from the Company at par if the amount of borrowings decline to a predetermined level. In addition, the Company earns a return or dividend based on the amount invested. The balance in FHLB stock was $4.2 million and $3.9 million as of June 30, 2025 and December 31, 2024, respectively. The dividends received from the FHLB totaled $152 thousand and $148 thousand for the six months ended June 30, 2025 and 2024, respectively. Atlantic Community Bankers Bank (ACBB) stock totaled $82 thousand as of June 30, 2025 and December 31, 2024.
Previous wording
As of March 31, 2025 and December 31, 2024, loans HFS consisted of residential mortgages with carrying amounts of $2.0 million and $2.1 million, respectively, which approximated their fair values. During the three months ended March 31, 2025, residential mortgage loans with principal balances of $12.5 million were sold into the secondary market and the Company recognized net gains of $0.2 million, compared to $10.8 million and $0.2 million, respectively, during the three months ended March 31, 2024.
Current wording
As of June 30, 2025 and December 31, 2024, loans HFS consisted of residential mortgages with carrying amounts of $0.5 million and $2.1 million, respectively, which approximated their fair values. During the six months ended June 30, 2025, residential mortgage loans with principal balances of $32.0 million were sold into the secondary market and the Company recognized net gains of $0.5 million, compared to $25.5 million and $0.5 million, respectively, during the six months ended June 30, 2024.
Previous wording
The Company retains mortgage servicing rights (MSRs) on loans sold into the secondary market. MSRs are retained so that the Company can foster relationships. At March 31, 2025 and December 31, 2024, the servicing portfolio balance of sold residential mortgage loans was $498.0 million and $495.4 million, respectively, with mortgage servicing rights of $1.3 million and $1.3 million for the same periods, respectively. Additionally, during the first quarter of 2025, the Company sold a commercial loan with a principal balance of $1.3 million and recognized a net gain of $0.5 million.
Current wording
The Company retains mortgage servicing rights (MSRs) on loans sold into the secondary market. MSRs are retained so that the Company can foster relationships. At June 30, 2025 and December 31, 2024, the servicing portfolio balance of sold residential mortgage loans was $506.1 million and $495.4 million, respectively, with mortgage servicing rights of $1.3 million and $1.3 million for the same periods, respectively. Additionally, during the first half of 2025, the Company sold a commercial loan with a principal balance of $1.3 million and recognized a net gain of $0.5 million.
Previous wording
As of March 31, 2025, the Company had gross loans and leases totaling $1.8 billion, an increase of $17 million, or 1%, compared to $1.8 billion at December 31, 2024.
Current wording
As of June 30, 2025, the Company had gross loans and leases totaling $1.8 billion, an increase of $37.9 million, or 2%, compared to $1.8 billion at December 31, 2024.
Previous wording
During the three months ended March 31, 2025, the growth in the portfolio was attributed to a $24.9 million increase in the commercial portfolio primarily due to the origination of two municipal loans to two unrelated borrowers totaling $8.3 million; an origination to a single commercial real estate owner occupied borrower totaling $9.4 million; and general portfolio growth. The Company also experienced a $2.2 million increase in the residential portfolio, which was offset by the $10.6 million reduction in the consumer portfolio attributed to a strategic reduction in the auto portfolio.
Current wording
During the six months ended June 30, 2025, the growth in the portfolio was attributed to a $48.5 million increase in the commercial portfolio primarily due to the origination of three commercial real estate owner occupied loans to two borrowers totaling $19.0 million; a single origination totaling $4.7 million to a commercial real estate non owner occupied borrower; $22.0 million in advances on existing commercial construction commitments; and general portfolio growth. The Company also experienced a $3.7 million increase in the residential portfolio, which was offset by the $14.2 million reduction in the consumer portfolio attributed to a strategic reduction in the auto portfolio.
Previous wording
As of March 31, 2025, the commercial portfolio increased by $24.9 million, or 2%, to $1.0 billion compared to the December 31, 2024 balance of $1.0 billion. The increase was due to growth of $10.0 million in commercial and industrial loans and growth of $14.9 million in commercial real estate loans.
Current wording
As of June 30, 2025, the commercial portfolio increased by $48.5 million, or 5%, to $1.1 billion compared to the December 31, 2024 balance of $1.0 billion. The increase was due to growth of $49.7 million in commercial real estate loans partially offset by a $1.2 million reduction in commercial and industrial loans.
Previous wording
For the three months ended March 31, 2025, commercial and industrial (non-municipal) loans increased $1.7 million, or 1%, from $172.8 million at December 31, 2024 to $174.5 million at March 31, 2025, which was due to originations and advances outpacing scheduled payments and curtailments.
Current wording
For the six months ended June 30, 2025, commercial and industrial (non-municipal) loans increased $5.1 million, or 3%, from $172.8 million at December 31, 2024 to $177.9 million at June 30, 2025, which was due to originations and advances outpacing scheduled payments and curtailments.
Previous wording
For the three months ended March 31, 2025, municipal loans increased $8.3 million, or 8%, from $101.7 million at December 31, 2024, to $110.0 million at March 31, 2025 which was attributed to the origination of two municipal loans to two unrelated borrowers totaling $8.3 million.
Current wording
For the six months ended June 30, 2025, municipal loans decreased $6.3 million, or 6%, from $101.7 million at December 31, 2024, to $95.4 million at June 30, 2025 which was attributed to the payoff of a $7.0 million loan during the second quarter.
Previous wording
For the three months ended March 31, 2025, owner occupied commercial real estate loans increased $11.5 million, or 4%, from $304.9 million on December 31, 2024, to $316.4 million at March 31, 2025, due to an origination to a single commercial real estate owner occupied borrower totaling $9.4 million and general portfolio growth.
Current wording
For the six months ended June 30, 2025, owner occupied commercial real estate loans increased $22.5 million, or 7%, from $304.9 million on December 31, 2024, to $327.4 million at June 30, 2025, due to an origination to a single commercial real estate owner occupied borrower totaling $9.4 million during the first quarter, the origination of two loans to a single commercial real estate owner occupied borrower totaling $9.7 million during the second quarter, and general portfolio growth.
Previous wording
For the three months ended March 31, 2025, non-owner occupied commercial real estate loans increased $7.6 million, or 2%, from $394.2 million on December 31, 2024, to $401.8 million on March 31, 2025 due to general portfolio growth and construction loans that stabilized and were converted to non-owner occupied commercial real estate during the quarter.
Current wording
For the six months ended June 30, 2025, non-owner occupied commercial real estate loans increased $13.9 million, or 4%, from $394.2 million on December 31, 2024, to $408.1 million on June 30, 2025 due to an origination to a single commercial real estate non owner occupied borrower totaling $4.7 million during the second quarter, an $8.7 million construction loan that stabilized and was converted to non-owner occupied commercial real estate during the first quarter, and general portfolio growth.
Showing the first 40 of 76 pairs. Open the source sections for the rest.
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Current report — wording carried from elsewhere
(1) See non-GAAP financial measurements reconciliation on page 35.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
three months ended March 31, 2025 and 2024