FIRST COMMUNITY CORP /SC/
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
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.
Sep 30, 2025 · Filed Nov 7, 2025
FCCO$32.92+1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001552781-25-000253
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001552781-25-000402
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 144 previous paragraphs and 152 current paragraphs.
75 unchanged; 61 reworded; 14 added; 8 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 79 previous and 79 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
*FDIC Assessment Changes.*In 2025, the FDIC proposed and, in some cases, implemented changes to the assessment base and methodology for deposit insurance premiums. These changes are intended to ensure the continued strength of the Deposit Insurance Fund and to reflect evolving risk profiles in the banking industry. While our FDIC assessment expense declined modestly during the period, we are closely monitoring ongoing regulatory developments and proposals that could impact the calculation or level of future assessments. Any material changes to the FDIC assessment framework could affect our cost of funds and overall operating expenses.
Current report
Community Reinvestment Act (CRA) Developments.** **Federal banking regulators have proposed rescinding the 2023 CRA modernization rule and reinstating the prior 1995 framework, with certain technical updates. If finalized, this rollback could affect how we assess and report our CRA activities and obligations in our markets. We are actively monitoring the rulemaking process and will evaluate and implement any required changes to our CRA compliance program to ensure continued alignment with regulatory expectations.
Current report
Other non-interest income increased $75,000 to $1.2 million during the three months ended September 30, 2025 from $1.2 million during the same period in 2024. The $75,000 increase was primarily due to a $25,000 increase in ATM debit card income and a $39,000 increase in rental income.
Current report
Effective May 5, 2023, we entered into a pay-fixed swap agreement with an initial notional amount of $150.0 million ($136.6 million as of September 30, 2025), designated as a fair value hedge for fixed rate loans held for investment. The swap converts these loans to a synthetic floating SOFR rate, with the company paying a fixed 3.58% and receiving overnight SOFR through maturity on May 5, 2026. This interest rate swap positively impacted interest on loans by $852,000 during the nine months ended September 30, 2025, compared to a positive impact of interest on loans of $2.0 million during the nine months ended September 30, 2024. Loan yields and net interest margin both benefited from this interest rate swap during the nine months ended September 30, 2025 with an increase of nine basis points and six basis points, respectively. Loan yields and net interest margin both benefited during the nine months ended September 30, 2024 with an increase of 24 basis points and 15 basis points, respectively.
Current report
During the second quarter of 2025, we purchased four fixed rate agency mortgage-backed security (MBS) bonds totaling $20.0 million with a purchase yield of 4.78% and entered into a $19.8 million ($18.7 million as of September 30, 2025) amortizing notional amount pay-fixed/receive-floating interest rate swap, which was designated as a fair value hedge. This transaction was part of a hedging strategy which converts these fixed rate agency MBS bonds to synthetic floaters. The company pays a fixed rate of 3.67% and receives USD-SOFR-OIS Compound.
Current report
The following table shows the components of non-interest income for the nine-month periods ended September 30, 2025 and September 30, 2024.
Current report
The maximum anticipated negative impacts of the modeled changes in net interest income were within policy limits at September 30, 2025 and December 31, 2024.
Current report
Except for the down 400 basis point scenario, the maximum anticipated negative impacts of the modeled changes in PVE were within policy limits at September 30, 2025 and December 31, 2024. We are monitoring the risk posed by the down 400 basis point scenario.
Current report
The regulatory capital framework applicable to U.S. banking organizations is based on the Basel III capital standards, as implemented by the federal banking agencies and subsequently amended from time to time. These rules establish minimum risk-based and leverage capital requirements, define the components of regulatory capital, and include a capital conservation buffer. Although our Company qualifies as a “small bank holding company” under the Federal Reserve’s Small Bank Holding Company and Savings and Loan Holding Company Policy Statement, and therefore is not subject to consolidated capital requirements at the holding company level, our Bank remains subject to these capital standards.
Current report
Under the current capital rules, the Bank is required to maintain the following minimum capital ratios:
Current report
Banking organizations that do not maintain capital ratios above the minimum required levels, inclusive of the capital conservation buffer, may be subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses. The Bank continues to maintain capital levels in excess of all minimum required ratios.
Current report
Effective January 1, 2023, we adopted the Current Expected Credit Losses (“CECL”) methodology for estimating the allowance for credit losses. Upon adoption, we did not elect the regulatory capital transition option, and the day-one reduction to retained earnings and regulatory capital was reflected in our capital ratios as of that date.
Current report
The federal banking agencies have also implemented a simplified measure of capital adequacy for qualifying community banking organizations known as the Community Bank Leverage Ratio (“CBLR”) framework. Depository institutions and their holding companies with less than $10 billion in total consolidated assets that meet certain other qualifying criteria and maintain a leverage ratio greater than 9% may elect to use the CBLR framework. Institutions that opt into the CBLR framework and maintain a qualifying leverage ratio are considered to have satisfied the generally applicable risk-based and leverage capital requirements under the Basel III rules and are deemed “well capitalized” for prompt corrective action purposes. We continue to evaluate annually whether to elect into the CBLR framework but currently report under the traditional risk-based capital approach.
Current report
In July 2023, the federal banking agencies jointly issued a notice of proposed rulemaking commonly referred to as the “Basel III Endgame,” which would revise the capital framework for large and complex banking organizations, including changes to the calculation of risk-weighted assets and capital requirements for credit, market, and operational risk. The proposal has not yet been finalized as of the date of this filing, and the agencies are expected to issue a revised proposal or final rule in the future. The proposed rule is primarily applicable to large institutions exceeding specified asset and foreign-exposure thresholds and would not directly apply to institutions of our size. We continue to monitor the rulemaking process and evaluate any potential indirect impacts on our capital planning and regulatory compliance.
Removed paragraphs (8)
Previous report
At June 30, 2025, Signature Bank had approximately $266.0 million in total assets, $205.9 million in total loans, and $206.0 million in total deposits. The closing of the transactions contemplated by the merger is subject to the satisfaction of customary closing conditions, including regulatory approvals and the approvals of our shareholders and Signature Bank’ shareholders. The combined bank is projected to have approximately $2.3 billion in total assets, $1.5 billion in total loans, and $2.0 billion in total deposits.
Previous report
The following table shows the components of non-interest income for the six-month periods ended June 30, 2025 and June 30, 2024.
Previous report
During the second 12-month period after 100 basis point, 200 basis point, 300 basis point, and 400 basis point simultaneous and parallel increases in interest rates along the entire yield curve, our net interest income is projected to decline 1.76%, 4.64%, 8.44%, and 12.41%, respectively, at June 30, 2025, and decline 2.04%, 4.96%, 8.75%, and 12.70%, respectively, at December 31, 2024. During the second 12-month period after 100 basis point, 200 basis point, 300 basis point, and 400 basis point simultaneous and parallel reduction in interest rates along the entire yield curve, our net interest income is projected to increase 1.44%, 1.97%, and decline 0.52%, and 3.78%, respectively, at June 30, 2025, and to increase 1.80%, 2.91%, and 1.46%, and decline 1.75%, respectively, at December 31, 2024.
Previous report
Regulatory capital rules known as the Basel III rules or Basel III, impose minimum capital requirements for bank holding companies and banks. Basel III was released in the form of enforceable regulations by each of the applicable federal bank regulatory agencies. Basel III is applicable to all banking organizations that are subject to minimum capital requirements, including federal and state banks and savings and loan associations, as well as to bank and savings and loan holding companies, other than “small bank holding companies.” A small bank holding company is generally a qualifying bank holding company or savings and loan holding company with less than $3.0 billion in consolidated assets. More stringent requirements are imposed on “advanced approaches” banking organizations-generally those organizations with $250 billion or more in total consolidated assets or $10.0 billion or more in total foreign exposures.
Previous report
Based on the foregoing, as a small bank holding company, we are generally not subject to the capital requirements at the holding company level unless otherwise advised by the Federal Reserve; however, our Bank remains subject to the capital requirements. Accordingly, the Bank is required to maintain the following capital levels:
Previous report
Basel III also established a “capital conservation buffer” above the regulatory minimum capital requirements, which must consist entirely of Common Equity Tier 1 capital, which was phased in over several years. The fully phased-in capital conservation buffer of 2.5%, which became effective on January 1, 2019, resulted in the following effective minimum capital ratios for the Bank beginning in 2019: (i) a Common Equity Tier 1 capital ratio of 7.0%, (ii) a Tier 1 capital ratio of 8.5%, and (iii) a total capital ratio of 10.5%. Under Basel III, institutions are subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if their capital levels fall below the buffer amount. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions.
Previous report
On December 21, 2018, the federal banking agencies issued a joint final rule to revise their regulatory capital rules to (i) address the upcoming implementation of a new credit impairment model, the CECL model; (ii) provide an optional three-year phase-in period for the day-one adverse regulatory capital effects that banking organizations are expected to experience upon adopting CECL; and (iii) require the use of CECL in stress tests beginning with the 2023 capital planning and stress testing cycle for certain banking organizations that are subject to stress testing. As part of its response to the impact of the COVID-19 pandemic, in the first quarter of 2020, U.S. federal regulatory authorities issued an interim final rule that provided banking organizations that adopted the CECL during the 2020 calendar year with the option to delay for two years the estimated impact of CECL on regulatory capital relative to regulatory capital determined under the prior incurred loss methodology, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided during the initial two-year delay (i.e., a five-year transition in total). In connection with our adoption of CECL on January 1, 2023, we did not elect to utilize the three-year phase-in period for the day-one adverse regulatory capital effects or the five-year CECL transition.
Previous report
In November 2019, the federal banking regulators published final rules implementing a simplified measure of capital adequacy for certain banking organizations that have less than $10.0 billion in total consolidated assets. Under the final rules, which went into effect on January 1, 2020, depository institutions and depository institution holding companies that have less than $10.0 billion in total consolidated assets and meet other qualifying criteria, including a leverage ratio of greater than 9%, off-balance-sheet exposures of 25% or less of total consolidated assets, and trading assets plus trading liabilities of 5% or less of total consolidated assets, are deemed “qualifying community banking organizations” and are eligible to opt into the “community bank leverage ratio framework.” A qualifying community banking organization that elects to use the community bank leverage ratio framework and that maintains a leverage ratio of greater than 9% is considered to have satisfied the generally applicable risk-based and leverage capital requirements under the Basel III rules and, if applicable, is considered to have met the “well capitalized” ratio requirements for purposes of its primary federal regulator’s prompt corrective action rules, discussed below. We do not have any immediate plans to elect to use the community bank leverage ratio framework but may make such an election in the future.
Reworded paragraphs (61)
Previous wording
The following discussion describes our results of operations for the three and six months ended June 30, 2025 as compared to the three and six months ended June 30, 2024 and analyzes our financial condition as of June 30, 2025 as compared to December 31, 2024. Like most community banks, we derive most of our income from interest we receive on our loans and investments. Our primary sources of funds for making these loans and investments are our deposits and borrowings, on which we pay interest. Consequently, one of the key measures of our success is our amount of net interest income, or the difference between the income on our interest-earning assets, such as loans and investments, and the expense on our interest-bearing liabilities, such as deposits and borrowings. Another key measure is the spread between the yield we earn on our interest-earning assets and the rate we pay on our interest-bearing liabilities. There are risks inherent in all loans, so we maintain an allowance for credit losses to absorb our estimate of expected credit losses on existing loans that may become uncollectible. We establish and maintain this allowance by recording a provision for or release of credit losses against our earnings. In the following section, we have included a detailed discussion of this process.
Current wording
The following discussion describes our results of operations for the three and nine months ended September 30, 2025 as compared to the three and nine months ended September 30, 2024 and analyzes our financial condition as of September 30, 2025 as compared to December 31, 2024. Like most community banks, we derive most of our income from interest we receive on our loans and investments. Our primary sources of funds for making these loans and investments are our deposits and borrowings, on which we pay interest. Consequently, one of the key measures of our success is our amount of net interest income, or the difference between the income on our interest-earning assets, such as loans and investments, and the expense on our interest-bearing liabilities, such as deposits and borrowings. Another key measure is the spread between the yield we earn on our interest-earning assets and the rate we pay on our interest-bearing liabilities. There are risks inherent in all loans, so we maintain an allowance for credit losses to absorb our estimate of expected credit losses on existing loans that may become uncollectible. We establish and maintain this allowance by recording a provision for or release of credit losses against our earnings. In the following section, we have included a detailed discussion of this process.
Previous wording
Recent Tax Legislation. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. The OBBBA extends or makes permanent a number of provisions originally enacted in the 2017 Tax Cuts and Jobs Act and introduces new items affecting both individuals and businesses. Topic 740,Income Taxes, of the FASB Accounting Standards Codification requires the effects of newly enacted tax law to be recognized in the period of enactment. Because enactment occurred after the quarter-end date of June 30, 2025, we are evaluating OBBBA’s impact on our deferred tax assets and liabilities, effective tax rate, and tax-related processes (e.g., payroll reporting for qualifying wage items). Based on preliminary analysis, we do not currently expect the OBBBA to have a material impact on our 2025 estimated annual effective tax rate or on our consolidated financial statements, but our evaluation is ongoing.
Current wording
Recent Tax Legislation. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. The OBBBA extends or makes permanent a number of provisions originally enacted in the 2017 Tax Cuts and Jobs Act and introduces new items affecting both individuals and businesses. Topic 740,Income Taxes, of the FASB Accounting Standards Codification requires the effects of newly enacted tax law to be recognized in the period of enactment. We are continuing to evaluate OBBBA’s impact on our deferred tax assets and liabilities, effective tax rate, and tax-related processes (e.g., payroll reporting for qualifying wage items). Based on preliminary analysis, we do not currently expect the OBBBA to have a material impact on our 2025 estimated annual effective tax rate or on our consolidated financial statements, but our evaluation is ongoing.
Previous wording
On July 13, 2025, we entered into merger agreement with Signature Bank, which provides that, subject to the terms and conditions set forth in the merger agreement, Signature Bank will merge with and into First Community Bank, with First Community Bank continuing as the surviving entity following the merger.
Current wording
On July 13, 2025, we entered into a merger agreement with Signature Bank, which provides that, subject to the terms and conditions set forth in the merger agreement, Signature Bank will merge with and into First Community Bank, with First Community Bank continuing as the surviving entity following the merger.
Previous wording
Additional details regarding the pending merger and related risks will be provided in our registration statement on Form S-4 to be filed with the SEC.
Current wording
Additional details regarding the pending merger and related risks are provided in our registration statement on Form S-4 filed with the SEC.
Previous wording
Our net income for the three months ended June 30, 2025 increased $1.9 million to $5.2 million, or $0.67 diluted earnings per common share, as compared to $3.3 million, or $0.42 diluted earnings per common share, for the three months ended June 30, 2024. The $1.9 million increase in net income between the two periods is primarily due to a $2.6 million increase in net interest income, a $691,000 decline in provision for credit losses, and a $564,000 increase in total non-interest income, partially offset by a $1.2 million increase in total non-interest expense and a $724,000 increase in income tax expense.
Current wording
Our net income for the three months ended September 30, 2025 increased $1.3 million to $5.2 million, or $0.67 diluted earnings per common share, as compared to $3.9 million, or $0.50 diluted earnings per common share, for the three months ended September 30, 2024. The increase in net income between the two periods is primarily due to a $2.6 million increase in net interest income and an $899,000 increase in non-interest income, partially offset by a $217,000 increase in provision for credit losses, a $1.7 million increase in total non-interest expense, and a $250,000 increase in income tax expense.
Previous wording
Net interest income increased $2.6 million, or 20.7%, to $15.3 million for the three months ended June 30, 2025 from $12.7 million for the three months ended June 30, 2024. Our net interest margin improved 0.27% to 3.19% during the three months ended June 30, 2025 compared to 2.92% during the three months ended June 30, 2024. Our net interest margin, on a taxable equivalent basis, was 3.21% for the three months ended June 30, 2025 compared to 2.93% for the three months ended June 30, 2024. Average earning assets were $1.9 billion for the three months ended June 30, 2025 and $1.7 billion in the same period of 2024.
Current wording
Net interest income increased $2.6 million, or 19.3%, to $16.0 million for the three months ended September 30, 2025 from $13.4 million for the three months ended September 30, 2024. Our net interest margin improved 0.31% to 3.26% during the three months ended September 30, 2025 compared to 2.95% during the three months ended September 30, 2024. Our net interest margin, on a taxable equivalent basis, was 3.27% for the three months ended September 30, 2025 compared to 2.96% for the three months ended September 30, 2024. Average earning assets were $1.9 billion for the three months ended September 30, 2025 and $1.8 billion in the same period of 2024.
Previous wording
Average loans increased $84.7 million, or 7.2%, to $1.3 billion for the three months ended June 30, 2025 from $1.2 billion for the same period in 2024. Our loan (including loans held-for-sale) to deposit ratio on average during the three months ended June 30, 2025 was 72.7%, as compared to 75.1% during same period in 2024. The yield on loans increased 0.17% to 5.77% during the three months ended June 30, 2025 from 5.60% during the same period in 2024 due to higher rates on new and renewed loans during the period compared to interest rates on loans maturing during the period.
Current wording
Average loans increased $80.7 million, or 6.7%, to $1.3 billion for the three months ended September 30, 2025 from $1.2 billion for the same period in 2024. Our loan (including loans held-for-sale) to deposit ratio on average during the three months ended September 30, 2025 was 73.0%, as compared to 74.0% during same period in 2024. The yield on loans increased 0.11% to 5.84% during the three months ended September 30, 2025 from 5.73% during the same period in 2024 due to higher rates on new and renewed loans during the period compared to interest rates on loans maturing during the period.
Previous wording
Average securities for the three months ended June 30, 2025 increased $14.3 million, or 2.9%, to $505.5 million from $491.2 million during the same period in 2024. Short-term investments and CDs increased $75.9 million to $155.9 million during the three months ended June 30, 2025 from $80.0 million during the same period in 2024. The increase in short-term investments was due to our decision to hold excess liquidity in interest bearing deposits at the Federal Reserve Bank. The yield on our securities portfolio declined to 3.43% for the three months ended June 30, 2025 from 3.66% for the same period in 2024. The yield on our short-term investments declined to 4.32% for the three months ended June 30, 2025 from 5.32%.
Current wording
Average securities for the three months ended September 30, 2025 increased $16.5 million, or 3.4%, to $504.1 million from $487.6 million during the same period in 2024. Interest-bearing deposits in other banks and fed funds sold increased $41.4 million to $159.4 million during the three months ended September 30, 2025 from $118.0 million during the same period in 2024. The increase in interest-bearing deposits in other banks and fed funds sold was due to our decision to hold excess liquidity in interest bearing deposits at the Federal Reserve Bank. The yield on our securities portfolio declined to 3.41% for the three months ended September 30, 2025 from 3.53% for the same period in 2024. The yield on our interest-bearing deposits in other banks and fed funds sold was 4.26% for the three months ended September 30, 2025 compared to 5.23% during the same period in 2024. There were no interest-bearing deposits in other banks and fed funds sold during the three months ended September 30, 2024.
Previous wording
The yields on earning assets for the three months ended June 30, 2025 and 2024 were 5.04% and 5.04%, respectively.
Current wording
The yields on earning assets for the three months ended September 30, 2025 and 2024 were 5.08% and 5.10%, respectively.
Previous wording
The cost of interest-bearing liabilities was 2.57% during the six months ended June 30, 2025 compared to 2.91% during the same period in 2024. The cost of deposits, including demand deposits, was 1.84% during the six months ended June 30, 2025 compared to 1.94% during the same period in 2024. The cost of funds, including demand deposits, was 1.92% during the six months ended June 30, 2025 compared to 2.17% during the same period in 2024. We continue to focus on growing our pure deposits (demand deposits, interest-bearing transaction accounts, savings deposits, money market accounts, and IRAs) plus customer cash management repurchase agreements as these accounts tend to be low-cost funding and assist us in controlling our overall cost of funds. During the six months ended June 30, 2025, pure deposits plus customer cash management repurchase agreements averaged 83.0% of total deposits plus customer cash management repurchase agreements as compared to 83.5% during the same period of 2024. This reduction is related to a higher rate of growth in our certificates of deposit compared to pure deposits due to the higher interest rate environment and strong loan growth. The growth in certificates of deposit is related to customer certificates of deposit. We began issuing brokered certificates of deposit during the third quarter of 2024 to supplement our funding mix. As of June 30, 2025, we had $10.4 million in brokered certificates of deposit with initial terms of 18 months and maturity of July 31, 2025. We had $10.4 million and $42.9 million in brokered certificates of deposit at December 31, 2024 and at June 30, 2024, respectively.
Current wording
The cost of interest-bearing liabilities was 2.53% during the three months ended September 30, 2025 compared to 2.96% during the same period in 2024. The cost of deposits, including demand deposits, was 1.81% during the three months ended September 30, 2025 compared to 2.03% during the same period in 2024. The cost of funds, including demand deposits, was 1.89% during the three months ended September 30, 2025 compared to 2.21% during the same period in 2024. This decline was driven by a decrease in the market interest rates for deposits during the period. We continue to focus on growing our pure deposits (demand deposits, interest-bearing transaction accounts, savings deposits, money market accounts, and IRAs) plus customer cash management repurchase agreements as these accounts tend to be low-cost funding and assist us in controlling our overall cost of funds. We had $1.6 billion, $1.5 billion, and $1.4 billion in pure deposits plus customer cash management repurchase agreements at September 30, 2025, December 31, 2024 and September 30, 2024, respectively. As of September 30, 2025, we had no brokered certificates of deposit. We had $10.4 million and $22.4 million in brokered certificates of deposit at December 31, 2024 and at September 30, 2024, respectively.
Previous wording
Non-interest income during the three months ended June 30, 2025 increased $564,000 to $4.2 million from $3.6 million during the same period in 2024. The $564,000 increase in non-interest income was primarily related to increases of $220,000 in mortgage banking income, $243,000 in investment advisory fees and non-deposit commissions, and $127,000 in gain on sale of other real estate owned.
Current wording
Non-interest income during the three months ended September 30, 2025 increased $899,000 to $4.5 million from $3.6 million during the same period in 2024. The $899,000 increase in non-interest income was primarily related to increases of $359,000 in mortgage banking income, $267,000 in investment advisory fees and non-deposit commissions, $188,000 in other non-recurring income, and $75,000 in other non-interest income.
Previous wording
Mortgage banking income increased $220,000 to $879,000 during the three months ended June 30, 2025 from $659,000 during the same period in 2024. Total production in the mortgage line of business in the three months ended June 30, 2025 was $62.9 million, which was comprised of $31.9 million in secondary market loans, $5.7 million in adjustable rate mortgages (ARMs), and $25.3 million in commitments for new construction residential real estate loans. Fee revenue from the mortgage line of business was $879,000 for the three months ended June 30, 2025, which includes $873,000 associated with the secondary market loans with a gain-on-sale margin of 2.74%. This compares to production year-over-year of $49.0 million which was comprised of $22.7 million in secondary market loans, $14.6 million in ARMs, and $11.7 million in commitments for new construction residential real estate loans during the three months ended June 30, 2024. Fee revenue from the mortgage line of business was $659,000, which includes $655,000 associated with the secondary market loans with a gain-on-sale margin of 2.89% during the three months ended June 30, 2024.
Current wording
Mortgage banking income increased $359,000 to $934,000 during the three months ended September 30, 2025 from $575,000 during the same period in 2024. Total production in the mortgage line of business in the three months ended September 30, 2025 was $51.6 million, which was comprised of $32.0 million in secondary market loans, $4.2 million in adjustable rate mortgages (ARMs), and $15.4 million in commitments for new construction residential real estate loans. Fee revenue from the mortgage line of business was $934,000 for the three months ended September 30, 2025, which includes $931,000 associated with the secondary market loans with a gain-on-sale margin of 2.91%. This compares to production year-over-year of $38.1 million which was comprised of $19.5 million in secondary market loans, $8.7 million in ARMs, and $9.9 million in commitments for new construction residential real estate loans during the three months ended September 30, 2024. Fee revenue from the mortgage line of business was $575,000, which includes $571,000 associated with the secondary market loans with a gain-on-sale margin of 2.92% during the three months ended September 30, 2024.
Previous wording
Investment advisory fees rose $243,000 to $1.8 million during the three months ended June 30, 2025 from $1.5 million during the same period in 2024. Total assets under management increased to $1.0 billion at June 30, 2025 compared to $926.0 million at December 31, 2024 and increased compared to $865.6 million at June 30, 2024. Our net new assets under management were $20.7 million during the three months ended June 30, 2025. Furthermore, our investment performance for the three months ended June 30, 2025 was 10.9% compared to 10.6% for the S&P 500. Our customers’ assets under management are allocated across a range of asset classes, including equities, bonds, and cash.
Current wording
Investment advisory fees rose $267,000 to $1.9 million during the three months ended September 30, 2025 from $1.6 million during the same period in 2024. Total assets under management increased to $1.1 billion at September 30, 2025 compared to $926.0 million at December 31, 2024 and $901.6 million at September 30, 2024. Our net new assets under management were $12.0 million during the three months ended September 30, 2025. Furthermore, our investment performance for the three months ended September 30, 2025 was 7.9% compared to 7.8% for the S&P 500. Our customers’ assets under management are allocated across a range of asset classes, including equities, bonds, and cash.
Previous wording
Gain on sale of other real estate owned was $127,000 during the three months ended June 30, 2025, compared to zero during the three months ended June 30, 2024.
Current wording
Other non-recurring income increased $188,000 to $188,000 during the three months ended September 30, 2025 compared to zero during the same period of 2024 due to a $176,000 gain on an investment in a fintech fund focused on financial services and a $12,000 gain on insurance proceeds.
Previous wording
Non-interest expense increased $1.2 million during the three months ended June 30, 2025 to $13.1 million compared to $11.8 million during the same period in 2024. The increase in non-interest expense is primarily due to increases of $757,000 in salaries and employee benefits, $73,000 in equipment, and $434,000 in other non-interest expense, partially offset by decreases of $50,000 in marketing and public relations expense and $28,000 in FDIC insurance assessment expense.
Current wording
Non-interest expense increased $1.7 million during the three months ended September 30, 2025 to $13.7 million compared to $12.0 million during the same period in 2024. The increase in non-interest expense is primarily due to increases of $637,000 in salaries and employee benefits, $80,000 in marketing and public relations, $117,000 in core banking and electronic processing and services, $113,000 in software subscriptions and services, $73,000 in ATM debit card processing, $115,000 in legal and professional fees and $575,000 in merger expenses, partially offset by decreases of $39,000 in telephone expense and $36,000 in shareholder expense.
Previous wording
We incurred income tax expense of $1.5 million and $774,000 for the three months ended June 30, 2025 and 2024, respectively. Our effective tax rate was 22.4% and 19.2% for the three months ended June 30, 2025 and 2024, respectively. The increase in the effective tax rate was due to a non-recurring adjustment of $249,000 during the three months ended June 30, 2024.
Current wording
We incurred income tax expense of $1.4 million and $1.1 million for the three months ended September 30, 2025 and 2024, respectively. Our effective tax rate was 21.2% and 22.9% for the three months ended September 30, 2025 and 2024, respectively. The decrease in the effective tax rate was due to a non-recurring adjustment of $120,000 due to tax credits purchased during the three months ended September 30, 2025.
Previous wording
Comparison of Results of Operations for the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
Current wording
Comparison of Results of Operations for the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024
Previous wording
Our net income for the six months ended June 30, 2025 increased $3.3 million to $9.2 million, or $1.18 diluted earnings per common share, from $5.9 million, or $0.76 diluted earnings per common share for the six months ended June 30, 2024. The increase in net income between the two periods is primarily due to an increase of $4.9 million in net interest income, a decline of $383,000 in provision for credit losses, and an increase of $1.4 million in total non-interest income, partially offset by an increase of $2.2 million in total non-interest expense and an increase of $1.2 million in income tax expense.
Current wording
Our net income for the nine months ended September 30, 2025 increased $4.7 million to $14.4 million, or $1.85 diluted earnings per common share, from $9.7 million, or $1.26 diluted earnings per common share for the nine months ended September 30, 2024. The increase in net income between the two periods is primarily due to an increase of $7.5 million in net interest income, a decline of $166,000 in provision for credit losses, and an increase of $2.3 million in total non-interest income, partially offset by an increase of $3.9 million in total non-interest expense and an increase of $1.4 million in income tax expense.
Previous wording
Net interest income increased $4.9 million to $29.7 million for the six months ended June 30, 2025 from $24.8 million for the six months ended June 30, 2024. Our net interest margin increased by 0.31% to 3.16% during the six months ended June 30, 2025 from 2.85% during the six months ended June 30, 2024. Our net interest margin, on a taxable equivalent basis, was 3.17% for the six months ended June 30, 2025 compared to 2.86% for the six months ended June 30, 2024. Average earning assets increased $150.6 million, or 8.6%, to $1.9 billion for the six months ended June 30, 2025 compared to $1.7 billion in the same period of 2024.
Current wording
Net interest income increased $7.5 million to $45.7 million for the nine months ended September 30, 2025 from $38.2 million for the nine months ended September 30, 2024. Our net interest margin increased by 0.30% to 3.19% during the nine months ended September 30, 2025 from 2.89% during the nine months ended September 30, 2024. Our net interest margin, on a taxable equivalent basis, was 3.20% for the nine months ended September 30, 2025 compared to 2.89% for the nine months ended September 30, 2024. Average earning assets increased $146.6 million, or 8.3%, to $1.9 billion for the nine months ended September 30, 2025 compared to $1.8 billion in the same period of 2024.
Previous wording
Average loans increased $87.4 million, or 7.5%, to $1.3 billion for the six months ended June 30, 2025 from $1.2 billion for the same period in 2024. Our loan (including loans held-for-sale) to deposit ratio on average during the six months ended June 30, 2025 was 73.4%, as compared to 75.3% during the same period in 2024. Our average growth in loans during the six months ended June 30, 2025 from the same period in 2024 of $87.4 million was exceeded our increase in deposits of $157.9 million during the same period. The yield on loans increased 0.22% to 5.74% during the six months ended June 30, 2025 from 5.52% during the same period in 2024 due to higher new and renewed loan rates compared to rates on loans maturing during the period.
Current wording
Average loans increased $85.2 million, or 7.2%, to $1.3 billion for the nine months ended September 30, 2025 from $1.2 billion for the same period in 2024. Our loan (including loans held-for-sale) to deposit ratio on average during the nine months ended September 30, 2025 was 73.3%, as compared to 74.9% during the same period in 2024. The yield on loans increased 0.19% to 5.78% during the nine months ended September 30, 2025 from 5.59% during the same period in 2024 due to higher new and renewed loan rates compared to rates on loans maturing during the period.
Previous wording
Average securities for the six months ended June 30, 2025 increased $3.6 million, or 0.7%, to $498.9 million from $495.3 million during the same period in 2024. The increase in securities was due to the purchase of $20 million dollars in securities as part of the previously discussed investment hedge, partially offset by normal principal cash flows from the securities portfolio. Short-term investments increased $59.6 million to $148.3 million during the six months ended June 30, 2025 from $88.7 million during the same period in 2024. The increase in short-term investments was due to our decision to hold excess liquidity in interest bearing deposits at the Federal Reserve Bank. The yield on our securities portfolio declined to 3.42% for the six months ended June 30, 2025 from 3.66% for the same period in 2024. The yield on our short-term investments decreased to 4.31% for the six months ended June 30, 2025 from 5.03% for the same period in 2024 due to lower market interest rates.
Current wording
Average securities for the nine months ended September 30, 2025 increased $7.9 million, or 1.6%, to $500.6 million from $492.7 million during the same period in 2024. The increase in securities was due to the purchase of $20.0 million dollars in securities as part of the previously discussed investment hedge, partially offset by normal principal cash flows from the securities portfolio. Interest-bearing deposits in other banks and fed funds sold increased $53.5 million to $152.0 million during the nine months ended September 30, 2025 from $98.5 million during the same period in 2024. The increase in interest-bearing deposits in other banks and fed funds sold was due to our decision to hold excess liquidity in interest bearing deposits at the Federal Reserve Bank. The yield on our securities portfolio declined to 3.42% for the nine months ended September 30, 2025 from 3.62% for the same period in 2024. The yield on our interest-bearing deposits in other banks and fed funds sold decreased to 4.29% for the nine months ended September 30, 2025 from 5.11% for the same period in 2024 due to lower market interest rates.
Previous wording
The yields on earning assets for the six months ended June 30, 2025 and 2024 were 5.02% and 4.97%, respectively.
Current wording
The yields on earning assets for the nine months ended September 30, 2025 and 2024 were 5.04% and 5.01%, respectively.
Previous wording
The cost of interest-bearing liabilities was 2.56% during the three months ended June 30, 2025 compared to 2.94% during the same period in 2024. The cost of deposits, including demand deposits, was 1.82% during the three months ended June 30, 2025 compared to 1.98% during the same period in 2024. The cost of funds, including demand deposits, was 1.91% during the three months ended June 30, 2025 compared to 2.17% during the same period in 2024. We continue to focus on growing our pure deposits (demand deposits, interest-bearing transaction accounts, savings deposits, money market accounts, and IRAs) plus customer cash management repurchase agreements as these accounts tend to be low-cost funding and assist us in controlling our overall cost of funds. Average pure deposits plus customer cash management repurchase agreements increased $173.9 million, or 12.8%, to $1.5 billion during the three months ended June 30, 2025 from $1.4 billion during the same period in 2024. During the three months ended June 30, 2025, pure deposits plus customer cash management repurchase agreements averaged 82.9% of total deposits plus customer cash management repurchase agreements as compared to 82.9% during the same period of 2024. As of June 30, 2025, we had $10.4 million in brokered certificates of deposit with an initial term of 18 months and maturity of July 31, 2025. We had $10.4 million and $42.9 million in brokered certificates of deposit at December 31, 2024 and at June 30, 2024, respectively.
Current wording
The cost of interest-bearing liabilities was 2.56% during the nine months ended September 30, 2025 compared to 2.92% during the same period in 2024. The cost of deposits, including demand deposits, was 1.83% during the nine months ended September 30, 2025 compared to 1.97% during the same period in 2024. The cost of funds, including demand deposits, was 1.91% during the nine months ended September 30, 2025 compared to 2.18% during the same period in 2024. The decline in the cost of funds was due to a decline in market interest rates during the period. We continue to focus on growing our pure deposits (demand deposits, interest-bearing transaction accounts, savings deposits, money market accounts, and IRAs) plus customer cash management repurchase agreements as these accounts tend to be low-cost funding and assist us in controlling our overall cost of funds. We had $1.6 billion , $1.5 billion , and $1.4 billion in pure deposits plus customer cash management repurchase agreements at September 30, 2025, December 31, 2024 and September 30, 2024, respectively. As of September 30, 2025, we had no brokered certificates of deposit. We had $10.4 million and $22.4 million in brokered certificates of deposit at December 31, 2024 and at September 30, 2024, respectively.
Previous wording
Non-interest income during the six months ended June 30, 2025 increased $1.4 million to $8.2 million from $6.8 million during the same period in 2024. The increase in non-interest income was primarily related to increases in mortgage banking income, investment advisory fees and non-deposit commissions, ATM debit card income, rental income, and gain on sale of other real estate owned, partially offset by declines in deposit service charges.
Current wording
Non-interest income during the nine months ended September 30, 2025 increased $2.3 million to $12.7 million from $10.4 million during the same period in 2024. The increase in non-interest income was primarily related to increases in mortgage banking income, investment advisory fees and non-deposit commissions, ATM debit card income, rental income, gain on sale of other real estate owned, and non-recurring income, partially offset by declines in deposit service charges.
Previous wording
Deposit service charges declined $49,000 to $445,000 during the six months ended June 30, 2025 from $494,000 during the same period in 2024 due to lower NSF/OD fees.
Current wording
Deposit service charges declined $34,000 to $688,000 during the nine months ended September 30, 2025 from $722,000 during the same period in 2024 due to lower NSF/OD fees.
Previous wording
Mortgage banking income increased by $554,000 to $1.6 million during the six months ended June 30, 2025 from $1.1 million during the same period in 2024. Secondary mortgage production during the six months ended June 30, 2025 was $57.7 million compared to $35.7 million during the same period in 2024 while the gain on sale margin declined to 2.83% during the six months ended June 30, 2025 from 3.00% during the same period in 2024.
Current wording
Mortgage banking income increased by $913,000 to $2.6 million during the nine months ended September 30, 2025 from $1.7 million during the same period in 2024. Secondary mortgage production during the nine months ended September 30, 2025 was $89.7 million compared to $55.3 million during the same period in 2024 while the gain on sale margin declined to 2.86% during the nine months ended September 30, 2025 from 2.97% during the same period in 2024.
Previous wording
Investment advisory fees and non-deposit commissions increased $691,000 to $3.6 million during the six months ended June 30, 2025 from $2.9 million during the same period in 2024. Total assets under management increased to $1.0 billion at June 30, 2025 compared to $926.0 million at December 31, 2024 and $865.6 million at June 30, 2024. Our net new assets were $42.2 million during the six months ended June 30, 2025. Furthermore, our investment performance for the six-month period from December 31, 2024 to June 30, 2025 was 4.6% compared to 5.5% for the S&P 500. Our customers’ assets under management are allocated across a range of asset classes, including equities, bonds, and cash.
Current wording
Investment advisory fees and non-deposit commissions increased $958,000 to $5.4 million during the nine months ended September 30, 2025 from $4.5 million during the same period in 2024. Total assets under management increased to $1.1 billion at September 30, 2025 compared to $926.0 million at December 31, 2024 and $901.6 million at September 30, 2024. Our net new assets were $54.2 million during the nine months ended September 30, 2025. Furthermore, our investment performance for the nine-month period from December 31, 2024 to September 30, 2025 was 13.2% compared to 13.7% for the S&P 500. Our customers’ assets under management are allocated across a range of asset classes, including equities, bonds, and cash.
Previous wording
Gain on sale of other real estate owned increased $127,000 to $127,000 during the six months ended June 30, 2025 from zero during the same period in 2024 due to a sale of other real estate owned during the six months ended June 30, 2025.
Current wording
Gain on sale of other real estate owned increased $122,000 to $127,000 during the nine months ended September 30, 2025 from $5,000 during the same period in 2024 due to a sale of other real estate owned during the nine months ended September 30, 2025.
Previous wording
Other non-interest income decreased $15,000 to $1.2 million during the three months ended June 30, 2025 from $1.2 million during the same period in 2024. The $15,000 decrease was primarily due to a decrease of $95,000 in other non-recurring income, partially offset by an increase of $50,000 in ATM debit card income. Non-recurring income of $95,000 during the six months ended June 30, 2024 is related to a gain on insurance proceeds of $101,000 partially offset by a loss on disposition of assets on the closing of our downtown Augusta, Georgia banking office of $6,000.
Current wording
Non-recurring income increased $93,000 to $188,000 during the nine months ended September 30, 2025 from $95,000 during the same period in 2024 due to a gain on an investment in a fintech fund focused on financial services. The $188.000 in non-recurring income during the nine months ended September 30, 2025 was due to a $176,000 gain on an investment in a fintech fund focused on financial services and a $12,000 gain on insurance proceeds. Non-recurring income of $95,000 during the same period in the prior year is related to gain on insurance proceeds of $101,000, partially offset by a loss on disposition of assets on the closing of our downtown Augusta, Georgia banking office of $6,000.
Previous wording
Non-interest expense increased $2.2 million during the six months ended June 30, 2025 to $25.8 million compared to $23.6 million during the same period in 2024. This increase is primarily due to an increase of $1.3 million in salaries and employee benefits, an increase of $133,000 in equipment, and an increase of $809,000 in other non-interest expense, partially offset by a decrease of $102,000 in marketing and public relations expense.
Current wording
Non-interest expense increased $3.9 million during the nine months ended September 30, 2025 to $39.5 million compared to $35.6 million during the same period in 2024. This increase is primarily due to an increase of $2.0 million in salaries and employee benefits, $119,000 in equipment, $21,000 in other real estate expense, net, $809,000 in merger expenses, and $985,000 in other non-interest expense, partially offset by a decrease of $22,000 in marketing and public relations, and a decrease of $10,000 in FDIC assessments.
Previous wording
The following table shows the components of non-interest expense for the six-month periods ended June 30, 2025 and June 30, 2024.
Current wording
The following table shows the components of non-interest expense for the nine-month periods ended September 30, 2025 and September 30, 2024.
Previous wording
We incurred income tax expense of $2.7 million and $1.5 million for the six months ended June 30, 2025 and 2024, respectively. Our effective tax rate was 22.60% and 20.42% for the six months ended June 30, 2025 and 2024, respectively. The increase in the effective tax rate was primarily due to a $149,000 non-recurring reduction to income tax expense during the six months ended June 30, 2024.
Current wording
We incurred income tax expense of $4.1 million and $2.7 million for the nine months ended September 30, 2025 and 2024, respectively. Our effective tax rate was 22.10% and 21.42% for the nine months ended September 30, 2025 and 2024, respectively. Income tax expense includes a $120,000 and a $149,000 non-recurring reduction to income tax expense due to a purchase of tax credits during the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
We have a significant portion of our loan portfolio with real estate as the underlying collateral. As of June 30, 2025 and December 31, 2024, approximately 91.3% and 91.4%, respectively, of the loan portfolio had real estate collateral. When loans, whether commercial or personal, are granted, they are based on the borrower’s ability to generate repayment cash flows from income sources sufficient to service the debt. Real estate is generally taken to reinforce the likelihood of the ultimate repayment and as a secondary source of repayment. We work closely with all our borrowers that experience cash flow or other economic problems, and we believe that we have the appropriate processes in place to monitor and identify problem credits. There can be no assurance that charge-offs of loans in future periods will not exceed the allowance for credit losses as estimated at any point in time or that provisions for credit losses will not be significant to a particular accounting period. The allowance for credit losses is also subject to examination and testing for adequacy by regulatory agencies, which may consider such factors as the methodology used to determine adequacy for credit losses and the size of the allowance relative to that of peer institutions. Such regulatory agencies could require us to adjust our allowance for credit losses based on information available to them at the time of their examination.
Current wording
We have a significant portion of our loan portfolio with real estate as the underlying collateral. As of September 30, 2025 and December 31, 2024, approximately 91.6% and 91.4%, respectively, of the loan portfolio had real estate collateral. When loans, whether commercial or personal, are granted, they are based on the borrower’s ability to generate repayment cash flows from income sources sufficient to service the debt. Real estate is generally taken to reinforce the likelihood of the ultimate repayment and as a secondary source of repayment. We work closely with all our borrowers that experience cash flow or other economic problems, and we believe that we have the appropriate processes in place to monitor and identify problem credits. There can be no assurance that charge-offs of loans in future periods will not exceed the allowance for credit losses as estimated at any point in time or that provisions for credit losses will not be significant to a particular accounting period. The allowance for credit losses is also subject to examination and testing for adequacy by regulatory agencies, which may consider such factors as the methodology used to determine adequacy for credit losses and the size of the allowance relative to that of peer institutions. Such regulatory agencies could require us to adjust our allowance for credit losses based on information available to them at the time of their examination.
Previous wording
The non-performing asset ratio was 0.02% of total assets with the nominal level of $469,000 in non-performing assets at June 30, 2025 compared to 0.04% and $810,000 at December 31, 2024. Non-accrual loans decreased to $210,000 at June 30, 2025 from $219,000 at December 31, 2024. We had two accruing loans past due 90 days or more totaling $66,000 at June 30, 2025 compared to $48,000 at December 31, 2024. Loans past due 30 days or more represented 0.02% of the loan portfolio at June 30, 2025 compared to 0.05% at December 31, 2024. The ratio of classified loans plus OREO and repossessed assets declined to 0.82% of total bank regulatory risk-based capital at June 30, 2025 from 1.06% at December 31, 2024.
Current wording
The non-performing asset ratio was 0.04% of total assets with the nominal level of $881,000 in non-performing assets at September 30, 2025 compared to 0.04% and $810,000 at December 31, 2024. Non-accrual loans decreased to $205,000 at September 30, 2025 from $219,000 at December 31, 2024. We had one accruing loan past due 90 days or more totaling $482,000 at September 30, 2025 compared to $48,000 at December 31, 2024. Loans past due 30 days or more represented 0.07% of the loan portfolio at September 30, 2025 compared to 0.05% at December 31, 2024. The ratio of classified loans plus OREO and repossessed assets declined to 0.80% of total bank regulatory risk-based capital at September 30, 2025 from 1.06% at December 31, 2024.
Previous wording
During the six months ended June 30, 2025, we experienced net loan recoveries of $19,000 (charge-offs of $3,000 less recoveries of $22,000) and net overdraft charge-offs of $18,000 (charge-offs of $28,000 and recoveries of $10,000). In comparison, we experienced net loan recoveries of $2,000 and net overdraft charge-offs of $30,000 during the six months ended June 30, 2024.
Current wording
During the nine months ended September 30, 2025, we experienced net loan recoveries of $27,000 (charge-offs of $7,000 less recoveries of $34,000) and net overdraft charge-offs of $39,000 (charge-offs of $76,000 and recoveries of $37,000). In comparison, we experienced net loan charge-offs of $43,000 and net overdraft charge-offs of $52,000 during the nine months ended September 30, 2024.
Previous wording
There were four loans totaling $276,000 (0.02% of total loans) included on non-performing status (non-accrual loans and loans past due 90 days and still accruing) at June 30, 2025. Two of these loans were on non-accrual status. The largest loan of the two is $208,000 and is secured by real estate. The balance of the remaining loan on non-accrual status is $1,000. This loan is secured by a second mortgage lien. We had two loans that were accruing loans past due 90 days or more at June 30, 2025. At both June 30, 2025 and December 31, 2024, we considered loan relationships exceeding $500,000 and on non-accrual status as individually assessed loans for the allowance for credit losses. At both June 30, 2025 and December 31, 2024, we had no individually assessed loans. The specific allowance for individually assessed loans is based on the fair value of collateral method or present value of expected cash flows method. For collateral dependent loans, the fair value of collateral method is used and the fair value is determined by an independent appraisal less estimated selling costs. There was no specific allowance for credit losses on our individually assessed loans at June 30, 2025 and December 31, 2024. At June 30, 2025, we had $220,000 in loans that were delinquent 30 days to 89 days representing 0.02% of total loans compared to $554,000 or 0.05% of total loans at December 31, 2024.
Current wording
There were three loans totaling $687,000 (0.02% of total loans) included on non-performing status (non-accrual loans and loans past due 90 days and still accruing) at September 30, 2025. Two of these loans were on non-accrual status. The largest loan of the two is $205,000 and is secured by real estate. The balance of the remaining loan on non-accrual status is $1,000. This loan is secured by a second mortgage lien. At September 30, 2025, we had one accruing loan that was past due 90 days or more. At both September 30, 2025 and December 31, 2024, we considered loan relationships exceeding $500,000 and on non-accrual status as individually assessed loans for the allowance for credit losses. At both September 30, 2025 and December 31, 2024, we had no individually assessed loans. The specific allowance for individually assessed loans is based on the fair value of collateral method or present value of expected cash flows method. For collateral dependent loans, the fair value of collateral method is used and the fair value is determined by an independent appraisal less estimated selling costs. There was no specific allowance for credit losses on our individually assessed loans at September 30, 2025 and December 31, 2024. At September 30, 2025, we had $436,000 in loans that were delinquent 30 days to 89 days representing 0.03% of total loans compared to $554,000 or 0.05% of total loans at December 31, 2024.
Previous wording
Assets increased $88.2 million, or 4.5% (9.1% annualized), to $2.0 billion at June 30, 2025 from $2.0 billion at December 31, 2024. The increase in assets was primarily due to increases in cash and due from banks of $5.8 million, interest-bearing bank balances of $27.9 million, investment securities available-for-sale of $23.0 million and loans held-for-investment of $39.5 million, partially offset by a decrease in investment securities held-to-maturity of $7.7 million.
Current wording
Assets increased $108.6 million, or 5.5% (7.4% annualized), to $2.1 billion at September 30, 2025 from $2.0 billion at December 31, 2024. The increase in assets was primarily due to increases in interest bearing bank balances of $39.8 million, investment securities available for sale of $19.9 million, and loans held for investment of $58.8 million, partially offset by a decrease in investment securities held-to-maturity of $10.6 million.
Previous wording
Loans held-for-sale increased to $10.8 million at June 30, 2025 from $9.7 million at December 31, 2024. Loans (excluding loans held-for-sale) increased $39.5 million, or 3.2% (6.5% annualized), to $1.3 billion at June 30, 2025 from $1.2 billion at December 31, 2024. Total loan production, excluding mortgage secondary market and new construction residential real estate, was $109.5 million during the six months ended June 30, 2025 compared to $94.6 million during the same period in 2024. Advances from unfunded commercial construction loans available for draws were $23.8 million during the six months ended June 30, 2025. Payoffs and paydowns totaled $60.7 million during the six months ended June 30, 2025 compared to $48.3 million during the same period in 2024.
Current wording
Loans held-for-sale decreased to $9.0 million at September 30, 2025 from $9.7 million at December 31, 2024. Loans (excluding loans held-for-sale) increased $58.8 million, or 4.8% (6.4% annualized), to $1.3 billion at September 30, 2025 from $1.2 billion at December 31, 2024. Total loan production, excluding mortgage secondary market and new construction residential real estate, was $161.1 million during the nine months ended September 30, 2025 compared to $138.3 million during the same period in 2024. Advances from unfunded commercial construction loans available for draws were $34.5 million during the nine months ended September 30, 2025 compared to $71.3 million during the same period in 2024. Payoffs and paydowns totaled $92.4 million during the nine months ended September 30, 2025 compared to $84.4 million during the same period in 2024.
Previous wording
Total mortgage production during the six months ended June 30, 2025 was $106.7 million, $57.7 million of the production was originated to be sold in the secondary market, $9.6 million of the loan production was originated as ARM loans for our loans held-for-investment portfolio, and $39.4 million of the loan production was commitments for new construction residential real estate loans. Total mortgage production during the six months ended June 30, 2024 was $85.6 million, $35.7 million of the production was originated to be sold in the secondary market, $24.3 million of the loan production was originated as ARM loans for our loans held-for-investment portfolio, and $25.6 million of the loan production was commitments for new construction residential real estate loans. As these ARM and new construction residential real estate loans are being held on our balance sheet as loans held-for-investment, the result is additive to loan growth and interest income but results in less gain on sale fee income, which is reported in noninterest income as mortgage banking income. The increase in mortgage production was primarily due to higher secondary market loan production and increased commitments for new residential real estate construction, partially offset by lower ARM loans for our loans held for investment portfolio.
Current wording
Total mortgage production during the nine months ended September 30, 2025 was $158.3 million. Of this production, $89.7 million was originated to be sold in the secondary market, $13.8 million was originated as ARM loans for our loans held-for-investment portfolio, and $54.8 million was commitments for new construction residential real estate loans. Total mortgage production during the nine months ended September 30, 2024 was $123.7 million, $55.3 million of the production was originated to be sold in the secondary market, $32.9 million of the loan production was originated as ARM loans for our loans held-for-investment portfolio, and $35.5 million of the loan production was commitments for new construction residential real estate loans. As these ARM and new construction residential real estate loans are being held on our balance sheet as loans held-for-investment, the result is additive to loan growth and interest income but results in less gain on sale fee income, which is reported in noninterest income as mortgage banking income. The increase in mortgage production was primarily due to higher secondary market loan production and increased commitments for new residential real estate construction, partially offset by lower ARM loans for our loans held for investment portfolio.
Previous wording
The loan-to-deposit ratio (including loans held-for-sale) at June 30, 2025 and December 31, 2024 was 72.5% and 74.5%, respectively. The loan-to-deposit ratio (excluding loans held-for-sale) at June 30, 2025 and December 31, 2024 was 71.8% and 74.1%, respectively.
Current wording
The loan-to-deposit ratio (including loans held-for-sale) at September 30, 2025 and December 31, 2024 was 72.7% and 73.4%, respectively. The loan-to-deposit ratio (excluding loans held-for-sale) at September 30, 2025 and December 31, 2024 was 72.2% and 72.8%, respectively.
Showing the first 40 of 61 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
We employ a monitoring technique to measure our interest sensitivity “gap,” which is the positive or negative dollar difference between assets and liabilities that are subject to interest rate repricing within a given period of time. Simulation modeling is performed to assess the impact varying interest rates and balance sheet mix assumptions will have on net interest income. We model the impact on net interest income for several different changes in the yield curve. We model the impact on net interest income in an increasing and decreasing rate environment of 100, 200, 300, and 400 basis points. We also periodically stress certain assumptions such as loan prepayment rates, deposit decay rates and interest rate betas to evaluate our overall sensitivity to changes in interest rates.
Current report — wording carried from elsewhere
Neither the “gap” analysis or asset/liability modeling are precise indicators of our interest sensitivity position due to the many factors that affect net interest income including the timing, magnitude, and frequency of interest rate changes as well as changes in the volume and mix of earning assets and interest-bearing liabilities.