First Western Financial Inc
For the period ended Jun 30, 2026. Filed Jul 31, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 31, 2026
MYFW$30.71-0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-01.
0001628280-26-029340
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-31.
0001628280-26-051423
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 194 current paragraphs.
123 unchanged; 56 reworded; 13 added; 3 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 27 previous and 34 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 (13)
Current report
•The decrease in Provision for credit losses was driven by a Release of provision for credit losses in the three months ended June 30, 2026 versus a Provision for credit losses in the three months ended June 30, 2025. The Release of provision for credit losses in the three months ended June 30, 2026 was primarily driven by reductions in specific reserves due to pay downs and a decrease in general reserves resulting from improved economic forecasts, partially offset by loan growth.
Current report
•The increase in Non-interest expense was primarily driven by increases in Salaries and employee benefits and Technology and information systems, partially offset by a decrease in Professional services. The increase in Salaries and employee benefits was primarily due to an increase in average headcount and an increase in bonus accruals a result of balance sheet growth and improved earnings. The increase in Technology and information systems was primarily attributable to a $0.4 million nonrecurring charge related to the write-off of certain previously capitalized technology assets. The decrease in Professional services was primarily driven by decreases in legal expenses, recruiting expenses, and FDIC insurance fees.
Current report
The six months ended June 30, 2026 compared with the six months ended June 30, 2025. We reported Net income available to common shareholders of $11.9 million for the six months ended June 30, 2026, compared to $6.7 million of Net income available to common shareholders for the six months ended June 30, 2025, a $5.2 million, or 77.6% increase. For the six months ended June 30, 2026, our Income before income tax was $15.5 million, a $6.8 million, or 78.2% increase from the six months ended June 30, 2025. The increase was primarily driven by a $7.3 million increase in Net interest income and a $3.1 million decrease in Provision for credit losses, partially offset by a $2.9 million increase in Non-interest expense and a $0.6 million decrease in Non-interest income.
Current report
•The increase in Non-interest expense was primarily driven by increases in Salaries and employee benefits and Technology and information systems, partially offset by decreases in Occupancy and equipment and Professional services. The increase in Salaries and employee benefits was primarily due to an increase in average headcount and an increase in bonus accruals as a result of balance sheet growth and improved earnings. The increase in Technology and information systems was primarily attributable to a $0.4 million nonrecurring charge related to the write-off of certain previously capitalized technology assets. The decrease in Occupancy and equipment was driven by a decrease in variable lease expenses. The decrease in Professional services was primarily driven by decreases in legal expenses, recruiting expenses, and FDIC insurance fees.
Current report
Interest expense on Interest-bearing deposits increased $0.8 million, or 4.2%, during the three months ended June 30, 2026 compared to the same period in 2025, primarily due to a $320 million increase in average interest-bearing deposits, partially offset by lower deposit rates. The increase in average interest-bearing deposits was driven by increases in money market deposit accounts and time deposit accounts. Average interest-bearing deposit rates were 3.22% for the three months ended June 30, 2026, compared to 3.57% for the three months ended June 30, 2025. The decrease in average interest-bearing deposit rates was primarily attributable to reducing deposit rates commensurate with the short-term rate decreases in 2025 and runoff of higher cost deposit accounts.
Current report
The six months ended June 30, 2026 compared with the six months ended June 30, 2025. For the six months ended June 30, 2026, Net interest income, before Provision for credit losses, was $42.6 million, an increase of $7.3 million, or 20.7%, compared to the six months ended June 30, 2025. The increase was primarily driven by a 22 basis point increase in net interest margin and a $310.9 million increase in average interest-earning assets. The increase in net interest margin was primarily driven by a 25 basis point decrease in total cost of funds.
Current report
The three months ended June 30, 2026 compared with the three months ended June 30, 2025. For the three months ended June 30, 2026 compared with the three months ended June 30, 2025, Non-interest income increased $0.1 million, or 1.3%, to $6.4 million. The increase in Non-interest income during the three months ended June 30, 2026 wasprimarily drivenby increases in Trust and investment management fees and Bank fees, partially offset by a decrease in Net gain on mortgage loans.
Current report
Trust and investment management fees—The increase in Trust and investment management fees of $0.2 million, or 5.1%, and $0.3 million, or 3.3%, for the three and six months ended June 30, 2026, respectively, was primarily driven by increases in fee income from Investment Agency and Managed Trust accounts.
Current report
Bank fees—The increase in Bank fees of $0.1 million, or 46.4%, for the three months ended June 30, 2026 was driven by increases in prepayment penalty and swap fees.
Current report
The three months ended June 30, 2026 compared with the three months ended June 30, 2025. For the three months ended June 30, 2026 compared with the three months ended June 30, 2025, Non-interest expense increased $2.1 million, or 11.1%, to $21.2 million. The increase in Non-interest expense during the three months ended June 30, 2026 was driven primarily by increases in Salaries and employee benefits and Technology and information systems, partially offset by a decrease in Professional services.
Current report
Technology and information systems—The increase in Technology and information systems of $0.4 million, or 43.5%, and $0.4 million, or 17.5%, for the three and six months ended June 30, 2026, respectively, was primarily attributable to a $0.4 million nonrecurring charge related to the write-off of certain previously capitalized technology assets.
Current report
Data processing—The increase in Data processing of $0.2 million, or 16.6%, and $0.3 million, or 11.2%, for the three and six months ended June 30, 2026, respectively, was primarily driven by upgrades to our consumer digital banking platform.
Current report
AUM increased $41.0 million, or 0.6%, during the three months ended June 30, 2026, primarily attributable to improving market conditions. For the six months ended June 30, 2026, AUM decreased $2.0 million, or 0.03%.
Removed paragraphs (3)
Previous report
•The increase in Non-interest expense was primarily driven by an increase in Salaries and employee benefits due to salary increases and an increase in bonus accruals as a result of improved earnings, partially offset by a decrease in Occupancy and equipment expense primarily due to a decrease in variable lease expenses.
Previous report
Bank fees—The decrease in Bank fees of $0.1 million, or 27.7%, for the three months ended March 31, 2026, was primarily attributable to a decrease in Main Street Lending Program (MSLP) servicing fees as the last MSLP loan exited the Bank’s loan portfolio in the first quarter of 2025.
Previous report
For the three months ended March 31, 2026, AUM decreased $43.0 million, or 0.6%, primarily due to lower market values, partially offset by new accounts.
Reworded paragraphs (56)
Previous wording
The following discussion and analysis is intended to assist readers in understanding our financial condition and results of operations for the three months ended March 31, 2026 and should be read in conjunction with our consolidated financial statements and the accompanying notes thereto included in this Quarterly Report on Form 10-Q (this "Form 10-Q") and in our Annual Report on Form 10-K filed with the SEC on February 27, 2026. Unless we state otherwise or the context otherwise requires, references in this Form 10-Q to "we," "our," "us," "the Company," and "First Western" refer to First Western Financial, Inc. and its consolidated subsidiaries, including First Western Trust Bank, which we sometimes refer to as "the Bank" or "our Bank."
Current wording
The following discussion and analysis is intended to assist readers in understanding our financial condition and results of operations for the three and six months ended June 30, 2026 and should be read in conjunction with our consolidated financial statements and the accompanying notes thereto included in this Quarterly Report on Form 10-Q (this "Form 10-Q") and in our Annual Report on Form 10-K filed with the SEC on February 27, 2026. Unless we state otherwise or the context otherwise requires, references in this Form 10-Q to "we," "our," "us," "the Company," and "First Western" refer to First Western Financial, Inc. and its consolidated subsidiaries, including First Western Trust Bank, which we sometimes refer to as "the Bank" or "our Bank."
Previous wording
From 2004, when we opened our first profit center, until March 31, 2026, we have expanded our footprint into fourteen full service profit centers, four loan production offices, and one trust office located across five states. As of and for the three months ended March 31, 2026, we had $3.24 billion in total assets, $28.3 million in Total income before non-interest expense, and provided fiduciary and advisory services on $7.24 billion of AUM.
Current wording
From 2004, when we opened our first profit center, until June 30, 2026, we have expanded our footprint into fourteen full service profit centers, two loan production offices, and one trust office located across five states. As of and for the six months ended June 30, 2026, we had $3.24 billion in total assets, $56.9 million in Total income before non-interest expense, and provided fiduciary and advisory services on $7.28 billion of AUM.
Previous wording
•Net gain on mortgage loans—gain on originating and selling mortgages and origination fees, less commissions to loan originators, document review, and other costs specific to originating and selling the loan. The market adjustments for interest rate lock commitments (IRLC), mortgage derivatives, and gains and losses incurred on the mandatory trading of loans are also included in this line item. Net gain on mortgage loans is primarily impacted by the amount of loans sold, the type of loans sold, and market conditions.
Current wording
•Net gain on mortgage loans—gain on originating and selling mortgages and origination fees, less commissions to loan originators, document review, and other costs specific to originating and selling the loan. The market adjustments for IRLC, mortgage derivatives, and gains and losses incurred on the mandatory trading of loans are also included in this line item. Net gain on mortgage loans is primarily impacted by the amount of loans sold, the type of loans sold, and market conditions.
Previous wording
The three months ended March 31, 2026 compared with the three months ended March 31, 2025. We reported Net income available to common shareholders of $6.2 million for the three months ended March 31, 2026, compared to $4.2 million of Net income available to common shareholders for the three months ended March 31, 2025, a $2.0 million, or 47.6% increase. For the three months ended March 31, 2026, our Income before income tax was $8.1 million, a $2.7 million, or 51.3% increase from the three months ended March 31, 2025. The increase was primarily driven by a $3.4 million increase in Net interest income and a $0.8 million decrease in Provision for credit losses, partially offset by a $0.8 million increase in Non-interest expense and a $0.7 million decrease in Non-interest income.
Current wording
The three months ended June 30, 2026 compared with the three months ended June 30, 2025. We reported Net income available to common shareholders of $5.7 million for the three months ended June 30, 2026, compared to $2.5 million of Net income available to common shareholders for the three months ended June 30, 2025, a $3.2 million, or 128.0% increase. For the three months ended June 30, 2026, our Income before income tax was $7.4 million, a $4.1 million, or 124.2% increase from the three months ended June 30, 2025. The increase was primarily driven by a $3.9 million increase in Net interest income and a $2.2 million decrease in Provision for credit losses, partially offset by a $2.1 million increase in Non-interest expense.
Previous wording
•The increase in Net interest income was driven by a 20 basis point increase in net interest margin and an increase in average interest-earning assets. The increase in net interest margin was primarily due to a 23 basis point decrease in total cost of funds as a result of reducing deposit rates commensurate with the short-term rate decreases in 2025 and runoff of higher cost deposit accounts.
Current wording
•The increase in Net interest income was driven by a 23 basis point increase in net interest margin and an increase in average interest-earnings assets. The increase in net interest margin was primarily due to a 26 basis point decrease in total cost of funds as a result of reducing deposit rates commensurate with the short-term rate decreases in 2025 and runoff of higher cost deposit accounts.
Previous wording
•The decrease in Provision for credit losses was primarily attributable to a credit event resolution on an individually analyzed loan, partially offset by loan growth.
Current wording
•The decrease in Provision for credit losses was primarily driven by a release of provision for credit losses in the six months ended June 30, 2026 versus a provision for credit losses in the six months ended June 30, 2025. The release of provision for credit losses in the six months ended June 30, 2026 was primarily driven by reductions in specific reserves due to a credit event resolution of an individually analyzed loan and pay downs, partially offset by loan growth.
Previous wording
•The decrease in Non-interest income was primarily driven by decreases in Net gain on other real estate owned due to the sale of two OREO properties in the first quarter of 2025 at a net gain, Other primarily due to changes in interest rate swap fair values, and Net gain on loans held for sale, partially offset by an increase in Net gain on mortgage loans due to an increase in origination volume.
Current wording
•The decrease in Non-interest income was primarily driven by decreases in Net gain on other real estate owned due to the sale of two OREO properties in the first quarter of 2025 at a net gain, Other primarily due to changes in interest rate swap fair values, and Net gain on loans held for sale, partially offset by an increase in Trust and investment management fees primarily driven by increases in fee income from Investment Agency and Managed Trust accounts.
Previous wording
The three months ended March 31, 2026 compared with the three months ended March 31, 2025. For the three months ended March 31, 2026, Net interest income, before Provision for credit losses, was $20.9 million, an increase of $3.4 million, or 19.7%, compared to the three months ended March 31, 2025. The increase was primarily driven by a 20 basis point increase in net interest margin and a $300 million increase in average interest-earning assets. The increase in net interest margin was primarily driven by a 23 basis point decrease in total cost of funds.
Current wording
The three months ended June 30, 2026 compared with the three months ended June 30, 2025. For the three months ended June 30, 2026, Net interest income, before the Provision for credit losses, was $21.8 million, an increase of $3.9 million, or 21.8%, compared to the three months ended June 30, 2025. The increase was primarily driven by a 23 basis point increase in net interest margin and a $322 million increase in average interest-earning assets. The increase in net interest margin was primarily driven by a 26 basis point decrease in total cost of funds.
Previous wording
Total interest and dividend income increased $3.9 million, or 10.5%, during the three months ended March 31, 2026 compared to the same period in 2025, primarily due to a $300 million increase in average interest-earning assets, partially offset by a 3 basis point decrease in the average interest-earning assets yield. The increase in average interest-earning assets was driven by increases in average loans of $277 million and debt securities of $62.9 million, partially offset by a decrease in average interest-bearing deposits in other financial institutions of $54.5 million. The decrease in the average interest-earning assets yield was primarily driven by an 81 basis point decrease in interest-bearing deposits in other financial institution yield due to the lower interest rate environment, partially offset by a 64 basis point increase in average debt securities yield.
Current wording
Total interest and dividend income increased $8.2 million, or 11.0%, during the six months ended June 30, 2026 compared to the same period in 2025, primarily due to a $311 million increase in average interest-earning assets, partially offset by a 3 basis point decrease in the average interest-earning assets yield. The increase in average interest-earning assets was driven by increases in average loans of $273 million and debt securities of $72.6 million, partially offset by a decrease in average interest-bearing deposits in other financial institutions of $41.8 million. The decrease in the average interest-earning assets yield was primarily driven by a 78 basis point decrease in interest-bearing deposits in other financial institutions due to the lower interest rate environment, partially offset by increases in average debt security and loan yields of 60 basis points and 1 basis point, respectively.
Previous wording
Interest expense on Interest-bearing deposits increased $0.5 million, or 2.7%, during the three months ended March 31, 2026 compared to the same period in 2025, primarily due to a $297 million increase in average interest-bearing deposits, partially offset by lower deposit rates. The increase in average interest-bearing deposits was primarily driven by an increase in money market deposit accounts, partially offset by a decrease in time deposits. Average interest-bearing deposit rates were 3.23% for the three months ended March 31, 2026, compared to 3.59% for the three months ended March 31, 2025. The decrease in the average Interest-bearing deposits rate was primarily attributable to reducing deposit rates commensurate with the short-term rate decreases in 2025 and runoff of higher cost deposit accounts.
Current wording
Interest expense on Interest-bearing deposits increased $1.3 million, or 3.5%, during the six months ended June 30, 2026 compared to the same period in 2025, primarily due to a $308 million increase in average interest-bearing deposits, partially offset by lower deposit rates. The increase in average interest-bearing deposits was primarily driven by an increase in money market deposit accounts, partially offset by a decrease in time deposits. Average interest-bearing deposit rates were 3.22% for the six months ended June 30, 2026, compared to 3.58% for the six months ended June 30, 2025. The decrease in the average Interest-bearing deposits rate was primarily attributable to reducing deposit rates commensurate with short-term rate decreases in 2025 and runoff of higher cost deposit accounts.
Previous wording
We have a dedicated problem loan resolution team comprised of associates from our credit, senior leadership, risk, and accounting teams that meets frequently to ensure that watch list and problem credits are identified early and actively managed. We work to identify potential losses in a timely manner and proactively manage the problem credits to minimize losses. For the three months ended March 31, 2026, we recorded a $0.7 million Release of provision for credit losses compared to a $0.1 million Provision for credit losses for the three months ended March 31, 2025. The release of provision recorded for the three months ended March 31, 2026 was primarily driven by decreased provision on individually analyzed loans.
Current wording
We have a dedicated problem loan resolution team comprised of associates from our credit, senior leadership, risk, and accounting teams that meets frequently to ensure that watch list and problem credits are identified early and actively managed. We work to identify potential losses in a timely manner and proactively manage the problem credits to minimize losses. For the three and six months ended June 30, 2026, we recorded a $0.5 million and $1.2 million Release of provision for credit losses, respectively, compared to a $1.8 million and $1.9 million Provision for credit losses for the three and six months ended June 30, 2025, respectively. The release of provision recorded for the six months ended June 30, 2026 was primarily driven by reductions in specific reserves due to a credit resolution of an individually analyzed loan and pay downs, partially offset by loan growth.
Previous wording
Thethree months ended March 31, 2026 compared with thethree months ended March 31, 2025. For the three months ended March 31, 2026 compared with thethree months ended March 31, 2025, Non-interest income decreased $0.7 million, or 9.4%, to $6.7 million. The decrease in Non-interest income during the three months ended March 31, 2026 was primarily driven by decreases in Net gain on other real estate owned, Other, and Net gain on loans held for sale, partially offset by an increase in Net gain on mortgage loans.
Current wording
Thesix months ended June 30, 2026 compared with thesix months ended June 30, 2025. For the six months ended June 30, 2026 compared with thesix months ended June 30, 2025, Non-interest income decreased $0.6 million, or 4.5%, to $13.0 million. The decrease in Non-interest income during the six months ended June 30, 2026 was primarily driven by decreases in Net gain on other real estate owned, Other, and Net gain on loans held for sale, partially offset by an increase in Trust and investment management fees.
Previous wording
Net gain on mortgage loans—The increase in Net gain on mortgage loans of $0.4 million, or 36.6%, for the three months ended March 31, 2026 was primarily attributable to an increase in origination volume.
Current wording
Net gain on mortgage loans—The decrease in Net gain on mortgage loans of $0.3 million, or 23.7%, for the three months ended June 30, 2026 was primarily attributable to lower margins. The increase in Net gain on mortgage loans of $0.1 million, or 4.9%, for the six months ended June 30, 2026 was primarily attributable to higher origination volume, partially offset by lower margins.
Previous wording
Net gain on loans held for sale—The decrease in Net gain on loans held for sale was due to a $0.2 million gain recorded in the first quarter of 2025. The gain was due to the reversal of a write-down on a non-accrual loan recorded in the fourth quarter of 2024. This loan was classified as held for sale as of December 31, 2024; however, during the first quarter of 2025, it was transferred to held for investment and charged off through the ACL.
Current wording
Net gain on loans held for sale—The decrease in Net gain on loans held for sale for the six months ended June 30, 2026 was due to a $0.2 million gain recorded in the first quarter of 2025. The gain was due to the reversal of a write-down on a non-accrual loan recorded in the fourth quarter of 2024. This loan was classified as held for sale as of December 31, 2024; however, during the first quarter of 2025, it was transferred to held for investment and charged off through the ACL.
Previous wording
Other—The decrease in Other of $0.3 million, or 254.5%, was primarily attributable to changes in interest rate swap fair values.
Current wording
Other—The decrease in Other of $0.3 million, or 143.9%, for the six months ended June 30, 2026 was primarily attributable to changes in interest rate swap fair values.
Previous wording
The three months ended March 31, 2026 compared with the three months ended March 31, 2025. For the three months ended March 31, 2026 compared with the three months ended March 31, 2025, Non-interest expense increased $0.8 million, or 4.1%, to $20.2 million. The increase in Non-interest expense during the three months ended March 31, 2026 was driven primarily by an increase in Salaries and employee benefits, partially offset by decreases in Occupancy and equipment and Other.
Current wording
The six months ended June 30, 2026 compared with the six months ended June 30, 2025. For the six months ended June 30, 2026 compared with the six months ended June 30, 2025, Non-interest expense increased $2.9 million, or 7.6%, to $41.4 million. The increase in Non-interest expense during the six months ended June 30, 2026 was driven primarily by increase in Salaries and employee benefits and Technology and information systems, partially offset by decreases in Occupancy and equipment and Professional services.
Previous wording
Salaries and employee benefits—The increase in Salaries and employee benefits of $1.5 million, or 12.7%, for the three months ended March 31, 2026 was primarily driven by an increase in average headcount and an increase in bonus accruals as a result of improved earnings.
Current wording
Salaries and employee benefits—The increase in Salaries and employee benefits of $2.0 million, or 18.3%, and $3.5 million, or 15.4% for the three and six months ended June 30, 2026, respectively, was driven by an increase in average headcount and an increase in bonus accruals a result of balance sheet growth and improved earnings.
Previous wording
Occupancy and equipment—The decrease in Occupancy and equipment of $0.3 million, or 14.7%, for three months ended March 31, 2026 was driven bya decrease in variable lease expenses.
Current wording
Occupancy and equipment—The decrease in Occupancy and equipment of $0.2 million, or 10.8%, and $0.5 million, or 12.4%, for the three and six months ended June 30, 2026 was driven by a decrease in variable lease expenses.
Previous wording
Professional services—The decrease in Professional services of $0.1 million, or 6.3%, for the three months ended March 31, 2026, was driven by decreases in legal expenses and FDIC insurance fees.
Current wording
Professional services—The decrease in Professional services of $0.4 million, or 19.7%, and $0.5 million, or 13.3%, for the three and six months ended June 30, 2026, respectively, was primarily driven by decreases in legal expenses, recruiting expenses, and FDIC insurance fees.
Previous wording
Other—The decrease in Other of $0.2 million, or 13.1%, for the three months ended March 31, 2026, was primarily driven by a fraud loss in the first quarter of 2025.
Current wording
Other—The decrease in Other of $0.2 million, or 7.2%, for the six months ended June 30, 2026, was primarily driven by a fraud loss in the first quarter of 2025.
Previous wording
The Company recorded an income tax provision of $1.9 million and $1.2 million for the three months ended March 31, 2026 and 2025, respectively, reflecting an effective tax rate of 23.4% and 21.9%, respectively.
Current wording
The Company recorded an income tax provision of $1.7 million and $0.8 million for the three months ended June 30, 2026 and 2025, respectively, reflecting an effective tax rate of 22.6% and 24.5%, respectively. The Company recorded an income tax provision of $3.6 million and $2.0 million for the six months ended June 30, 2026 and 2025, respectively, reflecting an effective tax rate of 23.0% and 22.9%, respectively.
Previous wording
The Wealth Management segment reported Income before income tax of $7.8 million for the three months ended March 31, 2026, compared to $5.3 million for the same period in 2025. The majority of our assets and liabilities are on the Wealth Management segment balance sheet. The increase in Income before income taxes for the three months ended March 31, 2026 was driven primarily by an increase in Net interest income, after provision for credit losses, partially offset by an increase in Non-interest expense and a decrease in Non-interest income. The increase in Net interest income, after provision for credit losses was primarily driven by increases in net interest margin and average interest-earning assets, as well as a release of provision for credit losses primarily driven by a decreased ACL on individually analyzed loans. The increase in Non-interest expense was primarily driven by an increase in Salaries and employee benefits, partially offset by a decrease in Occupancy and equipment. The decrease in Non-interest income was primarily driven by decreases in Net gain on other real estate owned and Net gain on loans held for sale.
Current wording
The Wealth Management segment reported Income before income tax of $7.7 million for the three months ended June 30, 2026, compared to $3.1 million for the same period in 2025, as well as Income before income tax of $15.5 million for the six months ended June 30, 2026, compared to $8.4 million for the same period in 2025. The majority of our assets and liabilities are on the Wealth Management segment balance sheet. The increase in Income before income taxes for the three month period ended June 30, 2026 was driven primarily by increases in Net interest income, after provision for credit losses and Non-interest income, partially offset by an increase in Non-interest expense. The increase in Income before income taxes for the six month period ended June 30, 2026 was driven primarily by an increase in Net interest income, after provision for credit losses, partially offset by an increase in Non-interest expense and a decrease in Non-interest income.
Previous wording
The Mortgage segment reported Income before income tax of $0.3 million for the three months ended March 31, 2026, compared to $21 thousand for the same period in 2025. The increase in Income before taxes for the three month period ended March 31, 2026 was primarily driven by an increase in Net gain on mortgage loans, which was primarily driven by higher origination volume, as well as an increase in Total interest and dividend income, partially offset by an increase in Salaries and employee benefits.
Current wording
The Mortgage segment reported Loss before income taxes of $0.3 million for the three months ended June 30, 2026, compared to $0.3 million of Income before income taxes for the same period in 2025, as well as Income before income taxes of $0.0 million for the six months ended June 30, 2026, compared to $0.3 million for the same period in 2025. The decrease in Income before taxes for the three month period ended June 30, 2026 was primarily driven by a decrease in Net gain on mortgage loans, which was primarily driven by lower margins, and an increase in Salaries and employee benefits. The decrease in Income before taxes for the six month period ended June 30, 2026 was primarily driven by an increase in Salaries and employee benefits, partially offset by an increase in Total interest and dividend income.
Previous wording
Cash and cash equivalents increased by $63.8 million, or 31.8%, to $264.1 million as of March 31, 2026 compared to December 31, 2025. The increase was a result of the increase in Deposits, partially offset by the increase in Loans and decrease in Borrowings.
Current wording
Cash and cash equivalents decreased by $25.4 million, or 12.7%, to $174.9 million as of June 30, 2026 compared to December 31, 2025. The decrease was a result of increases in Debt securities and Loans and a decrease in Borrowings, partially offset by an increase in Deposits.
Previous wording
Available-for-sale debt securities decreased by $3.7 million, or 8.0%, to $41.9 million as of March 31, 2026 compared to December 31, 2025. The decrease was due to principal pay downs.
Current wording
Available-for-sale debt securities increased by $44.0 million, or 96.5%, to $89.6 million as of June 30, 2026 compared to December 31, 2025. The increase was due to the purchase of residential mortgage-backed securities issued by U.S. government agencies and sponsored enterprises, partially offset by principal pay downs.
Previous wording
Held-to-maturity debt securities increased by $0.1 million, or 0.1%, to $95.0 million as of March 31, 2026 compared to December 31, 2025. The increase was primarily due to the purchase of corporate bonds, offset by principal pay downs.
Current wording
Held-to-maturity debt securities increased by $21.8 million, or 23.0%, to $116.8 million as of June 30, 2026 compared to December 31, 2025. The increase was primarily due to the purchase of corporate and municipal bonds, offset by principal pay downs.
Previous wording
Loans, net of allowance increased by $40.3 million, or 1.5%, to $2.67 billion as of March 31, 2026 compared to December 31, 2025, primarily due togrowth in the 1-4 family residential and Commercial and industrial portfolios, partially offset by a decrease in Non-owner occupied commercial real estate portfolio.
Current wording
Loans, net of allowance increased by $62.5 million, or 2.4%, to $2.69 billion as of June 30, 2026 compared to December 31, 2025, primarily due togrowth in the 1-4 family residential, Owner occupied commercial real estate, and Cash, securities, and other portfolios, partially offset by a decrease in the Non-owner occupied commercial real estate portfolio.
Previous wording
Mortgage loans held for sale, at fair value decreased $11.8 million, or 29.2%, to $28.4 million as of March 31, 2026 compared to December 31, 2025. The decrease was prim arily due to the timing of loan originations and sales.
Current wording
Mortgage loans held for sale, at fair value decreased $15.5 million, or 38.6%, to $24.7 million as of June 30, 2026 compared to December 31, 2025. The decrease was primarily due to the timing of loan originations and sales.
Previous wording
Deposits increased $95.0 million, or 3.5%, to $2.84 billion as of March 31, 2026 compared to December 31, 2025, primarily driven by increases in Non-interest bearing deposit accounts, money market deposit accounts, and time deposit accounts. Non-interest bearing deposit accounts increased $35.1 million, or 10.2%, to $380.1 million as of March 31, 2026 compared to December 31, 2025. Money market deposit accounts increased $31.6 million, or 1.7%, to $1.95 billion as of March 31, 2026 compared to December 31, 2025. Time deposit accounts increased $19.4 million, or 5.5%, from December 31, 2025 to $371.9 million as of March 31, 2026.
Current wording
Deposits increased $99.4 million, or 3.6%, to $2.85 billion as of June 30, 2026 compared to December 31, 2025, primarily driven by increases in Non-interest bearing deposit accounts and money market deposit accounts. Non-interest bearing deposit accounts increased $36.9 million, or 10.7%, to $381.8 million as of June 30, 2026 compared to December 31, 2025. Money market deposit accounts increased $61.7 million, or 3.2%, to $1.98 billion as of June 30, 2026 compared to December 31, 2025.
Previous wording
Borrowings decreased $12.8 million, or 11.9%, to $94.8 million as of March 31, 2026 compared to December 31, 2025. The decrease was primarily driven by the pay down on the Company's FHLB line of credit in the first quarter of 2026.
Current wording
Borrowings decreased $26.3 million, or 24.5%, to $81.3 million as of June 30, 2026 compared to December 31, 2025. The decrease was primarily driven by the pay down of FHLB borrowings.
Previous wording
Other liabilities decreased $4.3 million, or 12.2%, to $30.9 million as of March 31, 2026 compared to December 31, 2025. The decrease was primarily due to to decreases in salaries payable driven by the timing of 401K match payouts and incentive compensation payments and an increase in interest rate swap fair values resulting from an increase in forward interest rates.
Current wording
Other liabilities decreased $5.1 million, or 14.4%, to $30.2 million as of June 30, 2026 compared to December 31, 2025. The decrease was primarily due to decreases in salaries payable driven by the timing of bonus payments and an increase in interest rate swap fair values resulting from an increase in forward interest rates.
Previous wording
Total shareholders’ equity increased $7.8 million, or 2.9%, from December 31, 2025 to $273.4 million as of March 31, 2026. The increase was primarily due to Net income for the quarter and a decrease in Accumulated other comprehensive loss primarily driven by an increase in cash flow hedge fair values.
Current wording
Total shareholders’ equity increased $15.0 million, or 5.7%, from December 31, 2025 to $280.6 million as of June 30, 2026. The increase was primarily due to Net income for the quarter and an increase in Accumulated other comprehensive gain primarily driven by an increase in cash flow hedge fair values.
Previous wording
Debt securities we intend to hold for an indefinite period of time, but not necessarily to maturity, are classified as available-for-sale and are recorded at fair value using current market information from a third-party pricing service, with unrealized gains and losses excluded from earnings and reported in OCI, net of tax. The carrying values of our debt securities classified as available-for-sale are adjusted for unrealized gain or loss, and any gain or loss is reported on an after-tax basis as a component of OCI in shareholders’ equity. As of March 31, 2026 and December 31, 2025, investments in debt securities classified as available-for-sale totaled $41.9 million and $45.6 million, respectively.
Current wording
Debt securities we intend to hold for an indefinite period of time, but not necessarily to maturity, are classified as available-for-sale and are recorded at fair value using current market information from a third-party pricing service, with unrealized gains and losses excluded from earnings and reported in OCI, net of tax. The carrying values of our debt securities classified as AFS are adjusted for unrealized gain or loss, and any gain or loss is reported on an after-tax basis as a component of OCI in shareholders’ equity. As of June 30, 2026 and December 31, 2025, investments in debt securities classified as AFS totaled $89.6 million and $45.6 million, respectively.
Previous wording
Debt securities for which we have the intent and ability to hold to their maturity are classified as HTM debt securities and are recorded at amortized cost. Debt securities HTM are carried at cost, adjusted for the amortization of premiums and the accretion of discounts using the level-yield method over the remaining period until maturity. As of March 31, 2026 and December 31, 2025, investments in debt securities classified as HTM totaled $95.0 million.
Current wording
Debt securities for which we have the intent and ability to hold to their maturity are classified as HTM debt securities and are recorded at amortized cost. Debt securities HTM are carried at cost, adjusted for the amortization of premiums and the accretion of discounts using the level-yield method over the remaining period until maturity. As of June 30, 2026 and December 31, 2025, investments in debt securities classified as HTM totaled $116.8 million and $95.0 million, respectively.
Previous wording
Management measures expected credit losses on debt securities on a collective basis by major security type. The majority of our HTM investment portfolio consists of debt securities issued by U.S. government entities and agencies and we consider the risk of credit loss to be zero and, therefore, we do not record an ACL. The Company's non-government backed debt securities include private label MBS as well as corporate bonds. The ACL on HTM debt securities was $0.1 million as of March 31, 2026 and December 31, 2025. There was no ACL on AFS debt securities as of March 31, 2026 and December 31, 2025.
Current wording
Management measures expected credit losses on debt securities on a collective basis by major security type. The majority of our HTM investment portfolio consists of debt securities issued by U.S. government entities and agencies and we consider the risk of credit loss to be zero and, therefore, we do not record an ACL. The Company's non-government backed debt securities include private label MBS, corporate bonds, and municipal bonds. The ACL on HTM debt securities was $0.2 million and $0.1 million as of June 30, 2026 and December 31, 2025, respectively. There was no ACL on AFS debt securities as of June 30, 2026 and December 31, 2025.
Previous wording
In addition to originating loans for our own portfolio, we conduct mortgage banking activities in which we originate and sell servicing-released, whole loans in the secondary market. Our mortgage banking loan sale activities are primarily directed at originating single family mortgages that are priced and underwritten to conform to previously agreed-upon criteria before loan funding and are delivered to the investor shortly after funding. The level of future loan originations, loan sales, and loan repayments depends on overall credit availability, the interest rate environment, the strength of the general economy, local real estate markets and the housing industry, and conditions in the secondary loan sale market. The amount of gain or loss on the sale of loans is primarily driven by market conditions and changes in interest rates, as well as our pricing and asset liability management strategies. As of March 31, 2026 and December 31, 2025, we had Mortgage loans held for sale of $28.4 million and $40.2 million, respectively, of residential mortgage loans we originated.
Current wording
In addition to originating loans for our own portfolio, we conduct mortgage banking activities in which we originate and sell servicing-released, whole loans in the secondary market. Our mortgage banking loan sale activities are primarily directed at originating single family mortgages that are priced and underwritten to conform to previously agreed-upon criteria before loan funding and are delivered to the investor shortly after funding. The level of future loan originations, loan sales, and loan repayments depends on overall credit availability, the interest rate environment, the strength of the general economy, local real estate markets and the housing industry, and conditions in the secondary loan sale market. The amount of gain or loss on the sale of loans is primarily driven by market conditions and changes in interest rates, as well as our pricing and asset liability management strategies. As of June 30, 2026 and December 31, 2025, we had Mortgage loans held for sale of $24.7 million and $40.2 million, respectively, of residential mortgage loans we originated.
Previous wording
As of March 31, 2026, the Company has $2.5 million in loans accounted for under the fair value option with an unpaid principal balance amount of $2.5 million. As of December 31, 2025, the Company had $3.2 million in loans accounted for under the fair value option with an unpaid principal balance amount of $3.2 million. See Note 12 – Fair Value in the Notes to Condensed Consolidated Financial Statements.
Current wording
As of June 30, 2026, the Company had $1.8 million in loans accounted for under the fair value option with an unpaid principal balance amount of $1.8 million. As of December 31, 2025, the Company had $3.2 million in loans accounted for under the fair value option with an unpaid principal balance amount of $3.2 million. See Note 12 – Fair Value in the Notes to Condensed Consolidated Financial Statements.
Previous wording
(1)Includes $2.5 million and $3.2 million of unpaid principal balance of Loans held for investment accounted for under fair value option as of March 31, 2026 and December 31, 2025, respectively.
Current wording
(1)Includes $1.8 million and $3.2 million of unpaid principal balance of Loans held for investment accounted for under fair value option as of June 30, 2026 and December 31, 2025, respectively.
Previous wording
(2)Includes $28.2 million and $39.5 million of unpaid principal balance of Mortgage loans held for sale as of March 31, 2026 and December 31, 2025, respectively.
Current wording
(2)Includes $24.3 million and $39.5 million of unpaid principal balance of Mortgage loans held for sale as of June 30, 2026 and December 31, 2025, respectively.
Previous wording
The CRE portfolio is comprised of loans made to purchase and finance commercial real estate properties. On average, the balances are small and geographically disbursed across our footprint. Specifically, our CRE portfolio has an average loan balance of $2.93 million and $3.10 million with a weighted average loan-to-value ratio (LTV) of 54.5% and 54.3% as of March 31, 2026 and December 31, 2025, respectively.
Current wording
The CRE portfolio is comprised of loans made to purchase and finance commercial real estate properties. On average, the balances are small and geographically disbursed across our footprint. Specifically, our CRE portfolio has an average loan balance of $2.93 million and $3.10 million with a weighted average loan-to-value ratio (LTV) of 55.0% and 54.3% as of June 30, 2026 and December 31, 2025, respectively.
Showing the first 40 of 56 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
•The increase in Net interest income was driven by a 22 basis point increase in net interest margin and an increase in average interest-earning assets. The increase in net interest margin was primarily due to a 25 basis point decrease in total cost of funds as a result of reducing deposit rates commensurate with the short-term rate decreases in 2025 and runoff of higher cost deposit accounts.
Current report — wording carried from elsewhere
Total interest and dividend income increased $4.4 million, or 11.6%, during the three months ended June 30, 2026 compared to the same period in 2025, primarily due to a $322 million increase in average interest-earning assets, partially offset by a 2 basis point decrease in the average interest-earning assets yield. The increase in average interest-earning assets was primarily driven by increases in average loans of $268.6 million and debt securities of $82.3 million, partially offset by a decrease in average interest-bearings deposits in other financial institutions of $29.3 million. The decrease in the average interest-earning assets yield was primarily driven by a 74 basis point decrease in yield from interest-bearing deposits in other financial institutions due to the lower interest rate environment, partially offset by increases in average debt security and loan yields of 58 basis points and 2 basis points, respectively.