MetroCity Bankshares, Inc.
For the period ended Dec 31, 2025. Filed Mar 16, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Mar 16, 2026
MCBS$36.05-0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-03-10.
0001747068-25-000007
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-03-16.
0001747068-26-000010
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 164 previous paragraphs and 180 current paragraphs.
95 unchanged; 59 reworded; 19 added; 7 removed; 3 previous and 7 current paragraphs rearranged.
Tables are not compared: 23 previous and 24 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 (19)
Current report
Acquisition of First IC Corporation and First IC Bank
Current report
After the close of business on December 1, 2025, the Company completed the acquisition of First IC Corporation. (“First IC”). For each share of First IC common stock, First IC stockholders had the right to receive 0.3729 shares of the Company's common stock and $12.00 in cash, with cash paid in lieu of fractional shares. Total consideration was approximately $202.3 million and consisted of $90.5 million of equity (3,384,066 shares) in the form of the Company’s common stock, plus $111.9 million in cash, including cash paid for stock option cancellations and fractional shares. As of December 31, 2025, First IC had approximately $1.13 billion in total assets, $1.01 billion in total loans and $878.4 million in deposits.
Current report
Business Combinations
Current report
In accordance with applicable accounting guidance, the Company recognizes assets acquired and liabilities assumed at their respective fair values as of the date of acquisition, with the related transaction costs expensed in the period incurred. The Company may use third party valuation specialists to assist in the determination of fair value of certain assets and liabilities at the acquisition date, including loans, core deposit intangibles and time deposits. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed on the acquisition date, the estimates are inherently uncertain. The allowance for credit losses on purchased seasoned loans (PSLs) and purchased credit deteriorated (PCD) loans are recognized within business combination accounting.
Current report
See Note 1 and Note 2 of our consolidated financial statements as of December 31, 2025, included elsewhere in this Annual Report on Form 10-K, for additional information on the Company’s accounting policies for estimating credit losses on acquired loans and details regarding our acquisition of First IC.
Current report
Goodwill and Core Deposit Intangible
Current report
The Company has increased its market share through the acquisition of entire financial institutions accounted for under the acquisition method of accounting. For all acquisitions, the Company is required to record assets acquired and liabilities assumed at their fair value, which is an estimate determined by the use of internal or other valuation techniques, which may include the use of third-party specialists. Goodwill is evaluated for impairment at least annually, or more often if warranted, using a combined qualitative and quantitative impairment approach. The initial qualitative approach assesses whether the existence of events or circumstances led to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company determines it is more likely than not that the fair value is less than carrying value, a quantitative impairment test is performed to compare carrying value to the fair value of the reporting unit. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The Company’s goodwill relates to acquisitions that are fully integrated into the retail banking operations, which management does not consider to be at risk of failing step one in the near future.
Current report
The Company’s core deposit intangibles arise from the acquisition of deposits and represent the fair value of the expected cost savings from a stable, low-cost funding source compared to alternative market funding. Core deposit intangible assets are amortized on a straight-line method over their estimated useful life of 10 years.
Current report
Financial Performance Ratios
Current report
Non-GAAP Financial Measures
Current report
This document contains financial information determined by methods other than in accordance with GAAP. The measures entitled adjusted return on average shareholder’s equity, adjusted efficiency ratio and tangible book value per share are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are return on average shareholder’s equity, efficiency ratio and book value per share, respectively. Adjusted return on average shareholder’s equity excludes average accumulated other comprehensive income and merger-related expenses. Adjusted efficiency ratio excludes merger-related expenses. Tangible book value per share excludes goodwill and core deposit intangibles.
Current report
Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently.
Current report
These disclosures should not be considered an alternative to GAAP. The computations of adjusted return on average shareholder’s equity, adjusted efficiency ratio and tangible book value per share and the reconciliation of these measures to return on average shareholder’s equity, efficiency ratio and book value per share are set forth in the table below.
Current report
Service charges on deposit accounts were $2.3 million for the year ended December 31, 2025 compared to $2.1 million for the year ended December 31, 2024, an increase of $255,000, or 12.3%. The increase was primarily attributable to increased overdraft fees and analysis charges.
Current report
Occupancy expense for the year ended December 31, 2025 was $5.8 million compared to $5.5 million for the year ended December 31, 2024, an increase of $264,000, or 4.8%. This increase was primarily due to higher expenses related to depreciation, rent, and maintenance and repairs.
Current report
Advertising expense for the year ended December 31, 2025 was $657,000 compared to $634,000 for the year ended December 31, 2024, a slight increase of $23,000, or 3.6%. The increase was consistent with the continued growth of our loans and deposits.
Current report
Merger-related expenses for the year ended December 31, 2025 were $4.7 million compared to $0 during the year ended December 31, 2024 as no business combinations occurred during 2024. Included in the $4.7 million of merger-related expenses are professional and legal fees, severance payments, systems termination costs and other integration costs.
Current report
Our gross loans held for investment increased $912.5 million, or 28.8%, to $4.08 billion as of December 31, 2025 compared to $3.17 billion as of December 31, 2024, primarily due to the $1.01 billion of loans acquired from First IC as of December 31, 2025. Excluding acquired loans, our legacy loans held for investment decreased by $96.5 million, or 3.0%, compared to 2024. The decline in our legacy loan portfolio during the year ended December 31, 2025 was made up
Current report
The allowance for credit losses was $27.8 million at December 31, 2025 compared to $18.7 million at December 31, 2024, an increase of $9.1 million, or 48.5%. The allowance for credit losses was $18.1 million as of December 31, 2023.
Removed paragraphs (7)
Previous report
The net interest margin for the year ended December 31, 2023 was 3.13% compared to 3.95% for the year ended December 31, 2022, a decrease of 82 basis points. The cost of interest-bearing liabilities increased by 248 basis points to
Previous report
Service charges on deposit accounts were $1.9 million for the year ended December 31, 2023 compared to $2.0 million for the year ended December 31, 2022, a decrease of $73,000, or 3.7%. The decrease was primarily attributable to decreased overdraft fees, analysis fees and wire transfer fees.
Previous report
Occupancy expense for the year ended December 31, 2023 was $4.9 million compared to $4.9 million for the year ended December 31, 2022, a slight increase of $36,000, or 0.7%. This increase was partially due to higher maintenance and repairs expense, partially offset by lower depreciation expense.
Previous report
Advertising expense of $614,000 for the year ended December 31, 2023 remained relatively flat compared to $606,000 for the year ended December 31, 2022.
Previous report
Return on Equity and Assets
Previous report
For the year ended December 31, 2024, 2023 and 2022, our average equity includes $13.2 million, $22.1 million and $7.6 million, respectively, of average accumulated other comprehensive income. These amounts includes unrealized losses on our available for sale securities portfolio and significant unrealized gains on our interest rate derivatives. Excluding the average accumulated other comprehensive income balance, the return on average equity was 16.71%, 15.00% and 20.02% for the years ended December 31, 2024, 2023 and 2022, respectively.
Previous report
The following table presents supplemental information regarding total contractual obligations as of December 31, 2024:
Reworded paragraphs (59)
Previous wording
We are MetroCity Bankshares, Inc., a bank holding company headquartered in the Atlanta, Georgia metropolitan area. We operate through our wholly-owned banking subsidiary, Metro City Bank, a Georgia state-chartered commercial bank that was founded in 2006. We currently operate 20 full-service branch locations in multi-ethnic communities in Alabama, Florida, Georgia, New York, New Jersey, Texas and Virginia. We are focused on delivering full-service banking services in markets, predominantly Asian-American communities in growing metropolitan markets in the Eastern U.S. and Texas.
Current wording
We are MetroCity Bankshares, Inc., a bank holding company headquartered in the Atlanta, Georgia metropolitan area. We operate through our wholly-owned banking subsidiary, Metro City Bank, a Georgia state-chartered commercial bank that was founded in 2006. We currently operate 29 full-service branch locations in multi-ethnic communities in Alabama, California, Florida, Georgia, New York, New Jersey, Texas and Virginia. We are focused on delivering full-service banking services in diverse multi-ethnic markets, including Asian-American communities in growing metropolitan markets in the Eastern U.S. and Texas
Previous wording
Prior to December 2014, we operated without a holding company, and in December 2014, the Bank formed MetroCity Bankshares, Inc. as its holding company. On December 31, 2014, MetroCity Bankshares, Inc. acquired all of the outstanding common stock of Metro City Bank as a part of the holding company formation transaction.
Current wording
Prior to December 2014, the Bank operated without a holding company structure. In December 2014, the Bank formed MetroCity Bankshares, Inc. as its holding company, and on, December 31, 2014, MetroCity Bankshares, Inc. acquired all of the outstanding common stock of Metro City Bank in connection with the holding company formation transaction.
Previous wording
We are a bank holding company and we conduct all of our material business operations through the Bank. As a result, the discussion and analysis relates to activities primarily conducted at the Bank level.
Current wording
We are a bank holding company and we conduct all of our material business operations through the Bank. Accordingly, the discussion and analysis herein relates primarily to activities primarily conducted at the Bank level.
Previous wording
A consequence of lending activities is that we may incur credit losses. The amount of such losses will vary depending upon the risk characteristics of the loan lease portfolio as affected by economic conditions such as rising interest rates and the financial performance of borrowers.
Current wording
A consequence of lending activities is that we may incur credit losses. The amount of such losses will vary depending upon the risk characteristics of the loan lease portfolio as affected by economic conditions including, among others, volatility in rising interest rates and the financial performance of borrowers.
Previous wording
The estimate of expected credit losses under the CECL approach is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. We then consider whether the historical loss experience should be adjusted for loan-specific risk characteristics or current conditions at the reporting date that did not exist over the period from which historical experience was used. Finally, we consider forecasts about future economic conditions that are reasonable and supportable. The allowance for unfunded commitments represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit. This allowance is estimated by loan segment at each balance sheet date under the CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur.
Current wording
The reserve for credit losses consists of the allowance for credit losses (“ACL”) and the allowance for unfunded commitments. We estimate the reserve for credit losses using the Current Expected Credit Losses (“CECL”) model, which is based on an expected loss methodology. The estimate of expected credit losses under the CECL approach is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. We then consider whether the historical loss experience should be adjusted for loan-specific risk characteristics or current conditions at the reporting date that did not exist over the period from which historical experience was used. Finally, we consider forecasts about future economic conditions that are reasonable and supportable. The allowance for unfunded commitments represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit. This allowance is estimated by loan segment at each balance sheet date under the CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur.
Previous wording
Management’s evaluation of the appropriateness of the reserve for credit losses is often the most critical of accounting estimates for a financial institution. Our determination of the amount of the reserve for credit losses is a critical accounting estimate as it requires the use of estimates and significant judgment as to the amount and timing of expected future cash flows, reliance on historical loss rates on homogenous portfolios, consideration of our quantitative and qualitative evaluation of economic factors, and the reliance on our reasonable and supportable forecasts. The reserve for credit losses attributable to each portfolio segment also includes an amount for inherent risks not reflected in the historical analyses. Relevant factors include, but are not limited to, concentrations of credit risk (geographic, large borrower, and industry),
Current wording
estimate as it requires the use of estimates and significant judgment as to the amount and timing of expected future cash flows, reliance on historical loss rates on homogenous portfolios, consideration of our quantitative and qualitative evaluation of economic factors, and the reliance on our reasonable and supportable forecasts. The reserve for credit losses attributable to each portfolio segment also includes an amount for inherent risks not reflected in the historical analyses. Relevant factors include, but are not limited to, concentrations of credit risk (geographic, large borrower, and industry), changes in underwriting standards, changes in collateral values, experience and depth of lending staff, trends in delinquencies, and the volume and terms of loans.
Previous wording
We recorded net income of $51.6 million for the year ended December 31, 2023 compared to $62.6 million for the year ended December 31, 2022, a decrease of $11.0 million, or 17.6%. The decrease was due to a $18.1 million decrease in net interest income and a $2.8 million increase in provision for credit losses, offset by a $8.3 million decrease in provision for income taxes, a $1.6 million decrease in noninterest expense and an $86,000 increase noninterest income.
Current wording
We recorded net income of $68.5 million for the year ended December 31, 2025 compared to $64.5 million for the year ended December 31, 2024, an increase of $4.0 million, or 6.2%. The increase was due to an increase in net interest income of $12.3 million, an increase in noninterest income of $2.1 million and a decrease in provision for credit losses of
Previous wording
Basic and diluted earnings per common share for the year ended December 31, 2023 was $2.05 and $2.02, respectively, compared to $2.46 and $2.44 for the basic and diluted earnings per common share for the year ended December 31, 2022.
Current wording
Basic and diluted earnings per common share for the year ended December 31, 2025 was $2.66 and $2.64, respectively, compared to $2.55 and $2.52 for the basic and diluted earnings per common share for the year ended December 31, 2024.
Previous wording
Net interest income for the year ended December 31, 2023 was $101.5 million compared to $119.6 million for the year ended December 31, 2022, a decrease of $18.1 million, or 15.2%. Interest income totaled $192.8 million for the year ended December 31, 2023, an increase of $45.6 million, or 31.0%, from the year ended December 31, 2022, primarily due to an 82 basis points increase in the yield on average loans coupled with a $274.3 million increase in average loans. Average earning assets increased by $213.3 million, primarily due to an increase of $274.3 million in average loans, offset by a decrease of $61.0 million in average investment securities, fed funds sold and interest-bearing cash accounts. The increase in average loans included increases of $208.9 million in average residential real estate loans and $70.4 million in average commercial real estate loans, offset by decreases of $3.6 million in average construction and development loans and $1.4 million in average commercial and industrial loans.
Current wording
Net interest income for the year ended December 31, 2025 was $130.4 million compared to $118.1 million for the year ended December 31, 2024, an increase of $12.3 million, or 10.4%. Interest income totaled $220.8 million for the year ended December 31, 2025, an increase of $7.9 million, or 3.7%, from the year ended December 31, 2024, primarily due to a $119.1 million increase in average loans coupled with a four basis points increase in the yield on average loans. Average earning assets increased by $148.9 million, due to increases of $119.1 million in average loans, $22.4 million in average fed funds sold and interest-bearing cash accounts and $7.5 million in average investment securities. The increase
Previous wording
Interest expense for the year ended December 31, 2023 increased $63.7 million, or 230.9%, to $91.3 million compared to interest expense of $27.6 million for the year ended December 31, 2022. This increase is primarily attributable to a $263.4 million increase in average deposit balances and a 256 basis points increase in deposit costs, which includes a 279 basis points increase in the average yield on money market deposits and a 258 basis points increase in the average yield on time deposits. Average borrowings outstanding for the year ended December 31, 2023 decreased by $20.1 million with an increase in rate of 195 basis points compared to the year ended December 31, 2022.
Current wording
Interest expense for the year ended December 31, 2025 decreased $4.4 million, or 4.6%, to $90.4 million compared to interest expense of $94.8 million for the year ended December 31, 2024. This decrease was primarily attributable to decreases of 66 basis points and 18 basis points in time deposits and money market costs, respectively. These decreases to deposit interest expense were offset by a 20 basis points increase to the yield on interest-bearing demand deposits coupled with a $47.3 million increase in average interest-bearing demand deposits. Average borrowings outstanding for the year ended December 31, 2025 increased by $57.9 million with an increase in rate of 10 basis points compared to the year ended December 31, 2024.
Previous wording
The Company currently has interest rate derivative agreements totaling $850.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Federal Funds Effective rate. The weighted average pay rate for these interest rate derivatives is 2.29%. During the year ended December 31, 2024, we recorded a credit to interest expense of $22.1 million from the benefit received on these interest rate derivatives compared to a credit to interest expense of $5.4 million recorded during the year ended December 31, 2023. Based on the Federal Funds Effective rate as of December 31, 2024 (4.33%), the Company would estimate to record a credit to interest expense of $16.2 million during 2025 from the benefit received on these interest rate derivatives. See Note 10 of our consolidated financial statements as of December 31, 2024, included elsewhere in this Annual Report on Form 10-K, for additional information on these interest rate derivatives.
Current wording
The Company has interest rate derivative agreements totaling $825.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Federal Funds Effective rate. The weighted average pay rate for these interest rate derivatives is 2.62%. During the year ended December 31, 2025, we recorded a credit to interest expense of $15.1 million from the benefit received on these interest rate derivatives compared to a credit to interest expense of $22.1 million recorded during the year ended December 31, 2024. Based on the Federal Funds Effective rate as of December 31, 2025 (3.64%), the Company would estimate to record a credit to interest expense of $5.9 million during 2026 from the benefit received on these interest rate derivatives. See Note 11 of our consolidated financial statements as of December 31, 2025, included elsewhere in this Annual Report on Form 10-K, for additional information on these interest rate derivatives.
Previous wording
3.73% from 1.25%, while the yield on interest-earning assets increased by 108 basis points to 5.94% from 4.86% for the previous year. Average earning assets increased by $213.3 million, primarily due to an increase of $274.3 million in average loans, offset by a decrease of $61.0 million in average total investments. Average interest-bearing liabilities increased by $243.4 million as average interest-bearing deposits increased by $263.4 million while average borrowings decreased by $20.1 million.
Current wording
The net interest margin for the year ended December 31, 2025 was 3.72% compared to 3.51% for the year ended December 31, 2024, an increase of 21 basis points. The cost of interest-bearing liabilities decreased by 31 basis points to 3.41% from 3.72% for the previous year while the yield on interest-earning assets decreased by four basis points to 6.29% from 6.33%, for the previous year. Average earning assets increased by $148.9 million, primarily due to an increase of $119.1 million in average loans and an increase of $29.8 million in average total investments. Average interest-bearing liabilities increased by $99.9 million as average interest-bearing deposits increased by $42.0 million and average borrowings increased by $57.9 million.
Previous wording
The Company has interest rate derivative agreements totaling $850.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Federal Funds Effective rate. The weighted average pay rate for these interest rate derivatives is 2.29%. During the year ended December 31, 2023, we recorded a credit to interest expense of $5.4 million from the benefit received on these interest rate derivatives compared to $287,000 of interest expense recorded during the year ended December 31, 2022. Of the $850.0 million interest rate derivatives, only $500.0 million were making payments as of December 31, 2023 and the remaining $350.0 million will begin making payments in the second quarter of 2024.
Current wording
The Company currently has interest rate derivative agreements totaling $850.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Federal Funds Effective rate. The weighted average pay rate for these interest rate derivatives is 2.29%. During the year ended December 31, 2024, we recorded a credit to interest expense of
Previous wording
The provision for credit losses reflects our internal calculation and judgment of the appropriate amount of the allowance for credit losses. The adoption of ASU No. 2016-13,“Measurement of Credit Losses on Financial Instruments” or “CECL” has significantly changed the methodology of how we measure credit losses (see Note 1 to the Consolidated Financial Statements for more information). We maintain the allowance for credit losses at levels we believe are appropriate to cover our estimate of expected credit losses over the life of loans in the portfolio as of the end of the reporting period. The allowance for credit losses is determined through detailed quarterly analyses of our loan portfolio. The allowance for credit losses is based on our loss experience, changes in the economic environment, reasonable and supportable forecasts, as well as an ongoing assessment of credit quality and environmental factors not reflective in historical loss rates. Additional qualitative factors that are considered in determining the amount of the allowance for credit losses are concentrations of credit risk (geographic, large borrower, and industry), changes in underwriting standards, changes in collateral value, experience and depth of lending staff, trends in delinquencies, and the volume and terms of loans.
Current wording
The provision for credit losses reflects our internal calculation and judgment of the appropriate amount of the allowance for credit losses. The adoption of ASU No. 2016-13,“Measurement of Credit Losses on Financial Instruments” or “CECL” and most recently ASU No. 2025-08, “Purchased Loans” significantly changed the methodology of how we measure credit losses (see Note 1 to the Consolidated Financial Statements for more information). We maintain the allowance for credit losses at levels we believe are appropriate to cover our estimate of expected credit losses over the life of loans in the portfolio as of the end of the reporting period. The allowance for credit losses is determined through detailed quarterly analyses of our loan portfolio. The allowance for credit losses is based on our loss experience, changes in the economic environment, reasonable and supportable forecasts, as well as an ongoing assessment of credit quality and environmental factors not reflective in historical loss rates. Additional qualitative factors that are considered in determining the amount of the allowance for credit losses are concentrations of credit risk (geographic, large borrower, and industry), changes in underwriting standards, changes in collateral value, experience and depth of lending staff, trends in delinquencies, and the volume and terms of loans.
Previous wording
We recorded a credit provision for credit losses of $15,000 during the year ended December 31, 2023 compared to a credit provision of $2.8 million recorded during the year ended December 31, 2022. The credit provision recorded during the year ended December 31, 2023 was due to the decrease in reserves allocated to individually analyzed loans, as well as a decrease in the general reserves allocated to our residential mortgage loan portfolio as the outlook for the national housing price index improved during 2023, offset by general reserves allocated for the increase in loan balances during the year. Our allowance for credit losses as a percentage of gross loans for the periods ended December 31, 2023 and 2022 was 0.57% and 0.45%, respectively. Our allowance for credit losses as a percent of gross loans is relatively lower than our peers due to our high percentage of residential mortgage loans, which tend to have lower allowance for credit loss ratios compared to other commercial or consumer loans due to their low LTVs.
Current wording
We recorded a credit to the provision for credit losses of $318,000 during the year ended December 31, 2025 compared to provision expense of $516,000 recorded during the year ended December 31, 2024. The credit provision recorded during the year ended December 31, 2025 was primarily due to the decrease in the general reserves allocated to our residential real estate and commercial and industrial legacy loan portfolios due to lower loan balances, as well as the decrease in reserves allocated to individually analyzed legacy loans, offset by an increase in the general reserves allocated to our commercial real estate legacy loans due to higher balances. Our allowance for credit losses as a percentage of gross loans for the periods ended December 31, 2025 and 2024 was 0.68% and 0.59%, respectively. Our allowance for credit losses as a percent of gross loans is relatively lower than our peers due to our high percentage of residential mortgage loans, which tend to have lower allowance for credit loss ratios compared to other commercial or consumer loans due to their low LTVs.
Previous wording
Other service charges, commissions and fees decreased $4.1 million, or 41.8%, to $5.7 million for the year ended December 31, 2023 compared to $9.7 million for the year ended December 31, 2022. The decrease is mainly attributable to lower underwriting, processing and origination fees earned from our origination of residential mortgage loans as mortgage volume declined during the year ended December 31, 2023 compared to the year ended December 31, 2022. Mortgage loan originations totaled $337.0 million during the year ended December 31, 2023 compared to $833.6 million during the year ended December 31, 2022.
Current wording
Other service charges, commissions and fees increased $492,000, or 7.2%, to $7.3 million for the year ended December 31, 2025 compared to $6.8 million for the year ended December 31, 2024. The increase is mainly attributable to higher underwriting, processing and origination fees earned from our origination of residential mortgage loans as
Previous wording
Total gain on sale of loans was $3.3 million for the year ended December 31, 2023 compared to $4.1 million for the year ended December 31, 2022, a decrease of $786,000, or 19.2%.
Current wording
Total gain on sale of loans was $6.3 million for the year ended December 31, 2025 compared to $4.9 million for the year ended December 31, 2024, an increase of $1.4 million, or 29.1%.
Previous wording
We recorded no gain on sale of residential mortgage loans during the year ended December 31, 2023 as no residential mortgage loans were sold during the period. Gain on sale of residential loans totaled $2.0 million for the year ended December 31, 2022 as we sold $94.9 million in residential mortgage loans during the period with an average premium of 2.13%.
Current wording
Gain on sale of residential loans totaled $4.0 million for the year ended December 31, 2025 as we sold $310.2 million in residential mortgage loans during the period with an average premium of 1.35% compared to the sale of $187.5 million in residential mortgage loans with an average premium of 1.05% during the year ended December 31, 2024.
Previous wording
Gain on sale of SBA loans totaled $3.3 million for the year ended December 31, 2023 compared to $2.1 million for the year ended December 31, 2022. We sold $72.9 million in SBA loans during the year ended December 31, 2023 with average premiums of 6.09% compared to the sale of $31.5 million in SBA loans with an average premium of 8.45% in the year ended December 31, 2022.
Current wording
Gain on sale of SBA loans totaled $2.3 million for the year ended December 31, 2025 compared to $2.9 million for the year ended December 31, 2024. We sold $60.5 million in SBA loans during the year ended December 31, 2025 with average premiums of 6.08% compared to the sale of $72.2 million in SBA loans with an average premium of 6.57% in the year ended December 31, 2024.
Previous wording
Mortgage loan servicing income had an expense balance of $193,000 for the year ended December 31, 2023 compared to an expense balance of $561,000 for the year ended December 31, 2022, an increase of $368,000, or 65.6%. The change in mortgage loan servicing income was primarily due to the decrease in mortgage servicing amortization, offset by decreases in mortgage servicing fees and capitalized mortgage servicing assets. Included in mortgage loan servicing income for the year ended December 31, 2023 was $2.5 million in mortgage servicing fees compared to $3.2 million for 2022, and capitalized mortgage servicing assets of $0 for the year ended December 31, 2023 compared to $761,000 for 2022. These amounts were offset by mortgage loan servicing asset amortization of $2.7 million for the year ended December 31, 2023 compared to $4.7 million for the year ended December 31, 2022. During the year ended December 31, 2023, we did not record a fair value impairment on our mortgage servicing assets. During the year ended December 31, 2022, we recorded a fair value impairment recovery of $163,000. Our total residential mortgage loan servicing portfolio was $443.1 million at December 31, 2023 compared to $526.7 million at December 31, 2022.
Current wording
Mortgage loan servicing income was $2.4 million for both the year ended December 31, 2025 and 2024. Included in mortgage loan servicing income for the year ended December 31, 2025 was $2.2 million in mortgage servicing fees compared to $2.3 million for 2024, and capitalized mortgage servicing assets of $812,000 for the year ended December 31, 2025 compared to $1.2 million for 2024. These amounts were offset by mortgage loan servicing asset amortization of $581,000 for the year ended December 31, 2025 compared to $1.1 million for the year ended December 31, 2024. During the year ended December 31, 2025, we recorded a fair value impairment recovery of $20,000 on our mortgage servicing assets compared to a fair value impairment of $20,000 on our mortgage servicing assets recorded during 2024. Our total residential mortgage loan servicing portfolio was $702.6 million at December 31, 2025 compared to $527.0 million at December 31, 2024. The increase in the residential mortgage servicing portfolio is due to the sale of $310.2 million of residential mortgage loans during the year. There were no residential mortgage loans serviced for others acquired from First IC.
Previous wording
SBA servicing income was $4.8 million for the year ended December 31, 2023 compared to $1.8 million for the year ended December 31, 2022, an increase of $3.0 million, or 162.8%. Our total SBA and USDA loan servicing portfolio was $508.0 million as of December 31, 2023 compared to $465.1 million as of December 31, 2022. SBA servicing fees totaled $4.6 million for the year ended December 31, 2023 compared to $5.0 million for the year ended December 31, 2022. Our SBA servicing rights are carried at fair value and inputs used to calculate fair value change from period to period. During the year ended December 31, 2023, we recorded a $201,000 fair value gain on our SBA servicing rights compared to a $3.1 million fair value adjustment charge on our SBA servicing rights during the year ended December 31, 2022.
Current wording
SBA servicing income was $3.6 million for the year ended December 31, 2025 compared to $4.2 million for the year ended December 31, 2024, a decrease of $685,000, or 16.1%. Our total SBA and USDA loan servicing portfolio was $685.5 million as of December 31, 2025 compared to $479.7 million as of December 31, 2024. The increase in our SBA and USDA loan servicing portfolio is attributable to the SBA loans acquired from First IC. SBA servicing fees totaled $4.1 million for the year ended December 31, 2025 compared to $4.2 million for the year ended December 31, 2024. Our SBA servicing rights are carried at fair value and inputs used to calculate fair value change from period to period. During the year ended December 31, 2025, we recorded a $521,000 fair value loss on our SBA servicing rights compared to a $29,000 fair value gain on our SBA servicing rights during the year ended December 31, 2024.
Previous wording
Other noninterest income was $2.7 million for the year ended December 31, 2023 compared to $1.1 million for the year ended December 31, 2022, an increase of $1.7 million, or 159.0%. The largest component of other noninterest income is the income on bank owned life insurance, which totaled $1.8 million and $1.7 million, respectively, for the years ended December 31, 2023 and 2022. Also included in other noninterest income are fair value gains/losses on our equity securities, which totaled $35,000 (gain) and $1.1 million (loss), respectively, for the years ended December 31, 2023 and 2022.
Current wording
Other noninterest income was $3.3 million for the year ended December 31, 2025 compared to $2.6 million for the year ended December 31, 2024, an increase of $673,000, or 26.0%. The largest component of other noninterest income is the income on bank owned life insurance, which totaled $2.5 million and $2.3 million, respectively, for the years ended December 31, 2025 and 2024. Also included in other noninterest income are fair value gains/losses on our equity securities, which totaled $346,000 (gain) and $35,000 (loss), respectively, for the years ended December 31, 2025 and 2024.
Previous wording
Mortgage loan servicing income was $2.4 million for the year ended December 31, 2024 compared to an expense balance of $193,000 for the year ended December 31, 2023, an increase of $2.6 million, or 1368.4%. The change in mortgage loan servicing income was primarily due to the decrease in mortgage servicing amortization and an increase in capitalized mortgage servicing assets, partially offset by the decrease in mortgage servicing fees. Included in mortgage loan servicing income for the year ended December 31, 2024 was $2.3 million in mortgage servicing fees compared to $2.5 million for 2023, and capitalized mortgage servicing assets of $1.2 million for the year ended December 31, 2024 compared to $0 for 2023. These amounts were offset by mortgage loan servicing asset amortization of $1.1 million for the year ended December 31, 2024 compared to $2.7 million for the year ended December 31, 2023. During the year ended December 31, 2024, we recorded a fair value impairment of $20,000 on our mortgage servicing assets compared to no fair value impairment recorded during 2023. Our total residential mortgage loan servicing portfolio was $527.0 million at December 31, 2024 compared to $443.1 million at December 31, 2023.
Current wording
Mortgage loan servicing income was $2.4 million for the year ended December 31, 2024 compared to mortgage loan servicing expense of $193,000 for the year ended December 31, 2023, an increase of $2.6 million year over year. The change in mortgage loan servicing income was primarily due to the decrease in mortgage servicing amortization and an increase in capitalized mortgage servicing assets, partially offset by the decrease in mortgage servicing fees. Included in mortgage loan servicing income for the year ended December 31, 2024 was $2.3 million in mortgage servicing fees compared to $2.5 million for 2023, and capitalized mortgage servicing assets of $1.2 million for the year ended December 31, 2024 compared to $0 for 2023. These amounts were offset by mortgage loan servicing asset amortization of $1.1 million for the year ended December 31, 2024 compared to $2.7 million for the year ended December 31, 2023. During the year ended December 31, 2024, we recorded a fair value impairment of $20,000 on our mortgage servicing assets compared to no fair value impairment recorded during 2023. Our total residential mortgage loan servicing portfolio was $527.0 million at December 31, 2024 compared to $443.1 million at December 31, 2023.
Previous wording
Salaries and employee benefits expense for the year ended December 31, 2023 was $29.3 million compared to $30.5 million for the year ended December 31, 2022, a decrease of $1.2 million, or 3.9%. This decrease was primarily attributable to lower commissions paid to our loan officers as loan volume declined during the year ended December 31, 2023. These decreases were offset by higher employee salaries and benefits due to the increase in the overall number of employees necessary to support our continued growth and annual salary adjustments, as well as increased restricted stock expense. The average number of full-time equivalent employees was 220 for the year ended December 31, 2023 compared to 216 for the year ended December 31, 2022.
Current wording
Salaries and employee benefits expense for the year ended December 31, 2025 was $36.7 million compared to $33.2 million for the year ended December 31, 2024, an increase of $3.5 million, or 10.4%. This increase was primarily attributable to higher employee salaries partially due annual salary adjustments and the addition of the First IC employees, higher commissions paid from higher loan volume, and increased employee insurance costs and stock based compensation. The average number of full-time equivalent employees was 252 for the year ended December 31, 2025 compared to 240 for the year ended December 31, 2024.
Previous wording
Data processing expense for the years ended December 31, 2023 was $1.2 million compared to $1.1 million for the year ended December 31, 2022, an increase of $134,000, or 12.2%. The increase was consistent with the continued growth of our loans and deposits.
Current wording
Data processing expense for the year ended December 31, 2025 was $1.5 million compared to $1.3 million for the year ended December 31, 2024, an increase of $241,000, or 18.6%. The increase was partially attributable to the First IC acquisition.
Previous wording
Other expenses for the year ended December 31, 2023 were $11.7 million compared to $12.2 million for the year ended December 31, 2022, a decrease of $533,000, or 4.4%. The decrease was primarily due to lower loan related expenses, communications expense, security expense and business taxes, offset by higher FDIC deposit insurance premiums, professional fees, mobile and internet banking expenses, and other real estate owned expenses. Included in other expenses were directors’ fees of $617,000 and $565,000 for the years ended December 31, 2023 and 2022, respectively.
Current wording
Other expenses for the year ended December 31, 2025 were $13.9 million compared to $12.7 million for the year ended December 31, 2024, an increase of $1.2 million, or 9.1%. The increase was primarily due to higher expenses related to security, loans and professional services, partially offset by lower other real estate owned expenses. Included in other expenses were directors’ fees of $761,000 and $645,000 for the years ended December 31, 2025 and 2024, respectively.
Previous wording
Income tax expense for the years ended December 31, 2024, 2023 and 2022 was $22.8 million, $20.4 million and $28.6 million, respectively. The Company’s effective tax rates for the years ended December 31, 2024, 2023 and 2022 were 26.1%, 28.3% and 31.4%, respectively. The decrease in the effective tax rate during 2024 was partially due to a tax provision to tax return adjustment recorded for our 2023 state tax returns filed during the third and fourth quarter of 2024. The elevated effective tax rate for the year ended December 31, 2022 was due to the re-allocation of state income tax apportionment schedules from prior year tax returns, as well as corrections for the treatment of prior year’s state tax credits.
Current wording
Income tax expense for the years ended December 31, 2025, 2024 and 2023 was $24.2 million, $22.8 million and $20.4 million, respectively. The Company’s effective tax rates for the years ended December 31, 2025, 2024 and 2023 were 26.1%, 26.1% and 28.3%, respectively. The decrease in the effective tax rate during 2024 compared to 2023 was partially due to a tax provision to tax return adjustment recorded for our 2023 state tax returns filed during the third and fourth quarter of 2024.
Previous wording
We had a net deferred tax asset of $158,000 at December 31, 2024, a net deferred tax liability of $2.3 million at December 31, 2023 and net deferred tax liability of $1.6 million at December 31, 2022.
Current wording
We had a net deferred tax asset of $6.0 million at December 31, 2025, a net deferred tax asset of $158,000 at December 31, 2024 and net deferred tax liability of $2.3 million at December 31, 2023.
Previous wording
Total assets increased $91.2 million, or 2.6%, to $3.59 billion at December 31, 2024 as compared to $3.50 billion at December 31, 2023. The increase in total assets was primarily attributed to increases in cash and due from banks of $94.2 million, loans held for investment of $15.8 million, federal funds sold of $10.9 million, Federal Home Loan Bank stock of $2.4 million and bank owned life insurance of $2.3 million, partially offset by decreases in loans held for sale of $22.3 million and interest rate derivatives of $10.0 million.
Current wording
Total assets increased $1.17 billion, or 32.7%, to $4.77 billion at December 31, 2025 as compared to $3.59 billion at December 31, 2024. This increase was mainly due to the $1.19 billion of assets acquired from First IC as of December 31, 2025, including goodwill and core deposit intangibles. Exlcuding these acquired assets, legacy total assets were $3.57 billion at December 31, 2025, a decrease of $21.2 million, 0.6% compared to December 31, 2024. The $21.1 million decrease in total assets at December 31, 2025 compared to December 31, 2024 was primarily due to decreases in loans held for investment of $99.6 million and interest rate derivatives of $15.4 million, partially offset by increases in cash and due from banks of $64.5 million, other assets of $13.4 million, loans held for sale of $5.9 million, equity securities of $8.4 million, bank owned life insurance of $2.5 million and Federal Home Loan Bank stock of $2.4 million
Previous wording
Our investment securities portfolio made up only 0.77% of our total assets at December 31, 2024 compared to 0.82% at December 31, 2023.
Current wording
Our investment securities portfolio made up only 1.38% of our total assets at December 31, 2025 compared to 0.77% at December 31, 2024. The increase in our securities portfolio during 2025 was due to the securities acquired from First IC.
Previous wording
Our gross loans held for investment increased $14.4 million, or 0.5%, to $3.17 billion as of December 31, 2024 compared to $3.15 billion as of December 31, 2023. Our loan growth during the year ended December 31, 2024 was comprised of a decrease of $1.7 million, or 7.3%, in construction and development loans, an increase of $50.9 million, or 7.2%, in commercial real estate loans, an increase of $12.3 million, or 18.7%, in commercial and industrial loans, a decrease of $47.1 million, or 2.0%, in residential real estate loans and a decrease of $59,000, or 18.5%, in consumer and other loans. There were no loans classified as held for sale as of December 31, 2024 or 2022. Loans classified as held for sale totaled $22.3 million as of December 31, 2023.
Current wording
of an increase of $18.9 million, or 87.7%, in construction and development loans, an increase of $79.6 million, or 10.4%, in commercial real estate loans, a decrease of $4.6 million, or 5.9%, in commercial and industrial loans, a decrease of $190.3 million, or 8.3%, in residential real estate loans and an increase of $10,000, or 3.8%, in consumer and other loans. There were no loans classified as held for sale as of December 31, 2025 or 2024. Loans classified as held for sale totaled $22.3 million as of December 31, 2023.
Previous wording
Our loan portfolio is concentrated in commercial real estate and residential mortgage loans with the remaining balance in construction and development, commercial and industrial, and consumer loans. 97.5% of our gross loans held for investment were secured by real property as of December 31, 2024, compared to 97.9% as of December 31, 2023 and 98.3% as of December 31, 2022.
Current wording
Our loan portfolio is concentrated in commercial real estate and residential mortgage loans with the remaining balance in construction and development, commercial and industrial, and consumer loans. 97.6% of our gross loans held for investment were secured by real property as of December 31, 2025, compared to 97.5% as of December 31, 2024 and 97.9% as of December 31, 2023.
Previous wording
As of December 31, 2024, our construction and development loans comprised $21.6 million, or 0.7%, of total loans held for investment, compared to $23.3 million, or 0.7%, of total loans held for investment as of December 31, 2023. This compares to $47.8 million, or 1.6%, of total loans held for investment as of December 31, 2022.
Current wording
As of December 31, 2025, our construction and development loans comprised $41.8 million, or 1.0%, of total loans held for investment, compared to $21.6 million, or 0.7%, of total loans held for investment as of December 31, 2024. This compares to $23.3 million, or 0.7%, of total loans held for investment as of December 31, 2023.
Previous wording
Commercial real estate loans. Commercial real estate loans include owner-occupied and non-owner occupied commercial real estate. We require our commercial real estate loans to be secured by what we believe to be well-managed property with adequate margins and we generally obtain a personal guarantee from responsible parties. We originate both fixed-rate and adjustable-rate loans with terms up to 25 years. At December 31, 2024, approximately 92.0% of our commercial real estate loans were owner-occupied compared to 92.4% at December 31, 2023.
Current wording
Commercial real estate loans. Commercial real estate loans include owner-occupied and non-owner occupied commercial real estate. We require our commercial real estate loans to be secured by what we believe to be well-managed property with adequate margins and we generally obtain a personal guarantee from responsible parties. We originate both fixed-rate and adjustable-rate loans with terms up to 25 years.
Previous wording
As of December 31, 2024, our loans secured by commercial real estate were $762.0 million, or 24.1%, of total loans held for investment compared to $711.2 million, or 22.6%, as of December 31, 2023. This increase was due to consistent loan production and market demand for these types of loans. Commercial real estate loans were $657.2 million, or 21.4%, of our portfolio as of December 31, 2022. Our non-owner occupied commercial real estate loans make up a small percentage of our overall commercial real estate loan portfolio. Non-owner occupied commercial real estate loans were 8.0%, 7.6%, and 10.4%, as a percentage of commercial real estate loans for the years ending December 31, 2024, 2023, and 2022, respectively.
Current wording
As of December 31, 2025, our loans secured by commercial real estate were $1.56 billion, or 38.3%, of total loans held for investment compared to $762.0 million, or 24.1%, as of December 31, 2024. This increase was mainly due to the $719.1 million of commercial real estate loans acquired from First IC coupled with organic growth of $79.6 million of newly originated and renewed legacy commercial real estate loans. Commercial real estate loans were $711.2 million, or 22.6%, of our portfolio as of December 31, 2023. Our non-owner occupied commercial real estate loans has historically made up a small percentage of our overall commercial real estate loan portfolio. Non-owner occupied commercial real estate loans were 8.0%, and 7.6%, as a percentage of commercial real estate loans for the years ending December 31, 2024 and 2023, respectively. During 2025, our non-owner occupied commercial real estate increased to 49.3% as a percentage of commercial real estate loans as of December 31, 2025. This increase was partially due to the reclassification of our legacy hotel loan portfolio from owner occupied to non-owner occupied coupled with the $347.4 million of non-owner occupied commercial real estate acquired from First IC. Of the $769.6 million of non-owner occupied commercial real estate loans as of December 31, 2025, $600.3 million, or 78.0% were hotel loans, which carried a weighted average LTV of 55.6%. At December 31, 2025, approximately 50.7% of our commercial real estate loans were owner-occupied compared to 92.0% at December 31, 2024.
Previous wording
We originate both fixed and adjustable rate loans. Adjustable rate loans are based on the prime rate, SOFR or constant maturity treasury (“CMT”). At December 31, 2024 and 2023, approximately 12.0% and 28.9% of the commercial real estate portfolio consisted of fixed-rate loans, respectively. Our policy maximum LTV is 85% for commercial real estate loans. However, our weighted average LTV is well below this policy maximum. Newly originated and renewed non-SBA commercial real estate loans for the years ending December 31, 2024 and 2023 carried a weighted average LTV of 53.5% and 46.4%, respectively.
Current wording
We originate both fixed and adjustable rate loans. Adjustable rate loans are based on the prime rate, SOFR or constant maturity treasury (“CMT”). At December 31, 2025 and 2024, approximately 21.6% and 12.0% of the commercial real estate portfolio consisted of fixed-rate loans, respectively. Our policy maximum LTV is 85% for commercial real estate loans. However, our weighted average LTV is well below this policy maximum. Newly originated and renewed non-SBA commercial real estate loans for the years ending December 31, 2025 and 2024 carried a weighted average LTV of 51.8% and 53.5%, respectively.
Previous wording
Commercial and industrial loans. We provide a mix of variable and fixed rate commercial and industrial loans. The loans are typically made to small and medium-sized businesses for working capital needs, business expansions and for trade financing. We extend commercial business loans on an unsecured and secured basis for working capital, accounts receivable and inventory financing, machinery and equipment purchases, and other business purposes. Generally, short-term loans have maturities ranging from six months to one year, and “term loans” have maturities ranging from five to ten years. Loans are generally intended to finance current transactions and typically provide for periodic principal payments, with interest payable monthly. Term loans generally provide for floating interest rates, with monthly payments of both principal and interest.
Current wording
trade financing. We extend commercial business loans on an unsecured and secured basis for working capital, accounts receivable and inventory financing, machinery and equipment purchases, and other business purposes. Generally, short-term loans have maturities ranging from six months to one year, and “term loans” have maturities ranging from five to ten years. Loans are generally intended to finance current transactions and typically provide for periodic principal payments, with interest payable monthly. Term loans generally provide for floating interest rates, with monthly payments of both principal and interest.
Previous wording
As of December 31, 2024, our commercial and industrial loans comprised $78.2 million, or 2.5%, of total loans held for investment, compared to $65.9 million, or 2.1% of total loans held for investment as of December 31, 2023. This increase was due to consistent loan production and market demand for these types of loans. This compares to $53.2 million, or 1.7%, of total loans held for investment as of December 31, 2022.
Current wording
As of December 31, 2025, our commercial and industrial loans comprised $96.4 million, or 2.4%, of total loans held for investment, compared to $78.2 million, or 2.5% of total loans held for investment as of December 31, 2024. This increase was mainly due the $22.8 million of commercial and industrial loans acquired from First IC. This compares to $65.9 million, or 2.1%, of total loans held for investment as of December 31, 2023.
Previous wording
A large portion of both our commercial real estate and commercial and industrial loans are SBA loans. We are designated an SBA Preferred Lender under the SBA Preferred Lender Program. We offer mostly SBA 7(a) variable-rate loans. We have historically sold the guaranteed portion (75%-90%) of the SBA loans that we originate. Our SBA loans are typically made to small-sized retail, hotel/motel, service and distribution businesses for working capital needs or business expansions. SBA loans have maturities up to 25 years. Typically, non-real estate secured loans mature in less than 10 years. Collateral may also include inventory, accounts receivable and equipment, and may include personal guarantees. Our unguaranteed SBA loans collateralized by real estate are monitored by collateral type and included in our CRE Concentration Guidance. As of December 31, 2024, our SBA and USDA portfolio totaled $277.0 million compared to $286.9 million as of December 31, 2023. This decrease was primarily the result of prepayments on existing SBA loans during 2024. We originated and sold $90.8 million and $72.2 million of SBA loans during the year ended December 31, 2024 compared to originations and sales of $88.1 million and $72.9 million for the year ended December 31, 2023. We originated and sold $136.7 million and $31.5 million of SBA loans during the year ended December 31, 2022.
Current wording
A large portion of both our commercial real estate and commercial and industrial loans are SBA loans. We are designated an SBA Preferred Lender under the SBA Preferred Lender Program. We offer mostly SBA 7(a) variable-rate loans. We have historically sold the guaranteed portion (typically 75%) of the SBA loans that we originate. Our SBA loans are typically made to small-sized retail, hotel/motel, service and distribution businesses for working capital needs or business expansions. SBA loans have maturities up to 25 years. Typically, non-real estate secured loans mature in less than 10 years. Collateral may also include inventory, accounts receivable and equipment, and may include personal guarantees. Our unguaranteed SBA loans collateralized by real estate are monitored by collateral type and included in our CRE Concentration Guidance. As of December 31, 2025, our SBA and USDA portfolio totaled $482.2 million, compared to $277.0 million as of December 31, 2024. This increase was primarily attributed to $208.7 million of SBA loans acquired from First IC. We originated and sold $100.1 million and $60.5 million of SBA loans during the year ended December 31, 2025 compared to originations and sales of $90.8 million and $72.2 million for the year ended December 31, 2024. We originated and sold $88.1 million and $72.9 million of SBA loans during the year ended December 31, 2023.
Previous wording
From our total SBA and USDA loan portfolio of $277.0 million at December 31, 2024, $248.6 million is secured by real estate and $28.5 million is unsecured or secured by business assets, which we classify as commercial and industrial loans.
Current wording
From our total SBA and USDA loan portfolio of $482.2 million at December 31, 2025, $439.8 million is secured by real estate and $42.4 million is unsecured or secured by business assets, which we classify as commercial and industrial loans.
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Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Management’s evaluation of the appropriateness of the reserve for credit losses is often the most critical of accounting estimates for a financial institution. Our determination of the amount of the reserve for credit losses is a critical accounting
Current report — wording carried from elsewhere
$834,000, offset by an increase in noninterest expense of $9.9 million and an increase in income tax expense of $1.4 million.
Current report — wording carried from elsewhere
in average loans included increases of $127.7 million in average commercial real estate loans, $11.9 million in average construction and development loans and $5.9 million in average commercial and industrial loans, offset by a decrease of $26.5 million in average residential real estate loans.
Current report — wording carried from elsewhere
$22.1 million from the benefit received on these interest rate derivatives compared to a credit to interest expense of $5.4 million recorded during the year ended December 31, 2023.
Current report — wording carried from elsewhere
mortgage volume increased during the year ended December 31, 2025 compared to the year ended December 31, 2024. Mortgage loan originations totaled $464.6 million during the year ended December 31, 2025 compared to $413.7 million during the year ended December 31, 2024.
Current report — wording carried from elsewhere
Year ended December 31, 2024 compared to year ended December 31, 2023
Current report — wording carried from elsewhere
Commercial and industrial loans. We provide a mix of variable and fixed rate commercial and industrial loans. The loans are typically made to small and medium-sized businesses for working capital needs, business expansions and for
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
The reserve for credit losses consists of the allowance for credit losses (“ACL”) and the allowance for unfunded commitments. As a result of our January 1, 2023 adoption of ASU No. 2016-13, and its related amendments, our methodology for estimating the reserve for credit losses changed significantly from December 31, 2022. The standard replaced the “incurred loss” approach with an “expected loss” approach known as the Current Expected Credit Losses (“CECL”). The CECL approach requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures). It removes the incurred loss approach’s threshold that delayed the recognition of a credit loss until it was “probable” a loss event was “incurred.”
Previous report — wording carried elsewhere
changes in underwriting standards, changes in collateral values, experience and depth of lending staff, trends in delinquencies, and the volume and terms of loans.
Previous report — wording carried elsewhere
We maintain a reserve for credit losses that consist of two components, the allowance for credit losses (ACL) on funded loans and the ACL for unfunded commitments, The allowance for credit losses provides for the risk of credit losses expected in our loan portfolio and is based on loss estimates derived from a comprehensive quarterly evaluation. The evaluation reflects analyses of individual borrowers coupled with analysis of historical loss experience in various loan