CoastalSouth Bancshares, Inc. Reports Earnings for Fourth Quarter 2025

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Key Terms

roaa financial

Return on Average Assets (ROAA) measures how efficiently a company turns its assets into profit by dividing net profit over a period by the average total assets it held during that period. It matters to investors because it shows whether a business is getting a good return from what it owns—like judging a car’s fuel efficiency by miles per gallon—helping compare profitability across companies of different sizes.

roae financial

ROAE stands for Return on Average Equity, a profitability ratio that shows how much net income a company generates for its owners relative to the average amount of shareholder equity invested over a period. It’s like measuring the interest rate a business pays its owners on the capital they’ve left in the company, with the ‘average’ smoothing out swings in equity during the year. Investors use ROAE to compare how efficiently different companies turn owner capital into profits and to assess management’s ability to deliver returns over time.

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

efficiency ratio financial

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

nonperforming assets financial

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

01/20/2026 - 04:15 PM

ATLANTA--(BUSINESS WIRE)-- CoastalSouth Bancshares, Inc. (“CoastalSouth” or the “Company”) (NYSE: COSO), the holding company for Coastal States Bank (the “Bank” or "CSB"), today reported net income of $7.1 million, or $0.58 per diluted share, for the fourth quarter of 2025, compared to approximately $6.7 million, or $0.54 per diluted share, for the third quarter of 2025, and $5.7 million, or $0.54 per diluted share, for the fourth quarter of 2024. For the year ended December 31, 2025, the Company reported net income of $24.9 million, or $2.16 per diluted share, compared with $21.9 million, or $2.09 per diluted share, for the year ended December 31, 2024.

Commenting on the Company’s results, President and Chief Executive Officer, Stephen R. Stone stated, “We are pleased to report record net income for the year of $24.9 million and pre-tax pre-provision net revenue¹ ("PPNR") of $34.3 million, which is an increase of 23.6% compared to December 31, 2024. We also produced over $776.0 million in loan commitments and grew core deposits¹ by over $120.7 million."

Mr. Stone also announced the Company's strategic expansion into the Charleston, SC market. "This expansion builds upon the strong foundation we have established in the Lowcountry and reflects our continued investment in this dynamic region,” said Stone. "CSB has assembled a locally based commercial banking team with extensive experience serving businesses throughout Charleston and the broader Lowcountry market. The team we have assembled, led by Edward Vaughan, Charleston Market President, will help us continue to drive strong loan and deposit growth."

Fourth Quarter 2025 Performance Highlights:

Net income of $7.1 million or $0.58 per diluted share
Return on average assets ("ROAA") of 1.24%
Return on average equity ("ROAE") of 11.02%; Return on average tangible common equity¹ ("ROATCE") of 11.24%
Net interest margin of 3.60%, an increase of 2 basis points from the third quarter of 2025
Efficiency ratio of 55.34% for the fourth quarter of 2025
Loans held for investment ("LHFI") production² of $225.1 million during the fourth quarter of 2025 led to LHFI growth of $64.3 million, up 16.4% annualized from the third quarter of 2025
Book value per share growth of $0.75, or 14.23% annualized, to $21.66 at December 31, 2025; Tangible book value¹per share growth of $0.76, or 14.72% annualized, to $21.25 at December 31, 2025 from the third quarter of 2025
Total shareholders' equity to total assets of 11.25%, compared to 11.10% as of the third quarter of 2025; Tangible common equity¹ to tangible assets¹ of 11.06%, compared to 10.91% at September 30, 2025
Net charge-offs to average loans held for investment of 0.00%
Nonperforming assets to total assets of 0.79%; adjusted nonperforming assets to total assets¹ of 0.62%
Allowance for credit losses ("ACL") on LHFI to total LHFI of 1.16%; ACL on LHFI to nonperforming loans of 102.39%

Operating Highlights

Net interest income totaled $19.9 million for the fourth quarter of 2025, an increase of $673 thousand, or 3.5%, from $19.2 million for the third quarter of 2025 and an increase of $3.6 million, or 22.1% from the fourth quarter of 2024. The Company’s net interest margin expanded to 3.60% for the fourth quarter of 2025, a 2 basis point increase from the third quarter of 2025 and a 39 basis point increase from the fourth quarter of 2024.

The yield on average interest-earning assets for the fourth quarter of 2025 decreased to 5.98% from 6.14% for the third quarter of 2025. This decrease was primarily related to an overall yield decrease in all interest-earning assets, primarily due to the recent interest rate cuts, albeit a significant growth in average total earning assets. Compared to the fourth quarter of 2024, yields on earning assets decreased 4 basis points to 5.98% from 6.02%. The decrease was primarily attributable to the aforementioned interest rate cuts during 2025, offset by significant growth of $171.9 million in average total earning assets, primarily in LHFI.

The Company’s total cost of funds was 2.60% for the fourth quarter of 2025, a decrease of 19 basis points and 39 basis points compared with the third quarter of 2025 and fourth quarter of 2024, respectively. Deposit costs decreased 13 basis points during the fourth quarter of 2025 to 2.59%, compared to 2.72% in the third quarter of 2025. The cost of interest-bearing deposits decreased 14 basis points during the fourth quarter of 2025 to 3.09%, compared with 3.23% in the third quarter of 2025, reflecting continued repricing of certificates of deposits in the fourth quarter of 2025.

Noninterest income totaled $2.3 million for the fourth quarter of 2025, an increase of $195 thousand, or 9.3%, from the third quarter of 2025, primarily attributable to an increase in gain on sale of government guaranteed loans ("GGL"), service charges on deposits, mortgage banking related income and other noninterest income. Noninterest expense totaled $12.3 million for the fourth quarter of 2025, an increase of $406 thousand, or 3.4%, from the third quarter of 2025, primarily due to higher salaries and employee benefits; offset by decreases in other categories, primarily other professional services.

The Company’s effective tax rate for the fourth quarter of 2025 was 18.3%, compared to 23.2% for the third quarter of 2025 and 14.3% for the fourth quarter of 2024. The decrease in effective tax rate from the third quarter of 2025 was primarily due to a higher recognition of benefits from tax credits in the fourth quarter of 2025.

Balance Sheet Trends

Total assets were $2.31 billion at December 31, 2025, an increase of $207.9 million, or 9.9%, from $2.10 billion at December 31, 2024. Loans held for sale ("LHFS") were $170.9 million at December 31, 2025, a decrease of $3.1 million, or 1.8%, from $174.0 million at December 31, 2024. Gross LHFI were $1.62 billion at December 31, 2025, an increase of $207.9 million, or 14.7%, from $1.41 billion at December 31, 2024.

Total deposits were $1.99 billion at December 31, 2025, an increase of $152.9 million, or 8.3%, from $1.83 billion at December 31, 2024. Noninterest-bearing deposits were $312.3 million at December 31, 2025, or 15.7% of total deposits, compared to $302.9 million, or 16.5% of total deposits, at December 31, 2024. Brokered certificates of deposits, a component of time deposits, were $307.0 million at December 31, 2025, as compared to $274.9 million at December 31, 2024, an increase of $32.1 million, or 11.7%.

Credit Quality

During the fourth quarter of 2025, the Company recorded a provision for credit losses of $1.2 million, compared to $653 thousand and $1.2 million during the third quarter of 2025 and fourth quarter of 2024, respectively. The provision expense recorded during the fourth quarter of 2025 was due to increased loan production and other changes in loss rates and economic factors. The Company's annualized net charge-offs (recoveries) to average LHFI ratio was 0.00% for the fourth quarter of 2025 as compared to 0.03% and (0.02)% during the third quarter of 2025 and fourth quarter of 2024, respectively.

Nonperforming assets totaled $18.3 million, or 0.79% of total assets, at December 31, 2025 compared to $15.9 million, or 0.76% of total assets at December 31, 2024. The $2.4 million increase in nonperforming assets at December 31, 2025 from December 31, 2024 was primarily due to the transfer of one senior housing loan to nonaccrual. This is a construction loan for an assisted living facility that is approximately 92% complete and has a current loan-to-value of 55%. Adjusted nonperforming assets³, which excludes the guaranteed portions of nonaccrual loans, was $14.2 million, or 0.62% of total assets, at December 31, 2025 compared to $11.1 million, or 0.53% of total assets, at December 31, 2024.

About CoastalSouth Bancshares, Inc.

CoastalSouth Bancshares, Inc. is a bank holding company headquartered in Atlanta, Georgia. Through our wholly owned subsidiary, Coastal States Bank, a South Carolina state-chartered commercial bank, we offer a full range of banking products and services designed for businesses, real estate professionals, and consumers looking for a deep and meaningful relationship with their bank. To learn more about Coastal States Bank, visit www.coastalstatesbank.com.

_________________________
1	Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10I.
2	The Company defines production as original loan commitment, which includes both funded and unfunded balances.
3	Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10I.

Forward-Looking Statements

Statements in this press release regarding future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this press release should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this press release and could cause us to make changes to our future plans.

Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; potential impacts of any adverse developments in the banking industry, including any impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; changes in the interest rate environment, including changes to the federal funds rate; changes in prices, values and sales volumes of residential and commercial real estate; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; interest rate fluctuations, which could have an adverse effect on the Company’s profitability; a breach in security of our information systems, including the occurrence of a cyber-attack incidents or a deficiencies in cyber security; risks related to potential acquisitions; government actions or inactions, including a prolonged shutdown of the federal government, tariffs, or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; the effects of war or other conflicts, domestic civil unrest and tyranny, and changes in the overall geopolitical landscape; and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized.

Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the section titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s final prospectus filed pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, filed with the Securities and Exchange Commission (the “SEC”) on July 2, 2025 (Registration No. 333-287854), relating to our initial public offering, and in other documents that we file with the SEC from time to time, which are available on the SEC’s website, http://www.sec.gov.

In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make predictions based solely on historical financial performance.

Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement.

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY FINANCIAL TABLES

Financial Highlights (unaudited)																				Table 1A
		As of and for the Three Months Ended														As of and for the Year Ended
(dollars in thousands except		December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
per share amounts)		2025			2025			2025			2025			2024			2025			2024
Selected Operating Data:
Interest income	$		33,006	$		32,890	$		31,793	$		30,024	$		30,537	$		127,713	$		123,649
Interest expense			13,143			13,700			13,715			13,265			14,266			53,823			58,327
Net interest income			19,863			19,190			18,078			16,759			16,271			73,890			65,322
Provision for credit losses			1,162			653			752			629			1,240			3,196			553
Noninterest income			2,295			2,100			1,795			1,881			1,958			8,071			4,514
Noninterest expense			12,262			11,856			12,092			11,419			10,335			47,629			42,068
Income tax expense			1,598			2,040			1,064			1,542			950			6,244			5,311
Net income			7,136			6,741			5,965			5,050			5,704			24,892			21,904
Adjusted net income ⁽¹⁾			7,136			6,749			5,965			5,050			5,704			24,900			24,558
Share and Per Share Data:
Basic earnings per share	$		0.60	$		0.57	$		0.58	$		0.49	$		0.56	$		2.24	$		2.15
Adjusted basic earnings per share ⁽¹⁾	$		0.60	$		0.57	$		0.58	$		0.49	$		0.56	$		2.24	$		2.41
Diluted earnings per share	$		0.58	$		0.54	$		0.57	$		0.47	$		0.54	$		2.16	$		2.09
Adjusted diluted earnings per share ⁽¹⁾	$		0.58	$		0.54	$		0.57	$		0.47	$		0.54	$		2.16	$		2.35
Book value per share	$		21.66	$		20.91	$		20.37	$		19.67	$		19.01	$		21.66	$		19.01
Tangible book value per share ⁽¹⁾	$		21.25	$		20.49	$		19.88	$		19.17	$		18.51	$		21.25	$		18.51
Shares of common stock outstanding			11,980,412			11,978,921			10,278,921			10,274,271			10,270,146			11,980,412			10,270,146
Weighted average diluted shares outstanding			12,387,619			12,325,462			10,612,255			10,642,078			10,596,364			11,520,215			10,470,633
Selected Balance Sheet Data:
Total assets	$		2,306,586	$		2,255,389	$		2,221,245	$		2,190,391	$		2,098,712	$		2,306,586	$		2,098,712
Securities available-for-sale, at fair value ⁽²⁾			330,503			334,955			331,760			325,478			335,267			330,503			335,267
Gross loans held for investment			1,617,315			1,552,976			1,527,199			1,472,232			1,409,443			1,617,315			1,409,443
Loans held for sale			170,933			231,593			209,101			187,481			174,033			170,933			174,033
Allowance for credit losses			18,743			18,028			17,497			17,104			17,118			18,743			17,118
Goodwill and other intangible assets			6,262			6,186			6,190			6,199			6,386			6,262			6,386
Total deposits			1,987,684			1,949,672			1,968,301			1,937,693			1,834,802			1,987,684			1,834,802
Core deposits ⁽¹⁾			1,680,650			1,654,764			1,660,409			1,650,358			1,559,904			1,680,650			1,559,904
Other borrowings			30,000			25,000			14,753			20,738			41,725			30,000			41,725
Total Shareholders' equity			259,529			250,438			209,365			202,104			195,232			259,529			195,232

(1)	Considered non-GAAP financial measure - See "Non-GAAP Financial Measures” and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10I.
(2)	The Company did not have securities held to maturity in any of the periods presented.

Financial Highlights - continued (unaudited)																											Table 1B
		As of and for the Three Months Ended																				As of and for the Year Ended
		December 31,				September 30,				June 30,				March 31,				December 31,					December 31,				December 31,
(dollars in thousands)		2025				2025				2025				2025				2024					2025				2024
Performance Ratios:
Pre-tax, pre-provision net revenue (PPNR) ⁽¹⁾	$		9,896		$		9,434		$		7,781		$		7,221		$		7,894			$		34,332		$		27,768
Return on average assets (ROAA) ⁽²⁾			1.24	%			1.20	%			1.09	%			0.97	%			1.07		%			1.13	%			1.05	%
Adjusted return on average assets (Adj. ROAA) ⁽¹⁾⁽²⁾			1.24				1.20				1.09				0.97				1.07					1.13				1.18
Return on average equity ⁽²⁾			11.02				10.84				11.62				10.25				11.65					10.94				12.13
Adjusted return on average equity ⁽¹⁾⁽²⁾			11.02				10.85				11.62				10.25				11.65					10.95				13.60
Return on average tangible common equity (ROATCE) ⁽¹⁾⁽²⁾			11.24				11.07				11.92				10.52				11.97					11.19				12.49
Adjusted return on average tangible common equity (Adj. ROATCE) ⁽¹⁾⁽²⁾			11.24				11.08				11.92				10.52				11.97					11.20				14.00
Net interest rate spread ⁽²⁾			2.87				2.83				2.76				2.67				2.42					2.79				2.48
Net interest margin ⁽²⁾			3.60				3.58				3.46				3.38				3.21					3.51				3.29
Efficiency ratio			55.34				55.69				60.85				61.26				56.70					58.11				60.24
Efficiency ratio, as adjusted ⁽¹⁾			55.34				55.66				60.85				61.26				56.70					58.10				57.39
Noninterest income to average total assets ⁽²⁾			0.40				0.37				0.33				0.36				0.37					0.37				0.22
Noninterest income to total revenue			10.36				9.86				9.03				10.09				10.74					9.85				6.46
Adjusted noninterest income to total adjusted revenue ⁽¹⁾			10.36				9.91				9.03				10.09				10.74					9.86				10.89
Noninterest expense to average total assets ⁽²⁾			2.13				2.11				2.21				2.19				1.94					2.16				2.02
Average interest-earning assets to average interest-bearing liabilities			130.41				129.16				126.50				126.31				127.90					128.13				127.70
Average equity to average total assets			11.22				11.08				9.37				9.46				9.20					10.31				8.65
Asset Quality Data:
Net charge-offs to average LHFI ⁽²⁾			0.00	%			0.03	%			0.06	%			0.00	%			(0.02	)	%			0.02	%			0.01	%
Net charge-offs to total average loans ⁽²⁾			0.00				0.03				0.05				0.00				(0.02	)				0.02				0.01
Total allowance for credit losses to total LHFI			1.16				1.16				1.15				1.16				1.21					1.16				1.21
Total allowance for credit losses to total loans			1.05				1.01				1.01				1.03				1.08					1.05				1.08
Total allowance for credit losses to nonperforming loans			102.39				127.03				118.99				117.11				114.07					102.39				114.07
Nonperforming loans to gross LHFI			1.13				0.91				0.96				0.99				1.06					1.13				1.06
Nonperforming assets to total assets			0.79				0.63				0.66				0.70				0.76					0.79				0.76
Adjusted nonperforming assets to total assets ⁽¹⁾			0.62				0.43				0.46				0.49				0.53					0.62				0.53
Balance Sheet and Capital Ratios:
Loan-to-deposit ratio			89.97	%			91.53	%			88.21	%			85.65	%			86.30		%			89.97	%			86.30	%
Noninterest-bearing deposits to total deposits			15.71				16.08				15.92				15.52				16.51					15.71				16.51
Total shareholders' equity to total assets			11.25				11.10				9.43				9.23				9.30					11.25				9.30
Tangible common equity to tangible assets ⁽¹⁾			11.06				10.91				9.22				9.01				9.08					11.06				9.08
Tier 1 leverage ratio ⁽³⁾			11.18				11.15				10.22				10.62				10.64					11.18				10.64
Common equity tier 1 ratio ⁽³⁾			12.30				11.94				11.09				11.55				12.07					12.30				12.07
Tier 1 risk-based capital ratio ⁽³⁾			12.30				11.94				11.09				11.55				12.07					12.30				12.07
Total risk-based capital ratio ⁽³⁾			13.31				12.90				12.04				12.52				12.97					13.31				12.97
Other:
Number of branches			11				11				11				11				11					11				11
Number of full-time equivalent employees			196				194				188				180				181					189				180

(1)	Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10I.
(2)	Represents annualized data.
(3)	Ratios are for Coastal States Bank only. Ratios for December 31, 2025 are preliminary.

Quarter End Balance Sheets (unaudited)													Table 2
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2025			2025			2025			2025			2024
Assets
Cash and due from banks	$	41,538		$	20,088		$	23,245		$	19,380		$	37,320
Federal funds sold		38,229			6,191			20,045			79,153			30,641
Investment securities ⁽¹⁾		339,262			342,990			338,601			332,312			342,750
Loans held for sale (LHFS)		170,933			231,593			209,101			187,481			174,033
Loans held for investment (LHFI)		1,617,315			1,552,976			1,527,199			1,472,232			1,409,443
Allowance for credit losses on LHFI		(18,743	)		(18,028	)		(17,497	)		(17,104	)		(17,118	)
Loans held for investment, net		1,598,572			1,534,948			1,509,702			1,455,128			1,392,325
Bank-owned life insurance		48,296			47,833			47,373			46,924			46,484
Premises, furniture and equipment, net		18,122			18,186			18,166			17,837			17,796
Deferred tax asset		16,370			16,262			17,211			17,123			18,148
Goodwill & intangible assets ⁽²⁾		6,262			6,186			6,190			6,199			6,386
Other assets		29,002			31,112			31,611			28,854			32,829
Total assets	$	2,306,586		$	2,255,389		$	2,221,245		$	2,190,391		$	2,098,712

Liabilities and shareholders' equity
Liabilities
Deposits
Noninterest-bearing transaction accounts	$	312,251		$	313,604		$	313,386		$	300,678		$	302,907
Interest-bearing transaction accounts		214,620			198,753			209,816			191,452			181,068
Savings and money market		673,609			634,826			628,729			650,050			591,626
Time deposits		787,204			802,489			816,370			795,513			759,201
Total deposits		1,987,684			1,949,672			1,968,301			1,937,693			1,834,802
Federal Home Loan Bank of Atlanta advances		30,000			25,000			-			-			15,000
Subordinated debt, net		-			-			14,753			14,741			14,730
Revolving commercial line of credit, net		-			-			-			5,997			11,995
Other liabilities		29,373			30,279			28,826			29,856			26,953
Total liabilities		2,047,057			2,004,951			2,011,880			1,988,287			1,903,480

Shareholders' equity
Voting common stock		10,868			10,449			8,107			8,102			8,098
Nonvoting common stock		1,112			1,530			2,172			2,172			2,172
Capital surplus		189,882			189,654			159,267			158,997			158,755
Accumulated income		66,886			59,750			53,009			47,044			41,994
Accumulated other comprehensive loss		(9,219	)		(10,945	)		(13,190	)		(14,211	)		(15,787	)
Total shareholders' equity		259,529			250,438			209,365			202,104			195,232

Total liabilities and shareholders' equity	$	2,306,586		$	2,255,389		$	2,221,245		$	2,190,391		$	2,098,712

(1)	No ACL on investment securities was recognized for the periods presented; includes securities available-for-sale and non-marketable equity securities.
(2)	Includes commercial mortgage servicing rights of $1.3 million, $1.2 million, $1.1 million, $1.1 million, and $1.2 million for December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025 and December 31, 2024, respectively.

Statements of Operations (unaudited)															Table 3
	Three Months Ended											Twelve Months Ended
	December 31,		September 30,			June 30,		March 31,		December 31,		December 31,			December 31,
(dollars in thousands)	2025		2025			2025		2025		2024		2025			2024
Interest income
Interest on cash and due from banks	$	109	$	129		$	111	$	135	$	122	$	484		$	534
Interest on federal funds sold		624		616			698		963		870		2,901			3,751
Interest and dividends on investment securities		3,734		4,125			3,875		3,800		3,994		15,534			16,046
Interest and fees on LHFS		3,771		3,422			3,296		2,819		3,404		13,308			10,272
Interest and fees on LHFI		24,768		24,598			23,813		22,307		22,147		95,486			93,046
Total interest income		33,006		32,890			31,793		30,024		30,537		127,713			123,649

Interest expense
Deposits		12,925		13,274			13,251		12,830		13,498		52,280			53,443
Other borrowings		218		426			464		435		768		1,543			4,884
Total interest expense		13,143		13,700			13,715		13,265		14,266		53,823			58,327

Net interest income		19,863		19,190			18,078		16,759		16,271		73,890			65,322

Provision for credit losses		1,162		653			752		629		1,240		3,196			553
Net interest income after provision for credit losses		18,701		18,537			17,326		16,130		15,031		70,694			64,769

Noninterest income
Mortgage banking related income		330		299			326		221		391		1,176			1,204
Interchange and card fee income		230		238			257		266		210		991			868
Service charges on deposit accounts		256		208			215		211		230		890			846
Bank-owned life insurance		462		461			449		440		440		1,812			1,664
Gain on sale of government guaranteed loans		682		613			265		-		151		1,560			1,818
Losses on sale of available-for-sale securities		-		(10	)		-		-		-		(10	)		(3,465	)
Other noninterest income		335		291			283		743		536		1,652			1,579
Total noninterest income		2,295		2,100			1,795		1,881		1,958		8,071			4,514

Noninterest expense
Salaries and employee benefits		7,644		6,985			6,997		6,694		6,759		28,320			26,187
Occupancy and equipment		864		850			814		788		762		3,316			2,995
Data processing		640		647			653		624		605		2,564			2,213
Other professional services		391		571			973		693		496		2,628			2,046
Software and other technology expense		808		788			719		703		774		3,018			2,742
Regulatory assessment		369		419			344		361		336		1,493			1,291
Other noninterest expense		1,546		1,596			1,592		1,556		603		6,290			4,594
Total noninterest expense		12,262		11,856			12,092		11,419		10,335		47,629			42,068

Net income before taxes		8,734		8,781			7,029		6,592		6,654		31,136			27,215
Income tax expense		1,598		2,040			1,064		1,542		950		6,244			5,311

Net income	$	7,136	$	6,741		$	5,965	$	5,050	$	5,704	$	24,892		$	21,904

QTD Average Balances and Yields/Rates (unaudited)																				Table 4
	Three Months Ended
	December 31, 2025								September 30, 2025								December 31, 2024
	Average					Yield/			Average					Yield/			Average					Yield/
(dollars in thousands)	Balance			Interest		Rate			Balance			Interest		Rate			Balance			Interest		Rate

Earning assets:
Cash and due from banks	$	21,271		$	109		2.03	%	$	21,058		$	129		2.43	%	$	19,900		$	122		2.44	%
Federal funds sold		62,215			624		3.98	%		52,240			616		4.68	%		71,061			870		4.87	%
Investment securities		340,416			3,734		4.35	%		339,619			4,125		4.82	%		355,832			3,994		4.47	%
Loans held for sale		198,119			3,771		7.55	%		167,424			3,422		8.11	%		171,457			3,404		7.90	%
Loans held for investment		1,567,471			24,768		6.27	%		1,543,363			24,598		6.32	%		1,399,357			22,147		6.30	%
Total earning assets		2,189,492			33,006		5.98	%		2,123,704			32,890		6.14	%		2,017,607			30,537		6.02	%
Noninterest-earning assets:
Allowance for credit losses on LHFI		(18,034	)							(17,504	)							(15,655	)
Bank-owned life insurance		48,038								47,569								46,243
Premises, furniture and equipment, net		18,160								18,241								17,854
Deferred tax asset		15,841								17,159								17,393
Goodwill & intangible assets		6,166								6,176								6,432
Other assets		28,695								30,633								27,483
Total noninterest-earning assets		98,866								102,274								99,750
Total assets	$	2,288,358							$	2,225,978							$	2,117,357

Interest-bearing liabilities:
Interest-bearing deposits	$	1,658,037		$	12,925		3.09	%	$	1,631,767		$	13,274		3.23	%	$	1,526,968		$	13,498		3.52	%
Federal Reserve Bank - BTFP		-			-		0.00	%		-			-		0.00	%		10,652			132		4.93	%
Federal funds purchased		8			-		0.00	%		-			-		0.00	%		-			-		0.00	%
Federal Home Loan Bank of Atlanta advances		20,924			218		4.13	%		272			3		4.38	%		13,098			161		4.89	%
Revolving commercial line of credit, net		-			-		0.00	%		-			-		0.00	%		11,995			241		7.99	%
Subordinated debt, net		-			-		0.00	%		12,191			423		13.77	%		14,724			235		6.35	%
Total interest-bearing liabilities		1,678,969			13,143		3.11	%		1,644,230			13,700		3.31	%		1,577,437			14,267		3.60	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		323,687								306,133								318,071
Other liabilities		28,888								28,927								27,125
Total noninterest-bearing liabilities		352,575								335,060								345,196
Shareholders' equity		256,814								246,688								194,724
Total liabilities and shareholders' equity	$	2,288,358							$	2,225,978							$	2,117,357
Net interest income				$	19,863							$	19,190							$	16,270
Net interest spread							2.87	%							2.83	%							2.42	%
Net interest margin							3.60	%							3.58	%							3.21	%

Cost of total deposits ⁽¹⁾							2.59	%							2.72	%							2.91	%
Cost of total funding ⁽¹⁾							2.60	%							2.79	%							2.99	%

(1)	Includes noninterest-bearing deposits.

YTD Average Balances and Yields/Rates (unaudited)														Table 5
	Twelve Months Ended
	December 31, 2025								December 31, 2024
	Average					Yield/			Average						Yield/
(dollars in thousands)	Balance			Interest		Rate			Balance			Interest			Rate

Earning assets:
Cash and due from banks	$	21,449		$	484		2.26	%	$	20,546		$	534			2.60	%
Federal funds sold		66,287			2,901		4.38	%		69,490			3,751			5.40	%
Investment securities		338,498			15,534		4.59	%		352,681			16,046			4.55	%
Loans held for sale		167,670			13,308		7.94	%		123,310			10,272			8.33	%
Loans held for investment		1,511,831			95,486		6.32	%		1,418,022			93,046			6.56	%
Total earning assets		2,105,735			127,713		6.07	%		1,984,049			123,649			6.23	%
Noninterest-earning assets:
Allowance for credit losses on LHFI		(17,444	)							(15,865	)
Bank-owned life insurance		47,354								45,597
Premises, furniture and equipment, net		18,073								17,725
Deferred tax asset		16,991								19,023
Goodwill & intangible assets		6,209								6,372
Other assets		29,624								30,352
Total noninterest-earning assets		100,807								103,204
Total assets	$	2,206,542							$	2,087,253

Interest-bearing liabilities:
Interest-bearing deposits	$	1,621,049		$	52,280		3.23	%	$	1,468,164		$	53,443			3.64	%
Federal Reserve Bank - BTFP		-			-		0.00	%		53,361			2,616			4.90	%
Federal funds purchased		11			1		9.09	%		-			-			0.00	%
Federal Home Loan Bank of Atlanta advances		8,123			350		4.31	%		4,658			238			5.11	%
Revolving commercial line of credit, net		3,845			300		7.80	%		12,780			1,090			8.53	%
Subordinated debt, net		10,383			892		8.59	%		14,706			940			6.39	%
Total interest-bearing liabilities		1,643,411			53,823		3.28	%		1,553,669			58,327			3.75	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		307,464								323,949
Other liabilities		28,182								29,007
Total noninterest-bearing liabilities		335,646								352,956
Shareholders' equity		227,485								180,628
Total liabilities and shareholders' equity	$	2,206,542							$	2,087,253

Net interest income				$	73,890							$	65,322
Net interest spread							2.79	%								2.48	%
Net interest margin							3.51	%								3.29	%

Cost of total deposits ⁽¹⁾							2.71	%								2.98	%
Cost of total funding⁽¹⁾							2.76	%								3.11	%

(1)	Includes noninterest-bearing deposits.

Loan Data (unaudited)																					Table 6
	As of the Quarter Ended
	December 31, 2025					September 30, 2025					June 30, 2025					March 31, 2025					December 31, 2024
(dollars in thousands)	Amount		% of Total			Amount		% of Total			Amount		% of Total			Amount		% of Total			Amount		% of Total
Loans held for investment ("LHFI"):
Commercial Loans
Acquisition, development and construction	$	119,352		7.4	%	$	106,787		6.9	%	$	100,528		6.6	%	$	76,453		5.2	%	$	72,520		5.2	%
Income producing CRE		378,179		23.4			371,670		23.9			372,142		24.4			352,693		24.0			321,558		22.8
Owner-occupied CRE		92,787		5.7			96,287		6.2			91,147		6.0			90,204		6.1			94,573		6.7
Senior housing		259,529		16.1			223,719		14.4			236,474		15.5			245,292		16.7			234,081		16.6
Commercial and industrial		145,380		9.0			135,039		8.7			131,716		8.6			145,784		9.8			141,626		10.0
Retail Loans
Marine vessels		312,096		19.3			318,246		20.5			301,327		19.7			284,305		19.3			263,657		18.6
Residential mortgages		199,991		12.4			190,220		12.3			185,527		12.1			176,794		12.1			174,099		12.5
Cash value life insurance LOC		87,172		5.4			90,115		5.8			87,135		5.7			80,503		5.5			86,844		6.2
Other consumer		22,829		1.4			20,893		1.4			21,203		1.4			20,204		1.4			20,485		1.5
Gross loans held for investment	$	1,617,315		100.0	%	$	1,552,976		100.0	%	$	1,527,199		100.0	%	$	1,472,232		100.0	%	$	1,409,443		100.0	%
Core LHFI		1,561,791					1,492,992					1,464,200					1,406,199					1,342,073
Acquired LHFI ⁽¹⁾		55,524					59,984					62,999					66,033					67,370
Gross loans held for investment	$	1,617,315				$	1,552,976				$	1,527,199				$	1,472,232				$	1,409,443
Allowance for credit losses on LHFI		18,743					18,028					17,497					17,104					17,118
Net loans held for investment	$	1,598,572				$	1,534,948				$	1,509,702				$	1,455,128				$	1,392,325
Total loans held-for-sale		170,933					231,593					209,101					187,481					174,033
Total loans	$	1,788,248				$	1,784,569				$	1,736,300				$	1,659,713				$	1,583,476

(1)	Includes loans acquired through business combinations.

Nonperforming Assets (unaudited)													Table 7
	As of the Quarter Ended
(dollars in thousands)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025				December 31, 2024
Nonaccrual loans	$	18,306		$	14,171		$	14,611		$	14,599			$	14,957
Past due loans 90 days and still accruing		-			21			93			6				49
Total nonperforming loans	$	18,306		$	14,192		$	14,704		$	14,605			$	15,006
Other real estate owned		-			-			-			765				864
Total nonperforming assets	$	18,306		$	14,192		$	14,704		$	15,370			$	15,870
Nonperforming loans to gross LHFI		1.13	%		0.91	%		0.96	%		0.99	%			1.06	%
Nonaccrual loans to total assets		0.79	%		0.63	%		0.66	%		0.67	%			0.71	%
Nonperforming assets to total assets		0.79	%		0.63	%		0.66	%		0.70	%			0.76	%

Allowance for Credit Losses (unaudited)																			Table 8
	As of and for the Three Months Ended															As of and for the Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(dollars in thousands)	2025			2025			2025			2025			2024			2025			2024
Allowance for credit losses on LHFI
Balance, beginning of period	$	18,028		$	17,497		$	17,104		$	17,118		$	15,615		$	17,118		$	15,465
Net charge-offs/(recoveries):
Commercial Loans
Acquisition, development and construction		-			-			-			-			-			-			-
Income producing CRE		-			-			-			-			-			-			-
Owner-occupied CRE		-			-			-			-			(53	)		-			(53	)
Senior housing		-			-			-			-			-			-			-
Commercial and industrial		(4	)		(29	)		19			1			3			(13	)		129
Retail Loans
Marine vessels		-			162			-			-			-			162			36
Residential mortgages		(29	)		(2	)		(2	)		(2	)		(2	)		(35	)		(15	)
Cash value life insurance LOC		-			-			-			-			-			-			-
Other consumer		20			(6	)		191			16			(25	)		221			(1	)
Total net charge-offs/(recoveries)	$	(13	)	$	125		$	208		$	15		$	(77	)	$	335		$	96
Provision for loan credit losses		702			656			601			1			1,426			1,960			1,749
Balance, ending of period	$	18,743		$	18,028		$	17,497		$	17,104		$	17,118		$	18,743		$	17,118
Allowance for credit losses for unfunded commitments
Period beginning balance	$	3,496		$	3,499		$	3,348		$	2,720		$	2,906		$	2,720		$	3,916
Provision (recovery) for credit losses		460			(3	)		151			628			(186	)		1,236			(1,196	)
Period ending balance	$	3,956		$	3,496		$	3,499		$	3,348		$	2,720		$	3,956		$	2,720
Balance, end of period - Allowance for credit losses: LHFI and unfunded commitments	$	22,699		$	21,524		$	20,996		$	20,452		$	19,838		$	22,699		$	19,838
Total loans held for investment	$	1,617,315		$	1,552,976		$	1,527,199		$	1,472,232		$	1,409,443		$	1,617,315		$	1,409,443
Credit Analysis
Net charge-offs to average LHFI		0.00	%		0.03	%		0.06	%		0.00	%		(0.02	)%		0.02	%		0.01	%
Total allowance for credit losses on LHFI to total LHFI		1.16	%		1.16	%		1.15	%		1.16	%		1.21	%		1.16	%		1.21	%
Total allowance for credit losses on LHFI to nonaccrual loans		102.39	%		127.22	%		119.75	%		117.16	%		114.45	%		102.39	%		114.45	%
Total allowance for credit losses on LHFI to total nonperforming loans		102.39	%		127.03	%		118.99	%		117.11	%		114.07	%		102.39	%		114.07	%

Loan Risk Ratings ^{(1) (2)} (unaudited)									Table 9
	As of the Quarter Ended
(dollars in thousands)	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025			December 31, 2024
Acquisition, development and construction ⁽¹⁾
Pass	$	119,352	$	106,787	$	100,528	$	76,453		$	72,520
Special mention		-		-		-		-			-
Substandard		-		-		-		-			-
Total acquisition, development and construction	$	119,352	$	106,787	$	100,528	$	76,453		$	72,520
Income producing CRE ⁽¹⁾
Pass	$	377,711	$	370,788	$	371,255	$	352,281		$	321,146
Special mention		-		-		-		-			-
Substandard		468		882		887		412			412
Total income producing	$	378,179	$	371,670	$	372,142	$	352,693		$	321,558
Owner-occupied CRE ⁽¹⁾
Pass	$	82,959	$	86,533	$	81,244	$	83,711		$	87,906
Special mention		2,739		3,579		3,612		-			-
Substandard		7,089		6,175		6,291		6,493			6,667
Total owner-occupied	$	92,787	$	96,287	$	91,147	$	90,204		$	94,573
Senior housing ⁽¹⁾
Pass	$	236,816	$	205,330	$	217,971	$	208,922		$	190,084
Special mention		11,934		12,006		12,078		24,814			25,025
Substandard		10,779		6,383		6,425		11,556			18,972
Total senior housing	$	259,529	$	223,719	$	236,474	$	245,292		$	234,081
Commercial and industrial ⁽²⁾
Pass	$	141,020	$	128,468	$	124,979	$	141,202		$	136,878
Special mention		212		2,402		2,199		-			36
Substandard		4,148		4,169		4,538		4,582			4,712
Total commercial and industrial	$	145,380	$	135,039	$	131,716	$	145,784		$	141,626
Marine vessels ⁽²⁾
Performing	$	312,096	$	318,246	$	301,327	$	284,305		$	263,657
Nonperforming		-		-		-		-			-
Total marine vessels	$	312,096	$	318,246	$	301,327	$	284,305		$	263,657
Residential mortgages ⁽²⁾
Performing	$	199,601	$	190,059	$	185,162	$	176,633		$	173,834
Nonperforming		390		161		365		161			265
Total residential mortgages	$	199,991	$	190,220	$	185,527	$	176,794		$	174,099
Cash value life insurance LOC ⁽²⁾
Performing	$	87,172	$	90,115	$	87,135	$	80,503		$	86,844
Nonperforming		-		-		-		-			-
Total cash value life insurance LOC	$	87,172	$	90,115	$	87,135	$	80,503		$	86,844
Other consumer ⁽²⁾
Performing	$	22,829	$	20,872	$	21,203	$	20,204		$	20,442
Nonperforming		-		21		-		-			43
Total other consumer	$	22,829	$	20,893	$	21,203	$	20,204		$	20,485
Gross loans held for investment	$	1,617,315	$	1,552,976	$	1,527,199	$	1,472,232		$	1,409,443

(1)

There were no commercial loans classified as doubtful.

(2)

Retail loans are classified as either performing or nonperforming.

Non-GAAP Financial Measures

The measures entitled return on average tangible common equity, tangible book value per share, tangible common equity, tangible assets, adjusted nonperforming assets to total assets, adjusted nonperforming assets, adjusted net income, adjusted basic earnings per share, adjusted diluted earnings per share, pre-tax, pre-provision net revenue ("PPNR"), adjusted return on average assets, adjusted return on average equity, efficiency ratio, as adjusted, adjusted return on average tangible common equity, adjusted noninterest income to total revenue, tangible common equity to tangible assets and core deposits are not measures recognized under accounting principles generally accepted in the United States of America (“GAAP”) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are return on average shareholders’ equity, book value per share, total shareholders’ equity, total assets, total nonperforming assets to total assets, total nonperforming assets, net income, basic earnings per share, diluted earnings per share, net income, return on average assets, return on average equity, the efficiency ratio, return on average equity, noninterest income to total revenue, total common equity to total assets, and total deposits, respectively.

Management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures permit investors to view the Company’s performance using the same tools that management uses to evaluate the Company’s past performance and prospects for future performance. While management believes that these non-GAAP financial measures are useful in evaluating our performance, this information should be considered as supplemental and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures should be considered as additional views of the way the Company’s financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies.

Non-GAAP Reconciliations

Tangible Book Value per Share / Tangible Common Equity to Tangible Assets (unaudited)																			Table 10A
	As of and for the Three Months Ended															As of and for the Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,				December 31,
(dollars in thousands, except per share data)	2025			2025			2025			2025			2024			2025				2024
Tangible Common Equity:
Total shareholders' equity	$	259,529		$	250,438		$	209,365		$	202,104		$	195,232		$	259,529			$	195,232
Less: Goodwill and intangibles		(6,262	)		(6,186	)		(6,190	)		(6,199	)		(6,386	)		(6,262	)			(6,386	)
Adjusted for: Mortgage servicing rights		1,266			1,156			1,122			1,093			1,237			1,266				1,237
Tangible Common Equity	$	254,533		$	245,408		$	204,297		$	196,998		$	190,083		$	254,533			$	190,083
Common shares outstanding		11,980,412			11,978,921			10,278,921			10,274,271			10,270,146			11,980,412				10,270,146
Book value per common share		21.66			20.91			20.37			19.67			19.01			21.66				19.01
Tangible book value per common share		21.25			20.49			19.88			19.17			18.51			21.25				18.51
Tangible assets:
Total assets	$	2,306,586		$	2,255,389		$	2,221,245		$	2,190,391		$	2,098,712		$	2,306,586			$	2,098,712
Less: Goodwill and intangibles		(6,262	)		(6,186	)		(6,190	)		(6,199	)		(6,386	)		(6,262	)			(6,386	)
Adjusted for: Mortgage servicing rights		1,266			1,156			1,122			1,093			1,237			1,266				1,237
Tangible assets	$	2,301,590		$	2,250,359		$	2,216,177		$	2,185,285		$	2,093,563		$	2,301,590			$	2,093,563
Tangible common equity to tangible assets		11.06	%		10.91	%		9.22	%		9.01	%		9.08	%		11.06	%			9.08	%

ROATCE / Adjusted ROATCE (unaudited)																			Table 10B
	As of and for the Three Months Ended															As of and for the Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,				December 31,
(dollars in thousands)	2025			2025			2025			2025			2024			2025				2024
Net income	$	7,136		$	6,741		$	5,965		$	5,050		$	5,704		$	24,892			$	21,904
Average shareholders' equity		256,814			246,688			205,837			199,763			194,724			227,485				180,628
Return on average shareholders' equity ⁽¹⁾		11.02	%		10.84	%		11.62	%		10.25	%		11.65	%		10.94	%			12.13	%
Average Tangible Common Equity:
Average shareholders' equity	$	256,814		$	246,688		$	205,837		$	199,763		$	194,724		$	227,485			$	180,628
Less: Average goodwill and intangibles		(6,166	)		(6,176	)		(6,168	)		(6,328	)		(6,432	)		(6,209	)			(6,372	)
Adjusted for: Average mortgage servicing rights		1,155			1,128			1,082			1,198			1,263			1,141				1,133
Average tangible common equity	$	251,803		$	241,640		$	200,751		$	194,633		$	189,555		$	222,417			$	175,389
Return on average tangible common ⁽¹⁾ shareholders' equity		11.24	%		11.07	%		11.92	%		10.52	%		11.97	%		11.19	%			12.49	%
Net income	$	7,136		$	6,741		$	5,965		$	5,050		$	5,704		$	24,892			$	21,904
Adjusted for:
Loss on sale of AFS securities, net of tax ⁽²⁾		-			8			-			-			-			8				2,654
Adjusted net income	$	7,136		$	6,749		$	5,965		$	5,050		$	5,704		$	24,900			$	24,558
Average tangible common equity	$	251,803		$	241,640		$	200,751		$	194,633		$	189,555		$	222,417			$	175,389
Adjusted return on average tangible common equity ⁽¹⁾		11.24	%		11.08	%		11.92	%		10.52	%		11.97	%		11.20	%			14.00	%

(1)	Represents annualized data
(2)	2024 consists of loss on sale of AFS securities due to non-routine portfolio restructuring.

Non-GAAP Reconciliations

Efficiency Ratio, as Adjusted / Noninterest Income to Total Revenue (unaudited)																			Table 10C
	As of and for the Three Months Ended															As of and for the Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,				December 31,
(dollars in thousands)	2025			2025			2025			2025			2024			2025				2024
GAAP-based efficiency ratio		55.34	%		55.69	%		60.85	%		61.26	%		56.70	%		58.11	%			60.24	%
Net interest income	$	19,863		$	19,190		$	18,078		$	16,759		$	16,271		$	73,890			$	65,322
Noninterest income		2,295			2,100			1,795			1,881			1,958			8,071				4,514
Adjusted for:
Loss on sale of AFS securities ⁽¹⁾		-			10			-			-			-			10				3,465
Adjusted revenue	$	22,158		$	21,300		$	19,873		$	18,640		$	18,229		$	81,971			$	73,301
Total noninterest expense		12,262			11,856			12,092			11,419			10,335			47,629				42,068
Adjusted noninterest expense	$	12,262		$	11,856		$	12,092		$	11,419		$	10,335		$	47,629			$	42,068
Efficiency ratio, as adjusted		55.34	%		55.66	%		60.85	%		61.26	%		56.70	%		58.10	%			57.39	%
Noninterest income to total revenue		10.36	%		9.86	%		9.03	%		10.09	%		10.74	%		9.85	%			6.46	%
Adjusted noninterest income to total adjusted revenue		10.36	%		9.91	%		9.03	%		10.09	%		10.74	%		9.86	%			10.89	%

(1)	2024 consists of loss on sale of AFS securities due to non-routine portfolio restructuring.

Adjusted Net Income / Adjusted Return on Average Assets (unaudited)																			Table 10D
	As of and for the Three Months Ended															As of and for the Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,				December 31,
(dollars in thousands)	2025			2025			2025			2025			2024			2025				2024
Net income	$	7,136		$	6,741		$	5,965		$	5,050		$	5,704		$	24,892			$	21,904
Average assets		2,288,358			2,225,978			2,196,716			2,111,196			2,117,357			2,206,542				2,087,253
Return on average assets⁽¹⁾		1.24	%		1.20	%		1.09	%		0.97	%		1.07	%		1.13	%			1.05	%
Net income	$	7,136		$	6,741		$	5,965		$	5,050		$	5,704		$	24,892			$	21,904
Adjusted for:
Loss on sale of AFS securities, net of tax ⁽²⁾		-			8			-			-			-			8				2,654
Adjusted net income	$	7,136		$	6,749		$	5,965		$	5,050		$	5,704		$	24,900			$	24,558
Average assets	$	2,288,358		$	2,225,978		$	2,196,716		$	2,111,196		$	2,117,357		$	2,206,542			$	2,087,253
Adjusted return on average assets ⁽¹⁾		1.24	%		1.20	%		1.09	%		0.97	%		1.07	%		1.13	%			1.18

(1)	Represents annualized data
(2)	2024 consists of loss on sale of AFS securities due to non-routine portfolio restructuring.

Adjusted Net Income / Adjusted Return on Average Shareholders' Equity (unaudited)																			Table 10E
	As of and for the Three Months Ended															As of and for the Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,				December 31,
(dollars in thousands)	2025			2025			2025			2025			2024			2025				2024
Net income	$	7,136		$	6,741		$	5,965		$	5,050		$	5,704		$	24,892			$	21,904
Average shareholders' equity		256,814			246,688			205,837			199,763			194,724			227,485				180,628
Return on average shareholders' equity ⁽¹⁾		11.02	%		10.84	%		11.62	%		10.25	%		11.65	%		10.94	%			12.13	%
Net income	$	7,136		$	6,741		$	5,965		$	5,050		$	5,704		$	24,892			$	21,904
Adjusted for:
Loss on sale of AFS securities, net of tax ⁽²⁾		-			8			-			-			-			8				2,654
Adjusted net income	$	7,136		$	6,749		$	5,965		$	5,050		$	5,704		$	24,900			$	24,558
Average shareholders' equity	$	256,814		$	246,688		$	205,837		$	199,763		$	194,724		$	227,485			$	180,628
Adjusted return on average shareholders' equity ⁽¹⁾		11.02	%		10.85	%		11.62	%		10.25	%		11.65	%		10.95	%			13.60	%

(1)	Represents annualized data
(2)	2024 consists of loss on sale of AFS securities due to non-routine portfolio restructuring.

Adjusted Net Income / Adjusted Basic EPS / Adjusted Diluted EPS (unaudited)													Table 10F
	As of and for the Three Months Ended										As of and for the Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,			December 31,
(dollars in thousands, except per share data)	2025		2025		2025		2025		2024		2025			2024
Net income	$	7,136	$	6,741	$	5,965	$	5,050	$	5,704	$	24,892		$	21,904
Average common shares outstanding - basic		11,979,715		11,941,965		10,277,721		10,273,125		10,250,446		11,125,064			10,198,298
Basic earnings per share	$	0.60	$	0.57	$	0.58	$	0.49	$	0.56	$	2.24		$	2.15
Average common shares outstanding - diluted		12,387,619		12,325,462		10,612,255		10,642,078		10,596,364		11,520,215			10,470,633
Diluted earnings per share	$	0.58	$	0.54	$	0.57	$	0.47	$	0.54	$	2.16		$	2.09
Net income	$	7,136	$	6,741	$	5,965	$	5,050	$	5,704	$	24,892		$	21,904
Adjusted for:
Loss on sale of AFS securities, net of tax ⁽¹⁾		-		8		-		-		-		8			2,654
Adjusted net income	$	7,136	$	6,749	$	5,965	$	5,050	$	5,704	$	24,900		$	24,558
Adjusted basic earnings per share	$	0.60	$	0.57	$	0.58	$	0.49	$	0.56	$	2.24		$	2.41
Adjusted diluted earnings per share	$	0.58	$	0.54	$	0.57	$	0.47	$	0.54	$	2.16		$	2.35

(1)	2024 consists of loss on sale of AFS securities due to non-routine portfolio restructuring.

Adjusted Nonperforming Assets to Total Assets (unaudited)																			Table 10G
	As of and for the Three Months Ended															As of and for the Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,				December 31,
(dollars in thousands)	2025			2025			2025			2025			2024			2025				2024
Total nonperforming assets	$	18,306		$	14,192		$	14,704		$	15,370		$	15,870		$	18,306			$	15,870
Total assets		2,306,586			2,255,389			2,221,245			2,190,391			2,098,712			2,306,586				2,098,712
GAAP-based nonperforming assets to total assets		0.79	%		0.63	%		0.66	%		0.70	%		0.76	%		0.79	%			0.76	%
Total nonperforming assets	$	18,306		$	14,192		$	14,704		$	15,370		$	15,870		$	18,306			$	15,870
Adjusted for:
Guaranteed portions of nonaccrual loans		4,089			4,457			4,583			4,692			4,811			4,089				4,811
Adjusted total nonperforming assets	$	14,217		$	9,735		$	10,121		$	10,678		$	11,059		$	14,217			$	11,059
Total assets	$	2,306,586		$	2,255,389		$	2,221,245		$	2,190,391		$	2,098,712		$	2,306,586			$	2,098,712
Adjusted nonperforming assets to total assets		0.62	%		0.43	%		0.46	%		0.49	%		0.53	%		0.62	%			0.53	%

PPNR (unaudited)													Table 10H
	As of and for the Three Months Ended										As of and for the Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,			December 31,
(dollars in thousands)	2025		2025		2025		2025		2024		2025			2024
Net income (GAAP-based)	$	7,136	$	6,741	$	5,965	$	5,050	$	5,704	$	24,892		$	21,904
Plus:
Income tax expense		1,598		2,040		1,064		1,542		950		6,244			5,311
Provision (recovery) for credit losses		1,162		653		752		629		1,240		3,196			553
Pre-tax, pre-provision net revenue	$	9,896	$	9,434	$	7,781	$	7,221	$	7,894	$	34,332		$	27,768

Core Deposits (unaudited)													Table 10I
	As of and for the Three Months Ended										As of and for the Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,			December 31,
(dollars in thousands)	2025		2025		2025		2025		2024		2025			2024
Total Deposits	$	1,987,684	$	1,949,672	$	1,968,301	$	1,937,693	$	1,834,802	$	1,987,684		$	1,834,802
Less:
Brokered CDs		307,034		294,908		307,892		287,335		274,898		307,034			274,898
Core deposits ⁽¹⁾	$	1,680,650	$	1,654,764	$	1,660,409	$	1,650,358	$	1,559,904	$	1,680,650		$	1,559,904