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CLOSED · 14:05 ET
Market ClerkRecap
Sat Oct 31 · markets closed1 signal today129 insider buys this week · $10BCIRO short report next: Nov 15The week ahead

FXNC

FIRST NATIONAL CORP /VA/
NASDAQ · FINANCIALS · STATE COMMERCIAL BANKS
30.46
−0.47 −1.52%
USD · close Oct 30
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Work order
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Insiders, 90 days
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no open-market filings in 90 days
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no disclosures naming it
Big money
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nobody we score has called it yet
MKT CAP $275.4MP/E 12.7DIV YIELD 2.18%FCF YIELD 9.51%REV TTM —NET INCOME $21.7M +172.3%NET CASH $160.1M52W 22.48 – 32.37SEC XBRL · TTM TO Invalid Date

How FXNC rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
Text kept
48%
of sentences unchanged
Added
351
new sentences
Dropped
397
sentences removed
Length
−1,696
words, now 39,917

New in FY2025

  • Issuer Purchases of Equity Securities There was no authorized repurchase plan, and the Company did not make any repurchases of common stock during 2025.
  • Management’s Discussion and Analysis of Financial Condition and Results of Operation The fo llowing discussion and analysis of the financial condition and results of operations of the Company for the years ended December 31, 2025 and 2024 should be read in conjunction with the consolidated financial statements and related notes to the consolidated financial statements included in Item 8 of this Form 10-K.
  • Construction loans also bear the risk that the general contractor, who may or may not be a loan customer, may not finish the construction project as planned because of financial pressure or other factors unrelated to the project. ● Commercial and industrial loans carry risks associated with the successful operation of a business because repayment of these loans may be dependent upon the profitability and cash flows of the business.
  • Results of Operations Executive Overview The Company’s 2025 financial highlights: ● The Company acquired Touchstone Bankshares, Inc. on October 1, 2024, and completed the operational merger in the first quarter of 2025. ● Net income available to common shareholders was $17.7 million and diluted earnings per share was $1.96 compared to net income of $7.0 million and diluted earnings per share of $1.00 in 2024. ● Earnings produced a return on average equity of 10.10% for 2025 compared to 5.33% for 2024. ● Period end loans, net, decreased $15.2 million in 2025 as compared to 2024. ● Period end deposits decreased $4.2 million in 2025 as compared to 2024. ● The 2025 provision for credit losses on loans totaled $2.9 million, compared to $7.9 million in 2024. ● Nonperforming assets as a percentage of total loans were 0.32% on December 31, 2025, compared to 0.50% in 2024. ● The net interest margin increased to 3.88% for 2025, compared to 3.51% in 2024.
  • Net Income Net income increased by $10.7 million to $17.7 million, or $1.96 per diluted shar e, for the year ended December 31, 2025 , compared to $7.0 million, or $1.00 per diluted share , for the same period in 2024 .
  • Return on average assets was 0.87% and return on average equity was 10.10% for the year ended December 31, 2025 , compared to 0.44% and 5.33%, respectively, for the year ended December 31, 2024 .
  • The $10.7 million increase in net income resulted from a $20.8 million increase in net interest income, a $5.9 million decrease in merger expenses associated with the Touchstone acquisition, a $5.0 million decrease in provision for credit losses partially associated with the acquisition, and a $638 thousand increase in noninterest income .
  • These favorable variances were partially offset by a $12.5 million, or 24%, increase in noninterest expense and a $3.2 million increase in income tax expense.
  • The following is selected financial data for the Company for the years ended December 31, 2025 and 2024.
  • As of and for the years ended December 31, 2025 2024 Results of Operations Interest and dividend income $ 99,497 $ 76,319 Interest expense 26,251 23,867 Net interest income 73,246 52,452 Provision for credit losses 2,887 7,850 Net interest income after provision for credit losses 70,359 44,602 Noninterest income 17,018 16,380 Noninterest expense 65,433 52,934 Income before income taxes 21,944 8,048 Income tax expense 4,241 1,082 Net income $ 17,703 $ 6,966 Key Performance Ratios Return on average assets 0.87 % 0.44 % Return on average equity 10.10 % 5.33 % Net interest margin (1) 3.88 % 3.51 % Efficiency ratio (1) 68.18 % 66.73 % Dividend payout 32.27 % 60.54 % Equity to assets 9.14 % 8.28 % Per Common Share Data Net income, basic $ 1.97 $ 1.00 Net income, diluted 1.96 1.00 Cash dividends 0.635 0.605 Book value at period end 18.83 16.48 Financial Condition Assets $ 2,037,978 $ 2,010,281 Loans, net 1,435,026 1,450,195 Securities 326,034 277,329 Deposits 1,799,548 1,803,778 Shareholders’ equity 186,196 166,531 Average shares outstanding, diluted 9,015 6,971 Capital Ratios (2) Leverage 9.13 % 7.95 % Risk-based capital ratios: Common equity Tier 1 capital 12.59 % 11.19 % Tier 1 capital 12.59 % 11.19 % Total capital 13.64 % 12.34 % (1) Thi s performance ratio is a non-GAAP financial measure that the Company believes provides investors with important information regarding operational performance.
  • Efficiency Ratio 2025 2024 Total noninterest expense (GAAP) $ 65,433 $ 52,934 Subtract: other real estate (gain) loss and expense, net (15 ) Subtract: amortization of intangibles (1,767 ) (461 ) Subtract: loss on disposal of premises and equipment, net (47 ) Subtract: merger expenses (2,159 ) (8,107 ) Adjusted non-interest expense (non-GAAP) $ 61,530 $ 44,304 Tax-equivalent net interest income (non-GAAP) $ 73,613 $ 52,821 Total noninterest income (GAAP) 17,018 16,380 Gain on subordinated debt payoff (80 ) — Bargain purchase gain from acquisition (304 ) (2,920 ) Securities losses (gains), net — Adjusted income for efficiency ratio (non-GAAP) $ 90,247 $ 66,396 Efficiency ratio (non-GAAP) 68.18 % 66.73 % This report also refers to net interest margin, which is calculated by dividing tax equivalent net interest income by total average earning assets.
  • The tax rate utilized in calculating the tax benefit for both 2025 and 2024 is 21%.
  • Reconciliation of Net Interest Income to Tax-Equivalent Net Interest Income 2025 2024 GAAP measures: Interest income – loans $ 85,174 $ 63,483 Interest income – investments and other 14,323 12,836 Interest expense – deposits (24,292 ) (20,964 ) Interest expense – federal funds purchased — (1 ) Interest expense – subordinated debt (1,687 ) (603 ) Interest expense – junior subordinated debt (266 ) (270 ) Interest expense – other borrowings (6 ) (2,029 ) Total net interest income $ 73,246 $ 52,452 Non-GAAP measures: Tax benefit realized on non-taxable interest income - loans $ $ Tax benefit realized on non-taxable interest income - municipal securities Total tax benefit realized on non-taxable interest income $ $ Total tax-equivalent net interest income $ 73,613 $ 52,821 Net Interest Income Net interest income represents the primary source of earnings for the Company.
  • Noninterest income primarily consists of income from service charges on deposit accounts, ATM and check card income, wealth management income, income from other customer services, and income from bank owned life insurance.
  • Noninterest expense primarily consists of salaries and benefits, occupancy and equipment expenses, marketing expenses, legal and professional fees, data processing expenses, atm and check card expenses, FDIC assessments, bank franchise taxes, merger expenses and other operating expenses.
  • Net interest income increased $20.8 million, or 39.6%, to $73.2 million for 2025 compared to the prior year.
  • Total interest income increased by $23.2 million and was partially offset by total interest expense, which increased by $2.4 million.
  • The net interest margin increased by 37-basis points to 3.88% and average earnings assets increased by $393.5 million, or 26.1%, offset by a $279.9 million, or 27.1%, increase in average interest-bearing liabilities, in each case primarily related to the acquisition of Touchstone.
  • The increase in total interest income was primarily attributable to a $21.7 million, or 34%, increase in interest income and fees on loans.
  • The increase in interest income on loans was attributable to a 12-basis point increase in the yield on loans and a 31.5% increase in average loan balances compared to the prior year due to the acquisition of Touchstone.
  • The increase in total interest expense was attributable to a $3.3 million increase in interest expense on deposits offset by a $2.0 million decrease in interest expense on other borrowings.
  • Although there was a 31-basis point decrease in the cost of interest-bearing liabilities, interest expense increased due to a 31.9% increase in average interest-bearing deposits due to the acquisition of Touchstone.
  • The net interest margin was 3.88% for the year ended December 31, 2025 , compared to the 3.51% for the prior year as the increase in the yield on earning assets exceeded the increase in cost of funds during 2025.
  • Net accretion income related to acquisition accounting was $1.1 million, or a six-basis point incremental increase to the net interest margin.
  • The following table provides information on average interest-earning assets and interest-bearing liabilities for the years ended December 31, 2025 and 2024 as well as amounts and rates of tax equivalent interest earned and interest paid (dollars in thousands).
  • Average Balances, Income and Expense, Yields and Rates (Taxable Equivalent Basis) Years Ending December 31, 2025 2024 Average Balance Interest Income/Expense Yield/Rate Average Balance Interest Income/Expense Yield/Rate Assets Interest-bearing deposits in other banks $ 160,064 $ 6,913 4.32 % $ 124,407 $ 6,490 5.22 % Securities: Taxable 236,181 5,923 2.51 % 221,611 4,733 2.14 % Tax-exempt (1) 51,613 1,502 2.91 % 53,289 1,547 2.90 % Restricted 4,377 5.94 % 2,522 8.01 % Total securities 292,171 7,685 2.63 % 277,422 6,482 2.34 % Loans: (2) Taxable 1,441,319 84,982 5.90 % 1,096,312 63,320 5.78 % Tax-exempt (1) 3,978 6.13 % 2,561 8.04 % Total loans 1,445,297 85,226 5.90 % 1,098,873 63,526 5.78 % Federal funds sold 4.52 % 4,244 4.44 % Total earning assets 1,898,424 99,864 5.26 % 1,504,946 76,687 5.10 % Less: allowance for credit losses on loans (15,437 ) (13,381 ) Total nonearning assets 143,540 105,585 Total assets $ 2,026,527 $ 1,597,150 Liabilities and Shareholders’ Equity Interest-bearing deposits: Checking $ 377,944 $ 4,880 1.29 % $ 278,558 $ 4,870 1.75 % Money market accounts 332,467 7,370 2.22 % 294,818 8,265 2.80 % Savings accounts 210,510 0.36 % 160,795 0.18 % Certificates of deposit: Less than $250 292,203 8,831 3.02 % 192,456 5,856 3.01 % Greater than $250 71,438 2,455 3.44 % 46,846 1,668 3.56 % Brokered deposits — — 0.00 % 4.82 % Total interest-bearing deposits 1,284,562 24,292 1.89 % 973,761 20,964 2.15 % Federal funds purchased — 0.00 % — 5.24 % Subordinated debt 20,308 1,687 8.31 % 8,889 6.78 % Junior subordinated debt 9,279 2.86 % 9,279 2.91 % Other borrowings 4.28 % 42,486 2,029 4.78 % Total interest-bearing liabilities 1,314,287 26,251 2.00 % 1,034,417 23,866 2.31 % Noninterest-bearing liabilities Demand deposits 527,756 422,981 Other liabilities 9,220 9,037 Total liabilities 1,851,263 1,466,435 Shareholders’ equity 175,264 130,715 Total liabilities and shareholders’ equity $ 2,026,527 $ 1,597,150 Net interest income $ 73,613 $ 52,821 Interest rate spread 3.26 % 2.79 % Cost of funds 1.43 % 1.64 % Interest expense as a percent of average earning assets 1.38 % 1.59 % Net interest margin 3.88 % 3.51 % (1) Income and yields are reported on a taxable-equivalent basis assuming a federal tax rate of 2 1%.
  • The tax-equivalent adjustment was $367 thousand for 2025 , and $369 thousand for 2024 .
  • Volume and Rate Years Ending December 31, 2025 Volume Effect Rate Effect Change in Income/Expense Interest-bearing deposits in other banks $ 1,064 $ (641 ) $ Loans, taxable 20,361 1,300 21,661 Loans, tax-exempt (28 ) Securities, taxable 1,190 Securities, tax-exempt (51 ) (45 ) Securities, restricted (31 ) Federal funds sold (152 ) (148 ) Total earning assets $ 21,706 $ 1,471 $ 23,177 Checking $ $ (29 ) $ Money market accounts 1,418 (2,313 ) (895 ) Savings accounts Certificates of deposits: Less than $250 2,993 (18 ) 2,975 Greater than $250 (56 ) Brokered deposits (13 ) — (13 ) Subordinated debt 1,085 Junior subordinated debt — (4 ) (4 ) Other borrowings (1,833 ) (191 ) (2,024 ) Total interest-bearing liabilities $ 4,480 $ (2,095 ) $ 2,385 Change in net interest income $ 17,226 $ 3,566 $ 20,792 Provision for Credit Losses Provision for credit losses totaled $2.9 million in 2025, compared to a provision for credit losses of $7.9 million for the prior year.
  • The 2025 provision was comprised of a $2.8 million provision for credit losses on loans, a $141 thousand provision for credit losses on unfunded commitments, and a $12 thousand recovery of credit losses on held-to-maturity securities.
  • Included in the provision for credit losses for the fourth quarter of 2024 was a $3.8 million initial provision expense on non- purchased credit deteriorated (PCD) loans acquired from Touchstone.
  • For the year ended December 31, 2025 , the provision for credit los ses on loans of $2.8 million and net charge offs of $4.4 million resulted in a $1.7 million decrease in the allowance for credit losses on loans.
  • The $4.4 million of net charge-offs included $1.3 million of loans purchased through a third-party lending program and $650 thousand of related unamortized purchase premiums on the loans.
  • Outside of the initial provision expense recorded on non-PCD loans in 2024, the general reserve component of the ACLL decreased $395 thousand and the specific reserve component of the ACLL decreased $1.3 million in 2025.
  • The decrease in the general reserve was attributable to a decrease in loans.
  • The specific reserve decrease was driven by lower individually analyzed loans balances following charge-offs recorded in 2025.
  • For the year ended December 31, 2024 , the provision for credit losses on loans of $7.8 million, the allowance for credit losses on acquired PCD loans of $386 thousand, and net charge offs of $3.8 million resulted in a $4.4 million increase in the allowance for credit losses on loans.
  • Noninterest Income Noninterest income totaled $17.0 million for the year, which was an increase of $638 thousand, or 3.9%, compared to $16.4 million for the prior year.
  • The increase was primarily from increases in ATM and check card fees of $1.3 million, or 38.7%, and service charges on deposit accounts of $833 thousand, or 26.7%.
  • Noninterest income categories with moderate increases over the prior year included brokered mortgage fees which increased $397 thousand, or 157.5%, income from bank owned life insurance which increased $389 thousand, or 51.5%, and fees for other customer services which increased $221 thousand, or 22.9%.
  • These increases were offset by a decrease of $2.6 million from the bargain purchase gain recognized on the acquisition of Touchstone.

and 311 more.

Gone since FY2024

  • Issuer Purchases of Equity Securities There was no authorized repurchase plan and related repurchase of common stock during 2024.
  • Management’s Discussion and Analysis of Financial Condition and Results of Operation The following discussion and analysis of the financial condition and results of operations of the Company for the years ended December 31, 2024 and 2023 should be read in conjunction with the consolidated financial statements and related notes to the consolidated financial statements included in Item 8 of this Form 10-K.
  • Construction loans also bear the risk that the general contractor, who may or may not be a loan customer, may be unable to finish the construction project as planned because of financial pressure or other factors unrelated to the project. ● Commercial and industrial loans carry risks associated with the successful operation of a business because repayment of these loans may be dependent upon the profitability and cash flows of the business.
  • The Company recorded an allowance for credit losses on held-to-maturity securities of $132 thousand upon adoption of ASC 326.
  • For further information, refer to Note 2 “Acquisitions” in Part I, Item 1 of this Annual Report.
  • PCD loans are recorded at the amount paid.
  • Goodwill The Company reviews the carrying value of goodwill at least annually or more frequently if certain impairment indicators exist.
  • In testing goodwill for impairment, the Company first considers qualitative factors to determine whether the existence of events or circumstances lead 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 concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then no further testing would be required and the goodwill of the reporting unit would not be impaired.
  • If the Company elects to bypass the qualitative assessment or if we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the fair value of the reporting unit will be compared with its carrying value to determine whether an impairment exists.
  • The Company evaluated goodwill as of June 30, 2024 and determined there was no impairment.
  • Results of Operations Executive Overview The Company’s 2024 financial highlights: ● The Company completed the acquisition of Touchstone Bankshares, Inc. on October 1. ● Net income available to common shareholders was $7.0 million and diluted earnings per share was $1.00 compared to net income of $9.6 million and diluted earnings per share of $1.53 in 2023. ● Earnings produced a return on average equity of 5.33% for 2024 compared to 8.59% for 2023. ● Period end loans, net, grew $493.1 million in 2024 as compared to 2023. ● Period end deposits grew $570.1 million in 2024 as compared to 2023. ● The 2024 provision for credit losses on loans totaled $7.9 million, compared to $6.2 million in 2023. ● Nonperforming assets as a percentage of total loans were 0.50% at December 31, 2024, compared to 0.70% in 2023. ● The net interest margin increased ten basis points to 3.51% for 2024, compared to 3.41% in 2023.
  • Net Income Net income decreased by $2.6 million to $7.0 million, or $1.00 per diluted shar e, for the year ended December 31, 2024 , compared to $9.6 million, or $1.53 per diluted share , for the same period in 2023 .
  • Return on average assets was 0.44% and return on average equity was 5.33% for the year ended December 31, 2024 , compared to 0.71% and 8.59%, respectively, for the year ended December 31, 2023 .
  • The $2.6 million decrease in net income resulted from a $8.1 million increase in merger expenses associated with the Touchstone acquisition and a $1.7 million increase in provision for credit losses partially associated with the acquisition.
  • These unfavorable variances were partially offset by a $9.0 million, or 21%, increase in net interest income, a $4.6 million, or 39%, increase in noninterest income, and a $1.1 million decrease in income tax expense.
  • The following is selected financial data for the Company for the years ended December 31, 2024 and 2023.
  • As of and for the years ended December 31, 2024 2023 Results of Operations Interest and dividend income $ 76,319 $ 57,719 Interest expense 23,867 14,306 Net interest income 52,452 43,413 Provision for credit losses 7,850 6,150 Net interest income after provision for credit losses 44,602 37,263 Noninterest income 16,380 11,784 Noninterest expense 52,934 37,242 Income before income taxes 8,048 11,805 Income tax expense 1,082 2,181 Net income $ 6,966 $ 9,624 Key Performance Ratios Return on average assets 0.44 % 0.71 % Return on average equity 5.33 % 8.59 % Net interest margin (1) 3.51 % 3.41 % Efficiency ratio (1) 66.73 % 67.69 % Dividend payout 60.54 % 39.05 % Equity to assets 8.28 % 7.97 % Per Common Share Data Net income, basic $ 1.00 $ 1.54 Net income, diluted 1.00 1.53 Cash dividends 0.605 0.600 Book value at period end 16.48 18.06 Financial Condition Assets $ 2,010,281 $ 1,419,295 Loans, net 1,450,195 957,456 Securities 277,329 303,179 Deposits 1,803,778 1,233,726 Shareholders’ equity 166,531 116,271 Average shares outstanding, diluted 6,971 6,279 Capital Ratios (2) Leverage 7.95 % 9.31 % Risk-based capital ratios: Common equity Tier 1 capital 11.19 % 12.82 % Tier 1 capital 11.19 % 12.82 % Total capital 12.34 % 14.05 % (1) Thi s performance ratio is a non-GAAP financial measure that the Company believes provides investors with important information regarding operational performance.
  • Efficiency Ratio 2024 2023 Total noninterest expense (GAAP) $ 52,934 $ 37,242 Subtract: other real estate (gain) loss and expense, net (15 ) Subtract: amortization of intangibles (461 ) (18 ) Subtract: loss on disposal of premises and equipment, net (47 ) — Subtract: merger expenses (8,107 ) — Adjusted non-interest expense (non-GAAP) $ 44,304 $ 37,423 Tax-equivalent net interest income (non-GAAP) $ 52,821 $ 43,738 Total noninterest income (GAAP) 16,380 11,784 (Gain) loss on disposal of premises and equipment — (47 ) Gain on sale of other investment — (186 ) Bargain purchase gain from acquisition (2,920 ) — Securities losses (gains), net — Adjusted income for efficiency ratio (non-GAAP) $ 66,396 $ 55,289 Efficiency ratio (non-GAAP) 66.73 % 67.69 % This report also refers to net interest margin, which is calculated by dividing tax equivalent net interest income by total average earning assets.
  • The tax rate utilized in calculating the tax benefit for both 2024 and 2023 is 21%.
  • Reconciliation of Net Interest Income to Tax-Equivalent Net Interest Income 2024 2023 GAAP measures: Interest income – loans $ 63,483 $ 49,293 Interest income – investments and other 12,836 8,426 Interest expense – deposits (20,964 ) (13,660 ) Interest expense – federal funds purchased (1 ) — Interest expense – subordinated debt (603 ) (277 ) Interest expense – junior subordinated debt (270 ) (271 ) Interest expense – other borrowings (2,029 ) (98 ) Total net interest income $ 52,452 $ 43,413 Non-GAAP measures: Tax benefit realized on non-taxable interest income - loans $ $ — Tax benefit realized on non-taxable interest income - municipal securities Total tax benefit realized on non-taxable interest income $ $ Total tax-equivalent net interest income $ 52,821 $ 43,738 Net Interest Income Net interest income represents the primary source of earnings for the Company.
  • Noninterest income and expense primarily consists of income from service charges on deposit accounts, ATM and check card income, wealth management income, income from other customer services, income from bank owned life insurance, and general and administrative expenses.
  • Net interest income increased $9.0 million, or 21%, to $52.5 million for 2024 compared to the prior year.
  • Total interest income increased by $18.6 million and was partially offset by total interest expense, which increased by $9.6 million.
  • The net interest margin increased by 10-basis points to 3.51% and average earnings assets increased by $224.0 million, or 17%, offset by a $186.2 million, or 22%, increase in average interest-bearing liabilities, in each case primarily related to the acquisition of Touchstone.
  • The increase in total interest income was primarily attributable to a $14.2 million, or 29%, increase in interest income and fees on loans.
  • The increase in interest income on loans was attributable to a 52-basis point increase in the yield on loans and a 17% increase in average loan balances compared to the prior year in part due to the acquisition of Touchstone.
  • The increase in total interest expense was attributable to a $7.3 million increase in interest expense on deposits.
  • The higher interest expense on deposits resulted from a 51-basis point increase in the cost of interest-bearing deposits and a 17% increase in average interest-bearing deposits in part due to the acquisition of Touchstone.
  • The increase in the cost of deposits was also impacted by a change in the composition of the deposit portfolio as lower cost deposit balances decreased, while higher cost deposit balances increased.
  • The net interest margin was 3.51% for the year ended December 31, 2024, compared to the 3.41% for the prior year as the increase in the yield on earning assets exceeded the increase in cost of funds during 2024.
  • Net accretion income related to acquisition accounting was $408 thousand, or a three-basis point incremental increase to the net interest margin.
  • The following table provides information on average interest-earning assets and interest-bearing liabilities for the years ended December 31, 2024 and 2023 as well as amounts and rates of tax equivalent interest earned and interest paid (dollars in thousands).
  • Average Balances, Income and Expense, Yields and Rates (Taxable Equivalent Basis) Years Ending December 31, 2024 2023 Average Balance Interest Income/Expense Yield/Rate Average Balance Interest Income/Expense Yield/Rate Assets Interest-bearing deposits in other banks $ 124,407 $ 6,490 5.22 % $ 36,050 $ 1,809 5.02 % Securities: Taxable 221,611 4,733 2.14 % 252,470 5,286 2.09 % Tax-exempt (1) 53,289 1,547 2.90 % 53,524 1,545 2.89 % Restricted 2,522 8.01 % 1,923 5.79 % Total securities 277,422 6,482 2.34 % 307,917 6,942 2.25 % Loans: (2) Taxable 1,096,312 63,320 5.78 % 937,013 49,293 5.26 % Tax-exempt (1) 2,561 8.04 % — — 0.00 % Total loans 1,098,873 63,526 5.78 % 937,013 49,293 5.26 % Federal funds sold 4,244 4.44 % — — 0.00 % Total earning assets 1,504,946 76,687 5.10 % 1,280,980 58,044 4.53 % Less: allowance for credit losses on loans (13,381 ) (8,994 ) Total nonearning assets 105,585 91,353 Total assets $ 1,597,150 $ 1,363,339 Liabilities and Shareholders’ Equity Interest-bearing deposits: Checking $ 278,558 $ 4,870 1.75 % $ 269,551 $ 4,538 1.68 % Money market accounts 294,818 8,265 2.80 % 219,655 4,882 2.22 % Savings accounts 160,795 0.18 % 173,075 0.12 % Certificates of deposit: Less than $250 187,664 5,656 3.01 % 84,387 1,641 1.94 % Greater than $250 46,846 1,668 3.56 % 82,184 2,275 2.77 % Brokered deposits 5,080 4.20 % 3,061 3.70 % Total interest-bearing deposits 973,761 20,964 2.15 % 831,913 13,660 1.64 % Federal funds purchased — 5.24 % 5.90 % Subordinated debt 8,889 6.78 % 4,997 5.54 % Junior subordinated debt 9,279 2.91 % 9,279 2.92 % Other borrowings 42,486 2,029 4.78 % 1,973 4.90 % Total interest-bearing liabilities 1,034,417 23,866 2.31 % 848,177 14,306 1.69 % Noninterest-bearing liabilities Demand deposits 422,981 397,932 Other liabilities 9,037 5,147 Total liabilities 1,466,435 1,251,256 Shareholders’ equity 130,715 112,083 Total liabilities and shareholders’ equity $ 1,597,150 $ 1,363,339 Net interest income $ 52,821 $ 43,738 Interest rate spread 2.79 % 2.84 % Cost of funds 1.64 % 1.15 % Interest expense as a percent of average earning assets 1.59 % 1.12 % Net interest margin 3.51 % 3.41 % (1) Income and yields are reported on a taxable-equivalent basis assuming a federal tax rate of 21%.
  • The tax-equivalent adjustment was $368 thousand for 2024, and $325 thousand for 2023.
  • Volume and Rate Years Ending December 31, 2024 Volume Effect Rate Effect Change in Income/Expense Interest-bearing deposits in other banks $ 4,605 $ $ 4,680 Loans, taxable 8,870 5,158 14,028 Loans, tax-exempt — Securities, taxable (688 ) (553 ) Securities, tax-exempt (11 ) Securities, restricted Federal funds sold — Total earning assets $ 13,237 $ 5,407 $ 18,644 Checking $ $ $ Money market accounts 1,918 1,465 3,383 Savings accounts (13 ) Certificates of deposits: Less than $250 2,768 1,248 4,016 Greater than $250 (1,804 ) 1,196 (608 ) Brokered deposits Federal funds purchased (1 ) — (1 ) Subordinated debt Junior subordinated debt — (2 ) (2 ) Other borrowings 1,935 (2 ) 1,933 Total interest-bearing liabilities $ 5,286 $ 4,274 $ 9,560 Change in net interest income $ 7,951 $ 1,133 $ 9,084 Provision for Credit Losses Provision for credit losses totaled $7.9 million in 2024, compared to a provision for credit losses of $6.2 million for the prior year.
  • The provision was comprised of a $7.8 million provision for credit losses on loans which includes $3.8 million Day-One provision on Non-PCD loans purchased from Touchstone, a $73 thousand provision for credit losses on unfunded commitments, and a $12 thousand recovery of credit losses on held-to-maturity securities.
  • For the year ended December 31, 2024, the provision for credit los ses on loans of $7.8 million, the allow ance for credit losses on acquired PCD loans of $386 thousand, and net charge offs of $3.8 million resulted in a $4.4 million increase in the allowance for credit losses on loans.
  • The general reserve component of the ACLL increased $4.1 million and the specific reserve component of the ACLL increased $374 thousand.
  • The increase in the general reserve was attributable to loan growth.

and 357 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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