Financial Performance - Net income for the quarter ended September 30, 2025, was $9,082,000, up 19.9% from $7,571,000 for the same quarter in 2024[16]. - Net income for the nine months ended September 30, 2025, was $24,222,000, an increase from $19,763,000 in the same period of 2024, representing a growth of approximately 22.8%[22]. - Basic earnings per common share increased to $2.19 for the nine months ended September 30, 2025, compared to $1.79 for the same period in 2024, reflecting a growth of 22.3%[16]. - Diluted EPS for the quarter ended September 30, 2025, was $0.81, compared to $0.68 in the same quarter of 2024, indicating a growth of 19.1%[116]. - On a PTPP basis, earnings for the nine months ended September 30, 2025, were $31.1 million, up $7.8 million, or 33.6% from the prior year[185]. Asset and Loan Growth - Total assets increased to $3,198,478,000 as of September 30, 2025, compared to $3,157,010,000 at December 31, 2024, reflecting a growth of 1.0%[15]. - Net loans reached $2,373,432,000, up from $2,316,069,000 at the end of 2024, representing a 2.5% increase[15]. - The loan portfolio grew by $57.6 million, or 2.5%, in the nine months ended September 30, 2025, with commercial loans increasing by $21.4 million[191]. - The loan portfolio totaled $2,398,510,000 as of September 30, 2025, reflecting a growth from $2,340,940,000 at December 31, 2024[51]. Income and Expenses - Total interest income for the nine months ended September 30, 2025, was $119,539,000, an increase of 8.0% from $109,833,000 for the same period in 2024[16]. - Net interest income after provision for credit losses was $54,688,000 for the nine months ended September 30, 2025, compared to $46,996,000 for the same period in 2024, marking a 16.0% increase[16]. - Non-interest income for the nine months ended September 30, 2025, was $12,606,000, up from $11,919,000 for the same period in 2024, representing a growth of 5.8%[16]. - Total non-interest expense for the nine months ended September 30, 2025, was $37,797,000, compared to $35,011,000 for the same period in 2024, an increase of 7.9%[16]. Deposits and Shareholder Equity - Total deposits rose to $2,737,550,000 as of September 30, 2025, compared to $2,725,251,000 at December 31, 2024, indicating a slight increase of 0.4%[15]. - The total shareholders' equity at September 30, 2025, was $274,566,000, an increase from $256,783,000 at September 30, 2024, marking a growth of approximately 6.9%[19]. Credit Quality and Allowance for Credit Losses - The total ending allowance balance for credit losses as of September 30, 2025, was $186,000, down from $224,000 a year earlier[44]. - The provision for credit losses on loans for the first nine months of 2025 was $1.4 million, significantly up from $58,000 in the same period of 2024[190]. - Non-performing assets stood at 0.30% of total assets as of September 30, 2025, up from 0.14% as of December 31, 2024[189]. - Total past-due loans were 0.69% of total loans as of September 30, 2025, up from 0.40% as of December 31, 2024[189]. Securities and Investments - As of September 30, 2025, the amortized cost of investment securities was $678,664,000, with an estimated fair value of $590,067,000, reflecting unrealized losses of $88,597,000[31]. - The fair value of investment securities is estimated at $273,493,000 as of September 30, 2025, with $219,417,000 in mortgage-backed securities[153]. - The total fair value of AFS debt securities in an unrealized loss position was $238,089,000, with unrealized losses amounting to $42,854,000[39]. Loan Modifications and Foreclosures - Loan modifications for borrowers experiencing financial difficulty totaled $1,391,000 in payment deferrals, $307,000 in term extensions, and $4,034,000 in rate modifications during the three months ended September 30, 2025[61]. - Loans in process of foreclosure as of September 30, 2025, total $998,000, compared to $192,000 as of December 31, 2024[68]. Economic and Market Conditions - The Federal Open Market Committee (FOMC) has lowered short-term interest rates in September and October, signaling potential further cuts depending on inflation targets[29]. - The company anticipates that changes in economic conditions and regulatory environments may impact future performance and financial results[166].

Financial Performance - Net income for the six months ended June 30, 2025, was $15,140,000, reflecting a 24.1% increase from $12,192,000 in the prior year[16]. - Basic earnings per common share increased to $1.37, up from $1.10, representing a growth of 24.5%[16]. - The company reported a comprehensive income of $20,488,000 for the six months ended June 30, 2025, significantly higher than $8,836,000 in the prior year[16]. - Net income for the six months ended June 30, 2025, was $15,140,000, an increase of 24.9% compared to $12,192,000 for the same period in 2024[19]. - The company reported a net cash provided by operating activities of $9,547,000 for the six months ended June 30, 2025, compared to $4,881,000 for the same period in 2024, indicating a significant improvement[19]. - The company reported a total of $1,865 million in loan modifications involving payment deferral and term extension during the three months ended June 30, 2025[51]. Asset and Loan Growth - Total assets increased to $3,199,510,000 as of June 30, 2025, up from $3,157,010,000 at December 31, 2024, representing a growth of 1.1%[15]. - Net loans rose to $2,369,178,000, compared to $2,316,069,000 at the end of 2024, marking an increase of 2.3%[15]. - The total loan portfolio amounted to $2,394,007,000, an increase from $2,340,940,000 at December 31, 2024, and $2,247,670,000 at June 30, 2024, reflecting a year-over-year growth of 6.5%[43]. - The loan portfolio increased by $53.1 million or 2.3% in the six months ended June 30, 2025[182]. Interest Income and Expenses - Total interest income for the six months ended June 30, 2025, was $78,534,000, up 9.2% from $71,546,000 in the same period of 2024[16]. - Net interest income after provision for credit losses increased to $35,330,000, a rise of 17.5% from $29,956,000 year-over-year[16]. - Total interest paid increased to $42,250,000 for the six months ended June 30, 2025, compared to $40,905,000 in 2024, reflecting a rise of 3.3%[20]. - Net interest income rose by $6.3 million or 20.9% to $36.2 million for the six months ended June 30, 2025, compared to $30.0 million for the same period in 2024[188]. Deposits and Equity - Total deposits decreased slightly to $2,705,337,000 from $2,725,251,000, a decline of 0.7%[15]. - Total shareholders' equity increased to $265,492,000 as of June 30, 2025, up from $244,668,000 at June 30, 2024, reflecting a growth of 8.4%[18]. - Cash dividends declared per share increased from $0.71 to $0.73, representing a 2.8% increase year-over-year[19]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses (ACL) is determined using a discounted cash flow approach, considering historical losses and economic forecasts[58]. - The total ending balance of the Allowance for Credit Losses (ACL) was $24,829,000, a slight decrease from $24,871,000 at the beginning of the period[96]. - The ACL for commercial real estate owner-occupied loans was $5,195,000 as of June 30, 2025, reflecting a specific reserve based on historical loss experience[71]. - The total non-accrual loans amounted to $6,039 million, a decrease from $6,248 million on December 31, 2024, representing a reduction of approximately 3.35%[48]. Securities and Investments - As of June 30, 2025, the total amortized cost of investment securities was $325,381,000, with an estimated fair value of $278,248,000, reflecting unrealized losses of $47,630,000[26]. - The total fair value of AFS debt securities in an unrealized loss position was $240,853,000, with unrealized losses amounting to $(47,630,000)[33]. - The company invests only in investment-grade securities, with no credit losses recognized on currently held securities[163]. - The total securities held by the company amounted to $653.9 million as of June 30, 2025, compared to $651.6 million at December 31, 2024, and $658.1 million at June 30, 2024[203]. Economic Outlook and Market Conditions - The company reported a favorable market response to a domestic budget package that included spending reforms and tax cuts, which has helped reduce volatility[24]. - The future economic outlook remains uncertain due to potential tariffs and ongoing trade negotiations, which could impact the company's operating results[24]. - The overall health of the economy, including unemployment rates and housing prices, significantly impacts the credit quality of the loan portfolio[66]. Non-Interest Income and Expenses - Non-interest income for the six months ended June 30, 2025, was $8,131,000, an increase of 4.3% compared to $7,797,000 in the same period of 2024[16]. - Non-interest expense for the six months ended June 30, 2025, was $25.0 million, up $2.0 million or 8.8% from the same period in 2024[179]. - The expense related to the 401(k) plan for the six months ended June 30, 2025, was $564,000, a slight decrease from $585,000 in the same period of 2024[106].

Financial Performance - Net income for the first quarter of 2025 was $7,077,000, reflecting a 17.6% increase from $6,021,000 in the first quarter of 2024[16]. - Basic earnings per common share increased to $0.64 for Q1 2025, compared to $0.55 for Q1 2024, representing a growth of 16.4%[16]. - Net interest income for the three months ended March 31, 2025, was $17,799,000, up 19.3% from $14,880,000 in the same period of 2024[16]. - Non-interest income increased to $4,002,000 for Q1 2025, up from $3,640,000 in Q1 2024, indicating a growth of 9.9%[16]. - Non-interest expense rose to $12,844,000 in Q1 2025, compared to $11,761,000 in Q1 2024, an increase of 9.2%[16]. - The company reported income taxes on operating earnings of $1.5 million, an increase of $237,000 from the same period in 2024[189]. - Return on average assets improved to 0.91% and return on average tangible common equity increased to 12.64% for the three months ended March 31, 2025, compared to 0.82% and 11.36% in 2024[179]. Asset and Loan Growth - Total assets increased to $3,187,372,000 as of March 31, 2025, up from $3,157,010,000 at December 31, 2024, representing a growth of 0.9%[15]. - Net loans rose to $2,358,036,000, compared to $2,316,069,000 at the end of 2024, marking an increase of 1.8%[15]. - The loan portfolio totaled $2,383,150,000 as of March 31, 2025, reflecting an increase from $2,340,940,000 at December 31, 2024, and $2,173,746,000 at March 31, 2024[45]. - The total past-due loans amounted to $7,972,000 as of March 31, 2025, with 4,652,000 classified as 90+ days past due[48]. - The total current loans as of March 31, 2024, were $2,173,746,000, with $2,048,000 in total past due[49]. Deposits and Equity - Total deposits decreased slightly to $2,711,335,000 as of March 31, 2025, from $2,725,251,000 at the end of 2024, a decline of 0.5%[15]. - Shareholders' equity increased to $259,681,000 as of March 31, 2025, up from $252,493,000 at the end of 2024, a growth of 2.5%[15]. - Cash dividends declared increased to $0.36 per share for Q1 2025, compared to $0.35 per share in Q1 2024[17]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses (ACL) for loans stood at 1.05% of loans outstanding as of March 31, 2025, compared to 1.06% at the end of 2024[175]. - The total allowance for credit losses (ACL) is $25,114,000, with specific reserves on loans evaluated individually at $1,029,000[71]. - The provision for credit losses on loans for Q1 2025 was $396,000, an increase from $99,000 in Q1 2024[175]. - The total non-accrual loans as of March 31, 2025, reached $6,053,000, with $1,348,000 having an allowance for credit loss[51]. Securities and Investments - The fair value of available-for-sale securities was estimated at $280,764,000 as of March 31, 2025, down from $274,680,000 at the end of 2024[27]. - The net unrealized loss on securities available for sale was $40.864 million as of March 31, 2025[186]. - The company reported AFS debt securities in an unrealized loss position with a fair value of $247.7 million and unrealized losses of $49.4 million as of March 31, 2025[202]. - The total fair value of securities available for sale is $280,764,000, with $18,950,000 in U.S. Government-sponsored agencies and $226,877,000 in mortgage-backed securities[140]. Operational Efficiency - Cash flows from operating activities provided $2,180,000 in Q1 2025, a significant recovery from a cash outflow of $1,497,000 in Q1 2024[19]. - The company reported a change in net unrealized loss on available-for-sale securities of $(3,969,000) in Q1 2025, contrasting with a gain of $3,241,000 in Q1 2024[20]. - The total pledged loans for collateral agreements reached $631,410,000 as of March 31, 2025, compared to $565,047,000 at March 31, 2024[46]. Market Conditions and Risks - Interest paid increased to $20,843,000 in Q1 2025, up from $19,521,000 in Q1 2024, reflecting rising interest rates[20]. - The company holds high credit quality municipal debt obligations, primarily rated A- or higher, with a history of zero to near-zero credit loss[36]. - The company categorizes commercial loans using an internal risk rating system with eight levels, from "Strong" to "Doubtful"[78][85].

Financial Position and Investment - As of December 31, 2024, the company had $274.7 million in available for sale investment securities and $369.9 million in held to maturity investment securities[86]. - Any significant impairment charges in the investment portfolio could adversely affect the company’s liquidity and regulatory capital ratios[86]. - The company’s investment management revenues are directly tied to the asset values of investments, which may fluctuate due to market conditions[91]. Interest Rate and Economic Conditions - The company’s net interest income may be adversely affected if interest rates on deposits increase faster than those on loans, potentially impacting earnings[85]. - A decrease in loan demand during weak economic conditions could significantly impact the commercial loan portfolio and net interest income[89]. - Economic conditions, including inflation and interest rate changes, may adversely affect the company's financial condition and results[107]. Regulatory Environment - The company operates in a highly regulated environment, and changes in laws and regulations could adversely affect its results of operations or financial condition[108]. - The Dodd-Frank Act and the establishment of the Consumer Financial Protection Bureau have introduced new regulations that may impact the company's revenues and increase operational costs[109]. - New government regulations could result in more stringent ESG oversight, affecting compliance costs and operational expenses[121]. - Changes in accounting standards and regulations may impact the company's financial reporting and compliance costs[120]. Competition and Market Conditions - The company has experienced significant competition in the financial services industry, which may impact its market share and income from loans and deposits[113]. - The average monthly trading volume of the company's common stock was 341,788 shares for the year ended December 31, 2024, indicating limited trading activity[114]. - The company's common stock price is subject to fluctuations due to various factors, including quarterly operating results and general economic conditions[115]. Capital Management and Shareholder Impact - The inability to receive dividends from the Bank could negatively affect the company's ability to pay dividends to shareholders[117]. - The company must strategically manage its capital position to maintain a competitive return on equity and avoid lower stock prices[118]. - The company may issue additional equity securities, which could dilute book value and adversely affect the market price of common stock[119]. - The company is not restricted from issuing additional shares of common stock, which could lead to dilution for existing shareholders[119]. - The company’s Board of Directors has the authority to issue preferred stock without shareholder approval, which could affect common stockholder rights[119]. Operational and Technological Risks - The company faces risks related to technological changes and must invest in new technology to remain competitive, which could increase operational costs[94]. - The company is exposed to operational risks from other financial institutions, which could lead to market-wide liquidity problems[90]. - The company has implemented security measures to protect against potential cyberattacks, but risks remain due to the evolving nature of such threats[95]. Legal and Reputational Risks - The company faces potential financial liability and reputational damage from claims and litigation, which could adversely affect its financial condition and results of operations[100]. - The company maintains reserves for certain claims when deemed appropriate, but unresolved legal actions may take years to resolve and could impact financial performance[100]. ESG Considerations - Environmental, social, and governance (ESG) oversight may influence stock price and increase compliance costs, impacting overall operational costs[120]. - Investors are increasingly focused on ESG factors, which may impact the trading price of the company's common stock if actions are deemed unsatisfactory[121]. Acquisition Risks - Potential acquisitions may disrupt business and dilute shareholder value, with risks associated with paying premiums over book and market values[122]. - Acquisitions could fail to realize expected revenue increases and cost savings, leading to a material adverse effect on the company[122].

Financial Performance - Net income for the nine months ended September 30, 2024, was $19,763,000, a decrease of 13.8% from $22,839,000 in the same period of 2023[10]. - Basic earnings per common share decreased to $1.79 for the nine months ended September 30, 2024, down from $2.08 in the prior year[10]. - Comprehensive income for the nine months ended September 30, 2024, was $24,515,000, compared to $14,577,000 in the same period of 2023, indicating a significant increase of approximately 68%[16]. - Net income for the nine months ended September 30, 2024, was $19,763,000, a decrease from $22,839,000 in the same period of 2023, representing a decline of approximately 9%[16]. - The company reported a net cash provided by operating activities of $14,638,000 for the nine months ended September 30, 2024, down from $26,193,000 in 2023, a decrease of about 44.8%[16]. - The pre-tax, pre-provision net income for the nine months ended September 30, 2024, was $23,265,000, compared to $28,113,000 for the same period in 2023, showing a decrease of about 17.5%[163]. - Net income for the nine months ended September 30, 2024 was $19.8 million, down 13.5% from the same period in 2023[164]. - Earnings per common share on a fully diluted basis were $1.78 for the nine months ended September 30, 2024, a decrease of 13.9% from $2.06 in 2023[164]. Asset Growth - Total assets increased to $3,142,563,000 as of September 30, 2024, up from $2,944,139,000 a year earlier, representing a growth of 6.7%[7]. - Total assets as of September 30, 2024, amounted to $3,017,045,000, an increase from $2,839,908,000 in the same period of 2023[173]. - Total deposits rose to $2,702,718,000, reflecting an increase of 3.9% from $2,599,937,000 a year ago[7]. - Total deposits increased to $2,574,655,000 for the nine months ended September 30, 2024, compared to $2,468,328,000 in the same period of 2023[173]. - The balance of common stock and additional paid-in capital increased to $71,500,000 as of September 30, 2024, from $69,760,000 at the end of September 2023, an increase of approximately 2.5%[14]. - Total shareholders' equity increased to $256,783,000 as of September 30, 2024, up from $226,665,000 at the end of September 2023, reflecting a growth of about 13.3%[14]. Loan Portfolio - Net loans reached $2,283,254,000, an increase of 10.9% compared to $2,056,538,000 as of September 30, 2023[7]. - As of September 30, 2024, total loan balances reached $2,307,253,000, an increase from $2,129,454,000 as of December 31, 2023, representing a growth of approximately 8.4%[41]. - The commercial real estate owner-occupied loans amounted to $348,287,000, up from $314,819,000 at the end of 2023, reflecting a growth of 15.1%[41]. - The agriculture loan segment was newly established, with balances of $51,274,000 as of September 30, 2024, compared to $45,230,000 at the end of 2023, indicating a growth of 4.6%[41]. - The residential term loans segment reported balances of $698,068,000, which is an increase from $674,855,000 at the end of 2023, representing a growth of 3.6%[41]. - The commercial and industrial (C&I) loans segment saw balances of $368,415,000, up from $315,026,000 at the end of 2023, marking a growth of 16.0%[41]. - The total qualifying loans used to collateralize borrowings from the FHLBB increased to $622,370,000 as of September 30, 2024, compared to $561,574,000 at the end of 2023, representing a growth of 10.8%[41]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses (ACL) is determined using a discounted cash flow approach, considering historical losses and economic forecasts[62]. - The total reserves for credit losses amounted to $23,999,000 as of September 30, 2024, with general reserves based on historical loss experience at $20,870,000[66]. - The allowance for credit losses (ACL) on off-balance sheet credit exposures is recognized as a liability and included within other liabilities on the consolidated balance sheet[69]. - The total ending allowance balance for credit losses was $768,000 for the nine months ended September 30, 2024, reflecting a reduction in credit loss expense of $(487,000)[70]. - The total ACL on loans is considered appropriate to address potential credit losses inherent in the loan portfolio as of September 30, 2024[198]. - The ACL as a percentage of outstanding loans was 1.04% as of September 30, 2024, down from 1.13% as of December 31, 2023, and 1.12% as of September 30, 2023[201]. - The breakdown of the ACL by loan class shows that real estate non-owner occupied loans accounted for 17.7% of total loans as of September 30, 2024[199]. Non-Interest Income and Expenses - Total interest income for the nine months ended September 30, 2024, was $109,833,000, an increase of 17.7% compared to $93,352,000 in 2023[10]. - Total non-interest income increased to $11,919,000 for the nine months ended September 30, 2024, compared to $11,330,000 in the same period of 2023[10]. - Total non-interest expense rose to $35,011,000 for the nine months ended September 30, 2024, up from $32,571,000 in 2023, indicating a 7.5% increase[10]. - Non-interest income for the nine months ended September 30, 2024 was $11.9 million, an increase of 5.2% from the prior year[165]. - Non-interest expense for the nine months ended September 30, 2024, rose by 7.5% to $35.0 million, driven by an 8.2% increase in salaries and employee benefits[176]. Securities and Investment Portfolio - The company reported a net unrealized gain on securities available for sale of $5,181,000 for the nine months ended September 30, 2024, compared to a loss of $9,134,000 in the prior year[10]. - The total amortized cost of U.S. Treasury and Agency securities in the available-for-sale category was $26,040,000, with unrealized losses of $5,305,000, resulting in a fair value of $20,735,000[23]. - The company reported a total of $377,859,000 in amortized cost for securities to be held to maturity, with an estimated fair value of $333,575,000, indicating unrealized losses of $44,654,000[24]. - The total fair value of investment securities was $282,053,000, with $385,669,000 at amortized cost as of December 31, 2023[29]. - The company has the intent and ability to hold AFS securities until recovery of their amortized cost, which may occur at maturity[187]. - The company’s evaluation of securities for impairment considers factors such as the financial condition and credit rating of the issuer, as well as market price volatility[185]. Market and Economic Conditions - The company expressed concerns regarding the national commercial real estate market and its potential impact on the banking industry due to ongoing economic uncertainties[22]. - The Federal Open Market Committee (FOMC) cut interest rates by 0.5% in September 2024, with further rate actions remaining uncertain[158]. - The company’s management continues to monitor geopolitical tensions and their potential impact on economic conditions, which could affect operating results[158]. - The company faces various risks including economic conditions, interest rate volatility, and competition, which could impact future performance and financial results[153].

Financial Performance - The company reported a net income of $12,192,000 for the six months ended June 30, 2024, down from $15,365,000 in the same period last year, a decrease of 20.2%[9]. - Basic earnings per common share for the six months ended June 30, 2024, were $1.10, compared to $1.40 in 2023, a decline of 21.4%[9]. - Net income for the six months ended June 30, 2024, was $12,192,000, compared to $15,365,000 for the same period in 2023, representing a decrease of approximately 20%[15]. - The company reported a comprehensive income of $8,836,000 for the six months ended June 30, 2024, compared to $16,443,000 in 2023, indicating a decrease of about 46%[11]. - The company reported a net loss on disposal of premises and equipment of $9,000 for the six months ended June 30, 2024, compared to a gain of $1,000 in 2023[15]. Asset and Loan Growth - Total assets increased to $3,084,944,000 as of June 30, 2024, up from $2,874,815,000 a year earlier, representing an increase of 7.3%[6]. - Net loans rose to $2,222,977,000, compared to $2,037,488,000 in the same period last year, reflecting an increase of 9.1%[6]. - Total loans as of June 30, 2024, are composed of 39.1% fixed-rate loans and 60.9% adjustable-rate loans[188]. - The loan portfolio increased by $118.2 million or 5.6% in the six months ended June 30, 2024[156]. - As of June 30, 2024, total loan balances reached $2,247,670,000, an increase from $2,129,454,000 as of December 31, 2023, representing a growth of approximately 5.5%[39]. Deposits and Equity - Total deposits decreased slightly to $2,578,080,000 from $2,599,662,000 at the end of 2023, a decline of 0.8%[6]. - Total shareholders' equity increased to $244,668,000 as of June 30, 2024, up from $232,003,000 as of June 30, 2023, reflecting an increase of about 5.5%[13]. - Cash dividends declared increased to $0.71 per share in 2024, up from $0.69 per share in 2023, indicating a rise of approximately 2.9%[11]. Interest Income and Expenses - Total interest income for the six months ended June 30, 2024, was $71,546,000, up from $60,098,000 in 2023, marking an increase of 18.8%[9]. - Net interest income after provision for credit losses was $29,956,000 for the six months ended June 30, 2024, compared to $32,699,000 in 2023, a decrease of 8.4%[9]. - Interest paid increased to $40,905,000 for the six months ended June 30, 2024, compared to $26,369,000 in 2023, reflecting an increase of approximately 55%[16]. - The tax-equivalent net interest income for the six months ended June 30, 2024, was $31,310,000, compared to $34,680,000 for the same period in 2023[151]. Credit Losses and Allowances - The allowance for credit losses was $24,693,000 as of June 30, 2024, slightly up from $23,465,000 a year earlier, indicating a 5.2% increase[6]. - The total allowance for credit losses (ACL) as of June 30, 2024, was $24,693,000, with specific reserves on loans evaluated individually amounting to $241,000[59]. - The provision for credit losses was $638,000 for the first six months of 2024, an increase from $580,000 in the same period of 2023[194]. - The total ending allowance balance for credit losses was $902,000 for state and political subdivisions as of June 30, 2024[33]. Securities and Investments - As of June 30, 2024, the amortized cost of available-for-sale securities was $328,398,000, with an estimated fair value of $273,501,000, reflecting unrealized losses of $54,966,000[21]. - The company reported unrealized losses of $55.0 million on available-for-sale (AFS) securities, representing 16.74% of the amortized cost of the total securities portfolio as of June 30, 2024[177]. - The fair value of mortgage servicing rights was $3,281,000, down from $3,639,000 on June 30, 2023, reflecting a decrease of approximately 9.8% year-over-year[110]. - The company has not recognized any credit losses on securities currently held, indicating a focus on investment-grade securities[149]. Loan Portfolio Quality - The company monitors the performance of modified loans to assess the effectiveness of its modification efforts[52]. - Nonperforming loans as a percentage of total loans increased to 0.11% as of June 30, 2024, compared to 0.10% at December 31, 2023, and 0.08% at June 30, 2023[199]. - The overall loan delinquency ratio improved to 0.15% at June 30, 2024, down from 0.18% at December 31, 2023, and up from 0.14% at June 30, 2023[201]. - The company has maintained a strong credit quality with a majority of loans rated as pass (risk rating 1-5) across various categories[71]. Economic and Market Conditions - The ongoing geopolitical conflicts and economic uncertainties are expected to negatively impact the company's operating results, although the extent is currently indeterminable[20]. - The company highlighted various risks that could affect future performance, including economic conditions and changes in interest rates[144]. - The company continues to monitor the credit quality of its investments through major rating providers and market movements, ensuring all AFS securities are deemed investment grade[25].

Financial Performance - Net income for Q1 2024 was $6,021,000, a decrease of 24.5% from $7,971,000 in Q1 2023[16]. - Basic earnings per common share decreased to $0.55 in Q1 2024 from $0.73 in Q1 2023, reflecting a decline of 24.7%[16]. - Net interest income for Q1 2024 was $14.9 million, a decrease of $2.6 million or 14.8% from Q1 2023, with a net interest margin of 2.22%[201]. - Non-interest income for Q1 2024 was $3.6 million, an increase of $71,000 or 2.0% from Q1 2023, with mortgage banking revenue down $62,000 or 32.3%[193][206]. - The provision for credit losses on loans for Q1 2024 was $99,000, significantly down from $550,000 in Q1 2023, reflecting improved economic conditions[196]. - Pre-tax, pre-provision net income for Q1 2024 was $6.8 million, down from $10.2 million in Q1 2023[190]. - Return on average assets was 0.82% and return on average tangible common equity was 11.36% for Q1 2024, down from 1.16% and 15.64% respectively in Q1 2023[200]. Asset and Loan Growth - Total assets increased to $2,978,170,000 as of March 31, 2024, up from $2,946,698,000 at December 31, 2023, representing a growth of 1.06%[14]. - Net loans rose to $2,149,539,000, compared to $2,105,424,000 at the end of 2023, marking an increase of 2.09%[14]. - The total loan portfolio amounted to $2,173,746,000, an increase from $2,129,454,000 as of December 31, 2023, and $1,982,847,000 as of March 31, 2023[47]. - Total deposits decreased to $2,548,988,000 as of March 31, 2024, down from $2,599,662,000 at the end of 2023, a decline of 1.95%[14]. - The company experienced a net decrease in demand, savings, and money market accounts of $(45,854,000) in Q1 2024[20]. Interest Income and Expenses - Interest income for the three months ended March 31, 2024, was $34,988,000, up 21.5% from $28,914,000 in the same period of 2023[16]. - Total interest income for Q1 2024 was $35.0 million, an increase of $6.1 million or 21.0% compared to Q1 2023, while total interest expense rose by $8.7 million or 75.8% to $20.1 million[201]. - Net interest income on a tax-equivalent basis decreased by $2.5 million or 14.1% in Q1 2024 compared to Q1 2023[192]. Credit Losses and Allowances - The allowance for credit losses (ACL) as a percentage of total loans stood at 1.11% as of March 31, 2024, compared to 1.13% at December 31, 2023, and 1.18% at March 31, 2023[81]. - The total ACL as of March 31, 2024, was $24,207,000, with specific reserves on loans evaluated individually amounting to $243,000[79]. - The allowance for credit losses (ACL) on loans increased by $177,000, while ACL on off-balance commitments and held-to-maturity securities decreased by $360,000 and $252,000, respectively[178]. Securities and Fair Value - The total amortized cost of securities available for sale was $328,648,000 with an estimated fair value of $274,451,000 as of March 31, 2024[27]. - The company reported a net unrealized loss on available-for-sale securities of $(54,316,000) as of March 31, 2024[27]. - The fair value of mortgage servicing rights was $3,423,000 as of March 31, 2024, down from $3,583,000 at December 31, 2023[136]. - The carrying value of total loans was $2,149,539,000, with an estimated fair value of $2,016,120,000, indicating a decrease in fair value of approximately 6.2%[165]. Dividends and Shareholder Returns - The company declared cash dividends of $0.35 per share, totaling $3,896,000 for the period[19]. - Dividends declared year-to-date totaled $0.35 per share, representing a payout of 63.64% of basic earnings per share for the period[191]. Economic and Market Conditions - Concerns regarding economic uncertainty due to geopolitical conflicts and inflation could negatively impact the company's operating results[25]. - The overall health of the economy, including unemployment rates and housing prices, significantly impacts the credit quality across various loan segments[74][76][77].

Financial Condition and Performance - The company had $282.1 million in available for sale investment securities and $385.7 million in held to maturity investment securities as of December 31, 2023[88]. - Economic conditions, including inflation and interest rate changes, may adversely affect the company's financial condition and results of operations[109]. - The company may not be able to sustain its historical rate of growth, which could adversely affect its financial performance[107]. - The inability to receive dividends from the Bank could hinder the Company's ability to pay dividends to shareholders, as dividends from the Bank are the principal source of funds for common stock dividends[119]. - If the Company fails to manage its capital position strategically, it may experience a lower return on equity compared to competitors, potentially delaying the goal of increasing earnings per share and book value per share[120]. - The Company may issue additional equity securities, which could dilute book value and adversely affect the market price of common stock, as there are no restrictions on issuing additional shares[121]. Interest Rate and Loan Demand Risks - Changes in interest rates could adversely affect the company's net interest income and earnings, particularly if rates on deposits rise faster than those on loans[87]. - Loan demand may be limited during weak economic conditions, which could negatively impact the commercial loan portfolio and net interest income[91]. - Loss of lower-cost funding sources could lead to margin compression and decreased net interest income, particularly if customers shift funds to alternative investments[90]. Competition and Market Position - The company faces significant competition from various financial service providers, including larger institutions with more financial resources[115]. - The company’s investment management revenues are directly tied to the asset values of investments, which may fluctuate due to market conditions[93]. - Environmental, social, and governance (ESG) factors are increasingly influencing investment decisions, and inadequate ESG actions could negatively impact the trading price of the Company's common stock[122]. Regulatory and Compliance Issues - The company is subject to increased regulatory scrutiny and compliance costs due to the Dodd-Frank Act and the establishment of the Consumer Financial Protection Bureau[111]. - The company has complied with the fully phased Basel III capital requirements well in advance of the completion date as of December 31, 2023[112]. Operational and Technological Risks - The company faces risks related to technological changes and may struggle to keep pace with competitors who have greater resources for technological investments[96]. - Security breaches or failures in information systems could damage the company's reputation and result in financial liabilities[97]. - The company has ongoing risks related to data and security breaches, which could lead to financial liability and reputational harm[102]. - The company regularly works with third-party information security consultants to enhance its security systems[99]. - The company may face increased operational risks and costs due to climate change and natural disasters affecting its business and customers[104]. Management and Internal Controls - The company is dependent on its management team, and the loss of key personnel could adversely affect its operations and financial condition[94]. - The company’s internal control systems may have inherent limitations, which could lead to undetected errors or fraud[95]. Shareholder Value and Acquisitions - Potential acquisitions may disrupt the Company's business and dilute shareholder value, as acquisitions typically involve paying a premium over book and market values[124]. - The average monthly trading volume of the company's common stock for the year ended December 31, 2023, was 294,570 shares, approximately 2.66% of the average number of outstanding shares[116].

Financial Performance - Net income for the quarter ended September 30, 2023, was $7,474,000, down 26.1% from $10,091,000 in the same quarter of 2022[16]. - Net income for the nine months ended September 30, 2023, was $22,839,000, compared to $29,793,000 for the same period in 2022, representing a decrease of approximately 23.4%[21]. - Earnings per common share on a fully diluted basis were $2.06 for the nine months ended September 30, 2023, down $0.64 or 23.7% from $2.70 in the same period in 2022[192]. - The company reported a net cash provided by operating activities of $26,193,000 for the nine months ended September 30, 2023, down from $32,433,000 in 2022, a decrease of about 19.3%[21]. - The total comprehensive income (loss) for the nine months ended September 30, 2023, was $(15,630,000), compared to $(4,415,000) for the same period in 2022, reflecting a worsening in overall financial performance[19]. Asset and Loan Growth - Total assets increased to $2,944,139,000 as of September 30, 2023, up from $2,739,178,000 at December 31, 2022, representing a growth of 7.5%[15]. - Net loans reached $2,056,538,000, an increase of 8.4% from $1,897,951,000 at December 31, 2022[15]. - The loan portfolio increased by $165.2 million or 8.6% in the nine months ended September 30, 2023[199]. - The total loan portfolio amounted to $2,079,860,000, an increase from $1,914,674,000 at December 31, 2022, representing an 8.6% growth year-over-year[49]. - The company experienced a net increase in demand, savings, and money market accounts of $79,565,000 for the nine months ended September 30, 2023, compared to $26,681,000 in 2022, showing significant growth in deposits[21]. Interest Income and Expense - Interest income for the nine months ended September 30, 2023, was $93,352,000, a 41.5% increase compared to $65,955,000 for the same period in 2022[16]. - Total interest income for the nine months ended September 30, 2023, was $93.4 million, an increase of $27.4 million or 41.5% compared to $66.0 million for the same period in 2022[203]. - Total interest expense for the nine months ended September 30, 2023, was $44.0 million, an increase of $34.7 million or 374.5% compared to the same period in 2022[203]. - Interest expense on deposits for the nine months ended September 30, 2023, was $42.4 million, an increase from $8.2 million for the same period in 2022[206]. - The net interest margin on a tax-equivalent basis for the nine months ended September 30, 2023, was 2.54%, down from 3.17% for the first nine months of 2022[204]. Deposits and Equity - Total deposits increased to $2,599,937,000, up 9.3% from $2,378,877,000 at December 31, 2022[15]. - Shareholders' equity decreased to $226,665,000 as of September 30, 2023, from $228,923,000 at December 31, 2022[15]. - The total fair value of debt securities in an unrealized loss position was $550,174,000, with total unrealized losses of $144,132,000 as of September 30, 2023[38]. - The total allowance for credit losses as of September 30, 2023, was $23,322,000, with specific reserves on loans evaluated individually amounting to $266,000[82]. Credit Losses and Provisions - The provision for credit losses for the nine months ended September 30, 2023, was $6,210 thousand, indicating proactive management of credit risk[104]. - The allowance for credit losses (ACL) increased by $6,210,000 upon the adoption of ASC 326, recorded as a charge to retained earnings on January 1, 2023[69]. - The allowance for credit losses as a percent of total loans stood at 1.12% as of September 30, 2023, compared to 0.87% at December 31, 2022, and 0.88% at September 30, 2022[84]. - The total past-due loans as of September 30, 2023, amounted to $997,000, with 90+ days past due loans totaling $1,988,000[51]. - Non-accrual loans totaled $2,553,000 as of September 30, 2023, compared to $1,755,000 at December 31, 2022, indicating an increase in non-performing assets[54]. Securities and Investments - The company reported a net unrealized loss on securities available for sale of $9,134,000 for the nine months ended September 30, 2023, compared to a loss of $45,943,000 in 2022, indicating an improvement in the valuation of securities[22]. - The amortized cost of available-for-sale securities was $353,140,000, with an estimated fair value of $284,972,000, reflecting unrealized losses of $68,170,000[29]. - The carrying value of mortgage servicing rights was $2,246,000 as of September 30, 2023, down from $2,493,000 at December 31, 2022, and $2,594,000 at September 30, 2022[135]. - The fair value of U.S. Treasury & Agency securities in the available-for-sale category was $38,252,000, down from an amortized cost of $45,851,000, indicating a loss of $7,599,000[29]. - The company has not established an ACL for available-for-sale securities, as all are deemed investment grade[30]. Operational Expenses - Total non-interest expense for the quarter was $11,006,000, slightly down from $11,371,000 in the same quarter of 2022[16]. - Non-interest expense for the nine months ended September 30, 2023, was $32.6 million, up $378,000 or 1.2% from the same period in 2022[196]. - The company recognized $607,000 in expense for restricted stock grants in the nine months ended September 30, 2023, with an unrecognized expense of $1,069,000 remaining[110]. - The expense related to the 401(k) plan was $826,000 for the nine months ended September 30, 2023, an increase from $752,000 in the same period of 2022[114]. - The company provided supplemental retirement benefits expense of $57,000 for the nine months ended September 30, 2023, down from $231,000 in the same period of 2022[115].

Financial Performance - Net income for the six months ended June 30, 2023, was $15,365,000, down 22.56% from $19,702,000 in the same period of 2022[16]. - Basic earnings per common share decreased to $1.40 for the six months ended June 30, 2023, compared to $1.80 for the same period in 2022[16]. - The company reported a comprehensive income of $16,443,000 for the six months ended June 30, 2023, compared to a loss of $11,215,000 in the same period of 2022[16]. - Net income for the six months ended June 30, 2023, was $15,365,000, a decrease of 22.5% compared to $19,702,000 for the same period in 2022[21]. - For the quarter ended June 30, 2023, net income was $7,394,000, with a basic and diluted EPS of $0.67, down from a net income of $9,997,000 and EPS of $0.91 in the prior year[117]. - Net income for the six months ended June 30, 2023 was $15.4 million, down 22.0% from $19.7 million in the same period in 2022[195]. - Earnings per common share on a fully diluted basis were $1.39 for the six months ended June 30, 2023, a decrease of 22.3% from $1.79 in 2022[195]. Asset and Deposit Growth - Total assets increased to $2,874,815,000 as of June 30, 2023, up from $2,739,178,000 at December 31, 2022, representing a growth of 4.94%[15]. - Total deposits rose to $2,499,862,000, reflecting an increase of 5.08% compared to $2,378,877,000 at December 31, 2022[15]. - The loan portfolio increased by $146.3 million or 7.6% in the six months ended June 30, 2023, with commercial loans increasing by $94.2 million[202]. - Total shareholders' equity as of June 30, 2023, was $232,003,000, an increase from $228,923,000 at the end of 2022[19]. - Cash and cash equivalents at the end of the period on June 30, 2023, were $25,077,000, up from $23,453,000 at the end of June 2022[21]. - Certificates of deposit totaled $1,049,629,000 as of June 30, 2023, an increase from $867,671,000 at December 31, 2022[140]. Income and Expense Analysis - Interest income for the six months ended June 30, 2023, was $60,098,000, a significant increase of 43.24% from $41,964,000 in the same period of 2022[16]. - Net interest income for the six months ended June 30, 2023, was $33,400,000, down from $37,318,000 in 2022, reflecting a decrease of approximately 5.1%[190]. - Non-interest income for the six months ended June 30, 2023, was $7.4 million, down 10.5% from $8.3 million in the same period in 2022[198]. - Non-interest expense for the six months ended June 30, 2023, was $21.6 million, an increase of 3.6% from $20.9 million in the same period in 2022[199]. - The expense related to the 401(k) plan increased to $584,000 for the six months ended June 30, 2023, compared to $550,000 for the same period in 2022[118]. - The expense for supplemental retirement benefits decreased to $57,000 in the first half of 2023 from $154,000 in the same period of 2022, with an accrued liability of $2,807,000 as of June 30, 2023[119]. Credit Losses and Allowances - The provision for credit losses totaled $701,000 for the six months ended June 30, 2023, compared to $900,000 in the same period of 2022[16]. - The total allowance for credit losses was $23,465,000 as of June 30, 2023, with specific reserves on loans evaluated individually amounting to $186,000[86]. - The allowance for credit losses as a percent of total loans stood at 1.14% as of June 30, 2023, compared to 0.87% at December 31, 2022, and 0.91% at June 30, 2022[88]. - The allowance for credit losses (ACL) on loans increased by $6,210,000 upon the adoption of the CECL methodology, impacting retained earnings by a net decrease of $6,277,000[171]. - For the six months ended June 30, 2023, the provision for credit losses was $580,000, while charge-offs totaled $122,000 and recoveries amounted to $74,000[109]. Securities and Fair Value - As of June 30, 2023, the total amortized cost of available-for-sale (AFS) securities was $333,773,000, with an estimated fair value of $278,355,000, reflecting unrealized losses of $55,463,000[30]. - The total fair value of debt securities in an unrealized loss position was $550,983,000, with unrealized losses amounting to $110,061,000 as of June 30, 2023[40]. - The carrying value of securities to be held to maturity was $389,987,000, with an estimated fair value of $336,007,000, indicating a fair value decline of about 13.8%[165]. - The fair value of mortgage servicing rights was $3,639,000 as of June 30, 2023, showing stability compared to $3,734,000 at December 31, 2022[161]. - The company recognizes all derivatives at fair value, with changes in fair value recorded in earnings or other comprehensive income depending on the type of hedge[184]. Economic and Market Conditions - The ongoing conflict between Russia and Ukraine has contributed to economic uncertainty, particularly affecting the commercial real estate market and the banking industry[28]. - The company has identified risks related to the failures of several regional banks in the U.S. in 2023, which may have a lingering impact on its operating results[28]. - The overall health of the economy, including unemployment rates and housing prices, significantly impacts the credit quality of various loan segments[80]. - The Company faces economic uncertainties, including inflation moderation and potential risks in the commercial real estate market, which could affect operating results[186].