Financial Performance - The company reported net income of $1.2 million for Q2 2025, a decrease of 42.5% from $2.2 million in Q1 2025 and a decrease of 50.9% from $2.5 million in Q2 2024 [1][11] - Diluted earnings per share were $0.24 for Q2 2025, down from $0.42 in Q1 2025 and $0.50 in Q2 2024 [1] - Adjusted operating earnings for Q2 2025 were $2.2 million, or $0.43 per diluted share, compared to $2.5 million, or $0.50 per share, for Q2 2024 [1] Balance Sheet and Asset Quality - Total assets decreased by $48.0 million, or 3.31%, to $1.4 billion as of June 30, 2025, from December 31, 2024 [6][11] - Net loans held for investment decreased by $4.4 million, or 0.4%, to $994.3 million [6][11] - Total deposits decreased by $46.2 million, or 3.7%, to $1.2 billion [7][11] - Non-performing assets totaled $3.3 million, a decrease of 19.7% from $4.1 million in Q1 2025 [9][11] Capital Management - The company's total stockholders' equity increased by $4.2 million, or 3.7%, to $118.1 million as of June 30, 2025 [8][19] - The company declared a dividend of $0.14 per share for Q2 2025, maintaining a payout ratio of 58.3% of earnings per share [18] Net Interest Income and Margin - Net interest income for Q2 2025 was $12.2 million, an increase of 1.4% from Q1 2025 and 0.5% from Q2 2024 [13][11] - Net interest margin (NIM) was 3.70% for Q2 2025, up from 3.63% in Q1 2025 and 3.62% in Q2 2024 [14][11] Merger Agreement - The company entered into a merger agreement with TowneBank, which has been approved by shareholders and is pending regulatory approvals [2][3] - The merger is expected to provide a stronger platform for growth and enhanced value for shareholders, customers, and employees [4]