# HOME BANCORP, INC. (HBCP) Informational only - not investment advice. CIK: 0001436425 SIC: 6036 Savings Institutions, Not Federally Chartered SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6036 Savings Institutions, Not Federally Chartered](/industry/6036/) Latest 10-K filed: 2026-03-06 SEC page: https://www.sec.gov/edgar/browse/?CIK=1436425 Filing source: https://www.sec.gov/Archives/edgar/data/1436425/000162828026015669/hbcp-20251231.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 193772000 | USD | 2025 | 2026-03-06 | | Net income | 46062000 | USD | 2025 | 2026-03-06 | | Assets | 3492626000 | USD | 2025 | 2026-03-06 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001436425.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 67,684,000 | 74,398,000 | 102,312,000 | 102,208,000 | 104,129,000 | 106,902,000 | 125,930,000 | 163,663,000 | 184,767,000 | 193,772,000 | | Net income | 16,008,000 | 16,824,000 | 31,590,000 | 27,932,000 | 24,765,000 | 48,621,000 | 34,072,000 | 40,240,000 | 36,427,000 | 46,062,000 | | Diluted EPS | 2.25 | 2.28 | 3.40 | 3.05 | 2.85 | 5.77 | 4.16 | 4.99 | 4.55 | 5.87 | | Operating cash flow | 20,488,000 | 24,752,000 | 47,128,000 | 43,938,000 | 49,030,000 | 55,715,000 | 51,199,000 | 41,356,000 | 48,731,000 | 54,508,000 | | Capital expenditures | 4,112,000 | 1,915,000 | 5,010,000 | 3,840,000 | 2,147,000 | 2,472,000 | 2,706,000 | 2,022,000 | 4,057,000 | 10,166,000 | | Dividends paid | 2,988,000 | 4,070,000 | 6,706,000 | 7,898,000 | 7,903,000 | 7,867,000 | 7,777,000 | 8,222,000 | 8,189,000 | 8,988,000 | | Share buybacks | 357,000 | 70,000 | 1,194,000 | 15,445,000 | 14,013,000 | 8,900,000 | 11,333,000 | 5,259,000 | 4,774,000 | 14,355,000 | | Assets | 1,556,732,033 | 2,228,121,000 | 2,153,658,000 | 2,200,465,000 | 2,591,850,000 | 2,938,244,000 | 3,228,280,000 | 3,320,122,000 | 3,443,668,000 | 3,492,626,000 | | Liabilities | 1,376,889,009 | 1,950,250,000 | 1,849,618,000 | 1,884,136,000 | 2,270,008,000 | 2,586,341,000 | 2,898,326,000 | 2,952,678,000 | 3,047,580,000 | 3,057,532,000 | | Stockholders' equity | 179,843,000 | 277,871,000 | 304,040,000 | 316,329,000 | 321,842,000 | 351,903,000 | 329,954,000 | 367,444,000 | 396,088,000 | 435,094,000 | | Free cash flow | 16,376,000 | 22,837,000 | 42,118,000 | 40,098,000 | 46,883,000 | 53,243,000 | 48,493,000 | 39,334,000 | 44,674,000 | 44,342,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | 23.65% | 22.61% | 30.88% | 27.33% | 23.78% | 45.48% | 27.06% | 24.59% | 19.72% | 23.77% | | Return on equity | 8.90% | 6.05% | 10.39% | 8.83% | 7.69% | 13.82% | 10.33% | 10.95% | 9.20% | 10.59% | | Return on assets | 1.03% | 0.76% | 1.47% | 1.27% | 0.96% | 1.65% | 1.06% | 1.21% | 1.06% | 1.32% | | Liabilities / equity | 7.66 | 7.02 | 6.08 | 5.96 | 7.05 | 7.35 | 8.78 | 8.04 | 7.69 | 7.03 | ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001436425.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q2 | 2022-06-30 | | | 1.03 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | 1.28 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 1.39 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 40,071,000 | 9,781,000 | 1.21 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 42,078,000 | 9,754,000 | 1.22 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 43,399,000 | 9,385,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 44,126,000 | 9,199,000 | 1.14 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 45,458,000 | 8,118,000 | 1.02 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 47,379,000 | 9,437,000 | 1.18 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 47,804,000 | 9,673,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 47,201,000 | 10,964,000 | 1.37 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 48,629,000 | 11,330,000 | 1.45 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 49,222,000 | 12,357,000 | 1.59 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 48,720,000 | 11,411,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 47,740,000 | 11,360,000 | 1.45 | reported discrete quarter | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance - [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States - [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States - [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States - [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States - [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States - [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized - [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized - [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks - [GDP](/indicator/GDP/): Gross Domestic Product - [GPDI](/indicator/GPDI/): Gross Private Domestic Investment - [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment - [PCEC](/indicator/PCEC/): Personal Consumption Expenditures - [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services - [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt - [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product - [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit - [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts - [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures - [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing - [USCONS](/indicator/USCONS/): All Employees, Construction - [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade - [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities - [USGOVT](/indicator/USGOVT/): All Employees, Government - [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private - [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods - [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft - [BUSINV](/indicator/BUSINV/): Total Business Inventories - [EXPGS](/indicator/EXPGS/): Exports of Goods and Services - [IMPGS](/indicator/IMPGS/): Imports of Goods and Services - [IR](/indicator/IR/): Import Price Index (End Use): All Commodities - [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1436425/000162828026031198/hbcp-20260331.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-05-06 Report date: 2026-03-31 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The purpose of this discussion and analysis is to focus on significant changes in the financial condition of the Company and the Bank from December 31, 2025 through March 31, 2026 and on its results of operations for the three months ended March 31, 2026 and 2025. This discussion and analysis is intended to highlight and supplement information presented elsewhere in this quarterly report on Form 10-Q, particularly the consolidated financial statements and related notes appearing in Item 1. Forward-Looking Statements To the extent that statements in this Form 10-Q relate to future plans, objectives, financial results or performance of the Company or Bank, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which are based on management’s current information, estimates and assumptions and the current economic environment, are generally identified by the use of words such as “plan”, “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions, or by future or conditional terms such as “will”, “would”, “should”, “could”, “may”, “likely”, “probably”, or “possibly”. The Company’s or the Bank’s actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties. Certain risks, uncertainties and other factors, including those set forth under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2025 and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, may cause actual results to differ materially from the results discussed in the forward-looking statements appearing in this discussion and analysis and may include factors such as, but not limited to, our lending activities, our use of municipal deposits as a source of funds, credit quality and risk, industry and technological changes, cyber incidents or other failures, disruptions or security breaches, interest rates, commercial and residential real estate values, economic and market conditions in the markets we operate in or generally in the United States, funds availability, accounting estimates and risk management processes, legislative and regulatory changes, the fair values of our acquired assets and our investment securities portfolio, business strategy execution, key personnel, competition, mortgage markets, fraud, environmental liability and severe weather, natural disasters, acts of war or terrorism or other external events. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made. EXECUTIVE OVERVIEW The Company reported net income for the first quarter of 2026 of $11.4 million, or $1.45 diluted EPS, up $396,000, or 3.6%, compared to the first quarter of 2025. Net income for the first quarter of 2025 totaled $11.0 million, or $1.37 diluted EPS. Key components of the Company’s performance during the three months ended March 31, 2026 include: •Assets increased $62.0 million, or 1.8%, from December 31, 2025 to $3.6 billion at March 31, 2026. •Total loans were $2.7 billion at March 31, 2026, down $15.9 million, or 0.6%, from December 31, 2025. •During the three months ended March 31, 2026, the Company provisioned $922,000 to the allowance for loan losses, primarily due an increase in individually impaired loan reserves, partially offset by loan reduction. During the three months ended March 31, 2025, the Company provisioned $394,000 to the allowance for loan losses. •The ALL totaled $33.7 million, or 1.23% of total loans, at March 31, 2026 compared to $33.1 million, or 1.21% of total loans, at December 31, 2025. The ACL, which is comprised of the allowance for loan losses plus the allowance for unfunded lending commitments, totaled $35.3 million, or 1.29% of total loans, at March 31, 2026 compared to $34.8 million, or 1.27% of total loans, at December 31, 2025. •Nonperforming assets increased $3.8 million, or 10.5%, from $36.1 million, or 1.03% of total assets, at December 31, 2025 to $39.9 million, or 1.12% of total assets, at March 31, 2026. The increase in nonperforming assets during the first quarter of 2026 was primarily attributable to several loan relationships, including one relationship with an outstanding balance of $1.4 million, which were placed on nonaccrual status during the quarter, partially offset by loan paydowns and payoffs. •Total deposits amounted to $3.0 billion at March 31, 2026, an increase of $54.0 million, or 1.8%, from December 31, 2025. 31 •The net interest margin was 4.16% for the three months ended March 31, 2026, up 25 bps from the three months ended March 31, 2025. The increase was primarily due to a decline in the average cost of interest-bearing liabilities. •The average rate paid on total interest-bearing deposits was 2.29% for the first quarter of 2026, which was down 22 bps from the first quarter of 2025. •Total interest expense for the first quarter of 2026 was $13.3 million, down $2.2 million, or 14.2%, compared to the first quarter of 2025, primarily due to a decrease in FHLB borrowing interest. •Noninterest income for the first quarter of 2026 was $3.7 million, down $271,000, or 6.8%, compared to the first quarter of 2025, primarily due to decreases in other income (down $266,000) and gain on sale of loans (down $147,000), which were partially offset by an increase in service fees and charges (up $128,000). •Noninterest expense for the first quarter of 2026 was $22.9 million, up $1.4 million, or 6.3%, compared to the first quarter of 2025, primarily due to increases in compensation and benefits (up $1.1 million) and other expenses (up $786,000), which were partially offset by decreases in foreclosed assets (down $173,000), franchise and shares tax (down $136,000), and occupancy expense (down $132,000). FINANCIAL CONDITION Loans, Allowance for Credit Losses and Asset Quality Loans Total loans at March 31, 2026 were $2.7 billion, down $15.9 million, or 0.6%, from December 31, 2025. The following table summarizes the composition of the Company’s loan portfolio as of the dates indicated. (dollars in thousands) March 31, 2026 December 31, 2025 Increase/(Decrease) Real estate loans: One-to four-family first mortgage $ 476,079  $ 493,446  $ (17,367) (3.5) % Home equity loans and lines 91,550  92,574  (1,024) (1.1) Commercial real estate 1,182,501  1,190,388  (7,887) (0.7) Construction and land 340,057  329,227  10,830  3.3  Multi-family residential 179,982  177,825  2,157  1.2  Total real estate loans 2,270,169  2,283,460  (13,291) (0.6) % Other loans: Commercial and industrial 428,075  430,517  (2,442) (0.6) Consumer 29,902  30,046  (144) (0.5) Total other loans 457,977  460,563  (2,586) (0.6) Total loans $ 2,728,146  $ 2,744,023  $ (15,877) (0.6) % Allowance for Credit Losses The ACL which equals the sum of the ALL and the ACL on unfunded lending commitments, is established through provisions for credit losses. Management recalculates the ACL at least quarterly to reassess the estimate of credit losses for the total portfolio at the relevant reporting date. Under ASC Topic 326, the ACL is measured on a pool basis when similar risk characteristics exist. For each pool of loans, management also evaluates and applies qualitative adjustments to the calculated ACL based on several factors, including, but not limited to, changes in current and expected future economic conditions, changes in industry experience and industry loan concentrations, changes in the volume and severity of NPAs, changes in lending policies and personnel and changes in the competitive and regulatory environment of the banking industry. Loans that do not share similar risk characteristics are individually evaluated and are excluded from the pooled loan analysis. The ACL policy described above is supplemented by periodic reviews and validations performed by independent loan reviewers. The results of the reviews are reported to the Audit Committee of the Board of Directors. The establishment of the ACL is significantly affected by management judgment. There is likelihood that different amounts would be reported under different conditions or assumptions. Federal regulatory agencies, as an integral part of their examination process, periodically 32 review our ACL. Such agencies may require management to make additional provisions for estimated losses based upon judgments different from those of management. We continue to monitor and modify our ACL as conditions warrant. No assurance can be given that our level of ACL will cover all of the losses on our loans or that future adjustments to the ACL will not be necessary if economic and other conditions differ substantially from the assumptions used by management to determine the current level of the ACL. At March 31, 2026, the ALL totaled $33.7 million, or 1.23% of total loans, up $538,000 from $33.1 million, or 1.21% of total loans, at December 31, 2025. During the three months ended March 31, 2026, the Company provisioned $922,000 to the allowance loan losses primarily due to an increase in individually impaired loan reserves, partially offset by loan reduction. Net loan charge-offs totaled $384,000 for the three months ended March 31, 2026. Asset Quality One of management’s key objectives has been, and continues to be, maintaining a high level of asset quality. In addition to maintaining credit standards for new loan originations, we proactively monitor loans and collection and workout processes of delinquent or problem loans. When a borrower fails to make a scheduled payment, we attempt to cure the deficiency by making personal contact with the borrower. Initial contacts are generally made within 10 days after the date payment is due. In most cases, deficiencies are promptly resolved. If the delinquency continues, late charges are assessed and additional efforts are made to collect the deficiency. All loans which are designated as “special mention,” classified or which are delinquent 90 days or more are reported to the Board of Directors of the Bank monthly. For loans where the collection of principal or interest payments is doubtful, the accrual of interest income ceases. It is our policy, with certain limited exceptions, to discontinue accruing interest and reverse any interest accrued on any loan which is 90 days or more past due. On occasion, this action may be taken earlier if the financial condition of the borrower raises significant concern with regard to their ability to service the debt in accordance with the terms of the loan agreement. Interest income is not accrued on these loans until the borrower’s financial condition and payment record demonstrate an ability to service the debt. Under our allowance policy, credit losses are measured on a pool basis when similar risk characteristics exist. Loans that do not share similar risk characteristics are individually evaluated for credit losses and are excluded from the pooled loan analysis. At least quarterly, management evaluates the loan portfolio to determine which loans should be individually evaluated for credit losses. Management's evaluation involves an analysis of larger (i.e., credit relationships with aggregate balances of $500,000 or greater) commercial real estate loans, multi-family residential loans, construction and land loans and commercial and industrial loans. Third party property valuations are obtained at the time of origination for real estate secured loans. When a determination is made that a loan has deteriorated to the point of becoming a problem loan, updated valuations may be ordered to determin [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following is an analysis and discussion of the financial condition and results of operations of Home Bancorp, Inc. (the “Company”), and its wholly owned subsidiary, Home Bank, N.A. (the “Bank”). This discussion and analysis should be read in conjunction with our Consolidated Financial Statements and related notes included herein in Part II, Item 8, “Financial Statements and Supplementary Data” and the description of our business included herein in Part 1, Item 1 “Business”. EXECUTIVE OVERVIEW The Company reported net income for 2025 of $46.1 million, or $5.87 diluted EPS compared to $36.4 million, or $4.55 diluted EPS, reported for 2024. Key components of the Company's performance in 2025 are summarized below. •Assets increased $49.0 million, or 1.4%, from December 31, 2024 to $3.5 billion at December 31, 2025. •Loans increased by $25.8 million, or 1.0%, from December 31, 2024 to $2.7 billion at December 31, 2025. •During the year ended December 31, 2025, the Company provisioned $1.1 million of the allowance for loan losses compared to a $2.4 million provisioned for the year ended December 31, 2024. •The allowance for loan losses ("ALL") totaled $33.1 million, or 1.21% of total loans, at December 31, 2025. The allowance for credit losses ("ACL"), which is comprised of the allowance for loan losses plus the allowance for unfunded lending commitments, totaled $34.8 million, or 1.27% of total loans, at December 31, 2025. •Total deposits increased $192.1 million, or 6.9%, from December 31, 2024 to $3.0 billion at December 31, 2025, primarily due to increases in certificate of deposits, money market accounts, and demand deposit accounts. •The Company repurchased 321,590 shares of common stock at an average price of $44.30 per share during 2025. •The net interest margin was 4.03% for the year ended December 31, 2025, up 32 bps compared to 2024, primarily due to a decline in the average cost of interest-bearing liabilities and an increase in the average yield earned on interest-earning assets during 2025. •The average rate paid on total interest-bearing deposits during 2025 was 2.53%, down 13 bps compared to 2024. •Noninterest income increased $836,000, or 5.7%, in 2025 compared to 2024, primarily due to an increase in gain on sale of loans, service fees and charges, and bank card fees, which were partially offset by a decrease in gain on sale of assets. •Noninterest expense increased $2.3 million, or 2.6%, in 2025 compared to 2024, primarily due to an increase in compensation and benefits and other expenses, which were partially offset by a reversal in the provision for credit losses on unfunded commitments. 19 SELECTED FINANCIAL DATA Set forth below is selected summary historical financial and other data of the Company. When you read this summary historical financial data, it is important that you also read the historical financial statements and related notes contained in Item 8 of this Form 10-K. Taxable equivalent (“TE”) ratios have been calculated using a marginal tax rate of 21%. As of December 31, (dollars in thousands) 2025 2024 2023 2022 2021 Selected Financial Condition Data: Total assets $ 3,492,626  $ 3,443,668  $ 3,320,122  $ 3,228,280  $ 2,938,244  Cash and cash equivalents 141,605  98,548  75,831  87,401  601,443  Interest-bearing deposits in banks —  —  99  349  349  Investment securities: Available for sale 391,448  402,792  433,926  486,518  327,632  Held to maturity 1,065  1,065  1,065  1,075  2,102  Loans receivable, net 2,710,881  2,685,269  2,550,101  2,401,451  1,819,004  Intangible assets 83,957  85,044  86,372  87,973  61,949  Deposits 2,972,806  2,780,696  2,670,624  2,633,181  2,535,849  Other borrowings —  5,539  5,539  5,539  5,539  Subordinated debt, net of issuance cost 54,675  54,459  54,241  54,013  —  Federal Home Loan Bank advances 3,024  175,546  192,713  176,213  26,046  Shareholders’ equity 435,094  396,088  367,444  329,954  351,903  For the Years Ended December 31, (dollars in thousands, except per share data) 2025 2024 2023 2022 2021 Selected Operating Data: Interest income $ 193,772  $ 184,767  $ 163,663  $ 125,930  $ 106,902  Interest expense 60,518  64,505  42,971  7,915  5,913  Net interest income 133,254  120,262  120,692  118,015  100,989  Provision (reversal) for loan losses 1,134  2,415  2,341  7,489  (10,161) Net interest income after provision for loan losses 132,120  117,847  118,351  110,526  111,150  Noninterest income 15,461  14,625  14,636  13,885  16,271  Noninterest expense 89,563  87,289  82,841  81,909  66,982  Income before income taxes 58,018  45,183  50,146  42,502  60,439  Income taxes 11,956  8,756  9,906  8,430  11,818  Net income $ 46,062  $ 36,427  $ 40,240  $ 34,072  $ 48,621  Earnings per share - basic $ 5.93  $ 4.58  $ 5.02  $ 4.19  $ 5.80  Earnings per share - diluted $ 5.87  $ 4.55  $ 4.99  $ 4.16  $ 5.77  Cash dividends per share $ 1.14  $ 1.01  $ 1.00  $ 0.93  $ 0.91  As of or For the Years Ended December 31, 2025 2024 2023 2022 2021 Selected Operating Ratios: (1) Average yield on interest-earning assets(TE) 5.88  % 5.74  % 5.28  % 4.19  % 4.11  % Average rate on interest-bearing liabilities 2.68  2.90  2.08  0.41  0.35  Average interest rate spread(TE)(2) 3.20  2.84  3.20  3.78  3.76  Net interest margin(TE)(3) 4.03  3.71  3.89  3.92  3.88  Average interest-earning assets to average interest-bearing liabilities 144.80  143.29  148.73  154.87  152.48  20 As of or For the Years Ended December 31, 2025 2024 2023 2022 2021 Noninterest expense to average assets 2.58  2.58  2.54  2.58  2.42  Efficiency ratio(4) 60.22  64.71  61.21  62.10  57.12  Return on average assets 1.33  1.08  1.23  1.07  1.76  Return on average common equity 11.14  9.56  11.59  10.16  14.38  Return on average tangible common equity (Non-GAAP)(7) 14.25  12.68  15.95  13.93  17.98  Common stock dividend payout ratio 19.42  22.20  20.04  22.36  15.77  Average equity to average assets 11.91  11.26  10.64  10.55  12.22  Book value per common share $ 55.56  $ 48.95  $ 45.04  $ 39.82  $ 41.27  Tangible book value per common share (Non-GAAP)(8) 44.84  38.44  34.45  29.20  34.00  Asset Quality Ratios: (5)  Non-performing loans as a percent of total loans receivable 1.25  % 0.50  % 0.34  % 0.43  % 0.72  % Non-performing assets as a percent of total assets 1.03  0.45  0.31  0.34  0.49  Allowance for loan losses as a percent of non-performing loans as of end of period 97.0  242.1  357.8  278.6  158.9  Allowance for loan losses as a percent of net loans as of end of period 1.21  1.21  1.22  1.15  1.15  Capital Ratios: (5) (6) Tier 1 risk-based capital ratio 14.09  % 13.28  % 12.98  % 12.43  % 14.66  % Leverage capital ratio 11.84  11.38  10.98  10.43  9.77  Total risk-based capital ratio 15.29  14.51  14.23  13.63  15.85  (1)With the exception of end-of-period ratios, all ratios are based on average daily balances during the respective periods. (2)Average interest rate spread represents the difference between the average yield on interest-earning assets and the average rate paid on interest-bearing liabilities. (3)Net interest margin represents net interest income as a percentage of average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%. (4)The efficiency ratio represents noninterest expense as a percentage of total revenues. Total revenues is the sum of net interest income and noninterest income. (5)Asset quality and capital ratios are end-of-period ratios. (6)Capital ratios are for Home Bank only. (7)Tangible calculation eliminates goodwill, core deposit intangible and the corresponding amortization expense, net of tax. (8)Tangible calculation eliminates goodwill and core deposit intangible. This contains financial information prepared other than in accordance with GAAP. The Company uses these non-GAAP financial measures in its analysis of the Company’s performance. Management believes that the non-GAAP information provides useful data in understanding the Company’s operations and in comparing the Company’s results to peers. This non-GAAP information should be considered in addition to the Company’s financial information prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. A reconciliation of GAAP to non-GAAP disclosures is included in the table below. 21 Non-GAAP Reconciliation As of or For the Years Ended December 31, (dollars in thousands, except per share data) 2025 2024 2023 2022 2021 Book value per common share $ 55.56  $ 48.95  $ 45.04  $ 39.82  $ 41.27  Less: Intangibles 10.72  10.51  10.59  10.62  7.27  Tangible book value per common share 44.84  38.44  34.45  29.20  34.00  Net Income 46,062  36,427  40,240  34,072  48,621  Add: CDI amortization, net of tax 859  1,049  1,264  1,266  919  Non-GAAP tangible income 46,921  37,476  41,504  35,338  49,540  Return on common equity 11.14  % 9.56  % 11.59  % 10.16  % 14.38  % Add: Intangibles 3.11  3.12  4.36  3.77  3.60  Return on average tangible common equity 14.25  % 12.68  % 15.95  % 13.93  % 17.98  % CRITICAL ACCOUNTING ESTIMATES SEC guidance requires disclosure of “critical accounting estimates.” The SEC defines “critical accounting estimates” as those estimates made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of the registrant. We follow financial accounting and reporting policies that are in accordance with accounting principles generally accepted in the United States. Our accounting policies are discussed in detail in Note 2 - Summary of Significant Accounting Policies in the accompanying notes to the Consolidated Financial Statements included in Item 8. Not all significant accounting policies require management to make difficult, subjective or complex judgments. However, management believes the policies noted below meet the SEC’s definition of critical accounting policies. Allowance for Credit Losses Management considers the policies related to the allowance for credit losses as the most critical to the financial statement presentation. The total allowance for credit losses includes activity related to allowances calculated in accordance with Accounting Standards Codification ("ASC") 326, Financial Instruments — Credit Losses. The allowance for credit losses is established through a provision for credit losses charged to current earnings. The amount maintained in the allowance reflects management’s continuing evaluation of the credit losses expected to be recognized over the life of the loans in our portfolio. The allowance for loan losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. For purposes of determining the allowance for credit losses, the loan portfolio is segregated by product types in order to recognize differing risk profiles among categories. Loans that do not share risk characteristics are evaluated on an individual basis and are not included in the collective evaluation. Management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Adjustments to historical loss information are made to incorporate our reasonable and supportable forecast of future losses at the portfolio segment level, as well as any necessary qualitative adjustments, including, but not limited to, changes in current and expected future economic conditions, changes in industry experience and industry loan concentrations, changes in the volume and severity of nonperforming assets, changes in lending policies and personnel and changes in the competitive and regulatory environment of the banking industry. Loans that do not share similar risk characteristics are individually evaluated and are excluded from the pooled loan analysis. Allowance for credit losses on unfunded loan commitments represents expected credit losses over the contractual period for which the Company is exposed to credit risk from a contractual obligation to extend credit. No allowance is recorded if the Company has the unconditional right to cancel the obligation. The allowance is reported as a component of other liabilities within the Consolidated Statements of Financial Condition. Adjustments to the allowance for unfunded commitments are reported in the Consolidated Statements of Income as a component of Noninterest Expense. 22 Business Combinations Assets and liabilities acquired in business combinations are recorded at their fair value. In accordance with ASC Topic 805, Business Combinations, the Company generally records provisional amounts at the time of acquisition based on the information available to the Company. The determination of fair value as of the acquisition date requires management to consider various factors that involve judgment and estimation, including the application of discount rates, prepayment rates, attrition rates, future estimates of interest rates, as well as many other assumptions. These assumptions can have a material impact on the estimated fair value, and as a result, the goodwill recorded in a business combination. The provisional estimates of fair values may be adjusted for a period of up to one year ("measurement period") from the date of acquisition if new information is obtained. Subsequently, adjustments recorded during the measurement period are recognized in the current reporting period. ACQUISITION ACTIVITY The Company has completed six acquisitions since 2010. The following table is a summary of the Company’s acquisition activity as recorded. SUMMARY OF ACQUISITION ACTIVITY (dollars in thousands) Acquisition Acquisition Date Total Assets Total Loans Goodwill Core Deposit Intangible Total Deposits Statewide Bank 3/12/2010 $ 188,026  $ 110,415  $ 560  $ 1,429  $ 206,925  GS Financial Corporation 7/15/2011 256,677  182,440  296  859  193,518  Britton & Koontz Capital Corporation 2/14/2014 298,930  161,581  43  3,030  216,600  Louisiana Bancorp, Inc. 9/15/2015 352,897  281,583  8,454  1,586  208,670  St. Martin Bancshares, Inc. 12/6/2017 592,852  439,872  49,135  6,766  533,497  Friendswood Capital Corporation 3/26/2022 413,919  317,492  23,029  4,597  367,991  Total Acquisitions $ 2,103,301  $ 1,493,383  $ 81,517  $ 18,267  $ 1,727,201  FINANCIAL CONDITION Loans, Allowance for Credit Losses and Asset Quality Loans The types of loans originated by the Company are subject to federal and state laws and regulations. Interest rates charged on loans are affected principally by the demand for such loans and the supply of money available for lending purposes and the rates offered by our competitors. These factors are, in turn, affected by general and economic conditions, the monetary policy of the federal government, including the FRB, legislative tax policies and governmental budgetary matters. The Company’s lending activities are subject to underwriting standards and loan origination procedures established by our Board of Directors and management. Loan originations are obtained through a variety of sources, primarily existing customers as well as new customers obtained from referrals and local advertising and promotional efforts. one- to four-family residential mortgage loan applications and consumer loan applications are taken at any of the Bank’s branch offices. Applications for other loans typically are taken personally by one of our loan officers, although they may be received by a branch office initially and then referred to a loan officer. All loan applications are processed and underwritten centrally at the Bank’s main office. Total loans in portfolio (which does not include mortgage loans held for sale) increased $25.8 million, or 1.0%, from December 31, 2024 to $2.7 billion at December 31, 2025. 23 The following table summarizes the composition of the Company’s loan portfolio as of the dates indicated. December 31, (dollars in thousands) 2025 2024 2023 2022 2021 Real estate loans: One- to four-family first mortgage $ 493,446  $ 501,225  $ 433,401  $ 389,616  $ 350,843  Home equity loans and lines 92,574  79,097  68,977  61,863  60,312  Commercial real estate 1,190,388  1,158,781  1,192,691  1,152,537  801,624  Construction and land 329,227  352,263  340,724  313,175  259,652  Multi-family residential 177,825  178,568  107,263  100,588  90,518  Total real estate loans 2,283,460  2,269,934  2,143,056  2,017,779  1,562,949  Other loans: Commercial and industrial 430,517  418,627  405,659  377,894  244,123  Consumer 30,046  29,624  32,923  35,077  33,021  Total other loans 460,563  448,251  438,582  412,971  277,144  Total loans $ 2,744,023  $ 2,718,185  $ 2,581,638  $ 2,430,750  $ 1,840,093  The following table reflects contractual loan maturities as of December 31, 2025, unadjusted for scheduled principal reductions, prepayments, or repricing opportunities. The table also reflects the portion of loans due after one year that have fixed or variable interest rates. Amounts as of December 31, 2025 which mature in: (dollars in thousands) One year or less After one but within five years After five but within fifteen years After fifteen years Total One- to four-family first mortgage $ 46,197  $ 120,593  $ 65,731  $ 260,925  $ 493,446  Home equity loans and lines 4,251  11,852  5,775  70,696  92,574  Commercial real estate 194,280  542,983  305,996  147,129  1,190,388  Construction and land 259,605  54,438  12,593  2,591  329,227  Multi-family residential 33,825  120,651  11,559  11,790  177,825  Commercial and industrial 186,011  159,624  82,181  2,701  430,517  Consumer 5,128  13,703  10,313  902  30,046  Total $ 729,297  $ 1,023,844  $ 494,148  $ 496,734  $ 2,744,023  Loans with fixed interest rates: One- to four-family first mortgage $ 94,623  $ 30,020  $ 111,340  $ 235,983  Home equity loans and lines 3,402  4,510  140  8,052  Commercial real estate 426,512  199,304  6,548  632,364  Construction and land 18,157  4,145  —  22,302  Multi-family residential 103,799  9,414  553  113,766  Commercial and industrial 75,418  61,412  2,476  139,306  Consumer 10,013  9,719  802  20,534  Total $ 731,924  $ 318,524  $ 121,859  $ 1,172,307  24 Amounts as of December 31, 2025 which mature in: (dollars in thousands) One year or less After one but within five years After five but within fifteen years After fifteen years Total Loans with variable interest rates: One- to four-family first mortgage $ 25,970  $ 35,711  $ 149,585  $ 211,266  Home equity loans and lines 8,450  1,265  70,556  80,271  Commercial real estate 116,471  106,692  140,581  363,744  Construction and land 36,281  8,448  2,591  47,320  Multi-family residential 16,852  2,145  11,237  30,234  Commercial and industrial 84,206  20,769  225  105,200  Consumer 3,690  594  100  4,384  Total $ 291,920  $ 175,624  $ 374,875  $ 842,419  Allowance for Credit Losses Management recalculates the ACL at least quarterly to reassess the estimate of credit losses for the total portfolio at the relevant reporting date. For more information on the adoption of ASC 326 and the Company's relevant accounting policies, refer to Note 2 of the Consolidated Financial Statements in Item 8. The following table presents the activity in the allowance for credit losses for the years indicated. For the Years Ended December 31, (dollars in thousands) 2025 2024 2023 2022 2021 Allowance for loan losses: Beginning balance $ 32,916  $ 31,537  $ 29,299  $ 21,089  $ 32,963  Provision for acquired PCD loans —  —  —  1,415  —  Provision for loan losses 1,134  2,415  2,341  7,489  (10,161) Loans charged off: One- to four-family first mortgage (14) —  (12) (80) (176) Home equity loans and lines —  (22) —  —  (6) Commercial real estate (21) —  (29) (270) (1,337) Construction and land (101) (123) —  —  —  Multi-family residential —  —  —  —  —  Commercial and industrial (865) (875) (255) (792) (599) Consumer (362) (265) (175) (256) (187) Recoveries on charged off loans 455  249  368  704  592  Ending balance - allowance for loan losses $ 33,142  $ 32,916  $ 31,537  $ 29,299  $ 21,089  Allowance for unfunded lending commitments: Beginning balance $ 2,700  $ 2,594  $ 2,093  $ 1,815  $ 1,425  (Reversal) provision for losses on unfunded commitments (1,075) 106  501  278  390  Ending balance - allowance for unfunded commitments 1,625  2,700  2,594  2,093  1,815  Total allowance for credit losses $ 34,767  $ 35,616  $ 34,131  $ 31,392  $ 22,904  25 At December 31, 2025, the ALL totaled $33.1 million, or 1.21% of total loans, and the ACL, which includes the reserve for unfunded lending commitments, totaled $34.8 million, or 1.27% of total loans. For the year ended December 31, 2025, the Company provisioned $1.1 million of the allowance for loan losses compared to a provision of $2.4 million for the year ended December 31, 2024. The increase in the provision for loan losses during 2025 and 2024 primarily reflected our loan growth during the year. The following table presents the allocation of the allowance for loan losses as of December 31 for the years indicated. December 31, 2025 2024 2023 2022 2021 (dollars in thousands) Amount % Loans Amount % Loans Amount % Loans Amount % Loans Amount % Loans One-to four-family first mortgage $ 5,062  18.0 % $ 4,430  18.4 % $ 3,255  16.8 % $ 2,883  16.0 % $ 1,944  19.1 % Home equity loans and lines 1,335  3.4  801  2.9  688  2.7  624  2.6  508  3.2  Commercial real estate 14,503  43.4  13,521  42.6  14,805  46.2  13,814  47.4  10,454  43.6  Construction and land 2,813  12.0  5,484  13.0  5,415  13.2  4,680  12.9  3,572  14.1  Multi-family residential 1,499  6.4  1,090  6.6  474  4.1  572  4.1  457  4.9  Commercial and industrial 7,138  15.7  6,861  15.4  6,166  15.7  6,024  15.6  3,520  13.3  Consumer 792  1.1  729  1.1  734  1.3  702  1.4  634  1.8  Total $ 33,142  100.0 % $ 32,916  100.0 % $ 31,537  100.0 % $ 29,299  100.0 % $ 21,089  100.0 % The following table shows credit ratios at and for the periods indicated and each component of the ratio's calculation: For the Years Ended December 31, 2025 2024 2023 2022 2021 Allowance for loan losses as a percentage of total loans outstanding 1.21% 1.21% 1.22% 1.21% 1.15% Allowance for loan losses $ 33,142 $ 32,916 $ 31,537 $ 29,299 $ 21,089 Total loans outstanding $ 2,744,023 $ 2,718,185 $ 2,581,638 $ 2,430,750 $ 1,840,093 Nonaccrual loans as a percentage of total loans outstanding 1.24% 0.50% 0.34% 0.43% 0.72% Total nonaccrual loans $ 34,111 $ 13,582 $ 8,814 $ 10,513 $ 13,269 Total loans outstanding $ 2,744,023 $ 2,718,185 $ 2,581,638 $ 2,430,750 $ 1,840,093 Allowance for loan losses as a percentage of nonaccrual loans 97.16% 242.35% 357.81% 278.69% 158.93% Allowance for loan losses $ 33,142 $ 32,916 $ 31,537 $ 29,299 $ 21,089 Total nonaccrual loans $ 34,111 $ 13,582 $ 8,814 $ 10,513 $ 13,269 26 For the Years Ended December 31, 2025 2024 2023 2022 2021 Net charge-offs during period to average loans outstanding: One-to four family residential loans —% —% 0.01% (0.01)% (0.04)% Net charge-offs $ (3) $ 4 $ 31 $ (41) $ (131) Average loans outstanding $ 500,162 $ 458,984 $ 414,780 $ 367,570 $ 372,207 Net charge-offs during period to average loans outstanding: Home equity loans and lines 0.04% 0.02% 0.01% 0.02% 0.03% Net charge-offs $ 36 $ 14 $ 6 $ 14 $ 19 Average loans outstanding $ 83,034 $ 73,955 $ 66,428 $ 60,023 $ 62,957 Net charge-offs during period to average loans outstanding: Commercial real estate —  % —  % 0.01  % (0.03) % (0.17) % Net charge-offs $ (21) $ —  $ 71  $ (270) $ (1,337) Average loans outstanding $ 1,186,210  $ 1,203,114  $ 1,170,475  $ 1,024,610  $ 769,950  Net charge-offs during period to average loans outstanding: Construction and land (0.03) % (0.04) % —  % —  % 0.03  % Net charge-offs $ (101) $ (123) $ —  $ —  $ 63  Average loans outstanding $ 342,867  $ 336,020  $ 328,218  $ 297,218  $ 241,725  Net charge-offs during period to average loans outstanding: Multi-family residential —  % 0.01  % —  % —  % —  % Net charge-offs $ —  $ 12  $ —  $ —  $ —  Average loans outstanding $ 182,366  $ 134,664  $ 104,166  $ 97,753  $ 87,101  Net charge-offs during period to average loans outstanding: Commercial and industrial (0.12) % (0.17) % (0.02) % (0.10) % (0.08) % Net charge-offs $ (510) $ (712) $ (75) $ (283) $ (286) Average loans outstanding $ 417,218  $ 414,362  $ 392,397  $ 294,459  $ 356,180  Net charge-offs during period to average loans outstanding: Consumer (1.02) % (0.73) % (0.40) % (0.34) % (0.12) % Net charge-offs $ (309) $ (231) $ (136) $ (114) $ (41) Average loans outstanding $ 30,406  $ 31,570  $ 33,837  $ 33,334  $ 35,647  27 Asset Quality One of management’s key objectives has been, and continues to be, maintaining a high level of asset quality. In addition to maintaining credit standards for new loan originations, we proactively monitor loans and collection and workout processes of delinquent or problem loans. When a borrower fails to make a scheduled payment, we attempt to cure the deficiency by making personal contact with the borrower. Initial contacts are generally made within 10 days after the date payment is due. In most cases, deficiencies are promptly resolved. If the delinquency continues, late charges are assessed and additional efforts are made to collect the deficiency. All loans which are designated as “special mention,” classified or which are delinquent 90 days or more are reported to the Board of Directors of the Bank monthly. For loans where the collection of principal or interest payments is doubtful, the accrual of interest income ceases. It is our policy, with certain limited exceptions, to discontinue accruing interest and reverse any interest accrued on any loan which is 90 days or more past due. On occasion, this action may be taken earlier if the financial condition of the borrower raises significant concern with regard to their ability to service the debt in accordance with the terms of the loan agreement. Interest income is not accrued on these loans until the borrower’s financial condition and payment record demonstrate an ability to service the debt. Loans that do not share similar risk characteristics are individually evaluated and are excluded from the pooled loan analysis. Large groups of smaller balance, homogeneous loans are collectively evaluated for impairment. Loans collectively evaluated for impairment include smaller balance commercial loans, residential real estate loans and consumer loans. These loans are evaluated as a group because they have similar characteristics and performance experience. Larger (i.e., loans with balances of $500,000 or greater) commercial real estate loans, multi-family residential loans, construction and land loans and commercial and industrial loans are individually evaluated for impairment. Third party property valuations are obtained at the time of origination for real estate secured loans. When a determination is made that a loan has deteriorated to the point of becoming a problem loan, updated valuations may be ordered to help determine if there is impairment, which may lead to a recommendation for partial charge off or appropriate allowance allocation. Property valuations are ordered through, and are reviewed by, an appraisal officer at the Bank. The Bank typically orders an “as is” valuation for collateral property if a loan is in a criticized loan classification. The Board of Directors is provided with monthly reports on individually evaluated loans. At December 31, 2025 and 2024, loans identified as individually evaluated for expected losses were $6.2 million and $5.0 million, respectively. Due to the adoption of ASC 326, total loans identified as impaired and individually evaluated at December 31, 2025 included $1.2 million of acquired loans, of which none were acquired with deteriorated credit quality. For more information on the adoption of ASC 326, refer to Note 2 of the Consolidated Financial Statements in Item 8. The following tables provide a summary of loans individually evaluated for expected losses as of the dates indicated. December 31, 2025 (dollars in thousands) Recorded Investment Allowance for Loan Losses Allowance to Total Loans Loans Individually Evaluated One- to four-family first mortgage $ 2,304  $ 411  17.84  % Home equity loans and lines —  —  —  Commercial real estate 2,162  362  16.74  Construction and land 520  —  —  Multi-family residential 603  136  22.55  Commercial and industrial 617  356  57.70  Consumer —  —  —  Total $ 6,206  $ 1,265  20.38  % 28 December 31, 2024 (dollars in thousands) Recorded Investment Allowance for Loan Losses Allowance to Total Loans Loans Individually Evaluated One- to four-family first mortgage $ —  $ —  —  % Home equity loans and lines —  —  —  Commercial real estate 4,718  200  4.24  Construction and land —  —  —  Multi-family residential —  —  —  Commercial and industrial 254  248  97.64  Consumer —  —  —  Total $ 4,972  $ 448  9.01  % Federal regulations and our policies require that we utilize an internal asset classification system as a means of reporting problem and potential problem assets. We have incorporated an internal asset classification system, substantially consistent with Federal banking regulations, as a part of our credit monitoring system. Federal banking regulations set forth a classification scheme for problem and potential problem assets as “substandard,” “doubtful” or “loss” assets. An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” assets include those characterized by the “distinct possibility” that the insured institution will sustain “some loss” if the deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions and values, “highly questionable and improbable.” Assets classified as “loss” are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. In addition to classified assets, assets which do not currently expose the Bank to sufficient risk to be classified may be categorized as "special mention." Special mention assets have an existing weakness that could cause future impairment. At December 31, 2025 and 2024, we had a total of $61.1 million and $35.8 million, respectively, in loans classified as substandard. We had no assets classified as doubtful or loss at either date. For additional information, see Note 5 to the Consolidated Financial Statements in Item 8. A bank’s determination as to the classification of its assets and the amount of its valuation allowances is subject to review by Federal bank regulators which can order the establishment of additional general or specific loss allowances. The Federal banking agencies have adopted an interagency policy statement on the allowance for loan and lease losses. The policy statement provides guidance for financial institutions on both the responsibilities of management for the assessment and establishment of allowances and guidance for banking agency examiners to use in determining the adequacy of general valuation guidelines. Generally, the policy statement recommends that institutions have effective systems and controls to identify, monitor and address asset quality problems; that management analyze all significant factors that affect the collectability of the portfolio in a reasonable manner; and that management establish acceptable allowance evaluation processes that meet the objectives set forth in the policy statement. Due to the adoption of ASC 326 on January 1, 2020, management maintains, based on current and forecasted information, an ACL that reflects a current estimate of expected credit losses for the estimated life of the loan portfolio at reporting periods subsequent to the adoption date. For all reporting periods, actual losses are uncertain and dependent upon future events and, as such, further additions to the level of ACL may become necessary. The following table sets forth the composition of the Company’s total nonperforming assets and troubled debt restructurings as of the dates indicated. December 31, (dollars in thousands) 2025 2024 2023 2022 2021 Nonaccrual loans: Real estate loans: One- to four-family first mortgage $ 6,531  $ 7,039  $ 1,600  $ 2,300  $ 3,575  Home equity loans and lines 531  279  208  34  38  Commercial real estate 9,011  3,304  5,203  6,945  8,431  29 December 31, (dollars in thousands) 2025 2024 2023 2022 2021 Construction and land 15,367  1,622  1,181  315  258  Multi-family residential 1,281  —  —  —  —  Other loans: Commercial and industrial 1,344  1,311  331  378  763  Consumer 46  27  291  541  204  Total nonaccrual loans 34,111  13,582  8,814  10,513  13,269  Accruing loans 90 days or more past due 65  16  —  2  6  Total nonperforming loans  34,176  13,598  8,814  10,515  13,275  Foreclosed assets and ORE 1,929  2,010  1,575  461  1,189  Total nonperforming assets 36,105  15,608  10,389  10,976  14,464  Performing troubled debt restructurings(1) —  —  —  6,205  4,963  Total nonperforming assets and troubled debt restructurings $ 36,105  $ 15,608  $ 10,389  $ 17,181  $ 19,427  Nonperforming loans to total loans 1.25  % 0.50  % 0.34  % 0.43  % 0.72  % Nonperforming loans to total assets 0.98  % 0.39  % 0.27  % 0.33  % 0.45  % Nonaccrual loans to total loans 1.24% 0.50% 0.34% 0.43% 0.72% Nonperforming assets to total assets 1.03  % 0.45  % 0.31  % 0.34  % 0.49  % Total loans outstanding $ 2,744,023  $ 2,718,185  $ 2,581,638  $ 2,430,750  $ 1,840,093  Total assets outstanding $ 3,492,626  $ 3,443,668  $ 3,320,122  $ 3,228,280  $ 2,938,244  (1)With the adoption of ASU 2022-02, effective January 1, 2023, TDR accounting has been eliminated. Total nonperforming assets increased by $20.5 million, or 131.3%, to $36.1 million at December 31, 2025, compared to $15.6 million at December 31, 2024. The increase in NPAs during 2025 was primarily due to eight loan relationships totaling $21.5 million, which were put on nonaccrual during the year, partially offset by payoffs and paydowns. The ratio of nonperforming assets to total assets was 1.03% at December 31, 2025, compared to 0.45% at December 31, 2024. As of December 31, 2025, total nonperforming loans were up $20.6 million, or 151.3%, from December 31, 2024. Foreclosed assets and Other real estate ("ORE") were down $81,000, or 4.0%, from December 31, 2024. Investment Securities The Company invests in securities pursuant to our Investment Policy, which has been approved by our Board of Directors. The Investment Policy is designed primarily to manage the interest rate sensitivity of our assets and liabilities, to generate a favorable return without incurring undue interest rate or credit risk and to provide and maintain liquidity. The Asset-Liability Committee (“ALCO”), comprised of the Chief Executive Officer, Chief Financial Officer, Chief Operations Officer, Chief Risk Officer, Chief Banking Officer, Chief Administrative Officer, Director of Financial Management and Director of Retail, monitors investment activity and ensures that investments are consistent with the Investment Policy. The Board of Directors of the Company reviews investment activity monthly. 30 The investment securities portfolio decreased by an aggregate of $11.3 million, or 2.8%, during 2025. Securities available for sale made up 99.7% of the investment securities portfolio as of December 31, 2025. The following table sets forth the amortized cost and market value of our investment securities portfolio as of the dates indicated. December 31, 2025 2024 2023 (dollars in thousands) Amortized Cost Market Value Amortized Cost Market Value Amortized Cost Market Value Available for sale: U.S. agency mortgage-backed $ 284,749  $ 267,650  $ 291,351  $ 261,873  $ 314,569  $ 283,853  Collateralized mortgage obligations 61,185  60,327  73,931  71,389  82,764  79,262  Municipal bonds 53,018  48,147  53,458  45,829  53,891  46,674  U.S. government agency 11,441  11,003  18,079  17,128  19,151  18,049  Corporate bonds 4,491  4,321  6,985  6,573  6,982  6,088  Total available for sale 414,884  391,448  443,804  402,792  477,357  433,926  Held to maturity: Municipal bonds 1,065  1,066  1,065  1,065  1,065  1,066  Total held to maturity 1,065  1,066  1,065  1,065  1,065  1,066  Total investment securities $ 415,949  $ 392,514  $ 444,869  $ 403,857  $ 478,422  $ 434,992  The following table sets forth the fixed versus adjustable rate profile of the investment securities portfolio as of the dates indicated. All amounts are shown at amortized cost. December 31, (dollars in thousands) 2025 2024 2023 Fixed rate: Available for sale $ 396,026  $ 420,577  $ 451,517  Held to maturity 1,065  1,065  1,065  Total fixed rate 397,091  421,642  452,582  Adjustable rate: Available for sale 18,858  23,227  25,840  Total adjustable rate 18,858  23,227  25,840  Total investment securities $ 415,949  $ 444,869  $ 478,422  The following table sets forth the amount of investment securities which mature during each of the periods indicated and the weighted average yields for each range of maturities as of December 31, 2025. No tax-exempt yields have been adjusted to a tax-equivalent basis. All amounts are shown at amortized cost. Amounts as of December 31, 2025 which mature in: (dollars in thousands) One Year or Less After One Year Through Five Years After Five Through Ten Years Over Ten Years Total Available for sale: U.S. agency mortgage-backed $ 23,388  $ 79,809  $ 67,641  $ 113,911  $ 284,749  Collateralized mortgage obligations 14,989  32,412  417  13,367  61,185  Municipal bonds —  11,051  38,859  3,108  53,018  U.S. government agency —  2,046  9,395  —  11,441  Corporate bonds —  991  3,500  —  4,491  Total available for sale 38,377  126,309  119,812  130,386  414,884  Weighted average yield 2.60  % 2.68  % 2.46  % 2.37  % 2.51  % 31 Amounts as of December 31, 2025 which mature in: (dollars in thousands) One Year or Less After One Year Through Five Years After Five Through Ten Years Over Ten Years Total Held to maturity: Municipal bonds 1,065  —  —  —  1,065  Total held to maturity 1,065  —  —  —  1,065  Weighted average yield 4.00  % —  % —  % —  % 4.00  % Total investment securities $ 39,442  $ 126,309  $ 119,812  $ 130,386  $ 415,949  Weighted average yield 2.64  % 2.68  % 2.46  % 2.37  % 2.52  % The following table summarizes activity in the Company’s investment securities portfolio during 2025. (dollars in thousands) Available for Sale Held to Maturity Balance, December 31, 2024 $ 402,792  $ 1,065  Purchases 26,039  —  Principal maturities, prepayments and calls (54,775) —  Amortization of premiums and accretion of discounts (184) —  Increase in market value 17,576  —  Balance, December 31, 2025 $ 391,448  $ 1,065  As of December 31, 2025, the Company had a net unrealized loss on its available for sale investment securities portfolio of $23.4 million, compared to a net unrealized loss of $41.0 million as of December 31, 2024. Management has determined that the declines in the fair value of these securities were not attributable to credit losses. The Company has the intent and ability to hold the securities until maturity or until anticipated recovery. Funding Sources General Deposits, loan repayments and prepayments, proceeds from investment securities sales, calls, maturities and paydowns, cash flows generated from operations and FHLB advances are our primary, ongoing sources of funds for use in lending, investing and for other general purposes. Deposits The Company offers a variety of deposit accounts with a range of interest rates and terms. Our deposits consist of checking, both interest-bearing and noninterest-bearing, money market, savings and certificate of deposit accounts. The flow of deposits is influenced significantly by general economic conditions, changes in market interest rates and competition. Our deposits are obtained predominantly from the areas where our branch offices are located. We have historically relied primarily on a high level of customer service and long-standing relationships with customers to attract and retain deposits; however, market interest rates and rates offered by competitors significantly affect our ability to attract and retain deposits. Total deposits were $3.0 billion as of December 31, 2025, up $192.1 million, or 6.9%, compared to December 31, 2024. Certificates of deposits totaled $805.6 million as of December 31, 2025, up $71.7 million, or 9.8%, compared to December 31, 2024. The following table sets forth the composition of the Company’s deposits as of the dates indicated. 32 December 31, Increase/(Decrease) (dollars in thousands) 2025 2024 Amount Percent Demand deposit $ 792,951  $ 733,073  $ 59,878  8.2  % Savings 201,265  210,977  (9,712) (4.6) Money market 518,740  457,483  61,257  13.4  NOW 654,227  645,246  8,981  1.4  Certificates of deposit 805,623  733,917  71,706  9.8  Total deposits $ 2,972,806  $ 2,780,696  $ 192,110  6.9  % The following table shows the daily average balances of deposits by type and weighted-average rate paid for the periods indicated. For the Years Ended December 31, (dollars in thousands) 2025 2024 2023 Average Balance Interest Expense Average Rate Paid Average Balance Interest Expense Average Rate Paid Average Balance Interest Expense Average Rate Paid Noninterest-bearing demand deposits $ 773,650  $ 747,640  $ 821,592  Interest-bearing deposits Interest-bearing demand deposits 632,396  8,442  1.33  % 625,005  8,008  1.28  % 638,846  5,464  0.86  % Savings 205,431  1,114  0.54  219,880  1,209  0.55  265,850  1,079  0.41  Money market accounts 478,372  13,019  2.72  432,198  11,983  2.77  389,959  6,881  1.76  Certificates of deposit 793,858  30,802  3.88  704,981  31,580  4.48  465,710  14,080  3.02  Total interest-bearing deposits 2,110,057  53,377  2.53 % 1,982,064  52,780  2.66 % 1,760,365  27,504  1.56 % Total deposits $ 2,883,707  $ 2,729,704  $ 2,581,957  The total amount of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $885.4 million at December 31, 2025 and $813.6 million at December 31, 2024. Certificates of deposit in the amount of $250,000 and over increased $28.5 million, or 12.5%, from $228.4 million at December 31, 2024 to $256.9 million at December 31, 2025. The following table details the remaining maturity of large-denomination certificates of deposit of $250,000 and over as of the dates indicated. December 31, (dollars in thousands) 2025 2024 2023 3 months or less $ 137,794  $ 134,885  $ 46,372  3 - 6 months 72,789  45,424  33,421  6 - 12 months 43,662  38,623  89,262  12 - 36 months 2,236  8,538  20,366  More than 36 months 381  922  1,312  Total certificates of deposit greater than $250,000 $ 256,862  $ 228,392  $ 190,733  Subordinated Debt On June 30, 2022, the Company issued $55.0 million in aggregate principal amount of its 5.75% Fixed-to-Floating Rate Subordinated Notes due 2032 (the "Notes"). The Notes were issued at a price equal to 100% of the aggregate principal amount. The Notes have a stated maturity date of June 30, 2032 and bear interest at a fixed rate of 5.75% per year from and including the issue date to but excluding June 30, 2027. From June 30, 2027, the Notes bear interest at a floating rate equal to the then current three-month term secured overnight financing rate (“SOFR”), plus 282 basis points. The Notes may be redeemed by the Company, in whole or in part, on or after June 30, 2027. The Notes are intended to qualify as Tier 2 capital for regulatory purposes. The carrying value of subordinated debt was $54.7 million and $54.5 million at December 31, 2025 and December 31, 2024, respectively. The subordinated debt was recorded net of issuance costs, which is being amortized using the straight-line method over five years. 33 Other Borrowings On March 12, 2023, the Federal Reserve Board created the Bank Term Funding Program ("BTFP"), which offers loans to banks with a term up to one year with no prepayment penalty. The loans are secured by pledging qualifying securities and are valued at par for collateral purposes. The Bank participated in the BTFP during 2024 and paid off the loan before December 31, 2024. The average balance of other borrowings, which included the BTFP loan in 2024 was $4.3 million during 2025, down $124.4 million from 2024. Federal Home Loan Bank Advances Advances from the FHLB may be obtained by the Company upon the security of the common stock it owns in the FHLB and certain real estate loans and investment securities, provided certain standards related to creditworthiness have been met. Such advances are made pursuant to several credit programs, each of which has its own interest rate and range of maturities. Advances from the FHLB may be either short-term, maturities of one year or less, or long-term, maturities in excess of one year. The Company had no short-term FHLB advances as of December 31, 2025, down $137.2 million, or 100.0%, compared to $137.2 million as of December 31, 2024. Long-term FHLB advances totaled $3.0 million as of December 31, 2025, down $35.3 million, or 92.1%, compared to $38.3 million as of December 31, 2024. Average FHLB advances were $83.7 million during 2025, up $26.7 million, or 46.9%, from 2024. Shareholders’ Equity Shareholders’ equity provides a source of permanent funding, allows for future growth and provides the Company with a cushion to withstand unforeseen adverse developments. At December 31, 2025, shareholders’ equity totaled $435.1 million, up $39.0 million, or 9.8%, compared to $396.1 million at December 31, 2024. The increase was primarily due to the Company’s earnings for the year ended December 31, 2025 and a reduction in accumulated other comprehensive loss, partially offset by shareholders' dividends and repurchases of shares of the Company's common stock. RESULTS OF OPERATIONS Net income in 2025 was $46.1 million, up $9.6 million, or 26.5%, compared to 2024. Diluted earnings per share ("EPS") for 2025 was $5.87, up $1.32, or 29.0%, from 2024. For the year ended December 31, 2025, the Company provisioned $1.1 million to the allowance for loan losses compared to a provision of $2.4 million for the year ended December 31, 2024. Net income in 2024 was $36.4 million, down $3.8 million, or 9.5%, compared to 2023. Diluted EPS for 2024 was $4.55, down $0.44, or 8.8% from 2023. For the year ended December 31, 2024, the Company provisioned $2.4 million to the allowance for loan losses compared to a provision of $2.3 million for the year ended December 31, 2023. Net Interest Income Net interest income is the difference between the interest income earned on interest-earning assets, such as loans and investment securities, and the interest expense paid on interest-bearing liabilities, such as deposits and borrowings. Our net interest income is largely determined by our net interest spread, which is the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities, and the relative amounts of interest-earning assets and interest-bearing liabilities. The Company’s net interest spread was 3.20%, 2.84% and 3.20% for the years ended December 31, 2025, 2024, and 2023, respectively. Net interest income totaled $133.3 million in 2025, up $13.0 million, or 10.8%, compared to $120.3 million in 2024. The increase was primarily due to a decline in cost of interest-bearing liabilities and an increase in average yield earned on interest-earning assets. Total interest expense decreased $4.0 million, or 6.2%, in 2025 compared to 2024 primarily related to the absence of interest expense associated with the BTFP loan, which paid off in 2024, partially offset by an increase in FHLB borrowing interest during 2025. The average cost of total interest-bearing deposits decreased by 13 basis points to 2.53% in 2025. In 2024, net interest income totaled $120.3 million, down $430,000, or 0.4%, compared to $120.7 million in 2023. The decrease in net interest income for 2024 compared to 2023 was primarily due to the cost and increase in average interest-bearing liabilities outpacing the yield and increase in average interest-earning assets. Total interest expense increased $21.5 million, or 50.1%, in 2024 compared to 2023 primarily related to higher deposit costs during 2024 compared to 2023. The average cost of total interest-bearing deposits in 2024 totaled 2.66%, up 110 basis points from 2023. 34 The Company’s net interest margin, which is net interest income as a percentage of average interest-earning assets, was 4.03%, 3.71%, and 3.89% during the years ended December 31, 2025, 2024, and 2023, respectively. The following table sets forth, for the periods indicated, information regarding (i) the total dollar amount of interest income to the Company from interest-earning assets and the resultant average yields; (ii) the total dollar amount of interest expense on interest-bearing liabilities and the resultant average rate; (iii) net interest income; (iv) net interest spread; and (v) net interest margin. Information is based on average monthly balances during the indicated periods. Taxable equivalent (“TE”) yields have been calculated using a marginal tax rate of 21%. For the Years Ended December 31, (dollars in thousands) 2025 2024 2023 Average Balance Interest Average Yield/ Rate Average Balance Interest Average Yield/ Rate Average Balance Interest Average Yield/ Rate Interest-earning assets: Loans receivable(1) $ 2,742,263  $ 179,474  6.47 % $ 2,652,669  $ 170,255  6.33 % $ 2,510,301  $ 149,338  5.88 % Investment securities(TE) Taxable 405,677  10,006  2.47  443,523  10,618  2.39  485,201  11,537  2.38  Tax-exempt 16,073  288  2.27  16,262  290  2.26  19,322  367  2.41  Total investment securities 421,750  10,294  2.46  459,785  10,908  2.39  504,523  11,904  2.38  Other interest-earning assets 97,720  4,004  4.10  71,498  3,604  5.04  54,323  2,421  4.46  Total interest-earning assets(TE) 3,261,733  193,772  5.88  3,183,952  184,767  5.74  3,069,147  163,663  5.28  Noninterest-earning assets 211,709  202,769  193,673  Total assets $ 3,473,442  $ 3,386,721  $ 3,262,820  Interest-bearing liabilities: Deposits: Savings, checking and money market $ 1,316,199  $ 22,575  1.72 % $ 1,277,083  $ 21,200  1.66 % $ 1,294,655  $ 13,424  1.04 % Certificates of deposit 793,858  30,802  3.88  704,981  31,580  4.48  465,710  14,080  3.02  Total interest-bearing deposits 2,110,057  53,377  2.53  1,982,064  52,780  2.66  1,760,365  27,504  1.56  Other borrowings 4,348  168  3.86  128,699  6,094  4.74  5,567  214  3.84  Subordinated debt 54,567  3,379  6.19  54,348  3,381  6.22  54,128  3,390  6.26  FHLB advances 83,681  3,594  4.24  56,956  2,250  3.92  243,513  11,863  4.81  Total interest-bearing liabilities 2,252,653  60,518  2.68  2,222,067  64,505  2.90  2,063,573  42,971  2.08  Noninterest-bearing liabilities 807,132  783,458  851,942  Total liabilities 3,059,785  3,005,525  2,915,515  Shareholders’ equity 413,657  381,196  347,305  Total liabilities and shareholders’ equity $ 3,473,442  $ 3,386,721  $ 3,262,820  Net interest-earning assets $ 1,009,080  $ 961,885  $ 1,005,574  Net interest income; net interest spread(TE) $ 133,254  3.20 % $ 120,262  2.84 % $ 120,692  3.20 % Net interest margin(TE) 4.03 % 3.71 % 3.89 % (1)Nonperforming loans are included in the respective average loan balances, net of deferred fees, discounts and loans in process. Acquired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the respective loans. 35 The following table displays the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities. The table distinguishes between (i) changes attributable to volume (changes in average volume between periods times prior year rate), (ii) changes attributable to rate (changes in average rate between periods times prior year volume) and (iii) total increase (decrease). 2025 Compared to 2024 Change Attributable To 2024 Compared to 2023 Change Attributable To (dollars in thousands) Rate Volume Total Increase (Decrease) Rate Volume Total Increase (Decrease) Interest income: Loans receivable $ 4,378  $ 4,841  $ 9,219  $ 10,851  $ 10,066  $ 20,917  Investment securities (153) (461) (614) (359) (637) (996) Other interest-earning assets (51) 451  400  535  648  1,183  Total interest income 4,174  4,831  9,005  11,027  10,077  21,104  Interest expense: Savings, checking and money market accounts 537  838  1,375  4,719  3,057  7,776  Certificates of deposit (1,423) 645  (778) 8,693  8,807  17,500  Other borrowings (2,363) (3,563) (5,926) 2,350  3,530  5,880  Subordinated debt (5) 3  (2) (9) —  (9) FHLB advances 429  915  1,344  (3,570) (6,043) (9,613) Total interest expense (2,825) (1,162) (3,987) 12,183  9,351  21,534  Increase (decrease) in net interest income $ 6,999  $ 5,993  $ 12,992  $ (1,156) $ 726  $ (430) Interest income includes interest income earned on earning assets as well as applicable loan fees earned. Interest income that would have been earned on nonaccrual loans had they been on accrual status is not included in the data reported above. Provision for Loan Losses For the year ended December 31, 2025, the Company provisioned $1.1 million to the allowance for loan losses compared to a provision of $2.4 million and $2.3 million for 2024 and 2023, respectively. The provision for loan losses during 2025 reflected our assessment of the change in expected losses due primarily to loan growth during the year. Net charge-offs were $908,000 for 2025, compared to net charge-offs of $1.0 million and $103,000 for 2024 and 2023, respectively. Net loan charge-offs for 2025 were primarily attributable to commercial and industrial, consumer, and construction and land loans. Net loan charge-offs during 2024 were primarily attributable to commercial and industrial, consumer, and construction and land loans. Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations - Financial Condition - Allowance for Credit Losses" provides additional information on the changes in the ALL and ACL. 36 Noninterest Income The following table illustrates the primary components of noninterest income for the years indicated. (dollars in thousands) 2025 2024 2025 vs 2024 Percent Increase (Decrease) 2023 2024 vs 2023 Percent Increase (Decrease) Noninterest income: Service fees and charges $ 5,500  $ 5,118  7.5  % $ 4,992  2.5  % Bank card fees 6,598  6,525  1.1  7,051  (7.5) Gain on sale of loans, net 860  470  83.0  816  (42.4) Income from bank-owned life insurance 1,136  1,100  3.3  1,045  5.3  Loss on sale of securities, net —  —  —  (249) (100.0) Gain (loss) on sale of assets, net 3  33  (90.9) (27) (222.2) Other income 1,364  1,379  (1.1) 1,008  36.8  Total noninterest income $ 15,461  $ 14,625  5.7  % $ 14,636  (0.1) % 2025 compared to 2024 Noninterest income for 2025 totaled $15.5 million, up $836,000, or 5.7%, compared to 2024. Gain on sale of loans for 2025 increased $390,000, or 83.0%, compared to 2024, primarily due to an increase in sales of SBA loans in 2025 compared to 2024. Service fees and charges for 2025 increased $382,000, or 7.5%, compared to 2024, primarily due to an increase in service fees on deposit accounts in 2025 compared to 2024. Bank card fees for 2025 increased $73,000, or 1.1%, compared to 2024, primarily due to an increase in credit card fees in 2025 compared to 2024. 2024 compared to 2023 Noninterest income for 2024 totaled $14.6 million, down $11,000, or 0.1%, compared to 2023. Income from bank card fees for 2024 was down $526,000, or 7.5%, from 2023, primarily due to to decreased transaction activity by our cardholders. Gain on sale of loans for 2024 decreased $346,000, or 42.4%, compared to 2023, primarily due to less sales of SBA loans in 2024 compared to 2023. Other income for 2024 increased $371,000, or 36.8%, compared to 2023 primarily due to derivative fee income and an increase in Small Business Investment Company ("SBIC") income. Noninterest Expense The following table illustrates the primary components of noninterest expense for the years indicated. (dollars in thousands) 2025 2024 2025 vs 2024 Percent Increase (Decrease) 2023 2024 vs 2023 Percent Increase (Decrease) Noninterest expense: Compensation and benefits $ 53,479  $ 51,330  4.2  % $ 48,933  4.9  % Occupancy 10,024  10,131  (1.1) 9,674  4.7  Marketing and advertising 1,965  2,000  (1.8) 2,146  (6.8) Data processing and communication 10,374  10,241  1.3  9,372  9.3  Professional services 1,608  1,922  (16.3) 1,690  13.7  Forms, printing and supplies 802  794  1.0  781  1.7  Franchise and shares tax 1,868  1,863  0.3  1,755  6.2  Regulatory fees 1,908  1,954  (2.4) 2,040  (4.2) Foreclosed assets, net 1,077  341  215.8  (547) 162.3  37 Amortization of acquisition intangible 1,087  1,328  (18.1) 1,601  (17.1) (Reversal) provision for credit losses on unfunded commitments (1,075) 106  (1,114.2) 501  (78.8) Other expenses 6,446  5,279  22.1  4,895  7.8  Total noninterest expense $ 89,563  $ 87,289  2.6  % $ 82,841  5.4  % 2025 compared to 2024 Noninterest expense for 2025 totaled $89.6 million, up $2.3 million, or 2.6%, from 2024. Compensation and benefits expense for 2025 was up $2.1 million, or 4.2%, compared to 2024, primarily due to increased salaries and compensation expense. Other expenses for 2025 were up $1.2 million, or 22.1%, compared to 2024, primarily due to a write-off of an acquired SBA accounts receivable for guarantees in 2025. Foreclosed assets, net for 2025 was up $736,000, or 215.8%, compared to 2024, primarily due to increased write-offs of foreclosed assets and related expenses in 2025. In 2025, the Company recorded a $1.1 million reversal of provision for credit losses on unfunded commitments, compared to a $106,000 provision in 2024, primarily due to lower unfunded commitment levels and lower funding rate estimates based on observed historical funding in 2025. 2024 compared to 2023 Noninterest expense for 2024 totaled $87.3 million, up $4.4 million, or 5.4%, from 2023. Compensation and benefits expense for 2024 was up $2.4 million, or 4.9%, compared to 2023, primarily due to increased salaries and compensation expense. Data processing and communication for 2024 was up $869,000, or 9.3%, compared to 2023, primarily due to increases in cost of maintenance contracts in 2024. Occupancy expense for 2024 was up $457,000, or 4.7%, compared to 2023, primarily due to an additional lease in our Houston market. In 2024, the Company recorded a $341,000 expenses related to foreclosed assets, compared to a $547,000 reversal in 2023, primarily due to a $769,000 recovery of a previous loss on a foreclosed asset. Provision for credit losses on unfunded commitments decreased $395,000, or 78.8%, compared to 2023, primarily due to a decrease in funding commitments. Income Taxes For the years ended December 31, 2025, 2024 and 2023, the Company incurred income tax expense of $12.0 million, $8.8 million and $9.9 million, respectively. The Company’s effective tax rate was 20.6%, 19.4%, and 19.8% for 2025, 2024 and 2023, respectively. The Company's effective tax rate in 2025 increased compared to 2024 due to variances in items that are non-taxable or non-deductible. The Company's effective tax rate in 2024 decreased compared to 2023 due to variances in items that are non-taxable or non-deductible. See Note 15 to the Consolidated Financial Statements in Item 8 for additional information concerning our income taxes. LIQUIDITY AND CAPITAL RESOURCES Our primary sources of funds are from deposits, amortization of loans, loan prepayments and the maturity of loans, investment securities and other investments and other funds provided from operations. While scheduled payments from the amortization of loans and investment securities and maturing investment securities are relatively predictable sources of funds, deposit flows and loan prepayments can be greatly influenced by general interest rates, economic conditions and competition. We also maintain excess funds in short-term, interest-bearing assets that provide additional liquidity. 38 We use our liquidity to fund existing and future loan commitments, to fund maturing certificates of deposit and demand deposit withdrawals, to invest in other interest-earning assets and to meet operating expenses. At December 31, 2025, certificates of deposit maturing within the next 12 months totaled $781.2 million. Based upon historical experience, we anticipate that a significant portion of the maturing certificates of deposit will be redeposited with us. In addition to cash flows from loan and securities payments and prepayments as well as from sales of available for sale securities, we have significant borrowing capacity available to fund liquidity needs. In recent years, we have utilized borrowings as a cost efficient addition to deposits as a source of funds. Our borrowings consist of advances from the FHLB, of which we are a member. Under terms of the collateral agreement with the FHLB, we may pledge residential mortgage loans and mortgage-backed securities as well as our stock in the FHLB as collateral for such advances. For the year ended December 31, 2025, the average balance of our outstanding FHLB advances was $83.7 million. At December 31, 2025, we had $3.0 million in outstanding FHLB advances and $1.3 billion in additional FHLB advances available to us. Liquidity management is both a daily and long-term function of business management. Excess liquidity is generally invested in short-term investments such as overnight deposits. On a longer-term basis, the Company maintains a strategy of investing in various lending and investment security products. The Company uses its sources of funds primarily to meet its ongoing commitments and fund loan commitments. The Company has been able to generate sufficient cash through its deposits, as well as borrowings, and anticipates it will continue to have sufficient funds to meet its liquidity requirements. ASSET/ LIABILITY MANAGEMENT AND MARKET RISK The objective of asset/liability management is to implement strategies for the funding and deployment of the Company’s financial resources that are expected to maximize soundness and profitability over time at acceptable levels of risk. Interest rate sensitivity is the potential impact of changing rate environments on both net interest income and cash flows. The Company measures its interest rate sensitivity over the near term primarily by running net interest income simulations. Our interest rate sensitivity is also monitored by management through the use of models which generate estimates of the change in its net interest income over a range of interest rate scenarios. Based on the Company’s interest rate risk model, the table below sets forth the results of immediate and sustained changes in interest rates as of December 31, 2025. Shift in Interest Rates (in bps) % Change in Projected Net Interest Income +200 7.1 +100 3.6 -100 (4.1) -200 (8.3) The actual impact of changes in interest rates will depend on many factors. These factors include the Company’s ability to achieve expected growth in interest-earning assets and maintain a desired mix of interest-earning assets and interest-bearing liabilities, the actual timing of asset and liability repricing, the magnitude of interest rate changes and corresponding movement in interest rate spreads and the level of success of asset/liability management strategies. Market risk is the risk of loss from adverse changes in market prices and rates. Our market risk arises primarily from the interest rate risk, which is inherent in our lending and deposit taking activities. To that end, management actively monitors and manages interest rate risk exposure. In addition to market risk, our primary risk is credit risk on our loan portfolio. We attempt to manage credit risk through our loan underwriting and oversight policies. The principal objective of our interest rate risk management function is to evaluate the interest rate risk embedded in certain balance sheet accounts, determine the level of risk appropriate given our business strategy, operating environment, capital and liquidity requirements, performance objectives and interest rate environment and manage the risk consistent with approved guidelines. We seek to manage our exposure to risks from changes in interest rates while at the same time trying to improve our net interest spread. We monitor interest rate risk as such risk relates to our operating strategies. ALCO is responsible for reviewing our asset/liability and investment policies and interest rate risk position. ALCO meets at least quarterly. The extent of the movement of interest rates is an uncertainty that could have a negative impact on future earnings. 39 We primarily have utilized the following strategies in our efforts to manage interest rate risk: •we have increased our originations of shorter term loans, particularly commercial real estate and commercial and industrial loans; •we generally sell our conforming long-term (30-year) fixed-rate one- to four--family residential mortgage loans into the secondary market; and •we have invested in securities, consisting primarily of mortgage-backed securities and collateral mortgage obligations, with relatively short average lives, generally three to five years, and we maintain adequate amounts of liquid assets. In addition to the strategies above, on occasion the Company has entered into certain interest rate swap agreements as part of its interest rate risk management strategy. The Company’s objectives in using interest rate derivatives are to manage its exposure to interest rate movements. During 2025 and 2024, such derivatives were used to hedge the variable cost associated with existing variable rate liabilities. Refer to Note 14. Derivatives and Hedging Activities of the Consolidated Financial Statements in Item 8 for more information on the effects of the derivative financial instruments on the consolidated financial statements. To meet the financing needs of its customers, the Company issues financial instruments which represent conditional obligations that are not recognized, wholly or in part, in the statements of financial condition. These financial instruments include commitments to extend credit and standby letters of credit. Such instruments expose the Company to varying degrees of credit and interest rate risk in much the same way as funded loans. The same credit policies are used in these commitments as for on-balance sheet instruments. The Company’s exposure to credit losses from these financial instruments is represented by their contractual amounts. The following table summarizes our outstanding commitments to originate loans and to advance additional amounts pursuant to outstanding letters of credit, lines of credit and the undisbursed portion of construction loans as of December 31 of the years indicated. Contract Amount (dollars in thousands) 2025 2024 Standby letters of credit $ 8,724  $ 6,502  Available portion of lines of credit 498,442  488,930  Undisbursed portion of loans in process 69,223  76,424  Commitments to originate loans 165,251  161,482  Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to be drawn upon, the total commitment amounts generally represent future cash requirements. Unfunded commitments under commercial lines of credit and revolving credit lines are commitments for possible future extensions of credit to existing customers. These lines of credit usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. The following table summarizes our outstanding commitments to originate loans and to advance additional amounts pursuant to outstanding letters of credit, lines of credit and the undisbursed portion of construction loans as of December 31, 2025. (dollars in thousands) Less Than One Year One to Three Years Three to Five Years Over Five Years Total Unused commercial lines of credit $ 164,393  $ 157,607  $ 13,672  $ 4,654  $ 340,326  Unused personal lines of credit 55,526  19,446  6,270  76,874  158,116  Undisbursed portion of loans in process 40,705  28,012  506  —  69,223  Standby letters of credit 7,909  815  —  —  8,724  Commitments to originate loans 153,496  11,755  —  —  165,251  Total $ 422,029  $ 217,635  $ 20,448  $ 81,528  $ 741,640  40 The Company has utilized leasing arrangements to support the ongoing activities of the Company. The required payments under such commitments and other contractual cash commitments as of December 31, 2025 are shown in the following table. (dollars in thousands) 2026 2027 2028 2029 2030 Thereafter Total Operating leases $ 1,303  $ 1,249  $ 1,159  $ 1,150  $ 1,126  $ 9,034  $ 15,021  Certificates of deposit 781,236  15,006  4,046  2,732  1,580  1,023  805,623  Subordinated debt —  —  —  —  —  55,000  55,000  Long-term FHLB advances 3,024  —  —  —  —  —  3,024  Total $ 785,563  $ 16,255  $ 5,205  $ 3,882  $ 2,706  $ 65,057  $ 878,668