LOB — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-05-05

• •risks relating to the deployment and use of artificial intelligence by the Company, its customers, and counterparties;

• •a reduction in or the termination of the Company’s ability to use the technology-based platform that is critical to the success of the Company’s business model, including a failure in or a breach of the Company’s operational or security systems or those of its third-party service providers;

• •the impact of heightened regulatory scrutiny of financial products and services;

• Key factors largely offsetting the increase in net income are increased levels of salaries and employee benefits of $3.8 million and income tax expense of $6.7 million.

• The increase in average interest-bearing liabilities was largely driven by funding for significant loan originations and growth as well as maintenance of the Company's target liquidity profile. As indicated in the rate/volume analysis below, the overall increase discussed above is reflected in incre…

Text removed vs the prior filing · source: 10-Q · 2025-11-17

• •a reduction in or the termination of the Company’s ability to use the technology-based platform that is critical to the success of the Company’s business model or to develop a next-generation banking platform, including a failure in or a breach of the Company’s operational or security systems or th…

• •the impact of the restatement of the Consolidated Statements of Cash Flows and related notes;

• •the impact of heightened regulatory scrutiny of financial products and services, primarily led by the Consumer Financial Protection Bureau and various state agencies;

• •Increased net gains on sales of loans of $4.2 million, or 25.4%, principally the result of higher loan sale volumes in the third quarter of 2025;

• Key factors largely offsetting the increase in net income are increased levels of salaries and employee benefits of $8.3 million and income tax expense of $5.3 million.

Text added vs the prior filing · source: 10-Q · 2026-05-05

• The table below sets forth an approximation of the Company’s NII sensitivity exposure for the 12-month periods ending March 31, 2027 and 2028, and the Company’s EVE sensitivity at March 31, 2026 under instantaneous parallel interest rate shocks assuming a static balance sheet. The simulation uses pr…

Text removed vs the prior filing · source: 10-Q · 2025-11-17

• Simulation analysis is only an estimate of interest rate risk exposure at a particular point in time. The Company regularly models various forecasted rate projections with non-parallel shifts that are reflective of potential current rate environment outcomes. Under these scenarios, the Company’s int…

• The table below sets forth an approximation of the Company’s NII sensitivity exposure for the 12-month periods ending September 30, 2026 and 2027, and the Company’s EVE sensitivity at September 30, 2025 under instantaneous parallel interest rate shocks assuming a static balance sheet. The simulation…

• Interest Rates12 Months Ending September 30, 202612 Months Ending September 30, 2027As of September 30, 2025

Text added vs the prior filing · source: 10-Q · 2026-05-05

• As previously reported in the 2025 Form 10-K, management concluded that a material weakness in the Company’s internal control over financial reporting exists with respect to effective control activities related to accounting for and classification of loan participation activity within the Consolidat…

• The ineffective controls over the accounting for and presentation of loan participation activity impacted (1) the SOI classification of deferred loan costs being classified as non-interest expense instead of as an offset to gains on sale of loans, which resulted in misstatements between non-interest…

• Management concluded that this material weakness was primarily due to (1) insufficient oversight of the control environment as it relates to inadequate training of employees relative to internal controls over financial reporting over the review of loan participation activity within the SOI and SCF, …

• The Company is currently working to remediate the material weakness described above, including assessing the need for additional remediation steps and implementing additional measures to remediate the underlying causes that gave rise to the material weakness. The Company is committed to maintaining …

• Specifically, we are in the process of strengthening our internal control over loan participation activity as follows:

Text removed vs the prior filing · source: 10-Q · 2025-11-17

• In response to the material weaknesses, the Company's remediation status is outlined below:

• The Company has implemented changes to its internal control over financial reporting to enhance the control environment and strengthen communication protocols in connection with the loan review process. The Company's remediation efforts have focused on enhanced internal control trainings for individ…

• The Company is implementing enhancements in preparation and review controls to ensure underlying participation loan information used is complete and accurate, is representative of business activities and is aligned with disclosure requirements. In addition, the Company will provide training specific…

• As of the date of this filing, the Company's remediation efforts are ongoing and the material weaknesses have not yet been fully remediated. The material weaknesses will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, t…

• Other than the implementation of the measures outlined in the remediation plan for the material weaknesses described above, there were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the q…

Text added vs the prior filing · source: 10-Q · 2026-05-05

• William L. Williams, III, who serves as the Vice Chairman of our Board of Directors, entered into a prearranged stock trading plan on March 12, 2026. Mr. Williams’s plan provides for the sale of up to 50,000 shares of his holdings of the Company’s voting common stock, no par value per share, in amou…

• Non-Rule 10b5-1 Trading Arrangements. During the quarter ended March 31, 2026, none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted, modified, or terminated a non-Rule 10b5-1 trading arrangement as such terms are defined in Item 408 of Regulation S-K.

Text removed vs the prior filing · source: 10-Q · 2025-11-17

• Non-Rule 10b5-1 Trading Arrangements. During the quarter ended September 30, 2025, none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted, modified, or terminated a non-Rule 10b5-1 trading arrangement as such terms are defined in Item 408 of Regulation S-K.