LOB — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-11-03

• •Net interest income increased by $17.5 million, or 15.2%, to $133.0 million, reflecting a 16.4% increase in loans outstanding year over year while loan yield decreased 29 basis points to 6.92%.

• •Noninterest income of $42.6 million increased $15.8 million, or 58.8%, which includes:

• ◦an increase of $3.8 million in net gains on sales of loans resulting from higher saleable loan production; and

• ◦an $8.6 million gain on warrants related to an exited investment.

• •Provision for credit losses increased by $32.5 million to $54.7 million, reflecting $16.8 million specific to the exited distillery portfolio, $16.3 million attributed to continued loan growth, $13.1 million related to commercial portfolio changes and $8.5 million relates to SBB portfolio changes.

Text removed vs the prior filing · source: 10-Q · 2026-08-04

• •risks relating to the material weaknesses we identified in our internal control over financial reporting;

• The increase in net income was principally due to the following items:

• •Decrease in other noninterest expense of $3.3 million, or 54.0%, principally due to a loss associated with a bioenergy lease in 2025.

• Key factors offsetting the increase in net income are increased levels of provision for credit losses of $2.5 million and salaries and employee benefits of $2.8 million.

• Six months ended June 30, 2026 compared with six months ended June 30, 2025

Text added vs the prior filing · source: 10-Q · 2026-11-03

• Interest Rates12 Months Ending September 30, 202712 Months Ending September 30, 2028As of September 30, 2026

• Rates are increased instantaneously at the beginning of the projection. Under this instantaneous parallel interest rate shock, with a static balance sheet NII simulation, the Company is asset sensitive in the initial year, as the Company’s large variable-rate loan portfolio reprices the full amount …

Text removed vs the prior filing · source: 10-Q · 2026-08-04

• Rates are increased instantaneously at the beginning of the projection. Under this instantaneous parallel interest rate shock, with a static balance sheet NII simulation, the Company is moderately asset sensitive in the initial year, as the Company’s large variable rate loan portfolio reprices the f…

Text added vs the prior filing · source: 10-Q · 2026-11-03

• Other than the implementation of the measures outlined in the remediation plan for the material weakness described below, 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 qua…

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

Text removed vs the prior filing · source: 10-Q · 2026-08-04

• The conclusion that disclosure controls and procedures were not effective was due to the presence of a material weakness in internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) as previously disclosed in Part II, Item 9A of the Company's annu…

• Remediation Plan for Material Weakness in Internal Control Over Financial Reporting

• 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, …

Text added vs the prior filing · source: 10-Q · 2026-11-03

• James S. Mahan III, our Chairman and Chief Executive Officer, entered into a Rule 10b5-1 trading arrangement on August 25, 2026. That arrangement was terminated on August 28, 2026, after a clerical error was identified. Mr. Mahan entered into a new prearranged stock trading plan on August 28, 2026. …