| Reclassification |
Reclassification Certain amounts in the prior period consolidated financial statements and the notes to the prior period consolidated financial statements have been reclassified to conform to the 2026 presentation. These reclassifications had no effect on the Company’s results of operations, financial position or net cash flow. Summary of Significant Accounting Policies Certain significant accounting policies followed by the Company are set forth in Note 2, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements in the Company’s 2025 Form 10-K.
|
| Net Income Per Share |
Net Income Per Share Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding ("basic shares"). Included in basic shares are stock equivalent shares that have been accrued as of the balance sheet date as deferred compensation for members of Bancshares’ Board of Directors under the Non-Employee Directors' Deferred Compensation Plan (as defined below and discussed further in Note 9). Diluted net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding, adjusted for the effect of potentially dilutive stock awards outstanding during the period ("dilutive shares"). The dilutive shares consist of unexercised nonqualified stock options granted to employees and members of Bancshares’ Board of Directors pursuant to the Company's Incentive Plan (as defined below and discussed further in Note 10). The following table reflects the weighted average shares used to calculate basic and diluted net income per share for the periods presented.
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Weighted average shares outstanding |
|
|
5,561,014 |
|
|
|
5,745,514 |
|
|
|
5,609,919 |
|
|
|
5,729,990 |
|
Weighted average director stock equivalent shares |
|
|
78,865 |
|
|
|
78,474 |
|
|
|
77,987 |
|
|
|
91,210 |
|
Basic shares |
|
|
5,639,879 |
|
|
|
5,823,988 |
|
|
|
5,687,906 |
|
|
|
5,821,200 |
|
Dilutive shares |
|
|
118,400 |
|
|
|
231,000 |
|
|
|
118,400 |
|
|
|
231,000 |
|
Diluted shares |
|
|
5,758,279 |
|
|
|
6,054,988 |
|
|
|
5,806,306 |
|
|
|
6,052,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
|
(Dollars in Thousands, Except Per Share Data) |
|
Net income |
|
$ |
1,753 |
|
|
$ |
155 |
|
|
$ |
3,698 |
|
|
$ |
1,927 |
|
Basic net income per share |
|
$ |
0.31 |
|
|
$ |
0.03 |
|
|
$ |
0.65 |
|
|
$ |
0.33 |
|
Diluted net income per share |
|
$ |
0.31 |
|
|
$ |
0.03 |
|
|
$ |
0.64 |
|
|
$ |
0.32 |
|
|
| Comprehensive Income |
Comprehensive Income Comprehensive income consists of net income, as well as unrealized holding gains and losses that arise during the period associated with the Company’s available-for-sale securities portfolio and the effective portion of cash flow hedge derivatives. In the calculation of comprehensive income, reclassification adjustments are made for gains or losses realized in the statement of operations associated with the sale of available-for-sale securities or settlement of derivative contracts.
|
| Accounting Standards Recently Adopted/ Not Yet Adopted |
Accounting Standards Recently Adopted The following table provides a description of accounting standards recently adopted as of June 30, 2026.
|
|
|
|
Standard |
Description |
Required Date of Adoption |
Effect on Financial Statements or other significant matters |
ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements |
This ASU amends certain hedge accounting guidance to improve operability and better align hedge accounting with an entity’s risk management activities. The amendments include revisions to the similar risk assessment for cash flow hedges, which may allow entities to broaden the scope of forecasted transactions designated in a hedge relationship, and clarify certain documentation and application requirements. |
Quarterly financial statements as of and for the quarter ending March 31, 2026. Annual financial statements as of and for the year ending December 31, 2026. Early adoption is permitted. |
The adoption of this guidance did not have a material impact. |
|
|
|
|
ASU 2025-08, Financial Instruments-Credit Losses (Topic 326): Purchased Loans |
This ASU expands the use of the gross‑up method to certain acquired non‑purchase credit deteriorated ("PCD") loans classified as purchased seasoned loans. The amendment eliminates Day 1 credit loss expense for these loans by requiring recognition of an initial allowance with a corresponding gross‑up of amortized cost. It also clarifies the criteria for identifying purchased seasoned loans, including special treatment for loans acquired in a business combination. Guidance for PCD assets remains unchanged, and the amendments narrow subsequent measurement differences between purchased seasoned loans and PCD assets. The ASU is applied prospectively. |
Quarterly financial statements as of and for the quarter ending March 31, 2027. Annual financial statements as of and for the year ending December 31, 2027. Early adoption is permitted. |
The adoption of this guidance did not have a material impact. |
Accounting Standards Not Yet Adopted The following table provides a description of recent accounting standards that have not yet been adopted as of June 30, 2026.
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|
|
|
Standard |
Description |
Required Date of Adoption |
Effect on Financial Statements or other significant matters |
ASU 2024-03, Income Statement Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses |
This ASU will change the disclosures about a public business entity's expenses and address requests from investors for more detailed information about the types of expenses (for example: employee compensation, depreciation, and amortization) in expense captions. |
Annual financial statements as of and
for the year ending December 31, 2027. |
The adoption of this guidance is not likely to have a material impact. Management will continue to evaluate through date of adoption. |
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