Note 12 – Subsequent Events

Subsequent to June 30, 2026, a commercial borrower with loans outstanding totaling $11.4 million reported that its business had ceased operations. The subject loans were on nonaccrual status as of June 30, 2026, and the Company had established a specific reserve for the loans based on management's estimate of expected credit losses. Management evaluated this subsequent development in accordance with the subsequent events guidance in ASC 855, Subsequent Events, and concluded that this event provided further evidence of conditions that existed as of June 30, 2026. Accordingly, the Company revised its estimate of expected credit losses resulting in a specific reserve of $2.9 million, which has been reflected in the Company's consolidated financial results herein as of and for three and six months ended June 30, 2026.

On July 15, 2026, the Company redeemed the remainder of the 2029 Notes totaling $14.7 million, inclusive of a $0.2 million purchase accounting adjustment (premium), plus accrued and unpaid interest of $0.3 million. Upon the completion of this redemption, the Company had no outstanding subordinated notes.

On August 7, 2026, the U.S. Court of Appeals for the Fourth Circuit affirmed the dismissal of the plaintiff's claims in the Porter Case.