On December 31, 2025, the Bank entered into an agreement to sell substantially all of the assets and liabilities of the Bank's mortgage banking segment, NOLA Lending Group. The decision was based on a number of strategic priorities, including the continued decline in mortgage volume. This sale allowed the Bank to exit a business segment that had a net loss of approximately $2.7 million in 2025 and reduced total employees by approximately 108 individuals. The sale closed on March 1, 2026. The Company's financial statements will reflect discontinued operations for the current period and retrospectively for prior periods under ASC 205-20.

As of June 30, 2026, all customer loan pipelines have been finalized and one employee remains as part of this mortgage banking segment. The Company expects to absorb remaining assets and liabilities, at fair value, into the Bank's statements of financial condition in the third quarter of 2026. The Company expects remaining losses from discontinued operations to be significantly less over the final months of 2026.

The following is a summary of the assets and liabilities of the discontinued operations of the mortgage banking segment at June 30, 2026 and December 31, 2025:


	June 30, 2026		December 31, 2025
ASSETS	(Dollars in thousands)
Derivative assets	$	—	$	450
Loans held for sale, at fair value		—		28,504
Premises and equipment, net		—		332
Deferred tax assets		—		26
Other assets		180		568
Total assets	$	180	$	29,880

LIABILITIES
Escrows payable	$	—	$	366
Other liabilities		1,375		1,978
Accrued compensation, including severance payments		99		1,199
Total liabilities	$	1,474	$	3,543

The following presents operating results of discontinued operations for the three and six months ended June 30, 2026 and 2025:


	For the three months ended June 30,						For the six months ended June 30,
	2026			2025			2026			2025
Revenue							(Dollars in thousands)
Net interest income	$	54		$	1,088		$	877		$	2,041
Gain on sales of mortgage loans		314			3,953			3,086			7,293
Other non-interest income		101			13			101			21
Total revenue		469			5,054			4,064			9,355

Expenses
Salaries and employee benefits		524			3,707			3,683			7,106
Hedging activity, net		48			241			(120	)		671
Other general and administrative		862			1,295			1,939			2,608
Total non-interest expenses		1,434			5,243			5,502			10,385

Loss from discontinued operations before income taxes		(965	)		(189	)		(1,438	)		(1,030	)
Income tax benefit from discontinued operations		(198	)		(39	)		(296	)		(215	)
Net loss from discontinued operations	$	(767	)	$	(150	)	$	(1,142	)	$	(815	)