JUNIOR SUBORDINATED DEBENTURES	6 Months Ended
Jun. 30, 2026
JUNIOR SUBORDINATED DEBENTURES
JUNIOR SUBORDINATED DEBENTURES	NOTE 8 – JUNIOR SUBORDINATED DEBENTURES The Company issued $7.75 million in subordinated debt during 2018. The proceeds were contributed to the Bank as additional paid in capital, and qualifies as Tier 1 Capital at the Bank Level. The subordinated debt may be included in Tier II Capital (with certain limitations applicable) at the parent Company under current regulatory guidelines and interpretations. The subordinated notes have a fixed interest rate of 5.75%, payable quarterly to the note holders. The subordinated debt matures on September 10, 2028. As of June 30, 2026 and December 31, 2025, $1.45 million was owned by certain current directors of the Company. NBC owned $1.0 million of this issuance, which was eliminated on the effective date of the merger, April 1, 2026. As a result, $6.75 million of this subordinated debt offering remains outstanding as of June 30, 2026. NBC issued $5.00 million in subordinated debt during 2020, which was assumed by the Company effective April 1, 2026, and qualifies as Tier 1 Capital at the Bank Level. The subordinated debt may be included in Tier II Capital (with certain limitations applicable) at the parent Company under current regulatory guidelines and interpretations. The subordinated notes have a fixed interest rate of 5.50%, payable quarterly to the note holders. The subordinated debt matures on June 30, 2030. As of June 30, 2026, no amount was owned by certain current directors of the Company. The Company owned $1.5 million of this issuance, which was eliminated on the effective date of the merger, April 1, 2026. As a result, $3.50 million of this subordinated debt offering remains outstanding as of June 30, 2026. NBC issued $4.55 million in subordinated debt during 2023, which was assumed by the Company effective April 1, 2026, and qualifies as Tier 1 Capital at the Bank Level. The subordinated debt may be included in Tier II Capital (with certain limitations applicable) at the parent Company under current regulatory guidelines and interpretations. The subordinated notes have a fixed interest rate of 7.00%, payable quarterly to the note holders. The subordinated debt matures on September 1, 2033. As of June 30, 2026, $2.20 million was owned by certain current directors of the Company. The Company also issued $26 million in subordinated notes on March 25, 2026. The subordinated notes issued mature on April 1, 2036 and bear interest at a fixed annual rate of 7.375%, payable quarterly in arrears, up to but excluding April 1, 2031. From and including April 1, 2031 to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an interest rate per annum initially equal to the then-current three-month Secured Overnight Financing Rate plus 378 basis points, payable quarterly in arrears. The Company is entitled to redeem the Subordinated Notes, in whole or in part, any time on or after April 1, 2031. As of June 30, 2026, $3.10 million was owned by certain current directors of the Company.

JUNIOR SUBORDINATED DEBENTURES

6 Months Ended

Jun. 30, 2026

NOTE 8 – JUNIOR SUBORDINATED DEBENTURES

The Company issued $7.75 million in subordinated debt during 2018. The proceeds were contributed to the Bank as additional paid in capital, and qualifies as Tier 1 Capital at the Bank Level. The subordinated debt may be included in Tier II Capital (with certain limitations applicable) at the parent Company under current regulatory guidelines and interpretations. The subordinated notes have a fixed interest rate of 5.75%, payable quarterly to the note holders. The subordinated debt matures on September 10, 2028. As of June 30, 2026 and December 31, 2025, $1.45 million was owned by certain current directors of the Company. NBC owned $1.0 million of this issuance, which was eliminated on the effective date of the merger, April 1, 2026. As a result, $6.75 million of this subordinated debt offering remains outstanding as of June 30, 2026.

NBC issued $5.00 million in subordinated debt during 2020, which was assumed by the Company effective April 1, 2026, and qualifies as Tier 1 Capital at the Bank Level. The subordinated debt may be included in Tier II Capital (with certain limitations applicable) at the parent Company under current regulatory guidelines and interpretations. The subordinated notes have a fixed interest rate of 5.50%, payable quarterly to the note holders. The subordinated debt matures on June 30, 2030. As of June 30, 2026, no amount was owned by certain current directors of the Company. The Company owned $1.5 million of this issuance, which was eliminated on the effective date of the merger, April 1, 2026. As a result, $3.50 million of this subordinated debt offering remains outstanding as of June 30, 2026.

NBC issued $4.55 million in subordinated debt during 2023, which was assumed by the Company effective April 1, 2026, and qualifies as Tier 1 Capital at the Bank Level. The subordinated debt may be included in Tier II Capital (with certain limitations applicable) at the parent Company under current regulatory guidelines and interpretations. The subordinated notes have a fixed interest rate of 7.00%, payable quarterly to the note holders. The subordinated debt matures on September 1, 2033. As of June 30, 2026, $2.20 million was owned by certain current directors of the Company.

The Company also issued $26 million in subordinated notes on March 25, 2026. The subordinated notes issued mature on April 1, 2036 and bear interest at a fixed annual rate of 7.375%, payable quarterly in arrears, up to but excluding April 1, 2031. From and including April 1, 2031 to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an interest rate per annum initially equal to the then-current three-month Secured Overnight Financing Rate plus 378 basis points, payable quarterly in arrears. The Company is entitled to redeem the Subordinated Notes, in whole or in part, any time on or after April 1, 2031. As of June 30, 2026, $3.10 million was owned by certain current directors of the Company.