hbcp-20260930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended: September 30, 2026


☐			Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number: 001-34190

HOME BANCORP, INC.

(Exact name of Registrant as specified in its charter)


Louisiana			71-1051785
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification Number)
503 Kaliste Saloom Road, Lafayette, Louisiana			70508
(Address of Principal Executive Offices)			(Zip Code)

Registrant’s telephone number, including area code: (337) 237-1960

Not Applicable

(Former Name, Former Address and Former Fiscal Year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Exchange Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock	HBCP	NASDAQ Stock Market

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

At November 2, 2026, the registrant had 7,779,122 shares of common stock, $0.01 par value, outstanding.

HOME BANCORP, INC. AND SUBSIDIARY

TABLE OF CONTENTS



PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	Page
	Consolidated Statements of Financial Condition	1
	Consolidated Statements of Income	2
	Consolidated Statements of Comprehensive Income	3
	Consolidated Statements of Changes in Shareholders’ Equity	4
	Consolidated Statements of Cash Flows	6
	Notes to Unaudited Consolidated Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46
Item 4.	Controls and Procedures	46
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	47
Item 1A.	Risk Factors	47
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 3.	Defaults Upon Senior Securities	47
Item 4.	Mine Safety Disclosures	47
Item 5.	Other Information	47
Item 6.	Exhibits	48
SIGNATURES		49

HOME BANCORP, INC. AND SUBSIDIARY

GLOSSARY OF DEFINED TERMS

Below is a listing of certain acronyms, abbreviations and defined terms, among others, used throughout this Quarterly Report on Form 10-Q, including in "Item 1. Financial Statements" and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations." The terms "we," "our" or "us" refer to Home Bancorp, Inc. and its consolidated subsidiaries, unless the context otherwise requires.


ACL	–	Allowance for credit losses
ALL	–	Allowance for loan losses
AOCI	–	Accumulated other comprehensive income
ASC	–	Accounting Standards Codification
ASU	–	Accounting Standards Update
Bank	–	Home Bank, N. A., a wholly-owned subsidiary of the Company
BOLI	–	Bank-owned life insurance
bps	–	basis points, 100 basis points being equal to 1.0%





CODM	–	Chief Operating Decision Maker
Company	–	Home Bancorp, Inc., a Louisiana corporation and the holding company for Home Bank, N. A.


EPS	–	Earnings per common share
ESOP	–	Employee Stock Ownership Plan
FASB	–	Financial Accounting Standards Board
FDIC	–	Federal Deposit Insurance Corporation
FHLB	–	Federal Home Loan Bank
GAAP	–	Generally Accepted Accounting Principles
LTV	–	Loan-to-value
NOW	–	Negotiable Order of Withdrawal
NPA(s)	–	Nonperforming asset(s)
OCI	–	Other comprehensive income
ORE	–	Other real estate
PCD	–	Purchased credit deteriorated



SEC	–	U.S. Securities and Exchange Commission
SOFR	–	Secured Overnight Financing Rate
TE	–	Taxable equivalent
U.S.	–	United States
VIE	–	Variable Interest Entity

PART I. FINANCIAL INFORMATION


Item 1.			Financial Statements (Unaudited)

HOME BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


	(Unaudited)		(Audited)
(dollars in thousands)	September 30, 2026		December 31, 2025
Assets
Cash and cash equivalents	$	179,053	$	141,605

Investment securities available for sale, at fair value (amortized cost $452,047 and $414,884, respectively)	415,595		391,448
Investment securities held to maturity (fair values of $0 and $1,066, respectively)	—		1,065
Mortgage loans held for sale	774		1,558
Loans, net of unearned income	2,774,864		2,744,023
Allowance for loan losses	(34,427)		(33,142)
Total loans, net of unearned income and allowance for loan losses	2,740,437		2,710,881
Office properties and equipment, net	51,467		48,995
Cash surrender value of bank-owned life insurance	50,426		49,557
Goodwill and core deposit intangibles	83,304		83,957
Accrued interest receivable and other assets	75,311		63,560
Total Assets	$	3,596,367	$	3,492,626
Liabilities
Deposits:
Noninterest-bearing	$	827,696	$	792,951
Interest-bearing	2,225,804		2,179,855
Total Deposits	3,053,500		2,972,806

Subordinated debt, net of issuance cost	54,838		54,675

Long-term Federal Home Loan Bank advances	—		3,024
Accrued interest payable and other liabilities	34,931		27,027
Total Liabilities	3,143,269		3,057,532
Shareholders’ Equity
Preferred stock, $0.01 par value - 10,000,000 shares authorized; none issued	—		—
Common stock, $0.01 par value - 40,000,000 shares authorized; 7,873,701 and 7,831,342 shares issued and outstanding, respectively	79		78
Additional paid-in capital	172,362		168,963
Unallocated common stock held by:
Employee Stock Ownership Plan	(714)		(982)

Retained earnings	309,679		284,834
Accumulated other comprehensive loss	(28,308)		(17,799)
Total Shareholders’ Equity	453,098		435,094
Total Liabilities and Shareholders’ Equity	$	3,596,367	$	3,492,626

The accompanying Notes are an integral part of these Consolidated Financial Statements.

HOME BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands, except per share data)	2026		2025		2026		2025
Interest Income
Loans, including fees	$	45,236	$	45,607	$	133,954	$	134,926
Investment securities:
Taxable interest	3,069		2,432		8,293		7,547
Tax-exempt interest	65		72		205		217
Other investments and deposits	1,373		1,111		4,250		2,362
Total interest income	49,743		49,222		146,702		145,052
Interest Expense
Deposits	12,984		13,805		37,959		39,569
Other borrowings	—		54		—		160
Subordinated debt expense	844		845		2,534		2,534
Short-term Federal Home Loan Bank advances	—		303		—		3,078
Long-term Federal Home Loan Bank advances	—		109		7		505
Total interest expense	13,828		15,116		40,500		45,846
Net interest income	35,915		34,106		106,202		99,206
Provision (reversal) for loan losses	1,019		(229)		2,703		654
Net interest income after provision for loan losses	34,896		34,335		103,499		98,552
Noninterest Income
Service fees and charges	1,512		1,408		4,356		4,062
Bank card fees	1,773		1,646		5,085		4,974
Gain on sale of loans, net	154		144		613		635
Income from bank-owned life insurance	295		288		869		848

(Loss) gain on sale of assets, net	—		—		(1)		7
Other income	467		252		936		937
Total noninterest income	4,201		3,738		11,858		11,463
Noninterest Expense
Compensation and benefits	15,156		13,531		43,906		39,505
Occupancy	2,463		2,544		7,506		7,618
Marketing and advertising	435		515		1,451		1,405
Data processing and communication	2,834		2,556		8,118		7,826
Professional services	422		406		1,240		1,207
Forms, printing and supplies	178		175		576		578
Franchise and shares tax	532		475		1,212		1,434
Regulatory fees	471		459		1,393		1,477
Foreclosed assets, net	2,042		377		2,481		1,023
Amortization of acquisition intangible	209		268		653		830
Reversal for credit losses on unfunded commitments	—		—		—		(970)
Other expenses	1,581		1,225		5,281		4,584
Total noninterest expense	26,323		22,531		73,817		66,517
Income before income tax expense	12,774		15,542		41,540		43,498
Income tax expense	2,677		3,185		8,468		8,847
Net Income	$	10,097	$	12,357	$	33,072	$	34,651
Earnings per share:
Basic	$	1.30	$	1.60	$	4.26	$	4.45
Diluted	$	1.28	$	1.59	$	4.21	$	4.41
Cash dividends declared per common share	$	0.32	$	0.29	$	0.94	$	0.83

The accompanying Notes are an integral part of these Consolidated Financial Statements.

HOME BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2026		2025		2026		2025
Net Income	$	10,097	$	12,357	$	33,072	$	34,651
Other Comprehensive (Loss) Income
Unrealized (losses) gains on available for sale investment securities	(11,403)		3,688		(13,016)		14,510
Unrealized losses on cash flow hedges	(96)		(394)		(286)		(1,737)

Tax effect	2,415		(692)		2,793		(2,682)
Other comprehensive (loss) income, net of taxes	(9,084)		2,602		(10,509)		10,091
Comprehensive Income	$	1,013	$	14,959	$	22,563	$	44,742

The accompanying Notes are an integral part of these Consolidated Financial Statements.

HOME BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)


(dollars in thousands, except per share data)	Common stock		Additional Paid-in capital		Unallocated Common Stock Held by ESOP		Retained Earnings		Accumulated Other Comprehensive Loss		Total
Balance, June 30, 2025	$	78	$	166,576	$	(1,160)	$	265,817	$	(22,493)	$	408,818
Net income							12,357				12,357
Other comprehensive income									2,602		2,602
Purchase of Company’s common stock at cost, 100 shares	—		(2)				7				5
Cash dividends declared, $0.29 per share							(2,269)				(2,269)
Common Stock issued under incentive plans, net of shares surrendered in payment, including tax benefit, 18,160 shares	—		606				—				606


ESOP shares released for allocation			439		89						528
Share-based compensation cost			370								370
Balance, September 30, 2025	$	78	$	168,016	$	(1,071)	$	275,912	$	(19,891)	$	423,044
Balance, June 30, 2026	$	79	$	171,234	$	(803)	$	302,171	$	(19,224)	$	453,457
Net income							10,097				10,097
Other comprehensive loss									(9,084)		(9,084)
Purchase of Company’s common stock at cost, 350 shares	—		(4)				(21)				(25)
Cash dividends declared, $0.32 per share							(2,518)				(2,518)
Common Stock issued under incentive plans, net of shares surrendered in payment, including tax benefit, 5,912 shares	—		127				(50)				77


ESOP shares released for allocation			552		89						641
Share-based compensation cost			453								453
Balance, September 30, 2026	$	79	$	172,362	$	(714)	$	309,679	$	(28,308)	$	453,098

The accompanying Notes are an integral part of these Consolidated Financial Statements.

HOME BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - CONTINUED

(Unaudited)


(dollars in thousands, except per share data)	Common stock		Additional Paid-in capital		Unallocated Common Stock Held by ESOP		Retained Earnings		Accumulated Other Comprehensive Loss		Total
Balance, December 31, 2024	$	81	$	168,138	$	(1,339)	$	259,190	$	(29,982)	$	396,088

Net income							34,651				34,651
Other comprehensive income									10,091		10,091
Purchase of Company’s common stock at cost, 320,840 shares	(3)		(3,206)				(11,104)				(14,313)
Cash dividends declared, $0.83 per share							(6,562)				(6,562)
Common Stock issued under incentive plans, net of shares surrendered in payment, including tax benefit, 55,549 shares			871				(263)				608
Exercise of stock options	—		38								38

ESOP shares released for allocation			1,186		268						1,454
Share-based compensation cost			989								989
Balance, September 30, 2025	$	78	$	168,016	$	(1,071)	$	275,912	$	(19,891)	$	423,044
Balance, December 31, 2025	$	78	$	168,963	$	(982)	$	284,834	$	(17,799)	$	435,094
Net income							33,072				33,072
Other comprehensive loss									(10,509)		(10,509)
Purchase of Company’s common stock at cost, 7,402 shares	—		(74)				(382)				(456)
Cash dividends declared, $0.94 per share							(7,377)				(7,377)
Common Stock issued under incentive plans, net of shares surrendered in payment, including tax benefit, 49,511 shares	1		622				(468)				155
Exercise of stock options	—		11								11

ESOP shares released for allocation			1,526		268						1,794
Share-based compensation cost			1,314								1,314
Balance, September 30, 2026	$	79	$	172,362	$	(714)	$	309,679	$	(28,308)	$	453,098

The accompanying Notes are an integral part of these Consolidated Financial Statements.

HOME BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	For the Nine Months Ended September 30,
(dollars in thousands)	2026		2025
Cash flows from operating activities:
Net income	$	33,072	$	34,651
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	2,703		654
Reversal of provision for unfunded commitments	—		(970)
Depreciation	2,633		2,473
Amortization and accretion of purchase accounting valuations and intangibles	1,235		1,895
Losses on equity investments	70		188

Federal Home Loan Bank stock dividends	(76)		(305)
Net (accretion) amortization of discount on investments	(300)		166
Amortization of subordinated debt issuance cost	163		162

Gain on loans sold, net	(613)		(635)
Proceeds, including principal payments, from loans held for sale	79,245		45,095
Originations of loans held for sale	(77,886)		(45,870)
Loss (gain) on sale of assets, net	1		(7)
Non-cash compensation	3,108		2,443
Deferred income tax (benefit) expense	(621)		198
Decrease in accrued interest receivable and other assets	2,547		1,585
Increase in cash surrender value of bank-owned life insurance	(869)		(848)
Increase in accrued interest payable and other liabilities	7,904		1,939
Net cash provided by operating activities	52,316		42,814
Cash flows from investing activities:
Purchases of securities available for sale	(101,558)		(11,652)
Proceeds from maturities, prepayments and calls on securities available for sale	64,695		45,448
Proceeds from maturities, prepayments and calls on securities held to maturity	1,065		—

(Increase) decrease in loans, net	(48,179)		8,453

Proceeds from sale of foreclosed assets	4,217		2,588
Purchases of office properties and equipment	(5,106)		(5,552)




Proceeds from sale of office properties and equipment	—		187
Purchase of Federal Home Loan Bank stock	—		(1,582)
Proceeds from redemption of Federal Home Loan Bank stock	—		7,987
Net cash (used in) provided by investing activities	(84,866)		45,877
Cash flows from financing activities:
Increase in deposits, net	80,689		194,801
Borrowings of Federal Home Loan Bank advances	—		3,598,875
Repayments of Federal Home Loan Bank advances	(3,024)		(3,771,362)


Proceeds from exercise of stock options	11		38
Issuance of stock under incentive plans, net	155		608
Dividends paid to shareholders	(7,377)		(6,562)
Purchase of Company’s common stock	(456)		(14,313)
Net cash provided by financing activities	69,998		2,085
Net change in cash and cash equivalents	37,448		90,776
Cash and cash equivalents, beginning	141,605		98,548
Cash and cash equivalents, ending	$	179,053	$	189,324
Supplementary cash flow information:
Interest paid on deposits and borrowed funds	$	37,323	$	44,680
Income taxes paid	9,845		10,240

The accompanying Notes are an integral part of these Consolidated Financial Statements.

HOME BANCORP, INC. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Presentation

The accompanying unaudited consolidated financial statements of Home Bancorp, Inc. (the "Company") were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, comprehensive income, changes in shareholders’ equity and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three and nine months ended September 30, 2026 and 2025 are not necessarily indicative of the results which may be expected for the entire fiscal year. These statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") for the year ended December 31, 2025.

Critical Accounting Policies and Estimates

Critical accounting policies are defined as those that are reflective of significant judgments and uncertainties and could reflect materially different results under different assumptions and conditions. Methodologies the Company uses when applying critical accounting policies and developing critical accounting estimates are included in its Annual Report on Form 10-K for the year ended December 31, 2025.

There have been no material changes from the critical accounting policies previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. In preparing its financial statements, the Company is required to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Operating Segments

Generally Accepted Accounting Principles ("GAAP") requires the reporting of operating segment information using a management approach. Reportable segments are defined as revenue-generating components for which discrete financial information is prepared and regularly reviewed by the chief operating decision maker ("CODM") for purposes of resource allocation and performance assessment. The Company operates under a unified banking strategy that delivers a consistent suite of products and services across all market areas and, accordingly, has determined that its banking operations constitute one reportable operating segment. The Company’s senior executive management functions as its CODM. The CODM reviews consolidated financial information to allocate resources and assess performance. As these operations represent substantially all of the Company’s consolidated activities, separate segment financial disclosures are not required.

Reclassifications

Certain reclassifications may have been made to prior period balances to conform to the current period presentation.

2. Recent Accounting Pronouncements

Issued but Not Yet Adopted Accounting Standards

Accounting Standards Update ("ASU") 2023-06, "Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative" ("ASU 2023-06") related to disclosure or presentation requirements for various subtopics in the Financial Accounting Standards Board's ("FASB") Accounting Standards Codification (“ASC”). The amendments in the update are intended to align the requirements in the ASC with the SEC's regulations and facilitate the application of GAAP for all entities. The effective date for each amendment is the date on which the SEC's removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, or if the SEC has not removed the requirements by June 30, 2027, this amendment will be removed from the ASC and will not become effective for any entity. Early adoption is prohibited. We do not expect this update to have a material impact on our consolidated financial statements.

ASU 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures" ("ASU 2024-03") requires the disaggregation of certain expenses in the notes to the financial statements, to provide enhanced transparency into the expense captions presented on the face of the income statement. The amendments in ASU 2024-03 are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this ASU may be applied either prospectively or

retrospectively. The Company is currently evaluating the impact that this update will have on its disclosures in the consolidated financial statements.

ASU No. 2025-08, "Financial Instruments—Credit Losses (Topic 326): Purchased Loans" ("ASU 2025-08") amends the guidance in ASC 326 on the accounting for certain purchased loans. The amendments in ASU 2025-08 require that purchased seasoned loans be accounted for using the “gross-up approach,” which will enhance comparability and consistency in the accounting for acquired financial assets. ASU 2025-08 is effective for interim and annual reporting periods beginning after December 15, 2026. Early adoption is permitted in an interim or annual reporting period in which financial statements have not yet been issued or made available for issuance. We do not expect this update to have a material impact on our consolidated financial statements.

ASU No. 2025-09, "Derivatives and Hedging (Topic 815): Hedge Accounting Improvements" ("ASU 2025-09") is related to accounting for hedging activities. The amendments in ASU 2025-09 are intended to more closely align hedge accounting with the economics of an entity’s risk management activities. This update is effective for annual periods beginning after December 15, 2026, including interim periods within those fiscal years, though early adoption is permitted. We do not expect it to have a material effect on our consolidated financial statements.

ASU No. 2025-11, "Interim Reporting (Topic 270): Narrow-Scope Improvements" ("ASU 2025-11") clarifies the current interim disclosure requirements and creates a comprehensive list of interim disclosures required under GAAP. ASU 2025-11 also incorporates a disclosure principle that requires interim period disclosures of material events or changes that have occurred since the previous year-end. ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027 with early adoption permitted. We are currently evaluating the impact that this update will have on our disclosures in the consolidated financial statements.

ASU No. 2025-12, "Codification Improvements" ("ASU 2025-12") addresses suggestions received from stakeholders regarding the ASC and makes other incremental improvements to GAAP. The update represents changes to the ASC that clarify, correct errors, or make minor improvements to a variety of topics that are intended to make it easier to understand and apply. ASU 2025-12 is effective for fiscal years beginning after December 15, 2026 and interim periods within those fiscal years. Entities are required to apply the amendments to ASC 260 retrospectively. All other amendments may be applied prospectively or retrospectively. Early adoption is permitted. We do not expect this update to have a material impact on our consolidated financial statements.

3. Investment Securities

The following tables summarize the Company’s available for sale and held to maturity investment securities at September 30, 2026 and December 31, 2025.


(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2026
Available for sale:
U.S. agency mortgage-backed	$	341,618	$	28	$	26,922	$	314,724
Collateralized mortgage obligations	43,090		—		1,277		41,813
Municipal bonds	52,703		—		7,587		45,116
U.S. government agency	9,636		—		694		8,942
Corporate bonds	5,000		—		—		5,000
Total available for sale	$	452,047	$	28	$	36,480	$	415,595


(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2025
Available for sale:
U.S. agency mortgage-backed	$	284,749	$	402	$	17,501	$	267,650
Collateralized mortgage obligations	61,185		1		859		60,327
Municipal bonds	53,018		3		4,874		48,147
U.S. government agency	11,441		—		438		11,003
Corporate bonds	4,491		9		179		4,321
Total available for sale	$	414,884	$	415	$	23,851	$	391,448
Held to maturity:
Municipal bonds	$	1,065	$	1	$	—	$	1,066
Total held to maturity	$	1,065	$	1	$	—	$	1,066

The estimated fair value and amortized cost by contractual maturity of the Company’s investment securities as of September 30, 2026 are shown in the following tables. Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options. The expected maturity of a security may differ from its contractual maturity because of prepayments or the exercise of call options. Accordingly, actual maturities may differ from contractual maturities. The Company’s investment securities portfolio had an effective duration of 3.6 years and 3.3 years at September 30, 2026 and December 31, 2025, respectively.


(dollars in thousands)	One Year or Less		After One Year through Five Years		After Five Years through Ten Years		After Ten Years		Total
Fair Value
Available for sale:
U.S. agency mortgage-backed	$	8,282	$	112,101	$	86,862	$	107,479	$	314,724
Collateralized mortgage obligations	16,960		13,834		300		10,719		41,813
Municipal bonds	—		13,411		31,282		423		45,116
U.S. government agency	—		1,332		7,610		—		8,942
Corporate bonds	—		—		5,000		—		5,000
Total available for sale	$	25,242	$	140,678	$	131,054	$	118,621	$	415,595


(dollars in thousands)	One Year or Less		After One Year through Five Years		After Five Years through Ten Years		After Ten Years		Total
Amortized Cost
Available for sale:
U.S. agency mortgage-backed	$	8,326	$	117,533	$	93,636	$	122,123	$	341,618
Collateralized mortgage obligations	17,083		14,318		306		11,383		43,090
Municipal bonds	—		14,429		37,766		508		52,703
U.S. government agency	—		1,444		8,192		—		9,636
Corporate bonds	—		—		5,000		—		5,000
Total available for sale	$	25,409	$	147,724	$	144,900	$	134,014	$	452,047

Management evaluates securities for impairment from credit losses at least quarterly, and more frequently when economic and market conditions warrant such evaluations. Consideration is given to numerous factors including, but not limited to, the extent to which the fair value is less than the amortized cost basis; adverse conditions causing changes in the financial condition of the issuer of the security or underlying loan guarantors; changes to the rating of the security by a rating agency; and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost, which may extend to maturity.

The Company performs a process to determine whether the decline in the fair value of securities has resulted from credit losses or other factors. This process involves evaluating each security for impairment by monitoring credit performance, collateral type, collateral geography, bond credit support, loan-to-value ("LTV") ratios, credit scores, loss severity levels, pricing levels, downgrades by rating agencies, cash flow projections and other factors as indicators of potential credit issues. If this evaluation indicates the existence of credit losses, the Company compares the present value of cash flows expected to be collected from the security with the amortized cost basis. If the present value of expected cash flows is less than the amortized cost basis, an allowance for credit losses ("ACL") is recorded, limited by the amount that the fair value of the security is less than its amortized cost.

The Company's investment securities with unrealized losses, aggregated by type and length of time that individual securities have been in a continuous loss position, are summarized in the following tables.


(dollars in thousands)	Less Than 1 Year				Over 1 Year				Total
September 30, 2026	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale:
U.S. agency mortgage-backed	$	134,867	$	5,207	$	177,730	$	21,715	$	312,597	$	26,922
Collateralized mortgage obligations	9,934		164		31,873		1,113		41,807		1,277
Municipal bonds	1,731		71		42,745		7,516		44,476		7,587
U.S. government agency	2,699		137		6,243		557		8,942		694
Corporate bonds	—		—		—		—		—		—
Total available for sale	$	149,231	$	5,579	$	258,591	$	30,901	$	407,822	$	36,480


(dollars in thousands)	Less Than 1 Year				Over 1 Year				Total
December 31, 2025	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale:
U.S. agency mortgage-backed	$	13,590	$	51	$	220,409	$	17,450	$	233,999	$	17,501
Collateralized mortgage obligations	25		—		60,276		859		60,301		859
Municipal bonds	—		—		46,205		4,874		46,205		4,874
U.S. government agency	—		—		11,003		438		11,003		438
Corporate bonds	—		—		3,320		179		3,320		179
Total available for sale	$	13,615	$	51	$	341,213	$	23,800	$	354,828	$	23,851

At September 30, 2026, 239 of the Company’s debt securities had unrealized losses totaling 8.2% of the individual securities’ amortized cost basis and 8.1% of the Company’s total amortized cost basis of the investment securities portfolio. At such date, 181 of the 239 securities had been in a continuous loss position for over 12 months. Management has determined that the declines in the fair value of these securities were not attributable to credit losses. As a result, no ACL was recorded for available for sale investment securities at September 30, 2026.

At September 30, 2026, it was determined that no ACL was required for the Company's held-to-maturity investment securities. The Company monitors credit quality of debt securities held-to-maturity through the use of credit ratings. The following tables present the amortized cost of the Company's held-to-maturity securities by credit quality rating at September 30, 2026 and December 31, 2025.

Credit Ratings

(dollars in thousands)

AAA/AA/A

BBB/BB/B

Total

September 30, 2026

Held to maturity:

Municipal bonds

—


	Credit Ratings
(dollars in thousands)	AAA/AA/A		BBB/BB/B		Total
December 31, 2025
Held to maturity:
Municipal bonds	$	1,065	$	—	$	1,065

Accrued interest receivable on the Company's investment securities was $1,320,000 and $1,305,000 at September 30, 2026 and December 31, 2025, respectively. These amounts are recorded in accrued interest receivable and other assets on the Consolidated Statements of Financial Condition.

At September 30, 2026 and December 31, 2025, the Company had $129,571,000 and $140,110,000, respectively, of securities pledged to secure public deposits. In addition, as of September 30, 2026 and December 31, 2025, the Company had $572,000 and $2,370,000, respectively, of securities pledged to the Federal Reserve Discount Window and U.S. Bankruptcy Trustee for debtor in possession accounts held at Home Bank, N.A. (the "Bank").

4. Earnings Per Share

Earnings per common share ("EPS") was computed based on the following:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share data)	2026		2025		2026		2025
Numerator:
Net income available to common shareholders	$	10,097	$	12,357	$	33,072	$	34,651
Denominator:
Weighted average common shares outstanding	7,796		7,713		7,769		7,789
Effect of dilutive securities:
Restricted stock	49		41		53		44
Stock options	29		29		30		30
Weighted average common shares outstanding – assuming dilution	7,874		7,783		7,852		7,863
Basic earnings per common share	$	1.30	$	1.60	$	4.26	$	4.45
Diluted earnings per common share	$	1.28	$	1.59	$	4.21	$	4.41

Options for 14,295 and 16,346 shares of common stock were not included in the computation of diluted EPS for the three months ended September 30, 2026 and 2025, respectively, because the effect of those shares was anti-dilutive. For the nine months ended September 30, 2026 and 2025, options for 6,259 and 8,357, respectively, shares of common stock were not included in the computation of diluted EPS because the effect of these shares was anti-dilutive.

5. Credit Quality and Allowance for Credit Losses

The Company’s loans, net of unearned income, consisted of the following as of the dates indicated.


(dollars in thousands)	September 30, 2026		December 31, 2025
Real estate loans:
One- to four-family first mortgage	$	469,700	$	493,446
Home equity loans and lines	91,279		92,574
Commercial real estate	1,224,277		1,190,388
Construction and land	303,735		329,227
Multi-family residential	194,134		177,825
Total real estate loans	2,283,125		2,283,460
Other loans:
Commercial and industrial	462,665		430,517
Consumer	29,074		30,046
Total other loans	491,739		460,563
Total loans	$	2,774,864	$	2,744,023

The net discount on the Company’s acquired loans was $618,000 and $1,183,000 at September 30, 2026 and December 31, 2025, respectively. In addition, loan balances as of September 30, 2026 and December 31, 2025 are reported net of unearned income of $5,061,000 and $4,929,000, respectively.

Accrued interest receivable on the Company's loans was $12,618,000 and $13,000,000 at September 30, 2026 and December 31, 2025, respectively, and is excluded from the estimate of the ACL. Those amounts are recorded in accrued interest receivable and other assets on the Consolidated Statements of Financial Condition.

Allowance for Credit Losses

The ACL, which includes the allowance for loan losses ("ALL") and the ACL on unfunded lending commitments, and recorded investment in loans as of the dates indicated are as follows.


	September 30, 2026
(dollars in thousands)	Collectively Evaluated		Individually Evaluated		Total
Allowance for credit losses:
One- to four-family first mortgage	$	3,929	$	112	$	4,041
Home equity loans and lines	1,140		—		1,140
Commercial real estate	13,828		135		13,963
Construction and land	2,906		—		2,906
Multi-family residential	1,552		—		1,552
Commercial and industrial	7,246		2,768		10,014
Consumer	811		—		811
Total allowance for loan losses	$	31,412	$	3,015	$	34,427

Unfunded lending commitments(1)	$	1,625	$	—	$	1,625
Total allowance for credit losses	$	33,037	$	3,015	$	36,052


	September 30, 2026
(dollars in thousands)	Collectively Evaluated		Individually Evaluated(2)		Total
Loans:
One- to four-family first mortgage	$	468,692	$	1,008	$	469,700
Home equity loans and lines	91,279		—		91,279
Commercial real estate	1,221,082		3,195		1,224,277
Construction and land	303,735		—		303,735
Multi-family residential	194,134		—		194,134
Commercial and industrial	457,942		4,723		462,665
Consumer	29,074		—		29,074
Total loans	$	2,765,938	$	8,926	$	2,774,864


	December 31, 2025
(dollars in thousands)	Collectively Evaluated		Individually Evaluated		Total
Allowance for credit losses:
One- to four-family first mortgage	$	4,651	$	411	$	5,062
Home equity loans and lines	1,335		—		1,335
Commercial real estate	14,141		362		14,503
Construction and land	2,813		—		2,813
Multi-family residential	1,363		136		1,499
Commercial and industrial	6,782		356		7,138
Consumer	792		—		792
Total allowance for loan losses	$	31,877	$	1,265	$	33,142

Unfunded lending commitments(1)	$	1,625	$	—	$	1,625
Total allowance for credit losses	$	33,502	$	1,265	$	34,767


	December 31, 2025
(dollars in thousands)	Collectively Evaluated		Individually Evaluated(2)		Total
Loans:
One- to four-family first mortgage	$	491,142	$	2,304	$	493,446
Home equity loans and lines	92,574		—		92,574
Commercial real estate	1,188,226		2,162		1,190,388
Construction and land	328,707		520		329,227
Multi-family residential	177,222		603		177,825
Commercial and industrial	429,900		617		430,517
Consumer	30,046		—		30,046
Total loans	$	2,737,817	$	6,206	$	2,744,023

(1)The ACL on unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition.

(2)There were no purchased credit deteriorated ("PCD") loans individually evaluated at September 30, 2026. One PCD loan was individually evaluated at December 31, 2025.

A summary of activity in the ACL for the nine months ended September 30, 2026 and September 30, 2025 follows.


	Nine Months Ended September 30, 2026
(dollars in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (Reversal)		Ending Balance
Allowance for credit losses:
One- to four-family first mortgage	$	5,062	$	(315)	$	3	$	(709)	$	4,041
Home equity loans and lines	1,335		—		—		(195)		1,140
Commercial real estate	14,503		(200)		—		(340)		13,963
Construction and land	2,813		(126)		—		219		2,906
Multi-family residential	1,499		—		—		53		1,552
Commercial and industrial	7,138		(614)		184		3,306		10,014
Consumer	792		(375)		25		369		811
Total allowance for loan losses	$	33,142	$	(1,630)	$	212	$	2,703	$	34,427

Unfunded lending commitments	$	1,625	$	—	$	—	$	—	$	1,625
Total allowance for credit losses	$	34,767	$	(1,630)	$	212	$	2,703	$	36,052


	Nine Months Ended September 30, 2025
(dollars in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (Reversal)		Ending Balance
Allowance for credit losses:
One- to four-family first mortgage	$	4,430	$	—	$	11	$	778	$	5,219
Home equity loans and lines	801		—		36		149		986
Commercial real estate	13,521		(21)		—		1,303		14,803
Construction and land	5,484		(102)		—		(2,292)		3,090
Multi-family residential	1,090		—		—		67		1,157
Commercial and industrial	6,861		(765)		334		394		6,824
Consumer	729		(286)		50		255		748
Total allowance for loan losses	$	32,916	$	(1,174)	$	431	$	654	$	32,827

Unfunded lending commitments	$	2,700	$	—	$	—	$	(970)	$	1,730
Total allowance for credit losses	$	35,616	$	(1,174)	$	431	$	(316)	$	34,557

Credit Quality

The following tables present the Company’s loan portfolio by credit quality classification and origination year as of September 30, 2026 and December 31, 2025. The gross charge-offs presented in the tables that follow are for the nine months ended September 30, 2026 and the year ended December 31, 2025.


	September 30, 2026
	Term Loans by Origination Year
(dollars in thousands)	2026		2025		2024		2023		2022		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
One- to four-family first mortgage:
Pass	$	55,683	$	56,993	$	53,285	$	69,407	$	78,283	$	120,385	$	27,824	$	591	$	462,451
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		1,174		593		1,423		1,076		2,850		97		36		7,249
Doubtful	—		—		—		—		—		—		—		—		—
Total one- to four-family first mortgages	$	55,683	$	58,167	$	53,878	$	70,830	$	79,359	$	123,235	$	27,921	$	627	$	469,700
Current period gross charge-offs	$	—	$	—	$	—	$	136	$	—	$	179	$	—	$	—	$	315
Home equity loans and lines:
Pass	$	439	$	1,863	$	1,433	$	2,054	$	2,782	$	5,425	$	76,608	$	162	$	90,766
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		250		72		191		513
Doubtful	—		—		—		—		—		—		—		—		—
Total home equity loans and lines	$	439	$	1,863	$	1,433	$	2,054	$	2,782	$	5,675	$	76,680	$	353	$	91,279
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate:
Pass	$	183,793	$	201,171	$	157,098	$	121,665	$	235,815	$	252,190	$	18,775	$	224	$	1,170,731
Special Mention	—		—		9,784		345		—		4,293		—		—		14,422
Substandard	—		763		2,260		3,522		7,593		22,014		2,760		212		39,124
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial real estate loans	$	183,793	$	201,934	$	169,142	$	125,532	$	243,408	$	278,497	$	21,535	$	436	$	1,224,277
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	200	$	—	$	—	$	200
Construction and land:
Pass	$	75,854	$	121,099	$	35,991	$	40,339	$	4,213	$	5,110	$	5,951	$	117	$	288,674
Special Mention	—		1,687		—		—		127		—		—		—		1,814
Substandard	—		5		301		11,497		297		1,147		—		—		13,247
Doubtful	—		—		—		—		—		—		—		—		—
Total construction and land loans	$	75,854	$	122,791	$	36,292	$	51,836	$	4,637	$	6,257	$	5,951	$	117	$	303,735
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	126	$	—	$	—	$	—	$	126


	September 30, 2026
	Term Loans by Origination Year
(dollars in thousands)	2026		2025		2024		2023		2022		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
Multi-family residential:
Pass	$	26,636	$	23,671	$	38,281	$	30,598	$	44,951	$	23,131	$	4,574	$	—	$	191,842
Special Mention	—		150		—		—		—		1,154		—		—		1,304
Substandard	—		308		—		—		310		—		—		370		988
Doubtful	—		—		—		—		—		—		—		—		—
Total multi-family residential loans	$	26,636	$	24,129	$	38,281	$	30,598	$	45,261	$	24,285	$	4,574	$	370	$	194,134
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial:
Pass	$	85,858	$	48,050	$	35,350	$	30,300	$	30,767	$	9,509	$	194,088	$	2,379	$	436,301
Special Mention	—		—		1,013		—		3		—		1,136		2,491		4,643
Substandard	—		2,115		2,672		282		415		394		12,413		3,430		21,721
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial and industrial loans	$	85,858	$	50,165	$	39,035	$	30,582	$	31,185	$	9,903	$	207,637	$	8,300	$	462,665
Current period gross charge-offs	$	13	$	59	$	8	$	15	$	—	$	79	$	440	$	—	$	614
Consumer:
Pass	$	5,242	$	2,964	$	1,285	$	966	$	1,008	$	6,816	$	10,747	$	27	$	29,055
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		4		15		—		—		19
Doubtful	—		—		—		—		—		—		—		—		—
Total consumer loans	$	5,242	$	2,964	$	1,285	$	966	$	1,012	$	6,831	$	10,747	$	27	$	29,074
Current period gross charge-offs	$	—	$	17	$	8	$	11	$	—	$	5	$	334	$	—	$	375
Total loans:
Pass	$	433,505	$	455,811	$	322,723	$	295,329	$	397,819	$	422,566	$	338,567	$	3,500	$	2,669,820
Special Mention	—		1,837		10,797		345		130		5,447		1,136		2,491		22,183
Substandard	—		4,365		5,826		16,724		9,695		26,670		15,342		4,239		82,861
Doubtful	—		—		—		—		—		—		—		—		—
Total loans	$	433,505	$	462,013	$	339,346	$	312,398	$	407,644	$	454,683	$	355,045	$	10,230	$	2,774,864
Current period gross charge-offs	$	13	$	76	$	16	$	162	$	126	$	463	$	774	$	—	$	1,630


	December 31, 2025
	Term Loans by Origination Year
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
One- to four-family first mortgage:
Pass	$	65,510	$	61,353	$	85,573	$	90,946	$	68,713	$	87,020	$	26,173	$	1,165	$	486,453
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	20		245		1,534		2,625		409		1,999		—		161		6,993
Doubtful	—		—		—		—		—		—		—		—		—
Total one- to four-family first mortgages	$	65,530	$	61,598	$	87,107	$	93,571	$	69,122	$	89,019	$	26,173	$	1,326	$	493,446
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	14	$	—	$	—	$	14
Home equity loans and lines:
Pass	$	1,652	$	1,526	$	1,257	$	1,937	$	1,395	$	3,756	$	76,230	$	3,479	$	91,232
Special Mention	—		—		145		483		183		—		—		—		811
Substandard	—		—		—		59		—		343		29		100		531
Doubtful	—		—		—		—		—		—		—		—		—
Total home equity loans and lines	$	1,652	$	1,526	$	1,402	$	2,479	$	1,578	$	4,099	$	76,259	$	3,579	$	92,574
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate:
Pass	$	184,225	$	178,055	$	141,348	$	259,605	$	175,380	$	191,197	$	19,545	$	5,742	$	1,155,097
Special Mention	—		—		—		1,043		796		1,108		—		—		2,947
Substandard	398		146		363		7,559		8,414		14,704		760		—		32,344
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial real estate loans	$	184,623	$	178,201	$	141,711	$	268,207	$	184,590	$	207,009	$	20,305	$	5,742	$	1,190,388
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	21	$	—	$	—	$	21
Construction and land:
Pass	$	118,753	$	83,534	$	81,356	$	10,442	$	2,741	$	5,219	$	10,765	$	184	$	312,994
Special Mention	—		—		727		139		—		—		—		—		866
Substandard	—		2,626		10,626		2,115		—		—		—		—		15,367
Doubtful	—		—		—		—		—		—		—		—		—
Total construction and land loans	$	118,753	$	86,160	$	92,709	$	12,696	$	2,741	$	5,219	$	10,765	$	184	$	329,227
Current period gross charge-offs	$	—	$	100	$	—	$	—	$	1	$	—	$	—	$	—	$	101
Multi-family residential:
Pass	$	26,530	$	38,459	$	19,871	$	47,438	$	21,613	$	21,085	$	1,231	$	—	$	176,227
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	308		—		—		317		—		602		371		—		1,598


	December 31, 2025
	Term Loans by Origination Year
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
Doubtful	—		—		—		—		—		—		—		—		—
Total multi-family residential loans	$	26,838	$	38,459	$	19,871	$	47,755	$	21,613	$	21,687	$	1,602	$	—	$	177,825
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial:
Pass	$	59,909	$	63,421	$	45,067	$	42,544	$	9,457	$	6,239	$	198,975	$	653	$	426,265
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	1,565		92		204		316		347		18		1,567		143		4,252
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial and industrial loans	$	61,474	$	63,513	$	45,271	$	42,860	$	9,804	$	6,257	$	200,542	$	796	$	430,517
Current period gross charge-offs	$	—	$	18	$	247	$	19	$	—	$	115	$	466	$	—	$	865
Consumer:
Pass	$	7,087	$	2,423	$	1,366	$	1,164	$	207	$	7,703	$	9,964	$	86	$	30,000
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	5		—		—		13		—		28		—		—		46
Doubtful	—		—		—		—		—		—		—		—		—
Total consumer loans	$	7,092	$	2,423	$	1,366	$	1,177	$	207	$	7,731	$	9,964	$	86	$	30,046
Current period gross charge-offs	$	—	$	30	$	8	$	—	$	141	$	2	$	181	$	—	$	362
Total loans:
Pass	$	463,666	$	428,771	$	375,838	$	454,076	$	279,506	$	322,219	$	342,883	$	11,309	$	2,678,268
Special Mention	—		—		872		1,665		979		1,108		—		—		4,624
Substandard	2,296		3,109		12,727		13,004		9,170		17,694		2,727		404		61,131
Doubtful	—		—		—		—		—		—		—		—		—
Total loans	$	465,962	$	431,880	$	389,437	$	468,745	$	289,655	$	341,021	$	345,610	$	11,713	$	2,744,023
Current period gross charge-offs	$	—	$	148	$	255	$	19	$	142	$	152	$	647	$	—	$	1,363

The above classifications follow regulatory guidelines and can generally be described as follows:

•Pass loans are of satisfactory quality.

•Special mention loans have an existing weakness that could cause future impairment, including the deterioration of financial ratios, past due status, questionable management capabilities and possible reduction in the collateral values.

•Substandard loans have an existing specific and well-defined weakness that may include poor liquidity and deterioration of financial performance. Such loans may be past due and related deposit accounts experiencing overdrafts. Immediate corrective action is necessary.

•Doubtful loans have specific weaknesses that are severe enough to make collection or liquidation in full highly questionable and improbable.

In addition, residential loans are classified using an inter-agency regulatory methodology that incorporates, among other factors, the extent of delinquencies and LTV ratios. These classifications were the most current available as of the dates indicated and were generally updated within the quarter.

Age analysis of past due loans as of the dates indicated are as follows.


	September 30, 2026
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current Loans		Total Loans



























Real estate loans:
One- to four-family first mortgage	$	2,157	$	323	$	4,540	$	7,020	$	462,680	$	469,700
Home equity loans and lines	269		84		460		813		90,466		91,279
Commercial real estate	531		447		18,146		19,124		1,205,153		1,224,277
Construction and land	461		—		1,784		2,245		301,490		303,735
Multi-family residential	310		—		308		618		193,516		194,134
Total real estate loans	3,728		854		25,238		29,820		2,253,305		2,283,125
Other loans:
Commercial and industrial	988		155		2,073		3,216		459,449		462,665
Consumer	229		30		1		260		28,814		29,074
Total other loans	1,217		185		2,074		3,476		488,263		491,739
Total loans	$	4,945	$	1,039	$	27,312	$	33,296	$	2,741,568	$	2,774,864


	December 31, 2025
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current Loans		Total Loans



























Real estate loans:
One- to four-family first mortgage	$	3,562	$	1,508	$	4,874	$	9,944	$	483,502	$	493,446
Home equity loans and lines	90		69		354		513		92,061		92,574
Commercial real estate	2,771		1,459		2,662		6,892		1,183,496		1,190,388
Construction and land	1,322		134		11,980		13,436		315,791		329,227
Multi-family residential	57		—		1,281		1,338		176,487		177,825
Total real estate loans	7,802		3,170		21,151		32,123		2,251,337		2,283,460
Other loans:
Commercial and industrial	156		177		1,089		1,422		429,095		430,517
Consumer	414		67		10		491		29,555		30,046
Total other loans	570		244		1,099		1,913		458,650		460,563
Total loans	$	8,372	$	3,414	$	22,250	$	34,036	$	2,709,987	$	2,744,023

There were $282,000 and $65,000 of loans greater than 90 days past due and accruing at September 30, 2026 and December 31, 2025, respectively.

The following tables summarize information pertaining to nonaccrual loans as of dates indicated.


	September 30, 2026
(dollars in thousands)		With Related Allowance		Without Related Allowance		Total
Nonaccrual loans(1):
One- to four-family first mortgage		$	6,792	$	—	$	6,792
Home equity loans and lines		513		—		513
Commercial real estate		22,354		—		22,354
Construction and land		4,808		—		4,808
Multi-family residential		679		—		679
Commercial and industrial		6,721		—		6,721
Consumer		19		—		19
Total		$	41,886	$	—	$	41,886

	December 31, 2025
(dollars in thousands)		With Related Allowance		Without Related Allowance		Total
Nonaccrual loans(1):
One- to four-family first mortgage		$	6,531	$	—	$	6,531
Home equity loans and lines		531		—		531
Commercial real estate		9,011		—		9,011
Construction and land		15,367		—		15,367
Multi-family residential		1,281		—		1,281
Commercial and industrial		1,344		—		1,344
Consumer		46		—		46
Total		$	34,111	$	—	$	34,111

(1)Nonaccrual acquired loans include PCD loans of $0 and $1,153,000 at September 30, 2026 and December 31, 2025, respectively.

All interest accrued but not received for loans placed on nonaccrual status is reversed against interest income. All payments received while on nonaccrual status are applied against the principal balance of nonaccrual loans. The Company does not recognize interest income while loans are on nonaccrual status.

Collateral Dependent Loans

The Company held loans that were individually evaluated for credit losses at September 30, 2026 and December 31, 2025 for which the repayment, on the basis of our assessment at the reporting date, is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. The ACL for these collateral-dependent loans is primarily based on the fair value of the underlying collateral at the reporting date. The following describes the types of collateral that secure collateral dependent loans:

•One- to four-family first mortgages are primarily secured by first liens on residential real estate.

•Home equity loans and lines are primarily secured by first and junior liens on residential real estate.

•Commercial real estate loans are primarily secured by office and industrial buildings, warehouses, retail shopping facilities and various special purpose properties, including hotels and restaurants.

•Construction and land loans are primarily secured by residential and commercial properties, which are under construction and/or redevelopment, and by raw land.

•Commercial and industrial loans considered collateral dependent are primarily secured by accounts receivable, inventory and equipment.

The tables below summarize collateral dependent loans and the related ACL at September 30, 2026 and December 31, 2025.


	September 30, 2026
(dollars in thousands)	Loans		ACL
One- to four-family first mortgage	$	1,008	$	112
Home equity loans and lines	—		—
Commercial real estate	3,195		135
Construction and land	—		—
Multi-family residential	—		—
Commercial and industrial	4,723		2,768
Consumer	—		—
Total	$	8,926	$	3,015

	December 31, 2025
(dollars in thousands)	Loans		ACL
One- to four-family first mortgage	$	2,304	$	411
Home equity loans and lines	—		—
Commercial real estate	2,162		362
Construction and land	520		—
Multi-family residential	603		136
Commercial and industrial	617		356
Consumer	—		—
Total	$	6,206	$	1,265

Loan Modifications Made to Borrowers Experiencing Financial Difficulty

Occasionally, the Company modifies loans to borrowers in financial distress by providing certain concessions, such as principal forgiveness, term extension, an other-than-insignificant payment delay, interest only for a specified period of time, an interest rate reduction, or a combination of such concessions. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is charged-off. The balance of loan modifications, segregated by type of modification, to borrowers experiencing financial difficulty are set forth in the tables below for the periods indicated.


	Three Months Ended September 30, 2026
(dollars in thousands)	Payment Deferral		Principal Forgiveness		Term Extension		Interest Rate Reduction		Combination Term Extension and Principal Forgiveness		Combination Term Extension and Interest Rate Reduction		Percent of Total Class of Loans
One-to four-family first mortgage	$	142	$	—	$	567	$	—	$	—	$	—	0.2	%
Home equity loans and lines	—		—		—		—		—		—		—
Commercial real estate	—		—		886		—		—		—		0.1
Construction and land	—		—		—		—		—		—		—
Multi-family residential	—		—		—		—		—		—		—
Commercial and industrial	—		—		15,724		—		—		—		3.4
Consumer	—		—		—		—		—		—		—
Total	$	142	$	—	$	17,177	$	—	$	—	$	—	0.6	%


	Three Months Ended September 30, 2025
(dollars in thousands)	Payment Deferral		Principal Forgiveness		Term Extension		Interest Rate Reduction		Combination Term Extension and Principal Forgiveness		Combination Term Extension and Interest Rate Reduction		Percent of Total Class of Loans
One-to four-family first mortgage	$	—	$	—	$	—	$	—	$	—	$	—	—	%
Home equity loans and lines	—		—		—		—		—		—		—
Commercial real estate	13,298		—		1,215		—		—		4,540		1.6
Construction and land	—		—		—		—		—		—		—
Multi-family residential	—		—		—		—		—		—		—
Commercial and industrial	—		—		4,641		—		—		1,199		1.4
Consumer	—		—		—		—		—		—		—
Total	$	13,298	$	—	$	5,856	$	—	$	—	$	5,739	0.9	%


	Nine Months Ended September 30, 2026
(dollars in thousands)	Payment Deferral		Principal Forgiveness		Term Extension		Interest Rate Reduction		Combination Term Extension and Principal Forgiveness		Combination Term Extension and Interest Rate Reduction		Percent of Total Class of Loans
One-to four-family first mortgage	$	142	$	—	$	567	$	—	$	—	$	—	0.2	%
Home equity loans and lines	—		—		—		—		—		—		—
Commercial real estate	59		—		7,097		—		—		—		0.6
Construction and land	479		—		2,724		—		—		—		1.1
Multi-family residential	—		—		371		—		—		—		0.2
Commercial and industrial	306		—		16,070		175		—		—		3.6
Consumer	—		—		—		—		—		—		—
Total	$	986	$	—	$	26,829	$	175	$	—	$	—	1.0	%


	Nine Months Ended September 30, 2025
(dollars in thousands)	Payment Deferral		Principal Forgiveness		Term Extension		Interest Rate Reduction		Combination Term Extension and Principal Forgiveness		Combination Term Extension and Interest Rate Reduction		Percent of Total Class of Loans
One-to four-family first mortgage	$	—	$	—	$	22	$	—	$	—	$	—	—	%
Home equity loans and lines	—		—		797		—		—		—		0.9
Commercial real estate	14,468		—		2,111		—		—		4,540		1.8
Construction and land	2,948		—		750		—		—		—		1.1
Multi-family residential	370		—		—		—		—		—		0.2
Commercial and industrial	—		—		4,642		—		—		1,199		1.4
Consumer	—		—		—		—		—		—		—
Total	$	17,786	$	—	$	8,322	$	—	$	—	$	5,739	1.2	%

During the nine months ended September 30, 2026, the Company had one commercial real estate loan with a balance total of $2.4 million that defaulted during the period that had previously been modified within the last 12 months. During the nine months ended September 30, 2025, the Company had one one-to four-family first mortgage loan with a balance total of $22,000 that defaulted during the period that had previously been modified within the last 12 months. Default is defined as movement to past due 90 days, foreclosure or charge-off, whichever occurs first.

The following table details the financial impacts of loan modifications made to borrowers experiencing financial difficulty for the periods presented.


	Nine Months Ended September 30, 2026				Nine Months Ended September 30, 2025
	Payment Deferral (dollars in thousands)		Weighted-Average Term Extension (in months)	Weighted-Average Interest Rate Reduction	Payment Deferral (dollars in thousands)		Weighted-Average Term Extension (in months)	Weighted-Average Interest Rate Reduction
One-to four-family first mortgage	$	15	3	—%	$	—	60	—	%
Home equity loans and lines	—		0	—%	—		24	—	%
Commercial real estate	3		7	—%	179		46	2.0	%
Construction and land	69		4	—%	165		6	—	%
Multi-family residential	—		4	—%	165		0	—	%
Commercial and industrial	84		4	1.5%	—		7	1.5	%
Consumer	—		0	—%	—		0	—	%

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The table below reflects the performance of such loans that have been modified in the last 12 months as of September 30, 2026.


(dollars in thousands)	30-89 Days Past Due		90+ Days Past Due and Accruing		Nonaccrual		Current		Total
September 30, 2026
One-to four-family first mortgage	$	142	$	—	$	567	$	—	$	709
Home equity loans and lines	—		—		—		—		$	—
Commercial real estate	59		—		1,417		5,680		$	7,156
Construction and land	—		—		2,724		479		$	3,203
Multi-family residential	—		—		371		—		$	371
Commercial and industrial	—		—		3,940		12,611		$	16,551
Consumer	—		—		—		—		$	—
Total	$	201	$	—	$	9,019	$	18,770	$	27,990

The loan modifications reported in the table above did not significantly impact the Company's ALL during 2026.

Foreclosed Assets and Other Real Estate

Foreclosed assets and other real estate ("ORE") include real property and other assets that have been acquired as a result of foreclosure, and real property no longer used in the Bank's business. Foreclosed assets and ORE totaled $11,568,000 and $1,929,000 at September 30, 2026 and December 31, 2025, respectively. These amounts are recorded in accrued interest receivable and other assets on the Consolidated Statements of Financial Condition.

The carrying amount of foreclosed residential real estate properties held at September 30, 2026 and December 31, 2025 totaled $1,954,000 and $1,786,000, respectively. Loans secured by single family residential real estate that were in the process of foreclosure at September 30, 2026 and December 31, 2025 totaled $685,000 and $3,425,000, respectively.

6. Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives

The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates.

The Company’s existing credit derivatives result from loan participation arrangements, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company occasionally enters into credit risk participation agreements with counterparty banks to accept a portion of the credit risk related to interest rate swaps. The agreements, which are typically executed in conjunction with a participation in a loan with the same customer, allow customers to execute an interest rate swap with one bank while allowing for the distribution of the credit risk among participating members. Collateral used to support the credit risk for the underlying lending relationship is also available to offset the risk of credit risk participations and customer derivative positions.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. As part of its efforts to accomplish this objective, the Company entered into certain interest rate swap agreements as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Such derivatives were used to hedge the variable cash flows associated with existing variable rate liabilities.

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income ("AOCI") and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be

reclassified to interest expense as interest payments are made on the Company’s variable rate liabilities. During the next twelve months, the Company estimates that an additional $819,000 will be reclassified as additional interest income.

Non-designated Hedges

Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings through other income.

Fair Values of Derivative Instruments

The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statement of Financial Condition as of September 30, 2026 and December 31, 2025.


	September 30, 2026
	Derivative Assets(1)				Derivative Liabilities(1)
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value
Derivatives designated as hedging instruments:
Interest rate swaps - variable rate liabilities	$	60,000	$	688	$	—	$	—

Derivatives not designated as hedging instruments:
Interest rate contracts	$	33,143	$	563	$	33,143	$	564
Risk participation agreements	4,833		2		11,096		—

Netting adjustments			—				—


Net derivative amounts			$	1,253			$	564


	December 31, 2025
	Derivative Assets(1)				Derivative Liabilities(1)
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value
Derivatives designated as hedging instruments:
Interest rate swaps - variable rate liabilities	$	60,000	$	1,056	$	20,000	$	19

Derivatives not designated as hedging instruments:
Interest rate contracts	9,000		255		9,000		275
Risk participation agreements	—		—		11,293		—

Netting adjustments			—				—


Net derivative amounts			$	1,311			$	294

(1)Derivative assets and liabilities are reported at fair value in accrued interest receivable and other assets and accrued interest payable and other liabilities, respectively, in the Consolidated Statements of Financial Condition.

At September 30, 2026 and December 31, 2025, accumulated unrealized gains, net of taxes, on derivative instruments totaled $489,000 and $715,000, respectively.

Effect of Cash Flow Hedge Accounting on AOCI and the Consolidated Statements of Income

The tables below present the effect of cash flow hedge accounting on AOCI and the Consolidated Statements of Income as of September 30, 2026 and September 30, 2025.


	Three Months Ended September 30, 2026
	Amount of Gain Recognized in OCI				Location of Gain Reclassified from AOCI into Income	Amount of Gain Reclassified from AOCI into Income
(dollars in thousands)	Total		Included Component			Total		Included Component
Derivatives in cash flows hedging relationships:
Interest rate swaps - variable rate liabilities	$	105	$	105	Interest income	$	201	$	201


	Nine Months Ended September 30, 2026

	Amount of Gain Recognized in OCI				Location of Gain Reclassified from AOCI into Income	Amount of Gain Reclassified from AOCI into Income
(dollars in thousands)	Total		Included Component			Total		Included Component
Derivatives in cash flows hedging relationships:
Interest rate swaps - variable rate liabilities	$	505	$	505	Interest income	$	791	$	791


	Three Months Ended September 30, 2025
	Amount of Gain Recognized in OCI				Location of Gain Reclassified from AOCI into Income	Amount of Gain Reclassified from AOCI into Income
(dollars in thousands)	Total		Included Component			Total		Included Component
Derivatives in cash flows hedging relationships:
Interest rate swaps - variable rate liabilities	$	120	$	120	Interest income	$	514	$	514


	Nine Months Ended September 30, 2025
	Amount of Loss Recognized in OCI				Location of Gain Reclassified from AOCI into Income	Amount of Gain Reclassified from AOCI into Income
(dollars in thousands)	Total		Included Component			Total		Included Component
Derivatives in cash flows hedging relationships:
Interest rate swaps - variable rate liabilities	$	(203)	$	(203)	Interest income	$	1,534	$	1,534

Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of Income

The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements of Income as of September 30, 2026 and September 30, 2025.


(dollars in thousands)	Location of Income Recognized on Non-designated Hedges	Three Months Ended September 30, 2026		Nine Months Ended September 30, 2026
Effects of non-designated hedges
Interest rate contracts	Other noninterest income	$	14	$	19
Risk participation agreements	Other noninterest expense	$	—	$	—

(dollars in thousands)	Location of Income Recognized on Non-designated Hedges	Three Months Ended September 30, 2025		Nine Months Ended September 30, 2025
Effects of non-designated hedges
Interest rate contracts	Other noninterest expense	$	3	$	(12)
Risk participation agreements	Other noninterest expense	$	—	$	—

Derivative fee income from non-designated hedges totaled $204,000 and $204,000 for the three and nine months ended September 30, 2026, respectively. There was no derivative fee income from non-designated hedges for the three and nine months ended September 30, 2025.

Credit-risk-related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision to the effect that, if the Company (either) defaults (or is capable of being declared in default) on any of its indebtedness, then the Company could also be declared in default on its derivative obligations.

The Company has agreements with certain of its derivative counterparties that contain a provision to the effect that, if the Company fails to maintain its status as a well or adequately capitalized institution, then the Company could be required to post additional collateral.

As of September 30, 2026, there were no derivatives with credit-risk-related contingent features in a net liability position. Such derivatives are measured at fair value, which includes accrued interest but excludes any adjustment for nonperformance risk. If the Company had breached any provisions at September 30, 2026, it would not have been required to settle any obligations under the agreements since the termination value was $0.

7. Long-term Debt and Borrowings

Subordinated Debt

On June 30, 2022, the Company issued $55,000,000 in aggregate principal amount of its 5.75% Fixed-to-Floating Rate Subordinated Notes (the "Notes") due 2032. The Notes were issued at a price equal to 100% of the aggregate principal amount. The Notes have a stated maturity date of June 30, 2032 and bear interest at a fixed rate of 5.75% per year from and including the issue date to but excluding June 30, 2027. From June 30, 2027, the Notes will bear interest at a floating rate equal to the then current three-month term secured overnight financing rate (“SOFR”), plus 282 basis points ("bps"). The Notes may be redeemed by the Company, in whole or in part, on or after June 30, 2027. The Notes are intended to qualify as Tier 2 capital for regulatory purposes.

The carrying value of the Notes was $54,838,000 and $54,675,000 at September 30, 2026 and December 31, 2025, respectively. The Notes were recorded net of issuance costs which is being amortized using the straight-line method over five years.

Federal Home Loan Bank Advances

The average balance of total FHLB advances was $0 for the third quarter of 2026, a decrease of $39,445,000 compared to the third quarter of 2025.

The Company had no short-term FHLB advances as of September 30, 2026 or December 31, 2025. At September 30, 2026 and December 31, 2025, the Company had $0 and $3,024,000 in long-term FHLB advances, respectively, and $1,339,761,000 and $1,256,621,000 in additional FHLB advances available, respectively.

The following table summarizes long-term FHLB advances as of September 30, 2026 and December 31, 2025.


	September 30, 2026				December 31, 2025
(dollars in thousands)	Amount		Weighted Average Rate		Amount		Weighted Average Rate
Fixed rate advances maturing in:
2026	$	—	—	%	$	3,024	1.53	%


Total FHLB advances	$	—	—	%	$	3,024	1.53	%

8. Fair Value Measurements and Disclosures

The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The Company groups assets and liabilities measured or disclosed at fair value in three levels as required by ASC 820, Fair Value Measurements and Disclosures. Under this guidance, fair value should be based on the assumptions market participants would use when pricing the asset or liability and establishes a fair value hierarchy that prioritizes the inputs used to develop those assumptions and measure fair value. The hierarchy requires companies to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels used to measure fair value are as follows:

•Level 1 – Quoted prices in active markets for identical assets or liabilities.

•Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

•Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

An asset’s or liability’s categorization within the fair value hierarchy is based upon the lowest level that is significant to the fair value measurement. Management reviews and updates the fair value hierarchy classifications of the Company’s assets and liabilities quarterly.

Recurring Basis

Investment Securities Available for Sale

Fair values of investment securities available for sale are primarily measured using information from a third-party pricing service. This pricing service provides pricing information by utilizing pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities bids, offers and other reference data from market research publications. If quoted prices are available in an active market, investment securities are classified as Level 1 measurements. If quoted prices are not available in an active market, fair values are estimated primarily by the use of pricing models. Level 2 investment securities are primarily comprised of mortgage-backed securities issued by government agencies and U.S. government-sponsored enterprises. In certain cases, where there is limited or less transparent information provided by the Company’s third-party pricing service, fair value is estimated by the use of secondary pricing services or through the use of non-binding third-party broker quotes. Investment securities are classified within Level 3 when little or no market activity supports the fair value.

Management primarily identifies investment securities which may have traded in illiquid or inactive markets, by identifying instances of a significant decrease in the volume and frequency of trades, relative to historical levels, as well as instances of a significant widening of the bid-ask spread in the brokered markets. Investment securities that are deemed to have been trading

in illiquid or inactive markets may require the use of significant unobservable inputs. For example, management may use quoted prices for similar investment securities in the absence of a liquid and active market for the investment securities being valued. As of September 30, 2026, management did not make adjustments to prices provided by the third-party pricing service as a result of illiquid or inactive markets.

Derivative Assets and Liabilities

Derivative assets and liabilities are reported at fair value in accrued interest receivable and other assets and accrued interest payable and other liabilities, respectively, in the Consolidated Statements of Financial Condition. The fair value of these derivative financial instruments is obtained from a third-party pricing service that uses widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. The analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company has determined that its derivative valuations are classified in Level 2 of the fair value hierarchy.

The following tables present the balances of assets measured for fair value on a recurring basis as of September 30, 2026 and December 31, 2025.


(dollars in thousands)	September 30, 2026		Level 1		Level 2		Level 3
Assets
Available for sale securities:
U.S. agency mortgage-backed	$	314,724	$	—	$	314,724	$	—
Collateralized mortgage obligations	41,813		—		41,813		—
Municipal bonds	45,116		—		45,116		—
U.S. government agency	8,942		—		8,942		—
Corporate bonds	5,000		—		5,000		—
Total	$	415,595	$	—	$	415,595	$	—

Derivative assets	$	1,253	$	—	$	1,253	$	—
Total	$	416,848	$	—	$	416,848	$	—

Liabilities
Derivative liabilities	$	564	$	—	$	564	$	—


(dollars in thousands)	December 31, 2025		Level 1		Level 2		Level 3
Assets
Available for sale securities:
U.S. agency mortgage-backed	$	267,650	$	—	$	267,650	$	—
Collateralized mortgage obligations	60,327		—		60,327		—
Municipal bonds	48,147		—		48,147		—
U.S. government agency	11,003		—		11,003		—
Corporate bonds	4,321		—		4,321		—
Total	$	391,448	$	—	$	391,448	$	—

Derivative assets	$	1,311	$	—	$	1,311	$	—
Total	$	392,759	$	—	$	392,759	$	—

Liabilities
Derivative liabilities	$	294	$	—	$	294	$	—

Nonrecurring Basis

The Company records loans individually evaluated for credit losses at fair value on a nonrecurring basis. Fair value is measured at the fair value of the collateral for collateral-dependent loans. For non-collateral-dependent loans, fair value is measured by present valuing expected future cash flows. Loans individually evaluated are classified as Level 3 assets when measured using appraisals from third parties of the collateral less any prior liens and when there is no observable market price.

Foreclosed assets and ORE are also recorded at fair value on a nonrecurring basis. Foreclosed assets are initially recorded at fair value less estimated costs to sell. ORE is recorded at the lower of its net book value or fair value at the date of transfer to ORE. The fair value of foreclosed assets and ORE is based on property appraisals and an analysis of similar properties available. As such, the Company classifies foreclosed and ORE assets as Level 3 assets.

The Company has segregated all financial assets that are measured at fair value on a nonrecurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date as reflected in the table below.


			Fair Value Measurements Using
(dollars in thousands)	September 30, 2026		Level 1		Level 2		Level 3
Assets
Loans individually evaluated	$	5,911	$	—	$	—	$	5,911
Foreclosed assets and ORE	11,568		—		—		11,568
Total	$	17,479	$	—	$	—	$	17,479

			Fair Value Measurements Using
(dollars in thousands)	December 31, 2025		Level 1		Level 2		Level 3
Assets
Loans individually evaluated	$	4,941	$	—	$	—	$	4,941
Foreclosed assets and ORE	1,929		—		—		1,929
Total	$	6,870	$	—	$	—	$	6,870

The following table shows significant unobservable inputs used in the fair value measurement of Level 3 assets.

(dollars in thousands)

Fair Value

Valuation Technique

Unobservable Inputs

Range of Discounts

Weighted Average Discount

September 30, 2026

Loans individually evaluated

5,911

Third party appraisals and discounted cash flows

Collateral values, market discounts and estimated costs to sell

9% - 100%

34%

Foreclosed assets and ORE

11,568

Third party appraisals, sales contracts, broker price opinions

Collateral values, market discounts and estimated costs to sell

6% - 55%

13%

(dollars in thousands)

Fair Value

Valuation Technique

Unobservable Inputs

Range of
Discounts

Weighted Average Discount

December 31, 2025

Loans individually evaluated

4,941

Third party appraisals and discounted cash flows

Collateral values, market discounts and estimated costs to sell

0% - 100%

20%

Foreclosed assets and ORE

1,929

Third party appraisals, sales contracts, broker price opinions

Collateral values, market discounts and estimated costs to sell

0% - 43%

22%

ASC 820, Fair Value Measurements and Disclosures, requires the disclosure of each class of financial instruments for which it is practicable to estimate. The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. ASC 820 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial statements. These estimates are subjective in nature, involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates included herein are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the fair value of assets and liabilities that are not required to be recorded or disclosed at fair value like premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

Methods and assumptions used to estimate fair value of each class of financial instruments for which it is practicable to estimate fair value are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. The fair value of subordinated debt is estimated based on current market rates on similar debt in the market. The Company classifies this debt in Level 2 of the fair value table. There have been no other material changes from the fair value estimate methods and assumptions previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

The following table presents estimated fair values of the Company’s financial instruments as of the dates indicated.


			Fair Value Measurements at September 30, 2026
(dollars in thousands)	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	179,053	$	179,053	$	179,053	$	—	$	—

Investment securities available for sale	415,595		415,595		—		415,595		—
Investment securities held to maturity	—		—		—		—		—
Mortgage loans held for sale	774		774		—		774		—
Loans, net	2,740,437		2,724,071		—		2,718,160		5,911


Cash surrender value of BOLI	50,426		50,426		50,426		—		—
Derivative assets(1)	1,253		1,253		—		1,253		—
Financial Liabilities
Deposits	$	3,053,500	$	3,051,433	$	2,303,510	$	747,923	$	—

Subordinated debt, net of issuance cost	54,838		54,460		—		54,460		—


Derivative liabilities(1)	564		564		—		564		—


			Fair Value Measurements at December 31, 2025
(dollars in thousands)	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	141,605	$	141,605	$	141,605	$	—	$	—

Investment securities available for sale	391,448		391,448		—		391,448		—
Investment securities held to maturity	1,065		1,066		—		1,066		—
Mortgage loans held for sale	1,558		1,558		—		1,558		—
Loans, net	2,710,881		2,728,477		—		2,723,536		4,941
Cash surrender value of BOLI	49,557		49,557		49,557		—		—
Derivative assets(1)	1,311		1,311		—		1,311		—
Financial Liabilities
Deposits	$	2,972,806	$	2,971,389	$	2,167,183	$	804,206	$	—

Subordinated debt, net of issuance cost	54,675		54,520		—		54,520		—

Long-term FHLB advances	3,024		3,012		—		3,012		—
Derivative liabilities(1)	294		294		—		294		—


Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The purpose of this discussion and analysis is to focus on significant changes in the financial condition of the Company and the Bank from December 31, 2025 through September 30, 2026 and on its results of operations for the three and nine months ended September 30, 2026 and 2025. This discussion and analysis is intended to highlight and supplement information presented elsewhere in this quarterly report on Form 10-Q, particularly the consolidated financial statements and related notes appearing in Item 1.

Forward-Looking Statements

To the extent that statements in this Form 10-Q relate to future plans, objectives, financial results or performance of the Company or Bank, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which are based on management’s current information, estimates and assumptions and the current economic environment, are generally identified by the use of words such as “plan”, “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions, or by future or conditional terms such as “will”, “would”, “should”, “could”, “may”, “likely”, “probably”, or “possibly”. The Company’s or the Bank’s actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties. Certain risks, uncertainties and other factors, including those set forth under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2025 and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, may cause actual results to differ materially from the results discussed in the forward-looking statements appearing in this discussion and analysis and may include factors such as, but not limited to, our lending activities, our use of municipal deposits as a source of funds, credit quality and risk, industry and technological changes, cyber incidents or other failures, disruptions or security breaches, interest rates, commercial and residential real estate values, economic and market conditions in the markets we operate in or generally in the United States, funds availability, accounting estimates and risk management processes, legislative and regulatory changes, the fair values of our acquired assets and our investment securities portfolio, business strategy execution, key personnel, competition, mortgage markets, fraud,

environmental liability and severe weather, natural disasters, acts of war or terrorism or other external events. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

EXECUTIVE OVERVIEW

The Company reported net income for the third quarter of 2026 of $10.1 million, or $1.28 diluted EPS, down $2.3 million, or 18.3%, compared to the third quarter of 2025. Net income for the third quarter of 2025 totaled $12.4 million, or $1.59 diluted EPS. For the nine months ended September 30, 2026, the Company reported net income of $33.1 million, or $4.21 diluted EPS, down $1.6 million from $34.7 million, or $4.41 diluted EPS, reported for the nine months ended September 30, 2025.

Key components of the Company’s performance during the three and nine months ended September 30, 2026 include:

•Assets increased $103.7 million, or 3.0%, from December 31, 2025 to $3.6 billion at September 30, 2026.

•Total loans were $2.8 billion at September 30, 2026, up $30.8 million, or 1.1%, from December 31, 2025.

•During the three and nine months ended September 30, 2026, the Company recorded provisions for credit losses of $1.0 million and $2.7 million, respectively. The provision for the three months ended September 30, 2026 was primarily attributable to increased reserves on individually analyzed loans, partially offset by the reduction in total loans, while the provision for the nine months ended September 30, 2026 was driven by increased reserves on individually analyzed loans, loan growth, and net charge-offs. During the three and nine months ended September 30, 2025, the Company reversed $229,000 and provisioned $654,000, respectively, to the ALL.

•The ALL totaled $34.4 million, or 1.24% of total loans, at September 30, 2026 compared to $33.1 million, or 1.21% of total loans, at December 31, 2025. The ACL, which is comprised of the ALL plus the allowance for unfunded lending commitments, totaled $36.1 million, or 1.30% of total loans, at September 30, 2026 compared to $34.8 million, or 1.27% of total loans, at December 31, 2025.

•Nonperforming assets ("NPAs") increased $17.6 million, or 48.8%, from $36.1 million, or 1.03% of total assets, at December 31, 2025 to $53.7 million, or 1.49% of total assets, at September 30, 2026. The increase in NPAs during the nine months ended September 30, 2026 was primarily attributable to multiple loan relationships (with the largest relationship totaling $7.3 million) moving to nonaccrual status during 2026, which was partially offset by payoffs and paydowns.

•Total deposits amounted to $3.1 billion at September 30, 2026, an increase of $80.7 million, or 2.7%, from December 31, 2025.

•The net interest margin was 4.19% and 4.20% for the three and nine months ended September 30, 2026, respectively, up 9 bps and 18 bps from the three and nine months ended September 30, 2025. The increase was primarily due to a decline in funding costs.

•The average rate paid on total interest-bearing deposits was 2.33% and 2.30% for the three and nine months ended September 30, 2026, respectively, down 24 bps and 24 bps from the three and nine months ended September 30, 2025.

•Total interest expense was $13.8 million and $40.5 million for the three and nine months ended September 30, 2026, respectively, down $1.3 million, or 8.5%, and down $5.3 million, or 11.7%, from the three and nine months ended September 30, 2025.

•Noninterest income for the third quarter of 2026 was $4.2 million, up $463,000, or 12.4%, compared to the third quarter of 2025, primarily due to increases in other income (up $215,000), bank card fees (up $127,000), and service fees and charges (up $104,000). For the nine months ended September 30, 2026, noninterest income was up $395,000, or 3.4%, from the comparable period in 2025 primarily due to increases in service fees and charges (up $294,000) and bank card fees (up $111,000).

•Noninterest expense for the third quarter of 2026 was $26.3 million, up $3.8 million, or 16.8%, compared to the third quarter of 2025, primarily due to increases in foreclosed assets, net (up $1.7 million primarily for write downs on foreclosed assets due to updated values or contracts), compensation and benefits (up $1.6 million), other expenses (up $356,000), and data processing and communication (up $278,000), which were partially offset by a decrease in occupancy (down $81,000). For the nine months ended September 30, 2026, noninterest expense was up $7.3 million, or 11.0%, from the comparable period in 2025 primarily due to an increase in compensation and benefits (up $4.4 million), foreclosed assets, net (up $1.5 million primarily for write downs on foreclosed assets due to updated values or contracts), the absence of a reversal to the ACL on unfunded commitments ($970,000), and other expenses (up $697,000), partially offset by a decrease in franchise and shares tax (down $222,000).

FINANCIAL CONDITION

Loans, Allowance for Credit Losses and Asset Quality

Loans

Total loans at September 30, 2026 were $2.8 billion, up $30.8 million, or 1.1%, from December 31, 2025.

The following table summarizes the composition of the Company’s loan portfolio as of the dates indicated.


(dollars in thousands)	September 30, 2026		December 31, 2025		Increase/(Decrease)
Real estate loans:
One-to four-family first mortgage	$	469,700	$	493,446	$	(23,746)	(4.8)	%
Home equity loans and lines	91,279		92,574		(1,295)		(1.4)
Commercial real estate	1,224,277		1,190,388		33,889		2.8
Construction and land	303,735		329,227		(25,492)		(7.7)
Multi-family residential	194,134		177,825		16,309		9.2
Total real estate loans	2,283,125		2,283,460		(335)		—	%
Other loans:
Commercial and industrial	462,665		430,517		32,148		7.5
Consumer	29,074		30,046		(972)		(3.2)
Total other loans	491,739		460,563		31,176		6.8
Total loans	$	2,774,864	$	2,744,023	$	30,841	1.1	%

Allowance for Credit Losses

The ACL which equals the sum of the ALL and the ACL on unfunded lending commitments, is established through provisions for credit losses. Management recalculates the ACL at least quarterly to reassess the estimate of credit losses for the total portfolio at the relevant reporting date. Under ASC Topic 326, the ACL is measured on a pool basis when similar risk characteristics exist. For each pool of loans, management also evaluates and applies qualitative adjustments to the calculated ACL based on several factors, including, but not limited to, changes in current and expected future economic conditions, changes in industry experience and industry loan concentrations, changes in the volume and severity of NPAs, changes in lending policies and personnel and changes in the competitive and regulatory environment of the banking industry. Loans that do not share similar risk characteristics are individually evaluated and are excluded from the pooled loan analysis.

The ACL policy described above is supplemented by periodic reviews and validations performed by independent loan reviewers. The results of the reviews are reported to the Audit Committee of the Board of Directors. The establishment of the ACL is significantly affected by management judgment. There is likelihood that different amounts would be reported under different conditions or assumptions. Federal regulatory agencies, as an integral part of their examination process, periodically review our ACL. Such agencies may require management to make additional provisions for estimated losses based upon judgments different from those of management.

We continue to monitor and modify our ACL as conditions warrant. No assurance can be given that our level of ACL will cover all of the losses on our loans or that future adjustments to the ACL will not be necessary if economic and other conditions differ substantially from the assumptions used by management to determine the current level of the ACL.

At September 30, 2026, the ALL totaled $34.4 million, or 1.24% of total loans, up $1.3 million from $33.1 million, or 1.21% of total loans, at December 31, 2025. During the nine months ended September 30, 2026, the Company provisioned $2.7 million to the ALL primarily due to increased reserves on individually analyzed loans, loan growth, and net charge-offs. Net loan charge-offs totaled $1.4 million for the nine months ended September 30, 2026.

Asset Quality

One of management’s key objectives has been, and continues to be, maintaining a high level of asset quality. In addition to maintaining credit standards for new loan originations, we proactively monitor loans and collection and workout processes of delinquent or problem loans. When a borrower fails to make a scheduled payment, we attempt to cure the deficiency by making

personal contact with the borrower. Initial contacts are generally made within 10 days after the date payment is due. In most cases, deficiencies are promptly resolved. If the delinquency continues, late charges are assessed and additional efforts are made to collect the deficiency. All loans which are designated as “special mention,” classified or which are delinquent 90 days or more are reported to the Board of Directors of the Bank monthly. For loans where the collection of principal or interest payments is doubtful, the accrual of interest income ceases. It is our policy, with certain limited exceptions, to discontinue accruing interest and reverse any interest accrued on any loan which is 90 days or more past due. On occasion, this action may be taken earlier if the financial condition of the borrower raises significant concern with regard to their ability to service the debt in accordance with the terms of the loan agreement. Interest income is not accrued on these loans until the borrower’s financial condition and payment record demonstrate an ability to service the debt.

Under our allowance policy, credit losses are measured on a pool basis when similar risk characteristics exist. Loans that do not share similar risk characteristics are individually evaluated for credit losses and are excluded from the pooled loan analysis. At least quarterly, management evaluates the loan portfolio to determine which loans should be individually evaluated for credit losses. Management's evaluation involves an analysis of larger (i.e., credit relationships with aggregate balances of $500,000 or greater) commercial real estate loans, multi-family residential loans, construction and land loans and commercial and industrial loans. Third party property valuations are obtained at the time of origination for real estate secured loans. When a determination is made that a loan has deteriorated to the point of becoming a problem loan, updated valuations may be ordered to determine if a short-fall exists, which may lead to a recommendation for partial charge off or appropriate allowance allocation. Property valuations are ordered through, and are reviewed by, an appraisal officer at the Bank. The Company typically orders an “as is” valuation for collateral property if a loan is in a criticized loan classification. Loans individually evaluated for credit losses are reported to the Board of Directors monthly.

At September 30, 2026 and December 31, 2025, loans identified as credit deteriorated loans and individually evaluated for expected losses were $8.9 million and $6.2 million, respectively. The following tables provide a summary of loans individually evaluated for credit losses as of the dates indicated.


	September 30, 2026
(dollars in thousands)	Recorded Investment		Allowance for Loan Losses		Allowance to Total Loans
Loans Individually Evaluated
One- to four-family first mortgage	$	1,008	$	112	11.11	%
Home equity loans and lines	—		—		—
Commercial real estate	3,195		135		4.23
Construction and land	—		—		—
Multi-family residential	—		—		—
Commercial and industrial	4,723		2,768		58.61
Consumer	—		—		—
Total	$	8,926	$	3,015	33.78	%

	December 31, 2025
(dollars in thousands)	Recorded Investment		Allowance for Loan Losses		Allowance to Total Loans
Loans Individually Evaluated
One- to four-family first mortgage	$	2,304	$	411	17.84	%
Home equity loans and lines	—		—		—
Commercial real estate	2,162		362		16.74
Construction and land	520		—		—
Multi-family residential	603		136		22.55
Commercial and industrial	617		356		57.70
Consumer	—		—		—
Total	$	6,206	$	1,265	20.38	%

Federal regulations and our policies require that we utilize an internal asset classification system as a means of reporting problem and potential problem assets. We have incorporated an internal asset classification system, substantially consistent with Federal banking regulations, as a part of our credit monitoring system. Federal banking regulations set forth a classification scheme for problem and potential problem assets as “substandard,” “doubtful” or “loss” assets. An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” assets include those characterized by the “distinct possibility” that the insured institution will sustain “some loss” if the deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions and values, “highly questionable and improbable.” Assets classified as “loss” are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted.

At September 30, 2026 and December 31, 2025, loans classified as substandard totaled $82.9 million and $61.1 million, respectively. There were no assets classified as doubtful at either date. For additional information, refer to Note 5 to the Consolidated Financial Statements.

The following tables provide a summary of loans classified as special mention and substandard as of the dates indicated.


(dollars in thousands)	September 30, 2026		December 31, 2025		Increase/(Decrease)
Special Mention Loans
One- to four-family first mortgage	$	—	$	—	$	—	—	%
Home equity loans and lines	—		811		(811)		(100.0)
Commercial real estate	14,422		2,947		11,475		389.4
Construction and land	1,814		866		948		109.5
Multi-family residential	1,304		—		1,304		100.0
Commercial and industrial	4,643		—		4,643		100.0
Consumer	—		—		—		—
Total special mention loans	$	22,183	$	4,624	$	17,559	379.7	%


(dollars in thousands)	September 30, 2026		December 31, 2025		Increase/(Decrease)
Substandard Loans
One- to four-family first mortgage	$	7,249	$	6,993	$	256	3.7	%
Home equity loans and lines	513		531		(18)		(3.4)
Commercial real estate	39,124		32,344		6,780		21.0
Construction and land	13,247		15,367		(2,120)		(13.8)
Multi-family residential	988		1,598		(610)		(38.2)
Commercial and industrial	21,721		4,252		17,469		410.8
Consumer	19		46		(27)		(58.7)
Total substandard loans	$	82,861	$	61,131	$	21,730	35.5	%

Total nonperforming loans increased by $8.0 million, or 23.4%, to $42.2 million at September 30, 2026, compared to $34.2 million at December 31, 2025. The increase was primarily attributable to multiple loan relationships (with the largest relationship totaling $7.3 million) moving to nonaccrual status during 2026, which was partially offset primarily by six loan relationships with an aggregate outstanding balance of $15.3 million at September 30, 2026 that transferred to foreclosed assets, along with payoffs and paydowns.

A bank’s determination as to the classification of its assets and the amount of its valuation allowances is subject to review by Federal bank regulators which can order the establishment of additional general or specific loss allowances. The Federal banking agencies have adopted an interagency policy statement on the allowance for loan and lease losses. The policy statement provides guidance for financial institutions on both the responsibilities of management for the assessment and establishment of

allowances and guidance for banking agency examiners to use in determining the adequacy of general valuation guidelines. Generally, the policy statement recommends that institutions have effective systems and controls to identify, monitor and address asset quality problems; that management analyze all significant factors that affect the collectability of the portfolio in a reasonable manner; and that management establish acceptable allowance evaluation processes that meet the objectives set forth in the policy statement. Management maintains, based on current and forecasted information, an ACL that reflects a current estimate of expected credit losses for the estimated life of the loan portfolio at reporting periods subsequent to the adoption date. For all reporting periods, actual losses are uncertain and dependent upon future events and, as such, further additions to the level of ACL may become necessary.

The following table sets forth the composition of the Company’s NPAs as of the dates indicated.



(dollars in thousands)	September 30, 2026			December 31, 2025
Nonaccrual loans:(1)
Real estate loans:
One- to four-family first mortgage	$	6,792		$	6,531
Home equity loans and lines	513			531
Commercial real estate	22,354			9,011
Construction and land	4,808			15,367
Multi-family residential	679			1,281
Other loans:
Commercial and industrial	6,721			1,344
Consumer	19			46
Total nonaccrual loans	41,886			34,111
Accruing loans 90 days or more past due	282			65
Total nonperforming loans	42,168			34,176
Foreclosed assets and ORE	11,568			1,929
Total NPAs	53,736			36,105



Nonperforming loans to total loans	1.52		%	1.25		%
Nonperforming loans to total assets	1.17		%	0.98		%
NPAs to total assets	1.49		%	1.03		%

(1)Nonaccrual acquired loans include PCD loans of $0.0 million and $1.2 million at September 30, 2026 and December 31, 2025, respectively.

Foreclosed assets and ORE includes real property and other assets that have been acquired as a result of foreclosure, and real property no longer used in the Bank's business. Foreclosed assets and ORE are classified as such until sold or disposed. Foreclosed assets are recorded at fair value less estimated selling costs based on third party property valuations which are obtained at the time the asset is repossessed and periodically until the property is liquidated. ORE is recorded at the lower of its net book value or fair value at the date of transfer to ORE. Foreclosed assets and ORE holding costs are charged to expense. Gains and losses on the sale of foreclosed assets and ORE are charged to operations, as incurred. Costs associated with acquiring and improving a foreclosed property or ORE are capitalized to the extent that the carrying value does not exceed fair value less estimated selling costs.

Investment Securities

The Company’s investment securities portfolio totaled $415.6 million as of September 30, 2026, an increase of $23.1 million, or 5.9%, from December 31, 2025. During the years 2026 and 2025, the Company had no gains or losses related to the sale of available for sale investment securities. At September 30, 2026, the Company had a net unrealized loss on its available for sale investment securities portfolio of $36.5 million, compared to a net unrealized loss of $23.4 million at December 31, 2025. The Company’s investment securities portfolio had an effective duration of 3.6 years and 3.3 years at September 30, 2026 and December 31, 2025, respectively.

The following table summarizes activity in the Company’s investment securities portfolio during the nine months ended September 30, 2026.


(dollars in thousands)	Available for Sale		Held to Maturity
Balance, December 31, 2025	$	391,448	$	1,065
Purchases	101,558		—
Sales	—		—
Principal maturities, prepayments and calls	(64,695)		(1,065)
Amortization of premiums and accretion of discounts	300		—
Decrease in market value	(13,016)		—
Balance, September 30, 2026	$	415,595	$	—

Funding Sources

Deposits

Deposits totaled $3.1 billion at September 30, 2026, an increase of $80.7 million, or 2.7%, compared to December 31, 2025. The following table summarizes the changes in the Company’s deposits from December 31, 2025 to September 30, 2026.


(dollars in thousands)	September 30, 2026		December 31, 2025		Increase/(Decrease)
Demand deposit	$	827,696	$	792,951	$	34,745	4.4	%
Savings	192,180		201,265		(9,085)		(4.5)
Money market	585,742		518,740		67,002		12.9
Negotiable Order of Withdrawal ("NOW")	697,892		654,227		43,665		6.7
Certificates of deposit	749,990		805,623		(55,633)		(6.9)
Total deposits	$	3,053,500	$	2,972,806	$	80,694	2.7	%

The average rate paid on interest-bearing deposits was 2.33% for the third quarter of 2026, down 24 bps compared to the third quarter of 2025. At September 30, 2026, certificates of deposit maturing within the next 12 months totaled $729.4 million.

The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with Federal Deposit Insurance Corporation ("FDIC") regulations) were $933.7 million at September 30, 2026 and $885.4 million at December 31, 2025. Public funds in excess of the FDIC insurance limits are fully collateralized.

Subordinated Debt

On June 30, 2022, the Company issued $55.0 million in aggregate principal amount of its 5.75% Fixed-to-Floating Rate Subordinated Notes due 2032 (the "Notes"). The Notes were issued at a price equal to 100% of the aggregate principal amount. The Notes have a stated maturity date of June 30, 2032 and bear interest at a fixed rate of 5.75% per year from and including the issue date to but excluding June 30, 2027. From June 30, 2027, the Notes will bear interest at a floating rate equal to the then current three-month term SOFR, plus 282 bps. The Notes may be redeemed by the Company, in whole or in part, on or after June 30, 2027. The Notes are intended to qualify as Tier 2 capital for regulatory purposes.

The carrying value of the Notes was $54.8 million and $54.7 million at September 30, 2026 and December 31, 2025, respectively. The subordinated debt was recorded net of issuance costs and amortized using the straight-line method over five years.

Federal Home Loan Bank Advances

The average balance of total FHLB advances was $0.0 million for the third quarter of 2026, down $39.4 million compared to the third quarter of 2025.

The Company had no short-term FHLB advances as of September 30, 2026 and December 31, 2025. At September 30, 2026 and December 31, 2025, the Company had $0.0 million and $3.0 million in long-term FHLB advances, respectively, and $1.3 billion and $1.3 billion in additional FHLB advances available, respectively.

Shareholders’ Equity

Total shareholders’ equity increased $18.0 million, or 4.1%, from $435.1 million at December 31, 2025 to $453.1 million at September 30, 2026. Shareholders' equity increased primarily due to net income of $33.1 million, which was partially offset by an increase in the accumulated other comprehensive loss on available for sale investment securities and cash dividends paid on the common stock during the nine months ended September 30, 2026.

At September 30, 2026, the Company and the Bank had regulatory capital amounts that were well in excess of regulatory requirements. The following table presents actual and required capital ratios for the Company and the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of September 30, 2026 based on the required capital levels as of January 1, 2019 when the Basel III Capital Rules were fully phased-in. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.


	Actual				Minimum Capital Required – Basel III Fully Phased-In				To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Company:
Tier 1 risk-based capital	$	398,102	13.26	%	$	255,177	8.50	%	N/A		N/A
Total risk-based capital	488,992		16.29		315,219		10.50		N/A		N/A
Tier 1 leverage capital	398,102		11.27		141,302		4.00		N/A		N/A

Bank:
Common equity Tier 1 capital (to risk-weighted assets)	$	435,628	14.51	%	$	210,137	7.00	%	$	195,128	6.50	%
Tier 1 risk-based capital	435,628		14.51		255,167		8.50		240,157		8.00
Total risk-based capital	471,680		15.71		315,206		10.50		300,196		10.00
Tier 1 leverage capital	435,628		12.33		141,301		4.00		176,626		5.00

LIQUIDITY AND ASSET/LIABILITY MANAGEMENT

Liquidity Management

Liquidity management encompasses our ability to ensure that funds are available to meet the cash flow requirements of depositors and borrowers, while also ensuring adequate cash flow exists to meet the Company’s needs, including operating, strategic and capital. The Company develops its liquidity management strategies as part of its overall asset/liability management process. Our primary sources of funds are from deposits, amortization of loans, loan prepayments and the maturity of loans, investment securities and other investments, and other funds provided from operations. While scheduled payments from the amortization of loans and investment securities and maturing investment securities are relatively predictable sources of funds, deposit flows and loan prepayments can be greatly influenced by general interest rates, economic conditions and competition. The Company also maintains excess funds in short-term, interest-bearing assets that provide additional liquidity.

The Company uses its liquidity to fund existing and future loan commitments, to fund maturing certificates of deposit and demand deposit withdrawals, to invest in other interest-earning assets and to meet operating expenses. At September 30, 2026, certificates of deposit maturing within the next 12 months totaled $729.4 million. Based upon historical experience, the Company anticipates that a significant portion of the maturing certificates of deposit will be redeposited with us.

In addition to cash flow from loan and securities payments and prepayments as well as from sales of securities available for sale, the Company has significant borrowing capacity available to fund liquidity needs. In recent years, the Company has

utilized borrowings as a cost efficient addition to deposits as a source of funds. Borrowings consist of advances from the FHLB of Dallas, of which the Company is a member. Under terms of the collateral agreement with the FHLB, the Company pledges residential mortgage loans and investment securities as well as the Company’s stock in the FHLB as collateral for such advances. For the nine months ended September 30, 2026, the average balance of outstanding FHLB advances was $629,000. At September 30, 2026, the Company had no outstanding FHLB advances.

Asset/Liability Management

The objective of asset/liability management is to implement strategies for the funding and deployment of the Company’s financial resources that are expected to maximize soundness and profitability over time at acceptable levels of risk. Interest rate sensitivity is the potential impact of changing rate environments on both net interest income and cash flows. The Company measures its interest rate sensitivity over the near term primarily by running net interest income simulations. Our interest rate sensitivity also is monitored by management through the use of a model which generates estimates of the change in its net interest income over a range of interest rate scenarios. Based on the Company’s interest rate risk model, the table below sets forth the results of immediate and sustained changes in interest rates as of September 30, 2026.


Shift in Interest Rates (in bps)						% Change in Projected Net Interest Income


+200						4.8%
+100						2.5%
-100						(3.3)%
-200						(6.1)%

The actual impact of changes in interest rates will depend on many factors. These factors include the Company’s ability to achieve expected growth in earning assets and maintain a desired mix of earning assets and interest-bearing liabilities, the actual timing of asset and liability repricing, the magnitude of interest rate changes and corresponding movement in interest rate spreads and the level of success of asset/liability management strategies.

The Company periodically has entered into interest rate swap agreements as part of its interest rate risk management strategy. The Company’s objectives in using interest rate derivatives are to manage its exposure to interest rate movements. During 2026 and 2025, such derivatives were used to hedge the variable cost associated with existing variable rate liabilities. Refer to Note 6 of the Consolidated Financial Statements for more information on the effects of the derivative financial instruments on the consolidated financial statements.

To meet the financing needs of its customers, the Company issues financial instruments which represent conditional obligations that are not recognized, wholly or in part, in the statements of financial condition. These financial instruments include commitments to extend credit and standby letters of credit. Such instruments expose the Company to varying degrees of credit and interest rate risk in much the same way as funded loans. The same credit policies are used in these commitments as for on-balance sheet instruments. At both September 30, 2026 and December 31, 2025, the Company's ACL on unfunded commitments totaled $1.6 million.

The following table summarizes our outstanding commitments to originate loans and to advance additional amounts pursuant to outstanding letters of credit, lines of credit and undisbursed construction loans as of the periods indicated.


	Contract Amount
(dollars in thousands)	September 30, 2026		December 31, 2025
Standby letters of credit	$	12,967	$	8,724
Available portion of lines of credit	529,209		498,442
Undisbursed portion of loans in process	80,450		69,223
Commitments to originate loans	188,081		165,251

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to be drawn upon, the total commitment amounts generally represent future cash requirements.

Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed.

The Company is subject to certain claims and litigation arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material effect on the financial condition or results of operations of the Company.

RESULTS OF OPERATIONS

Net income for the third quarter of 2026 was $10.1 million, down $2.3 million, or 18.3%, compared to the third quarter of 2025. Diluted EPS for the third quarter of 2026 was $1.28, down $0.31 compared to the third quarter of 2025.

Net income for the nine months ended September 30, 2026 was $33.1 million, down $1.6 million, compared to the nine months ended September 30, 2025. Diluted EPS for the nine months ended September 30, 2026 was $4.21, down $0.20 compared to the nine months ended September 30, 2025.

During the three and nine months ended September 30, 2026, the Company recorded provisions of $1.0 million and $2.7 million, respectively. The provision for the three months ended September 30, 2026 was primarily attributable to increased reserves on individually analyzed loans, partially offset by the reduction in total loans, while the provision for the nine months ended September 30, 2026 was driven by increased reserves on individually analyzed loans, loan growth, and net charge-offs. During the three months ended September 30, 2025, the Company reversed $229,000 of the ALL, primarily due to loan reduction during the quarter. During the nine months ended September 30, 2025, the Company provisioned $654,000 to the ALL, primarily due to an increase in nonaccrual loans during the year.

Net Interest Income

Net interest income is the difference between the interest income earned on interest-earning assets, such as loans and investment securities, and the interest expense paid on interest-bearing liabilities, such as deposits and borrowings. The Company’s net interest income is largely determined by our net interest spread, which is the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities, and the relative amounts of interest-earning assets and interest-bearing liabilities. The Company’s taxable equivalent ("TE") net interest spread was 3.40% and 3.26% for the quarters ended September 30, 2026 and 2025, respectively, and 3.43% and 3.19% for the nine months ended September 30, 2026 and 2025, respectively.

Net interest income totaled $35.9 million for the third quarter of 2026, up $1.8 million, or 5.3%, compared to the third quarter of 2025. For the nine months ended September 30, 2026, net interest income totaled $106.2 million, up $7.0 million, or 7.1%, compared to the nine months ended September 30, 2025.

The Company’s TE net interest margin, which is net interest income as a percentage of average interest-earning assets, was 4.19% and 4.10% for the quarters ended September 30, 2026 and 2025, respectively. For the same periods, the average loan yield was 6.40% and 6.53%, respectively. The Company’s net interest margin increased over the comparable periods, primarily due to lower funding costs in the third quarter of 2026. However, during the third quarter of 2026, the net interest margin was adversely impacted by approximately 9 basis points due to lower loan yields resulting from the transfer of six loan relationships to nonaccrual status. These transfers resulted in approximately $862,000 in interest income reversals, reducing the average loan yield by approximately 12 basis points.

The net interest margin for the nine months ended September 30, 2026 and 2025 was 4.20% and 4.02%, respectively. For the same periods, the average loan yield was 6.42% and 6.49%, respectively. The Company's net interest margin increased over the comparable periods, primarily due to lower funding costs in 2026, which was partially offset by loans transferred to nonaccrual status, reducing the net interest margin by approximately 3 basis points and the average loan yield by approximately 5 basis points in 2026.

The following table sets forth, for the periods indicated, information regarding (i) the total dollar amount of interest income of the Company from interest-earning assets and the resultant average yields; (ii) the total dollar amount of interest expense on interest-bearing liabilities and the resultant average rate; (iii) net interest income; (iv) net interest spread; and (v) net interest margin. Information is based on average monthly balances during the indicated periods. TE yields are calculated using a marginal tax rate of 21%.


	Three Months Ended September 30,
	2026						2025
(dollars in thousands)	Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate
Interest-earning assets:
Loans receivable(1)	$	2,773,575	$	45,236	6.40	%	$	2,743,695	$	45,607	6.53	%
Investment securities
Taxable	423,621		3,069		2.90		395,840		2,432		2.46
Tax-exempt (TE)	14,975		65		2.19		16,049		72		2.26
Total investment securities	438,596		3,134		2.87		411,889		2,504		2.45
Other interest-earning assets	150,923		1,373		3.61		99,707		1,111		4.42
Total interest-earning assets (TE)	3,363,094		$	49,743	5.82		3,255,291		$	49,222	5.95
Noninterest-earning assets	225,680						211,779
Total assets	$	3,588,774					$	3,467,070
Interest-bearing liabilities:
Deposits:
Savings, checking and money market	$	1,467,688	$	6,524	1.76	%	$	1,301,888	$	5,783	1.76	%
Certificates of deposit	743,677		6,460		3.45		826,652		8,022		3.85
Total interest-bearing deposits	2,211,365		12,984		2.33		2,128,540		13,805		2.57
Other borrowings	—		—		—		5,539		54		3.80
Subordinated debt	54,810		844		6.17		54,593		845		6.19
Short-term FHLB advances	—		—		—		27,120		303		4.38
Long-term FHLB advances	—		—		—		12,325		109		3.54
Total interest-bearing liabilities	2,266,175		$	13,828	2.42		2,228,117		$	15,116	2.69
Noninterest-bearing liabilities	864,425						822,714
Total liabilities	3,130,600						3,050,831
Shareholders’ equity	458,174						416,239
Total liabilities and shareholders' equity	$	3,588,774					$	3,467,070
Net interest-earning assets	$	1,096,919					$	1,027,174
Net interest spread (TE)			$	35,915	3.40	%			$	34,106	3.26	%
Net interest margin (TE)					4.19	%					4.10	%

(1)Nonperforming loans are included in the respective average loan balances, net of deferred fees, discounts and loans in process.


	Nine Months Ended September 30,
	2026						2025
(dollars in thousands)	Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate
Interest-earning assets:
Loans receivable(1)	$	2,757,008	$	133,954	6.42	%	$	2,750,985	$	134,926	6.49	%
Investment securities
Taxable	407,025		8,293		2.72		409,818		7,547		2.46
Tax-exempt (TE)	15,315		205		2.25		16,097		217		2.27
Total investment securities	422,340		8,498		2.70		425,915		7,764		2.45
Other interest-earning assets	159,205		4,250		3.57		75,702		2,362		4.17
Total interest-earning assets (TE)	3,338,553		$	146,702	5.82		3,252,602		$	145,052	5.90
Noninterest-earning assets	223,583						211,231
Total assets	$	3,562,136					$	3,463,833
Interest-bearing liabilities:
Deposits:
Savings, checking and money market	$	1,457,177	$	18,629	1.71	%	$	1,301,660	$	16,715	1.72	%
Certificates of deposit	748,448		19,330		3.45		783,670		22,854		3.90
Total interest-bearing deposits	2,205,625		37,959		2.30		2,085,330		39,569		2.54
Other borrowings	—		—		—		5,550		160		3.84
Subordinated debt	54,755		2,534		6.17		54,540		2,534		6.20
Short-term FHLB advances	—		—		—		91,876		3,078		4.42
Long-term FHLB advances	629		7		1.51		18,982		505		3.54
Total interest-bearing liabilities	2,261,009		$	40,500	2.39		2,256,278		$	45,846	2.71
Noninterest-bearing liabilities	850,687						799,472
Total liabilities	3,111,696						3,055,750
Shareholders’ equity	450,440						408,083
Total liabilities and shareholders' equity	$	3,562,136					$	3,463,833
Net interest-earning assets	$	1,077,544					$	996,324
Net interest spread (TE)			$	106,202	3.43	%			$	99,206	3.19	%
Net interest margin (TE)					4.20	%					4.02	%

The following table displays the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities. The table distinguishes between (i) changes attributable to volume (changes in average volume between periods times prior year rate), (ii) changes attributable to rate (changes in average rate between periods times prior year volume) and (iii) total increase (decrease).


	Three Months Ended September 30,						Nine Months Ended September 30,
	2026 Compared to 2025						2026 Compared to 2025
	Change Attributable To						Change Attributable To
(dollars in thousands)	Rate		Volume		Increase/ (Decrease)		Rate		Volume		Increase/ (Decrease)
Interest income:
Loans receivable	$	(915)	$	544	$	(371)	$	(794)	$	(178)	$	(972)
Investment securities	449		181		630		511		223		734
Other interest-earning assets	(256)		518		262		448		1,440		1,888
Total interest income	(722)		1,243		521		165		1,485		1,650
Interest expense:
Savings, checking and money market accounts	(178)		919		741		426		1,488		1,914
Certificates of deposit	(799)		(763)		(1,562)		(2,029)		(1,495)		(3,524)
Other borrowings	1		(55)		(54)		(52)		(108)		(160)
Subordinated debt	(3)		2		(1)		(3)		3		—
FHLB advances	(206)		(206)		(412)		(1,755)		(1,821)		(3,576)
Total interest expense	(1,185)		(103)		(1,288)		(3,413)		(1,933)		(5,346)
Increase in net interest income	$	463	$	1,346	$	1,809	$	3,578	$	3,418	$	6,996

Noninterest Income

Noninterest income for the third quarter of 2026 totaled $4.2 million, up $463,000, or 12.4%, from $3.7 million earned for the same period in 2025. Noninterest income increased over the comparable period primarily due to increases in other income (up $215,000), bank card fees (up $127,000), and service fees and charges (up $104,000).

Noninterest income for the nine months ended September 30, 2026 totaled $11.9 million, up $395,000, or 3.4%, from $11.5 million earned for the same period in 2025. Noninterest income increased over the comparable periods primarily due to increases in service fees and charges (up $294,000) and bank card fees (up $111,000).

Noninterest Expense

Noninterest expense for the third quarter of 2026 totaled $26.3 million, up $3.8 million, or 16.8%, from the third quarter of 2025. Noninterest expense increased over the comparable quarter primarily due to an increase in foreclosed assets, net (up $1.7 million primarily for write downs on foreclosed assets due to updated values or contracts), compensation and benefits (up $1.6 million), other expenses (up $356,000), and data processing and communication (up $278,000), which were partially offset by a decrease in occupancy (down $81,000).

Noninterest expense for the nine months ended September 30, 2026 totaled $73.8 million, up $7.3 million, or 11.0%, from the same period in 2025. Noninterest expense increased over the comparable quarter primarily due to an increase in compensation and benefits (up $4.4 million), foreclosed assets, net (up $1.5 million primarily for write downs on foreclosed assets due to updated values or contracts), the absence of a reversal to the ACL on unfunded commitments ($970,000), and other expenses (up $697,000), partially offset by a decrease in franchise and shares tax (down $222,000).

Income Taxes

Income tax expense for the three and nine months ended September 30, 2026 totaled $2.7 million and $8.5 million, respectively, compared to $3.2 million and $8.8 million for the three and nine months ended September 30, 2025, respectively. The Company's effective tax rates for the third quarters of 2026 and 2025 were 21.0% and 20.5%, respectively. For the nine months ended September 30, 2026 and 2025, the Company's effective tax rates were 20.4% and 20.3%, respectively.

CRITICAL ACCOUNTING ESTIMATES

SEC guidance requires disclosure of “critical accounting estimates.” The SEC defines “critical accounting estimates” as those estimates made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of the registrant.

We follow financial accounting and reporting policies that are in accordance with accounting principles generally accepted in the United States. Our accounting policies are discussed in detail in Note 1 - Basis of Presentation in the accompanying notes to the consolidated financial statements included elsewhere in this report and in our Annual Report on Form 10-K for the year ended December 31, 2025. Not all significant accounting policies require management to make difficult, subjective or complex judgments. However, management believes the policy noted below meets the SEC’s definition of a critical accounting policy.

Allowance for Credit Losses

Management considers the policies related to the ACL as the most critical to the financial statement presentation. The total ACL includes activity related to allowances calculated in accordance with ASC 326, Credit Losses. The ACL is established through a provision for credit losses charged to current earnings. The amount maintained in the allowance reflects management’s continuing evaluation of the credit losses expected to be recognized over the life of the loans in our portfolio. The ACL on loans is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. For purposes of determining the ACL, the loan portfolio is segregated by product types in order to recognize differing risk profiles among categories. Loans that do not share risk characteristics are evaluated on an individual basis and are not included in the collective evaluation. Management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Adjustments to historical loss information are made to incorporate our reasonable and supportable forecast of future losses at the portfolio segment level, as well as any necessary qualitative adjustments, including, but not limited to, changes in current and expected future economic conditions, changes in industry experience and industry loan concentrations, changes in the volume and severity of NPAs, changes in lending policies and personnel and changes in the competitive and regulatory environment of the banking industry. Loans that do not share similar risk characteristics are individually evaluated and are excluded from the pooled loan analysis.


Item 3.			Quantitative and Qualitative Disclosures About Market Risk.

Quantitative and qualitative disclosures about market risk are presented in the Company’s Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2025, under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Asset/Liability Management and Market Risk”. Additional information at September 30, 2026 is included herein under Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Asset/Liability Management”.


Item 4.			Controls and Procedures.

Our management evaluated, with the participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and regulations and are operating in an effective manner.

No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15(d)-15(f) under the Securities Exchange Act of 1934) occurred during the third quarter of 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION


Item 1.			Legal Proceedings.

Not applicable.


Item 1A.			Risk Factors.

There have been no material changes from the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission.


Item 2.			Unregistered Sales of Equity Securities and the Use of Proceeds.

(a) Not applicable.

(b) Not applicable.

(c) The Company’s purchases of its common stock made during the quarter ended September 30, 2026 consisted of stock repurchases under the Company’s approved plan and are set forth in the following table.


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet be Purchased Under the Plan or Programs(1)
July 1 – July 31, 2026	100	$	70.21	100	383,070
August 1 – August 31, 2026	250	68.99		250	382,820
September 1 – September 30, 2026	—	—		—	382,820
Total	350	$	69.34	350	382,820

(1)On April 21, 2025, the Company announced the approval of a new share repurchase plan (the “2025 Repurchase Plan”). Under the 2025 Repurchase Plan, the Company may purchase up to an additional 400,000 shares, or approximately 5% of the Company’s outstanding common stock.


Item 3.			Defaults Upon Senior Securities.

(a) Not applicable.

(b) Not applicable.


Item 4.			Mine Safety Disclosures.

Not applicable.


Item 5.			Other Information.

(a) Not applicable.

(b) Not applicable.

(c) During the fiscal quarter ended September 30, 2026, none of our directors or executive officers adopted, terminated or modified a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement.


Item 6.			Exhibits and Financial Statement Schedules.

No.

Description

Location

4.1

Indenture, dated June 30, 2022, by and between Home Bancorp, Inc. and UMB Bank, National Association, as trustee for the 5.75% Fixed-to-Floating Rate Subordinated Notes Due 2032.

(incorporated by reference from the like-numbered exhibit included in Home Bancorp’s Current Report on Form 8-K, dated as of June 30, 2022 and filed July 1, 2022 (SEC File No. 001-34190))

31.1

Rule 13(a)-14(a) Certification of the Chief Executive Officer

Filed herewith

31.2

Rule 13(a)-14(a) Certification of the Chief Financial Officer

Filed herewith

32.1

Section 1350 Certification

Filed herewith

101.INS

XBRL Instance Document

101.SCH

XBRL Taxonomy Extension Schema Document

101.CAL

XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

XBRL Taxonomy Extension Definitions Linkbase Document

101.LAB

XBRL Taxonomy Extension Label Linkbase Document

101.PRE

XBRL Taxonomy Extension Presentation Linkbase Document

104

Cover page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

HOME BANCORP, INC.

November 4, 2026

By:

/s/ John W. Bordelon

John W. Bordelon

Chairman of the Board and Chief Executive Officer

November 4, 2026

By:

/s/ David T. Kirkley

David T. Kirkley

Senior Executive Vice President and Chief Financial Officer

November 4, 2026