Total loans grew $36.3 million during Q2 2026 to $1,279.5 million at June 30, 2026, a significant acceleration versus $5.9 million growth in the prior-year quarter; average loans rose to $1.25 billion from $1.16 billion a year earlier, driving a $1.5 million increase in loan interest income.
Deposit funding mix shifted materially: large-denomination CDs ($250K+) declined from $160.4 million at year-end to $131.2 million, while interest-bearing demand/MMDA/savings deposits grew from $760.9 million to $850.7 million; the average rate paid on CDs fell to 2.90% in Q2 2026 from 3.58% a year earlier as the FOMC target rate reached 3.50%–3.75%, and net interest income rose $1.4 million year-over-year to $16.0 million.
The CBRES appraisal management segment saw fee income decline $929,000 year-over-year to $3.0 million in Q2 2026, attributed to decreased appraisal volume; related appraisal management fee expense also fell $718,000 to $2.4 million, partially offsetting the revenue decline in segment net income (which dropped from $315K to $187K).
Non-accrual loans increased to $5.2 million from $4.2 million at December 31, 2025, with no accruing loans 90+ days past due; the allowance for credit losses on loans rose to $10.6 million (0.83% of loans), and the Q2 provision was $293K versus a $213K recovery in the prior-year quarter, reflecting both loan growth and higher net charge-offs.
The North Carolina corporate income tax rate decreased from 2.25% to 2.00% effective January 1, 2026, reducing the company's effective tax rate to 22.23% in Q2 2026 from 22.56% a year earlier; the $3.0 million stock repurchase program authorized in March 2025 expired unutilized on February 28, 2026.
(Filed on May 7, 2026)
+5.4%
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$61.3M
Total loans grew $38.9 million (3.2%) to $1.24 billion during Q1 2026, with consumer loans nearly tripling from $6.3 million to $15.2 million and single-family residential up $12.2 million to $416.2 million; mortgage banking income rose to $135,000 from $27,000 in the prior-year quarter on increased secondary market activity, and mortgage loans held for sale increased from $1.1 million to $1.7 million.
CBRES appraisal management fee income declined $422,000 to $2.62 million (from $3.04 million) due to decreased appraisal volume, reducing CBRES segment net income to $111,000 from $158,000 in the prior-year quarter; the corresponding appraisal management fee expense decreased $324,000 to $2.10 million.
Net interest income increased $1.16 million to $15.1 million as the FOMC target rate fell to 3.50%-3.75% (after 175 bps of cuts from Sept 2024 to Dec 2025), driving the average CD rate down 54 bps to 3.18% while the net interest spread widened to 3.03% from 2.82%; average loans grew $80.2 million to $1.22 billion, lifting the loan yield to 5.80% from 5.69%.
Credit costs rose: the provision for credit losses was $560,000 (vs. $268,000 a year earlier), driven by the $38.9 million loan growth; non-accrual loans increased to $4.8 million (0.28% of total assets) from $4.2 million at year-end, with commercial real estate non-accruals nearly doubling to $1.1 million; the allowance for credit losses on loans was $10.5 million (0.84% of loans), and the Bank had no other real estate owned or repossessed assets.
The North Carolina corporate income tax rate decreased from 2.25% to 2.00% effective January 1, 2026, lowering the Company's effective tax rate to 22.13% from 22.85% in the prior-year quarter, also reflecting revaluation of deferred tax assets for further scheduled NC rate reductions.
The $3.0 million stock repurchase program authorized by the Board in March 2025 expired on February 28, 2026 without any shares repurchased under the program; separately, 1,433 shares were purchased on the open market during the quarter at an average price of $37.95, funded entirely by participant contributions to the deferred compensation plan.
(Filed on March 11, 2026)
+19.7%
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$58.1M
This 10-K is an annual filing for the fiscal year ended December 31, 2025; the detailed MD&A, quarterly financial results, and operational narrative for Q4 and the full year are incorporated by reference from Exhibit 13 (the 2025 Annual Report) and are not included in the provided filing text, so Q4-specific operational metrics (e.g., quarterly net income, loan or deposit growth, provision expense) cannot be extracted from the supplied material.
At fiscal year-end December 31, 2025 (Q4 close), the Bank's balance sheet showed total assets of $1.70 billion, net loans of $1.20 billion, deposits of $1.51 billion, total securities of $380.0 million, and shareholders' equity of $157.1 million; the Bank exceeded all minimum regulatory capital thresholds, with a Tier 1 leverage ratio of 11.13%, CET1 risk-based ratio of 14.83%, and total risk-based ratio of 15.70%. The two largest deposit relationships totaled $122.7 million (8.13% of total deposits), and unrealized losses in the available-for-sale securities portfolio were $35.3 million.
In Q4 2025 the Company purchased 1,065 shares on the open market solely for its deferred compensation plan (funded by participant contributions; 995 shares in November at an average of $29.78 and 70 shares in December at $33.59); no shares were purchased under the publicly announced stock repurchase program authorized in March 2025, which expired February 28, 2026 with $3.0 million of remaining capacity. No Section 16 reporting persons adopted or terminated Rule 10b5-1 trading arrangements during the quarter, and there were no changes in internal control over financial reporting that materially affected, or were reasonably likely to materially affect, the Company's ICFR.
(Filed on November 4, 2025)
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$28.7M
A September 2025 bench ruling in the Bank's favor in the NCDOT eminent-domain case over its Mooresville branch property (NC Highway 150 widening) orders NCDOT to pay $5.1 million in total, including the $1.5 million received in 2023; the formal written order had not been received as of September 30, 2025, and the Bank expects to recognize an additional $3.6 million gain upon receipt. The Bank recorded $553,000 in legal expenses related to the proceedings during the quarter.
The CBRES appraisal-management segment continued to grow, generating $3.6 million in appraisal management fee income in Q3 2025 (up 17% from $3.1 million in Q3 2024) and $10.6 million for the nine-month period (up 22% from $8.7 million); segment assets increased from $4.2 million at December 31, 2024 to $5.0 million at September 30, 2025, and corresponding appraisal-management fee expense rose to $2.9 million in the quarter.
Total loans grew to $1.18 billion at September 30, 2025 from $1.14 billion at year-end 2024, with commercial real estate loans increasing to $505.2 million and construction/land development loans to $129.2 million; average loans for Q3 were $1.17 billion, up $50.2 million year over year. Total deposits rose to $1.55 billion (from $1.48 billion), with core deposits at $1.39 billion and the average rate paid on certificates of deposit declining to 3.51% from 4.19% a year earlier as FOMC rate cuts took effect (target funds rate at 4.00%-4.25% at quarter end).
Non-accrual loans increased to $5.1 million from $4.4 million at year-end, with the Q3 provision for credit losses of $530,000 (vs. $297,000 a year earlier) driven primarily by higher construction-loan reserves; net charge-offs in the quarter were $198,000 ($249,000 charge-offs less $51,000 recoveries). No loans to borrowers experiencing financial difficulty were modified during Q3 2025 or the nine-month period.
The Board authorized a new $3.0 million common-stock repurchase program in March 2025 (expiring February 28, 2026), but no shares were repurchased under the program as of September 30, 2025; the prior $2.0 million program authorized in June 2024 had expired in February 2025 also with no repurchases. During Q3 the Company purchased 1,110 shares on the open market solely for its deferred compensation plan, funded by participant contributions.
