Fourthstone LLC

2. Key Holdings

The portfolio is characterized by a heavy weighting toward regional and community banks. The top position, AVIDBANK HLDGS INC, represents 11.63% of the portfolio ($26.58M), a new initiation this quarter. This suggests high conviction in this specific name. The top five holdings—AVIDBANK, CALIFORNIA BANCORP, FIRST NATL CORP, MERIDIAN CORPORATION, and CF BANKSHARES INC—comprise nearly 43% of the total assets.

Notably, CALIFORNIA BANCORP remains a major position at 9.50% ($21.71M) despite seeing a significant reduction of 40.6% in share count during the quarter. FIRST NATL CORP (8.67%) and MERIDIAN CORPORATION (7.41%) round out the top three, maintaining stable or slightly increased positions. The portfolio's top holdings are exclusively community banks, indicating a specialized "pure play" strategy on the regional banking sector.