BANNER CORP 10-Q

ITEM 1 - Financial Statements (unaudited) BANNER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (In thousands, except shares and per share amounts) September 30, 2025 and December 31, 2024 ASSETS September 30, 2025 December 31, 2024 Cash and due from banks $ 193,453 $ 203,402 Interest-bearing deposits 479,410 298,456 Total cash and cash equivalents 672,863 501,858 Securities—available-for-sale, amortized cost $ 2,292,835 and $ 2,460,262 , respectively 2,018,525 2,104,511 Securities—held-to-maturity, net of allowance for credit losses of $ 298 and $ 297 , respectively 971,603 1,001,564 Total securities 2,990,128 3,106,075 Federal Home Loan Bank (FHLB) stock 14,226 22,451 Loans held for sale (includes $ 12,570 and $ 26,185 , at fair value, respectively) 20,334 32,021 Loans receivable 11,702,538 11,354,656 Allowance for credit losses – loans ( 159,707 ) ( 155,521 ) Net loans receivable 11,542,831 11,199,135 Accrued interest receivable 64,914 60,885 Property and equipment, net 113,848 124,589 Goodwill 373,121 373,121 Other intangibles, net 1,806 3,058 Bank-owned life insurance (BOLI) 317,469 312,549 Deferred tax assets, net 130,438 148,858 Operating lease right-of-use assets 35,494 39,998 Other assets 285,609 275,439 Total assets $ 16,563,081 $ 16,200,037 LIABILITIES Deposits: Non-interest-bearing $ 4,572,338 $ 4,591,543 Interest-bearing transaction and savings accounts 7,903,215 7,423,183 Interest-bearing certificates 1,540,382 1,499,672 Total deposits 14,015,935 13,514,398 Advances from FHLB 100,000 290,000 Other borrowings 120,536 125,257 Subordinated notes, net — 80,278 Junior subordinated debentures at fair value (issued in connection with Trust Preferred Securities) 76,251 67,477 Operating lease liabilities 38,826 43,472 Accrued expenses and other liabilities 251,464 258,070 Deferred compensation 47,177 46,759 Total liabilities 14,650,189 14,425,711 COMMITMENTS AND CONTINGENCIES (Note 11) SHAREHOLDERS’ EQUITY Preferred stock - $ 0.01 par value per share, 500,000 shares authorized; no shares outstanding at September 30, 2025 and December 31, 2024 — — Common stock and paid in capital - $ 0.01 par value per share, 50,000,000 shares authorized; 34,335,297 shares issued and outstanding at September 30, 2025; 34,459,832 shares issued and outstanding at December 31, 2024 1,295,821 1,307,509 Common stock (non-voting) and paid in capital - $ 0.01 par value per share, 5,000,000 shares authorized; no shares issued and outstanding at September 30, 2025; no shares issued and outstanding at December 31, 2024 — — Retained earnings 837,826 744,091 Carrying value of shares held in trust for stock-based compensation plans ( 5,801 ) ( 6,194 ) Liability for common stock issued to stock related compensation plans 5,801 6,194 Accumulated other comprehensive loss ( 220,755 ) ( 277,274 ) Total shareholders’ equity 1,912,892 1,774,326 Total liabilities and shareholders’ equity $ 16,563,081 $ 16,200,037 See Selected Notes to the Consolidated Financial Statements 4 Table of Contents BANNER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except shares and per share amounts) For the Three and Nine Months Ended September 30, 2025 and 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 INTEREST INCOME: Loans receivable $ 179,065 $ 168,338 $ 523,115 $ 486,004 Mortgage-backed securities 15,090 16,357 46,250 49,999 Securities and cash equivalents 11,693 11,146 30,610 33,664 Total interest income 205,848 195,841 599,975 569,667 INTEREST EXPENSE: Deposits 52,251 53,785 150,304 147,248 FHLB advances 1,527 2,263 5,757 8,856 Other borrowings 694 1,147 2,063 3,482 Subordinated debt 1,387 2,971 6,380 8,901 Total interest expense 55,859 60,166 164,504 168,487 Net interest income 149,989 135,675 435,471 401,180 PROVISION FOR CREDIT LOSSES 2,670 1,692 10,604 4,581 Net interest income after provision for credit losses 147,319 133,983 424,867 396,599 NON-INTEREST INCOME: Deposit fees and other service charges 10,955 10,741 32,559 32,353 Mortgage banking operations 3,298 3,180 9,627 8,521 BOLI 2,702 2,445 7,661 7,049 Miscellaneous 3,175 1,658 6,742 5,538 20,130 18,024 56,589 53,461 Net gain (loss) on sale of securities 377 — 374 ( 5,465 ) Net change in valuation of financial instruments carried at fair value 223 39 626 ( 1,143 ) Total non-interest income 20,730 18,063 57,589 46,853 NON-INTEREST EXPENSE: Salary and employee benefits 64,935 61,832 195,278 188,032 Less capitalized loan origination costs ( 4,802 ) ( 4,354 ) ( 13,056 ) ( 12,669 ) Occupancy and equipment 12,518 12,040 36,871 36,630 Information and computer data services 8,199 7,134 24,026 21,694 Payment and card processing services 6,060 5,346 17,709 16,747 Professional and legal expenses 2,190 2,102 6,891 4,833 Advertising and marketing 1,395 1,161 3,072 3,438 Deposit insurance 2,867 2,874 8,464 8,541 State and municipal business and use taxes 1,655 1,432 4,525 4,130 Real estate operations, net 203 103 534 180 Amortization of core deposit intangibles 341 590 1,252 2,037 Miscellaneous 6,461 6,031 19,063 18,467 Total non-interest expense 102,022 96,291 304,629 292,060 Income before provision for income taxes 66,027 55,755 177,827 151,392 PROVISION FOR INCOME TAXES 12,525 10,602 33,694 28,885 NET INCOME $ 53,502 $ 45,153 $ 144,133 $ 122,507 Earnings per common share: Basic $ 1.55 $ 1.31 $ 4.17 $ 3.56 Diluted $ 1.54 $ 1.30 $ 4.15 $ 3.54 Cumulative dividends declared per common share $ 0.48 $ 0.48 $ 1.44 $ 1.44 Weighted average number of common shares outstanding: Basic 34,494,824 34,498,830 34,543,969 34,459,662 Diluted 34,659,346 34,650,322 34,730,103 34,575,498 See Selected Notes to the Consolidated Financial Statements 5 Table of Contents BANNER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In thousands) For the Three and Nine Months Ended September 30, 2025 and 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 NET INCOME $ 53,502 $ 45,153 $ 144,133 $ 122,507 OTHER COMPREHENSIVE INCOME, NET OF INCOME TAXES: Unrealized holding gain on securities—available-for-sale arising during the period 32,232 88,822 80,230 64,703 Income tax expense related to securities—available-for-sale unrealized holding losses ( 7,735 ) ( 21,318 ) ( 19,255 ) ( 15,529 ) Reclassification for net loss on securities—available-for-sale realized in earnings 1,208 — 1,211 5,465 Income tax benefit related to securities—available-for-sale realized in earnings ( 290 ) — ( 291 ) ( 1,312 ) Amortization of unrealized loss on securities transferred from available-for-sale to held-to-maturity 584 603 1,700 1,717 Income tax expense related to amortization of unrealized loss on securities transferred from available-for-sale to held-to-maturity ( 140 ) ( 145 ) ( 408 ) ( 412 ) Net unrealized gain on interest rate swaps used in cash flow hedges — 4,746 — 11,633 Income tax expense related to interest rate swaps used in cash flow hedges — ( 1,139 ) — ( 2,792 ) Changes in fair value of junior subordinated debentures related to instrument specific credit risk ( 2,885 ) 574 ( 8,774 ) 156 Income tax benefit (expense) related to junior subordinated debentures 693 ( 137 ) 2,106 ( 37 ) Other comprehensive income 23,667 72,006 56,519 63,592 COMPREHENSIVE INCOME $ 77,169 $ 117,159 $ 200,652 $ 186,099 See Selected Notes to the Consolidated Financial Statements 6 Table of Contents BANNER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) (In thousands, except shares and per share amounts) For the Nine Months Ended September 30, 2025 and the Year Ended December 31, 2024 Common Stock and Paid in Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Total Shareholders’ Equity Shares Amount Balance, January 1, 2024 34,348,369 $ 1,299,651 $ 642,175 $ ( 289,135 ) $ 1,652,691 Net income 37,559 37,559 Other comprehensive loss, net of income tax ( 10,347 ) ( 10,347 ) Accrual of dividends on common stock ($ 0.48 /share) ( 16,713 ) ( 16,713 ) Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered 46,852 1,318 1,318 Balance, March 31, 2024 34,395,221 1,300,969 663,021 ( 299,482 ) 1,664,508 Net income 39,795 39,795 Other comprehensive income, net of income tax 1,933 1,933 Accrual of dividends on common stock ($ 0.48 /share) ( 16,737 ) ( 16,737 ) Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered 60,531 1,267 1,267 Balance, June 30, 2024 34,455,752 1,302,236 686,079 ( 297,549 ) 1,690,766 Net income 45,153 45,153 Other comprehensive income, net of income tax 72,006 72,006 Accrual of dividends on common stock ($ 0.48 /share) ( 16,760 ) ( 16,760 ) Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered 936 2,556 2,556 Balance, September 30, 2024 34,456,688 1,304,792 714,472 ( 225,543 ) 1,793,721 Net income 46,391 46,391 Other comprehensive loss, net of income tax ( 51,731 ) ( 51,731 ) Accrual of dividends on common stock ($ 0.48 /share) ( 16,772 ) ( 16,772 ) Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered 3,144 2,717 2,717 Balance, December 31, 2024 34,459,832 1,307,509 744,091 ( 277,274 ) 1,774,326 Net income 45,135 45,135 Other comprehensive income, net of income tax 29,348 29,348 Accrual of dividends on common stock ($ 0.48 /share) ( 16,814 ) ( 16,814 ) Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered 30,140 1,458 1,458 Balance, March 31, 2025 34,489,972 1,308,967 772,412 ( 247,926 ) 1,833,453 Net income 45,496 45,496 Other comprehensive income, net of income tax 3,504 3,504 Accrual of dividends on common stock ($ 0.48 /share) ( 16,826 ) ( 16,826 ) Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered 94,022 37 37 Balance, June 30, 2025 34,583,994 1,309,004 801,082 ( 244,422 ) 1,865,664 Net income 53,502 53,502 Other comprehensive income, net of income tax 23,667 23,667 Accrual of dividends on common stock ($ 0.48 /share) ( 16,758 ) ( 16,758 ) Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered 1,303 2,678 2,678 Repurchase of common stock ( 250,000 ) ( 15,861 ) ( 15,861 ) Balance, September 30, 2025 34,335,297 $ 1,295,821 $ 837,826 $ ( 220,755 ) $ 1,912,892 See Selected Notes to the Consolidated Financial Statements 7 Table of Contents BANNER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) For the Nine Months Ended September 30, 2025 and 2024 Nine Months Ended September 30, 2025 2024 OPERATING ACTIVITIES: Net income $ 144,133 $ 122,507 Adjustments to reconcile net income to net cash provided from operating activities: Depreciation 12,523 13,615 Deferred income and expense, net of amortization ( 7,886 ) ( 5,834 ) Capitalized loan servicing rights, net of amortization 405 1,211 Amortization of core deposit intangibles 1,252 2,037 (Gain) loss on sale of securities, net ( 374 ) 5,465 Net change in valuation of financial instruments carried at fair value ( 626 ) 1,143 Decrease in deferred taxes 572 2,973 (Decrease) increase in current taxes payable/receivable, net ( 387 ) 4,967 Stock-based compensation 7,623 7,234 Net change in cash surrender value of BOLI ( 7,106 ) ( 6,888 ) Gain on sale of loans, excluding capitalized servicing rights ( 4,746 ) ( 4,212 ) Gain on disposal of real estate held for sale and property and equipment, net ( 403 ) ( 319 ) Provision for credit losses 10,604 4,581 Origination of loans held for sale ( 264,970 ) ( 197,741 ) Proceeds from sales of loans held for sale 355,435 260,192 Net change in: Other assets ( 9,497 ) ( 14,137 ) Other liabilities ( 4,036 ) ( 2,887 ) Net cash provided from operating activities 232,516 193,907 INVESTING ACTIVITIES: Purchases of securities—available-for-sale ( 101,671 ) ( 53,170 ) Principal repayments and maturities of securities—available-for-sale 248,630 168,360 Proceeds from sales of securities—available-for-sale 17,581 70,777 Principal repayments and maturities of securities—held-to-maturity 30,112 45,280 Loan originations, net of repayments ( 438,908 ) ( 547,162 ) Purchases of loans and participating interest in loans ( 10,780 ) ( 4,666 ) Proceeds from sales of other loans 26,053 16,622 Purchases of property and equipment ( 6,159 ) ( 9,953 ) Proceeds from sale of real estate held for sale and sale of other property 6,539 4,323 Proceeds from FHLB stock repurchase program 151,970 129,062 Purchase of FHLB stock ( 143,745 ) ( 124,785 ) Investment in BOLI ( 46 ) ( 41 ) Other 2,229 732 Net cash used by investing activities ( 218,195 ) ( 304,621 ) Continued on next page 8 Table of Contents BANNER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (Unaudited) (In thousands) For the Nine Months Ended September 30, 2025 and 2024 Nine Months Ended September 30, 2025 2024 FINANCING ACTIVITIES: Increase in deposits, net $ 501,537 $ 508,651 Repayment of overnight and short term FHLB advances, net ( 190,000 ) ( 93,000 ) Decrease in other borrowings, net ( 4,721 ) ( 28,344 ) Repayment of subordinated notes ( 80,500 ) — Cash dividends paid ( 50,399 ) ( 50,169 ) Cash paid to repurchase common stock ( 15,784 ) — Taxes paid related to net share settlement of equity awards ( 3,449 ) ( 2,093 ) Net cash provided from financing activities 156,684 335,045 NET CHANGE IN CASH AND CASH EQUIVALENTS 171,005 224,331 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 501,858 254,464 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 672,863 $ 478,795 Nine Months Ended September 30, 2025 2024 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Interest paid in cash $ 164,392 $ 166,843 Tax paid 23,087 13,376 NON-CASH INVESTING AND FINANCING TRANSACTIONS: Transfer of loans to real estate owned and other repossessed assets 5,415 2,386 Dividends accrued but not paid until after period end 1,332 1,125 Loans, held-for-sale, transferred from portfolio ( 74,032 ) ( 125,909 ) See Selected Notes to the Consolidated Financial Statements 9 Table of Contents BANNER CORPORATION AND SUBSIDIARIES SELECTED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 1: BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements include the accounts of Banner Corporation (the Company or Banner), a bank holding company incorporated in the State of Washington and its wholly-owned subsidiary, Banner Bank (the Bank). These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (SEC). In preparing these financial statements, the Company has evaluated events and transactions subsequent to September 30, 2025, for potential recognition or disclosure. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Certain information and note disclosures have been condensed or omitted pursuant to the rules and regulations of the SEC and the accounting standards for interim financial statements. All significant intercompany transactions and balances have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Various elements of the Company’s accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions and other subjective assessments. The information included in this Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Interim results are not necessarily indicative of results for a full year or any other interim period. Note 2: ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) In November 2024, the Financial Accounting Standards Board (FASB) issued guidance within Accounting Standards Update (ASU) 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in the ASU require public companies to disclose, in the notes to financial statements, specified information about certain costs and expenses at each interim and annual reporting period. Specifically, they will be required to: • Disclose the amounts of (a) purchases of inventory; (b) employee compensation; (c) depreciation; (d) intangible asset amortization; and (e) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities (or other amounts of depletion expense) included in each relevant expense caption. • Include certain amounts that are already required to be disclosed under GAAP in the same disclosure as the other disaggregation requirements. • Disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. • Disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. This ASU is 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 should be applied prospectively. The Company is evaluating this ASU, but does not expect the adoption of this ASU to have a material impact on the Company’s consolidated financial statements. Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) In September 2025, the FASB issued guidance within ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The amendments in this ASU are intended to modernize the guidance for accounting software costs that are accounted for under Subtopic 350-40 and remove all references to prescriptive and sequential software development stages. This increases the operability of the cost recognition guidance by considering different methods of software development. The amendments require that an entity begin capitalizing software costs when both of the following conditions have been met: management has authorized and committed to funding the software project; and it is probable that the project will be completed, and the software will be used to perform the function intended (referred to as the “probable-to-complete recognition threshold”). This ASU is effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The transition can be done using the prospective method, the modified transition approach or retrospectively. The Company is evaluating this ASU but does not expect the adoption of this ASU to have a material impact on the Company’s consolidated financial statements. 10 Table of Contents Note 3: SECURITIES The amortized cost, gross unrealized gains and losses and estimated fair value of securities at September 30, 2025 and December 31, 2024 are summarized as follows (in thousands): September 30, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-Sale: U.S. Government and agency obligations $ 6,892 $ — $ ( 344 ) $ 6,548 Municipal bonds 159,353 479 ( 28,617 ) 131,215 Corporate bonds 123,679 3,446 ( 3,421 ) 123,704 Mortgage-backed or related securities 1,868,033 2,313 ( 248,370 ) 1,621,976 Asset-backed securities 134,878 204 — 135,082 $ 2,292,835 $ 6,442 $ ( 280,752 ) $ 2,018,525 September 30, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses Held-to-Maturity: U.S. Government and agency obligations $ 279 $ 1 $ ( 3 ) $ 277 $ — Municipal bonds 433,560 40 ( 63,161 ) 370,288 ( 151 ) Corporate bonds 2,573 — ( 1 ) 2,425 ( 147 ) Mortgage-backed or related securities 535,489 — ( 93,045 ) 442,444 — $ 971,901 $ 41 $ ( 156,210 ) $ 815,434 $ ( 298 ) December 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-Sale: U.S. Government and agency obligations $ 8,492 $ — $ ( 559 ) $ 7,933 Municipal bonds 153,982 453 ( 30,453 ) 123,982 Corporate bonds 131,379 100 ( 6,489 ) 124,990 Mortgage-backed or related securities 1,995,805 383 ( 319,340 ) 1,676,848 Asset-backed securities 170,604 155 ( 1 ) 170,758 $ 2,460,262 $ 1,091 $ ( 356,842 ) $ 2,104,511 December 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses Held-to-Maturity: U.S. Government and agency obligations $ 302 $ — $ ( 4 ) $ 298 $ — Municipal bonds 438,196 36 ( 62,809 ) 375,280 ( 143 ) Corporate bonds 2,658 — ( 6 ) 2,498 ( 154 ) Mortgage-backed or related securities 560,705 — ( 113,253 ) 447,452 — $ 1,001,861 $ 36 $ ( 176,072 ) $ 825,528 $ ( 297 ) Accrued interest receivable on held-to-maturity debt securities was $ 3.6 million and $ 4.2 million at September 30, 2025 and December 31, 2024, and was $ 8.0 million and $ 9.0 million on available-for-sale debt securities at September 30, 2025 and December 31, 2024, respectively. Accrued interest receivable on securities is reported in accrued interest receivable on the Consolidated Statements of Financial Condition and is excluded from the calculation of the allowance for credit losses. 11 Table of Contents At September 30, 2025 and December 31, 2024, the gross unrealized losses and the fair value for securities available-for-sale aggregated by the length of time that individual securities have been in a continuous unrealized loss position were as follows (in thousands): September 30, 2025 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale: U.S. Government and agency obligations $ — $ — $ 6,548 $ ( 344 ) $ 6,548 $ ( 344 ) Municipal bonds 20,492 ( 193 ) 92,685 ( 28,424 ) 113,177 ( 28,617 ) Corporate bonds — — 70,439 ( 3,421 ) 70,439 ( 3,421 ) Mortgage-backed or related securities — — 1,483,151 ( 248,370 ) 1,483,151 ( 248,370 ) $ 20,492 $ ( 193 ) $ 1,652,823 $ ( 280,559 ) $ 1,673,315 $ ( 280,752 ) December 31, 2024 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale: U.S. Government and agency obligations $ — $ — $ 7,933 $ ( 559 ) $ 7,933 $ ( 559 ) Municipal bonds 15,497 ( 287 ) 91,156 ( 30,166 ) 106,653 ( 30,453 ) Corporate bonds 2,541 ( 59 ) 96,763 ( 6,430 ) 99,304 ( 6,489 ) Mortgage-backed or related securities 44,749 ( 524 ) 1,552,613 ( 318,816 ) 1,597,362 ( 319,340 ) Asset-backed securities 20,000 ( 1 ) — — 20,000 ( 1 ) $ 82,787 $ ( 871 ) $ 1,748,465 $ ( 355,971 ) $ 1,831,252 $ ( 356,842 ) At September 30, 2025, there were 185 securities—available-for-sale with unrealized losses, compared to 201 at December 31, 2024. Management does not believe that any remaining individual unrealized loss as of September 30, 2025 or December 31, 2024 resulted from credit loss. The decline in fair market value of these securities was generally due to changes in interest rates and changes in market-desired spreads subsequent to their purchase. There were no securities—available-for-sale in a nonaccrual status at September 30, 2025 or December 31, 2024. The following table presents gross gains and losses on sales and partial calls of securities available-for-sale (in thousands): Three months ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Available-for-Sale: Gross Gains $ — $ — $ — $ 37 Gross Losses ( 1,208 ) — ( 1,211 ) ( 5,502 ) Balance, end of the period $ ( 1,208 ) $ — $ ( 1,211 ) $ ( 5,465 ) The following table presents the amortized cost and estimated fair value of securities at September 30, 2025, by contractual maturity and does not reflect any required periodic payments (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties. September 30, 2025 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturing within one year $ 21,156 $ 21,014 $ 9,418 $ 9,248 Maturing after one year through five years 146,075 136,704 11,494 11,315 Maturing after five years through ten years 299,674 281,839 31,294 29,805 Maturing after ten years 1,825,930 1,578,968 919,695 765,066 $ 2,292,835 $ 2,018,525 $ 971,901 $ 815,434 12 Table of Contents The following table presents, as of September 30, 2025, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands): September 30, 2025 Carrying Value Amortized Cost Fair Value Purpose or beneficiary: State and local governments public deposits $ 294,939 $ 308,382 $ 263,059 Interest rate swap counterparties 950 950 807 Repurchase transaction accounts 205,928 205,928 169,282 Other 2,467 2,467 2,221 Total pledged securities $ 504,284 $ 517,727 $ 435,369 The Company monitors the credit quality of held-to-maturity debt securities through the use of credit ratings, which are reviewed and updated quarterly. The Company’s non-rated held-to-maturity debt securities are primarily United States government sponsored enterprise debentures carrying minimal to no credit risk. The non-rated corporate bonds primarily consist of Community Reinvestment Act related bonds secured by loan instruments from low to moderate income borrowers. The remaining non-rated held-to-maturity debt securities balance is comprised of local municipal debt from within the Company’s geographic footprint and is monitored through quarterly or annual financial review. This municipal debt is predominately essential service or unlimited general obligation backed debt. The following tables summarize the amortized cost of held-to-maturity debt securities by credit rating at September 30, 2025 and December 31, 2024 (in thousands): September 30, 2025 U.S. Government and agency obligations Municipal bonds Corporate bonds Mortgage-backed or related securities Total AAA/AA/A $ — $ 424,735 $ 500 $ 16,032 $ 441,267 Not Rated 279 8,825 2,073 519,457 530,634 $ 279 $ 433,560 $ 2,573 $ 535,489 $ 971,901 December 31, 2024 U.S. Government and agency obligations Municipal bonds Corporate bonds Mortgage-backed or related securities Total AAA/AA/A $ — $ 430,158 $ 500 $ 16,218 $ 446,876 Not Rated 302 8,038 2,158 544,487 554,985 $ 302 $ 438,196 $ 2,658 $ 560,705 $ 1,001,861 13 Table of Contents Note 4: LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES - LOANS The following table presents the loans receivable at September 30, 2025 and December 31, 2024 by class (dollars in thousands). September 30, 2025 December 31, 2024 Amount Percent of Total Amount Percent of Total Commercial real estate: Owner-occupied $ 1,134,559 10 % $ 1,027,426 9 % Investment properties 1,652,141 14 1,623,672 14 Small balance CRE 1,210,357 10 1,213,792 11 Multifamily real estate 860,650 7 894,425 8 Construction, land and land development: Commercial construction 144,125 1 122,362 1 Multifamily construction 586,104 5 513,706 5 One- to four-family construction 578,128 5 514,220 5 Land and land development 427,348 4 369,663 3 Commercial business: Commercial business 1,254,460 11 1,318,333 11 Small business scored 1,176,889 10 1,104,117 10 Agricultural business, including secured by farmland 354,884 3 340,280 3 One- to four-family residential 1,582,605 14 1,591,260 14 Consumer: Consumer—home equity revolving lines of credit 649,188 5 625,680 5 Consumer—other 91,100 1 95,720 1 Total loans 11,702,538 100 % 11,354,656 100 % Less allowance for credit losses – loans ( 159,707 ) ( 155,521 ) Net loans $ 11,542,831 $ 11,199,135 Loan amounts are net of unearned loan fees in excess of unamortized costs of $ 16.5 million as of September 30, 2025, and $ 15.5 million as of December 31, 2024. Net loans include net discounts on acquired loans of $ 2.7 million and $ 3.5 million as of September 30, 2025 and December 31, 2024, respectively. Net loans does not include accrued interest receivable. Accrued interest receivable on loans was $ 53.3 million as of September 30, 2025, and $ 47.7 million as of December 31, 2024 and was reported in accrued interest receivable on the Consolidated Statements of Financial Condition. The Company had pledged $ 8.2 billion and $ 7.9 billion of loans as collateral for FHLB and other borrowings at September 30, 2025 and December 31, 2024, respectively. Troubled Loan Modifications. Occasionally, the Company offers modifications of loans to borrowers experiencing financial difficulty by providing principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions or any combination of these. The following table presents the amortized cost basis and financial effect of loans at September 30, 2025 and September 30, 2024, that were both experiencing financial difficulty and modified during the nine months ended September 30, 2025 and September 30, 2024, respectively (in thousands). September 30, 2025 Term Extension Total Multifamily construction $ 7,499 $ 7,499 One- to four-family construction 2,691 $ 2,691 Agricultural business, including secured by farmland 5,966 5,966 Total $ 16,156 $ 16,156 September 30, 2024 Payment Delay Total Commercial business $ 5,322 $ 5,322 Total $ 5,322 $ 5,322 14 Table of Contents The Company has committed to lend additional amounts totaling $ 2.5 million to the borrowers included in the previous table as of September 30, 2025. The Company closely monitors the performance of loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The follow ing tables present the performance at September 30, 2025 and September 30, 2024 of loans that had been modified in the previous 12 months (in thousands). September 30, 2025 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Total Commercial business $ — $ — $ — $ 1,460 $ 1,460 Total $ — $ — $ — $ 1,460 $ 1,460 September 30, 2024 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Total Commercial business $ — $ — $ — $ 5,322 $ 5,322 Total $ — $ — $ — $ 5,322 $ 5,322 Loans are considered to be in payment default at 90 or more days past due. The following tables present the amortized cost basis of modified loans that, within twelve months of the modification date, experienced a subsequent default during the nine months ended September 30, 2025: September 30, 2025 Term Extension Total Commercial business $ 1,460 $ 1,460 Total $ 1,460 $ 1,460 The following table presents the financial effect of the loan modifications presented above for borrowers experiencing financial difficulty for the nine months ended September 30, 2025 and September 30, 2024: Nine Months Ended September 30, 2025 Weighted-Average Term Extension (in months) Multifamily construction 12 One- to four-family construction 21 Agricultural business, including secured by farmland 12 Nine Months Ended September 30, 2024 Weighted Average Payment Delay Period (in months) Commercial business 3 15 Table of Contents Credit Quality Indicators : To appropriately and effectively manage the ongoing credit quality of the Company’s loan portfolio, management has implemented a risk-rating or loan grading system for its loans. The system is a tool to evaluate portfolio asset quality throughout each applicable loan’s life as an asset of the Company. Generally, loans are risk rated on an aggregate borrower/relationship basis with individual loans sharing similar ratings. There are some instances when specific situations relating to individual loans will provide the basis for different risk ratings within the aggregate relationship. Loans are graded on a scale of 1 to 9. A description of the general characteristics of these categories is shown below. Overall Risk Rating Definitions : Risk-ratings contain both qualitative and quantitative measurements and take into account the financial strength of a borrower and the structure of the loan. Consequently, the definitions are to be applied in the context of each lending transaction and judgment must also be used to determine the appropriate risk rating, as it is not unusual for a loan to exhibit characteristics of more than one risk-rating category. Consideration for the final rating is centered in the borrower’s ability to repay, in a timely fashion, both principal and interest. The Company’s risk-rating and loan grading policies are reviewed and approved annually. There were no material changes in the risk-rating or loan grading system for the periods presented. Risk Ratings 1-5: Pass Credits with risk ratings of 1 to 5 meet the definition of a pass risk rating. The strength of credits vary within the pass risk ratings, ranging from a risk rated 1 being an exceptional credit to a risk rated 5 being an acceptable credit that requires a more than normal level of supervision. Risk Rating 6: Special Mention A credit with potential weaknesses that deserves management’s close attention is risk rated a 6. If left uncorrected, these potential weaknesses will result in deterioration in the capacity to repay debt. A key distinction between Special Mention and Substandard is that in a Special Mention credit, there are identified weaknesses that pose potential risk(s) to the repayment sources, versus well defined weaknesses that pose risk(s) to the repayment sources. Assets in this category are expected to be in this category no more than 9-12 months as the potential weaknesses in the credit are resolved. Risk Rating 7: Substandard A credit with well-defined weaknesses that jeopardize the ability to repay in full is risk rated a 7. These credits are inadequately protected by either the sound net worth and payment capacity of the borrower or the value of pledged collateral. These are credits with a distinct possibility of loss. Loans headed for foreclosure and/or legal action due to deterioration are rated 7 or worse. Risk Rating 8: Doubtful A credit with an extremely high probability of loss is risk rated 8. These credits have all the same critical weaknesses that are found in a substandard loan; however, the weaknesses are elevated to the point that based upon current information, collection or liquidation in full is improbable. While some loss on doubtful credits is expected, pending events may make the amount and timing of any loss indeterminable. In these situations, taking the loss is inappropriate until the outcome of the pending event is clear. Risk Rating 9: Loss A credit that is considered to be currently uncollectible or of such little value that it is no longer a viable bank asset is risk rated 9. Losses should be taken in the accounting period in which the credit is determined to be uncollectible. Taking a loss does not mean that a credit has absolutely no recovery or salvage value but, rather, it is not practical or desirable to defer writing off the credit, even though partial recovery may occur in the future. 16 Table of Contents The following tables present the Company’s portfolio of risk-rated loans by class and by grade as of September 30, 2025 and December 31, 2024 (in thousands). In addition, the tables include the gross charge-offs for the nine months ended September 30, 2025 and the year ended December 31, 2024. Revolving loans that are converted to term loans are treated as new originations in the tables below and are presented by year of origination. Term loans that are renewed or extended for periods longer than 90 days are presented as a new origination in the year of the most recent renewal or extension. September 30, 2025 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2025 2024 2023 2022 2021 Prior Commercial real estate - owner occupied Risk Rating Pass $ 175,847 $ 210,364 $ 168,160 $ 103,893 $ 143,393 $ 253,542 $ 46,888 $ 1,102,087 Special Mention — 558 — 9,668 — — — 10,226 Substandard — — 289 8,610 9 13,338 — 22,246 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial real estate - owner occupied $ 175,847 $ 210,922 $ 168,449 $ 122,171 $ 143,402 $ 266,880 $ 46,888 $ 1,134,559 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate - investment properties Risk Rating Pass $ 197,071 $ 107,921 $ 127,914 $ 215,776 $ 257,707 $ 682,430 $ 59,314 $ 1,648,133 Special Mention — — — — — — — — Substandard — — — — — 4,008 — 4,008 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial real estate - investment properties $ 197,071 $ 107,921 $ 127,914 $ 215,776 $ 257,707 $ 686,438 $ 59,314 $ 1,652,141 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Multifamily real estate Risk Rating Pass $ 41,078 $ 86,067 $ 89,665 $ 234,399 $ 171,114 $ 232,881 $ 3,383 $ 858,587 Special Mention — — — — — — — — Substandard — — — — — 2,063 — 2,063 Doubtful — — — — — — — — Loss — — — — — — — — Total Multifamily real estate $ 41,078 $ 86,067 $ 89,665 $ 234,399 $ 171,114 $ 234,944 $ 3,383 $ 860,650 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — 17 Table of Contents September 30, 2025 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2025 2024 2023 2022 2021 Prior Commercial construction Risk Rating Pass $ 47,102 $ 33,870 $ 41,288 $ 21,121 $ — $ — $ — $ 143,381 Special Mention — — — — — — — — Substandard — — — — 744 — — 744 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial construction $ 47,102 $ 33,870 $ 41,288 $ 21,121 $ 744 $ — $ — $ 144,125 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Multifamily construction Risk Rating Pass $ 155,853 $ 168,371 $ 170,940 $ 67,280 $ — $ — $ 8,366 $ 570,810 Special Mention — — — — — — — — Substandard 15,294 — — — — — — 15,294 Doubtful — — — — — — — — Loss — — — — — — — — Total Multifamily construction $ 171,147 $ 168,371 $ 170,940 $ 67,280 $ — $ — $ 8,366 $ 586,104 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — One- to four- family construction Risk Rating Pass $ 390,286 $ 161,546 $ 3,936 $ — $ — $ — $ 18,931 $ 574,699 Special Mention — — — — — — — — Substandard 2,691 — 738 — — — — 3,429 Doubtful — — — — — — — — Loss — — — — — — — — Total One- to four- family construction $ 392,977 $ 161,546 $ 4,674 $ — $ — $ — $ 18,931 $ 578,128 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — 18 Table of Contents September 30, 2025 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2025 2024 2023 2022 2021 Prior Land and land development Risk Rating Pass $ 182,319 $ 131,121 $ 40,746 $ 25,779 $ 19,557 $ 19,604 $ 4,082 $ 423,208 Special Mention — — — — — — — — Substandard 638 468 1,338 1,103 99 494 — 4,140 Doubtful — — — — — — — — Loss — — — — — — — — Total Land and land development $ 182,957 $ 131,589 $ 42,084 $ 26,882 $ 19,656 $ 20,098 $ 4,082 $ 427,348 Current period gross charge-offs $ 218 $ — $ — $ — $ — $ — $ — $ 218 Commercial business Risk Rating Pass $ 166,909 $ 119,256 $ 94,326 $ 144,140 $ 73,500 $ 272,465 $ 331,444 $ 1,202,040 Special Mention — — 1,482 65 13 215 20,776 22,551 Substandard 1,042 2,197 3,225 1,319 708 3,613 17,765 29,869 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial business $ 167,951 $ 121,453 $ 99,033 $ 145,524 $ 74,221 $ 276,293 $ 369,985 $ 1,254,460 Current period gross charge-offs $ — $ 1,694 $ 908 $ — $ 18 $ 165 $ 417 $ 3,202 Agricultural business, including secured by farmland Risk Rating Pass $ 14,266 $ 14,796 $ 35,747 $ 20,543 $ 22,862 $ 64,608 $ 139,172 $ 311,994 Special Mention — — — 670 — — 389 1,059 Substandard 6,569 1,229 4,540 8,427 1,239 11,625 8,202 41,831 Doubtful — — — — — — — — Loss — — — — — — — — Total Agricultural business, including secured by farmland $ 20,835 $ 16,025 $ 40,287 $ 29,640 $ 24,101 $ 76,233 $ 147,763 $ 354,884 Current period gross charge-offs $ — $ — $ 730 $ 361 $ — $ 1,325 $ — $ 2,416 19 Table of Contents December 31, 2024 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2024 2023 2022 2021 2020 Prior Commercial real estate - owner occupied Risk Rating Pass $ 188,895 $ 171,046 $ 120,470 $ 152,940 $ 107,495 $ 174,221 $ 56,699 $ 971,766 Special Mention 2,452 — — — 9,444 — 1,997 13,893 Substandard — 292 22,020 2,182 — 17,273 — 41,767 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial real estate - owner occupied $ 191,347 $ 171,338 $ 142,490 $ 155,122 $ 116,939 $ 191,494 $ 58,696 $ 1,027,426 Current period gross charge-offs $ — $ — $ 351 $ — $ — $ — $ — $ 351 Commercial real estate - investment properties Risk Rating Pass $ 128,132 $ 144,473 $ 209,107 $ 270,202 $ 142,808 $ 659,253 $ 51,925 $ 1,605,900 Special Mention — — — — — 2,649 2,027 4,676 Substandard — — 5,724 — — 7,372 — 13,096 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial real estate - investment properties $ 128,132 $ 144,473 $ 214,831 $ 270,202 $ 142,808 $ 669,274 $ 53,952 $ 1,623,672 Multifamily real estate Risk Rating Pass $ 124,675 $ 87,955 $ 206,373 $ 205,964 $ 94,637 $ 170,235 $ 2,461 $ 892,300 Special Mention — — — — — — — — Substandard — — — — — 2,125 — 2,125 Doubtful — — — — — — — — Loss — — — — — — — — Total Multifamily real estate $ 124,675 $ 87,955 $ 206,373 $ 205,964 $ 94,637 $ 172,360 $ 2,461 $ 894,425 20 Table of Contents December 31, 2024 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2024 2023 2022 2021 2020 Prior Commercial construction Risk Rating Pass $ 75,095 $ 34,032 $ 12,481 $ — $ — $ — $ — $ 121,608 Special Mention — — — — — — — — Substandard — — — 754 — — — 754 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial construction $ 75,095 $ 34,032 $ 12,481 $ 754 $ — $ — $ — $ 122,362 Multifamily construction Risk Rating Pass $ 151,244 $ 226,411 $ 121,706 $ — $ — $ — $ 14,345 $ 513,706 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Multifamily construction $ 151,244 $ 226,411 $ 121,706 $ — $ — $ — $ 14,345 $ 513,706 One- to four- family construction Risk Rating Pass $ 445,602 $ 50,521 $ 10,744 $ — $ — $ — $ 322 $ 507,189 Special Mention — — — — — — — — Substandard 6,293 738 — — — — — 7,031 Doubtful — — — — — — — — Loss — — — — — — — — Total One- to four- family construction $ 451,895 $ 51,259 $ 10,744 $ — $ — $ — $ 322 $ 514,220 Current period gross charge-offs $ — $ — $ 150 $ — $ — $ — $ — $ 150 21 Table of Contents December 31, 2024 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2024 2023 2022 2021 2020 Prior Land and land development Risk Rating Pass $ 197,490 $ 85,344 $ 33,283 $ 22,897 $ 9,575 $ 13,871 $ 1,106 $ 363,566 Special Mention — — — — — — — — Substandard 3,764 1,098 396 277 562 — — 6,097 Doubtful — — — — — — — — Loss — — — — — — — — Total Land and land development $ 201,254 $ 86,442 $ 33,679 $ 23,174 $ 10,137 $ 13,871 $ 1,106 $ 369,663 Commercial business Risk Rating Pass $ 168,794 $ 129,476 $ 186,001 $ 97,590 $ 108,881 $ 192,416 $ 365,770 $ 1,248,928 Special Mention 241 — 657 818 — 727 12,022 14,465 Substandard 2,889 1,714 547 947 3,214 2,274 43,355 54,940 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial business $ 171,924 $ 131,190 $ 187,205 $ 99,355 $ 112,095 $ 195,417 $ 421,147 $ 1,318,333 Current period gross charge-offs $ 2,301 $ 418 $ — $ 689 $ — $ 54 $ 558 $ 4,020 Agricultural business, including secured by farmland Risk Rating Pass $ 22,330 $ 40,228 $ 19,475 $ 22,117 $ 12,746 $ 53,884 $ 127,755 $ 298,535 Special Mention — — 670 — — — 6,684 7,354 Substandard 1,962 8,980 9,999 1,183 3,367 8,850 50 34,391 Doubtful — — — — — — — — Loss — — — — — — — — Total Agricultural business, including secured by farmland $ 24,292 $ 49,208 $ 30,144 $ 23,300 $ 16,113 $ 62,734 $ 134,489 $ 340,280 22 Table of Contents The following tables present the Company’s portfolio of non-risk-rated loans by class and delinquency status as of September 30, 2025 and December 31, 2024 (in thousands). In addition, the tables include the gross charge-offs for the nine months ended September 30, 2025 and the year ended December 31, 2024. Revolving loans that are converted to term loans are treated as new originations in the tables below and are presented by year of origination. Term loans that are renewed or extended for periods longer than 90 days are presented as a new origination in the year of the most recent renewal or extension. September 30, 2025 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2025 2024 2023 2022 2021 Prior Small balance CRE Past Due Category Current $ 78,673 $ 71,379 $ 83,986 $ 201,274 $ 204,521 $ 569,611 $ — $ 1,209,444 30-59 Days Past Due — — — — — 119 — 119 60-89 Days Past Due — — 67 — 453 — — 520 90 Days + Past Due — — — — — 274 — 274 Total Small balance CRE $ 78,673 $ 71,379 $ 84,053 $ 201,274 $ 204,974 $ 570,004 $ — $ 1,210,357 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Small business scored Past Due Category Current $ 177,772 $ 193,616 $ 154,402 $ 210,999 $ 130,702 $ 162,228 $ 140,830 $ 1,170,549 30-59 Days Past Due 9 305 351 1,394 10 219 146 2,434 60-89 Days Past Due — 50 49 1,211 2 — 31 1,343 90 Days + Past Due 483 216 1,006 136 231 491 — 2,563 Total Small business scored $ 178,264 $ 194,187 $ 155,808 $ 213,740 $ 130,945 $ 162,938 $ 141,007 $ 1,176,889 Current period gross charge-offs $ 53 $ 108 $ 620 $ 526 $ 142 $ 60 $ — $ 1,509 One- to four- family residential Past Due Category Current $ 85,726 $ 203,381 $ 289,222 $ 511,006 $ 230,250 $ 242,897 $ — $ 1,562,482 30-59 Days Past Due — — — — — 370 — 370 60-89 Days Past Due — 1,623 1,094 775 188 1,137 — 4,817 90 Days + Past Due — 2,509 1,876 4,281 4,199 2,071 — 14,936 Total One- to four- family residential $ 85,726 $ 207,513 $ 292,192 $ 516,062 $ 234,637 $ 246,475 $ — $ 1,582,605 Current period gross charge-offs $ — $ — $ — $ — $ — $ 13 $ — $ 13 23 Table of Contents September 30, 2025 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2025 2024 2023 2022 2021 Prior Consumer—home equity revolving lines of credit Past Due Category Current $ 3,980 $ 1,143 $ 1,477 $ 6,251 $ 3,158 $ 8,662 $ 617,687 $ 642,358 30-59 Days Past Due — — 320 385 413 563 2,091 3,772 60-89 Days Past Due — 100 392 99 70 307 — 968 90 Days + Past Due — — 716 513 — 861 — 2,090 Total Consumer—home equity revolving lines of credit $ 3,980 $ 1,243 $ 2,905 $ 7,248 $ 3,641 $ 10,393 $ 619,778 $ 649,188 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer-other Past Due Category Current $ 8,830 $ 6,821 $ 4,457 $ 21,576 $ 6,702 $ 20,160 $ 22,105 $ 90,651 30-59 Days Past Due — — 8 75 — 34 211 328 60-89 Days Past Due — — — — 4 34 78 116 90 Days + Past Due — — — 5 — — — 5 Total Consumer-other $ 8,830 $ 6,821 $ 4,465 $ 21,656 $ 6,706 $ 20,228 $ 22,394 $ 91,100 Current period gross charge-offs $ 10 $ 18 $ 56 $ 77 $ 46 $ 152 $ 853 $ 1,212 24 Table of Contents December 31, 2024 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2024 2023 2022 2021 2020 Prior Small balance CRE Past Due Category Current $ 66,708 $ 87,829 $ 198,461 $ 209,983 $ 166,244 $ 484,567 $ — $ 1,213,792 30-59 Days Past Due — — — — — — — — 60-89 Days Past Due — — — — — — — — 90 Days + Past Due — — — — — — — — Total Small balance CRE $ 66,708 $ 87,829 $ 198,461 $ 209,983 $ 166,244 $ 484,567 $ — $ 1,213,792 Small business scored Past Due Category Current $ 209,692 $ 172,327 $ 236,769 $ 146,220 $ 69,795 $ 123,250 $ 139,836 $ 1,097,889 30-59 Days Past Due 16 62 1,084 650 104 523 523 2,962 60-89 Days Past Due — 823 75 252 — 88 30 1,268 90 Days + Past Due — 135 1,349 343 5 166 — 1,998 Total Small business scored $ 209,708 $ 173,347 $ 239,277 $ 147,465 $ 69,904 $ 124,027 $ 140,389 $ 1,104,117 Current period gross charge-offs $ 82 $ 122 $ 522 $ 575 $ 47 $ 587 $ — $ 1,935 One- to four- family residential Past Due Category Current $ 219,254 $ 306,523 $ 537,271 $ 246,070 $ 51,761 $ 207,017 $ — $ 1,567,896 30-59 Days Past Due 1,743 1,731 2,733 762 469 1,818 — 9,256 60-89 Days Past Due 533 570 1,635 270 442 1,099 — 4,549 90 Days + Past Due — 2,000 2,459 2,983 1,156 961 — 9,559 Total One- to four- family residential $ 221,530 $ 310,824 $ 544,098 $ 250,085 $ 53,828 $ 210,895 $ — $ 1,591,260 25 Table of Contents December 31, 2024 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2024 2023 2022 2021 2020 Prior Consumer—home equity revolving lines of credit Past Due Category Current $ 4,551 $ 975 $ 6,884 $ 1,964 $ 2,243 $ 6,582 $ 595,115 $ 618,314 30-59 Days Past Due — 100 1,571 98 — 335 1,532 3,636 60-89 Days Past Due — — 237 561 — 384 136 1,318 90 Days + Past Due — 766 247 190 190 1,019 — 2,412 Total Consumer—home equity revolving lines of credit $ 4,551 $ 1,841 $ 8,939 $ 2,813 $ 2,433 $ 8,320 $ 596,783 $ 625,680 Current period gross charge-offs $ — $ — $ 58 $ — $ 11 $ 1 $ 110 $ 180 Consumer-other Past Due Category Current $ 9,329 $ 6,333 $ 25,334 $ 8,243 $ 5,390 $ 17,374 $ 23,185 $ 95,188 30-59 Days Past Due 5 — 54 — 3 88 166 316 60-89 Days Past Due 2 15 20 39 — 1 94 171 90 Days + Past Due — — 45 — — — — 45 Total Consumer-other $ 9,336 $ 6,348 $ 25,453 $ 8,282 $ 5,393 $ 17,463 $ 23,445 $ 95,720 Current period gross charge-offs $ 9 $ 50 $ 105 $ 71 $ 37 $ 211 $ 1,247 $ 1,730 26 Table of Contents The following tables provide the amortized cost basis of collateral-dependent loans as of September 30, 2025 and December 31, 2024 (in thousands). Our collateral dependent loans presented in the tables below have no significant concentrations by property type or location. September 30, 2025 Real Estate Equipment Inventory Total Commercial real estate: Small balance CRE $ 453 $ — $ — $ 453 One- to four-family construction 738 — — 738 Land and land development 1,334 — — 1,334 Commercial business Commercial business — — 1,460 1,460 Small business scored 235 — — 235 Agricultural business, including secured by farmland 4,218 1,491 — 5,709 One- to four-family residential 9,549 — — 9,549 Consumer: Consumer—home equity revolving lines of credit 895 — — 895 Total $ 17,422 $ 1,491 $ 1,460 $ 20,373 December 31, 2024 Real Estate Accounts Receivable Equipment Inventory Total Commercial real estate: Owner-occupied $ 2,182 $ — $ — $ — $ 2,182 One- to four-family construction 1,834 — — — 1,834 Land and land development 1,622 — — — 1,622 Commercial business Commercial business — 1,789 1,660 427 3,876 Small business scored 623 — — — 623 Agricultural business, including secured by farmland 5,013 — 3,447 — 8,460 One- to four-family residential 5,374 — — — 5,374 Consumer—home equity revolving lines of credit 977 — — — 977 Total $ 17,625 $ 1,789 $ 5,107 $ 427 $ 24,948 27 Table of Contents The following tables provide additional detail on the age analysis of the Company’s past due loans as of September 30, 2025 and December 31, 2024 (in thousands): September 30, 2025 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Non-accrual with no Allowance Total Non-accrual (1) Loans 90 Days or More Past Due and Accruing Commercial real estate: Owner-occupied $ — $ — $ 9 $ 9 $ 1,134,550 $ 1,134,559 $ 9 $ 9 $ — Investment properties — — — — 1,652,141 1,652,141 — — — Small balance CRE 119 520 274 913 1,209,444 1,210,357 451 451 274 Multifamily real estate — — — — 860,650 860,650 — — — Construction, land and land development: Commercial construction — — — — 144,125 144,125 — — — Multifamily construction — — — — 586,104 586,104 — — — One- to four-family construction — — 737 737 577,391 578,128 738 738 — Land and land development — 146 2,749 2,895 424,453 427,348 753 3,502 — Commercial business: Commercial business 1,808 — 2,553 4,361 1,250,099 1,254,460 2 3,196 — Small business scored 2,434 1,343 2,563 6,340 1,170,549 1,176,889 233 3,628 166 Agricultural business, including secured by farmland 169 1,155 1,548 2,872 352,012 354,884 2,644 5,765 — One- to four-family residential 370 4,817 14,936 20,123 1,562,482 1,582,605 9,053 16,576 834 Consumer: Consumer—home equity revolving lines of credit 3,772 968 2,090 6,830 642,358 649,188 895 4,872 — Consumer—other 328 116 5 449 90,651 91,100 — 5 — Total $ 9,000 $ 9,065 $ 27,464 $ 45,529 $ 11,657,009 $ 11,702,538 $ 14,778 $ 38,742 $ 1,274 (1) The Company did not recognize any interest income on non-accrual loans during the nine months ended September 30, 2025. 28 Table of Contents December 31, 2024 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Non-accrual with no Allowance Total Non-accrual (1) Loans 90 Days or More Past Due and Accruing Commercial real estate: Owner-occupied $ — $ — $ 2,182 $ 2,182 $ 1,025,244 $ 1,027,426 $ — $ 2,182 $ — Investment properties — — — — 1,623,672 1,623,672 — — — Small balance CRE — — — — 1,213,792 1,213,792 — 4 — Multifamily real estate — — — — 894,425 894,425 — — — Construction, land and land development: Commercial construction 754 — — 754 121,608 122,362 — — — Multifamily construction — — — — 513,706 513,706 — — — One- to four-family construction — — 738 738 513,482 514,220 1,834 1,834 — Land and land development 1,600 796 1,568 3,964 365,699 369,663 1,622 2,129 — Commercial business: Commercial business 2,025 — 1,012 3,037 1,315,296 1,318,333 123 4,103 — Small business scored 2,962 1,268 1,998 6,228 1,097,889 1,104,117 623 2,964 — Agricultural business, including secured by farmland 190 — 7,077 7,267 333,013 340,280 4,829 8,485 — One-to four-family residential 9,256 4,549 9,559 23,364 1,567,896 1,591,260 5,374 10,016 369 Consumer: Consumer—home equity revolving lines of credit 3,636 1,318 2,412 7,366 618,314 625,680 977 4,790 35 Consumer—other 316 171 45 532 95,188 95,720 — 45 — Total $ 20,739 $ 8,102 $ 26,591 $ 55,432 $ 11,299,224 $ 11,354,656 $ 15,382 $ 36,552 $ 404 (1) The Company did not recognize any interest income on non-accrual loans during the year ended December 31, 2024. 29 Table of Contents The following tables provide the activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2025 and 2024 (in thousands): For the Three Months Ended September 30, 2025 Commercial Real Estate Multifamily Real Estate Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Total Allowance for credit losses - loans: Beginning balance $ 41,036 $ 9,918 $ 34,124 $ 38,591 $ 6,216 $ 20,917 $ 9,699 $ 160,501 Provision/(recapture) for credit losses 119 ( 17 ) 513 ( 526 ) 1,007 ( 445 ) 733 1,384 Recoveries 36 — 725 99 99 13 78 1,050 Charge-offs — — ( 218 ) ( 518 ) ( 2,054 ) — ( 438 ) ( 3,228 ) Ending balance $ 41,191 $ 9,901 $ 35,144 $ 37,646 $ 5,268 $ 20,485 $ 10,072 $ 159,707 For the Nine Months Ended September 30, 2025 Commercial Real Estate Multifamily Real Estate Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Total Allowance for credit losses - loans: Beginning balance $ 40,830 $ 10,308 $ 29,038 $ 38,611 $ 5,727 $ 20,807 $ 10,200 $ 155,521 Provision/(recapture) for credit losses 215 ( 407 ) 5,599 2,729 1,847 ( 568 ) 719 10,134 Recoveries 146 — 725 1,017 110 259 365 2,622 Charge-offs — — ( 218 ) ( 4,711 ) ( 2,416 ) ( 13 ) ( 1,212 ) ( 8,570 ) Ending balance $ 41,191 $ 9,901 $ 35,144 $ 37,646 $ 5,268 $ 20,485 $ 10,072 $ 159,707 30 Table of Contents For the Three Months Ended September 30, 2024 Commercial Real Estate Multifamily Real Estate Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Total Allowance for credit losses - loans: Beginning balance $ 39,064 $ 8,253 $ 31,597 $ 38,835 $ 4,045 $ 20,906 $ 10,148 $ 152,848 Provision/(recapture) for credit losses 911 1,980 ( 3,130 ) 745 1,294 ( 457 ) 624 1,967 Recoveries 65 — — 613 1 14 41 734 Charge-offs — — ( 145 ) ( 414 ) — — ( 405 ) ( 964 ) Ending balance $ 40,040 $ 10,233 $ 28,322 $ 39,779 $ 5,340 $ 20,463 $ 10,408 $ 154,585 For the Nine Months Ended September 30, 2024 Commercial Real Estate Multifamily Real Estate Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Total Allowance for credit losses - loans: Beginning balance $ 44,384 $ 9,326 $ 28,095 $ 35,464 $ 3,865 $ 19,271 $ 9,238 $ 149,643 (Recapture)/provision for credit losses ( 5,549 ) 907 372 4,957 1,173 1,145 2,339 5,344 Recoveries 1,552 — — 1,718 302 47 312 3,931 Charge-offs ( 347 ) — ( 145 ) ( 2,360 ) — — ( 1,481 ) ( 4,333 ) Ending balance $ 40,040 $ 10,233 $ 28,322 $ 39,779 $ 5,340 $ 20,463 $ 10,408 $ 154,585 31 Table of Contents Note 5: GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS Goodwill and Other Intangible Assets: At September 30, 2025, intangible assets are comprised of goodwill and core deposit intangibles (CDI) acquired in business combinations. Goodwill represents the excess of the purchase consideration paid over the fair value of the assets acquired, net of the fair values of liabilities assumed in a business combination, and is not amortized but is reviewed at least annually for impairment. The Company has identified one reporting unit for the purpose of evaluating goodwill for impairment. The Company completed an assessment of qualitative factors as of December 31, 2024 and concluded that no further analysis was required as it was more likely than not that the fair value of the reporting unit exceeded the carrying value. CDI represents the value of transaction-related deposits and the value of the client relationships associated with the deposits. The Company amortizes CDI assets over their estimated useful lives and reviews them at least annually for events or circumstances that could impair their value. The following table summarizes the changes in the Company’s goodwill and other intangibles for the year ended December 31, 2024 and the nine months ended September 30, 2025 (in thousands): Goodwill CDI Total Balance, December 31, 2023 $ 373,121 $ 5,684 $ 378,805 Amortization — ( 2,626 ) ( 2,626 ) Balance, December 31, 2024 373,121 3,058 376,179 Amortization — ( 1,252 ) ( 1,252 ) Balance, September 30, 2025 $ 373,121 $ 1,806 $ 374,927 The following table presents the estimated amortization expense with respect to CDI as of September 30, 2025, for the periods indicated (in thousands): Estimated Amortization Remainder of 2025 $ 315 2026 904 2027 426 2028 126 2029 35 $ 1,806 Mortgage Servicing Rights: Mortgage and Small Business Administration (SBA) servicing rights are reported in other assets. SBA servicing rights are initially recorded and carried at fair value. Mortgage servicing rights are initially recognized at fair value and are amortized in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Mortgage servicing rights are subsequently evaluated for impairment based upon the fair value of the rights compared to the amortized cost (remaining unamortized initial fair value). If the fair value is less than the amortized cost, a valuation allowance is created through an impairment charge to servicing fee income. However, if the fair value is greater than the amortized cost, the amount above the amortized cost is not recognized in the carrying value. The unpaid principal balance of loans for which mortgage and SBA servicing rights have been recognized totaled $ 2.80 billion and $ 2.84 billion at September 30, 2025 and December 31, 2024, respectively. Custodial accounts maintained in connection with this servicing totaled $ 30.5 million and $ 12.2 million at September 30, 2025 and December 31, 2024, respectively. 32 Table of Contents An analysis of the mortgage and SBA servicing rights for the three and nine months ended September 30, 2025 and 2024 is presented below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Balance, beginning of the period $ 13,265 $ 14,010 $ 13,487 $ 14,649 Additions—amounts capitalized 550 391 1,793 1,175 Additions—through purchase — 56 2 165 Amortization (1) ( 815 ) ( 827 ) ( 2,451 ) ( 2,430 ) Fair value adjustments (2) 84 ( 21 ) 253 50 Impairment valuation adjustments (3) — ( 6 ) — ( 6 ) Balance, end of the period $ 13,084 $ 13,603 $ 13,084 $ 13,603 (1) Amortization of mortgage servicing rights is recorded as a reduction of loan servicing income within mortgage banking operations and any unamortized balance is fully amortized if the loan repays in full. (2) Fair value adjustments relate to SBA servicing rights. These adjustments are estimated based on an independent dealer analysis by discounting estimated net future cash flows from servicing SBA loans. Note 6: DEPOSITS Deposits consisted of the following at September 30, 2025 and December 31, 2024 (in thousands): September 30, 2025 December 31, 2024 Non-interest-bearing accounts $ 4,572,338 $ 4,591,543 Interest-bearing checking 2,734,822 2,393,864 Regular savings accounts 3,705,823 3,478,423 Money market accounts 1,462,570 1,550,896 Total interest-bearing transaction and savings accounts 7,903,215 7,423,183 Certificates of deposit: Certificates of deposit greater than or equal to $250,000 533,790 487,515 Certificates of deposit less than $250,000 1,006,592 1,012,157 Total certificates of deposit 1,540,382 1,499,672 Total deposits $ 14,015,935 $ 13,514,398 Included in total deposits: Public fund transaction and savings accounts $ 370,191 $ 414,413 Public fund interest-bearing certificates 35,660 25,423 Total public deposits $ 405,851 $ 439,836 Total brokered certificates of deposit $ 49,989 $ 50,346 Scheduled maturities and weighted average interest rates of certificates of deposit at September 30, 2025, are as follows (dollars in thousands): September 30, 2025 Amount Weighted Average Rate Maturing in one year or less $ 1,482,139 3.47 % Maturing after one year through two years 40,747 2.29 Maturing after two years through three years 9,499 0.65 Maturing after three years through four years 2,397 0.87 Maturing after four years through five years 5,112 2.75 Maturing after five years 488 0.50 Total certificates of deposit $ 1,540,382 3.41 % 33 Table of Contents Note 7: FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents estimated fair values of the Company’s financial instruments as of September 30, 2025 and December 31, 2024, whether or not recognized or recorded in the Consolidated Statements of Financial Condition (dollars in thousands): September 30, 2025 December 31, 2024 Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Assets: Cash and cash equivalents 1 $ 672,863 $ 672,863 $ 501,858 $ 501,858 Securities—available-for-sale 2 1,989,454 1,989,454 2,078,826 2,078,826 Securities—available-for-sale 3 29,071 29,071 25,685 25,685 Securities—held-to-maturity 2 965,401 809,271 995,237 819,230 Securities—held-to-maturity 3 6,202 6,163 6,327 6,298 Loans held for sale 2 20,334 20,599 32,021 32,215 Loans receivable, net 3 11,542,831 11,445,723 11,199,135 10,894,024 Equity securities 1 510 510 481 481 FHLB stock 3 14,226 14,226 22,451 22,451 Bank-owned life insurance 1 317,469 317,469 312,549 312,549 Mortgage servicing rights 3 11,962 35,526 12,618 37,926 SBA servicing rights 3 1,122 1,122 869 869 Investments in limited partnerships 3 16,929 16,929 13,955 13,955 Derivatives: Interest rate swaps 2 10,292 10,292 14,507 14,507 Interest rate lock and forward sales commitments 2,3 319 319 331 331 Liabilities: Demand, interest checking and money market accounts 2 8,769,730 8,769,730 8,536,303 8,536,303 Regular savings 2 3,705,823 3,705,823 3,478,423 3,478,423 Certificates of deposit 2 1,540,382 1,535,106 1,499,672 1,492,829 FHLB advances 2 100,000 100,000 290,000 290,000 Other borrowings 2 120,536 120,536 125,257 125,257 Subordinated notes, net 2 — — 80,278 78,832 Junior subordinated debentures 3 76,251 76,251 67,477 67,477 Derivatives: Interest rate swaps 2 19,913 19,913 30,184 30,184 Interest rate lock and forward sales commitments 2,3 106 106 2 2 Risk participation agreement 2 8 8 6 6 The Company measures and discloses certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (that is, not a forced liquidation or distressed sale). When measuring fair value, management will maximize the use of observable inputs and minimize the use of unobservable inputs whenever possible. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s estimates for market assumptions. The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize at a future date. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. 34 Table of Contents Items Measured at Fair Value on a Recurring Basis: The following tables present financial assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets and liabilities as of September 30, 2025 and December 31, 2024 (in thousands): September 30, 2025 Level 1 Level 2 Level 3 Total Assets: Securities—available-for-sale U.S. Government and agency obligations $ — $ 6,548 $ — $ 6,548 Municipal bonds — 131,215 — 131,215 Corporate bonds — 94,633 29,071 123,704 Mortgage-backed or related securities — 1,621,976 — 1,621,976 Asset-backed securities — 135,082 — 135,082 — 1,989,454 29,071 2,018,525 Loans held for sale (1) — 12,570 — 12,570 Equity securities 510 — — 510 SBA servicing rights — — 1,122 1,122 Investment in limited partnerships — — 16,929 16,929 Derivatives Interest rate swaps — 10,292 — 10,292 Interest rate lock and forward sales commitments — — 319 319 $ 510 $ 2,012,316 $ 47,441 $ 2,060,267 Liabilities: Junior subordinated debentures $ — $ — $ 76,251 $ 76,251 Derivatives Interest rate swaps — 19,913 — 19,913 Interest rate lock and forward sales commitments — 44 62 106 Risk participation agreement — 8 — 8 $ — $ 19,965 $ 76,313 $ 96,278 35 Table of Contents December 31, 2024 Level 1 Level 2 Level 3 Total Assets: Securities—available-for-sale U.S. Government and agency obligations $ — $ 7,933 $ — $ 7,933 Municipal bonds — 123,982 — 123,982 Corporate bonds — 99,305 25,685 124,990 Mortgage-backed or related securities — 1,676,848 — 1,676,848 Asset-backed securities — 170,758 — 170,758 — 2,078,826 25,685 2,104,511 Loans held for sale (1) — 26,185 — 26,185 Equity securities 481 — — 481 SBA servicing rights — — 869 869 Investment in limited partnerships — — 13,955 13,955 Derivatives Interest rate swaps — 14,507 — 14,507 Interest rate lock and forward sales commitments — 221 110 331 $ 481 $ 2,119,739 $ 40,619 $ 2,160,839 Liabilities: Junior subordinated debentures $ — $ — $ 67,477 $ 67,477 Derivatives Interest rate swaps — 30,184 — 30,184 Interest rate lock and forward sales commitments — — 2 2 Risk participation agreement — 6 — 6 $ — $ 30,190 $ 67,479 $ 97,669 (1) The unpaid principal balance of residential mortgage loans held for sale carried at fair value on a recurring basis was $ 12.2 million and $ 25.7 million at September 30, 2025 and December 31, 2024, respectively. The following methods were used to estimate the fair value of each class of financial instruments above: Securities: The estimated fair values of investment securities and mortgage-backed securities are priced using current active market quotes, if available, which are considered Level 1 measurements. For most of the portfolio, matrix pricing based on the securities’ relationship to other benchmark quoted prices is used to establish the fair value. These measurements are considered Level 2. Due to the continued limited activity in the trust preferred markets that have limited the observability of market spreads for some of the Company’s trust preferred securities (TPS), management has classified these securities, included in Corporate Bonds, as a Level 3 fair value measure. Management periodically reviews the pricing information received from third-party pricing services and tests those prices against other sources to validate the reported fair values. Loans Held for Sale: Fair values for residential mortgage loans held for sale are determined by comparing actual loan rates to current secondary market prices for similar loans. Equity Securities: Equity securities are invested in a publicly traded stock. The fair value of these securities is based on daily quoted market prices. Investments in Limited Partnerships: Fair values are estimated using the practical expedient method based on our ownership interest in partners’ capital to which a proportionate share of net assets is attributed, for each limited partnership. SBA Servicing Rights: Fair values are estimated based on an independent dealer analysis by discounting estimated net future cash flows from servicing. The evaluation utilizes assumptions market participants would use in determining fair value including prepayment speeds, delinquency and foreclosure rates, the discount rate, servicing costs, and the timing of cash flows. The SBA servicing portfolio is stratified by loan type and fair value estimates are adjusted up or down based on the serviced loan interest rates versus current rates on new loan originations since the most recent independent analysis. 36 Table of Contents Junior Subordinated Debentures: The fair value of junior subordinated debentures is estimated using an income approach technique. The significant inputs included in the estimation of fair value are the credit risk adjusted spread and three month SOFR (Secured Overnight Financing Rate). The credit risk adjusted spread represents the nonperformance risk of the liability. The Company utilizes an external valuation firm to validate the reasonableness of the credit risk adjusted spread used to determine the fair value. The junior subordinated debentures are carried at fair value which represents the estimated amount that would be paid to transfer these liabilities in an orderly transaction amongst market participants. Due to inactivity in the trust preferred markets that have limited the observability of market spreads, management has classified this as a Level 3 fair value measurement. Derivatives: Derivatives include interest rate swap agreements, interest rate lock commitments to originate loans held for sale, forward sales contracts to sell loans and securities related to mortgage banking activities and risk participation agreements. Fair values for these instruments, which generally change as a result of changes in the level of market interest rates, are estimated based on dealer quotes and secondary market sources. As the interest rate lock commitments use a pull-through rate that is considered an unobservable input, these derivatives are classified as a level 3 fair value measurement. Off-Balance Sheet Items: Off-balance sheet financial instruments include unfunded commitments to extend credit, including standby letters of credit, and commitments to purchase investment securities. The fair value of these instruments is not considered to be material. Limitations: The fair value estimates presented herein are based on pertinent information available to management as of September 30, 2025 and December 31, 2024. The factors used in the fair value estimates are subject to change subsequent to the dates the fair value estimates are completed, therefore, current estimates of fair value may differ significantly from the amounts presented herein. Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3): The following table provides a description of the valuation technique, unobservable inputs, and quantitative and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring and non-recurring basis at September 30, 2025 and December 31, 2024: Weighted Average Rate or Range Financial Instruments Valuation Technique Unobservable Inputs September 30, 2025 December 31, 2024 Corporate bonds (TPS) Discounted cash flows Discount rate 7.74 % 9.57 % Junior subordinated debentures Discounted cash flows Discount rate 7.74 % 9.57 % Loans individually evaluated Collateral valuations Discount to appraised value 0 % to 50 % 0 % to 75 % Interest rate lock commitments Pricing model Pull-through rate 90.11 % 92.34 % SBA servicing rights Discounted cash flows Constant prepayment rate 17.78 % 18.85 % Trust preferred securities : Management believes that the credit risk-adjusted spread used to develop the discount rate utilized in the fair value measurement of TPS is indicative of the risk premium a willing market participant would require under current market conditions for instruments with similar contractual rates and terms and conditions and issuers with similar credit risk profiles and with similar expected probability of default. Management attributes the change in fair value of these instruments, compared to their par value, primarily to perceived general market adjustments to the risk premiums for these types of assets subsequent to their issuance. Junior subordinated debentures : Similar to the TPS discussed above, management believes that the credit risk-adjusted spread utilized in the fair value measurement of the junior subordinated debentures is indicative of the risk premium a willing market participant would require under current market conditions for an issuer with Banner’s credit risk profile. Management attributes the change in fair value of the junior subordinated debentures, compared to their par value, primarily to perceived general market adjustments to the risk premiums for these types of liabilities subsequent to their issuance. Future contractions in the risk adjusted spread relative to the spread currently utilized to measure the Company’s junior subordinated debentures at fair value as of September 30, 2025, or the passage of time, will result in negative fair value adjustments. At September 30, 2025, the discount rate utilized was based on a credit spread of 376 basis points and three-month SOFR of 398 basis points. Interest rate lock commitments: The fair value of the interest rate lock commitments is based on secondary market sources adjusted for an estimated pull-through rate. The pull-through rate is based on historical loan closing rates for similar interest rate lock commitments. An increase or decrease in the pull-through rate would have a corresponding, positive or negative fair value adjustment. SBA servicing asset: The constant prepayment rate (CPR) is set based on industry data. An increase in the CPR would result in a negative fair value adjustment, where a decrease in CPR would result in a positive fair value adjustment. 37 Table of Contents The following tables provide a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine months ended September 30, 2025 and 2024 (in thousands): Three Months Ended September 30, 2025 Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures Interest Rate Lock and Forward Sales Commitments Investments in Limited Partnerships SBA Servicing Asset Beginning balance $ 27,944 $ 73,366 $ 491 $ 15,560 $ 1,038 Net change recognized in earnings 81 — ( 234 ) 225 84 Net change recognized in accumulated other comprehensive income (AOCI) 1,046 2,885 — — — Purchases, issuances and settlements — — — 649 — Ending balance at September 30, 2025 $ 29,071 $ 76,251 $ 257 $ 16,434 $ 1,122 Nine Months Ended September 30, 2025 Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures Interest Rate Lock and Forward Sales Commitments Investments in Limited Partnerships SBA Servicing Asset Beginning balance $ 25,685 $ 67,477 $ 108 $ 13,955 $ 869 Net change recognized in earnings 234 — 149 597 253 Net change recognized in AOCI 3,152 8,774 — — — Purchases, issuances and settlements — — — 1,882 — Ending balance at September 30, 2025 $ 29,071 $ 76,251 $ 257 $ 16,434 $ 1,122 Three Months Ended September 30, 2024 Level 3 Fair Value Inputs TPS Borrowings—Junior Subordinated Debentures Interest Rate Lock and Forward Sales Commitments Investments in Limited Partnerships SBA Servicing Asset Beginning balance $ 25,433 $ 66,831 $ 257 $ 13,417 $ 811 Net change recognized in earnings 66 — 84 ( 43 ) ( 21 ) Net change recognized in AOCI ( 280 ) ( 574 ) — — — Purchases, issuances and settlements — — — 208 — Ending balance at September 30, 2024 $ 25,219 $ 66,257 $ 341 $ 13,582 $ 790 Nine Months Ended September 30, 2024 Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures Interest Rate Lock and Forward Sales Commitments Investments in Limited Partnerships SBA Servicing Asset Beginning balance $ 25,304 $ 66,413 $ 251 $ 13,475 $ 740 Net change recognized in earnings 195 — 90 ( 1,137 ) 50 Net change recognized in AOCI ( 280 ) ( 156 ) — — — Purchases, issuances and settlements — — — 1,244 — Ending balance at September 30, 2024 $ 25,219 $ 66,257 $ 341 $ 13,582 $ 790 Interest income, dividends and amortization related to TPS are recorded as a component of interest income. Interest expense related to the junior subordinated debentures is measured based on contractual interest rates and reported in interest expense. The change in fair value of the junior subordinated debentures, which represents changes in instrument specific credit risk, and the change in fair value of TPS securities are recorded in other comprehensive income. The change in fair value of investments in limited partnerships and the SBA servicing asset are recorded as a component of non-interest income. The change in fair value of the interest rate lock and forward sales commitments are included in mortgage banking operations in non-interest income. 38 Table of Contents Items Measured at Fair Value on a Non-recurring Basis: The following tables present financial assets and liabilities measured at fair value on a non-recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets as of September 30, 2025 and December 31, 2024 (in thousands): September 30, 2025 Level 1 Level 2 Level 3 Total Loans individually evaluated $ — $ — $ 5,879 $ 5,879 Real estate owned (REO) — — 5,272 5,272 December 31, 2024 Level 1 Level 2 Level 3 Total Loans individually evaluated $ — $ — $ 6,590 $ 6,590 REO — — 2,367 2,367 The following table presents the gains and losses resulting from non-recurring fair value adjustments for the three and nine months ended September 30, 2025 and 2024 (in thousands). Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Loans individually evaluated $ ( 730 ) $ — $ ( 730 ) $ ( 347 ) Loans individually evaluated : Expected credit losses for loans evaluated individually are measured based on the present value of expected future cash flows discounted at the loan’s original effective interest rate or when the Bank determines that foreclosure is probable, the expected credit loss is measured based on the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. As a practical expedient, the Bank measures the expected credit loss for a loan using the fair value of the collateral, if repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty based on the Bank’s assessment as of the reporting date. In both cases, if the fair value of the collateral is less than the amortized cost basis of the loan, the Bank will recognize an allowance as the difference between the fair value of the collateral, less costs to sell (if applicable) and the amortized cost basis of the loan. If the fair value of the collateral exceeds the amortized cost basis of the loan, any expected recovery added to the amortized cost basis will be limited to the amount previously charged-off. Subsequent changes in the expected credit losses for loans evaluated individually are included within the provision for credit losses in the same manner in which the expected credit loss initially was recognized or as a reduction in the provision that would otherwise be reported. REO : The Company records REO (acquired through a lending relationship) at fair value on a non-recurring basis. Fair value adjustments on REO are based on updated real estate appraisals which are based on current market conditions. All REO properties are recorded at the lower of the estimated fair value of the real estate, less expected selling costs, or the carrying amount of the defaulted loans. From time to time, non-recurring fair value adjustments to REO are recorded to reflect partial write-downs based on an observable market price or current appraised value of property. Banner considers any valuation inputs related to REO to be Level 3 inputs. The individual carrying values of these assets are reviewed for impairment at least annually and any additional impairment charges are expensed. Note 8: INCOME TAXES, DEFERRED TAXES, AND TAX CREDIT INVESTMENTS As of September 30, 2025, the Company had a net deferred tax asset of $ 130.4 million. In addition, the Company has estimated $ 2.0 million of unrecognized tax benefits related to uncertain tax positions. The Company recorded income tax expense of $ 33.7 million and $ 28.9 million for the nine months ended September 30, 2025 and 2024, respectively, representing effective tax rates of 18.9 % and 19.1 %, respectively. The effective tax rates differed from the statutory rate principally due to the effects of tax-exempt income, certain tax credits, and tax benefits related to restricted stock vesting. Tax credit investments: The Company invests in low income housing tax credit funds that are designed to generate a return primarily through the realization of federal tax credits. The Company accounts for these investments by amortizing the cost of tax credit investments over the life of the investment using a proportional amortization method and this tax credit investment amortization expense is a component of the provision for income taxes. The current balance of these tax credit investments is included in other assets, while the unfunded commitments are included in accrued expenses and other liabilities on the Consolidated Statements of Financial Condition. 39 Table of Contents The following table presents the balances of the Company’s tax credit investments and related unfunded commitments at September 30, 2025 and December 31, 2024 (in thousands): September 30, 2025 December 31, 2024 Tax Credit Investments: Total commitments $ 193,160 $ 153,618 Unfunded commitments 112,518 94,416 The following table presents other information related to the Company’s tax credit investments for the three and nine months ended September 30, 2025 and 2024 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Tax credits and other tax benefits recognized $ 4,380 $ 2,760 $ 13,139 $ 9,086 Tax credit amortization expense included in provision for income taxes 3,438 2,559 10,458 7,577 Note 9: CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS PER SHARE (EPS) The following table reconciles basic to diluted weighted average shares outstanding used to calculate earnings per share data for the three and nine months ended September 30, 2025 and 2024 (in thousands, except shares and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income $ 53,502 $ 45,153 $ 144,133 $ 122,507 Basic weighted average shares outstanding 34,494,824 34,498,830 34,543,969 34,459,662 Dilutive effect of unvested restricted stock 164,522 151,492 186,134 115,836 Diluted weighted average shares outstanding 34,659,346 34,650,322 34,730,103 34,575,498 Earnings per common share Basic $ 1.55 $ 1.31 $ 4.17 $ 3.56 Diluted $ 1.54 $ 1.30 $ 4.15 $ 3.54 Anti-dilutive restricted stock excluded from the diluted weighted average shares outstanding calculation — 860 — 3,950 Note 10: STOCK-BASED COMPENSATION PLANS The Company operates the 2014 Omnibus Incentive Plan (the 2014 Plan), the 2018 Omnibus Incentive Plan (the 2018 Plan) and the 2023 Omnibus Incentive Plan (the 2023 Plan), all of which were approved by its shareholders. The purpose of these plans is to promote the success and enhance the value of the Company by providing a means for attracting and retaining highly skilled employees, officers and directors of the Company and linking their personal interests with those of the Company’s shareholders. Under these plans, the Company currently has outstanding awards of restricted stock shares and restricted stock units. The Company reserved 900,000 shares of its common stock for issuance under the 2014 Plan in connection with the exercise of awards. As of September 30, 2025, 585,516 restricted stock units have been granted under the 2014 Plan of which 96,468 restricted stock units were unvested. No further awards will be granted under the 2014 Plan. The Company reserved 900,000 shares of common stock for issuance under the 2018 Plan in connection with the exercise of awards. As of September 30, 2025, 891,029 restricted stock units have been granted under the 2018 Plan of which 221,840 restricted stock units were unvested. The Company reserved 625,000 shares of common stock for issuance under the 2023 Plan in connection with the exercise of awards. As of September 30, 2025, 7,720 restricted stock shares and 122,370 restricted stock units have been granted under the 2023 Plan of which 2,793 restricted stock shares and 112,572 restricted stock units were unvested. The expense associated with all restricted stock grants (including restricted stock shares and restricted stock units) was $ 2.7 million and $ 7.6 million for the three and nine month periods ended September 30, 2025, and was $ 2.6 million and $ 7.2 million for the three and nine month periods ended September 30, 2024, respectively. Unrecognized compensation expense for these awards as of September 30, 2025, was $ 16.7 million and will be recognized over a weighted average period of 12 months. 40 Table of Contents Note 11: COMMITMENTS AND CONTINGENCIES Financial Instruments with Off-Balance Sheet Risk - The Company has financial instruments with off-balance-sheet risk generated in the normal course of business to meet the financing needs of its clients. These financial instruments include commitments to extend credit, commitments related to standby letters of credit, commitments to originate loans, commitments to sell loans, and commitments to buy or sell securities. These instruments involve, to varying degrees, elements of credit and interest rate risk similar to the risk involved in on-balance sheet items. Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument from commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. We apply the same credit policies to these commitments and conditional obligations as we do to our on-balance sheet financial instruments. Outstanding commitments consisted of the following at the dates indicated (in thousands): Contract or Notional Amount September 30, 2025 December 31, 2024 Commitments to extend credit $ 3,838,654 $ 3,857,782 Standby letters of credit and financial guarantees 19,705 28,287 Risk participation agreements 41,719 43,913 Commitments to originate loans held for sale 50,041 35,512 Commitments to sell loans secured by one- to four-family residential properties 28,000 17,963 Commitments to sell securities related to mortgage banking activities 33,000 37,500 In addition to the commitments disclosed in the table above, the Company is also committed to funding the unfunded portion of its tax credit investments, as well as the remaining unfunded portion of its investments in limited partnerships. As of September 30, 2025 and December 31, 2024, the remaining outstanding commitments related to the unfunded tax credit investments and limited partnership investments were as follows (in thousands): Unfunded commitment balance for: September 30, 2025 December 31, 2024 Tax credit investments $ 112,518 $ 94,416 Limited partnerships investments $ 11,940 $ 14,706 Commitments to extend credit are agreements to lend to a client, 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. Many of the commitments may expire without being drawn upon; therefore, the total commitment amounts do not necessarily represent future cash requirements. Each client’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the client. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income producing commercial properties. The Company’s allowance for credit losses - unfunded loan commitments at September 30, 2025 and December 31, 2024 was $ 14.0 million and $ 13.6 million, respectively. Standby letters of credit are conditional commitments issued to guarantee a client’s performance or payment to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to clients. Under a risk participation agreement, the Bank guarantees the financial performance of a borrower on the participated portion of an interest rate swap on a loan. Interest rates on one- to four-family residential loan applications are typically rate locked (committed) to clients during the application stage for periods ranging from 30 to 60 days, the most typical period being 45 days. Traditionally, these loan applications with rate lock commitments have the pricing for the sale of these loans locked with various qualified investors under a best-efforts delivery program at or near the time the interest rate is locked with the client. The Bank then attempts to deliver these loans before their rate locks expire. This arrangement generally requires delivery of the loans prior to the expiration of the rate lock. Delays in funding the loans may require a lock extension. The cost of a lock extension is sometimes covered by the client and other times by the Bank. These lock extension costs have not had a material impact to the Company’s operations. For mandatory delivery commitments the Company enters into forward commitments at specific prices and settlement dates to deliver either: (1) residential mortgage loans for purchase by secondary market investors (i.e., Freddie Mac or Fannie Mae), or (2) mortgage-backed securities to broker/dealers. The purpose of these forward commitments is to offset the movement in interest rates between the execution of its residential mortgage rate lock commitments with borrowers and the sale of those loans to the secondary market investor. There were no counterparty default losses on forward contracts during the three and nine months ended September 30, 2025 or September 30, 2024. Market risk with respect to forward contracts arises principally from changes in the value of contractual positions due to changes in interest rates. The Company limits its exposure to market risk by monitoring differences between commitments to clients and forward contracts with market investors and securities broker/dealers. In the event the Company has forward delivery contract commitments in excess of available mortgage loans, the transaction is completed by either paying or receiving a fee to or from the investor or broker/dealer equal to the increase or decrease in the market value of the forward contract. Changes in the value of rate lock commitments are recorded as assets and liabilities. 41 Table of Contents In the normal course of business, the Company and/or its subsidiaries have various legal proceedings and other contingent matters outstanding. These proceedings and the associated legal claims are often contested and the outcome of individual matters is not always predictable. These claims and counterclaims typically arise during the course of collection efforts on problem loans or with respect to action to enforce liens on properties in which the Bank holds a security interest. Based upon the information known to management, there were no legal proceedings that management believes would have a material adverse effect on the results of operations or consolidated financial position at September 30, 2025. In connection with certain asset sales, the Bank typically makes representations and warranties about the underlying assets conforming to specified guidelines. If the underlying assets do not conform to the specifications, the Bank may have an obligation to repurchase the assets or indemnify the purchaser against any loss. The Bank believes that the potential for material loss under these arrangements is remote. Accordingly, the fair value of such obligations is not material. Note 12: DERIVATIVES AND HEDGING The Company is party to various derivative instruments that are used for asset and liability management and client financing needs. Derivative instruments are contracts between two or more parties that have a notional amount and an underlying variable, require no net investment and allow for the net settlement of positions. The notional amount serves as the basis for the payment provision of the contract and takes the form of units, such as shares or dollars. The underlying variable represents a specified interest rate, index, or other component. The interaction between the notional amount and the underlying variable determines the number of units to be exchanged between the parties and influences the market value of the derivative contract. The Company’s predominant derivative and hedging activities involve interest rate swaps related to certain term loans and forward sales contracts associated with mortgage banking activities. Generally, these instruments help the Company manage exposure to market risk and meet client financing needs. Market risk represents the possibility that economic value or net interest income will be adversely affected by fluctuations in external factors such as market-driven interest rates and prices or other economic factors. As of September 30, 2025 and December 31, 2024, the notional values or contractual amounts and fair values of the Company’s derivatives were as follows (in thousands): Asset Derivatives Liability Derivatives September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024 Notional/ Contract Amount Fair Value Notional/ Contract Amount Fair Value Notional/ Contract Amount Fair Value Notional/ Contract Amount Fair Value Interest rate swaps $ 399,859 $ 19,873 $ 386,995 $ 30,134 $ 399,859 $ 19,913 $ 386,995 $ 30,184 Master netting agreements ( 9,581 ) ( 15,627 ) — — Cash offset/(settlement) — — — — Net interest rate swaps 10,292 14,507 19,913 30,184 Risk participation agreements 642 — 817 — 41,077 8 43,097 6 Mortgage loan commitments 50,041 319 30,085 108 — — 5,427 2 Forward sales contracts 6,788 — 49,628 223 46,449 106 — — Total $ 457,330 $ 10,611 $ 467,525 $ 14,838 $ 487,385 $ 20,027 $ 435,519 $ 30,192 The Company’s asset derivatives are included in other assets, while the liability derivatives are included in accrued expenses and other liabilities on the Consolidated Statements of Financial Condition. Interest Rate Swaps: The Bank offers an interest rate swap program for commercial loan clients that provides the client with a variable-rate loan and enters into an interest rate swap in which the client receives a variable-rate payment in exchange for a fixed-rate payment. The Bank offsets its risk exposure by entering into an offsetting interest rate swap with a dealer counterparty for the same notional amount and length of term as the client interest rate swap providing the dealer counterparty with a fixed-rate payment in exchange for a variable-rate payment. These swaps do not qualify as designated hedges; therefore, each swap is accounted for as a freestanding derivative. Risk Participation Agreements: In conjunction with the purchase or sale of participating interests in loans, the Company also participates in related swaps through risk participation agreements. The existing credit derivatives resulting from these participations are not designated as hedges as they are not used to manage interest rate risk in the Company’s assets or liabilities and are not speculative. 42 Table of Contents Mortgage Loan Commitments: The Company sells originated one- to four-family residential loans into the secondary mortgage loan markets. During the period of loan origination and prior to the sale of the loans in the secondary market, the Company has exposure to movements in interest rates associated with written interest rate lock commitments with potential borrowers to originate one- to four-family residential loans that are intended to be sold and for closed one- to four-family residential loans held for sale for which fair value accounting has been elected, that are awaiting sale and delivery into the secondary market. The Company economically hedges the risk of changing interest rates associated with these one- to four-family residential loan commitments by entering into forward sales contracts to sell these loans or mortgage-backed securities to broker/dealers at specific prices and dates. Gains (losses) recognized in income within mortgage banking operations on non-designated hedging instruments for the three and nine months ended September 30, 2025 and 2024, were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Mortgage loan commitments $ ( 173 ) $ 84 $ 432 $ 157 Forward sales contracts ( 434 ) ( 771 ) ( 1,243 ) ( 691 ) $ ( 607 ) $ ( 687 ) $ ( 811 ) $ ( 534 ) The Company is exposed to credit-related losses in the event of nonperformance by the counterparty to these agreements. Credit risk of the financial contract is controlled through the credit approval, limits, and monitoring procedures and management does not expect the counterparties to fail their obligations. In connection with the interest rate swaps between the Bank and the dealer counterparties, the agreements contain a provision where if the Bank fails to maintain its status as a well or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Bank would be required to settle its obligations. Similarly, the Bank could be required to settle its obligations under certain of its agreements if specific regulatory events occur, such as a publicly issued prompt corrective action directive, cease and desist order, or a capital maintenance agreement that required the Bank to maintain a specific capital level. If the Bank had breached any of these provisions at September 30, 2025 or December 31, 2024, it could have been required to settle its obligations under the agreements at the termination value. As of September 30, 2025 and December 31, 2024, the Company had no obligations to dealer counterparties related to these agreements. The Company generally posts collateral against derivative liabilities in the form of cash, government agency-issued bonds, mortgage-backed securities, or commercial mortgage-backed securities. Collateral posted against derivative liabilities was $ 16.9 million and $ 19.9 million as of September 30, 2025 and December 31, 2024, respectively. The collateral posted included restricted cash of $ 15.9 million and $ 18.9 million as of September 30, 2025 and December 31, 2024, respectively. Derivative assets and liabilities are recorded at fair value on the balance sheet. Master netting agreements allow the Company to settle all derivative contracts held with a single counterparty on a net basis and to offset net derivative positions with related collateral where applicable. In addition, some interest rate swap derivatives between the Company and the dealer counterparties are cleared through central clearing houses. These clearing houses characterize the variation margin payments as settlements of the derivative’s market exposure and not as collateral. The variation margin is treated as an adjustment to our cash collateral, as well as a corresponding adjustment to our derivative asset or liability. The variation margin adjustment was a positive adjustment of $ 9.6 million and a positive adjustment of $ 15.6 million as of September 30, 2025 and December 31, 2024, respectively. 43 Table of Contents The following tables present additional information related to the Company’s derivative contracts, by type of financial instrument, as of September 30, 2025 and December 31, 2024 (in thousands): September 30, 2025 Gross Amounts of Financial Instruments Not Offset in the Consolidated Statement of Financial Condition Gross Amounts Recognized Amounts offset in the Statement of Financial Condition Net Amounts in the Statement of Financial Condition Netting Adjustment Per Applicable Master Netting Agreements Fair Value of Financial Collateral in the Statement of Financial Condition Net Amount Derivative assets Interest rate swaps $ 19,873 $ ( 9,581 ) $ 10,292 $ — $ — $ 10,292 $ 19,873 $ ( 9,581 ) $ 10,292 $ — $ — $ 10,292 Derivative liabilities Interest rate swaps $ 19,913 $ — $ 19,913 $ — $ ( 15,228 ) $ 4,685 $ 19,913 $ — $ 19,913 $ — $ ( 15,228 ) $ 4,685 December 31, 2024 Gross Amounts of Financial Instruments Not Offset in the Consolidated Statement of Financial Condition Gross Amounts Recognized Amounts offset in the Statement of Financial Condition Net Amounts in the Statement of Financial Condition Netting Adjustment Per Applicable Master Netting Agreements Fair Value of Financial Collateral in the Statement of Financial Condition Net Amount Derivative assets Interest rate swaps $ 30,134 $ ( 15,627 ) $ 14,507 $ — $ — $ 14,507 $ 30,134 $ ( 15,627 ) $ 14,507 $ — $ — $ 14,507 Derivative liabilities Interest rate swaps $ 30,184 $ — $ 30,184 $ — $ ( 18,228 ) $ 11,956 $ 30,184 $ — $ 30,184 $ — $ ( 18,228 ) $ 11,956 44 Table of Contents Note 13: SEGMENT DISCLOSURES The Company is managed by legal entity, rather than by lines of business, and its activities are considered a single operating segment for financial reporting purposes. The Bank is engaged in the single line of business of community banking, which involves gathering deposits and originating loans in its primary market areas. The Bank manages its operations, allocates resources, and monitors and reports its financials as a single operating segment. The Company’s performance is assessed based on net income that is reported on our Consolidated Statements of Operations with consolidated net income being the primary measure to evaluate resource allocations. In addition to our consolidated financial statements, the operating and financial condition data below is used to monitor budget versus actual results and assess performance: OPERATING DATA: Quarters Ended Nine Months Ended (In thousands) Sep 30, 2025 Jun 30, 2025 Sep 30, 2024 Sep 30, 2025 Sep 30, 2024 Interest income $ 205,848 $ 200,259 $ 195,841 $ 599,975 $ 569,667 Interest expense 55,859 55,860 60,166 164,504 168,487 Net interest income 149,989 144,399 135,675 435,471 401,180 Provision for credit losses 2,670 4,795 1,692 10,604 4,581 Non-interest income 20,730 17,751 18,063 57,589 46,853 Non-interest expense 102,022 101,348 96,291 304,629 292,060 Net income $ 53,502 $ 45,496 $ 45,153 $ 144,133 $ 122,507 FINANCIAL CONDITION DATA: Quarters Ended (In thousands) Sep 30, 2025 Jun 30, 2025 Dec 31, 2024 Sep 30, 2024 Cash and securities (1) $ 3,662,991 $ 3,529,241 $ 3,607,933 $ 3,730,637 Loans receivable, net 11,542,831 11,529,872 11,199,135 11,070,021 Total assets 16,563,081 16,437,169 16,200,037 16,188,676 Core deposits 12,475,553 12,049,519 12,014,726 12,016,295 Total deposits 14,015,935 13,527,291 13,514,398 13,538,148 KEY FINANCIAL RATIOS: Quarters Ended Nine Months Ended Sep 30, 2025 Jun 30, 2025 Sep 30, 2024 Sep 30, 2025 Sep 30, 2024 Performance Ratios: Return on average assets (2) 1.30 % 1.13 % 1.13 % 1.19 % 1.04 % Net interest margin (tax equivalent) (3) 3.98 3.92 3.72 3.94 3.72 Non-interest expense to average assets 2.48 2.52 2.42 2.53 2.48 Efficiency ratio (4) 59.76 62.50 62.63 61.78 65.19 (1) Includes available-for-sale and held-to-maturity securities. (2) Net income divided by average assets. (3) Net interest income as a percent of average interest-earning assets on a tax equivalent basis. (4) Non-interest expenses divided by the total of net interest income and non-interest income. 45 Table of Contents