What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-05-05 compared with 2025-11-04 · 256 added, 288 removed, 1105 unchanged (33% of the section changed)

3 unchanged sentences

(Unaudited) (In thousands, except shares and per share amounts)

September 30, 2025 and December 31, 2024

ASSETS September 30, 2025 December 31, 2024

March 31, 2026 and December 31, 2025

ASSETS March 31, 2026 December 31, 2025

Cash and due from banks $ 180,158 $ 182,772

28 unchanged sentences

Other borrowings 115,723 107,715

Subordinated notes, net — 80,278

Junior subordinated debentures at fair value (issued in connection with Trust Preferred Securities) 79,472 79,151

7 unchanged sentences

Preferred stock - $ 0.01 par value per share, 500,000 shares authorized;

no shares outstanding at September 30, 2025 and December 31, 2024

no shares outstanding at March 31, 2026 and December 31, 2025

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;

33,875,098 shares issued and outstanding at March 31, 2026;

34,097,856 shares issued and outstanding at December 31, 2025

1 unchanged sentence

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 March 31, 2026;

no shares issued and outstanding at December 31, 2025

9 unchanged sentences

(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

For the Three Months Ended March 31, 2026 and 2025

Three Months Ended March 31,

INTEREST INCOME:

12 unchanged sentences

Net interest income 150,169 141,083

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

(RECAPTURE) PROVISION FOR CREDIT LOSSES ( 796 ) 3,139

Net interest income after (recapture) provision for credit losses 150,965 137,944

NON-INTEREST INCOME:

4 unchanged sentences

18,741 18,793

Net gain (loss) on sale of securities 377 — 374 ( 5,465 )

Net loss on sale of securities ( 1,242 ) —

Net change in valuation of financial instruments carried at fair value 1,662 315

30 unchanged sentences

(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

For the Three Months Ended March 31, 2026 and 2025

Three Months Ended March 31,

NET INCOME $ 54,716 $ 45,135

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 )

OTHER COMPREHENSIVE (LOSS) INCOME, NET OF INCOME TAXES:

Unrealized holding (loss) gain on securities—available-for-sale arising during the period ( 5,236 ) 38,301

Income tax benefit (expense) related to securities—available-for-sale unrealized holding losses 1,257 ( 9,192 )

Reclassification for net loss on securities—available-for-sale realized in earnings 1,242 —

2 unchanged sentences

Income tax expense related to amortization of unrealized loss on securities transferred from available-for-sale to held-to-maturity ( 128 ) ( 132 )

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 ( 321 ) ( 234 )

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

Income tax benefit related to junior subordinated debentures 77 56

Other comprehensive (loss) income ( 2,875 ) 29,348

COMPREHENSIVE INCOME $ 51,841 $ 74,483

3 unchanged sentences

(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

Common Stock and Paid in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Shareholders’ Equity

Shares Amount

1 unchanged sentence

Net income 45,135 45,135

Other comprehensive loss, net of income tax ( 10,347 ) ( 10,347 )

Other comprehensive income, net of income tax 29,348 29,348

Accrual of dividends on common stock ($ 0.48 /share)

8 unchanged sentences

Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered

60,531 1,267 1,267

Balance, June 30, 2025 34,583,994 1,309,004 801,082 ( 244,422 ) 1,865,664

5 unchanged sentences

1,303 2,678 2,678

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

Repurchase of common stock

( 250,000 ) ( 15,861 ) ( 15,861 )

Balance, December 31, 2024 34,459,832 1,307,509 744,091 ( 277,274 ) 1,774,326

Balance, September 30, 2025 34,335,297 1,295,821 837,826 ( 220,755 ) 1,912,892

Net income 51,249 51,249

4 unchanged sentences

12,534 2,631 2,631

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)

Repurchase of common stock

(249,975) (15,947) (15,947)

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

Balance, December 31, 2025 34,097,856 1,282,505 871,803 ( 208,011 ) 1,946,297

Net income 54,716 54,716

Other comprehensive income, net of income tax 23,667 23,667

Other comprehensive loss, net of income tax ( 2,875 ) ( 2,875 )

Accrual of dividends on common stock ($ 0.50 /share)

1 unchanged sentence

Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered

27,242 1,941 1,941

Repurchase of common stock

Balance, September 30, 2025 34,335,297 $ 1,295,821 $ 837,826 $ ( 220,755 ) $ 1,912,892

( 250,000 ) ( 16,148 ) ( 16,148 )

Balance, March 31, 2026 33,875,098 $ 1,268,298 $ 909,222 $ ( 210,886 ) $ 1,966,634

See Selected Notes to the Consolidated Financial Statements

2 unchanged sentences

(Unaudited) (In thousands)

For the Nine Months Ended September 30, 2025 and 2024

Nine Months Ended September 30,

For the Three Months Ended March 31, 2026 and 2025

Three Months Ended March 31,

OPERATING ACTIVITIES:

5 unchanged sentences

Amortization of core deposit intangibles 256 456

(Gain) loss on sale of securities, net ( 374 ) 5,465

Loss on sale of securities, net 1,242 —

Net change in valuation of financial instruments carried at fair value ( 1,662 ) ( 315 )

Decrease in deferred taxes 146 229

(Decrease) increase in current taxes payable/receivable, net ( 387 ) 4,967

Increase in current taxes payable/receivable, net 8,342 6,955

Stock-based compensation 2,650 2,230

2 unchanged sentences

Gain on disposal of real estate held for sale and property and equipment, net ( 15 ) ( 140 )

Provision for credit losses 10,604 4,581

(Recapture) provision for credit losses ( 796 ) 3,139

Origination of loans held for sale ( 91,725 ) ( 75,240 )

16 unchanged sentences

Purchase of FHLB stock ( 4,492 ) ( 56,891 )

Investment in BOLI ( 46 ) ( 41 )

Other 1,441 874

4 unchanged sentences

(Unaudited) (In thousands)

For the Nine Months Ended September 30, 2025 and 2024

Nine Months Ended September 30,

For the Three Months Ended March 31, 2026 and 2025

Three Months Ended March 31,

FINANCING ACTIVITIES:

1 unchanged sentence

Repayment of overnight and short term FHLB advances, net ( 150,000 ) ( 122,000 )

Decrease in other borrowings, net ( 4,721 ) ( 28,344 )

Repayment of subordinated notes ( 80,500 ) —

Increase in other borrowings, net 8,008 5,331

Cash dividends paid ( 17,279 ) ( 16,783 )

1 unchanged sentence

Taxes paid related to net share settlement of equity awards ( 709 ) ( 772 )

Net cash provided from financing activities 156,684 335,045

Net cash used by financing activities ( 78,910 ) ( 55,357 )

NET CHANGE IN CASH AND CASH EQUIVALENTS 16,599 ( 59,913 )

1 unchanged sentence

CASH AND CASH EQUIVALENTS, END OF PERIOD $ 439,239 $ 441,945

Nine Months Ended September 30,

Three Months Ended March 31,

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Interest paid in cash $ 50,300 $ 51,240

Tax paid 23,087 13,376

NON-CASH INVESTING AND FINANCING TRANSACTIONS:

Transfer of loans to real estate owned and other repossessed assets 1,589 1,278

Dividends accrued but not paid until after period end 1,332 1,125

Loans, held-for-sale, transferred from portfolio ( 30,553 ) ( 25,560 )

5 unchanged sentences

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 preparing these financial statements, the Company has evaluated events and transactions subsequent to March 31, 2026, 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.

6 unchanged sentences

ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED

Interim Reporting:

Narrow-Scope Improvements (Subtopic 270-10)

In December 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements.

The amendments in this ASU clarify the applicability of Topic 270, enhance the navigability of interim reporting requirements, and consolidate existing interim disclosure guidance.

The amendments specify the form and content of interim financial statements, provide a comprehensive list of required interim disclosures, and introduce a disclosure principle requiring entities to disclose events occurring after the most recent annual reporting period that have a material impact on the entity.

The ASU does not change the fundamental nature or scope of interim reporting requirements.

This ASU is effective for all entities for interim periods within annual periods beginning after December 15, 2027, with early adoption permitted.

The amendments may be applied either prospectively or retrospectively to any periods presented in the financial statements.

The Company is currently evaluating this ASU but does not expect its adoption to have a material impact on the Company’s consolidated financial statements.

Derivatives and Hedging:

Hedge Accounting Improvements (Subtopic 815-20)

In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements.

The amendments in this ASU are intended to clarify certain aspects of the guidance on hedge accounting and to address several incremental hedge accounting issues arising from the global reference rate reform initiative.

The update clarifies and expands guidance in several areas, including allowing groups of forecasted transactions to be hedged based on “similar” rather than “shared” risk exposure, offering greater flexibility in applying cash flow hedges.

Overall, the amendments respond to stakeholder concerns following ASU 2017‑12 and address complexities arising from global reference‑rate reform, ultimately facilitating the achievement and maintenance of hedge accounting for highly effective hedging relationships.

This ASU is effective for all entities for annual reporting periods beginning after December 31, 2026, and interim reporting periods within those annual reporting periods.

Early adoption is permitted on any date on or after the issuance of this ASU.

The Company does not expect the adoption of this ASU to have a material impact on the Company’s consolidated financial statements.

Financial Instruments—Credit Losses:

Purchased Loans (Topic 310-10):

In November 2025, the FASB issued ASU 2025-08, Financial Instruments—Credit Losses (Topic 326):

Purchased Loans.

The amendments in this ASU are intended to simplify and improve the accounting for acquired loans by expanding the use of the gross‑up approach, previously limited to purchased credit‑deteriorated (PCD) assets, to a new category of purchased seasoned loans, which encompasses certain acquired non‑PCD loans.

Under this approach, entities recognize an allowance for expected credit losses at acquisition with a corresponding increase to the asset’s amortized cost basis, eliminating Day‑1 credit loss expense and promoting greater comparability across acquisitions.

This change aims to enhance comparability, consistency, and better reflect the economics of acquiring financial assets.

This ASU is effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.

Early adoption is permitted in an interim or annual reporting period in which financial statements have not yet been issued or made available for issuance.

This ASU will impact loans acquired in future periods following adoption.

Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40)

In September 2025, the FASB issued 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 ASU requires 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”).

In addition, this ASU clarifies disclosure requirements for Internal-Use Software.

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 amendments may be applied using the prospective method, the modified transition approach, or retrospectively.

The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements.

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):

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses.

10 unchanged sentences

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.

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.

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

The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements.

The amortized cost, gross unrealized gains and losses and estimated fair value of securities at March 31, 2026 and December 31, 2025 are summarized as follows (in thousands):

March 31, 2026

Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value

6 unchanged sentences

$ 2,294,225 $ 7,346 $ ( 266,550 ) $ 2,035,021

September 30, 2025

March 31, 2026

Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses

22 unchanged sentences

$ 961,487 $ 34 $ ( 146,562 ) $ 814,668 $ ( 291 )

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 held-to-maturity debt securities was $ 3.6 million and $ 4.1 million at March 31, 2026 and December 31, 2025, and $ 8.6 million and $ 8.3 million on available-for-sale debt securities at March 31, 2026 and December 31, 2025, 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.

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

At March 31, 2026 and December 31, 2025, 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):

March 31, 2026

Less Than 12 Months 12 Months or More Total

9 unchanged sentences

73,581 ( 554 ) 1,339,830 ( 234,052 ) 1,413,411 ( 234,606 )

Asset-backed securities

38,990 ( 57 ) — — 38,990 ( 57 )

$ 181,921 $ ( 1,496 ) $ 1,484,554 $ ( 265,054 ) $ 1,666,475 $ ( 266,550 )

December 31, 2025

13 unchanged sentences

$ 72,041 $ ( 121 ) $ 1,545,506 $ ( 263,280 ) $ 1,617,547 $ ( 263,401 )

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.

At March 31, 2026, there were 191 securities—available-for-sale with unrealized losses, compared to 175 at December 31, 2025.

Management does not believe that any remaining individual unrealized loss as of March 31, 2026 or December 31, 2025 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.

There were no securities—available-for-sale in a nonaccrual status at March 31, 2026 or December 31, 2025.

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

There were no securities—available-for-sale sold during the three months ended March 31, 2025.

Three months ended March 31,

Available-for-Sale:

2 unchanged sentences

Balance, end of the period $ ( 1,242 )

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).

The following table presents the amortized cost and estimated fair value of securities at March 31, 2026, 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

March 31, 2026

Available-for-Sale Held-to-Maturity

5 unchanged sentences

$ 2,294,225 $ 2,035,021 $ 943,973 $ 791,763

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

The following table presents, as of March 31, 2026, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands):

March 31, 2026

Carrying Value Amortized Cost Fair Value

10 unchanged sentences

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

The following tables summarize the amortized cost of held-to-maturity debt securities by credit rating at March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026

Government and agency obligations Municipal bonds Corporate bonds Mortgage-backed or related securities Total

8 unchanged sentences

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

The following table presents the loans receivable at March 31, 2026 and December 31, 2025 by class (dollars in thousands).

March 31, 2026 December 31, 2025

Amount Percent of Total Amount Percent of Total

21 unchanged sentences

Net loans $ 11,547,274 $ 11,561,411

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.

Loan amounts are net of unearned loan fees in excess of unamortized costs of $ 16.3 million as of March 31, 2026, and $ 16.5 million as of December 31, 2025.

Net loans include net discounts on acquired loans of $ 2.1 million and $ 2.4 million as of March 31, 2026 and December 31, 2025, 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.

Accrued interest receivable on loans was $ 51.5 million as of March 31, 2026, and $ 48.2 million as of December 31, 2025 and was reported in accrued interest receivable on the Consolidated Statements of Financial Condition.

The Company had pledged $ 8.4 billion and $ 8.2 billion of loans as collateral for FHLB and other borrowings at March 31, 2026 and December 31, 2025, 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

The following table presents the amortized cost basis and financial effect of loans at March 31, 2026 and March 31, 2025, that were both experiencing financial difficulty and modified during the three months ended March 31, 2026 and March 31, 2025, respectively (in thousands).

March 31, 2026

Interest Rate Reduction Combination Term Extension and Interest Rate Reduction Total

Multifamily construction $ — $ 3,600 $ 3,600

One- to four-family construction 460 — 460

Agricultural business, including secured by farmland 5,966 5,966

Land and land development 1,352 2,340 3,692

Total $ 1,812 $ 5,940 $ 7,752

September 30, 2024

Payment Delay Total

Commercial business $ 5,322 $ 5,322

March 31, 2025

Term Extension Total

One- to four-family construction $ 1,810 $ 1,810

Land and land development 3,280 3,280

Total $ 5,090 $ 5,090

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 has committed to lend additional amounts totaling $ 1.1 million to the borrowers included in the previous table as of March 31, 2026.

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

The follow ing tables present the performance at March 31, 2026 and March 31, 2025 of loans that had been modified in the previous 12 months (in thousands).

March 31, 2026

30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Total

Commercial business $ — $ — $ — $ 1,460 $ 1,460

One- to four-family construction $ 1,482 $ — $ — $ — $ 1,482

Total $ 1,482 $ — $ — $ — $ 1,482

September 30, 2024

March 31, 2025

30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Total

1 unchanged sentence

Total $ — $ — $ — $ 1,183 $ 1,183

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)

Loans are considered to be in payment default when they are 90 days or more past due.

There were no modified loans that experienced a subsequent default within twelve months of the modification date during the three months ended March 31, 2026 or March 31, 2025.

The following table presents the financial effect of the loan modifications presented above for borrowers experiencing financial difficulty for the three months ended March 31, 2026 and March 31, 2025:

Three Months Ended March 31, 2026

Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (in months)

Multifamily construction ( 1.50 ) % 6

One- to four-family construction ( 1.50 ) % n/a

Land and land development ( 1.50 ) % 5

Three Months Ended March 31, 2025

Weighted-Average Term Extension (in months)

One- to four-family construction 3

Agricultural business, including secured by farmland 12

Nine Months Ended September 30, 2024

Weighted Average Payment Delay Period (in months)

Commercial business 3

Land and land development 6

Credit Quality Indicators :

13 unchanged sentences

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.

The strength of credits varies 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:

19 unchanged sentences

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.

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.

The following tables present the Company’s portfolio of risk-rated loans by class and by grade as of March 31, 2026 and December 31, 2025 (in thousands).

In addition, the tables include the gross charge-offs for the three months ended March 31, 2026 and the year ended December 31, 2025.

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

March 31, 2026

Term Loans by Year of Origination Revolving Loans Total Loans

24 unchanged sentences

Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

September 30, 2025

March 31, 2026

Term Loans by Year of Origination Revolving Loans Total Loans

24 unchanged sentences

Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

September 30, 2025

March 31, 2026

Term Loans by Year of Origination Revolving Loans Total Loans

34 unchanged sentences

Total Commercial real estate - owner occupied $ 199,049 $ 206,184 $ 171,978 $ 123,916 $ 135,162 $ 240,993 $ 61,016 $ 1,138,298

Current period gross charge-offs $ — $ — $ 351 $ — $ — $ — $ — $ 351

Gross charge-offs for the year ended December 31, 2025

$ — $ — $ — $ — $ — $ — $ — $ —

Commercial real estate - investment properties

5 unchanged sentences

Total Commercial real estate - investment properties $ 296,157 $ 106,127 $ 131,328 $ 209,997 $ 241,372 $ 653,056 $ 63,376 $ 1,701,413

Gross charge-offs for the year ended December 31, 2025

$ — $ — $ — $ — $ — $ — $ — $ —

Multifamily real estate

5 unchanged sentences

Total Multifamily real estate $ 44,775 $ 89,961 $ 89,370 $ 233,563 $ 168,171 $ 223,278 $ 1,671 $ 850,789

Gross charge-offs for the year ended December 31, 2025

$ — $ — $ — $ — $ — $ — $ — $ —

December 31, 2025

8 unchanged sentences

Total Commercial construction $ 61,803 $ 36,567 $ 35,243 $ 21,666 $ 742 $ — $ — $ 156,021

Gross charge-offs for the year ended December 31, 2025

$ — $ — $ — $ — $ — $ — $ — $ —

Multifamily construction

5 unchanged sentences

Total Multifamily construction $ 214,867 $ 180,871 $ 109,466 $ — $ — $ — $ 9,126 $ 514,330

Gross charge-offs for the year ended December 31, 2025

$ — $ — $ — $ — $ — $ — $ — $ —

One- to four- family construction

5 unchanged sentences

Total One- to four- family construction $ 501,553 $ 82,237 $ 738 $ — $ — $ — $ 22,919 $ 607,447

Current period gross charge-offs $ — $ — $ 150 $ — $ — $ — $ — $ 150

Gross charge-offs for the year ended December 31, 2025

$ — $ — $ — $ — $ — $ — $ — $ —

December 31, 2025

8 unchanged sentences

Total Land and land development $ 228,748 $ 104,964 $ 32,726 $ 24,756 $ 18,687 $ 16,641 $ 7,156 $ 433,678

Gross charge-offs for the year ended December 31, 2025

$ 218 $ — $ — $ — $ — $ — $ — $ 218

Commercial business

5 unchanged sentences

Total Commercial business $ 223,961 $ 117,117 $ 84,650 $ 128,014 $ 69,601 $ 255,377 $ 346,388 $ 1,225,108

Current period gross charge-offs $ 2,301 $ 418 $ — $ 689 $ — $ 54 $ 558 $ 4,020

Gross charge-offs for the year ended December 31, 2025

$ — $ 1,941 $ 908 $ — $ 18 $ 164 $ 567 $ 3,598

Agricultural business, including secured by farmland

5 unchanged sentences

Total Agricultural business, including secured by farmland $ 24,132 $ 13,063 $ 39,038 $ 29,168 $ 23,305 $ 73,412 $ 151,034 $ 353,152

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.

Gross charge-offs for the year ended December 31, 2025

$ — $ — $ 730 $ 361 $ — $ 1,325 $ — $ 2,416

The following tables present the Company’s portfolio of non-risk-rated loans by class and delinquency status as of March 31, 2026 and December 31, 2025 (in thousands).

In addition, the tables include the gross charge-offs for the three months ended March 31, 2026 and the year ended December 31, 2025.

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

March 31, 2026

Term Loans by Year of Origination Revolving Loans Total Loans

24 unchanged sentences

Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

September 30, 2025

March 31, 2026

Term Loans by Year of Origination Revolving Loans Total Loans

26 unchanged sentences

Total Small balance CRE $ 103,382 $ 72,801 $ 85,172 $ 199,380 $ 207,013 $ 544,609 $ — $ 1,212,357

Gross charge-offs for the year ended December 31, 2025

$ — $ — $ — $ — $ — $ — $ — $ —

Small business scored

5 unchanged sentences

Total Small business scored $ 228,693 $ 185,875 $ 147,395 $ 204,566 $ 125,898 $ 154,458 $ 140,475 $ 1,187,360

Current period gross charge-offs $ 82 $ 122 $ 522 $ 575 $ 47 $ 587 $ — $ 1,935

Gross charge-offs for the year ended December 31, 2025

$ 75 $ 181 $ 862 $ 623 $ 149 $ 60 $ — $ 1,950

One- to four- family residential

5 unchanged sentences

Total One- to four- family residential $ 111,970 $ 201,381 $ 287,320 $ 505,422 $ 231,347 $ 235,751 $ — $ 1,573,191

Gross charge-offs for the year ended December 31, 2025

$ — $ — $ — $ — $ — $ 13 $ — $ 13

December 31, 2025

8 unchanged sentences

Total Consumer—home equity revolving lines of credit $ 3,526 $ 2,238 $ 4,018 $ 8,394 $ 3,255 $ 9,669 $ 648,389 $ 679,489

Current period gross charge-offs $ — $ — $ 58 $ — $ 11 $ 1 $ 110 $ 180

Gross charge-offs for the year ended December 31, 2025

$ — $ — $ — $ — $ — $ — $ — $ —

Consumer-other

5 unchanged sentences

Total Consumer-other $ 11,532 $ 5,827 $ 3,838 $ 20,981 $ 6,155 $ 19,439 $ 21,282 $ 89,054

Current period gross charge-offs $ 9 $ 50 $ 105 $ 71 $ 37 $ 211 $ 1,247 $ 1,730

The following tables provide the amortized cost basis of collateral-dependent loans as of September 30, 2025 and December 31, 2024 (in thousands).

Gross charge-offs for the year ended December 31, 2025

$ 21 $ 18 $ 57 $ 89 $ 50 $ 189 $ 1,195 $ 1,619

The following tables provide the amortized cost basis of collateral-dependent loans as of March 31, 2026 and December 31, 2025 (in thousands).

Our collateral dependent loans presented in the tables below have no significant concentrations by property type or location.

September 30, 2025

March 31, 2026

Real Estate Equipment Inventory Total

Commercial real estate:

Owner-occupied $ 797 $ 49 $ 183 $ 1,029

Small balance CRE 460 — — 460

Construction, land and land development:

One- to four-family construction 2,006 — — 2,006

9 unchanged sentences

December 31, 2025

Real Estate Accounts Receivable Equipment Inventory Total

Real Estate Equipment Inventory Total

Commercial real estate:

Owner-occupied $ 2,182 $ — $ — $ — $ 2,182

Small balance CRE $ 460 $ — $ — $ 460

Construction, land and land development:

One- to four-family construction 2,006 — — 2,006

8 unchanged sentences

Total $ 21,172 $ 1,491 $ 1,460 $ 24,123

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

The following tables provide additional detail on the age analysis of the Company’s past due loans as of March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026

Past Due 60-89 Days

22 unchanged sentences

Total $ 28,371 $ 6,748 $ 30,513 $ 65,632 $ 11,641,994 $ 11,707,626 $ 18,036 $ 44,006 $ 1,431

(1) The Company did not recognize any interest income on non-accrual loans during the nine months ended September 30, 2025.

(1) The Company did not recognize any interest income on non-accrual loans during the three months ended March 31, 2026.

December 31, 2025

24 unchanged sentences

(1) The Company did not recognize any interest income on non-accrual loans during the year ended December 31, 2025.

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

For the Three Months Ended September 30, 2024

The following tables provide the activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2026 and 2025 (in thousands):

For the Three Months Ended March 31, 2026

Commercial Real Estate Multifamily Real Estate Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Total

5 unchanged sentences

Ending balance $ 41,788 $ 9,201 $ 34,589 $ 39,452 $ 4,930 $ 19,640 $ 10,752 $ 160,352

For the Nine Months Ended September 30, 2024

For the Three Months Ended March 31, 2025

Commercial Real Estate Multifamily Real Estate Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Total

7 unchanged sentences

Goodwill and Other Intangible Assets:

At September 30, 2025, intangible assets are comprised of goodwill and core deposit intangibles (CDI) acquired in business combinations.

At March 31, 2026, 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.

3 unchanged sentences

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):

The following table summarizes the changes in the Company’s goodwill and other intangibles for the year ended December 31, 2025 and the three months ended March 31, 2026 (in thousands):

Goodwill CDI Total

3 unchanged sentences

Amortization — ( 256 ) ( 256 )

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):

Balance, March 31, 2026 $ 373,121 $ 1,235 $ 374,356

The following table presents the estimated amortization expense with respect to CDI as of March 31, 2026, for the periods indicated (in thousands):

Estimated Amortization

7 unchanged sentences

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.

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

The unpaid principal balance of loans for which mortgage and SBA servicing rights have been recognized totaled $ 2.76 billion and $ 2.77 billion at March 31, 2026 and December 31, 2025, respectively.

Custodial accounts maintained in connection with this servicing totaled $ 23.2 million and $ 13.1 million at March 31, 2026 and December 31, 2025, respectively.

An analysis of the mortgage and SBA servicing rights for the three months ended March 31, 2026 and 2025 is presented below (in thousands):

Three Months Ended March 31,

Balance, beginning of the period $ 12,602 $ 13,487

4 unchanged sentences

Fair value adjustments (2)

84 ( 21 ) 253 50

Impairment valuation adjustments (3)

— ( 6 ) — ( 6 )

Balance, end of the period $ 12,412 $ 13,421

2 unchanged sentences

These adjustments are estimated based on an independent dealer analysis by discounting estimated net future cash flows from servicing SBA loans.

Deposits consisted of the following at September 30, 2025 and December 31, 2024 (in thousands):

September 30, 2025 December 31, 2024

Deposits consisted of the following at March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026 December 31, 2025

Non-interest-bearing accounts $ 4,532,639 $ 4,489,839

13 unchanged sentences

Total brokered certificates of deposit $ — $ 50,002

Scheduled maturities and weighted average interest rates of certificates of deposit at September 30, 2025, are as follows (dollars in thousands):

September 30, 2025

Scheduled maturities and weighted average interest rates of certificates of deposit at March 31, 2026, are as follows (dollars in thousands):

March 31, 2026

Amount Weighted Average Rate

7 unchanged sentences

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

The following table presents estimated fair values of the Company’s financial instruments as of March 31, 2026 and December 31, 2025, whether or not recognized or recorded in the Consolidated Statements of Financial Condition (dollars in thousands):

March 31, 2026 December 31, 2025

Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value

39 unchanged sentences

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

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 March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026

Level 1 Level 2 Level 3 Total

42 unchanged sentences

$ — $ 19,295 $ 79,219 $ 98,514

(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.

(1) The unpaid principal balance of residential mortgage loans held for sale carried at fair value on a recurring basis was $ 24.9 million and $ 33.6 million at March 31, 2026 and December 31, 2025, respectively.

The following methods were used to estimate the fair value of each class of financial instruments above:

14 unchanged sentences

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.

The SBA servicing portfolio is stratified by loan type and fair value estimates are adjusted based on the serviced loan interest rates versus current rates on new loan originations since the most recent independent analysis.

Junior Subordinated Debentures:

3 unchanged sentences

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.

5 unchanged sentences

The fair value of these instruments is not considered to be material.

The fair value estimates presented herein are based on pertinent information available to management as of September 30, 2025 and December 31, 2024.

The fair value estimates presented herein are based on pertinent information available to Management as of March 31, 2026 and December 31, 2025.

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

Financial Instruments Valuation Technique Unobservable Inputs March 31, 2026 December 31, 2025

Corporate bonds (TPS) Discounted cash flows Discount rate 6.94 % 6.91 %

1 unchanged sentence

Loans individually evaluated Collateral valuations Discount to appraised value 8.75 % to 10.00 %

0 % to 8.75 %

Interest rate lock commitments Pricing model Pull-through rate 88.11 % 88.86 %

6 unchanged sentences

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.

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 March 31, 2026, or the passage of time, will result in negative fair value adjustments.

At March 31, 2026, the discount rate utilized was based on a credit spread of 326 basis points and three-month SOFR of 368 basis points.

Interest rate lock commitments:

5 unchanged sentences

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.

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

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 months ended March 31, 2026 and 2025 (in thousands):

Three Months Ended March 31, 2026

Level 3 Fair Value Inputs

4 unchanged sentences

Purchases, issuances and settlements — — — 199 —

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

Ending balance at March 31, 2026 $ 30,314 $ 79,472 $ ( 55 ) $ 14,860 $ 1,091

Three Months Ended March 31, 2025

Level 3 Fair Value Inputs

4 unchanged sentences

Purchases, issuances and settlements — — — 790 —

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

Ending balance at March 31, 2025 $ 25,756 $ 67,711 $ 305 $ 15,025 $ 954

Interest income, dividends and amortization related to TPS are recorded as a component of interest income.

4 unchanged sentences

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

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 March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026

Level 1 Level 2 Level 3 Total

5 unchanged sentences

REO — — 5,578 5,578

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 :

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.

10 unchanged sentences

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.

As of March 31, 2026, the Company had a net deferred tax asset of $ 128.3 million, compared to $ 127.6 million at December 31, 2025.

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 Company recorded income tax expense of $ 12.8 million and $ 10.7 million for the three months ended March 31, 2026 and 2025, respectively, representing effective tax rates of 19.0 % 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.

3 unchanged sentences

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.

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

The following table presents the balances of the Company’s tax credit investments and related unfunded commitments at March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026 December 31, 2025

Tax Credit Investments:

1 unchanged sentence

Unfunded commitments 104,459 118,471

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

The following table presents other information related to the Company’s tax credit investments for the three months ended March 31, 2026 and 2025 (in thousands):

Three Months Ended March 31,

Tax credits and other tax benefits recognized $ 5,532 $ 4,245

1 unchanged sentence

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

The following table reconciles basic to diluted weighted average shares outstanding used to calculate earnings per share data for the three months ended March 31, 2026 and 2025 (in thousands, except shares and per share data):

Three Months Ended March 31,

Net income $ 54,716 $ 45,135

5 unchanged sentences

Diluted $ 1.60 $ 1.30

Anti-dilutive restricted stock excluded from the diluted weighted average shares outstanding calculation — 860 — 3,950

STOCK-BASED COMPENSATION PLANS

3 unchanged sentences

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.

As of March 31, 2026, 583,024 restricted stock units have been granted under the 2014 Plan of which 92,175 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.

As of March 31, 2026, 892,720 restricted stock units have been granted under the 2018 Plan of which 181,409 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.

As of March 31, 2026, 7,720 restricted stock shares and 122,964 restricted stock units have been granted under the 2023 Plan of which 2,793 restricted stock shares and 112,147 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 $ 2.2 million for the three month periods ended March 31, 2026 and March 31, 2025, respectively.

Unrecognized compensation expense for these awards as of March 31, 2026, was $ 11.2 million and will be recognized over a weighted average period of 11 months.

COMMITMENTS AND CONTINGENCIES

6 unchanged sentences

Contract or Notional Amount

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Commitments to extend credit $ 4,005,841 $ 3,978,474

5 unchanged sentences

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):

As of March 31, 2026 and December 31, 2025, 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

March 31, 2026 December 31, 2025

Tax credit investments $ 104,459 $ 118,471

7 unchanged sentences

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.

The Company’s allowance for credit losses - unfunded loan commitments at March 31, 2026 and December 31, 2025 was $ 12.9 million and $ 15.0 million, respectively.

Standby letters of credit are conditional commitments issued to guarantee a client’s performance or payment to a third party.

11 unchanged sentences

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.

There were no counterparty default losses on forward contracts during the three months ended March 31, 2026 or March 31, 2025.

Market risk with respect to forward contracts arises principally from changes in the value of contractual positions due to changes in interest rates.

5 unchanged sentences

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.

Based upon the information known to Management, there were no legal proceedings, pending or threatened, that Management believes would have a material adverse effect on the results of operations or consolidated financial position at March 31, 2026.

In connection with certain asset sales, the Bank typically makes representations and warranties about the underlying assets conforming to specified guidelines.

11 unchanged sentences

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):

As of March 31, 2026 and December 31, 2025, 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

March 31, 2026 December 31, 2025 March 31, 2026 December 31, 2025

Notional/ Contract Amount Fair Value Notional/ Contract Amount Fair Value Notional/ Contract Amount Fair Value Notional/ Contract Amount Fair Value

1 unchanged sentence

Master netting agreements ( 9,612 ) ( 9,207 ) — —

Cash offset/(settlement) — — — —

Net interest rate swaps 9,878 9,978 19,509 19,207

10 unchanged sentences

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.

In conjunction with the purchase or sale of participating interests in loans, the Company also participates in related swaps through risk participation agreements which are used to share in the credit risk associated with interest rate swaps on participated loans.

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.

3 unchanged sentences

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

Gains (losses) recognized in income within mortgage banking operations on non-designated hedging instruments for the three months ended March 31, 2026 and 2025, were as follows (in thousands):

Three Months Ended March 31,

Mortgage loan commitments $ ( 290 ) $ 281

5 unchanged sentences

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.

If the Bank had breached any of these provisions at March 31, 2026 or December 31, 2025, it could have been required to settle its obligations under the agreements at the termination value.

As of March 31, 2026 and December 31, 2025, 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.

Collateral posted against derivative liabilities was $ 18.5 million and $ 17.4 million as of March 31, 2026 and December 31, 2025, respectively.

The collateral posted included restricted cash of $ 17.6 million and $ 16.4 million as of March 31, 2026 and December 31, 2025, respectively.

Derivative assets and liabilities are recorded at fair value on the balance sheet.

3 unchanged sentences

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.

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

The variation margin adjustment was a positive adjustment of $ 9.6 million and a positive adjustment of $ 9.2 million as of March 31, 2026 and December 31, 2025, respectively.

The following tables present additional information related to the Company’s derivative contracts, by type of financial instrument, as of March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026

Gross Amounts of Financial Instruments Not Offset in the Consolidated Statement of Financial Condition

21 unchanged sentences

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.

Banner’s Chief Executive Officer is considered the Chief Operating Decision Maker (CODM).

The CODM assesses performance based on net income that is reported on our Consolidated Statements of Operations.

The measure of segment assets is reported on our Consolidated Statement of Financial Condition as total assets.

The CODM uses consolidated net income as the primary measure to evaluate resource allocations.

The CODM is regularly provided with our consolidated financial statements, specifically the statement of operations and the statement of cash flows, as well as expense and budget data.

SUBSEQUENT EVENT

On April 30,2026, the Company entered into a definitive merger agreement to acquire Pacific Financial Corporation, the holding company for Bank of the Pacific, in an all stock transaction.

Under the terms of the agreement, at the effective time of the merger, shareholders of Pacific Financial Corporation will receive 0.2633 shares of Banner Corporation common stock for each Pacific Financial Corporation common share they own.

The transaction is expected to close in the third quarter of 2026 and is subject to closing conditions, including Pacific Financial shareholder and regulatory approvals.

As the transaction has not closed as of the date these unaudited condensed consolidated financial statements were issued, the acquisition has not been reflected in the accompanying unaudited condensed consolidated financial statements.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements