Burke & Herbert Financial Services Corp. 10-Q

bhrb-20260331 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2026 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-41633 Burke & Herbert Financial Services Corp. (Exact name of registrant as specified in its charter) Virginia 92-0289417 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 100 S. Fairfax Street , Alexandria , Virginia 22314 (Address of principal executive offices) (Zip Code) 703 - 666-3555 Registrant’s telephone number, including area code Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Trading symbol Name of Exchange on which registered Common Stock, par value $0.50 per share BHRB The Nasdaq Stock Market LLC Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ As of May 5, 2026, there were 20,149,806 shares of the registrant’s common stock outstanding. Table of Contents TABLE OF CONTENTS Page Part I - Financial Information 1 Item 1. Financial Statements 1 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 41 Item 3. Quantitative and Qualitative Disclosures About Market Risk 68 Item 4. Controls and Procedures 70 Part II - Other Information 71 Item 1. Legal Proceedings 71 Item 1A. Risk Factors 71 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 71 Item 3. Defaults Upon Senior Securities 71 Item 4. Mine Safety Disclosures 71 Item 5. Other Information 71 Item 6. Exhibits 72 Signatures 73 i Table of Contents Part I - Financial Information Item 1. Financial Statements Burke & Herbert Financial Services Corp. Consolidated Financial Statements: Page Consolidated Balance Sheets as of March 31 , 202 6 (Unaudited), and December 31, 202 5 2 Consolidated Statements of Income for the Three Months Ended March 31 , 202 6 , and March 31 , 202 5 (Unaudited) 3 Consolidated Statements of Comprehensive Income for the Three Months Ended March 31 , 202 6 , and March 31 , 202 5 (Unaudited) 4 Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended March 31 , 202 6 , and March 31 , 202 5 (Unaudited) 5 Consolidated Statements of Cash Flows for the Three Months Ended March 31 , 202 6 , and March 31 , 202 5 (Unaudited) 6 Notes to the Consolidated Financial Statements (Unaudited) 8 1 Table of Contents Burke & Herbert Financial Services Corp. Consolidated Balance Sheets (In thousands, except share and per share data) March 31, 2026 (Unaudited) December 31, 2025 (Audited) Assets Cash and due from banks $ 53,940 $ 53,497 Interest-earning deposits with banks 15,652 235,630 Cash and cash equivalents 69,592 289,127 Securities available-for-sale, at fair value 1,826,037 1,615,954 Restricted stock, at cost 45,811 42,187 Loans held-for-sale — 365 Loans 5,404,667 5,387,676 Allowance for credit losses ( 67,955 ) ( 67,823 ) Net loans 5,336,712 5,319,853 Other real estate owned, net 3,106 2,689 Premises and equipment, net 136,806 136,809 Accrued interest receivable 37,625 35,442 Intangible assets 38,063 41,747 Goodwill 36,253 34,149 Company-owned life insurance 214,606 213,200 Other assets 183,100 189,104 Total Assets $ 7,927,711 $ 7,920,626 Liabilities and Shareholders’ Equity Liabilities Non-interest-bearing deposits $ 1,367,050 $ 1,336,380 Interest-bearing deposits 4,965,215 5,067,561 Total deposits 6,332,265 6,403,941 Short-term borrowings 525,000 450,000 Subordinated debentures, net 71,510 70,222 Subordinated debentures owed to unconsolidated subsidiary trusts 17,331 17,268 Accrued interest and other liabilities 117,101 124,546 Total Liabilities 7,063,207 7,065,977 Commitments and contingent liabilities (see Note 10) Shareholders’ Equity Preferred stock and related surplus, $ 1.00 par value per share; 2,000,000 shares authorized; 1,500 shares issued and outstanding at March 31, 2026; 1,500 shares issued and outstanding at December 31, 2025 10,413 10,413 Common Stock 7,809 7,800 $ 0.50 par value; 40,000,000 shares authorized, 15,617,231 shares issued and 15,045,941 shares outstanding at March 31, 2026; 40,000,000 shares authorized, 15,599,814 shares issued and 15,028,524 shares outstanding at December 31, 2025 Common stock, additional paid-in capital 407,070 405,922 Retained earnings 535,798 517,058 Accumulated other comprehensive income (loss) ( 69,002 ) ( 58,960 ) Treasury stock ( 27,584 ) ( 27,584 ) 571,290 shares, at cost, at March 31, 2026, and 571,290 shares, at cost, at December 31, 2025 Total Shareholders’ Equity 864,504 854,649 Total Liabilities and Shareholders’ Equity $ 7,927,711 $ 7,920,626 See Notes to Consolidated Financial Statements. 2 Table of Contents Burke & Herbert Financial Services Corp. Consolidated Statements of Income (In thousands, except share and per share data) (Unaudited) Three Months Ended March 31, 2026 2025 Interest income Taxable loans, including fees $ 88,083 $ 97,031 Tax-exempt loans, including fees 40 46 Taxable securities 9,758 9,487 Tax-exempt securities 6,082 3,267 Other interest income 1,493 955 Total interest income 105,456 110,786 Interest expense Deposits 26,720 31,851 Short-term borrowings 4,590 3,192 Subordinated debt 2,269 2,729 Other interest expense 34 27 Total interest expense 33,613 37,799 Net interest income 71,843 72,987 Credit loss expense - loans and available-for-sale securities 213 900 Credit loss expense (recapture) - off-balance sheet credit exposures ( 201 ) ( 399 ) Total provision for credit losses 12 501 Net interest income after credit loss expense 71,831 72,486 Non-interest income Fiduciary and wealth management 3,227 2,443 Service charges and fees 1,855 2,178 Net gains on securities 1,799 1 Income from company-owned life insurance 1,479 1,193 Bank debit and other card revenue 2,835 2,884 Other non-interest income 1,658 1,324 Total non-interest income 12,853 10,023 Non-interest expense Salaries and wages 21,413 20,941 Pensions and other employee benefits 5,370 5,136 Occupancy 4,027 4,045 Equipment rentals, depreciation and maintenance 4,188 4,084 Core deposit intangible amortization 3,684 4,298 ATM, card and network expense 1,134 1,132 FDIC and other regulatory assessments 1,140 914 Other operating 10,425 9,114 Total non-interest expense 51,381 49,664 Income before income taxes 33,303 32,845 Income tax expense 5,954 5,644 Net income 27,349 27,201 Preferred stock dividends 225 225 Net income applicable to common shares $ 27,124 $ 26,976 Earnings per common share: Basic $ 1.80 $ 1.80 Diluted 1.79 1.80 See Notes to Consolidated Financial Statements. 3 Table of Contents Burke & Herbert Financial Services Corp. Consolidated Statements of Comprehensive Income (In thousands, except share and per share data) (Unaudited) Three Months Ended March 31, 2026 2025 Net income $ 27,349 $ 27,201 Other comprehensive income (loss), net of tax: Unrealized gains (losses) on securities: Unrealized (loss) gain arising during period, net of tax of $ 2,933 and ($ 2,296 ) for the three months ended March 31, 2026, and March 31, 2025, respectively ( 9,882 ) 7,688 Reclassification adjustment for (gain) on securities, net of tax of $ 412 and $ 0 for the three months ended March 31, 2026, and March 31, 2025, respectively ( 1,387 ) ( 1 ) Reclassification adjustment for (gain) on fair value hedge, net of tax of $ 9 and $ 9 for the three months ended March 31, 2026, and March 31, 2025, respectively ( 31 ) ( 31 ) Defined benefit pension plans: Changes in pension plan benefits, net of tax of $ — and $ — for the three months ended March 31, 2026, and March 31, 2025, respectively — — Unrealized gain (loss) on cash flow hedge: Unrealized holding gain on cash flow hedge, net of tax of ($ 382 ) and ($ 111 ) for the three months ended March 31, 2026, and March 31, 2025, respectively 1,286 370 Reclassification adjustment for (gains) included in net income, net of tax $ 8 and $ 99 for the three months ended March 31, 2026, and March 31, 2025, respectively ( 28 ) ( 330 ) Total other comprehensive (loss) income ( 10,042 ) 7,696 Comprehensive income $ 17,307 $ 34,897 See Notes to Consolidated Financial Statements. 4 Table of Contents Burke & Herbert Financial Services Corp. Consolidated Statements of Changes in Shareholders’ Equity For the Three Months Ended March 31, 2026, and 2025 (In thousands, except share and per share data) (Unaudited) Preferred Stock and Surplus Common Stock Retained Earnings Comprehensive Income (Loss) Treasury Stock Shareholders’ Equity Shares Outstanding Amount Additional Paid-in Capital Balance December 31, 2025 $ 10,413 15,028,524 $ 7,800 $ 405,922 $ 517,058 $ ( 58,960 ) $ ( 27,584 ) $ 854,649 Net income — — — — 27,349 — — 27,349 Other comprehensive income — — — — — ( 10,042 ) — ( 10,042 ) (Purchase) sale of treasury stock, net — — — — — — — — Common stock cash dividends, declared — — — — ( 8,271 ) — — ( 8,271 ) Preferred stock cash dividends, declared — — — — ( 225 ) — — ( 225 ) Share-based compensation expense, net — 17,417 9 1,148 ( 113 ) — — 1,044 Balance March 31, 2026 $ 10,413 15,045,941 $ 7,809 $ 407,070 $ 535,798 $ ( 69,002 ) $ ( 27,584 ) $ 864,504 Balance December 31, 2024 $ 10,413 14,969,104 $ 7,770 $ 401,172 $ 434,106 $ ( 95,720 ) $ ( 27,584 ) $ 730,157 Net income — — — — 27,201 — — 27,201 Other comprehensive income — — — — — 7,696 — 7,696 (Purchase) sale of treasury stock, net — — — — — — — — Common stock cash dividends, declared — — — — ( 8,237 ) — — ( 8,237 ) Preferred stock cash dividends, declared — — — — ( 225 ) — — ( 225 ) Share-based compensation expense, net — 13,703 7 1,510 ( 109 ) — — 1,408 Balance March 31, 2025 $ 10,413 14,982,807 $ 7,777 $ 402,682 $ 452,736 $ ( 88,024 ) $ ( 27,584 ) $ 758,000 See Notes to Consolidated Financial Statements. 5 Table of Contents Burke & Herbert Financial Services Corp. Consolidated Statements of Cash Flows (In thousands, except share and per share data) (Unaudited) Three Months Ended March 31, 2026 2025 Cash Flows from Operating Activities Net Income $ 27,349 $ 27,201 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of fixed assets 1,868 1,671 Amortization of other intangible assets 3,714 4,328 Amortization on assumed liabilities 1,351 2,221 Accretion income related to acquired loans ( 6,817 ) ( 11,447 ) Amortization of housing tax credits 1,531 1,859 Realized (gain) on sales of available-for-sale securities ( 1,799 ) ( 1 ) Realized loss on sales of OREO property — 2 Provision for credit losses 12 501 Income from company-owned life insurance ( 1,479 ) ( 1,193 ) Deferred tax expense (benefit) 2,040 ( 1,495 ) Loss on disposal of fixed assets 9 88 Accretion of securities ( 1,648 ) ( 1,003 ) Amortization of securities 2,533 2,400 Share-based compensation expense 1,148 1,305 Repayment of operating lease liabilities ( 670 ) ( 626 ) (Gain) on loans held-for-sale ( 24 ) ( 78 ) Proceeds from sale of loans held-for-sale 2,573 6,647 Originations of loans held-for-sale ( 2,184 ) ( 5,540 ) (Increase) in accrued interest receivable ( 2,183 ) ( 27 ) Decrease (increase) in other assets 5,928 ( 24,845 ) (Decrease) increase in accrued interest payable and other liabilities ( 6,750 ) 35,679 Net cash flows provided by operating activities $ 26,502 $ 37,647 Cash Flows from Investing Activities Proceeds from maturities, prepayments, and calls of securities available-for-sale, net 30,357 50,373 Proceeds from sale of securities available-for-sale, net 65,418 — Purchases of securities available-for-sale, net ( 319,559 ) ( 48,542 ) Business acquisitions, net ( 1,300 ) — Sales of restricted stock — 29,068 Purchases of restricted stock ( 3,624 ) ( 30,621 ) Purchases of property and equipment, net of disposals ( 1,874 ) ( 1,778 ) Proceeds from company-owned life insurance 73 — Proceeds from sale of OREO property — 161 (Increase) decrease in loans made to customers, net ( 10,471 ) 23,944 Net cash flows (used in) provided by investing activities $ ( 240,980 ) $ 22,605 Cash Flows from Financing Activities Net increase in non-interest-bearing accounts 30,670 2,487 Net increase (decrease) in interest-bearing accounts ( 102,346 ) 24,145 Net increase (decrease) in other short-term borrowings 75,000 ( 65,000 ) Repayment of finance lease liabilities ( 78 ) ( 56 ) Cash dividends paid ( 8,496 ) ( 8,462 ) 6 Table of Contents Burke & Herbert Financial Services Corp. Consolidated Statements of Cash Flows (In thousands, except share and per share data) (Unaudited) Proceeds from employee stock purchase program 184 63 Issuance of common stock 9 103 Net cash flows (used in) financing activities $ ( 5,057 ) $ ( 46,720 ) (Decrease) increase in cash and cash equivalents ( 219,535 ) 13,532 Cash and cash equivalents Beginning of period 289,127 135,314 End of period $ 69,592 $ 148,846 Supplemental Disclosures of Cash Flow Information Cash payments for: Interest paid to depositors $ 26,756 $ 32,672 Interest paid on short-term borrowings 3,049 3,732 Interest paid on subordinated debt and trust preferred securities 318 1,326 Interest paid on finance leases 35 27 Income taxes paid (net of refunds) 26 3,595 Change in unrealized gains on available-for-sale securities ( 14,615 ) 7,726 Lease liability arising from obtaining right-of-use assets 600 — Loans transferred to other real estate owned 417 — See Notes to Consolidated Financial Statements. 7 Table of Contents Notes to Consolidated Financial Statements Note 1— Nature of Business Activities and Significant Accounting Policies Nature of operations The consolidated financial statements include Burke & Herbert Financial Services Corp. (“Burke & Herbert”) and its wholly-owned subsidiary Burke & Herbert Bank & Trust Company (“the Bank”), together referred to as “the Company” for purposes of the Notes to the Financial Statements. As of close of the calendar year 2025, we ceased to be an emerging growth company and became a large accelerated filer. Therefore, we are no longer exempt from the requirements under Section 404 of the Sarbanes-Oxley Act and are no longer able to take advantage of exemptions from various public company reporting requirements applicable to emerging growth companies. Burke & Herbert Financial Services Corp. was organized as a Virginia corporation in 2022 to serve as the holding company for the Bank. Burke & Herbert became a bank holding company when it commenced operations on October 1, 2022, following a reorganization transaction in which it acquired control of the Bank under the Bank Holding Company Act of 1956 (“BHCA”). This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of Burke & Herbert. Burke & Herbert has no material operations other than owning the Bank. In September 2023, Burke & Herbert elected to become a financial holding company under the BHCA. As a financial holding company of a Virginia state bank, the Company is subject to regulation, supervision, and examination by the Board of Governors of the Federal Reserve System (the “Federal Reserve”) and the Bureau of Financial Institutions of the Virginia State Corporation Commission (the “Virginia BFI”). The Bank is a Virginia chartered commercial bank that commenced operations in 1852. The Bank became a member of the Federal Reserve System on December 31, 2024. The Bank is subject to regulation, supervision, and examination by the Federal Reserve (through the Federal Reserve Bank of Richmond) and the Virginia BFI. The Bank’s primary market area includes northern Virginia and West Virginia, and as of March 31, 2026, it has over 77 branches and commercial loan offices across Delaware, Kentucky, Maryland, Virginia, and West Virginia. The Company’s branch locations accept business and consumer deposits from a diverse customer base. The Company’s deposit products include checking, savings, and term certificate accounts. The Company’s loan portfolio includes commercial and consumer loans, a substantial portion of which are secured by real estate. Merger with LINKBANCORP, Inc. Effective on May 1, 2026 (the “Closing Date”), Burke & Herbert Financial Services Corp., a Virginia corporation (“Burke & Herbert”), completed its previously announced merger with LINKBANCORP, Inc., a Pennsylvania corporation (“LNKB”), pursuant to the Agreement and Plan of Merger dated December 18, 2025 between Burke & Herbert and LNKB (the “LNKB Merger Agreement”). Pursuant to the LNKB Merger Agreement, on the Closing Date, (i) LNKB merged with and into Burke & Herbert, with Burke & Herbert continuing as the surviving corporation (the “LNKB Merger”), and (ii) immediately following the LNKB Merger, LINKBANK, a Pennsylvania chartered commercial bank and a wholly-owned subsidiary of LNKB (“Link”), merged with and into Burke & Herbert Bank & Trust Company, a Virginia chartered bank (“Burke & Herbert Bank”) and a wholly-owned subsidiary of Burke & Herbert, with Burke & Herbert Bank as the surviving bank. Pursuant to the LNKB Merger Agreement, at the effective time of the LNKB Merger (the “Effective Time”), each LNKB share of common stock, par value $ 0.01 per share (“LNKB Common Stock”) issued and outstanding immediately prior to the Effective Time, other than certain shares held by Burke & Herbert and LNKB, was converted into the right to receive 0.1350 shares of Burke & Herbert common stock. Holders of LNKB Common Stock will receive cash in lieu of fractional shares of Burke & Herbert common stock in accordance with the terms of the LNKB Merger Agreement. The total aggregate consideration payable in the LNKB Merger was approximately 5,082,657 shares of Burke & Herbert Common Stock. Management is currently evaluating the fair values of the assets acquired and liabilities assumed as a result of the merger. Basis of Presentation The accompanying consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). The accounting and reporting 8 Table of Contents Note 1— Nature of Business Activities and Significant Accounting Policies (continued) policies of the Company conform to GAAP and reflect practices of the banking industry. They do not include all of the information and notes required by GAAP for complete financial statements. As such, these unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2025, included in the Company’s Annual Report on Form 10-K filed with the SEC on February 27, 2026. The consolidated financial statements include the accounts of the Company and the Bank (as its wholly-owned subsidiary). All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. The results of operations for the three months ended March 31, 2026, are not necessarily indicative of the results to be expected for any other interim period or for the full year. All December 31, 2025, amounts and disclosures included in this quarterly report were derived from the Company’s audited consolidated financial statements. Certain items in the prior period have been reclassified to conform to the current presentation. These reclassifications had no effect on prior year net income or on shareholders’ equity. Adoption of new accounting standards In November 2025, the FASB issued ASU 2025-08, Financial Instruments - Credit Losses (Topic 326): Purchased Loans. This ASU amends the accounting for certain acquired loans by expanding the use of the “gross‑up” approach under the CECL model to include purchased seasoned loans. Under this approach, the allowance for expected credit losses is recognized at the acquisition date as an adjustment to the loan’s amortized cost basis, rather than through a provision for credit losses, thereby eliminating a “day‑one” credit loss expense for loans within the scope of the guidance. The amendments do not change the accounting for purchased credit‑deteriorated loans, originated loans, credit card loans, or debt securities. The amendments in this update are effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years, and are to be applied on a prospective basis. Early adoption is permitted. As permitted, the Company has elected to early adopt the amended guidance on January 1, 2026 on a prospective basis. The Company expects that substantially all the loans acquired in the LNKB Merger will be considered seasoned. Newly issued not yet adopted accounting standards In November 2024, the FASB issued ASU 2024-03, Income Statement (Subtopic 220-40): Reporting Comprehensive Income—Expense Disaggregation Disclosures. This ASU seeks to improve disclosures about a public business entity’s expenses and addresses requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. This ASU is not expected to have a material impact on our consolidated financial statements. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative . This ASU incorporates certain amendments to SEC disclosure requirements into the FASB Accounting Standards Codification. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC’s removal of the related disclosure requirement becomes effective. For all other entities, the effective date will be two years after the date of such removal. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. We do not expect the adoption of ASU 2023-06 to have a material impact on our consolidated financial statements. 9 Table of Contents Note 2— Securities The carrying amount of available-for-sale (“AFS”) securities and their approximate fair values 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 Securities Available-for-Sale U.S. Treasuries and government agencies $ 158,733 $ — $ 9,270 $ 149,463 Obligations of states and municipalities 1,054,158 1,868 65,757 990,269 Residential mortgage backed - agency 60,008 357 2,990 57,375 Residential mortgage backed - non-agency 379,401 1,097 8,012 372,486 Commercial mortgage backed - agency 72,465 29 810 71,684 Commercial mortgage backed - non-agency 100,064 282 1,969 98,377 Asset-backed 50,732 111 543 50,300 Other 36,954 186 1,057 36,083 Total $ 1,912,515 $ 3,930 $ 90,408 $ 1,826,037 December 31, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 159,088 $ — $ 8,964 $ 150,124 Obligations of states and municipalities 977,104 5,414 59,944 922,574 Residential mortgage backed - agency 57,731 464 2,810 55,385 Residential mortgage backed - non-agency 221,443 1,860 5,211 218,092 Commercial mortgage backed - agency 74,253 250 607 73,896 Commercial mortgage backed - non-agency 112,082 584 1,557 111,109 Asset-backed 53,954 89 577 53,466 Other 32,162 158 1,012 31,308 Total $ 1,687,817 $ 8,819 $ 80,682 $ 1,615,954 At March 31, 2026, and December 31, 2025, AFS securities with amortized costs of $ 1.1 billion and $ 1.1 billion, respectively, and with estimated fair values of $ 1.0 billion and $ 1.1 billion, respectively, were pledged to serve as collateral for secured borrowings, derivative exposures, or to secure public deposits as required or permitted by law. The proceeds from sales, calls, and maturities of debt securities available-for-sale, including principal payments received, and the related gross gains and losses realized, for the three months ended March 31, 2026, and March 31, 2025, were as follows (in thousands): Proceeds from Gross realized Three Months Ended March 31, Sales Calls and maturities Principal Payments Gains Losses 2026 $ 65,418 $ 11,215 $ 19,142 $ 2,004 $ 205 2025 — 10,867 39,506 1 — The tax benefit (provision) related to the net realized gains and losses for the three months ended March 31, 2026, and March 31, 2025, was ($ 411.8 ) thousand, and ($ 0.2 ) thousand, respectively. The maturities of AFS securities at March 31, 2026, were as follows (in thousands): (Expected maturities of securities not due at a single maturity date are based on average life at estimated prepayment speed. Expected maturities may differ from 10 Table of Contents Note 2— Securities (continued) contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). March 31, 2026 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 158,733 $ — $ — $ 158,733 Obligations of states and municipalities 6,000 273,806 543,525 230,827 1,054,158 Residential mortgage backed - agency — 25,872 26,284 7,852 60,008 Residential mortgage backed - non-agency 2,014 82,568 267,098 27,721 379,401 Commercial mortgage backed - agency — 46,711 25,754 — 72,465 Commercial mortgage backed - non-agency 7,162 66,128 26,774 — 100,064 Asset-backed 2,610 33,268 14,854 — 50,732 Other — 2,811 25,034 9,109 36,954 Total $ 17,786 $ 689,897 $ 929,323 $ 275,509 $ 1,912,515 March 31, 2026 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 149,463 $ — $ — $ 149,463 Obligations of states and municipalities 5,982 261,801 514,455 208,031 990,269 Residential mortgage backed - agency — 25,920 23,350 8,105 57,375 Residential mortgage backed - non-agency 2,000 80,279 262,595 27,612 372,486 Commercial mortgage backed - agency — 46,197 25,487 — 71,684 Commercial mortgage backed - non-agency 7,108 64,213 27,056 — 98,377 Asset-backed 2,599 32,994 14,707 — 50,300 Other — 2,888 24,243 8,952 36,083 Total $ 17,689 $ 663,755 $ 891,893 $ 252,700 $ 1,826,037 At March 31, 2026, and December 31, 2025, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in any amount greater than 10% of shareholders’ equity. 11 Table of Contents Note 2— Securities (continued) The following table shows the gross unrealized losses and fair value of the Company’s securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2026, and December 31, 2025. AFS securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): March 31, 2026 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ — $ 149,463 $ 9,270 $ 9,270 Obligations of states and municipalities 311,372 5,567 494,147 60,190 65,757 Residential mortgage backed - agency 20,341 98 19,335 2,892 2,990 Residential mortgage backed - non-agency 180,092 2,877 82,348 5,135 8,012 Commercial mortgage backed - agency 45,025 373 25,202 437 810 Commercial mortgage backed - non-agency 45,095 485 21,778 1,484 1,969 Asset-backed 13,342 47 25,103 496 543 Other — — 22,271 1,057 1,057 Total $ 615,267 $ 9,447 $ 839,647 $ 80,961 $ 90,408 December 31, 2025 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ — $ 150,124 $ 8,964 $ 8,964 Obligations of states and municipalities 134,143 1,852 513,623 58,092 59,944 Residential mortgage backed - agency 4,461 4 24,832 2,806 2,810 Residential mortgage backed - non-agency 11,545 17 85,750 5,194 5,211 Commercial mortgage backed - agency 14,987 93 26,032 514 607 Commercial mortgage backed - non-agency 29,730 131 30,175 1,426 1,557 Asset-backed 14,531 38 27,750 539 577 Other — — 22,288 1,012 1,012 Total $ 209,397 $ 2,135 $ 880,574 $ 78,547 $ 80,682 The Company is required to conduct an impairment evaluation on AFS securities to determine whether the Company has the intent to sell the security or it is more likely than not that it will be required to sell the security before recovery. If these situations apply, the guidance requires the Company to reduce the security’s amortized cost basis down to its fair value through earnings. The Company also evaluates the unrealized losses on AFS securities to determine if a security’s decline in fair value below its amortized cost basis is due to credit factors. The evaluation is based upon factors such as the creditworthiness of the underlying borrowers, performance of the underlying collateral, if applicable, and the level of credit support in the security structure. Management also evaluates other factors and circumstances that may be indicative of a decline in the fair value of the security due to a credit factor. This includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost, and near-term prospects of the issuer. If this assessment indicates that a credit loss exists, the present value of the expected cash flows of the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost, an allowance for credit losses (“ACL”) is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis under the current expected credit loss (“CECL”) standard, and declines due to non-credit factors are recorded in accumulated 12 Table of Contents Note 2— Securities (continued) other comprehensive income (“AOCI”), net of taxes. If a credit loss is recognized in earnings, subsequent improvements to the expectation of collectability will be recognized through the ACL. If the fair value of the security increases above its amortized cost, the unrealized gain will be recorded in accumulated other comprehensive income, net of taxes, in the Consolidated Balance Sheets. The Company did no t record an ACL on the AFS securities as of March 31, 2026, or December 31, 2025. The Company considers the unrealized losses on the AFS securities to be related to fluctuations in market conditions, primarily interest rates, and not reflective of deterioration in credit. The Company had 478 securities in an unrealized loss position as of March 31, 2026. The Company has evaluated AFS securities in an unrealized loss position for credit-related impairment at March 31, 2026, and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the securities at a price less than the par value of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis. As such, there was no ACL on AFS securities at March 31, 2026. Securities of U.S. Treasury and Federal Agencies and Federal Agency Mortgage (Residential and Commercial) Backed Securities At March 31, 2026, the unrealized losses associated with 10 U.S. Treasuries and Government Agency securities, 11 Residential Mortgage Backed – Agency securities, and 15 Commercial Mortgage Backed – Agency securities were generally driven by changes in interest rates and not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2026. Securities of U.S. States and Municipalities At March 31, 2026, the unrealized losses associated with 347 State and Municipal securities were primarily caused by changes in interest rates and not the credit quality of the securities. These securities are investment grade and were generally underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. These securities will continue to be monitored as part of our ongoing impairment analysis but are expected to perform, even if the rating agencies reduce the credit rating of the bond insurers. As a result, we expect to recover the entire amortized cost basis of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2026. Residential & Commercial Mortgage Backed – Non-Agency Securities At March 31, 2026, the unrealized losses associated with 63 Residential Mortgage Backed – Non-Agency securities and 8 Commercial Mortgage Backed – Non-Agency securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2026. Asset-Backed Securities At March 31, 2026, the unrealized losses associated with 17 Asset-Backed securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2026. Other Securities At March 31, 2026, the unrealized losses associated with 7 securities were primarily driven by interest rates and not the credit quality of the securities. These investments were underwritten in accordance with our own investment standards 13 Table of Contents Note 2— Securities (continued) prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. Based on our assessment of the expected credit losses, we expect to recover the entire amortized cost basis of the securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2026. Restricted stock, at cost The Company’s investment in Federal Home Loan Bank (“FHLB”) stock totaled $ 30.5 million and $ 26.8 million at March 31, 2026, and December 31, 2025, respectively. The Company’s investment in Federal Reserve Bank stock totaled $ 14.8 million and $ 14.8 million at March 31, 2026, and December 31, 2025, respectively. FHLB and Federal Reserve stock are generally viewed as long-term investments and as restricted investment securities, which are carried at cost, because there is no market for the stocks other than member institutions. Therefore, when evaluating FHLB and Federal Reserve stock for impairment, their values are based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider these investments to be impaired at March 31, 2026, and no impairment has been recognized. FHLB stock and Federal Reserve stock are included in a separate line item, restricted stock, at cost on the Consolidated Balance Sheets and are not part of the Company’s AFS securities portfolio. The Company’s restricted stock line item on the Consolidated Balance Sheets also includes an investment in Community Bankers’ Bank, totaling $ 111 thousand at March 31, 2026, and $ 111 thousand at December 31, 2025, which is carried at cost and is not impaired at March 31, 2026. The Company also has other restricted stock investments including WV Bankers Title and Atlantic Community Bankers Bank which are included in restricted stock on the Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025. Note 3— Loans The Company’s loan portfolio segments, as reported in the tables below, include (i) commercial real estate, (ii) owner-occupied commercial real estate, (iii) acquisition, construction & development, (iv) commercial & industrial, (v) single family residential (1-4 units), and (vi) consumer non-real estate and other. The risks associated with lending activities differ among the various loan segments and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions. • Commercial real estate loans carry risk associated with either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. Other risk factors include the credit-worthiness of the sponsor and the value of the collateral. • Owner-occupied commercial real estate loans carry risk associated with the operations of the business that occupies the property and the value of the collateral. • Acquisition, construction & development loans carry risk associated with the credit-worthiness of the borrower, project completion within budget including the potential impact of volatile construction costs, sale after completion, and the value of the collateral. • Commercial & industrial loans carry the risk associated with the operations of the business and the value of the collateral, if any. • Single family residential (1-4 units) loans for consumer purposes carry risk associated with the continued credit-worthiness of the borrower and the value of the collateral. Single family residential (1-4 units) loans for investment purpose carry risk associated with the continued credit-worthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. • Consumer non-real estate and other loans, which includes overdrafts, carry risk associated with the credit-worthiness of the borrower and the value of the collateral, if any. 14 Table of Contents Note 3— Loans (continued) Loan balances as of March 31, 2026, and December 31, 2025, by portfolio segment were as follows (in thousands): March 31, 2026 December 31, 2025 Commercial real estate $ 2,806,846 $ 2,769,287 Owner-occupied commercial real estate 579,365 593,120 Acquisition, construction & development 352,686 386,870 Commercial & industrial 504,229 461,921 Single family residential (1-4 units) 1,128,740 1,127,684 Consumer non-real estate and other 32,801 48,794 Loans, gross 5,404,667 5,387,676 Allowance for credit losses ( 67,955 ) ( 67,823 ) Loans, net $ 5,336,712 $ 5,319,853 Net deferred loan fees included in the above loan categories totaled $ 6.1 million and $ 6.2 million at March 31, 2026, and December 31, 2025, respectively. Note 4— Allowance for Credit Losses The Company’s ACL is calculated quarterly, with any adjustment recorded to the provision for credit losses in the Consolidated Statement of Income. Management calculates the quantitative portion of collectively evaluated loans for all loan categories using the weighted average remaining maturity (“WARM”) method. For purposes of estimating the Company’s ACL, management generally evaluates collectively evaluated loans by federal call code in order to group loans with similar risk characteristics. Loans that do not share similar risk characteristics are evaluated on an individual loan basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans that are collectively evaluated on a loan pool basis. A specific reserve analysis may be applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve is assigned if the measured value of the loan using one of the before mentioned methods is less than the carrying value of the loan. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond the information that is used to calculate a reasonable and supportable forecast and a reversion period forecast on collectively evaluated loans. Management may consider an additional or reduced reserve as warranted through qualitative risk factors based on the current and expected conditions as measured in supplemental information relative to the macroeconomic variable loss drivers used to calculate a reasonable and supportable forecast and a reversion period forecast. These qualitative risk factors considered by management are largely comparable to legacy factors prior to the adoption of CECL. 15 Table of Contents Note 4— Allowance for Credit Losses (continued) The following tables present the activity in the ACL for the three months ended March 31, 2026, and for the three months ended March 31, 2025, (in thousands). Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Total Three months ended March 31, 2026 Balance, beginning of period $ 26,190 $ 2,760 $ 17,221 $ 8,227 $ 12,536 $ 889 $ 67,823 Provision for (recapture of) credit losses 805 455 ( 448 ) ( 47 ) ( 651 ) 99 213 Charge-offs — ( 65 ) — — ( 65 ) ( 360 ) ( 490 ) Recoveries 6 — — 11 108 284 409 Balance, end of period $ 27,001 $ 3,150 $ 16,773 $ 8,191 $ 11,928 $ 912 $ 67,955 March 31, 2025 Balance, beginning of period $ 30,444 $ 3,261 $ 17,386 $ 6,633 $ 9,763 $ 553 $ 68,040 Provision for (recapture of) credit losses 4,296 699 ( 5,912 ) 1,728 ( 308 ) 397 900 Charge-offs — ( 687 ) — ( 93 ) ( 33 ) ( 611 ) ( 1,424 ) Recoveries 6 — — 4 132 95 237 Balance, end of period $ 34,746 $ 3,273 $ 11,474 $ 8,272 $ 9,554 $ 434 $ 67,753 The recorded investment in loans excludes accrued interest receivable due to immateriality. The following table presents the aging of the recorded investment in past due loans as of March 31, 2026, and December 31, 2025, by portfolio segment (in thousands): March 31, 2026 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due or More & Still Accruing Non-accrual loans Commercial real estate $ 16,220 $ 34,578 $ 39,742 $ 90,540 $ 2,716,306 $ 2,806,846 $ 369 $ 41,896 Owner-occupied commercial real estate 6,048 1,278 6,159 13,485 565,880 579,365 183 6,842 Acquisition, construction & development 329 4,539 12,701 17,569 335,117 352,686 224 12,541 Commercial & industrial 2,621 347 7,013 9,981 494,248 504,229 1,715 5,617 Single family residential (1-4 units) 19,874 4,775 2,568 27,217 1,101,523 1,128,740 1,699 7,021 Consumer non-real estate and other 1,314 49 422 1,785 31,016 32,801 10 442 Total $ 46,406 $ 45,566 $ 68,605 $ 160,577 $ 5,244,090 $ 5,404,667 $ 4,200 $ 74,359 December 31, 2025 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due or More & Still Accruing Non-accrual loans Commercial real estate $ 4,535 $ 1,676 $ 37,891 $ 44,102 $ 2,725,185 $ 2,769,287 $ 677 $ 37,318 Owner-occupied commercial real estate 1,251 1,091 6,310 8,652 584,468 593,120 177 7,800 Acquisition, construction & development 578 699 13,243 14,520 372,350 386,870 559 12,793 Commercial & industrial 2,008 2,354 5,629 9,991 451,930 461,921 512 5,512 Single family residential (1-4 units) 14,823 7,541 3,594 25,958 1,101,726 1,127,684 1,694 6,802 Consumer non-real estate and other 395 151 346 892 47,902 48,794 4 388 Total $ 23,590 $ 13,512 $ 67,013 $ 104,115 $ 5,283,561 $ 5,387,676 $ 3,623 $ 70,613 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, current economic information, and other factors. The Company analyzes loans individually by classifying the loans by credit risk. The Company internally grades all commercial loans at the time of origination. In addition, the Company performs an annual review on at least 50% of the Bank’s commercial credit exposure. The Company uses the following definitions for credit risk classifications: 16 Table of Contents Note 4— Allowance for Credit Losses (continued) Pass : These include satisfactory loans that have acceptable levels of risk. Special Mention : Loans classified as special mention have a potential credit weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard : Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the orderly liquidation of debt. Loans classified as substandard are inadequately protected by sound net worth, payment capacity of the borrower, or of the collateral pledged. If weaknesses go uncorrected, there is potential for partial loss of principal and/or interest. Doubtful : Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and unlikely. Loss : Loans classified as a loss are considered to be uncollectible and cannot be justified to continue as viable assets. While there may be the possibility of some recovery in the future, it is not practical or desirable to defer writing off these loans at the present time. The Company has a portfolio of smaller homogenous loans that are not individually risk rated that are included within the single family residential and consumer non-real estate and other loan classes. Generally, these loan classes are rated as “Pass” unless these loans are on non-accrual and are then classified as substandard. The following table presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of March 31, 2026, and December 31, 2025 (in thousands): March 31, 2026 Term Loans 2026 2025 2024 2023 2022 Prior Revolving Loans Total Commercial real estate Pass $ 83,730 $ 312,039 $ 244,074 $ 421,242 $ 431,944 $ 944,158 $ 127,371 $ 2,564,558 Special Mention — — 5,372 5,229 5,080 32,637 2,468 50,786 Substandard — — — 15,671 50,226 98,651 15,406 179,954 Doubtful — — — — 4,508 6,576 464 11,548 Loss — — — — — — — — Total $ 83,730 $ 312,039 $ 249,446 $ 442,142 $ 491,758 $ 1,082,022 $ 145,709 $ 2,806,846 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Owner-occupied commercial real estate Pass $ 12,934 $ 72,792 $ 55,977 $ 58,648 $ 71,214 $ 247,735 $ 36,589 $ 555,889 Special Mention — — — — — 3,381 — 3,381 Substandard — 456 — 786 7,313 6,206 66 14,827 Doubtful — — — — 3,392 1,876 — 5,268 Loss — — — — — — — — Total $ 12,934 $ 73,248 $ 55,977 $ 59,434 $ 81,919 $ 259,198 $ 36,655 $ 579,365 Year to date gross charge-offs $ — $ — $ — $ — $ 65 $ — $ — $ 65 Acquisition, construction & development Pass $ 10,999 $ 56,108 $ 25,235 $ 93,877 $ 42,271 $ 42,818 $ 60,989 $ 332,297 Special Mention — — — 3,645 — 135 — 3,780 Substandard — — — 3,116 924 9,005 — 13,045 Doubtful — — — — 3,500 — 64 3,564 Loss — — — — — — — — Total $ 10,999 $ 56,108 $ 25,235 $ 100,638 $ 46,695 $ 51,958 $ 61,053 $ 352,686 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — 17 Table of Contents Note 4— Allowance for Credit Losses (continued) Commercial & industrial Pass $ 5,448 $ 61,638 $ 62,642 $ 24,157 $ 24,605 $ 37,282 $ 265,870 $ 481,642 Special Mention — 1,669 190 49 11,463 1,151 418 14,940 Substandard — 693 63 1,112 2,082 1,228 2,426 7,604 Doubtful — — — — — — — — Loss — — — — — 37 6 43 Total $ 5,448 $ 64,000 $ 62,895 $ 25,318 $ 38,150 $ 39,698 $ 268,720 $ 504,229 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Single family residential (1-4 units) Pass $ 27,595 $ 67,042 $ 75,112 $ 123,263 $ 177,765 $ 479,170 $ 168,971 $ 1,118,918 Special Mention — — 278 133 779 890 589 2,669 Substandard — 114 — 2,166 572 3,359 810 7,021 Doubtful — — — — — 82 — 82 Loss — — — — — 50 — 50 Total $ 27,595 $ 67,156 $ 75,390 $ 125,562 $ 179,116 $ 483,551 $ 170,370 $ 1,128,740 Year to date gross charge-offs $ — $ — $ — $ 41 $ — $ 24 $ — $ 65 Consumer non-real estate and other Pass $ 2,738 $ 7,776 $ 9,271 $ 4,489 $ 2,328 $ 1,930 $ 4,079 $ 32,611 Special Mention — — — 85 — 28 — 113 Substandard — — 60 16 — — — 76 Doubtful — — — — — — — — Loss 1 — — — — — — 1 Total $ 2,739 $ 7,776 $ 9,331 $ 4,590 $ 2,328 $ 1,958 $ 4,079 $ 32,801 Year to date gross charge-offs $ 292 $ 4 $ 44 $ 5 $ 15 $ — $ — $ 360 Totals $ 143,445 $ 580,327 $ 478,274 $ 757,684 $ 839,966 $ 1,918,385 $ 686,586 $ 5,404,667 December 31, 2025 Term Loans 2025 2024 2023 2022 2021 Prior Revolving Loans Total Commercial real estate Pass $ 324,565 $ 245,763 $ 377,142 $ 437,116 $ 383,808 $ 620,673 $ 128,260 $ 2,517,327 Special Mention — 5,395 5,224 13,941 — 34,172 2,468 61,200 Substandard — — 15,675 50,300 50,745 53,091 16,058 185,869 Doubtful — — — 3,156 — 1,735 — 4,891 Loss — — — — — — — — Total $ 324,565 $ 251,158 $ 398,041 $ 504,513 $ 434,553 $ 709,671 $ 146,786 $ 2,769,287 Year to date gross charge-offs $ — $ — $ — $ — $ — $ 116 $ — $ 116 Owner-occupied commercial real estate Pass $ 72,903 $ 57,923 $ 61,402 $ 75,692 $ 91,329 $ 175,545 $ 32,434 $ 567,228 Special Mention — — 274 6,182 232 3,421 — 10,109 Substandard 459 — 521 2,002 1,113 6,391 73 10,559 Doubtful — — — 3,404 1,820 — — 5,224 Loss — — — — — — — — Total $ 73,362 $ 57,923 $ 62,197 $ 87,280 $ 94,494 $ 185,357 $ 32,507 $ 593,120 Year to date gross charge-offs $ — $ — $ — $ 363 $ 10 $ 632 $ 95 $ 1,100 Acquisition, construction & development Pass $ 51,546 $ 27,499 $ 139,222 $ 56,766 $ 32,792 $ 13,664 $ 48,012 $ 369,501 18 Table of Contents Note 4— Allowance for Credit Losses (continued) Special Mention — — 3,511 — — 137 91 3,739 Substandard — — 258 812 4,062 4,974 — 10,106 Doubtful — — — 3,415 — — 109 3,524 Loss — — — — — — — — Total $ 51,546 $ 27,499 $ 142,991 $ 60,993 $ 36,854 $ 18,775 $ 48,212 $ 386,870 Year to date gross charge-offs $ — $ — $ 1 $ — $ — $ — $ — $ 1 Commercial & industrial Pass $ 63,901 $ 66,758 $ 27,018 $ 25,659 $ 16,991 $ 26,677 $ 206,654 $ 433,658 Special Mention 1,814 2,086 637 13,788 — 1,238 1,009 20,572 Substandard 704 64 855 2,286 192 1,083 2,463 7,647 Doubtful — — — — — — — — Loss — — — — — 37 7 44 Total $ 66,419 $ 68,908 $ 28,510 $ 41,733 $ 17,183 $ 29,035 $ 210,133 $ 461,921 Year to date gross charge-offs $ — $ — $ 32 $ 8 $ — $ 14 $ 184 $ 238 Single family residential (1-4 units) Pass $ 66,662 $ 82,957 $ 131,349 $ 180,837 $ 125,345 $ 362,811 $ 168,043 $ 1,118,004 Special Mention — 283 134 788 401 503 673 2,782 Substandard 115 — 1,615 589 713 3,434 336 6,802 Doubtful — — — — — 95 — 95 Loss — — — — — 1 — 1 Total $ 66,777 $ 83,240 $ 133,098 $ 182,214 $ 126,459 $ 366,844 $ 169,052 $ 1,127,684 Year to date gross charge-offs $ — $ — $ — $ — $ — $ 60 $ 172 $ 232 Consumer non-real estate and other Pass $ 9,612 $ 10,961 $ 5,543 $ 2,804 $ 687 $ 1,645 $ 17,335 $ 48,587 Special Mention — — 92 — 33 — — 125 Substandard — 62 20 — — — — 82 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 9,612 $ 11,023 $ 5,655 $ 2,804 $ 720 $ 1,645 $ 17,335 $ 48,794 Year to date gross charge-offs $ 1,750 $ 195 $ 133 $ 62 $ 2 $ 1 $ 5 $ 2,148 Totals $ 592,281 $ 499,751 $ 770,492 $ 879,537 $ 710,263 $ 1,311,327 $ 624,025 $ 5,387,676 Loans for which the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral are considered to be collateral-dependent loans. Collateral can have a significant financial effect in mitigating exposure to credit risk and, where there is sufficient collateral, an allowance for credit losses is not recognized or is minimal. For collateral-dependent loans, the allowance for credit losses is individually assessed based on the fair value of the collateral less estimated costs of sale. The Company's collateral-dependent loans are secured by real estate, inventory and equipment. Collateral values are generally based on appraisals, which are adjusted for changes in market indices. As of March 31, 2026 and December 31, 2025, the Company had $ 72.4 million and $ 68.7 million of collateral-dependent impaired loans, respectively. The collateral-dependent loans at March 31, 2026 consisted of $ 43.0 million of commercial real estate loans, $ 8.1 million of owner-occupied commercial real estate loans, $ 13.1 million of acquisition, construction & development loans, $ 4.2 million of commercial & industrial loans, and $ 4.1 million of single family residential loans. The collateral-dependent loans at December 31, 2025 consisted of $ 38.2 million of commercial real estate loans, $ 9.0 million of owner-occupied commercial real estate loans, $ 13.3 million of acquisition, construction & development loans, $ 4.4 million of commercial & industrial loans, and $ 3.8 million of single family residential loans. For the three months ended March 31, 2026 and the year ended December 31, 2025, there were no significant deterioration or changes in the collateral securing these loans. 19 Table of Contents Note 4— Allowance for Credit Losses (continued) The following tables present information about collateral-dependent loans that were individually evaluated for purposes of determining the ACL as of March 31, 2026, and December 31, 2025 (in thousands): March 31, 2026 With Allowance With No Related Allowance Total Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance March 31, 2026 Commercial real estate $ 21,546 $ 5,726 $ 21,481 $ 43,027 $ 5,726 Owner-occupied commercial real estate 456 128 7,600 8,056 128 Acquisition, construction & development 8,535 2,731 4,564 13,099 2,731 Commercial & industrial 4,187 3,993 — 4,187 3,993 Single family residential (1-4 units) 637 4 3,419 4,056 4 Consumer non-real estate and other — — — — — Total $ 35,361 $ 12,582 $ 37,064 $ 72,425 $ 12,582 December 31, 2025 With Allowance With No Related Allowance Total Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance December 31, 2025 Commercial real estate $ 14,316 $ 3,939 $ 23,857 $ 38,173 $ 3,939 Owner-occupied commercial real estate — — 8,987 8,987 — Acquisition, construction & development 4,071 1,431 9,276 13,347 1,431 Commercial & industrial 4,440 4,227 — 4,440 4,227 Single family residential (1-4 units) 258 35 3,516 3,774 35 Consumer non-real estate and other — — — — — Total $ 23,085 $ 9,632 $ 45,636 $ 68,721 $ 9,632 Purchased Credit Deteriorated Loans The Company has purchased loans relating to our 2024 merger with Summit Financial Group, Inc. (the “Summit Merger”) for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans, at acquisition, is as follows (in thousands): Amounts Purchase price of loans at acquisition $ 380,795 Allowance for credit losses at acquisition 23,910 Non-credit discount/(premium) at acquisition 37,640 Par value of acquired loans at acquisition $ 442,345 Loan Modifications On January 1, 2023, the Company adopted ASU 2022-02 on a modified retrospective basis. ASU 2022-02 eliminates the troubled debt restructuring (“TDR”) accounting model and requires that the Company evaluate, based on the accounting for loan modifications, whether the borrower is experiencing financial difficulty, and the modification results in a more-than-insignificant direct change in the contractual cash flows and represents a new loan or a continuation of an existing loan. This change required all loan modifications to be accounted for under the general loan modification guidance in ASC 310-20, Receivables — Nonrefundable Fees and Other Costs , and subjects entities to new disclosure requirements on loan modifications to borrowers experiencing financial difficulty. The Company may modify loans to borrowers experiencing financial difficulty by providing principal forgiveness, term extension, interest rate reduction, or an other-than-insignificant payment delay. When principal forgiveness is provided, the 20 Table of Contents Note 4— Allowance for Credit Losses (continued) amount of forgiveness is charged off against the ACL. The Company may also provide multiple types of modifications on an individual loan. For the three months ended March 31, 2026, and for the year ended, December 31, 2025, the Company did not extend any modifications to borrowers experiencing financial difficulty that had a more-than-insignificant direct change in the contractual cash flows of the loan. Other Real Estate Owned Real estate owned activity was as follows for the three months ended March 31, 2026, and for the year ended, December 31, 2025 (in thousands): March 31, 2026 December 31, 2025 Beginning balance $ 2,689 $ 2,783 Loans acquired/transferred to real estate owned 417 259 Capital expenditures — — Direct write-downs — ( 195 ) Sales of real estate owned — ( 158 ) End of period balance $ 3,106 $ 2,689 Note 5— Deposits The aggregate amount of time deposits that meet or exceed the FDIC Insurance Limit of $250,000, was approximately $ 302.2 million and $ 295.4 million on March 31, 2026, and December 31, 2025, respectively. Brokered time deposits, which are fully insured, totaled $ 3.4 million and $ 64.4 million as of March 31, 2026, and December 31, 2025, respectively. Time deposits through the Certificate of Deposit Account Registry Service (“CDARS”) program totaled $ 22.4 million at March 31, 2026, compared to $ 22.4 million at December 31, 2025. The remaining maturities of time deposits as of March 31, 2026 are as follows (in thousands): As of March 31, 2026 Remaining nine months ending, December 31, 2026 $ 899,459 2027 90,923 2028 11,607 2029 6,443 2030 5,378 Thereafter 6,608 Total $ 1,020,418 At March 31, 2026, and December 31, 2025, amounts included in time deposits for individual retirement accounts totaled $ 110.7 million and $ 111.2 million, respectively. Overdrafts of $ 524.4 thousand and $ 704.0 thousand were reclassified to loans as of March 31, 2026, and December 31, 2025, respectively. Note 6— Borrowed Funds Short-term borrowings The Company had borrowings of $ 525.0 million and $ 450.0 million at March 31, 2026, and December 31, 2025, respectively. At March 31, 2026, the interest rate on this debt was 3.82 %. At December 31, 2025, the interest rate on this debt was 3.75 %. The average balance outstanding during the three months ending March 31, 2026, and the year ending December 31, 2025, was $ 492.4 million and $ 422.1 million, respectively. The Company has a finance lease liability that is not included in these balances - see Note 7 - Leased Property for a discussion of this liability that is included in the accrued interest and other liabilities line in the Consolidated Balance Sheets. The Company has available secured lines of credit with the Federal Reserve Bank of Richmond, such as the Borrower-In-Custody program, the FHLB of Atlanta, and unsecured federal funds lines of credit from correspondent banking 21 Table of Contents Note 6— Borrowed Funds (continued) relationships. Through these sources, the Company has unused capacity of $ 4.7 billion in remaining borrowing capacity as of March 31, 2026. The advances on credit lines are secured by both securities and loans. The lendable collateral value of securities and loans pledged against available lines of credit as of March 31, 2026, and December 31, 2025, was $ 3.4 billion and $ 3.2 billion, respectively. As of March 31, 2026, all of the Company’s borrowings will mature within one calendar year. The contractual maturities of these borrowings, which all occur within one year of the reporting date, are as follows as of March 31, 2026, (in thousands): Due in 2026 $ 525,000 Total $ 525,000 Long-term borrowings Subordinated Debentures As part of the Summit Merger, Burke & Herbert assumed $ 75.0 million of subordinated debentures, that were fair valued at $ 61.5 million with a $ 13.5 million discount being amortized into interest expense over the stated maturity. As of March 31, 2026, the net balance was $ 71.5 million. The subordinated debt qualifies as Tier 2 capital under Federal Reserve Board guidelines, until the debt is within 5 years of its maturity; thereafter, the amount qualifying as Tier 2 capital is reduced 20 % each year until maturity. The subordinated debentures were issued in the fourth quarter of 2021. This subordinated debt bears interest at a fixed rate of 3.25 % per year, from acquisition date to, but excluding, December 1, 2026, payable semi-annually in arrears. From and including, December 1, 2026 to, but excluding, the maturity date or earlier redemption date, the interest rate will reset quarterly at a variable rate equal to the then current three-month term Secured Overnight Financing Rate (“SOFR”), as published by the Federal Reserve Bank of New York, plus 230 basis points, payable quarterly in arrears. This debt has a 10 -year term, and generally, is not prepayable by us within the first 5 years from issuance, which was fourth quarter 2021. Subordinated Debentures Owed to Unconsolidated Subsidiary Trusts As part of the Summit Merger, Burke & Herbert became the sponsor for SFG Capital Trust I, SFG Capital Trust II, and SFG Capital Trust III. For each of these trusts, 100 % of the common equity is owned by us. SFG Capital Trust I issued $ 3.5 million in capital securities and $ 109 thousand in common securities and invested the proceeds in $ 3.6 million of debentures, which were assumed by Burke & Herbert in the Summit Merger. SFG Capital Trust II issued $ 7.5 million in capital securities and $ 232 thousand in common securities and invested the proceeds in $ 7.7 million of debentures, which were assumed by Burke & Herbert in the Summit Merger. SFG Capital Trust III issued $ 8.0 million in capital securities and $ 248 thousand in common securities and invested the proceeds in $ 8.3 million of debentures, which were assumed by Burke & Herbert in the Summit Merger. Distributions on the capital securities issued by the trusts are payable quarterly at a variable rate equal to three-month term SOFR, plus 345 basis points for SFG Capital Trust I, three-month term SOFR, plus 280 basis points for SFG Capital Trust II, and three-month term SOFR, plus 145 basis points for SFG Capital Trust III, and equals the interest rate earned on the debentures held by the trusts and is recorded as interest expense by us. The capital securities are subject to mandatory redemption in whole, or in part, upon repayment of the debentures. We have entered into agreements which, taken collectively, fully and unconditionally guarantee the capital securities subject to the terms of the guarantee. The debentures of each Capital Trust are redeemable by us quarterly. The capital securities issued by SFG Capital Trust I, SFG Capital Trust II, and SFG Capital Trust III qualify as Tier 1 capital under the Federal Reserve guidelines. In accordance with these Guidelines, trust preferred securities are limited to 22 Table of Contents Note 6— Borrowed Funds (continued) 25% of Tier 1 capital elements, net of goodwill. The amount of trust preferred securities and certain other elements in excess of the limit can be included in Tier 2 capital. The remaining maturities of subordinated debentures as of March 31, 2026, are as follows (in thousands): Subordinated debentures Subordinated debentures owed to unconsolidated subsidiary trusts Remaining nine months ending, December 31, 2026 $ — $ — 2027 — — 2028 — — 2029 — — 2030 — — Thereafter 75,000 19,589 Total $ 75,000 $ 19,589 Note 7— Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around one year to around nine years and may contain renewal options. The components of lease income, which were included in non-interest expense on the Consolidated Statements of Income, were as follows (in thousands): Three Months Ended March 31, 2026 2025 Operating lease income $ 695 $ 693 Total lease income $ 695 $ 693 The remaining maturities of operating lease receivables as of March 31, 2026, are as follows (in thousands): Operating Leases Remaining nine months ending, December 31, 2026 $ 1,949 2027 2,400 2028 2,330 2029 2,130 2030 1,585 Thereafter 1,370 Total lease receivables $ 11,764 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around twelve years . The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. 23 Table of Contents Note 7— Leased Property (continued) Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2026 December 31, 2025 Right-of-use assets: Operating leases Other assets $ 13,416 $ 14,096 Finance leases Other assets 4,299 3,795 Total right-of-use assets $ 17,715 $ 17,891 Lease liabilities: Operating leases Other liabilities $ 14,047 $ 14,717 Finance leases Other liabilities 4,680 4,158 Total lease liabilities $ 18,727 $ 18,875 The components of total lease cost were as follows (in thousands): Three Months Ended March 31, 2026 2025 Finance lease cost Right-of-use asset amortization $ 96 $ 71 Interest expense 35 27 Operating lease cost 843 834 Total lease cost $ 974 $ 932 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2026, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending, December 31, 2026 $ 2,507 $ 371 2027 3,015 504 2028 2,451 515 2029 2,240 526 2030 1,680 538 Thereafter 4,861 3,157 Total undiscounted lease payments 16,754 5,611 Less: discount ( 2,707 ) ( 931 ) Net lease liabilities $ 14,047 $ 4,680 24 Table of Contents Note 7— Leased Property (continued) The following table presents additional information about the Company’s leases as of March 31, 2026, and December 31, 2025. Supplemental lease information (dollars in thousands) March 31, 2026 December 31, 2025 Finance lease weighted average remaining lease term (years) 10.28 10.61 Finance lease weighted average discount rate 3.44 % 3.32 % Operating lease weighted average remaining lease term (years) 6.53 6.66 Operating lease weighted average discount rate 4.65 % 4.64 % Three Months Ended March 31, Cash paid for amounts included in the measurement of lease liabilities 2026 2025 Operating cash flows from operating leases $ 835 $ 778 Operating cash flows from finance leases 35 27 Financing cash flows from finance leases 78 56 Right-of-use assets obtained in exchange for new finance lease liabilities 600 — Right-of-use assets obtained in exchange for new operating lease liabilities — — Note 8— Regulatory Capital Matters Banks and financial holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, “prompt corrective action” regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel III Framework, an entity must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The net unrealized gain or loss on AFS securities is not included in computing regulatory capital. Management believes as of March 31, 2026, the Company and the Bank meet all capital adequacy requirements to which they are subject. “Prompt corrective action” regulations provide five classifications: “well capitalized”, “adequately capitalized”, “undercapitalized”, “significantly undercapitalized”, and “critically undercapitalized”, although these terms are not used to represent overall financial condition. If “adequately capitalized”, regulatory approval is required to accept brokered deposits. If “undercapitalized”, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of March 31, 2026, and December 31, 2025, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for “prompt corrective action.” 25 Table of Contents Note 8— Regulatory Capital Matters (continued) The following table presents the actual and required capital amounts and ratios for the Company and the Bank at March 31, 2026, and December 31, 2025 (in thousands except for ratios): Actual Minimum Required Capital - Basel III Minimum Required to be Well Capitalized Amount Ratio Amount Ratio Amount Ratio As of March 31, 2026 Total Capital to risk weighted assets Consolidated $ 1,026,838 16.52 % $ 652,804 ≥ 10.5 % $ 621,718 N/A Burke & Herbert Bank & Trust 1,010,788 16.29 651,547 ≥ 10.5 620,521 ≥ 10.0 % Tier 1 (Core) Capital to risk weighted assets Consolidated 884,378 14.22 528,460 ≥ 8.5 497,374 N/A Burke & Herbert Bank & Trust 939,838 15.15 527,443 ≥ 8.5 496,417 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 856,634 13.78 435,203 ≥ 7.0 404,117 N/A Burke & Herbert Bank & Trust 939,838 15.15 434,365 ≥ 7.0 403,339 ≥ 6.5 Tier 1 (Core) Capital to average assets (leverage ratio) Consolidated 884,378 11.27 313,866 ≥ 4.0 392,332 N/A Burke & Herbert Bank & Trust 939,838 11.97 314,043 ≥ 4.0 392,554 ≥ 5.0 As of December 31, 2025 Total Capital to risk weighted assets Consolidated $ 1,004,898 16.17 % $ 652,648 ≥ 10.5 % $ 621,570 N/A Burke & Herbert Bank & Trust 986,269 15.92 650,649 ≥ 10.5 619,665 ≥ 10.0 % Tier 1 (Core) Capital to risk weighted assets Consolidated 863,657 13.89 528,334 ≥ 8.5 497,256 N/A Burke & Herbert Bank & Trust 915,250 14.77 526,716 ≥ 8.5 495,732 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 835,976 13.45 435,099 ≥ 7.0 404,020 N/A Burke & Herbert Bank & Trust 915,250 14.77 433,766 ≥ 7.0 402,782 ≥ 6.5 Tier 1 (Core) Capital to average assets (leverage ratio) Consolidated 863,657 10.92 316,492 ≥ 4.0 395,615 N/A Burke & Herbert Bank & Trust 915,250 11.59 315,898 ≥ 4.0 394,873 ≥ 5.0 The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. As of March 31, 2026, approximately $ 359.2 million of retained earnings was available for dividend declaration consistent with the Company’s capital plan. Note 9— Derivatives The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Cash flow hedges of interest rate risk The Company’s objective in using interest rate derivatives is to add stability to net interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps, caps, and floors as part of its interest rate risk management strategy. Interest rate swaps, designated as cash flow hedges, involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. As of March 31, 2026, such derivatives were 26 Table of Contents Note 9— Derivatives (continued) used to hedge the variable cash flows associated with variable-rate liabilities. As of March 31, 2025, such derivatives were used to hedge the variable cash flows associated with variable-rate debt and variable-rate securities. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCI and subsequently reclassified into interest expense or interest income in the same period(s) during which the hedged transaction affects earnings. During the next twelve months, the Company estimates that an additional $ 1.4 million will be reclassified as a reduction in interest expense. Derivatives not designated as hedges The Company enters into interest rate swaps with its loan customers to facilitate their financing requests. Upon entering into swaps with our loan customers, the Company will enter into corresponding offsetting derivatives with third parties. These derivatives represent economic hedges and do not qualify as hedges for accounting. These back-to-back interest rate swaps are reported at fair value in other assets and accrued interest and other liabilities in the Company’s Consolidated Balance Sheets. Changes in the fair value of interest rate swaps are recorded in other non-interest expense and sum to zero because of offsetting terms of swaps with borrowers and swaps with dealer counterparties. The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Consolidated Balance Sheets as of March 31, 2026, and December 31, 2025 (in thousands): March 31, 2026 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other assets $ 425,000 $ 1,589 Interest rate swaps related to cash flow hedges Other liabilities 200,000 5 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 228,711 $ 1,447 Interest rate swaps related to customer loans Other liabilities 228,711 1,447 December 31, 2025 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other assets $ 150,000 $ 273 Interest rate swaps related to cash flow hedges Other liabilities 400,000 340 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 203,904 $ 2,331 Interest rate swaps related to customer loans Other liabilities 203,904 2,331 27 Table of Contents Note 9— Derivatives (continued) The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended March 31, 2026, and March 31, 2025 (in thousands): Derivatives in Cash Flow Hedging Relationships March 31, 2026 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2026 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ — $ — $ — Interest Income $ — $ — $ — Interest Rate Products 1,668 1,668 — Interest Expense 36 36 — Total $ 1,668 $ 1,668 $ — $ 36 $ 36 $ — Derivatives in Cash Flow Hedging Relationships March 31, 2025 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2025 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ — $ — $ — Interest Income $ — $ — $ — Interest Rate Products 480 480 — Interest Expense 428 428 — Total $ 480 $ 480 $ — $ 428 $ 428 $ — The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the three months ended March 31, 2026, and March 31, 2025 (in thousands). Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Three months ended March 31, 2026 March 31, 2025 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded $ 40 $ 36 $ 40 $ 428 The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (1) 40 — 40 — Derivatives designated as hedging instruments — — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income — 36 — 428 Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component — 36 — 428 Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — — (1) The Company voluntarily discontinued a fair value hedging relationship and these amounts include the gain or (loss) and the hedging adjustment on a voluntary discontinued hedging relationship. The Company has allocated the basis adjustment to the remaining individual assets in the closed portfolio and will amortize the basis adjustment over a period consistent with amortization of other discounts or premiums on the assets. 28 Table of Contents Note 9— Derivatives (continued) Credit-risk-related Contingent Features As of March 31, 2026, the fair value of derivatives in a liability position, which includes accrued interest but excludes any adjustment for non-performance risk related to these agreements, was $ 4.6 thousand. As of December 31, 2025, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for non-performance risk related to these agreements, was $ 340.0 thousand. As of March 31, 2026, and as of December 31, 2025, the Company has posted the full amount of collateral related to these agreements. Note 10— Commitments and Contingencies Credit extension commitments The Company’s financial statements do not reflect various financial instruments which arise in the normal course of business and which involve elements of credit risk, interest rate risk, and liquidity risk. These financial instruments include commitments to extend credit (e.g., revolving lines of credit) and commercial letters of credit. Many of our lending relationships contain both funded and unfunded elements. The funded portion is reflected on our balance sheet. The unfunded portion of these commitments is not recorded on our balance sheet until a draw is made under the loan facility. Since many of our commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. A summary of the contractual amounts of the Company’s financial instruments outstanding at March 31, 2026, and December 31, 2025, is as follows (in thousands): March 31, 2026 December 31, 2025 Commitments to extend credit $ 827,496 $ 970,255 Commercial letters of credit 23,425 23,959 Commitments to extend credit and commercial letters of credit both include exposure to some credit loss in the event of non-performance of the customer. The Company’s credit policies and procedures for credit commitments and financial guarantees are the same as those for extensions of credit that are recorded on the Consolidated Balance Sheets. Many of these instruments have fixed maturity dates, and many of them will expire without being drawn upon; accordingly, they do not generally present any significant liquidity risk to the Company. Allowance for credit losses - off-balance-sheet credit exposures The Company recorded a recapture of credit losses on unfunded commitments of $ 201.0 thousand and recapture of credit losses of $ 398.8 thousand on unfunded commitments for the three months ended March 31, 2026 and March 31, 2025, respectively. The ACL on off-balance-sheet credit totaled $ 3.0 million and $ 3.2 million as of March 31, 2026, and December 31, 2025, and is included in accrued interest and other liabilities on the accompanying Consolidated Balance Sheets. Litigation The Company is a party to litigation, claims, and proceedings arising in the normal course of business that are ordinary and routine to the nature of the Company’s business and operations. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from any currently pending or threatened litigation, claims, or proceedings will not be material to the Company’s financial position as of March 31, 2026, and December 31, 2025, respectively. Note 11— Fair Value Measurements Determination of Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. 29 Table of Contents Note 11— Fair Value Measurements (continued) Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect our own assumptions that market participants would use in pricing an asset or liability. In instances in which multiple levels of inputs are used to measure fair value, hierarchy classification is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Equity Investments Equity investments are recorded at fair value on a recurring basis, with changes in fair value reported in net income. Through the Summit Merger we acquired an investment in an S&P 500 index mutual fund that is traded on an exchange, and we classify it as Level 2 as of March 31, 2026. Through the Summit Merger, we acquired perpetual preferred stock of a bank holding company issued in October 2022 in a private offering. The perpetual preferred stock does not trade on an exchange or in an active over-the-counter market; therefore, we estimate its fair value using the present value of its future cash flows using observed discount rates of similar publicly-traded securities, adjusted for a liquidity premium. We classify the perpetual preferred stock as Level 2. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment. Such equity securities are included in other assets on the accompanying Consolidated Balance Sheets. Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. Loans held-for-sale The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. 30 Table of Contents Note 11— Fair Value Measurements (continued) Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at March 31, 2026, Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 149,463 $ — $ — $ 149,463 Obligations of states and municipalities — 990,269 — 990,269 Residential mortgage backed - agency — 57,375 — 57,375 Residential mortgage backed - non-agency — 372,486 — 372,486 Commercial mortgage backed - agency — 71,684 — 71,684 Commercial mortgage backed - non-agency — 98,377 — 98,377 Asset-backed — 50,300 — 50,300 Other — 36,083 — 36,083 Total investment securities available-for-sale $ 149,463 $ 1,676,574 $ — $ 1,826,037 Loans held-for-sale $ — $ — $ — $ — Equity investments $ — $ 13,919 $ — $ 13,919 Derivatives $ — $ 3,036 $ — $ 3,036 Financial liabilities Derivatives $ — $ 1,452 $ — $ 1,452 Fair Value Measurements at December 31, 2025, Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 150,124 $ — $ — $ 150,124 Obligations of states and municipalities — 922,574 — 922,574 Residential mortgage backed - agency — 55,385 — 55,385 Residential mortgage backed - non-agency — 218,092 — 218,092 Commercial mortgage backed - agency — 73,896 — 73,896 Commercial mortgage backed - non-agency — 111,109 — 111,109 Asset-backed — 53,466 — 53,466 Other — 31,308 — 31,308 Total investment securities available-for-sale $ 150,124 $ 1,465,830 $ — $ 1,615,954 Loans held-for-sale $ — $ 365 $ — $ 365 Equity investments $ — $ 14,201 $ — $ 14,201 Derivatives $ — $ 2,604 $ — $ 2,604 Financial liabilities Derivatives $ — $ 2,671 $ — $ 2,671 31 Table of Contents Note 11— Fair Value Measurements (continued) The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a non-recurring basis in the financial statements: Collateral dependent loans Loans for which the borrower is experiencing financial difficulty and repayment is dependent upon the operation or sale of collateral, are considered collateral-dependent. For collateral-dependent loans, the fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets, including equipment, inventory, and accounts receivable. The vast majority of the collateral underlying collateral-dependent loans is real estate, the fair value of which is measured through an appraisal. The appraisals of the collateral supporting collateral-dependent loans may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for (recapture of) credit losses on the Consolidated Statements of Income. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. The fair value of foreclosed properties is determined on a nonrecurring basis generally utilizing current appraisals performed by an independent, licensed appraiser applying an income or market value approach using observable market data. Updated appraisals of foreclosed properties are generally obtained if the existing appraisal is more than 18 months old or more frequently if there is a known deterioration in value. However, if a current appraisal is not available, the original appraised value is discounted, as appropriate, to compensate for the estimated depreciation in the value of the real estate since the date of its original appraisal. Such discounts are generally estimated based upon management’s knowledge of sales of similar property within the applicable market area and its knowledge of other real estate market-related data as well as general economic trends. Upon foreclosure, any fair value adjustment is charged against the allowance for credit losses on loans. Subsequent fair value adjustments are recorded in the period incurred and included in other noninterest expense in the Consolidated Statements of Income. Assets that were measured at fair value on a non-recurring basis during the period are summarized below (in thousands): Fair Value Measurements at March 31, 2026, Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Collateral dependent loans Commercial real estate $ — $ — $ 15,820 $ 15,820 Owner-occupied commercial real estate — — 328 328 Acquisition, construction & development — — 5,804 5,804 Commercial & industrial — — 194 194 Single family residential — — 633 633 Consumer non-real estate and other — — — — Other real estate owned — — 3,106 3,106 32 Table of Contents Note 11— Fair Value Measurements (continued) Fair Value Measurements at December 31, 2025, Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Collateral dependent loans Commercial real estate $ — $ — $ 10,377 $ 10,377 Owner-occupied commercial real estate — — — — Acquisition, construction & development — — 2,640 2,640 Commercial & industrial — — 213 213 Single family residential — — 223 223 Consumer non-real estate and other — — — — Other real estate owned — — 2,689 2,689 The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at March 31, 2026, and December 31, 2025 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range March 31, 2026 Collateral dependent loans $ 22,779 Appraisal of collateral Management adjustments (e.g., liquidity, selling costs, etc.) 5.0 % to 20.0 % for liquidity, 6.0 % to 8.0 % for selling costs Other real estate owned 3,106 Appraisal of collateral Management adjustments (e.g., liquidity, selling costs, etc.) 5.0 % to 20.0 % for liquidity, 6.0 % to 8.0 % for selling costs December 31, 2025 Collateral dependent loans $ 13,453 Appraisal of collateral Management adjustments (e.g., liquidity, selling costs, etc.) 5.0 % to 20.0 % for liquidity, 6.0 % to 8.0 % for selling costs Other real estate owned 2,689 Appraisal of collateral Management adjustments (e.g., liquidity, selling costs, etc.) 5.0 % to 20.0 % for liquidity, 6.0 % to 8.0 % for selling costs Fair value of financial instruments The carrying amounts and estimated fair values of financial instruments not carried at fair value, at March 31, 2026, and December 31, 2025, were as follows (in thousands): Fair Value Measurements at March 31, 2026, Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 53,940 $ 53,940 $ — $ — $ 53,940 Interest-earning deposits with banks 15,652 15,652 — — 15,652 Loans, net 5,336,712 — — 5,312,163 5,312,163 Accrued interest 37,625 — 37,625 — 37,625 Financial Liabilities Non-interest-bearing deposits $ 1,367,050 $ — $ 1,367,050 $ — $ 1,367,050 Interest-bearing deposits 4,965,215 — 4,959,923 — 4,959,923 Short-term borrowings 525,000 — 523,406 — 523,406 Subordinated debentures, net 71,510 — 68,093 — 68,093 Subordinated debentures owed to unconsolidated subsidiary trusts 17,331 — 16,438 — 16,438 Accrued interest 6,637 — 6,637 — 6,637 33 Table of Contents Note 11— Fair Value Measurements (continued) Fair Value Measurements at December 31, 2025, Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 53,497 $ 53,497 $ — $ — $ 53,497 Interest-bearing deposits with banks 235,630 235,630 — — 235,630 Loans, net 5,319,853 — — 5,284,210 5,284,210 Accrued interest 35,442 — 35,442 — 35,442 Financial Liabilities Non-interest-bearing deposits $ 1,336,380 $ — $ 1,336,380 $ — $ 1,336,380 Interest-bearing deposits 5,067,561 — 5,062,925 — 5,062,925 Short-term borrowings 450,000 — 450,005 — 450,005 Subordinated debentures, net 70,222 — 70,800 — 70,800 Subordinated debentures owed to unconsolidated subsidiary trusts 17,268 — 16,494 — 16,494 Accrued interest 4,447 — 4,447 — 4,447 Note 12— Accumulated Other Comprehensive Income (Loss) The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended March 31, 2026, and March 31, 2025 (in thousands): Three months ended March 31, 2026 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income (Loss) Beginning Balance $ ( 64 ) $ ( 54,857 ) $ ( 4,039 ) $ ( 58,960 ) Net unrealized gains (losses) 1,286 ( 9,882 ) — ( 8,596 ) Less: net realized (gains) losses reclassified to earnings ( 28 ) ( 1,418 ) — ( 1,446 ) Net change in pension plan benefits — — — — Ending Balance $ 1,194 $ ( 66,157 ) $ ( 4,039 ) $ ( 69,002 ) Three months ended March 31, 2025 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income (Loss) Beginning Balance $ 911 $ ( 92,055 ) $ ( 4,576 ) $ ( 95,720 ) Net unrealized gains (losses) 370 7,688 — 8,058 Less: net realized (gains) losses reclassified to earnings ( 330 ) ( 32 ) — ( 362 ) Net change in pension plan benefits — — — — Ending Balance $ 951 $ ( 84,399 ) $ ( 4,576 ) $ ( 88,024 ) 34 Table of Contents Note 12— Accumulated Other Comprehensive Income (Loss) (continued) The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three months ended March 31, 2026, and March 31, 2025 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income Three months ended March 31, 2026 March 31, 2025 Cash flow hedges: Interest rate contracts $ — $ — Interest income Interest rate contracts 36 428 Interest expense Tax effect ( 8 ) ( 98 ) Income tax expense (benefit) Net of tax $ 28 $ 330 Available-for-sale securities: Realized gains (losses) on securities $ 1,799 $ 1 Net gains/(losses) on securities Realized gains (losses) on basis adjustment for fair value hedges 40 40 Interest income Tax effect ( 421 ) ( 9 ) Income tax expense (benefit) Net of tax $ 1,418 $ 32 Defined benefit pension plan: Amortization of actuarial gain / (loss) — — Pension and other employee benefits Tax effect — — Income tax expense (benefit) Net of tax $ — $ — Total reclassifications, net of tax $ 1,446 $ 362 Net income Note 13— Other Operating Expense Other operating expense from the Consolidated Statements of Income for the three months ended March 31, 2026, and March 31, 2025, is as follows (in thousands): Three Months Ended March 31, 2026 2025 Historic tax credit amortization $ 239 $ 435 IT related 396 417 Consultant fees 713 506 Directors' fees 463 443 Audit expense 582 222 Legal expense 1,298 343 Virginia franchise tax 965 960 Marketing expense 443 387 Donation expense 23 11 Other 5,303 5,390 Total $ 10,425 $ 9,114 The Company incurred merger-related expenses of $ 1.4 million and zero for the three months ended March 31, 2026 and March 31, 2025, respectively. These expenses are primarily included in the consultant fees, audit expense, legal expense, and other line items detailed in other operating expenses. 35 Table of Contents Note 14— Share-Based Compensation The Company has a share-based incentive plan described below that allows it to offer a variety of equity compensation awards subject to approval. Total compensation cost that has been charged against income for restricted stock unit awards granted was $ 1.1 million and $ 1.3 million for the three months ended March 31, 2026, and March 31, 2025, respectively. The total income tax benefit was $ 248.5 thousand and $ 264.7 thousand for the three months ended March 31, 2026, and March 31, 2025, respectively. 2019 Stock Incentive Plan In 2019, the Company’s Stock Incentive Plan (“2019 SIP”) was approved by the Bank’s Board of Directors (the “Bank Board”). The 2019 SIP provides for the issuance of share-based awards to directors and employees of the Company. The 2019 SIP authorized 240,000 units to be issued, and the Company’s practice is using authorized unissued shares to satisfy these share-based awards. Each unit represents a contingent right to receive one common share or an equivalent amount of cash, or a combination of the two, at the discretion of the Company. Currently, we have a sufficient number of authorized unissued shares to satisfy all outstanding equity awards. Under the 2019 SIP, the Company has issued restricted stock unit (“RSU”) awards that are both time-based and performance-based. Each RSU award will indicate the number of shares, the conditions (e.g., service, performance, and/or a combination), and the grant date. Compensation expense is recognized over the vesting period of the awards based on the fair value of the award at grant date. 2023 Stock Incentive Plan In 2023, a new stock incentive plan (“2023 SIP”) was approved by the Company’s Board of Directors (the “Board”) and shareholders. Since the plan’s shareholder approval date of March 30, 2023, no further share-based awards have been issued under the 2019 SIP. The 2023 SIP provides for the issuance of share-based awards to directors and employees of the Company. The 2023 SIP authorized the issuance of 250,000 shares, subject to an annual increase in available shares and shares recycled from the 2019 SIP that were cancelled. Based on our shares outstanding as of March 31, 2026, and awards that were recycled from the 2019 SIP, the total shares authorized for issuance under the plan as of March 31, 2026 was 474,578 . A total of 58,605 and 77,441 shares were issued during the three months ended March 31, 2026, and March 31, 2025, respectively. For time-based RSUs, the fair value was determined by using the closing stock price on the date prior to the grant date. These RSUs vest over three to five years . The Board, from time to time, approves performance-based RSU awards that may be earned between a three to five year performance period. Whether or not units are earned at the end of the performance period will be determined based on the achievement of performance and/or market targets (e.g., market capitalization target) over the performance period. If the conditions are achieved, the grant recipient will receive 100 % of the units granted as these awards do not provide for a multiplier effect. The performance/market targets are determined by the Board. The fair value for performance-based RSU awards was determined by using a Monte Carlo simulation analysis to estimate the achievement of the market capitalization target determined by the Board. The Monte Carlo simulation analysis required the following inputs: (1) expected term, (2) expected volatility, (3) risk-free rate, and (4) dividend yield. The expected term was based on the stated performance period. Management used the expected volatility from a peer group. The risk-free interest rate is based on the U.S. Treasury yield curve over the performance period. The dividend yield assumption was based on historical and anticipated dividend payouts. 36 Table of Contents Note 14— Share-Based Compensation (continued) The following is a summary of all the Company’s RSU awards issued under both the 2019 SIP and 2023 SIP: Non-vested Shares Shares Weighted-Average Grant-Date Fair Value Non-vested at December 31, 2025 180,849 $ 59.43 Granted 58,605 68.41 Vested ( 9,232 ) 73.00 Forfeited ( 4,000 ) 63.34 Non-vested at March 31, 2026 226,222 $ 61.13 As of March 31, 2026, there was $ 8.7 million of total unrecognized compensation costs related to non-vested shares granted under both the 2019 SIP and 2023 SIP. The cost is expected to be recognized over a weighted average period of 1.26 years. 2023 Employee Stock Purchase Plan In 2023, an employee stock purchase plan (“2023 ESPP”) was approved by the Board and shareholders. Upon the 2023 ESPP’s shareholder approval date of March 30, 2023, the 2023 ESPP reserved 250,000 shares of common stock for issuance to employees, subject to an annual increase in reserved shares. At March 31, 2026, total shares authorized for issuance were 473,978 and 442,165 shares were available to be issued. Whole shares are sold to participants in the 2023 ESPP at 85 % of the lower of the stock price at the beginning or end of each semi-annual offering period. The first semi-annual offering period began on September 1, 2023, and the current semi-annual offering period began on March 1, 2026. Eligible employees may purchase shares in an amount that does not exceed the lesser of the IRS limit of $25,000 or 15 % of their annual salary. The following table presents information for the 2023 ESPP for the three months ended March 31, 2026: March 31, 2026 Shares purchased 6,917 Weighted average price of shares purchased $ 54.03 Compensation expense recognized (in 000's) $ 51.8 Stock Appreciation Rights (“SARs”) Upon completion of the Summit Merger and as a part of the Summit Merger Agreement, Burke & Herbert assumed SAR awards that had been issued to existing employees that would continue with the same terms and conditions adjusted for the exchange ratio of 0.5043 . As part of the Summit Merger, a significant portion of SAR awards accelerated their vesting and thus did not require any future service component. Management used the Black-Scholes option-pricing model to fair value these accelerated SAR awards and included this value as part of the purchase price consideration. The Company also used the Black-Scholes option-pricing model to fair value the non-accelerated SAR awards that were not fully vested. The SAR awards that have been assumed by the Company, were issued in 2019, 2021, and 2023, and these SAR awards become exercisable ratably over seven years ( 14.3 % per year) and contractually expire ten years after the grant date. Upon completion of the Summit Merger, the Company determined the fair value per SAR using the following assumptions: 2019 SAR 2021 SAR 2023 SAR # of years to full vesting 7 years 7 years 7 years Fair value $ 14.89 $ 16.92 $ 14.56 Risk-free interest rate 4.51 % 4.32 % 4.14 % Expected dividend yield 3.95 % 3.95 % 3.95 % Expected common stock volatility 32.56 % 32.56 % 32.56 % Expected contractual life (in years) 4.77 7.20 8.77 37 Table of Contents Note 14— Share-Based Compensation (continued) A summary of SAR and option activity during the three months ended March 31, 2026, is as follows: Weighted Average Dollars in thousands, except per share information SARs Aggregate Intrinsic Value Remaining Contractual Term (Yrs.) Exercise Price Outstanding, December 31, 2025 184,719 $ 1,980 4.84 $ 48.48 Granted (or acquired) — — — — Exercised ( 20,451 ) ( 353 ) — 45.03 Forfeited — — — — Expired — — — — Outstanding, March 31, 2026 164,268 $ 1,627 4.56 $ 48.91 Exercisable SARs: At March 31, 2026 140,976 $ 1,888 4.28 $ 48.90 The total fair value of SARs exercised was $ 328.6 thousand during the three months ended March 31, 2026. The total fair value of SARs vested was $ 73.2 thousand during the three months ended March 31, 2026. As of March 31, 2026, there was $ 225.6 thousand of total unrecognized compensation costs related to non-vested SARs acquired through the Summit Merger. The cost is expected to be recognized over a weighted average period of 1.96 years. Note 15— Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income applicable to common shares by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential impact of contingently issuable shares. The Company uses the treasury stock method as described by ASC 260 - Earnings Per Share for each dilutive instrument when computing diluted earnings per share. The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential common stock. Dilutive potential common stock has no effect on income available to common shareholders. Three Months Ended March 31, 2026 2025 Net income (loss) applicable to common shares (in thousands) $ 27,124 $ 26,976 Weighted average number of shares 15,037,330 14,976,483 Options effect of dilutive shares 94,151 49,893 Weighted average dilutive shares 15,131,481 15,026,376 Basic earnings (loss) per common share $ 1.80 $ 1.80 Diluted earnings (loss) per common share 1.79 1.80 Stock awards equivalent to 9,816 and 41,553 shares of common stock were not considered in computing diluted earnings per common share for the three months ended March 31, 2026, and March 31, 2025, respectively, because they are antidilutive. 38 Table of Contents Note 16— Goodwill and Other Intangible Assets The following table presents the change in goodwill for the three months ended March 31, 2026, and March 31, 2025, (in thousands): Three Months Ended March 31, 2026 2025 Beginning of period $ 34,149 $ 32,783 Acquired goodwill 2,104 — Goodwill adjustment — 59 Impairment — — End of period $ 36,253 $ 32,842 During the year ended December 31, 2024, the Company recorded $ 32.8 million of goodwill associated with the Summit Merger. During the three months ended March 31, 2026, the Company recorded $ 2.1 million of additional goodwill associated with the acquisition of Burke & Herbert Wealth Services, LLC, formerly known as Piedmont Wealth Management. The Company performs the annual goodwill impairment test on September 30 every year. Other intangible assets consist of the core deposit intangible which is being amortized on an accelerated basis over its estimated useful life of 7 years. At the date of the Summit Merger, the Company recorded $ 68.8 million of core deposit intangibles associated with the Summit Merger. The gross carrying amounts and accumulated amortization of other intangible assets for the three months ended March 31, 2026, and March 31, 2025, were as follows (in thousands): Three Months Ended March 31, 2026 2025 Beginning of period $ 41,747 $ 57,300 Core deposit intangible acquired — — Amortization ( 3,684 ) ( 4,298 ) Impairment — — Total core deposit intangible $ 38,063 $ 53,002 The Company reviews other intangible assets for possible impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. Total amortization expense associated with intangible assets was $ 3.7 million and $ 4.3 million for the three months ended March 31, 2026, and March 31, 2025, respectively. Estimated amortization expense for future years is as follows (in thousands): Estimated Amortization Remaining nine months ending, December 31, 2026 $ 9,413 2027 10,641 2028 8,186 2029 5,730 2030 3,274 Thereafter 819 Total $ 38,063 39 Table of Contents Note 17— Segment Information Segment performance is evaluated using consolidated net income. The Company operates in one segment – Community Banking and the financial performance of this one segment is used to make resource allocations and performance decisions. The Company’s Chief Executive Officer is in charge of allocating the Company’s resources and assessing performance, and has been identified as the chief operating decision maker. While the chief operating decision-maker monitors the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Individual operating results are not reviewed by senior management to make resource allocation or performance decisions. Therefore, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. 40 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our consolidated financial condition and results of operations of the Company should be read in conjunction with the preceding consolidated financial statements and notes presented in Item 1. Financial Statements of this Form 10-Q, as well as with the audited consolidated financial statements and notes for the year ended December 31, 2025, included in our Form 10-K filed with the SEC on February 27, 2026 (the “Form 10-K”). Historical results of operations and the percentage relationships among any amounts included and any trends that may appear may not indicate trends in operations or results of operations for any future periods. We are a financial holding company, and we conduct all of our material business operations through the Bank. As a result, the discussion and analysis below primarily relate to activities conducted at the Bank. Disclosure Regarding Forward-Looking Statements This Form 10-Q contains statements that we believe are, or may be considered to be, “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the beliefs, goals, intentions, and expectations of the Company regarding revenues, earnings, earnings per share, loan production, asset quality, and capital levels, among other matters; our estimates of future costs and benefits of the actions we may take; our assessments of expected losses on loans; our assessments of interest rate and other market risks; our ability to achieve our financial and other strategic goals; and other statements that are not historical facts. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on current beliefs, expectations, or assumptions regarding the future of the business, future plans and strategies, operational results, and other future conditions of the Company. All statements other than statements of historical fact included in this Form 10-Q regarding the prospects of our industry or our prospects, plans, financial position, or business strategy may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking words such as “plans,” “expects” or “does not expect,” “is expected,” “look forward to,” “budget,” “scheduled,” “estimates,” “forecasts,” “will continue,” “intends,” “the intent of,” “have the potential,” “anticipates,” “does not anticipate,” “believes,” “should,” “should not,” or variations of such words and phrases that indicate that certain actions, events, or results “may,” “could,” “would,” “might,” or “will,” “be taken,” “occur,” or “be achieved,” or the negative of these terms or variations of them or similar terms. Additionally, forward–looking statements speak only as of the date they are made; the Company does not assume any duty, does not undertake, and specifically disclaims any obligation to update such forward–looking statements, whether written or oral, that may be made from time to time, whether because of new information, future events, or otherwise, except as required by law. Furthermore, because forward–looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those indicated in or implied by such forward-looking statements because of a variety of factors, many of which are beyond the control of the Company. Further, factors identified herein are not necessarily all of the factors that could cause the Company’s actual results, performance or achievements to differ materially from those expressed in or implied by any of the forward-looking statements. Other factors, including unknown or unpredictable factors, also could harm the Company. Accordingly, you should consider all of these risks, uncertainties and other factors carefully in evaluating all such forward-looking statements made by the Company and not place undue reliance on forward-looking statements. The risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to, the following: the possibility that the anticipated benefits of the LNKB Merger will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where the Company does business; the possibility that we may be unable to achieve expected synergies and operating efficiencies of the LNKB Merger within the expected timeframes or at all and to successfully integrate LNKB’s operations and those of the Company; such integration may be more difficult, time-consuming or costly than expected; revenues following the LNKB Merger may be lower than expected; the Company’s success in executing its business plans and strategies and managing the risks involved in the foregoing; the dilution caused by the Company’s issuance of additional shares of its capital stock in connection with the LNKB Merger; costs or difficulties associated with newly developed or acquired operations; changes in general economic, political, or market trends (either nationally or locally in the areas in which we conduct, or will conduct, business), including inflation, changes in interest rates, market volatility and monetary fluctuations, and changes in federal government policies and practices, including the impact of the federal government shutdown that began in October 2025 and with respect to spending on industries concentrated in our market area, as well as the impact from recently announced and future tariffs on the markets we serve; increased competition; changes in consumer confidence and demand for financial services, including changes in consumer borrowing, repayment, investment, 41 Table of Contents and deposit practices; changes in asset quality and credit risk; our ability to control costs and expenses; adverse developments in borrower industries or declines in real estate values; changes in and compliance with federal and state laws and regulations that pertain to our business and capital levels; our ability to raise capital as needed; the impact, extent and timing of technological changes; the effects of any cybersecurity breaches or events; the development and use of artificial intelligence (“AI”) in business processes, services, and products, including emerging external focus among regulators and other officials related to risks in connection with the development and use of AI; the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts and tensions, or public health events (such as pandemics), and of governmental and societal responses thereto; and the other factors discussed in the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” section of the Company's Annual Report on Form 10–K for the year ended December 31, 2025 and in Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Part II, Item 1A. Risk Factors in this Form 10-Q. Overview Burke & Herbert was organized as a Virginia corporation in 2022 to serve as the holding company for the Bank. Burke & Herbert became a bank holding company when it commenced operations on October 1, 2022, following a reorganization transaction in which it acquired control of the Bank under the BHCA. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of Burke & Herbert. Burke & Herbert has no material operations other than owning the Bank. In September 2023, Burke & Herbert elected to become a financial holding company under the BHCA. As a financial holding company of a Virginia state bank, Burke & Herbert is subject to regulation, supervision, and examination by the Federal Reserve and the Virginia BFI. The Bank is a Virginia chartered commercial bank that commenced operations in 1852. The Bank became a member of the Federal Reserve System on December 31, 2024. The Bank is subject to regulation, supervision, and examination by the Federal Reserve (through the Federal Reserve Bank of Richmond) and the Virginia BFI. The Bank’s primary market area includes northern Virginia and West Virginia, and as of March 31, 2026, it has over 77 branches and commercial loan offices across Delaware, Kentucky, Maryland, Virginia, and West Virginia. The Company’s branch locations accept business and consumer deposits from a diverse customer base. The Company’s deposit products include checking, savings, and term certificate accounts. The Company’s loan portfolio includes commercial and consumer loans, a substantial portion of which are secured by real estate. The Bank derives a significant portion of its income from interest received on loans and investments. The Bank’s primary source of funding is deposits, both interest-bearing and non-interest-bearing. In order to maximize the Bank’s net interest income, or the difference between the income on interest-earning assets and the expense of interest-bearing liabilities, the Bank must not only manage the volume of these balance sheet items, but also the yields earned on interest-earning assets and the rates paid on interest-bearing liabilities. To account for credit risk inherent in all loans, the Bank maintains an ACL to absorb expected credit losses on existing loans that may become uncollectible. The Bank establishes and maintains this ACL by charging a provision for credit losses against operating earnings. In order to maintain its operations and branch locations, the Bank incurs various operating expenses which are further described within the “Results of Operations” later in this section. As of March 31, 2026, we had total consolidated assets of $7.9 billion, gross loans of $5.4 billion, total deposits of $6.3 billion, and total shareholders’ equity of $864.5 million. As of March 31, 2026, we had 830 full-time employees. None of our employees are covered by a collective bargaining agreement. Merger With LINKBANCORP, Inc. Effective on May 1, 2026, Burke & Herbert Financial Services Corp., a Virginia corporation, completed its previously announced merger with LINKBANCORP, Inc., a Pennsylvania corporation, pursuant to the LNKB Merger Agreement between Burke & Herbert and LNKB. See Note 1 - Nature of Business Activities and Significant Accounting Policies , in Notes to Consolidated Financial Statements for additional information regarding the LNKB merger. Critical Accounting Policies and Estimates Our accounting and reporting policies conform to accounting principles generally accepted in the United States of America and conform to general practices within the industry in which we operate. To prepare financial statements in conformity with GAAP, management makes estimates, assumptions, and judgments based on available information. These estimates, 42 Table of Contents assumptions, and judgments affect the amounts reported in the financial statements and accompanying notes and are based on information available as of the date of the financial statements and, as this information changes, actual results could differ from the estimates, assumptions, and judgments reflected in the financial statements. In particular, management has identified several accounting policies that, due to the estimates, assumptions, and judgments inherent in those policies, are critical in understanding our financial statements. Our most significant accounting policies are presented in the notes to the accompanying consolidated financial statements. These policies, along with the other disclosures presented in the financial statement notes and in this financial review, provide information on how significant assets and liabilities are valued in the financial statements and how those values are determined. Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions, and estimates underlying those amounts, we have identified business combination and goodwill, the determination of the allowance for credit losses, and income taxes to be the accounting areas that require the most subjective or complex judgments, and as such, could be most subject to revision as new information becomes available. Business Combination and Goodwill For acquisitions, we are required to record the assets acquired, including identified intangible assets such as core deposit intangibles, and the liabilities assumed at their respective fair values. The difference between consideration and the net fair value of assets acquired is recorded as goodwill. Management uses significant estimates and assumptions to value such items, including projected cash flows, repayment rates, default rates and losses assuming default, discount rates, and realizable collateral values. The allowance for credit losses for purchased credit deteriorated (“PCD”) and purchased seasoned loans (“PSL”) loans is recognized within acquisition accounting. The allowance for credit losses for non-PCD and non-PSL assets is recognized as provision for credit losses in the same reporting period as the acquisition. Fair value adjustments are amortized or accreted into the income statement over the estimated life of the acquired assets or assumed liabilities. The purchase date valuations and any subsequent adjustments determine the amount of goodwill recognized in connection with the acquisition. The use of different assumptions could produce significantly different valuation results, which could have material positive or negative effects on our results of operations. The carrying value of goodwill recorded must be reviewed for impairment on an annual basis, as well as on an interim basis if events or changes indicate that the asset might be impaired. An impairment loss must be recognized for any excess of carrying value over fair value of the goodwill. The determination of fair values is based on valuations using management’s assumptions of future growth rates, future attrition, discount rates, multiples of earnings or other relevant factors. In addition, we engage third party specialists to assist in the development of fair values. Preliminary estimates of fair values may be adjusted for a period of time subsequent to the acquisition date if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Adjustments recorded during this period are recognized in the current reporting period. Management uses various valuation methodologies to estimate the fair value of these assets and liabilities, and often involves a significant degree of judgment, particularly when liquid markets do not exist for the particular item being valued. Examples of such items include loans, deposits, identifiable intangible assets, and certain other assets and liabilities. Changes in these factors, as well as downturns in economic or business conditions, could have a significant adverse impact on the carrying value of assets, including goodwill and liabilities, which could result in impairment losses affecting our financial statements as a whole and our banking subsidiary in which the goodwill resides. Allowance for Credit Losses The allowance for credit losses represents our estimate of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and projections including reasonable and supportable, reversion, and post-reversion forecasts. It is a valuation account that is deducted from the financial assets’ amortized cost basis to present the net amount expected to be collected on the financial asset. Financial assets are charged-off against the allowance when management believes the uncollectibility of a financial asset is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The Company’s loan portfolio is the largest financial asset that is in scope of this critical accounting estimate. Determining the amount of the allowance for credit losses is considered a critical accounting estimate, because it is based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts, and prepayment experience as related to credit contractual terms. Management estimates the 43 Table of Contents allowance balance using relevant available information from internal and external sources. Historical credit loss experience provides the basis for the estimation of expected credit losses; adjustments to historical loss information are made for differences in current loan-specific risk characteristics, such as differences in underwriting standards, portfolio mix, and delinquency levels, as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. The model methodology used for funded credits, along with taking into consideration the probability of drawdowns or funding on unfunded commitments and whether such commitments are irrevocable or not by the Company, is how the Company determines the allowance for credit losses for unfunded commitments. These evaluations are conducted at least quarterly and more frequently, if deemed necessary. The Company is using an internally developed model that produces an estimate of the allowance for credit losses as the lifetime expected credit losses of the loan portfolio. This model uses a remaining useful life or weighted average remaining maturity (“WARM”) method within defined-contractual terms by federal call codes. The model forecasts net charge-off rates by call codes using ordinary least squares (“OLS”) regression models that use macroeconomic variables to forecast the Company’s and peer banks’ net charge-off rates. These models are used to produce reasonable and supportable forecasts of net charge-off rates. The macroeconomic variables utilized by the Company include variables that meet defined criteria in forecasting credit losses for our loan portfolio. These variables include, but are not limited to, unemployment rates, housing and commercial real estate prices, gross domestic product levels, equity market conditions or interest rates, as well as other variables that are portfolio-specific, such as those pertaining to commercial real estate or to residential loan portfolios. The Company sources the macroeconomic variables and the macroeconomic variable forecasts that it uses in its ACL model from the Standard & Poor’s Global Market Intelligence and from CoStar Group. The Company currently has set an initial reasonable and supportable forecast period of two years with subsequent immediate reversion to the historical average loss rates in remaining periods of the modeled contractual terms. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond information used to calculate reasonable and supportable forecast and the subsequent reversion to historical loss information on collectively evaluated loans. As the reasonable and supportable forecast and reversion period forecast reflects the use of the macroeconomic variable loss drivers, management may consider that an additional or reduced reserve is warranted through qualitative risk factors based on current and expected conditions, including those that utilize supplemental information relative to the macroeconomic variable loss drivers. Qualitative adjustments considered by management include the following: (i) management’s assessment of macroeconomic forecasts used in the model and how those forecasts align with management’s overall evaluation of current expected credit conditions; (ii) organization specific risks such as credit concentrations, collateral specific risks, nature and size of the portfolio, and external factors that may ultimately impact credit quality; and (iii) underwriting and delinquency trends. The qualitative factors applied at March 31, 2026, and the importance and levels of the qualitative factors applied, may change in future periods depending on the level of changes to items such as the uncertainty of economic conditions and management’s assessment of the level of credit risk within the loan portfolio as a result of such changes, compared to the amount of ACL calculated by the model. Management reviews supplemental data sources including historical net charge-off rates and data measuring other specific credit outcomes from its systems of record in supporting qualitative factors. However, qualitative factor evaluations are inherently imprecise and require significant management judgment. Income Taxes The Company’s income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated taxes due. The calculation of each component of the Company’s income tax provision is complex and requires the use of estimates and judgments in its determination. As part of the Company’s evaluation and implementation of business strategies, consideration is given to the regulations and tax laws that apply to the specific facts and circumstances for any tax position under evaluation. Management closely monitors tax developments on both the federal and state level in order to evaluate the effect they may have on the Company’s overall tax position and the estimates and judgments used in determining the income tax provision and records adjustments, as necessary. Deferred income taxes arise from temporary differences between the tax and financial statement recognition of revenue and expenses. In evaluating the Company’s ability to recover its deferred tax assets within the jurisdiction from which they arise, the Company must consider all available evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and the results of recent operations. A valuation allowance is recognized for a deferred tax asset if, based on the available evidence, it is more likely than not that some portion or all of a deferred tax asset will not be realized. See Note 8 — Income Taxes, in Notes to the December 31, 2025, Consolidated Financial Statements of the Company for additional information. 44 Table of Contents Non-GAAP Financial Measures We prepare our financial statements in accordance with U.S. GAAP and also present certain non-GAAP financial measures that exclude certain items or otherwise include components that differ from the most directly comparable measures calculated in accordance with U.S. GAAP. Non-GAAP measures are provided as additional useful information to assess our financial condition and results of operations (including period-to-period operating performance). These non-GAAP measures are not intended as a substitute for GAAP financial measures and may not be defined or calculated the same way as non-GAAP measures with similar names used by other companies. For more information, including the reconciliation of these non-GAAP financial measures to their corresponding GAAP financial measures, see the respective sections where the measures are presented. Commercial Real Estate Sector Concentration In recent years, commercial real estate (“CRE”) markets have been impacted by economic disruptions, including those resulting from the effects of increases in remote work in urban centers and changes in the characteristics of certain urban centers. CRE loans are generally viewed as having a greater risk of default than other types of loans and depend on cash flows from the owner’s business or the property’s tenants to service the debt. The borrower’s cash flows may be affected significantly by general economic conditions. Adverse conditions in the real estate market or the general business climate and economy or in occupancy rates where the property is located could increase the likelihood of default. In particular, CRE office borrowers in central business districts have been impacted by decreased property valuations, oversupply due to remote work trends, and rising interest rates which has increased default rates and impeded their ability to secure new financing. CRE loans generally have large loan balances, and therefore, the deterioration of one or a few of these loans could cause a significant increase in the percentage of our non-performing loans. An increase in non-performing loans could result in a loss of earnings from these loans, an increase in the provision for loan losses, and an increase in charge-offs, all of which could have a material adverse effect on our financial condition and results of operations. The Bank continues to monitor its commercial real estate portfolio by reviewing various credit risk and concentration reports. The Bank’s exposure to CRE at March 31, 2026, was $2.8 billion, or 51.9%, of its gross loan portfolio, not including owner-occupied commercial real estate and acquisition, construction & development. Commercial real estate as a percent of total assets at March 31, 2026, was 35.4%, not including owner-occupied commercial real estate and acquisition, construction & development. Including owner-occupied commercial real estate and acquisition, construction & development, total exposure was at $3.7 billion, or 69.1%, of our total gross loans and 47.2% of total assets at March 31, 2026. Loan balances by portfolio segment amortized cost (in thousands) and by percentage of our total gross loan portfolio at March 31, 2026, were as follows: March 31, 2026 Amortized Cost Percentage Commercial real estate $ 2,806,846 51.9 % Owner-occupied commercial real estate 579,365 10.7 Acquisition, construction & development 352,686 6.5 Commercial & industrial 504,229 9.4 Single family residential (1-4 units) 1,128,740 20.9 Consumer non-real estate and other 32,801 0.6 Total gross loans $ 5,404,667 100.0 % Monitoring of the CRE concentration is performed at both the loan level and at the portfolio level. The Credit Risk Management team provides management and the Board with periodic reports on the credit portfolio, which include the CRE portfolio (including owner-occupied CRE and acquisition, construction & development loans). These reports provide 45 Table of Contents an assessment of asset quality and risk rating migration and monitor concentrations against the board approved concentration limits (including sub-limits). The tables below present the Company’s commercial real estate, owner-occupied commercial real estate, and acquisition, construction & development portfolios by collateral type and geographic location as of March 31, 2026 (in thousands). Commercial Real Estate by Collateral Type and Geographic Location VA WV MD DC Other Total Percentage Retail Real Estate $ 308,099 $ 62,863 $ 97,696 $ 38,831 $ 93,640 $ 601,129 21.4 % Multi-Family 228,517 100,220 29,206 77,503 29,270 464,716 16.6 Office Buildings/Condos 234,939 33,561 131,080 66,599 56,805 522,984 18.6 Hotels/Motels 99,065 46,460 105,145 36,933 84,319 371,922 13.3 Industrial/Warehouse 241,484 12,129 34,700 — — 288,313 10.2 Self-Storage 53,926 21,994 1,401 — 41,995 119,316 4.3 Nursing-Assisted Living 41,692 26,250 6,238 — 37,080 111,260 4.0 Restaurants 14,958 2,253 10,081 5,140 3,900 36,332 1.3 Gas Stations 7,737 1,481 1,927 14,292 2,286 27,723 1.0 Other 171,739 7,631 15,610 46,685 21,486 263,151 9.3 Total $ 1,402,156 $ 314,842 $ 433,084 $ 285,983 $ 370,781 $ 2,806,846 100.0 % Owner-Occupied Commercial Real Estate by Collateral Type and Geographic Location VA WV MD DC Other Total Percentage Office Buildings/Condos $ 58,193 $ 29,396 $ 14,964 $ 719 $ 8,118 $ 111,390 19.2 % Retail 43,941 34,492 12,032 — 14,979 105,444 18.3 Industrial/Warehouse 41,100 12,577 1,232 — 11,047 65,956 11.4 Gas Stations 27,046 9,547 4,401 — 18,343 59,337 10.2 Restaurants 7,216 7,612 3,933 — 10,135 28,896 5.0 Churches/Religious Organizations 16,377 7,399 906 224 2,582 27,488 4.7 Coal, oil, gas, and natural resource extraction 538 5,947 — — — 6,485 1.1 Private School 14,165 — — — — 14,165 2.4 Other 94,129 19,446 29,750 314 16,565 160,204 27.7 Total $ 302,705 $ 126,416 $ 67,218 $ 1,257 $ 81,769 $ 579,365 100.0 % Acquisition, Construction & Development by Collateral Type and Geographic Location VA WV MD DC Other Total Percentage Multi-Family $ 22,897 $ — $ 43,088 $ 28,945 $ 36,182 $ 131,112 37.2 % Land 101,817 20,677 12,990 — 5,776 141,260 40.1 Office Buildings/Condos 4,470 — 1,124 — 6,881 12,475 3.5 Self-Storage 5,423 — 23,673 — — 29,096 8.2 Retail Real Estate 1,492 — — — 944 2,436 0.7 Residential For-Sale 597 1,022 — — — 1,619 0.5 Other 12,311 15,705 4,189 — 2,483 34,688 9.8 Total $ 149,007 $ 37,404 $ 85,064 $ 28,945 $ 52,266 $ 352,686 100.0 % CRE loans are monitored through various processes that include payment monitoring, financial reporting, and covenant compliance monitoring, and annual reviews for larger relationships. Furthermore, construction loans are monitored throughout the life of the project and the construction loan administration function is centralized within the Credit Risk Management team. Monitoring the market conditions is also an important component of prudent CRE risk management. Quarterly construction progress reviews are also completed on all acquisition, construction & development loans. For each 46 Table of Contents loan, management reviews the adequacy of the construction budget, adequacy of the interest reserve, pace of construction, and review of any loan covenants. The Bank believes its underwriting and monitoring standards for commercial real estate loans are sufficient to evaluate its loan portfolio and keep it from incurring significant losses. The largest concentration of the Bank’s commercial real estate loans are in Virginia (approximately 49.6%), and the Bank does not have significant exposure to any economic areas of the country that are underperforming the national economy. Additionally, the Bank’s overall exposure to the “Office Building / Condo” collateral type is 17.3% of total commercial real estate loans, including owner-occupied commercial real estate and acquisition, construction & development. The Bank believes that the combined loan portfolio is well-diversified, generally seasoned, manageable, and will outperform the industry in terms of performance through the economic cycle; however, our underwriting, review, and monitoring cannot eliminate all of the risks related to these loans. For further discussion see Part II, Item 1A. “Risk Factors” . Liquidity Management Liquidity is the ability of the Company to convert assets into cash or cash equivalents without significant loss and to raise additional funds by increasing liabilities. Liquidity management involves maintaining the Company’s ability to meet the day-to-day cash flow requirements of its customers, whether they are depositors wishing to withdraw funds or borrowers requiring funds to meet their credit needs. Without proper liquidity management, the Company would not be able to perform the primary function of a financial intermediary and would, therefore, not be able to meet the needs of the communities it serves. The Company assesses the need for liquidity in a variety of scenarios. Those scenarios may include projected growth, credit deterioration, deposit decay, interest rate changes, and a variety of other economic scenarios that can impact the liquidity position of the Company. These analyses are performed on a quarterly basis in conjunction with the Company’s Asset/Liability meetings, and findings are reported to the Asset and Liability Management Committee (the “ALCO”) and to the Board. From time to time, management may change the frequency of such testing or update certain inputs as a result of abnormal market conditions. Findings, as a result of the Company’s prudent liquidity modeling, may result in the change of certain products offered to customers or adjust the way the Company manages its balance sheet. Such changes could include adjusting interest rates offered on certain deposit products, changes to interest rates charged in lending activities, or the suspension of certain products and activities altogether. Times of significant economic stress may cause the mix of funding to shift and increase the likelihood of changes to certain products in order to manage the Company’s overall liquidity and capital position. The asset portion of the balance sheet provides liquidity primarily through unencumbered securities available-for-sale, loan principal and interest payments, maturities and prepayments of investment securities, and, to a lesser extent, sales of investment securities available-for-sale. Other short-term investments available to the Company that could act as potential sources of liquidity are federal funds sold, securities purchased under agreements to resell, and maturing interest-bearing deposits with other banks. The liability portion of the balance sheet provides liquidity through interest-bearing and non-interest-bearing deposit accounts and through FHLB and other borrowings. Brokered deposits, federal funds purchased, securities sold under agreements to repurchase, and other short-term borrowings are additional sources of liquidity and basically represent the Company’s incremental borrowing capacity. These sources of liquidity are used as necessary to fund asset growth and meet short-term liquidity needs. In addition to the Company’s financial performance and condition, liquidity may be impacted by the Company’s structure as a financial holding company that is a separate legal entity from the Bank. The Company requires cash for various operating needs that could include payment of dividends to its shareholders, the servicing of debt, and the payment of general corporate expenses. The primary source of liquidity for the Company is dividends paid by the Bank. Applicable federal and state statutes and regulations impose restrictions on the amount of dividends that may be paid by the Bank. In addition to the formal statutes and regulations, regulatory authorities also consider the adequacy of the Bank’s total capital in relation to its assets, deposits, and other such items. Any future dividends must be set forth in the Company’s capital plans before any dividends can be paid. Management believes that the current sources of liquidity are adequate to meet the Company’s requirements and plans for continued growth. See Note 6 - Borrowed Funds and Note 10 - Commitments and Contingencies , in Notes to Consolidated 47 Table of Contents Financial Statements for additional information regarding outstanding balances of sources of liquidity and contractual commitments and obligations. Capital The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Applicable capital rules under the Basel III Framework require the Company and the Bank to maintain minimum Common Equity Tier 1 (“CET 1”), Tier 1, and Total Capital ratios, along with a capital conservation buffer, effectively resulting in new minimum capital ratios. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of CET 1 capital to risk-weighted assets above the minimum but below the conservation buffer (or below the combined capital conservation buffer and counter-cyclical capital buffer, when the latter is applied) will face constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall. The Basel III Framework also provide for a “counter-cyclical capital buffer” that is applicable to only certain covered institutions and does not have any current applicability to the Company or the Bank. Under capital adequacy guidelines and the regulatory framework for “prompt corrective action,” the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Additionally, federal banking laws require regulatory authorities to take “prompt corrective action” with respect to depository institutions that do not satisfy minimum capital requirements. The extent of these powers depends upon whether the institution in question is “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” or “critically undercapitalized,” as such terms are defined under federal banking agency regulations. Depository institutions that do not meet minimum capital requirements will face constraints on payment of dividends, equity repurchases, and compensation based on the amount of shortfall. A depository institution that is not “well capitalized” is generally prohibited from accepting brokered deposits and offering interest rates on deposits higher than the prevailing rate in its market, may be subject to asset growth limitations, and may be required to submit capital restoration plans. As of March 31, 2026, and December 31, 2025, the Bank complied with all regulatory capital standards and qualifies as “well capitalized.” Note 8 - Regulatory Capital Matters in Notes to Consolidated Financial Statements contains additional discussion and analysis regarding the Company and the Bank’s regulatory capital requirements. Effects of Inflation The majority of assets and liabilities of a financial institution are monetary in nature; therefore, a financial institution differs greatly from most commercial and industrial companies, which have significant investments in fixed assets or inventories that are greatly impacted by inflation. However, inflation does have an important impact on the growth of total assets in the banking industry and the resulting need to increase equity capital at higher-than-normal rates in order to maintain an appropriate equity-to-assets ratio. Inflation also affects other expenses that tend to rise during periods of general inflation. Management believes the most significant potential impact of inflation on financial results is a direct result of the Company’s ability to manage the impact of changes in interest rates. Management attempts to maintain a balanced position between rate-sensitive assets and liabilities over an economic cycle in order to minimize the impact of interest rate fluctuations on net interest income. However, this goal can be difficult to completely achieve in times of rapidly changing interest rates and is one of many factors considered in determining the Company’s interest rate positioning. Key Factors Affecting Financial Performance We face a variety of risks that may impact various aspects of our financial performance from time to time. The extent of such impacts may vary depending on factors such as the current business and economic conditions, political and regulatory environment, and operational challenges. Many of these risks and our risk management strategies are described in more 48 Table of Contents detail elsewhere in this Report as well as with the audited consolidated financial statements and notes for the year ended December 31, 2025, included in our Form 10-K. Our success will depend upon, among other things, the following factors that we manage or control: • Effectively managing capital and liquidity, including: • Continuing to maintain and, over time, grow our deposit base as a low-cost stable funding source, • Prudent liquidity and capital management to meet evolving regulatory capital, capital planning, stress testing, and liquidity standards, and • Actions we take within the capital and other financial markets, • Our ability to manage any material costs related to the execution of our strategic priorities, including increased employees, infrastructure, compliance, and other costs in a profitable manner over the long term, • Management of credit risk and interest rate risk in our portfolio, • Our ability to continue to attract customers and compete with other banks and financial services providers in our markets, • Our ability to manage and implement strategic business objectives within the changing regulatory environment, • The impact of legal and regulatory-related contingencies, • The appropriateness of critical accounting estimates and related contingencies, • Our ability to manage operational risks related to new products and services, changes in processes and procedures, or the implementation of new technology, and • The ability to make investments to promote compliance with existing and evolving regulatory requirements that will increase as the Company grows and will result in increased administrative expenses that we did not previously incur, which costs may materially increase our general and administrative expenses, and • Our success realizing the expected benefits of the LNKB Merger and integrating the operations and customers of LNKB, and continuing to efficiently satisfy the obligations associated with being a public company, all of which will require significant resources and management attention and may divert management’s attention from our business operations. Our financial performance is also substantially affected by a number of external factors outside of our control, including the following: • Economic conditions, and volatility in markets, including the effects of pandemics, wars, political conflicts, political instability and uncertainty both in the U.S. and abroad, government spending policies, trade policies, including tariffs and tariff counter-measures, and other barriers to trade (including the threat of such actions), the availability of labor, supply chain volatility, and any actions taken to mitigate and manage such impacts; • The actions or inactions (including assumptions about potential actions or inactions) by the Federal Reserve, U.S. Treasury, and other government agencies, including those that impact money supply and market interest rates and inflation; • The level of, and direction, timing, and magnitude of movement in interest rates and the shape of the interest rate yield curve; • The functioning and other performance of and availability of liquidity in U.S. and global financial markets, including capital markets; • Changes in the competitive landscape; 49 Table of Contents • Impacts of changes in federal, state, and local governmental policy, including on the regulatory landscape, capital markets, employment and unemployment levels in our markets, taxes, infrastructure spending, and social programs; • The effect of climate change on our business and performance, including indirectly through impacts on our customers; • The impact of market credit spreads on asset valuations; • The ability of customers, counterparties, and issuers to perform in accordance with contractual terms and the resulting impact on our asset quality; • Loan demand, utilization of credit commitments, and standby letters of credit; and • The impact on customers and changes in customer behavior due to changing business and economic conditions or regulatory or legislative initiatives. Risks related to these items, where material to the Company’s business, are discussed in the applicable sections of this Management’s Discussion and Analysis of Financial Condition and Results of Operation. For additional information on the risks we face, see Part II, Item 1A. - Risk Factors . 50 Table of Contents Selected Financial Data The following table contains selected historical consolidated financial data as of the dates and for the periods shown. The selected balance sheet data as of March 31, 2026, and March 31, 2025, and the selected income statement data for the three months ended March 31, 2026, and March 31, 2025, have been derived from our consolidated financial statements included elsewhere in this Form 10-Q and in other filings we have submitted with the SEC and should be read in conjunction with the other information contained in this Form 10-Q. For the Period Ended March 31, (In thousands, except ratios, share and per share data) 2026 2025 Selected Financial Condition Data: Total assets $ 7,927,711 $ 7,838,090 Total cash and cash equivalents 69,592 148,846 Total investment securities, at fair value 1,826,037 1,436,869 Net loans 5,336,712 5,579,754 Company-owned life insurance 214,606 184,018 Premises and equipment, net 136,806 132,289 Total deposits 6,332,265 6,541,871 Short-term borrowings 525,000 300,000 Total shareholders’ equity 864,504 758,000 Common shareholders’ equity 854,091 747,587 As of or for the Three Months Ended March 31, 2026 2025 Selected Operating Data: Interest income $ 105,456 $ 110,786 Interest expense 33,613 37,799 Net interest income 71,843 72,987 Provision for credit losses 12 501 Total non-interest income 12,853 10,023 Total non-interest expenses 51,381 49,664 Income before income taxes 33,303 32,845 Income tax expense 5,954 5,644 Preferred stock dividends 225 225 Net income applicable to common shares 27,124 26,976 Per Share Data: Average shares of common stock outstanding, basic 15,037,330 14,976,483 Average shares of common stock outstanding, diluted 15,131,481 15,026,376 Total shares of common stock outstanding 15,045,941 14,982,807 Basic net income per common share $ 1.80 $ 1.80 Diluted net income per common share 1.79 1.80 Dividends declared per common share 0.55 0.55 Common stock dividend payout ratio (1) 30.73 % 30.56 % Book value per common share (at period end) $ 56.77 $ 49.90 51 Table of Contents As of or for the Three Months Ended March 31, 2026 2025 Performance Ratios: Return on average assets 1.39 % 1.41 % Return on average common equity (2) 12.77 14.78 Interest rate spread (3) 3.53 3.55 Net interest margin (4) 4.09 4.18 Efficiency ratio (5) 60.67 59.83 Capital Ratios: Common equity tier 1 (CET 1) capital to risk-weighted assets 13.78 % 11.77 % Total risk-based capital to risk-weighted assets 16.52 14.79 Tier 1 capital to risk-weighted assets 14.22 12.20 Tier 1 capital to average assets (leverage ratio) 11.27 10.12 Asset Quality Ratios: Allowance coverage ratio 1.26 % 1.20 % Allowance for credit losses as a percentage of non-performing loans 86.50 104.63 Net charge-offs to average outstanding loans during the period 0.00 0.02 Non-performing loans as a percentage of total loans 1.45 1.15 Non-performing assets as a percentage of total assets 1.03 0.86 Other Data: Number of full-service branches 77 77 Number of full-time equivalent employees 830 814 (1) Common stock dividend payout ratio represents per share dividends declared divided by diluted earnings per share. (2) Return on average common equity computed using total average common equity at period-end. (3) The interest rate spread represents the difference between the fully taxable-equivalent weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period. (4) The net interest margin represents fully taxable-equivalent net interest income as a percent of average interest-earning assets for the period. (5) The efficiency ratio represents non-interest expense as a percentage of the sum of net interest income and non-interest income. 52 Table of Contents Results of Operations for the Three Months Ended March 31, 2026, and March 31, 2025 General Net income applicable to common shares for the three months ended March 31, 2026, was $27.1 million, compared to net income applicable to common shares of $27.0 million during the three months ended March 31, 2025. The $0.1 million increase was due to a decrease in interest expense, and an increase in non-interest income, partially offset by a decrease in interest income, and an increase in non-interest expense for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. Net interest income decreased by $1.1 million to $71.8 million for the three months ended March 31, 2026, compared to $73.0 million for the three months ended March 31, 2025. The main driver for this decrease was results that reflect lower interest income, primarily related to lower accretion income, which was partially offset by lower interest expense when compared to the three months ended March 31, 2025. For the three months ended March 31, 2026, the Company recorded credit provision expense of $12.0 thousand compared to a provision of $501.0 thousand for the three months ended March 31, 2025. For the three months ended March 31, 2026, credit loss expense on loans and AFS securities was $213.0 thousand compared to $900.0 thousand for the three months ended March 31, 2025. For the three months ended March 31, 2026, credit loss expense on loans and AFS securities was offset by a credit expense recapture of $201.0 thousand on off-balance sheet credit exposures. For the three months ended March 31, 2025, credit loss expense on loans and AFS securities was offset by a credit expense recapture of $398.8 thousand on off-balance sheet credit exposures. Non-interest income increased by $2.8 million, or 28.2%, to $12.9 million for the three months ended March 31, 2026, as compared to $10.0 million for the three months ended March 31, 2025. Increases in fiduciary and wealth management, net gains on securities, income from company-owned life insurance, and other non-interest income exceeded declines in service charges and fees income and bank debit and other card revenue for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. Non-interest expense increased by $1.7 million, or 3.5%, to $51.4 million for the three months ended March 31, 2026, as compared to $49.7 million for the three months ended March 31, 2025. The increase was primarily due to increases in salaries and wages, pensions and other employee benefits, equipment rentals, depreciation and maintenance, FDIC and other regulatory assessments and other operating expense for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increases were partially offset by a decrease in core deposit intangible amortization for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. Net Interest Income and Net Interest Margin Net interest income is the principal component of the Company’s income stream and represents the difference, or spread, between interest and fee income generated from earning assets and the interest expense paid on deposits and borrowed funds. Net interest margin, stated as a percentage, is the yield obtained by dividing the difference between interest income generated on earning assets and the interest expense paid on all funding sources by average earning assets. Fluctuations in interest rates as well as changes in the volume and mix of earning assets and interest-bearing liabilities can impact net interest income and net interest margin. Management closely monitors both total net interest income and the net interest margin and seeks to maximize net interest income without exposing the Company to an excessive level of interest rate risk through our asset and liability policies. Interest rate risk is managed by monitoring the pricing, maturity and repricing options of all classes of interest-bearing assets and liabilities. Net interest income totaled $71.8 million for the three months ended March 31, 2026, compared to $73.0 million for the three months ended March 31, 2025. The decrease in net interest income was primarily driven by results that reflect lower interest income, primarily related to lower accretion income, partially offset by lower interest expense related to lower deposit rates when compared to the three months ended March 31, 2025. Accretion income associated with acquired loans totaled $6.8 million for the three months ended March 31, 2026, compared to $11.4 million for the three months ended March 31, 2025. Amortization expense associated with fair value marks for time deposits, subordinated debt, and trust preferred securities totaled $1.4 million for the three months ended March 31, 2026, compared to $2.2 million for the three months ended March 31, 2025. 53 Table of Contents The tax-adjusted net interest margin was 4.09% for the three months ended March 31, 2026, compared to 4.18% for the three months ended March 31, 2025. The decrease in tax-adjusted net interest margin was primarily driven by results that reflect lower interest income, primarily related to lower accretion income, partially offset by lower interest expense related to lower deposit rates, when compared to the three months ended March 31, 2025. The yield for the taxable loan portfolio was 6.64% for the three months ended March 31, 2026, compared to 6.96% for the three months ended March 31, 2025. The decrease was primarily the result of lower accretion income for three months ended March 31, 2026 compared to the three months ended March 31, 2025. The tax-adjusted yield on the total investment securities portfolio was 4.05% for the three months ended March 31, 2026, compared to 3.85% for the three months ended March 31, 2025. The increase was primarily the result of an increase in balance of higher-yielding securities for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The yield on interest-bearing deposits decreased to 2.16% during the three months ended March 31, 2026, from 2.53% during the three months ended March 31, 2025. The decrease was primarily due to lower market interest rates on deposit products reflecting decreases in the Federal Funds Rate and other market rates. The yield on our short-term borrowings for the three months ended March 31, 2026, was 3.78%, compared to 3.88% for the three months ended March 31, 2025. The decrease was due to decreases in the Federal Funds Rate and other short-term market rates and the addition of derivative swaps that decreased our cost of borrowing. The yield on our subordinated debt assumed in the Summit Merger was 10.46% for the three months ended March 31, 2026, compared to 9.85% for the three months ended March 31, 2025. The following table sets forth the major components of net interest income and the related yields and rates for the three months ended March 31, 2026, and March 31, 2025, for comparison (dollars in thousands). 54 Table of Contents For the Three Months Ended March 31, 2026 2025 Average Outstanding Balance Interest Income/Expense Average Yield / Rate Average Outstanding Balance Interest Income/Expense Average Yield / Rate Assets: Loans, gross (1)(2) $ 5,380,967 $ 88,083 6.64 % $ 5,651,937 $ 97,031 6.96 % Tax-exempt loans (1)(2) 2,903 51 7.12 4,057 59 5.90 Total loans 5,383,870 88,134 6.64 5,655,994 97,090 6.96 Interest-earning deposits and fed funds sold 70,361 738 4.25 40,757 579 5.76 Taxable AFS securities and other securities (3) 1,128,486 10,513 3.78 1,039,391 9,862 3.85 Tax-exempt AFS securities (3)(4) 696,580 7,699 4.48 435,789 4,136 3.85 Total securities 1,825,066 18,212 4.05 1,475,180 13,998 3.85 Total interest-earning assets 7,279,297 107,084 5.97 7,171,931 111,667 6.31 Non-interest-earning assets 633,801 596,807 Total assets $ 7,913,098 $ 7,768,738 Liabilities and shareholders’ equity: Deposits: Non-interest-bearing demand $ 1,332,090 $ 1,371,615 Interest-bearing demand 2,286,206 11,161 1.98 % 2,216,243 11,816 2.16 % Money market & savings 1,675,034 7,558 1.83 1,633,307 8,139 2.02 Brokered CDs & time deposits 1,044,605 8,001 3.11 1,253,841 11,896 3.85 Total interest-bearing deposits 5,005,845 26,720 2.16 5,103,391 31,851 2.53 Total deposits 6,337,935 26,720 1.71 6,475,006 31,851 1.99 Borrowings: Short-term borrowings and other 496,501 4,624 3.78 336,245 3,219 3.88 Subordinated debt borrowings 87,979 2,269 10.46 112,383 2,729 9.85 Total interest-bearing liabilities 5,590,325 33,613 2.44 5,552,019 37,799 2.76 Non-interest-bearing liabilities 118,995 94,274 Equity 871,688 750,830 Total liabilities and equity $ 7,913,098 $ 7,768,738 Taxable-equivalent net interest income /net interest spread (5) 73,471 3.53 % 73,868 3.55 % Taxable-equivalent net interest margin (6) 4.09 % 4.18 % Taxable-equivalent net adjustment (1,628) (881) Net interest income $ 71,843 $ 72,987 Net interest-earning assets $ 1,688,972 $ 1,619,912 (1) Non-accrual loans are included in average loan balances. (2) Loan fees are included in the calculation of interest income. (3) Calculated based on fair value of investment securities. (4) Yields and interest income on tax-exempt assets are computed on a taxable-equivalent basis assuming a 21% tax rate. (5) The interest rate spread represents the difference between the fully taxable-equivalent weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period. 55 Table of Contents (6) The net interest margin represents FTE net interest income as a percent of average interest-earning assets for the period. Taxable-equivalent net interest margin, as presented above, is calculated by dividing FTE net interest income by total average earning assets. Net interest income, on an FTE basis, is a non-GAAP financial measure that the Company believes provides a more accurate picture of the interest margin for comparative purposes. Management believes FTE net interest income is a standard practice in the banking industry, and when net interest income is adjusted on an FTE basis, yields on taxable, nontaxable, and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income. FTE net interest income is calculated by adding the tax benefit on certain financial interest-earning assets, whose interest is tax-exempt, to total interest income then subtracting total interest expense. As a non-GAAP measure, FTE net interest income should not be considered as a substitute for the nearest comparable GAAP measure, net interest income. Net interest income shown elsewhere in this presentation is GAAP net interest income. The following table reconciles GAAP net interest income to FTE net interest income (in thousands). Three Months Ended March 31, 2026 March 31, 2025 GAAP Financial Measurements Interest income - Loans $ 88,083 $ 97,031 Interest income - Tax-exempt loans 40 46 Interest income - Taxable AFS securities and other securities 9,758 9,487 Interest income - Tax-exempt AFS securities 6,082 3,267 Interest income - Other interest income 1,493 955 Total Interest Income 105,456 110,786 Interest expense - Deposits 26,720 31,851 Interest expense - Borrowed funds 4,590 3,192 Interest expense - Subordinated debt 2,269 2,729 Interest expense - Other 34 27 Total interest expense 33,613 37,799 Total net interest income $ 71,843 $ 72,987 Non-GAAP Financial Measurements Add: Tax benefit on tax-exempt interest income $ 1,628 $ 881 Total tax benefit on tax-exempt interest income (1) 1,628 881 Tax-equivalent net interest income $ 73,471 $ 73,868 (1) Tax benefit was calculated using the federal statutory tax rate of 21%. Yield/Rate and Volume Analysis The following table sets forth the dollar difference in interest earned and paid for each major category of interest-earning assets and interest-bearing liabilities for the noted periods and the amount of such change attributable to changes in average balances (volume) or changes in average interest rates. Interest income and interest expense for the three months ended March 31, 2026, and March 31, 2025, are annualized using actual days over calendar year method. Volume variances are equal to the increase or decrease in average balance multiplied by current period rates, and rate variances are equal to the increase or decrease in rate times prior period average balances. Variances attributable to both rate and volume changes are calculated by multiplying the change in rate by the change in average balance and are allocated to the volume variance. See table below (in thousands). 56 Table of Contents Three Months Ended March 31, 2026, compared to March 31, 2025 Dollar Increase (Decrease) Due to Change in: Average Volume Average Yield / Rate Net Change Income from the interest-earning assets: Loans, (1) gross $ (4,671) $ (4,285) $ (8,956) AFS securities and other securities (1) 3,320 894 4,214 Interest-bearing deposits and fed funds sold 421 (262) 159 Total interest income on interest-earning assets (930) (3,653) (4,583) Expense from the interest-bearing liabilities: Interest-bearing demand deposits 373 (1,028) (655) Money market & savings 208 (789) (581) Brokered CDs & time deposits (1,985) (1,910) (3,895) Total interest expense on interest-bearing deposits (1,404) (3,727) (5,131) Borrowings Short-term borrowings 1,534 (129) 1,405 Subordinated debt and other (593) 133 (460) Total borrowings 941 4 945 Total interest expense on interest-bearing liabilities (463) (3,723) (4,186) Taxable-equivalent net interest income $ (467) $ 70 $ (397) (1) Yields and interest income on tax-exempt loans and securities have been computed on a taxable-equivalent basis. Interest Income Total interest income was $105.5 million for the three months ended March 31, 2026, compared to $110.8 million for the three months ended March 31, 2025, a decrease of 4.8%. The decrease in interest income was primarily due to lower accretion income when compared to the three months ended March 31, 2025. Interest income on loans decreased by $9.0 million and interest income on securities increased $3.1 million, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. Accretion income associated with acquired loans totaled $6.8 million for the three months ended March 31, 2026, compared to $11.4 million for the three months ended March 31, 2025. Interest Expense Total interest expense was $33.6 million for the three months ended March 31, 2026, compared to $37.8 million for the three months ended March 31, 2025. The decrease in interest expense was due to results that reflect lower rates on interest-bearing liabilities, and lower amortization expense associated with fair value marks for liabilities acquired in the Summit Merger. Interest expense on interest-bearing deposits decreased by $5.1 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, due to lower market rates. Interest on subordinated debt acquired in the Summit Merger was $2.3 million for the three months ended March 31, 2026, compared to $2.7 million for the three months ended March 31, 2025. Interest expense on short-term borrowings amounted to $4.6 million for the three months ended March 31, 2026, compared to $3.2 million for the three months ended March 31, 2025, due to higher average balances. Amortization expense associated with fair value marks for time deposits, subordinated debt, and trust preferred securities totaled $1.4 million for the three months ended March 31, 2026, compared to $2.2 million for the three months ended March 31, 2025. Provision for (Recapture of) Credit Losses The provision for credit losses was $12.0 thousand for the three months ended March 31, 2026, compared to a provision of $501.0 thousand for the three months ended March 31, 2025. For the three months ended March 31, 2026, credit loss expense on loans and AFS securities was $213.0 thousand compared to $900.0 thousand for the three months ended March 31, 2025. For the three months ended March 31, 2026, credit loss expense on loans and AFS securities was offset by a credit expense recapture of $201.0 thousand on off-balance sheet credit exposures. For the three months ended March 31, 2025, credit loss expense on loans and AFS securities was offset by a credit expense recapture of $398.8 thousand on off-balance sheet credit exposures. 57 Table of Contents Non-interest Income The following table sets forth the various components of our non-interest income for the periods indicated (in thousands): Three months ended March 31, Increase (Decrease) 2026 2025 Amount Percent Fiduciary and wealth management $ 3,227 $ 2,443 $ 784 32.1 % Service charges and fees 1,855 2,178 (323) (14.8) Net gains (losses) on securities 1,799 1 1,798 NM Income from company-owned life insurance 1,479 1,193 286 24.0 Bank debit and other card revenue 2,835 2,884 (49) (1.7) Other non-interest income 1,658 1,324 334 25.2 Total $ 12,853 $ 10,023 $ 2,830 28.2 % Non-interest income increased 28.2% for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The largest dollar increase was a $1.8 million increase in net gains on securities for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. This increase was driven by an increase in sales in our AFS securities portfolio for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. Increases in fiduciary and wealth management, income from company-owned life insurance, and other non-interest income exceeded declines in service charges and fees income and bank debit and other card revenue for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The fiduciary and wealth management increase was driven by increased wealth and fiduciary services performance. Non-interest Expense The following table sets forth the various components of our non-interest expense for the periods indicated (in thousands): Three months ended March 31, Increase (Decrease) 2026 2025 Amount Percent Salaries and wages $ 21,413 $ 20,941 $ 472 2.3 % Pensions and other employee benefits 5,370 5,136 234 4.6 Occupancy 4,027 4,045 (18) (0.4) Equipment rentals, depreciation and maintenance 4,188 4,084 104 2.5 Core deposit intangible amortization 3,684 4,298 (614) (14.3) ATM, card, and network expense 1,134 1,132 2 0.2 FDIC and other regulatory assessments 1,140 914 226 24.7 Other operating 10,425 9,114 1,311 14.4 Total $ 51,381 $ 49,664 $ 1,717 3.5 % Non-interest expense increased $1.7 million, or 3.5%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by increases in salaries and wages, pensions and other employee benefits, equipment rentals, depreciation and maintenance, FDIC and other regulatory assessments, and other operating expenses for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The largest dollar increase for the three months ended March 31, 2026, compared to the three months ended March 31, 2025 was a $1.3 million increase in other operating expenses, mostly driven by an increase in merger related expenses. The largest dollar decrease was a $614.0 thousand decrease in core deposit intangible amortization which declined due to its accelerated amortization method. See Note 13 — Other Operating Expense in Notes to Consolidated Financial Statements for further information on “Other” non-interest expense. Income Tax Expense Income tax expense was $6.0 million for the three months ended March 31, 2026, an increase of $310.0 thousand from the tax expense of $5.6 million for the three months ended March 31, 2025. The increase was mostly due to additional state taxes incurred in the combined market area after the Summit Merger, for the three months ended March 31, 2026, when 58 Table of Contents compared to the three months ended March 31, 2025. For the three months ended March 31, 2026, the effective tax rate was 17.9%, while the effective tax rate was 17.2% for March 31, 2025. 59 Table of Contents Analysis of Financial Condition for the Period Ended March 31, 2026, and December 31, 2025 Assets increased by $7.1 million to $7.9 billion as of March 31, 2026, compared to $7.9 billion as of December 31, 2025. Loans, net of ACL, was essentially flat at $5.3 billion as of March 31, 2026, increasing by $16.9 million from December 31, 2025. Deposits decreased by $71.7 million and amounted to $6.3 billion at March 31, 2026, compared to $6.4 billion at December 31, 2025. Short-term borrowings increased by $75.0 million to $525.0 million as of March 31, 2026, compared to $450.0 million at December 31, 2025. Subordinated debt and subordinated debt owed to unconsolidated subsidiary trusts, which were assumed in the Summit Merger, totaled $88.8 million at March 31, 2026, compared to $87.5 million at December 31, 2025. Investment Securities Our investment policy is established and reviewed annually by the Board. We are permitted under federal law to invest in various types of liquid assets, including United States Government obligations, securities of various federal agencies and of state and municipal governments, mortgage-backed securities, time deposits of federally insured institutions, certain bankers’ acceptances, and federal funds. Our securities are all classified as AFS. Our investments provide a source of liquidity because we can pledge them to support borrowed funds or can liquidate them to generate cash proceeds. Our investment portfolio is also a resource in managing interest rate risk because the maturity and interest rate characteristics of this asset class can be modified to match changes in the loan and deposit portfolios. The majority of our AFS investment portfolio is comprised of obligations of states and municipalities and residential mortgage-backed securities. During the three months ended March 31, 2026, the unrealized losses on our holdings increased $14.6 million from December 31, 2025. The Company determined that the declines in market value were due to increases in interest rates and market movements and not due to credit factors. Therefore, the Company has concluded that the unrealized losses for the AFS securities do not require an ACL at March 31, 2026, or at December 31, 2025. The Company has sufficient access to liquidity such that management does not believe it would be necessary to sell any of its investment securities at a loss to offset any unexpected deposit outflows. Management believes the structure of the Bank’s investment portfolio is appropriately aligned with the rest of the balance sheet to protect against significant and unexpected charges against earnings and capital. The following tables reflect the amortized cost and fair market values for the total portfolio for each category of investment for March 31, 2026, and December 31, 2025 (in thousands): March 31, 2026 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 158,733 $ — $ 9,270 $ 149,463 Obligations of states and municipalities 1,054,158 1,868 65,757 990,269 Residential mortgage backed - agency 60,008 357 2,990 57,375 Residential mortgage backed - non-agency 379,401 1,097 8,012 372,486 Commercial mortgage backed - agency 72,465 29 810 71,684 Commercial mortgage backed - non-agency 100,064 282 1,969 98,377 Asset-backed 50,732 111 543 50,300 Other 36,954 186 1,057 36,083 Total $ 1,912,515 $ 3,930 $ 90,408 $ 1,826,037 60 Table of Contents December 31, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 159,088 $ — $ 8,964 $ 150,124 Obligations of states and municipalities 977,104 5,414 59,944 922,574 Residential mortgage backed - agency 57,731 464 2,810 55,385 Residential mortgage backed - non-agency 221,443 1,860 5,211 218,092 Commercial mortgage backed - agency 74,253 250 607 73,896 Commercial mortgage backed - non-agency 112,082 584 1,557 111,109 Asset-backed 53,954 89 577 53,466 Other 32,162 158 1,012 31,308 Total $ 1,687,817 $ 8,819 $ 80,682 $ 1,615,954 The investment maturity table below summarizes contractual maturities for our investment securities at March 31, 2026. The actual timing of principal payments may differ from remaining contractual maturities because obligors may have the right to repay certain obligations with or without penalties. The overall weighted average duration of the Company’s investment portfolio is 4.6 years at March 31, 2026. The weighted-average yield below represents the effective yield for the investment securities and is calculated based on the amortized cost of each security (dollars in thousands). Interest on securities below excludes tax-equivalent adjustments. March 31, 2026 One Year or Less One to Five Years Five to Ten Years After Ten Years Total Amortized Cost Weighted Average Yield Amortized Cost Weighted Average Yield Amortized Cost Weighted Average Yield Amortized Cost Weighted Average Yield Amortized Cost Weighted Average Yield Securities Available-for-Sale U.S. Treasuries and government agencies $ — — % $ 158,733 1.34 % $ — — % $ — — % $ 158,733 1.34 % Obligations of states and municipalities 6,000 4.16 273,806 2.57 543,525 3.56 230,827 3.16 1,054,158 3.22 Residential mortgage backed - agency — — 25,872 4.66 26,284 2.72 7,852 4.27 60,008 3.76 Residential mortgage backed - non-agency 2,014 3.19 82,568 3.88 267,098 4.25 27,721 4.74 379,401 4.20 Commercial mortgage backed - agency — — 46,711 4.61 25,754 5.41 — — 72,465 4.89 Commercial mortgage backed - non-agency 7,162 5.36 66,128 4.33 26,774 4.99 — — 100,064 4.58 Asset-backed 2,610 5.23 33,268 4.94 14,854 4.69 — — 50,732 4.88 Other — — 2,811 6.45 25,034 5.91 9,109 9.52 36,954 6.84 Total $ 17,786 4.69 % $ 689,897 2.96 % $ 929,323 3.91 % $ 275,509 3.56 % $ 1,912,515 3.52 % Lending Activities Our loan portfolio consists primarily of commercial real estate loans, but we offer a variety of products to meet the credit needs of our borrowers. The risks associated with lending activities differ among loan classes and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions. Any of these factors may adversely impact a borrower’s ability to repay loans and also impact the associated collateral. Additional discussion on the classes of loans the Company makes and related risks is included in Note 3 — Loans in Notes to Consolidated Financial Statements. 61 Table of Contents The following tables set forth the composition of our loan portfolio as of the dates indicated (in thousands): March 31, 2026 December 31, 2025 Commercial real estate $ 2,806,846 $ 2,769,287 Owner-occupied commercial real estate 579,365 593,120 Acquisition, construction & development 352,686 386,870 Commercial & industrial 504,229 461,921 Single family residential (1-4 units) 1,128,740 1,127,684 Consumer non-real estate and other 32,801 48,794 Loans, gross 5,404,667 5,387,676 Allowance for credit losses (67,955) (67,823) Loans, net $ 5,336,712 $ 5,319,853 The loan portfolio, excluding ACL, at March 31, 2026, increased by $17.0 million from December 31, 2025, primarily due to growth in the commercial real estate and commercial & industrial loan segments. The following table shows the maturity distribution for total loans outstanding as of March 31, 2026. The maturity distribution is grouped by remaining scheduled principal payments that are due in the following periods. The principal balance of loans is indicated by both fixed and floating rate categories in the table below (in thousands). March 31, 2026 Within One Year One Year to Five Years Five Years to 15 Years After 15 Years Fixed Rates Adjustable Rates Fixed Rates Adjustable Rates Fixed Rates Adjustable Rates Fixed Rates Adjustable Rates Total Loans: Commercial real estate $ 286,860 $ 183,699 $ 1,037,733 $ 471,230 $ 221,911 $ 319,638 $ 2,159 $ 283,616 $ 2,806,846 Owner-occupied commercial real estate 17,824 6,824 148,444 38,085 94,326 171,213 10,367 92,282 579,365 Acquisition, construction & development 62,279 103,256 24,934 102,742 13,730 30,748 6,030 8,967 352,686 Commercial & industrial 14,230 207,295 116,265 84,891 28,772 32,322 16,941 3,513 504,229 Total commercial loans 381,193 501,074 1,327,376 696,948 358,739 553,921 35,497 388,378 4,243,126 Single family residential (1-4 units) 13,139 10,954 41,644 8,702 69,629 70,068 479,813 434,791 1,128,740 Consumer non-real estate and other 3,672 1,542 21,293 1,533 3,701 437 110 513 32,801 Total loans $ 398,004 $ 513,570 $ 1,390,313 $ 707,183 $ 432,069 $ 624,426 $ 515,420 $ 823,682 $ 5,404,667 Asset Quality The Company maintains policies and procedures to promote sound underwriting and mitigate credit risk. The Chief Credit Officer is responsible for establishing credit risk policies and procedures, including underwriting guidelines and credit approval authority, and monitoring credit exposure and performance of the Company’s lending-related transactions. We regularly monitor the level of loan delinquencies and believe these levels are a key indicator of credit quality in our loan portfolio. We manage credit risk based on the risk profile of the borrower, repayment sources, underlying collateral, and other support given current events, economic conditions and expectations. A loan is placed on non-accrual status when (i) the Company is advised by the borrower that scheduled principal or interest payments cannot be met, (ii) when management’s best judgment indicates that payment in full of principal and interest can no longer be expected, or (iii) when any such loan or obligation becomes delinquent for 90 days, unless it is both well-secured and in the process of collection. The Company’s asset quality metrics remain within the Company’s risk profile with adequate reserve coverage. The Company’s nonaccrual loan balances increased by $3.7 million from December 31, 2025, while the Company’s loans 90 days past due and still accruing increased $577.0 thousand from December 31, 2025. The Company’s non-performing assets, which includes non-performing loans consisting of non-accrual loans, loans that are more than 90 days past due and still accruing, and other real estate owned as of March 31, 2026, totaled $81.7 million, an increase of $4.7 million from $76.9 million at December 31, 2025. 62 Table of Contents The following table summarizes the Company’s non-performing assets as of March 31, 2026, and December 31, 2025 (in thousands): March 31, 2026 December 31, 2025 Non-accrual loans $ 74,359 $ 70,613 90 days past due and still accruing 4,200 3,623 Total non-performing loans 78,559 74,236 Other real estate owned 3,106 2,689 Total non-performing assets $ 81,665 $ 76,925 Allowance for Credit Losses Refer to the discussion in Note 1 — Nature of Business Activities and Significant Accounting Policies in Notes to Consolidated Financial Statements for management’s approach to estimating the ACL. The Company maintains the ACL at a level deemed adequate by management for expected credit losses. The Company’s ACL is calculated quarterly with any adjustment recorded to the provision for credit losses in the Consolidated Statement of Income. Management evaluates the adequacy of the ACL utilizing a defined methodology to determine if it properly addresses the current and expected risks in the loan portfolio, which considers the performance of borrowers and specific evaluation of individually evaluated loans, including historical loss experiences, trends in delinquencies, non-performing loans and other risk assets, and qualitative factors. Risk factors are continuously reviewed and adjusted, as needed, by management when conditions support a change. Management believes its approach properly addresses relevant accounting and bank regulatory guidance for loans both collectively and individually evaluated. The Company recorded a provision expense of $213.0 thousand and a provision of $900.0 thousand on loans for the three months ended March 31, 2026, and March 31, 2025, respectively. Gross charged-off loans were $490.0 thousand and $1.4 million for the three months ended March 31, 2026, and March 31, 2025, respectively. Gross recoveries totaled $409.0 thousand and $237.0 thousand for the three months ended March 31, 2026, and March 31, 2025, respectively. The ACL as a percentage of gross loans, net of unearned income, was 1.26% and 1.20% as of March 31, 2026, and March 31, 2025, respectively. 63 Table of Contents The following table summarizes the changes in the Company’s credit loss experience by portfolio for the three months ended March 31, 2026, and 2025 (dollars in thousands): Three months ended March 31, 2026 March 31, 2025 Loans outstanding at end of period $ 5,404,667 $ 5,647,507 Balance of allowance at beginning of period (67,823) (68,040) Allowance established for acquired PCD Loans — — Loans charged-off: Commercial real estate — — Owner-occupied commercial real estate 65 687 Acquisition, construction & development — — Commercial & industrial — 93 Residential 65 33 Consumer non-real estate and other 360 611 Total loans charged-off 490 1,424 Recoveries of loans charged-off: Commercial real estate (6) (6) Owner-occupied commercial real estate — — Acquisition, construction & development — — Commercial & industrial (11) (4) Residential (108) (132) Consumer non-real estate and other (284) (95) Total recoveries of loans charged-off (409) (237) Net loan charge-offs (recoveries) 81 1,187 Provision for (recapture of) credit losses for the period 213 900 Ending allowance $ (67,955) $ (67,753) Average loans outstanding during the period $ 5,383,870 $ 5,655,994 Allowance coverage ratio (1) 1.26 % 1.20 % Net charge-offs to average outstanding loans during the period (2) 0.00 0.02 Allowance for credit losses as a percentage of non-performing loans (3) 86.50 104.63 (1) The allowance coverage ratio is calculated by dividing the ACL at the end of the period by gross loans, net of unearned income at the end of the period. (2) The Net charge-offs to average outstanding loans during the period is calculated by dividing total net loan charge-offs (recoveries) during the year by average gross loans outstanding during the year. (3) The Allowance for credit losses as a percentage of non-performing loans ratio is calculated by dividing the ACL at the end of the period by non-accrual loans and loans 90 days past due and still accruing at the end of the period. 64 Table of Contents The following table summarizes the ACL by portfolio with a comparison of the percentage composition in relation to total ACL and allowance for credit losses and total loans as of March 31, 2026, and December 31, 2025 (dollars in thousands). March 31, 2026 Allowance for credit losses Percent of Allowance in Each Category to Total Allocated ACL Percent of Loans in Each Category to Total Loans Commercial real estate $ 27,001 39.74 % 51.93 % Owner-occupied commercial real estate 3,150 4.64 10.72 Acquisition, construction & development 16,773 24.68 6.53 Commercial & industrial 8,191 12.05 9.33 Residential 11,928 17.55 20.88 Consumer non-real estate and other 912 1.34 0.61 Total $ 67,955 100.00 % 100.00 % December 31, 2025 Allowance for credit losses Percent of Allowance in Each Category to Total Allocated Allowance Percent of Loans in Each Category to Total Loans Commercial real estate $ 26,190 38.62 % 51.40 % Owner-occupied commercial real estate 2,760 4.07 11.01 Acquisition, construction & development 17,221 25.39 7.18 Commercial & industrial 8,227 12.13 8.57 Residential 12,536 18.48 20.93 Consumer non-real estate and other 889 1.31 0.91 Total $ 67,823 100.00 % 100.00 % Derivative Financial Instruments The Company utilizes interest rate swap agreements as part of its asset/liability management strategy to help manage its interest rate risk position. The Company recognizes derivative financial instruments at fair value as either other assets or accrued interest and other liabilities on the Consolidated Balance Sheets. The Company’s use of derivative financial instruments is described more fully in Note 9 — Derivatives in Notes to Consolidated Financial Statements. Off-Balance Sheet Arrangements The Company enters into certain off-balance sheet arrangements in the normal course of business to meet the financing needs of its customers. These off-balance sheet arrangements include commitments to extend credit, standby letters of credit, and financial guarantees which would impact the Company’s liquidity and capital resources to the extent customers accept and/or use these commitments. See Note 10 — Commitments and Contingencies in Notes to Consolidated Financial Statements for a discussion of credit extension commitments. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. With the exception of these off-balance sheet arrangements, the Company has no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources. Funding Activities The Company’s funding activities are monitored and governed through the Company’s asset/liability management process. Deposits are the primary source of funds for lending and investing activities; however, the Company will use borrowings to meet liquidity needs and for temporary funding. The Company has available secured lines of credit with the Federal Reserve Bank of Richmond, such as the Borrower-In-Custody program, the FHLB of Atlanta, and unsecured federal funds 65 Table of Contents lines of credit from correspondent banking relationships. The Company also utilizes brokered time deposits. For more discussion of brokered time deposits, see the Deposits heading below this section. As of March 31, 2026, the Company has available unused borrowing capacity of $4.7 billion through its available lines of credit with the FHLB of Atlanta, the Federal Reserve Borrower-In-Custody Program line, and unsecured federal fund lines of credit from correspondent banking relationships. Advances on credit lines are secured by both securities and loans. The following table shows certain information regarding short-term borrowings as of the three months ended March 31, 2026, and December 31, 2025, respectively (dollars in thousands): Balance at end of period March 31, 2026 December 31, 2025 Short-term borrowings $ 525,000 $ 450,000 Weighted average interest yield 3.78% 3.90% The following table shows certain information regarding long-term debt as of the three months ended March 31, 2026, and December 31, 2025, respectively (dollars in thousands): Balance at end of period March 31, 2026 December 31, 2025 Subordinated debentures, net $ 71,510 $ 70,222 Subordinated debentures owed to unconsolidated subsidiary trusts 17,331 17,268 Total long-term debt $ 88,841 $ 87,490 Weighted average interest yield 10.46% 9.85% Deposits Total deposits decreased by $71.7 million from December 31, 2025, to March 31, 2026, primarily due to a decrease in brokered deposits of $61.0 million. The Company’s brokered time deposits amounted to $3.4 million as of March 31, 2026, and $64.4 million at December 31, 2025. All of the Company’s brokered deposits are in the form of certificates of deposits that are insured by the FDIC. Excluding the brokered deposit balance, the total deposit balance decreased by $10.7 million from December 31, 2025 to March 31, 2026. The following table sets forth the balance of each category of deposits as of the dates indicated (in thousands): March 31, 2026 December 31, 2025 Balance Balance Demand, non-interest-bearing $ 1,367,050 $ 1,336,380 Demand, interest-bearing 2,243,090 2,330,181 Money market and savings 1,701,707 1,665,304 Brokered deposits 3,431 64,410 Time deposits, other 1,016,987 1,007,666 Total interest-bearing 4,965,215 5,067,561 Total deposits $ 6,332,265 $ 6,403,941 The Company continues to seek organic growth in both interest-bearing and non-interest-bearing deposits consistent with our relationship-based strategy. Management evaluates its utilization of brokered deposits, taking into consideration the interest rate curve and regulatory views on non-core funding sources, and balances this funding source with its funding needs based on growth initiatives. The Company has deposits that meet or exceed the FDIC insurance limit of $250,000 in the amounts of $2.1 billion and $2.1 billion at March 31, 2026, and December 31, 2025, respectively. The Company does not have material deposit concentration risk to any significant market, industry or individual at March 31, 2026 or December 31, 2025. 66 Table of Contents The following table sets forth maturity ranges of time deposits as of March 31, 2026, that meet or exceed the FDIC insurance limit (in thousands). March 31, 2026 Due within 3 months or less $ 120,826 Due after 3 months and within 6 months 106,448 Due after 6 months and within 12 months 65,648 Due after 12 months 9,316 Total uninsured, time deposits $ 302,238 Shareholders’ Equity Total shareholders’ equity at March 31, 2026, was $864.5 million, compared to $854.6 million at December 31, 2025. Shareholders’ equity increased by $9.9 million mostly due to an increase in earnings since December 31, 2025. Accumulated other comprehensive loss increased by $10.0 million from December 31, 2025, to March 31, 2026, from $(59.0) million to $(69.0) million due to an increase in unrealized losses in our securities portfolio. 67 Table of Contents Item 3. Quantitative and Qualitative Disclosures About Market Risk Market Risk Market risk is the risk of loss from adverse changes in market prices and rates. Our market risk arises primarily from interest rate risk inherent in lending, investment, and deposit-taking activities. To that end, management actively monitors and manages its interest rate risk exposure, and on at least a quarterly basis, in conjunction with the Company’s Asset/Liability meetings, reports its findings to the ALCO and to the Board. From time to time, management may change the frequency of such testing or update certain inputs as a result of abnormal market conditions. Our profitability is affected by fluctuations in interest rates; a sudden and substantial change in interest rates may adversely impact our earnings to the extent that the interest rates borne by assets and liabilities do not change at the same speed, to the same extent, or on the same basis. We monitor the impact of changes in interest rates on net interest income using several tools. Our primary objective in managing interest rate risk is to minimize the adverse impact of changes in interest rates on our net interest income and capital, while configuring our asset-liability structure to obtain the maximum yield-cost spread on that structure. We rely primarily on our asset-liability structure to control interest rate risk. In addition, the Company’s Asset/Liability policy provides for a subcommittee of the ALCO, comprised of executive and senior management that, upon the determination that abnormal market risks are occurring or may be forthcoming, will convene with the responsibility of making all decisions related to mitigation of potential negative impacts to the Company. This subcommittee acts as a clearinghouse for information on Company earnings, credit risk, lending and deposit activities, and liquidity management necessary for internal communications, including to the Board, and external communications. Interest Rate Sensitivity Interest rate risk is the risk to earnings and fair value arising from changes in market interest rates. Interest rate risk arises from timing differences in the repricing and maturities of interest-earning assets and interest-bearing liabilities (repricing risk), changes in the expected maturities of assets and liabilities arising from embedded options, such as borrowers’ ability to prepay home mortgage loans at any time, depositors’ ability to redeem certificates of deposit before maturity (option risk), changes in the shape of the yield curve, where interest rates increase or decrease in a non-parallel fashion (yield curve risk), and changes in spread relationships between different yield curves, such as U.S. Treasuries and SOFR (basis risk). The rates on some interest-bearing financial instruments may adjust promptly with changes in market rates, while others adjust only periodically or are fixed for a predefined term. Such instances can cause a mismatch between the sensitivity and behavior of financial assets and liabilities. Interest rate fluctuations and economic factors, coupled with repricing mismatches and embedded options inherent in these financial assets and liabilities, may impact the Company’s interest expense, interest income, and the value of certain financial assets and liabilities. Through the ALCO, we attempt to manage the balance sheet in a manner that increases the benefit or reduces the negative impacts from such events. The overall impact of changes in interest rates, including, but not limited to, the impact to our net interest income and to our securities portfolio, can be enhanced or diluted depending on the variability of interest rates. From time to time, the Company may hedge its interest rate risk position, which can impact earnings. We generally do not hedge all of our interest rate risk, nor can we guarantee that any attempts to hedge some or all of our interest rate risk will be successful. See Note 9 - Derivatives in Notes to Consolidated Financial Statements for a discussion of our hedging activity. The Company actively manages its interest rate sensitivity position. The objectives of interest rate risk management are to control exposure of net interest income to risks associated with interest rate movements and to achieve sustainable growth in net interest income. The ALCO, using policies and procedures approved by the Company’s Board, is responsible for the management of the Company’s interest rate sensitivity position. The Company manages interest rate sensitivity by changing the mix, pricing and re-pricing characteristics of its assets and liabilities, through the management of its investment portfolio, its offerings of loan and selected deposit terms, and through wholesale funding. Wholesale funding consists of, but is not limited to, borrowings with the FHLB, federal funds purchased, and brokered time deposits. The Company uses several tools to manage its interest rate risk, including interest rate sensitivity analysis, or gap analysis, market value of portfolio equity analysis, interest rate simulations under various rate scenarios, and net interest margin reports. The results of these reports are compared to limits established by the Company’s ALCO policies, and appropriate adjustments are made if the results are outside the established limits. 68 Table of Contents There are an infinite number of potential interest rate scenarios, each of which can be accompanied by differing economic/political/regulatory climates; can generate multiple differing behavior patterns by markets, borrowers, depositors, etc.; and, can last for varying degrees of time. Therefore, by definition, interest rate risk sensitivity cannot be predicted with certainty. Accordingly, the Company’s interest rate risk measurement philosophy focuses on maintaining an appropriate balance between theoretical and practical scenarios; especially given the primary objective of the Company’s overall asset/liability management process, which is to facilitate meaningful strategy development and implementation. Therefore, we model a set of interest rate scenarios capturing the financial effects of a range of plausible rate scenarios; the collective impact of which will enable the Company to clearly understand the nature and extent of its sensitivity to interest rate changes. Doing so necessitates an assessment of rate changes over varying time horizons and of varying/sufficient degrees such that the impact of embedded options within the balance sheet are sufficiently examined. The following tables demonstrate the annualized result of an interest rate simulation and the estimated effect that a parallel interest rate shift, or “shock”, in the yield curve and subjective adjustments in deposit pricing might have on the Company’s projected income over the next 12 months. This simulation assumes that there is no growth in interest-earning assets or interest-bearing liabilities over the next 12 months. As of March 31, 2026 As of December 31, 2025 Change in Interest Rates (in Basis Points) Percentage Change in Earnings Percentage Change in Earnings 200 (3.7) % (2.7) % 100 (1.5) (1.0) (100) 0.5 0.1 (200) 1.2 0.3 (300) 3.3 2.3 Economic Value of Equity Analysis (“EVE”). We analyze the sensitivity of our financial condition to changes in interest rates through our economic value of equity model. This analysis measures the difference between predicted changes in the fair value of our assets and predicted changes in the present value of our liabilities, assuming various changes in current interest rates. The table below represents an analysis of our interest rate risk as measured by the estimated changes in our economic value of equity, resulting from an instantaneous and sustained parallel shift in the yield curve at March 31, 2026, and December 31, 2025. As of March 31, 2026 As of December 31, 2025 Change in Interest Rates (in Basis Points) Percentage Change in EVE Percentage Change in EVE 200 (9.4) % (8.3) % 100 (4.4) (3.8) (100) 3.4 2.7 (200) 4.8 3.3 (300) 4.8 2.4 69 Table of Contents Item 4. Controls and Procedures Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of March 31, 2026. Based on their evaluation of the Company’s disclosure controls and procedures, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and regulations are designed and operating in an effective manner. There were no changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 70 Table of Contents Part II - Other Information Item 1. Legal Proceedings Legal Proceedings In the ordinary course of our operations, and from time to time, the Company and its subsidiary are parties to various legal claims, lawsuits, and proceedings incidental to the ordinary nature of the Company’s business. Currently, we are not party to any material legal proceedings, and no such proceedings are, to management’s knowledge, threatened against us. Although the ultimate outcome of any pending legal proceedings cannot be ascertained at this time, it is the opinion of management that the liabilities (if any) resulting from such legal proceedings will not have a material adverse effect on the Company’s business, including its consolidated financial position, results of operations, or cash flows, or otherwise require disclosure under the federal securities laws. Item 1A. Risk Factors There have been no material changes in the risk factors that were disclosed in Item 1A, under the caption “Risk Factors” in our Form 10-K for the year ended December 31, 2025. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds On April 25, 2025, the Company announced that its Board authorized a share repurchase program pursuant to which the Company may purchase up to $50.0 million of the Company’s Common Stock in the open market or in privately negotiated transactions. The Company made no open market or private purchases for the three months ended March 31, 2026. The following table provides information about the Company’s purchases of equity securities that are registered by the Company pursuant to Section 12 of the Exchange Act for the periods indicated: Period Total number of shares purchased (1) (2) Average price paid per share Total number of shares purchased as part of publicly announced plans or programs (2) Approximate dollar value of shares that may yet be purchased under the plans or programs (3) January 1 - 31, 2026 3,743 $ 64.67 — $ 50,000,000 February 1 - 28, 2026 — — — 50,000,000 March 1 - 31, 2026 104 61.97 — 50,000,000 (1) Shares purchased during the period that were transferred to the Company from employees in satisfaction of minimum tax withholding obligations associated with the vesting of restricted stock units during the period. (2) No shares were purchased by the Company under any share repurchase program during the quarter ended March 31, 2026. (3) The Company’s share repurchase program was authorized on April 25, 2025. Item 3. Defaults Upon Senior Securities None. Item 4. Mine Safety Disclosures Not Applicable. Item 5. Other Information (c) Insider Trading Arrangements During the three months ended March 31, 2026, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933, as amended). 71 Table of Contents Item 6. Exhibits Exhibit No. Description 2.1* Agreement and Plan of Merger between Burke & Herbert Financial Services Corp. and LINKBANCORP, Inc. (incorporated by reference to Exhibit 2.1 to the Form 8-K, filed December 18, 2025) 3.1* Articles of Incorporation Burke & Herbert Financial Services Corp. as amended (incorporated by reference to Exhibit 3.1 of the Registrant’s Form 10-Q filed August 13, 2024) 3.2* Bylaws of Burke & Herbert Financial Services Corp. as amended (incorporated by reference to Exhibit 3.1 to the Form 8-K, filed May 1, 2026) 10.1# E mployment Agreement dated August 24, 2023 by and between Burke & Herbert Bank & Trust Company and Bradford Ritchie. 10.2# E mployment Agreement dated August 2 4, 202 3 by and between Burke & Herbert Bank & Trust Company and Robert S. Tissue. 10.3* E xecutive Salary Continuation Agreement dated January 1, 20 08 and effective Ja nua ry 1, 20 05 by an d between Summit Community Bank and H. Charles Maddy, III . 10.4* E xecutive Sal ary Continuation Agre ement dated February 23, 2012 by and between Summit Community Bank and Bradford E. Ritchie. 10.5* F o rm of Executive Salary Continuation Agreement dated January 1, 2008 and effective J anuary 1, 2005 by and between Summit Financial Group, Inc. and Robert S. Tissue. 10.6# B urke & Herbert Financial Services Corp. 2019 Stock Incentive Plan Form of Restricted Stock Unit Aw ard. 10.7# Burke & Her bert Financial Services Corp. 2023 Stock Incentive Plan Form of Grant of Perfor manc e Restricted Stock Unit Awards. 31.1# Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 31.2# Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 32.1# Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 101# The following materials from the registrant’s Form 10-Q Report for the quarterly period ended March 31, 2026, formatted in Inline XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income (Loss), (iii) the Consolidated Statements of Comprehensive Income (Loss), (iv) the Consolidated Statements of Changes in Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements. 104# The cover page of the registrant’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026, formatted in Inline XBRL (contained in Exhibit 101). __________________ * Previously filed # Filed herewith 72 Table of Contents SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: May 8, 2026 Burke & Herbert Financial Services Corp. By: /s/ David P. Boyle Name: David P. Boyle Title: Chairman of the Board and Chief Executive Officer By: /s/ Roy E. Halyama Name: Roy E. Halyama Title: Executive Vice President, Chief Financial Officer 73