What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-08-07 compared with 2026-05-08 · 401 added, 177 removed, 627 unchanged (48% of the section changed)

6 unchanged sentences

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;

merger with LNKB and the expected cost savings, synergies, returns, and other anticipated benefits from the integration of LNKB;

revenues, earnings, earnings per share, loan production, asset quality, and capital levels, among other matters;

estimates of the future costs and benefits of the actions we may take;

assessments of expected losses on loans;

assessments of interest rate and other market risks;

ability to achieve our financial and other strategic goals;

and other statements that are not historical facts.

10 unchanged sentences

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 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 (if any), 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;

costs or difficulties associated with newly developed or acquired operations;

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;

that the integration of LNKB 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,

and deposit practices;

risks related to the potential impact of global macroeconomic conditions and changes in general economic, political and market factors on the integration of LNKB or our operations generally (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 with respect to spending on industries concentrated in our market area, as well as the impact from tariffs on the markets we serve;

changes in consumer confidence and demand for financial services, including changes in consumer borrowing, repayment, investment, and deposit practices;

changes in asset quality and credit risk;

19 unchanged sentences

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 Bank’s operations are conducted from it’s over 105 branches and commercial loan offices across Delaware, Kentucky, Maryland, Virginia, West Virginia, and Pennsylvania.

The Company’s branch locations accept business and consumer deposits from a diverse customer base.

7 unchanged sentences

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.

As of June 30, 2026, we had total consolidated assets of $11.0 billion, gross loans of $8.0 billion, total deposits of $9.0 billion, and total shareholders’ equity of $1.2 billion.

As of June 30, 2026, we had 1,051 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.

Effective on May 1, 2026, Burke & Herbert Financial Services Corp., a Virginia corporation, completed its previously announced merger with LNKB, 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.

1 unchanged sentence

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,

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.

To prepare financial statements in conformity

with GAAP, management makes estimates, assumptions, and judgments based on available information.

These estimates, 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.

6 unchanged sentences

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.

The allowance for credit losses for PCD and PSL loans is recognized within acquisition accounting.

The allowance for credit losses for non-PCD 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.

11 unchanged sentences

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.

The allowance for credit losses represents our estimate of all expected credit losses for financial assets held for investment 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 assets.

Financial assets are charged-off against the allowance when management believes the uncollectibility of a financial asset is confirmed.

4 unchanged sentences

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.

Historical credit loss experience as related to macroeconomic data provides the basis for the estimation of expected credit losses over defined credit contractual terms.

Qualitative adjustments to modeled loss rates are made for differences in current portfolio risk characteristics, such as for credit concentrations and for adversely classified or graded credits.

The Company is using a third-party 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 WARM method within defined contractual terms by federal call codes.

The model forecasts charge-off rates by call codes using ordinary least squares (“OLS”) regression models that use macroeconomic variables to forecast the Company’s charge-off rates.

These models are used to produce reasonable and supportable forecasts of charge-off rates.

The macroeconomic variables utilized by the Company are sourced from third parties and include variables that meet defined criteria in forecasting credit losses for our loan portfolio.

These variables include, but are not limited to such items as equity market conditions or interest rates, as well as to portfolio-specific indicators, such as those that pertain to the commercial real estate or to the residential loan portfolios.

To review the integrity of the modeled output, Management validates, validates the specific loan and macroeconomic data inputs.

The Company currently has set an initial reasonable and supportable forecast period of two years with a subsequent one-year input reversion period to the historical mean input forecast loss rates in the remaining or post-reversion 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 forecasts and the subsequent reversion to historical loss information on collectively evaluated loans.

As the quantitatively modeled forecasts reflect 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:

1 unchanged sentence

(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.

and (iii) underwriting trends.

The qualitative factors applied at June 30, 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 exclusive of qualitative factors.

Management reviews supplemental data sources including historical 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.

These evaluations are conducted at least quarterly and more frequently, if deemed necessary.

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.

21 unchanged sentences

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

The Bank’s exposure to CRE at June 30, 2026, was $3.9 billion, or 48.7%, of its gross loan portfolio, not including owner-occupied commercial real estate and acquisition, construction & development.

CRE as a percent of total assets at June 30, 2026, was 35.5%, not including owner-occupied CRE and acquisition, construction & development.

Including owner-occupied CRE and acquisition, construction & development, total exposure was at $5.5 billion, or 68.8%, of our total gross loans and 50.1% of total assets at June 30, 2026.

Loan balances by portfolio segment amortized cost (in thousands) and by percentage of our total gross loan portfolio at June 30, 2026, were as follows:

June 30, 2026

Amortized Cost Percentage

10 unchanged sentences

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).

The tables below present the Bank’s commercial real estate, owner-occupied commercial real estate, and acquisition, construction & development portfolios by collateral type and geographic location as of June 30, 2026 (in thousands).

Commercial Real Estate by Collateral Type and Geographic Location

VA WV MD DC Other Total Percentage

VA WV MD PA DC Other Total Percentage

Retail Real Estate $ 410,442 $ 67,417 $ 157,684 $ 84,549 $ 48,088 $ 107,016 $ 875,196 22.5 %

7 unchanged sentences

Gas Stations 7,665 1,395 1,893 — 14,216 2,270 27,439 0.7

Child Care Facilities and Schools 59,624 235 296 — 32,500 8,924 101,579 2.6 %

Other 130,226 10,195 96,013 74,839 16,254 22,466 349,993 9.0

1 unchanged sentence

Owner-Occupied Commercial Real Estate by Collateral Type and Geographic Location

VA WV MD DC Other Total Percentage

VA WV MD PA DC Other Total Percentage

Office Buildings/Condos $ 68,857 $ 29,665 $ 31,605 $ 36,230 $ 307 $ 18,654 $ 185,318 16.1 %

9 unchanged sentences

Acquisition, Construction & Development by Collateral Type and Geographic Location

VA WV MD DC Other Total Percentage

VA WV MD PA DC Other Total Percentage

Multi-Family $ 30,798 $ 3,732 $ 24,996 $ — $ 30,739 $ 17,948 $ 108,213 23.9 %

55 unchanged sentences

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.

As of June 30, 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

43 unchanged sentences

- Risk Factors .

Supervision and Regulation Update

As a result of the LNKB Merger, as of May 1, 2026, we have total consolidated assets of $11.0 billion, compared to $7.9 billion as of December 31, 2025.

The increase in the size of our assets will lead to additional scrutiny from governmental authorities.

Banks with $10 billion or more in total assets are, among other things:

examined directly by the Consumer Financial Protection Bureau (the “CFPB”) with respect to various federal consumer financial laws;

subject to reduced dividends on any holdings of Federal Reserve Bank of Richmond common stock;

subject to limits on interchange fees pursuant to Section 920 of the Electronic Funds Transfer Act (known as the Durbin Amendment);

no longer treated as a “small institution” for FDIC deposit insurance assessment purposes;

and no longer eligible to elect to be subject to the Community Bank Leverage Ratio.

Compliance with these additional ongoing requirements may necessitate additional personnel, the design and implementation of additional internal controls, and the incurrence of significant expenses, which could have a significant adverse effect on the Company’s financial condition or results of operations.

The Durbin Amendment.

The Federal Reserve's regulations implementing the Durbin Amendment cap the maximum permissible interchange fee for covered issuers at $0.21 per transaction plus 5 basis points multiplied by the value of the transaction, with an additional $0.01 per transaction for issuers that implement policies and procedures reasonably designed to achieve certain fraud-prevention standards.

Prior to crossing the $10 billion threshold, the Bank was exempt from these interchange fee limitations.

Beginning July 1, 2027, the Bank will become subject to the Durbin Amendment's interchange fee limitations, which will reduce the interchange income we receive on debit card transactions.

While we are still evaluating the full impact, we expect the Durbin Amendment to result in a meaningful reduction in our debit card interchange revenue.

We are exploring strategies to mitigate this impact, including reviewing our deposit product pricing and fee structures.

CFPB Supervision.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the CFPB has examination and primary enforcement authority over insured depository institutions with more than $10 billion in assets for compliance with federal consumer financial laws.

As a result of crossing this threshold, the Bank is now subject to CFPB supervision, which includes periodic examinations by the CFPB.

The CFPB has broad rulemaking authority over consumer financial products and services.

CFPB supervision may result in increased compliance costs, require changes to certain of our business practices, and subject us to potential enforcement actions or penalties if we are found to be in violation of federal consumer financial laws.

FDIC Insurance.

For institutions with greater than $10 billion in assets, deposit insurance pricing is based on a supervisory rating system designed to take into account and reflect all financial and operational risks that a bank may face, including capital adequacy, asset quality, management capability, earnings, liquidity, and sensitivity to market risk (“CAMELS”), in addition to financial measures used to estimate an institution’s ability to withstand asset-related and funding-related stress, and a measure of loss severity that estimates the relative magnitude of potential losses to the FDIC in the event of the

institution’s failure.

Banks with $10 billion or more in total assets may be subject to assessments or increases in premiums from time to time if the FDIC needs to replenish the Deposit Insurance Fund to required levels.

For additional information regarding the effects and risks associated with crossing the $10 billion asset threshold, see Supervision and Regulation and Risk Factors in our Form 10-K for the year ended December 31, 2025.

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,

The selected balance sheet data as of June 30, 2026, and June 30, 2025, and the selected income statement data for the three and six months ended June 30, 2026, and June 30, 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 June 30,

(In thousands, except ratios, share and per share data) 2026 2025

12 unchanged sentences

1,191,766 769,605

As of or for the Three Months Ended March 31,

As of or for the Three Months Ended June 30,

As of or for the Six Months Ended June 30,

2026 2025 2026 2025

Selected Operating Data:

6 unchanged sentences

Income before income taxes 12,006 37,181 45,309 70,026

33,303 32,845

Income tax expense 2,524 7,284 8,478 12,928

Preferred stock dividends

Net income applicable to common shares

225 225 450 450

Net income applicable to common shares 9,257 29,672 36,381 56,648

Per Share Data:

6 unchanged sentences

Basic net income per common share $ 0.50 $ 1.98 $ 2.17 $ 3.78

$ 1.80 $ 1.80

Diluted net income per common share 0.50 1.97 2.16 3.77

4 unchanged sentences

$ 59.10 $ 51.28 $ 59.10 $ 51.28

As of or for the Three Months Ended March 31,

As of or for the Three Months Ended June 30,

As of or for the Six Months Ended June 30,

2026 2025 2026 2025

Performance Ratios:

1 unchanged sentence

Return on average common equity (2)

3.52 15.71 7.66 15.25

Interest rate spread (3)

3.55 3.57 3.54 3.56

Net interest margin (4)

4.15 4.17 4.12 4.17

Efficiency ratio (5)

87.48 56.60 75.62 58.18

Capital Ratios:

3 unchanged sentences

Tier 1 capital to average assets (leverage ratio)

11.07 10.42 11.07 10.42

Asset Quality Ratios:

6 unchanged sentences

Number of full-time equivalent employees 1,051 819 1,051 819

(1) Common stock dividend payout ratio represents per share dividends declared divided by diluted earnings per share.

(1) The 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.

2 unchanged sentences

(5) The efficiency ratio represents non-interest expense as a percentage of the sum of net interest income and non-interest income.

Results of Operations for the Three Months Ended March 31, 2026, and March 31, 2025

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.

Results of Operations for the Six Months Ended June 30, 2026, and June 30, 2025

Net income applicable to common shares for the six months ended June 30, 2026, was $36.4 million, compared to net income applicable to common shares of $56.6 million during the six months ended June 30, 2025.

The $20.3 million decrease in net income applicable to common shares was primarily the result of an increase in merger-related expenses for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Net interest income increased by $17.7 million to $164.9 million for the six months ended June 30, 2026, compared to $147.2 million for the six months ended June 30, 2025.

The main driver for this increase was the impact of the LNKB Merger which resulted in an increase in the balance of interest-earning assets, in excess of the increase in interest-bearing liabilities.

For the six months ended June 30, 2026, the Company recorded credit provision expense of $1.4 million compared to a provision of $1.1 million, which was a small increase compared to the six months ended June 30, 2025.

For the six months ended June 30, 2026, the provision for off-balance sheet credit exposures was $2.0 million, compared to a recovery of $492.0 thousand, for the six months ended June 30, 2025.

Non-interest income increased by $3.8 million, or 16.6%, to $26.7 million for the six months ended June 30, 2026, compared to $22.9 million for the six months ended June 30, 2025.

All categories of non-interest income increased except service charges and fees and net (losses) gains on securities for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

The increases in income from fiduciary and wealth management income was driven by the acquisition of Burke & Herbert Wealth Services, LLC, while increases in company-owned life insurance, bank debit and other card revenue and other non-interest income were driven by the LNKB Merger, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Non-interest expense increased by $45.9 million, or 46.4%, to $144.9 million for the six months ended June 30, 2026, compared to $99.0 million for the six months ended June 30, 2025.

The increase was primarily due to the effect of the LNKB Merger and included higher legal, consulting, audit, investment banking, software contract terminations, and change-in-control salary and benefit payments for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Net Interest Income and Net Interest Margin

4 unchanged sentences

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.

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.

Net interest income totaled $164.9 million for the six months ended June 30, 2026, compared to $147.2 million for the six months ended June 30, 2025.

The increase in net interest income was primarily driven by the LNKB Merger and results reflecting higher average balances of interest-earning assets in excess of the higher average balances of interest-bearing liabilities.

Accretion income associated with acquired loans totaled $16.1 million for the six months ended June 30, 2026, compared to $23.0 million for the six months ended June 30, 2025.

Amortization expense associated with fair value marks for time deposits, subordinated debt, and trust preferred securities totaled $2.9 million for the six months ended June 30, 2026, compared to $3.6 million for the six months ended June 30, 2025.

The tax-adjusted net interest margin was 4.12% for the six months ended June 30, 2026, compared to 4.17% for the six months ended June 30, 2025.

The decrease in tax-adjusted net interest margin was primarily driven by lower accretion

income and the acquisition of lower yielding loans from the LNKB Merger which led to lower rates on interest-earning assets.

The yield for the taxable loan portfolio was 6.58% for the six months ended June 30, 2026, compared to 6.93% for the six months ended June 30, 2025.

The decrease was primarily the result of an increase in the balance of lower yielding loans due to the LNKB Merger, as well as lower accretion income for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

The tax-adjusted yield on the total investment securities portfolio was 4.23% for the six months ended June 30, 2026, compared to 3.90% for the six months ended June 30, 2025.

The increase was mainly due to higher yields through reinvestment in our securities portfolio as well as an increase in balances due to the LNKB Merger.

The rate on interest-bearing deposits decreased to 2.21% during the six months ended June 30, 2026, from 2.47% during the six months ended June 30, 2025.

The decrease was primarily due to the LNKB Merger which resulted in an increase in lower rate deposits and decreases in interest rates across the different categories of deposit liabilities as well as decreases in market rates.

The rate on our short-term borrowings for the six months ended June 30, 2026, was 3.70%, compared to 3.90% for the six months ended June 30, 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).

For the Three Months Ended March 31,

The rate on our subordinated debt was 9.68% for the six months ended June 30, 2026, compared to 9.73% for the six months ended June 30, 2025.

The following table sets forth the major components of net interest income and the related yields and rates for the six months ended June 30, 2026, and June 30, 2025, for comparison (dollars in thousands).

For the Six Months Ended June 30,

Average Outstanding Balance Interest Income/Expense Average Yield / Rate

42 unchanged sentences

(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.

(5) The interest rate spread represents the difference between the fully taxable-equivalent weighted-average yield on interest-earning assets and the weighted-average rate of interest-bearing liabilities for the period.

(6) The net interest margin represents FTE net interest income as a percent of average interest-earning assets for the period.

7 unchanged sentences

The following table reconciles GAAP net interest income to FTE net interest income (in thousands).

Three Months Ended

March 31, 2026 March 31, 2025

Six Months Ended

June 30, 2026 June 30, 2025

GAAP Financial Measurements

18 unchanged sentences

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.

Interest income and interest expense for the six months ended June 30, 2026, and June 30, 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.

1 unchanged sentence

See table below (in thousands).

Three Months Ended March 31, 2026, compared to March 31, 2025

Dollar Increase (Decrease) Due to Change in:

Average Volume Average Yield / Rate

Six Months Ended June 30, 2026 vs June 30, 2025

Increase (Decrease) Due to Change in:

Average Volume Average Rate Net Change

Income from the interest-earning assets:

2 unchanged sentences

AFS Securities and other securities (1) 7,614 3,104 10,718

3,320 894 4,214

Interest bearing deposits and fed funds sold 219 (440) (221)

3 unchanged sentences

Money market & savings 2,530 (1,126) 1,404

Brokered CDs & time deposits 369 (2,537) (2,168)

Total interest expense on interest-bearing deposits 5,720 (6,264) (544)

Short-term borrowings 3,449 (571) 2,878

Subordinated debt and other (186) (14) (200)

Total borrowings 3,263 (585) 2,678

Total interest expense on interest-bearing liabilities 8,983 (6,849) 2,134

Taxable-equivalent net interest income

$ 20,771 $ (1,382) $ 19,389

(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 $242.4 million for the six months ended June 30, 2026, compared to $222.6 million for the six months ended June 30, 2025, an increase of 8.9%.

The increase in interest income was primarily due to the LNKB Merger and an increase in the balance of interest-earning assets, partially offset by a decrease in accretion income, when compared to the six months ended June 30, 2025.

Interest income on loans increased by $11.0 million and interest income on securities increased $8.8 million, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily due to a higher volume of interest earning assets and higher reinvestment rates in our securities portfolio.

Accretion income associated with acquired loans totaled $16.1 million for the six months ended June 30, 2026, compared to $23.0 million for the six months ended June 30, 2025.

Interest Expense

Total interest expense was $77.6 million for the six months ended June 30, 2026, compared to $75.4 million for the six months ended June 30, 2025.

The increase in interest expense was due to results that reflect an increase in interest-bearing liabilities due to the LNKB Merger, partially offset by lower rates on interest-bearing liabilities.

Interest expense on interest-bearing deposits decreased by $544.0 thousand for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Interest on subordinated debt was $5.3 million for the six months ended June 30, 2026, compared to $5.5 million for the six months ended June 30, 2025.

Interest expense on short-term borrowings totaled $10.5 million for the six months ended June 30, 2026, compared to $7.6 million for the six months ended June 30, 2025.

Provision for Credit Losses

The provision for credit losses was $1.4 million for the six months ended June 30, 2026, which was a small increase compared to a provision of $1.1 million for the six months ended June 30, 2025.

For the six months ended June 30, 2026, the provision for off-balance sheet credit exposures was $2.0 million, compared to a recovery of $492.0 thousand, compared to the six months ended June 30, 2025.

See Note 4 - Allowance for Credit Losses in Notes to Consolidated Financial Statements for further information.

Non-interest Income

The following table sets forth the various components of our non-interest income for the periods indicated (in thousands):

Six months ended June 30, Increase (Decrease)

2026 2025 Amount Percent

Fiduciary and wealth management $ 6,327 $ 4,868 $ 1,459 30.0 %

Service charges and fees 4,141 4,308 (167) (3.9)

Net gains (losses) on securities (69) 39 (108) (276.9)

Income from company-owned life insurance 4,686 4,175 511 12.2

Bank debit and other card revenue 6,256 5,908 348 5.9

Other non-interest income 5,361 3,602 1,759 48.8

Total $ 26,702 $ 22,900 $ 3,802 16.6 %

Non-interest income increased 16.6% for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

All categories of non-interest income increased except service charges and fees and net (losses) gains on securities increased for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

The increases in income from company-owned life insurance, bank debit and other card revenue and other non-interest income were driven by the LNKB Merger, while the increase in fiduciary and wealth management income was driven by the acquisition of Burke & Herbert Wealth Services, LLC.

The largest percentage increase included a $1.8 million increase in other non-interest income for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, driven by increases in the utilization of services and fees in other non-interest income categories.

The $1.5 million increase in fiduciary and wealth management income was driven by the acquisition of Burke & Herbert Wealth Services, LLC and the corresponding increase in wealth and fiduciary services in connection with such acquisition for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Net (losses) gains on securities decreased $108.0 thousand, and was driven by an increase in sales in our AFS securities portfolio for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Non-interest Expense

The following table sets forth the various components of our non-interest expense for the periods indicated (in thousands):

Six months ended June 30, Increase (Decrease)

2026 2025 Amount Percent

Salaries and wages $ 62,791 $ 42,261 $ 20,530 48.6 %

Pensions and other employee benefits 11,157 9,203 1,954 21.2

Occupancy 10,681 7,566 3,115 41.2

Equipment rentals, depreciation and maintenance 11,122 8,184 2,938 35.9

Core deposit intangible amortization 9,214 8,186 1,028 12.6

ATM, card, and network expense 2,523 2,446 77 3.1

FDIC and other regulatory assessments 2,716 2,002 714 35.7

Other operating 34,683 19,121 15,562 81.4

Total $ 144,887 $ 98,969 $ 45,918 46.4 %

Non-interest expense increased $45.9 million, or 46.4%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Increases were noted in every non-interest expense category and were driven by the effect of the LNKB Merger and merger expenses which included higher legal, consulting, audit, investment banking, software contract terminations, and change-in-control salary and benefit payments for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

The largest dollar increase for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was $20.5 million for salaries and wages, mostly driven by change-in-control salary and benefit payments and a larger company-wide headcount due to the LNKB Merger.

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 $8.5 million for the six months ended June 30, 2026, a decrease of $4.5 million from income tax expense for the six months ended June 30, 2025.

The decrease was due to the decrease in income before income taxes for the six months ended June 30, 2026, when compared to the six months ended June 30, 2025.

For the six months ended June 30, 2026, the effective tax rate was 18.7%, while the effective tax rate was 18.5% for June 30, 2025.

Results of Operations for the Three Months Ended June 30, 2026, and June 30, 2025

Net income applicable to common shares for the three months ended June 30, 2026, was $9.3 million, compared to net income applicable to common shares of $29.7 million during the three months ended June 30, 2025.

The $20.4 million decrease in net income applicable to common shares was primarily the result of an increase in merger-related expenses for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Net interest income increased by $18.8 million to $93.0 million for the three months ended June 30, 2026, compared to $74.2 million for the three months ended June 30, 2025.

The main driver for this increase was the impact of the LNKB Merger which resulted in an increase in the balance of interest-earning assets, in excess of the increase in interest-bearing liabilities.

For the three months ended June 30, 2026, the Company recorded credit provision expense of $1.4 million compared to a provision of $624.0 thousand, which was a small increase compared to the three months ended June 30, 2025.

For the three months ended June 30, 2026, the provision for off-balance sheet credit exposures was $2.2 million, compared to a recovery of $93.0 thousand for the three months ended June 30, 2025.

Non-interest income increased by $1.0 million, or 7.5%, to $13.8 million for the three months ended June 30, 2026, compared to $12.9 million for the three months ended June 30, 2025.

All categories of non-interest income increased except net (losses) gains on securities, primarily due to the impact of the LNKB Merger, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Non-interest expense increased by $44.2 million, or 89.6%, to $93.5 million for the three months ended June 30, 2026, as compared to $49.3 million for the three months ended June 30, 2025.

The increase was primarily due to the effect of the LNKB Merger and included higher legal, consulting, audit, investment banking, software contract terminations, and change-in-control salary and benefit payments for the three months ended June 30, 2026, compared to the three months ended June 30, 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 $93.0 million for the three months ended June 30, 2026, compared to $74.2 million for the three months ended June 30, 2025.

The increase in net interest income was primarily driven by the LNKB Merger and results reflect higher average balances of interest-earning assets in excess of the higher average balances of interest-bearing liabilities.

Accretion income associated with acquired loans totaled $9.3 million for the three months ended June 30, 2026, compared to $11.5 million for the three months ended June 30, 2025.

Amortization expense associated with fair value marks for time deposits, subordinated debt, and trust preferred securities totaled $1.5 million for the three months ended June 30, 2026, compared to $1.4 million for the three months ended June 30, 2025.

The tax-adjusted net interest margin was 4.15% for the three months ended June 30, 2026, compared to 4.17% for the three months ended June 30, 2025.

The decrease in tax-adjusted net interest margin was primarily driven by the LNKB Merger and the acquisition of additional lower yielding loans which led to lower rates on interest-earning assets and lower accretion income when compared to the three months ended June 30, 2025.

The yield for the taxable loan portfolio was 6.54% for the three months ended June 30, 2026, compared to 6.90% for the three months ended June 30, 2025.

The decrease was primarily the result of an increase in the balance of lower yielding loans due to the LNKB Merger, as well as lower accretion income for three months ended June 30, 2026 compared to the three months ended June 30, 2025.

The tax-adjusted yield on the total investment securities portfolio was 4.41% for the three months ended June 30, 2026, compared to 3.95% for the three months ended June 30, 2025.

The increase was due to higher yields in our investment portfolio as well as an increase in balances due to the LNKB Merger for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

The rate on interest-bearing deposits decreased to 2.25% during the three months ended June 30, 2026, from 2.41% during the three months ended June 30, 2025.

The rate on our short-term borrowings for the three months ended June 30, 2026, was 3.64%, compared to 3.91% for the three months ended June 30, 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 rate on our subordinated debt was 9.16% for the three months ended June 30, 2026, compared to 9.62% for the three months ended June 30, 2025.

The following table sets forth the major components of net interest income and the related yields and rates for the three months ended June 30, 2026, and June 30, 2025, for comparison (dollars in thousands).

For the Three Months Ended June 30,

Average Outstanding Balance Interest Income/Expense Average Yield / Rate

Loans, gross (1)(2)

$ 7,156,639 $ 116,770 6.54 % $ 5,627,236 $ 96,803 6.90 %

Tax-exempt loans (1)(2)

4,497 69 6.15 3,737 55 5.90

7,161,136 116,839 6.54 5,630,973 96,858 6.90

Interest-earning deposits and fed funds sold 69,525 569 3.28 81,369 950 4.68

Taxable AFS securities and other securities (3)

1,137,512 11,988 4.23 1,059,310 10,123 3.83

Tax-exempt AFS securities (3)(4)

830,459 9,627 4.65 476,586 4,986 4.20

Total securities 1,967,971 21,615 4.41 1,535,896 15,109 3.95

Total interest-earning assets 9,198,632 139,023 6.06 7,248,238 112,917 6.25

Non-interest-earning assets 811,851 615,947

Total assets $ 10,010,483 $ 7,864,185

Liabilities and shareholders’ equity:

Non-interest-bearing demand $ 1,802,833 $ 1,352,785

Interest-bearing demand 2,706,931 13,194 1.96 % 2,239,100 12,318 2.21 %

Money market & savings

2,106,402 10,252 1.95 1,648,338 8,268 2.01

Brokered CDs & time deposits

1,421,123 11,572 3.27 1,173,213 9,845 3.37

Total interest-bearing deposits 6,234,456 35,018 2.25 5,060,651 30,431 2.41

Total deposits 8,037,289 35,018 1.75 6,413,436 30,431 1.90

Short-term borrowings and other

653,886 5,937 3.64 457,775 4,464 3.91

Subordinated debt borrowings

130,913 2,990 9.16 113,813 2,730 9.62

Total interest-bearing liabilities 7,019,255 43,945 2.51 5,632,239 37,625 2.68

Non-interest-bearing liabilities 124,480 111,394

Equity 1,063,915 767,767

Total liabilities and equity $ 10,010,483 $ 7,864,185

Taxable-equivalent net interest income /net interest spread (5)

95,078 3.55 % 75,292 3.57 %

Taxable-equivalent net interest margin (6)

4.15 % 4.17 %

Taxable-equivalent net adjustment (2,036) (1,059)

Net interest income $ 93,042 $ 74,233

Net interest-earning assets $ 2,179,377 $ 1,615,999

(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.

(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

June 30, 2026 June 30, 2025

GAAP Financial Measurements

Interest income - Loans $ 116,770 $ 96,803

Interest income - Tax-exempt loans 55 43

Interest income - Taxable AFS securities and other securities 11,329 9,303

Interest income - Tax-exempt AFS securities 7,605 3,939

Interest income - Other interest income 1,228 1,770

Total Interest Income 136,987 111,858

Interest expense - Deposits 35,018 30,431

Interest expense - Borrowed funds 5,897 4,438

Interest expense - Subordinated debt 2,990 2,730

Interest expense - Other 40 26

Total interest expense 43,945 37,625

Total net interest income $ 93,042 $ 74,233

Non-GAAP Financial Measurements

Tax benefit on tax-exempt interest income $ 2,036 $ 1,059

Total tax benefit on tax-exempt interest income (1)

Tax-equivalent net interest income $ 95,078 $ 75,292

(1) Tax benefit was calculated using the federal statutory tax rate of 21%.

Yield/Rate and Volume Analysis

Interest income and interest expense for the three months ended June 30, 2026, and June 30, 2025, are annualized using actual days over calendar year method.

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).

Three Months Ended June 30, 2026 vs June 30, 2025

Increase (Decrease) Due to Change in:

Average Volume Average Rate Net Change

Income from the interest-earning assets:

Loans, gross $ 26,408 $ (6,427) $ 19,981

Securities (1)

4,249 2,257 6,506

Interest bearing deposits and fed funds sold (138) (243) (381)

Total interest income on interest-earning assets 30,519 (4,413) 26,106

Expense from the interest-bearing liabilities:

Interest-bearing demand deposits 2,563 (1,687) 876

Money market & savings 2,299 (315) 1,984

Brokered CDs & time deposits 2,081 (354) 1,727

Total interest expense on interest-bearing deposits 6,943 (2,356) 4,587

7 unchanged sentences

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.

Total interest income was $137.0 million for the three months ended June 30, 2026, compared to $111.9 million for the three months ended June 30, 2025, an increase of 22.5%.

The increase in interest income was primarily due to the LNKB Merger and an increase in the balance of interest-earning assets, partially offset by a decrease in accretion income when compared to the three months ended June 30, 2025.

Interest income on loans increased by $20.0 million and interest income on securities increased $5.7 million, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily due to the LNKB Merger.

Accretion income associated with acquired loans totaled $9.3 million for the three months ended June 30, 2026, compared to $11.5 million for the three months ended June 30, 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.

Total interest expense was $43.9 million for the three months ended June 30, 2026, compared to $37.6 million for the three months ended June 30, 2025.

The increase in interest expense was due to results that reflect an increase in interest-bearing liabilities due to the LNKB Merger, partially offset by lower rates on interest-bearing liabilities.

Interest expense on interest-bearing deposits increased by $4.6 million for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, due to higher balances from the LNKB Merger and an increase in deposit gathering.

Interest on subordinated debt was $3.0 million for the three months ended June 30, 2026, compared to $2.7 million for the three months ended June 30, 2025.

Interest expense on short-term borrowings amounted to $5.9 million for the three months ended June 30, 2026, compared to $4.4 million for the three months ended June 30, 2025, due to higher average balances.

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.

The provision for credit losses was $1.4 million for the three months ended June 30, 2026, which was a small increase compared to a provision of $624.0 thousand for the three months ended June 30, 2025.

For the three months ended June 30, 2026, the provision for off-balance sheet credit exposures was $2.2 million, compared to a recovery of $93.0 thousand for the three months ended June 30, 2025.

See Note 4 - Allowance for Credit Losses in Notes to Consolidated Financial Statements for further information.

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,

Three months ended June 30,

Increase (Decrease)

2 unchanged sentences

Service charges and fees 2,286 2,130 156 7.3

Net gains (losses) on securities 1,799 1 1,798 NM

Net gains (losses) on securities (1,868) 38 (1,906) N/M

Income from company-owned life insurance 3,207 2,982 225 7.5

2 unchanged sentences

Total $ 13,849 $ 12,877 $ 972 7.5 %

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 income increased 7.5% for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

The largest dollar and percentage increase was a $1.4 million increase in other non-interest income for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

This increase was driven by an increase in the utilization of services and fees in other non-interest income categories for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Increases in fiduciary and wealth management, service charges and fees, income from company-owned life insurance, bank debit and other card revenue, and other non-interest income exceeded the decline in net (losses) gains on securities for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

The fiduciary and wealth management increase was driven by the acquisition of Burke & Herbert Wealth Services, LLC and increased wealth and fiduciary services performance, while the decrease in net (losses) gains from securities was driven by security sales.

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,

Three months ended June 30,

Increase (Decrease)

9 unchanged sentences

Total $ 93,506 $ 49,305 $ 44,201 89.6 %

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.

Non-interest expense increased $44.2 million, or 89.6%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

The increase was primarily driven by the LNKB Merger and merger expenses which included higher legal, consulting, audit, investment banking, software contract terminations, and change-in-control salary and benefit payments during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

The largest dollar increase for the three months ended June 30, 2026, compared to the three months ended June 30, 2025 was $20.1 million for salaries and wages, mostly driven by change-in-control salary and benefit payments and a larger company-wide headcount, while core deposit intangible amortization increased due to the addition of new intangible assets from the LNKB Merger.

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

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.

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.

Income tax expense was $2.5 million for the three months ended June 30, 2026, a decrease of $4.8 million from the tax expense of $7.3 million for the three months ended June 30, 2025.

The decrease was due to the decrease in income before income taxes for the three months ended June 30, 2026, when compared to the three months ended June 30, 2025.

three months ended June 30, 2026, the effective tax rate was 21.0%, while the effective tax rate was 19.6% for June 30, 2025.

Analysis of Financial Condition for the Period Ended June 30, 2026, and December 31, 2025

Assets increased by $3.1 billion to $11.0 billion as of June 30, 2026, compared to $7.9 billion as of December 31, 2025.

Loans, net of ACL, increased by $2.6 billion from $5.3 billion as of December 31, 2025, to $7.9 billion as of June 30, 2026.

Deposits increased by $2.6 billion and amounted to $9.0 billion at June 30, 2026, compared to $6.4 billion at December 31, 2025.

The increases in these totals are primarily due to the LNKB Merger.

Refer to Note 16 - Business Combination in the Notes to the Consolidated Financial Statements for further information regarding assets and liabilities acquired and assumed.

Short-term borrowings increased by $75.0 million to $525.0 million as of June 30, 2026, compared to $450.0 million at December 31, 2025.

Subordinated debt and subordinated debt owed to unconsolidated subsidiary trusts, increased by $64.7 million primarily due to subordinated debt assumed in the LNKB Merger, and totaled $152.2 million at June 30, 2026, compared to $87.5 million at December 31, 2025.

Investment Securities

5 unchanged sentences

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.

During the six months ended June 30, 2026, the unrealized losses on our holdings increased $2.4 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.

Therefore, the Company has concluded that the unrealized losses for the AFS securities do not require an ACL at June 30, 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

The following tables reflect the amortized cost and fair market values for the total portfolio for each category of investment for June 30, 2026, and December 31, 2025 (in thousands):

June 30, 2026

Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value

21 unchanged sentences

$ 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 investment maturity table below summarizes contractual maturities for our investment securities at June 30, 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 overall weighted average duration of the Company’s investment portfolio is 4.4 years at June 30, 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

June 30, 2026

One Year or Less One to Five Years Five to Ten Years After Ten Years Total

16 unchanged sentences

The following tables set forth the composition of our loan portfolio as of the dates indicated (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

8 unchanged sentences

(94,470) (67,823)

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 loan portfolio, excluding ACL, at June 30, 2026, increased by $2.6 billion from December 31, 2025, primarily due to the completion of the LNKB Merger.

The following table shows the maturity distribution for total loans outstanding as of June 30, 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

June 30, 2026

Within One Year One Year to Five Years Five Years to 15 Years After 15 Years

15 unchanged sentences

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.

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

Driven primarily by the LNKB Merger, the Company’s nonaccrual loan balances increased by $17.8 million from December 31, 2025, while the Company’s loans 90 days past due and still accruing increased $3.3 million from December 31, 2025.

Primarily due to the LNKB Merger, 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 June 30, 2026, totaled $98.2 million, an increase of $21.3 million from $76.9 million at December 31, 2025.

The following table summarizes the Company’s non-performing assets as of June 30, 2026, and December 31, 2025 (in thousands):

June 30, 2026 December 31, 2025

Non-accrual loans $ 88,388 $ 70,613

4 unchanged sentences

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.

Refer to the discussion in Note 4 — Allowance for Credit Losses 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.

3 unchanged sentences

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.

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

The Company recorded a total provision expense of $1.4 million and $624.0 thousand for the three months ended June 30, 2026, and June 30, 2025, respectively, and a total provision expense of $1.4 million and $1.1 million for the six months ended June 30, 2026, and June 30, 2025, respectively.

During the six months ended June 30, 2026, the Company recorded a $5.3 million provision directly to the allowance for credit losses to establish an allowance for acquired PCD loans.

This allowance for acquired PCD loans did not result in an additional provision expense for the six months ended June 30, 2026.

Gross charged-off loans were $1.4 million and $1.5 million for the three months ended June 30, 2026, and June 30, 2025, respectively and $1.9 million and $3.0 million for the six months ended June 30, 2026, and June 30, 2025, respectively.

Gross recoveries totaled $274.0 thousand and $326.0 thousand for the three months ended June 30, 2026, and June 30, 2025, respectively and $653.0 thousand and $563.0 thousand for the six months ended June 30, 2026, and June 30, 2025, respectively.

The ACL as a percentage of gross loans, net of unearned income, was 1.18% and 1.20% as of June 30, 2026, and June 30, 2025, respectively.

The following table summarizes the changes in the Company’s credit loss experience by portfolio for the three and six months ended June 30, 2026, and 2025 (dollars in thousands):

Three months ended Six months ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Loans outstanding at end of period $ 7,999,765 $ 5,590,457 $ 7,999,765 $ 5,590,457

Balance of allowance at beginning of period (67,955) (67,753) (67,823) (68,040)

Allowance established for acquired PCD Loans — —

Allowance established for acquired loans (28,507) — (28,507) —

Loans charged-off:

21 unchanged sentences

Net charge-offs to average outstanding loans during the period (2)

0.02 0.02 0.02 0.04

Allowance for credit losses as a percentage of non-performing loans (3)

99.12 78.63 99.12 78.63

(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.

1 unchanged sentence

(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.

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

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 June 30, 2026, and December 31, 2025 (dollars in thousands).

June 30, 2026

Allowance for credit losses Percent of Allowance in Each Category to Total Allocated ACL Percent of Loans in Each Category to Total Loans

33 unchanged sentences

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.

As of June 30, 2026, the Company has available unused borrowing capacity of $6.0 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

The following table shows certain information regarding short-term borrowings as of the three months ended June 30, 2026, and December 31, 2025, respectively (dollars in thousands):

Balance at end of period June 30, 2026 December 31, 2025

Short-term borrowings $ 525,000 $ 450,000

Weighted average interest yield

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

Weighted average interest rate at end of period 3.64% 3.90%

The following table shows certain information regarding long-term debt as of the three months ended June 30, 2026, and December 31, 2025, respectively (dollars in thousands):

Balance at end of period June 30, 2026 December 31, 2025

Subordinated debentures, net $ 134,789 $ 70,222

1 unchanged sentence

Total long-term debt $ 152,183 $ 87,490

Weighted average interest yield 10.46% 9.85%

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.

Weighted average interest rate at end of period 9.16% 9.85%

Total deposits increased by $2.6 billion from December 31, 2025, to June 30, 2026, primarily as a result of the LNKB Merger and an increase in brokered deposits of $56.3 million.

The Company’s brokered time deposits amounted to $120.7 million as of June 30, 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.

Excluding the brokered deposit balance, the total deposit balance increased by $2.5 billion from December 31, 2025 to June 30, 2026.

The following table sets forth the balance of each category of deposits as of the dates indicated (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

9 unchanged sentences

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.

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

The Company has deposits that meet or exceed the FDIC insurance limit of $250,000 in the amounts of $3.2 billion and $2.1 billion at June 30, 2026, and December 31, 2025, respectively.

The Company does not have material deposit concentration risk to any significant market, industry or individual at June 30, 2026 or December 31, 2025.

The following table sets forth maturity ranges of time deposits as of June 30, 2026, that exceed the FDIC insurance limit (in thousands).

June 30, 2026

Due within 3 months or less $ 205,453

4 unchanged sentences

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.

Total shareholders’ equity at June 30, 2026, was $1.2 billion, compared to $854.6 million at December 31, 2025.

Shareholders’ equity increased by $347.5 million mostly due to common stock issuances from the LNKB Merger since December 31, 2025.

Retained earnings increased by $16.8 million from December 31, 2025, to June 30, 2026, primarily due to net income attributable to common shareholders of $36.4 million which was partially offset by dividends to common shareholders of $19.4 million.

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis