Central Bancompany, Inc. 10-K

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis should be read in conjunction with the consolidated financial statements and related notes included in Part I, Item 8 in this Annual Report on Form 10-K for the year ended December 31, 2025. We make statements in this section that are forward-looking statements within the meaning of the federal securities laws. All of such forward-looking statements are expressly qualified by reference to the cautionary statements provided under the caption "Cautionary Note Regarding Forward-Looking Statements" included Part I of this Annual Report on Form 10-K. Furthermore, a number of known and unknown factors may cause our actual results, performance or achievements to differ materially from those expressed or implied by the following discussion. Therefore, you are encouraged to read in its entirety the information provided under the caption "Item IA, Part I — Risk Factors" included in this report for a discussion of risk factors that may negatively impact our expected results, performance, or achievements discussed below. Non-GAAP Financial Measures In addition to financial measures presented in accordance with U.S. GAAP, this document contains non-GAAP financial measures where management believes it to be helpful in understanding our results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found herein. Tax Equivalent Presentation Interest income, yields, and ratios on an FTE basis are considered non-GAAP financial measures. Management believes net interest income on an FTE basis provides an insightful picture of the interest margin for comparison purposes. The FTE basis also allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The FTE basis assumes a blended federal and state effective marginal tax rate of 23.84% for all periods. We encourage readers to consider the Consolidated Financial Statements and other financial information contained in this Annual Report on Form 10-K in their entirety, and not to rely on any single financial measure. Overview We are a bank holding company headquartered in Jefferson City, Missouri. Through our full-service community banking subsidiary, The Central Trust Bank, we provide a comprehensive suite of consumer, commercial and wealth management products and services to our communities primarily in Missouri, Kansas, Oklahoma and Colorado. As of December 31, 2025, we operate 155 full-service branch locations. We are a community bank organized around our 11 Primary Markets, serving 79 communities. Our business is predominantly located in Missouri, a state known for its business-friendly environment, diversified and stable markets, favorable tax regime and convenient location in the central U.S., making it a hub for industries such as transportation, logistics and trade. We have a highly diversified loan and lease portfolio that has demonstrated steady growth through multiple economic cycles. In addition, we provide a full range of deposit products to individuals, businesses, governments and community organizations, serving as a primary funding source for the Bank. We operate our business through three operating segments: Consumer Banking, Commercial Banking and Wealth Management. Consumer Banking serves the holistic financial service needs of individuals, providing a full set of deposit products, state-of-the-art digital banking solutions, a range of consumer lending solutions, including home equity lines of credit, and a credit card portfolio. Commercial Banking provides full-service relationship banking solutions to businesses, agencies and community organizations. Wealth Management provides a full range of “fee-only” wealth management solutions, including investment management, fiduciary services, financial, estate, and tax planning services to individuals, businesses, and foundations. 55 Recent Developments Reclassification and Initial Public Offering On April 28, 2025, our amended Articles became effective, pursuant to which we (i) increased the number of authorized shares of our capital stock to 600,000,000, consisting of 500,000,000 shares of Class A common stock, 50,000,000 shares of Class B common stock, and 50,000,000 shares of preferred stock, (ii) decreased the par value of each class of our capital stock to $0.01 per share and (iii) automatically reclassified and converted each share of Class B common stock then outstanding (excluding treasury stock) into one share of Class A common stock. The effect of the Reclassification on outstanding shares and per share figures has been retroactively applied to all periods presented. See “Note 20, Capital Structure, Share Reclassification, Stock Split Effective in the Form of a Stock Dividend,” to our audited consolidated financial statements in this Annual Report on Form 10-K. On October 9, 2025, the Company declared a 50-for-1 stock split of the Company’s common stock in the form of a stock dividend, entitling each shareholder of record to receive 49 additional shares of common stock for every one share owned. The record date for the stock dividend is October 20, 2025, with a distribution date for the new shares of October 24, 2025. The par value per share of our common stock remains $0.01 per share. The effect of the stock split on outstanding shares and per share figures has been retroactively applied to all periods presented. See “Note 20, Capital Structure, Share Reclassification, Stock Split Effective in the Form of a Stock Dividend,” to our audited consolidated financial statements in this Annual Report on Form 10-K. On November 19, 2025, in connection with its IPO, the Company completed an offering of 17,778,000 shares of Class A common stock at a public offering price of $21.00 per share. On December 3, 2025, the underwriters exercised their option to purchase an additional 2,666,700 shares of Class A common stock at the same offering price. The Company received total net proceeds of approximately $403.1 million, after deducting underwriting discounts, commissions, and estimated offering expenses. The Company’s common stock is currently listed on the Nasdaq Stock Market under the ticker symbol “CBC.” 56 Results of Operations The following table presents selected financials from our income statement and the performance ratios discussed below. For the year ended December 31, 2025 2024 Income Statement Data: (dollars in thousands, except per common share data and other information) Net interest income $ 789,665 $ 687,324 Net interest income (FTE) 1, 2 795,883 693,185 Provision for credit losses 9,311 14,587 Noninterest income 231,694 210,390 Adjusted noninterest income 1 252,117 247,051 Noninterest expense 505,490 489,407 Income tax expense 115,705 87,910 Net income 390,853 305,810 Adjusted net income 1 402,603 333,731 Earnings per Common Share Earnings per share - diluted $ 1.75 $ 1.39 Adjusted earnings per share - diluted 1 $ 1.81 $ 1.51 Performance Ratios: Net interest margin 4.30 % 3.84 % Net interest margin (FTE) 1, 2 4.33 % 3.88 % Return on average total assets 2.03 % 1.63 % Adjusted return on average total assets 1 2.09 % 1.78 % Return on average common equity 1 11.9 % 10.4 % Adjusted return on average common equity 1 12.3 % 11.4 % Return on average tangible common equity 1 13.4 % 11.9 % Adjusted return on average tangible common equity 1 13.8 % 13.0 % Fee income ratio 22.7 % 23.4 % Adjusted fee income ratio 1 24.2 % 26.4 % Efficiency ratio 49.5 % 54.5 % Efficiency ratio (FTE) 1 47.9 % 51.7 % Effective tax rate 22.8 % 22.3 % 1 These are non-GAAP financial measures. For more information on these financial measures, including a reconciliation of the most directly comparable GAAP financial measures, see "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures Reconciliations" in this Annual Report on Form 10-K.. 2 Fully-tax equivalent basis. • GAAP net income of $390.9 million, or $1.75 per fully diluted share, compared to $305.8 million and $1.39 in the prior year. • Adjusted net income 1 of $402.6 million , or $1.81 per fully diluted share, compared to $333.7 million and $1.51 per fully diluted share in the prior year. • End-of-period total deposits of $15.9 billion, an increase of $0.9 billion or 5.9% growth from the prior year. • ROAA of 2.03% ; Adjusted ROAA 1 of 2.09% , compared to ROAA of 1.63% and Adjusted ROAA 1 of 1.78% in the prior year. • Efficiency ratio 1 of 49.5% ; Adjusted efficiency ratio 1 of 47.9% , compared to 54.5% and 51.7% respectively in the prior year. 57 Net Interest Income and Net Interest Margin The following table summarizes the distribution of average balances, average yields and costs (on an annualized basis for interim periods), and changes in net interest income on an FTE basis. Average balances are daily average balances and include nonaccrual loans. The table below includes the effect of deferred fees and expenses, discounts and premiums, as well as purchase accounting adjustments that are amortized or accreted to interest income or expense. For the year ended December 31, 2025 2024 Average Balance Interest (FTE) 1 Yield / Cost Average Balance Interest (FTE) 1 Yield / Cost (dollars in thousands) Assets Interest-bearing cash and bank deposits $ 937,455 $ 41,963 4.48 % $ 844,259 $ 46,942 5.56 % Investment securities 5,973,167 239,021 4.00 % 5,454,694 153,137 2.81 % Gross loans 2, 3 11,452,619 715,182 6.24 % 11,586,553 710,759 6.13 % Total interest-earning assets 18,363,241 996,166 5.42 % 17,885,506 910,838 5.09 % Allowance for loan losses (151,175) (154,674) Noninterest-earning assets 1,087,993 1,050,386 Total assets $ 19,300,059 $ 18,781,218 Liabilities and Stockholders' Equity Noninterest-bearing deposits $ 5,229,143 - – % $ 5,180,962 - – % Savings & interest-bearing deposits 7,934,637 122,571 1.54 % 7,840,224 132,806 1.69 % Time deposits 1,690,034 52,629 3.11 % 1,658,155 57,626 3.48 % Total deposits 14,853,814 175,200 1.18 % 14,679,341 190,432 1.30 % Federal funds purchased and customer repurchase agreements 1,013,959 25,083 2.47 % 993,284 27,221 2.74 % Total customer funds 15,867,773 200,283 1.26 % 15,672,625 217,653 1.39 % FHLB advances and other borrowings - - – % - - – % Total interest-bearing liabilities 10,638,630 200,283 1.88 % 10,491,663 217,653 2.07 % Total cost of funds 15,867,773 200,283 1.26 % 15,672,625 217,653 1.39 % Noninterest-bearing liabilities 147,099 170,618 Stockholders' equity 3,285,187 2,937,975 Total liabilities and stockholders' equity $ 19,300,059 $ 18,781,218 Net interest spread 3.54 % 3.02 % Net interest income (FTE) 1 and net interest margin (FTE) 1 795,883 4.33 % 693,185 3.88 % Less: Tax equivalent adjustment 6,218 5,861 Net interest income and net interest margin $ 789,665 4.30 % $ 687,324 3.84 % 1 These are non-GAAP financial measures. For more information on these financial measures, including a reconciliation of the most directly comparable GAAP financial measures, see "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures Reconciliations" in this Annual Report on Form 10-K. ² Loan balances include mortgage loans held for sale of $54.1 million and $34.3 million as of December 31, 2025 and 2024, respectively, and nonaccrual loans of $44.7 million and $36.0 million as of December 31, 2025 and 2024, respectively. ³ Loan interest income includes loan fees, net of deferred costs, of $10.2 million, $8.4 million for the years ended December 31, 2025 and 2024, respectively and interest resulting from the accretion of purchase accounting discount associated with acquired loans of $1.1 million and $1.7 million for the same periods, respectively. Net interest income totaled $789.7 million in 2025, an increase of $102.3 million, or 14.9%, compared to $687.3 million in 2024. On an FTE basis, net interest income (FTE) (non-GAAP) increased to $795.9 million from $693.2 million, an increase of 14.8%. Our net interest margin increased 46 basis points to 4.30% during 2025 compared to 2024, as yields continued to improve on assets, including a change in mix reducing cash and increasing investments, paired with reduced costs on deposits. Our net interest margin (FTE) (non-GAAP) increased to 4.33% in 2025, compared to 3.88% for the same period in 2024. 58 Total interest income was $989.9 million in 2025, an increase of $85.0 million, or 9.4%, compared to $905.0 million for the same period in 2024. On an FTE basis, total interest income (FTE) (non-GAAP) was $996.2 million for 2025, an increase of $85.3 million, or 9.4%, compared to $910.8 million in the prior year. The increase was primarily due to the repositioning of the investment portfolio, from lower-yielding bonds to higher-yielding investments at higher market rates, contributing $85.9 million of the increase, along with an increase in loan interest income mainly due to the upward repricing of loans, partially offset by a reduction in interest income on cash, resulting from rate cuts by the Federal Reserve which began in the third quarter of 2024. Interest expense decreased $17.4 million, or 8.0% for 2025, compared to 2024. The decrease was primarily driven by lower interest rates on savings and interest-bearing demand deposits, which contributed $10.2 million of the reduction. Interest expense also declined across time deposits and federal funds purchased and customer repurchase agreements as funding costs repriced downward following interest rate cuts implemented by the Federal Reserve beginning in 2024. Overall, the decrease reflects the impact of a lower interest rate environment on interest‑bearing liabilities. The decline was consistent with broader market repricing trends and reflects the sensitivity of interest‑bearing liabilities to changes in short‑term benchmark rates. The table below identifies changes related to volumes (average balances) and rates on our net interest income during the period shown, with respect to (i) changes in volume (change in volume times old rate), (ii) changes in rates (change in rate times old volume) and (iii) changes in rate / volume (change in rate times the change in volume, including difference in the number of days). Any change in interest not due solely to volume or rate has been allocated in proportion to the respective absolute dollar amounts of the change in volume or rate. For the year ended December 31, 2025 vs 2024 Volume Rate Total Increase (decrease) in interest income: (dollars in thousands) Cash and cash equivalents $ 4,776 $ (9,755) $ (4,979) Investment securities 15,570 70,314 85,884 Loans (8,977) 13,400 4,423 Total increase (decrease) 11,369 73,959 85,328 Increase (decrease) in interest expense: - - - Savings & interest-bearing deposits 1,541 (11,776) (10,235) Time deposits 1,067 (6,064) (4,997) Federal funds purchased and customer repurchase agreements 545 (2,683) (2,138) FHLB advances and other borrowings - - - Total increase (decrease) 3,153 (20,523) (17,370) Increase (decrease) in net interest income (FTE) $ 8,216 $ 94,482 $ 102,698 Provision for Credit Losses The provision for credit losses, including provision for off-balance sheet credit exposures, was $9.3 million for the year ended December 31, 2025, a decrease of $5.3 million, or 36.2% year over year. The decrease was primarily due to a $5.0 million release related to the sale of the consumer lease portfolio, along with a decline in loan balances in 2025 as compared to loan growth in the prior year. A decrease in the liability for unfunded lending commitments also contributed to the decline in provision for credit loss expense in 2025. 59 Noninterest Income The following table presents noninterest income for the years ended December 31, 2025 and 2024. For the year ended December 31, 2025 2024 Noninterest income: (dollars in thousands) Service charges and commissions $ 57,631 $ 56,137 Payment services revenue 67,570 67,531 Brokerage services 28,696 25,739 Fees for fiduciary services 51,954 45,897 Mortgage banking revenue 39,571 42,080 Investment securities (losses), net (6,811) (36,661) Other income (6,917) 9,667 Total noninterest income 231,694 210,390 Less: Loss on sale of consumer lease portfolio (13,612) - Less: Investment securities (losses) (6,811) (36,661) Adjusted noninterest income 1 $ 252,117 $ 247,051 1 This is a non-GAAP financial measure. For more information on this financial measure, including a reconciliation of the most directly comparable GAAP financial measure, see "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures Reconciliations" in this Annual Report on Form 10-K. Noninterest income was $231.7 million in fiscal year 2025, an increase of $21.3 million, or 10.1%, compared to $210.4 million fiscal year 2024. The increase was primarily due to a 12.6%, or $9.0 million, increase in total brokerage services and fees for fiduciary services driven by 18.0% growth in total assets under advice, along with a change in fee structure in the second half of 2024, and increased service charges and commissions. Significant components of noninterest income are described in further detail below. See “Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures Reconciliations,” in this Annual Report on Form 10-K. Service charges and commissions. Service charges and commissions are primarily fees charged to deposit customers, including overdraft/non-sufficient funds fees, return fees, wire fees, commercial deposit account analysis fees, and other charges or commissions. Service charges and commissions increased $1.5 million, or 2.7%, to $57.6 million in 2025, compared to the same period in 2024. The increase was primarily driven by growth in treasury management commercial account analysis fee income, along with overdraft/non-sufficient funds fees. Payment services revenue. Payment services revenue includes incentive and interchange revenue that merchants pay for processing electronic payment transactions and associated fees earned from the issuance of credit and debit card products, both consumer and business, along with health savings accounts, gift cards, and ATM service fees. Payment services revenue increased $0.1 million, or 0.1%, to $67.6 million in 2025, compared to the same period in 2024. The increase in 2025 compared to 2024 is the result of higher consumer credit and debit card fee income, partially offset by reduced commercial products fee income. Brokerage services and fees for fiduciary services. Brokerage services and fees for fiduciary services relate to our wealth management services and comprise of fees earned for management of trust assets and investment services. Brokerage services increased $3.0 million, or 11.5%, to $28.7 million in 2025, compared to 2024. The increase is driven by 12.2% growth in assets under advice. Fees for fiduciary services increased 13.2%, or $6.1 million, to $52.0 million for the same period. The increase was primarily driven by a change in fee structure in the second half of 2024 along with 20.8% growth in assets under advice. Mortgage banking revenue . Mortgage banking revenue includes both the net gain on mortgage loans sold to the secondary market and mortgage servicing income for mortgage loans sold with servicing retained by the Bank. The net gain on the sale of mortgage loans fluctuates with the volume of loans sold, the type of loans sold and market conditions, such as the current interest rate environment. The volume of loans that we sell depends upon conditions in the mortgage origination, loan securitization and secondary loan sale markets. Mortgage banking revenues, net decreased $2.5 million, or 6.0%, to $39.6 million in fiscal year 2025, compared to 2024. The decrease includes a reduction in mortgage servicing income of $0.6 million, or 4.8%, along with a decline in gain on the sale of mortgage loans of $1.9 million or 6.5%. 60 Other income. Other income includes bank owned life insurance income, check commission, gain on sale of assets, and other miscellaneous income items. Other income decreased $16.6 million, or 171.6%, to $6.9 million in 2025, compared to the same period in 2024. The decrease was driven by the loss on the sale of the consumer lease portfolio, along with a reduction in net gains on the sale of assets in 2025 compared to 2024. Investment securities losses (gains), net. Net loss or gain on sale of securities represents the difference between gross sale proceeds and carrying value at amortized cost of investment securities sold during the period. We had a net loss of $6.8 million in fiscal year 2025 compared to a $36.7 million net loss in fiscal year 2024. Noninterest Expense The following table presents the major components of our noninterest expense for years ended December 31, 2025 and 2024: For the year ended December 31, 2025 2024 Noninterest expense: (dollars in thousands) Salaries and employee benefits $ 298,080 $ 281,087 Net occupancy and equipment 48,990 47,131 Computer software and maintenance 22,556 20,318 Marketing and business development 20,670 19,990 Legal and professional fees 22,403 26,290 Bankcard processing, rewards and related cost 30,747 32,002 Other expenses 62,044 62,589 Total noninterest expense $ 505,490 $ 489,407 Total noninterest expense was $505.5 million for the year ended December 31, 2025, an increase of $16.1 million, or 3.3%, compared to $489.4 million in 2024. The increase was primarily due to increases in salaries and employee benefits, net occupancy and equipment, computer software and maintenance, and marketing and business development, partially offset by reductions in legal and professional fees, bankcard processing, rewards and related costs, and other expenses. Salaries and Employee Benefits. Salaries and employee benefits is the largest component of noninterest expenses and includes the cost of bonus and incentive compensation, payroll taxes, benefit plans, and health insurance. These expenses were $298.1 million in 2025, an increase of $17.0 million, or 6.0%, compared to $281.1 million for the same period in 2024. The increase was primarily due to annual merit increases, increased staffing and commissions. Full-time equivalent employees totaled 2,905 at December 31, 2025, compared to 2,938 at December 31, 2024. Net Occupancy and Equipment. Net occupancy and equipment expenses were $49.0 million for fiscal year 2025, an increase of $1.9 million, or 3.9%, compared to $47.1 million for the same period in 2024. Computer Software and Maintenance. Computer software and maintenance includes payments to outside vendors who provide software, technology services, costs related to supporting and developing cloud-based activities and depreciation of bank-owned software and hardware. Computer software and maintenance increased $2.2 million, or 11.0%, in 2025, compared to the same period in 2024. The increase was driven by continued investment in technology to support both consumer and commercial products, along with a new core banking platform. Marketing and Business Development. Marketing and business development expenses include marketing, advertising, public relations and business development related expenses. These expenses were $20.7 million for fiscal year 2025, an increase of $0.7 million, or 3.4%, compared to $20.0 million for the same period in 2024. The increase was primarily due to the launch of a new branding campaign, customer referrals, and at the end of 2024, we started to expense postage directly related to marketing efforts in marketing and business development expenses rather than other expenses. Legal and Professional Fees. Legal and professional fees include legal fees, consultant fees, audit fees, and other outside services. Legal and professional fees were $22.4 million in 2025, a decrease of $3.9 million, or 14.8%, compared to $26.3 million for the same period in 2024. The decrease was primarily driven by professional outsourced services to support the initial phase of the conversion of our core banking platform. Bankcard Processing, Rewards and Related Costs. Bankcard processing, rewards and related costs decreased $1.3 million, or 3.9% for the year ended 2025, compared to the same period in 2024. The decrease was driven by the conversion to a different debit card processor at the end of the first quarter in 2024, resulting in reduced expenses. 61 Other Expenses. Other expenses include various items such as amortization of originated mortgage servicing rights, amortization of intangible assets, FDIC insurance, bank exam fees, printing, telecommunications, postage, travel, meetings, dues, memberships, subscriptions, contributions, losses due to fraud, correspondent bank service charges, other insurance expenses, director fees, and other miscellaneous expenses. Other expenses decreased $0.5 million, or 0.9%, to $62.0 million in 2025, compared to the same period in 2024. The decrease includes reductions in consumer and commercial fraud, and amortization of intangible assets and OMSRs, along with printing, telecommunication and postage as a result of the postage expense directly related to marketing efforts reported in marketing and business development expenses rather than other expenses starting at the end of 2024. Income Taxes The provision for income taxes varies due to the amount of taxable income, the investments in tax-advantaged securities and loans, tax credits and the rates charged by federal and state authorities in which we do business. The income tax expense of $115.7 million in fiscal year 2025 represents an effective tax rate of 22.8%, compared with $87.9 million, or 22.3%, in fiscal year 2024. The increase in the effective tax rate was primarily due to a reduction in the amount of state tax credits received from tax credit partnerships and increases from certain costs that are no longer deductible as a result of being a public company. Discussion and Analysis of Business Segments The Company has strategically aligned its operations into the following three reportable segments: Consumer Banking, Commercial Banking and Wealth Management (collectively, the “Business Segments”). The Chief Executive Officer regularly evaluates Business Segment financial results produced by the Company’s internal reporting system in deciding how to allocate resources and assess performance for individual Business Segments. The management accounting system assigns balance sheet and income statement items to each Business Segment using methodologies that are refined on an ongoing basis. See "Note 1, Summary of Significant Accounting Policies,” and "Note 19, Business Segment Reporting," to our consolidated financial statements in this Annual Report on Form 10-K. Segment Income Statement Consumer Commercial Wealth Management Segment Totals Corp / Other Total Year Ending December 31, 2025 (dollars in thousands) Net interest income $ 315,068 $ 436,212 $ (75) $ 751,205 $ 38,460 $ 789,665 Provision for credit losses¹ 4,402 3,754 (4) 8,152 1,159 9,311 Net interest income after provision for credit losses 310,666 432,458 (71) 743,053 37,301 780,354 Noninterest income¹ 111,268 42,869 77,360 231,497 197 231,694 Noninterest expense 243,012 159,151 52,168 454,331 51,159 505,490 Income before income taxes 1 178,922 316,176 25,121 520,219 (13,661) 506,558 Income taxes 42,886 73,155 6,049 122,090 (6,385) 115,705 Net income 1 $ 136,036 $ 243,021 $ 19,072 $ 398,129 $ (7,276) $ 390,853 Year Ending December 31, 2024 Net interest income $ 276,775 $ 403,079 $ (250) $ 679,604 $ 7,720 $ 687,324 Provision for credit losses 11,640 3,359 2 15,001 (414) 14,587 Net interest income after provision for credit losses 265,135 399,720 (252) 664,603 8,134 672,737 Noninterest income 124,854 43,334 69,212 237,400 (27,010) 210,390 Noninterest expense 242,560 148,737 46,863 438,160 51,247 489,407 Income before income taxes 147,429 294,317 22,097 463,843 (70,123) 393,720 Income taxes 35,260 67,799 5,306 108,365 (20,455) 87,910 Net income $ 112,169 $ 226,518 $ 16,791 $ 355,478 $ (49,668) $ 305,810 2025 vs 2024 Increase (decrease) in net income - amount $ 23,867 $ 16,503 $ 2,281 $ 42,651 $ 42,392 $ 85,043 Increase (decrease) in net income - percent 21.3 % 7.3 % 13.6 % 12.0 % 85.4 % 27.8 % ¹ Consumer includes a $13.6 million loss on the sale of the consumer lease portfolio recognized in other noninterest income and a $5.0 million release of provision. Net of taxes, at a tax rate of 23.84%, the total impact to net income was $6.6 million. 62 Consumer Banking Operating Results The Consumer Banking operating segment is designed to serve the holistic financial service needs of individuals within our footprint through the Bank. We provide a comprehensive suite of offerings, including a full set of deposit products, state-of-the-art digital banking solutions, a range of consumer lending solutions, including home equity lines of credit, and a credit card portfolio. Our leading mortgage operation delivers both standard mortgages with in-house servicing, typically sold to Freddie Mac, Fannie Mae, Ginnie Mae, or private investors. The following table presents the selected financials of Consumer Banking as of, and for the years ended December 31, 2025 and 2024, respectively. As of, and for the year ended December 31, 2025 2024 Consumer (dollars in thousands) Net interest income $ 315,068 $ 276,775 Provision for credit losses 4,402 11,640 Net interest income after provision for credit losses 310,666 265,135 Noninterest income 111,268 124,854 Noninterest expense 243,012 242,560 Income before income taxes 178,922 147,429 Income taxes 42,886 35,260 Net income $ 136,036 $ 112,169 Fee income ratio 26.1 % 31.1 % Cost of deposits 0.96 % 0.99 % Average assets $ 3,459,866 $ 3,384,319 Average loans 3,150,601 3,243,672 Average deposits 7,751,789 7,580,903 Average equity $ 426,941 $ 437,769 ¹ Consumer includes a $13.6 million loss on the sale of the consumer lease portfolio recognized in other noninterest income and a $5.0 million release of provision. Net of taxes, at a tax rate of 23.84%, the total impact to net income was $6.6 million. For the year ended December 31, 2025, Consumer Banking net income increased $23.9 million, or 21.3%, to $136.0 million compared to the same period in 2024. The increase was primarily driven by a 14% rise in net interest income, reflecting higher funds transfer pricing on deposits as rates assigned to non-maturity deposits increased in 2025 compared to the same period in 2024, along with deposit growth, partially offset by losses in the consumer lease portfolio. Commercial Banking Operating Results The Commercial Banking operating segment is designed to provide full-service relationship banking solutions to businesses, agencies and community organizations within our footprint through the Bank. Our long-tenured commercial lending teams originate loans to finance a wide range of our customers’ needs, including commercial, small business and government segments, while striving to maintain conservative underwriting standards. Our deposit and cash management solutions feature a full suite of digital-first tools, treasury management services, and innovative payment and card solutions to complement our comprehensive deposit offerings. 63 The following table presents the selected financials of Commercial Banking as of, and for the years ended December 31, 2025 and 2024, respectively. As of, and for the year ended December 31, 2025 2024 Commercial (dollars in thousands) Net interest income $ 436,212 $ 403,079 Provision for credit losses 3,754 3,359 Net interest income after provision for credit losses 432,458 399,720 Noninterest income 42,869 43,334 Noninterest expense 159,151 148,737 Income before income taxes 316,176 294,317 Income taxes 73,155 67,799 Net income $ 243,021 $ 226,518 Fee income ratio 8.9 % 9.7 % Cost of deposits 1.38 % 1.58 % Average assets $ 8,476,529 $ 8,509,049 Average loans 8,286,918 8,326,312 Average deposits 7,297,301 7,300,206 Average equity $ 1,109,982 $ 1,121,760 For the year ended December 31, 2025, Commercial Banking net income increased $16.5 million, or 7.3%, to $243,021 compared to the same period in 2024. The increase was primarily due to increased net interest income of 8% driven by an increase in the FTP paid on deposits, and deposit costs reduced 20 basis points to 1.38% in 2025, compared to 2024, partially offset by 7% growth in expenses. Wealth Management Operating Results The Wealth Management operating segment provides a full range of “fee-only” wealth management solutions, including investment management, fiduciary services, financial, estate, and tax planning services to individuals, businesses, and foundations. Services are provided through Central Trust Company and Central Investment Advisors, both divisions of the Bank. Wealth management services tailored to individuals include trust and estate advisory services and financial planning. Business services include financial planning, business succession planning, and retirement plan services. Services for foundations include assistance with endowment management, grant applications and foundation management. The following table presents the selected financials of Wealth Management as of, and for the years ended December 31, 2025, and 2024, respectively. As of, and for the year ended December 31, 2025 2024 Wealth Management (dollars in thousands) Net interest (loss) $ (75) $ (250) Provision for credit losses (4) 2 Net interest (loss) after provision for credit losses (71) (252) Noninterest income 77,360 69,212 Noninterest expense 52,168 46,863 Income before income taxes 25,121 22,097 Income taxes 6,049 5,306 Net income $ 19,072 $ 16,791 Average assets $ 17,088 $ 22,379 Average loans 72 204 Average equity 13,374 13,751 Assets under advice $ 15,956,069 $ 13,527,632 64 For the year ended December 31, 2025, Wealth Management net income increased $2.3 million, or 13.6%, to $19.1 million compared to the same period in 2024. The increase was primarily driven by 12% growth in noninterest income as the result of growth in assets under advice along with fee increases in the second half of 2024, partially offset by 11% increase in expenses driven by increased staffing and commissions, net occupancy and equipment, and other expenses. End-of-period assets under advice grew 18.0%, or $2.4 billion, from December 31, 2024 to December 31, 2025. The increase includes growth in Central Investment Advisors’ assets under advice of $542 million, or 12%, and 21%, or $1,886 million in Central Trust Company’s assets under advice. The growth in Central Trust assets under advice includes approximately 16% growth from improvements in the market and 5% growth from net organic growth. Corporate / Other Operating Results The "Corporate / Other" includes activity not related to the segments, such as administrative functions, various support and overhead operating units of the Company. Corporate administrative functions such as Compliance, Finance, Credit Administration, Human Resources, and our Central Technology Services team expenses are allocated to the segments. These expenses will be reflected in "Corporate / Other" with the offset in allocated expenses. Expenses for the parent company, the administrative and support functions within the markets not specific to a segment, regulatory expenses, director and shareholder costs, community outreach, and other similar expenses are not allocated to the segments. In addition, "Corporate / Other" includes unallocated bank balances including the investment securities portfolio, cash held at the federal reserve, eliminations, and other items not allocated to the segments. The following table presents the selected financials of Corporate / Other as of, and for the years ended December 31, 2025 and 2024, respectively. As of, and for the year ended December 31, 2025 2024 Corporate / Other (dollars in thousands) Net interest income $ 38,460 $ 7,720 Provision for credit losses 1,159 (414) Net interest income after provision for credit losses 37,301 8,134 Noninterest income 197 (27,010) Noninterest expense 51,159 51,247 Income before income taxes (13,661) (70,123) Income taxes (6,385) (20,455) Net income $ (7,276) $ (49,668) Average assets $ 7,346,576 $ 6,739,376 Average loans 15,028 16,365 Average equity $ 1,734,890 $ 1,364,695 For the year ended December 31, 2025, Corporate / Other net income increased $42.4 million, or 85.4%, to $7.3 million compared to the same period in 2024. The increase was driven by both net interest income and noninterest income. The increase in net interest income includes increased income on investment securities, as a result of both volume and rates, partially offset by increased FTP paid out on non-maturity deposits to the business segments as the longer-term component of the non-maturity deposit FTP continued to increase throughout 2025 compared to 2024. The increase in noninterest income is primarily driven by the investment securities losses in the prior year. See "Note 19, Business Segment Reporting," in the consolidated financial statements of this Annual Report on Form 10-K for further information. 65 Financial Condition and Risk Management The following discussion provides an overview of the Company’s financial condition, asset quality, liquidity position, and regulatory capital as of December 31, 2025, with comparisons to the prior year-end where relevant. This analysis highlights the key drivers of balance sheet changes, evaluates trends in credit performance, and outlines the strength of the Company’s liquidity and capital resources. Together, these measures reflect management’s ongoing focus on prudent risk management, disciplined balance sheet strategy, and maintaining a strong financial foundation to support continued operations and future growth. As of December 31, 2025: • Total assets grew by $1,509 million, an increase of 7.8% from December 31, 2024. • Total loans held for investment as of December 31, 2025 totaled $11.4 billion, a decrease of $189.5 million, or 1.6%, compared to $11.6 billion as of December 31, 2024. The decrease was primarily due to $144 million reduction related to the sale of the consumer lease portfolio, along with reductions in commercial, financial & agricultural, and non-owner-occupied commercial real estate, partially offset by net growth in all other real estate loans and consumer credit cards. • Investment securities grew $766.0 million, an increase of 13.5% from December 31, 2024. As of December 31, 2025, approximately 98.9% of our investment portfolio consisted of securities guaranteed by the U.S. government, its agencies, or sponsored enterprises and available-for-sale securities represented 99.2% of our total portfolio. • Total deposits grew by $876.8 million, an increase of 5.9% from December 31, 2024. The increase was primarily due to growth in noninterest-bearing deposits and savings and interest-bearing demand deposits partially offset by a decline in time deposits. • Total stockholder's equity grew by $673.3 million, an increase of 21.6% from December 31, 2024. Credit Risk Management Credit Risk Credit risk is the risk that borrowers or counterparties will be unable or unwilling to repay their obligations in accordance with the underlying contractual terms. We seek to mitigate credit risk in our loan and lease portfolio by following clearly defined underwriting criteria and account management standards set by management. Our loan policy outlines underwriting requirements, approval levels, exposure limits, and other necessary guidelines. We actively manage portfolio diversification at the borrower, industry, and product levels to reduce concentration risk. Additionally, our credit risk management process includes an independent loan review to ensure adherence to loan policies, compliance with documentation standards, accurate risk ratings, and the overall credit quality of the portfolio. See “Note 1, Summary of Significant Accounting Policies," and "Note 3, Loans and Allowance for Credit Losses," to our consolidated financial statements in this Annual Report on Form 10-K. Loan and Lease Portfolio We offer a broad range of lending products with a focus on commercial real estate, construction and development, commercial and industrial, multi-family and one-to-four-family residential loans in our Primary Markets in Missouri, Kansas, Oklahoma and Colorado. As of December 31, 2025 and 2024, 87.8% of our loans were to borrowers who resided or organized in our Primary Markets. We deliver these products through a local, relationship-based delivery model emphasizing market-level credit authority. 66 The following table presents our loan and lease portfolio by category as of December 31, 2025 and 2024: December 31, 2025 2024 Amount % of total Amount % of total Loans held for investment: (dollars in thousands) Construction and development $ 570,749 5 % $ 552,676 5 % Commercial, financial & agricultural 1,761,287 15 % 1,874,906 16 % Non-owner-occupied commercial real estate 1 3,150,269 28 % 3,197,765 28 % Owner-occupied commercial real estate 1,580,260 14 % 1,572,955 14 % Commercial real estate 4,730,529 41 % 4,770,720 41 % Total commercial loans 7,062,565 62 % 7,198,302 62 % Residential mortgage loans 2 3,321,101 29 % 3,105,760 27 % Home equity lines of credit 410,845 4 % 349,011 3 % Consumer credit card 98,310 1 % 93,825 1 % Other consumer loans 551,395 5 % 903,452 8 % Total residential and consumer loans 4,381,651 38 % 4,452,048 38 % Total unpaid principal balance 11,444,216 100 % 11,650,350 100 % Add: Unearned income (9,611) - % (26,259) - % Total loans held for investment $ 11,434,605 100 % 11,624,091 100 % Loans held for sale $ 54,119 34,264 1 Non-owner-occupied commercial real estate loans restated to include multi-family loans 2 Residential mortgage loans restated to include residential construction and development Credit quality across the loan portfolio remains strong, supported by consistent adherence to conservative underwriting standards. Portfolio‑level metrics across all loan classes continue to align with these established standards, underscoring the stability and resilience of the credit profile. Total loans held for investment decreased $189.5 million, or 1.6%, to $11.4 billion as of December 31, 2025, from $11.6 billion as of December 31, 2024. The decrease was driven primarily by a reduction in other consumer loans following the sale of the consumer lease portfolio and a de-emphasis of indirect lending, as well as declines in commercial, financial and agricultural lending and non‑owner‑occupied commercial real estate. These decreases were partially offset by net growth in residential mortgages, home equity lines of credit, construction and development lending, owner‑occupied commercial real estate, and consumer credit card balances. Construction and development loans made up 5% of total loans held for investment as of December 31, 2025, increasing 3.3%, or $18.1 million, from December 31, 2024 to $571 million. Approximately $159 million in loans moved to permanent financing in 2025, with $126 million moving to non-owner occupied CRE. Commercial, financial and agricultural loans made up 15% of total loans held for investment as of December 31, 2025, a decrease of 6.1%, or $113.6 million, from December 31, 2024 to $1,761 million. The decrease was primarily due to the payoff of a large equipment financing loan along with runoff in the rest of the portfolio. Commercial real estate performance remains solid, with the 2025 CRE stress test showing portfolio‑level metrics of 1.39x debt service coverage and a 54% loan‑to‑value ratio. As of December 31, 2025, commercial real estate loans represented 41% of total loans and leases, decreasing 0.8%, or $40.2 million, from December 31, 2024 to $4.7 billion. This decrease was driven by a 1.5% decline, or $47.5 million, in non-owner occupied CRE loans, partially offset by 0.5% growth, or $7.3 million, in owner-occupied CRE loans. The residential mortgage portfolio continues to demonstrate strong credit fundamentals, reflected in an average loan‑to‑value ratio of 59%, an average debt‑to‑income ratio of 38.9%, and an average FICO score of 727. As of December 31, 2025, residential mortgage loans balances totaled $3.3 billion, representing 29% of total loans held for investment and an increase of 6.9%, or $215.3 million, from December 31, 2024. The increase during the period was driven primarily by continued growth in adjustable-rate mortgages. Home equity lines of credit continue to exhibit strong risk characteristics, supported by an average borrower FICO score of 755 and a combined loan‑to‑value ratio of 70%. The portfolio is primarily composed of second‑lien positions, with 74.4% of balances tied to loans where the Company also services the related first mortgage, and 0.2% in second‑lien loans where the first mortgage is not serviced by the Company. First‑lien home equity loans represented the remaining 25.5% of the portfolio. Home equity lines of credit accounted for 4% of total loans held for investment as of December 31, 2025, an increase of 17.7%, or $61.8 million from December 31, 2024 to $411 million. 67 Total consumer loans made up 6% of total loans held for investment as of December 31, 2025, a decrease of 34.9%, or $347.6 million, from December 31, 2024, driven by a de-emphasis of indirect lending. Consumer credit cards grew 5%, while all other consumer loans declined 39.0% or $352.1 million from December 31, 2024. The following tables presents the maturity distribution of our loans held for investment and sensitivity to interest rate changes for the periods presented below. The maturity dates were determined based on the contractual maturity date of the loan. Adjustable-rate mortgages are reflected in the adjustable rate column, however the rate is generally fixed for the initial five (5) or seven (7) years depending on the loan terms: As of December 31, 2025 Due in one year or less Due in one year through five years Due after five years and through fifteen years Due after fifteen years Fixed rate Adjustable rate Fixed rate Adjustable rate Fixed rate Adjustable rate Fixed rate Adjustable rate (dollars in thousands) Construction and development $ 130,624 $ 118,315 $ 174,709 $ 116,293 $ 2,122 $ 27,859 $ - $ 827 Commercial, financial & agricultural 176,040 474,530 604,833 159,640 200,454 63,005 55,998 26,787 Commercial real estate 994,754 309,313 2,200,780 651,770 109,594 419,982 2,185 42,151 Residential real estate 432,527 183,039 494,046 90,564 112,125 130,926 459,400 1,829,319 Consumer 29,617 133,694 324,897 6,457 136,698 - 18,342 - Total unpaid principal balance $ 1,763,562 $ 1,218,891 $ 3,799,265 $ 1,024,724 $ 560,993 $ 641,772 $ 535,925 $ 1,899,084 Asset Quality The following table presents selected financials from our consolidated balance sheet and the asset quality ratios discussed below. As of, and for the year ended December 31, 2025 2024 Asset Quality Ratios: Nonperforming loans / loans held for investment 0.40 % 0.34 % Allowance for loan losses / loans held for investment 1.31 % 1.33 % Loan modifications / loans held for investment 0.53 % 0.38 % Net charge-offs / average total loans 0.12 % 0.13 % Our objective is to maintain a high degree of credit quality, support the customers and communities we serve, and achieve our objectives for profitability and liquidity. Maintaining strong credit quality is essential to the viability of our business model. Through our business activities we recognize and seek to mitigate three primary types of credit risk: default risk, concentration risk and systemic risk. Managing credit risk is a continuous, enterprise-wide initiative that starts with our local market bankers and leaders as our first line of defense. We leverage the strength of our bankers across markets to manage and limit risk taking complemented by our comprehensive credit policy and underwriting standards. To help ensure we balance market-level support while maintaining a diversified portfolio, we impose market-level approval limits and industry, asset and geographic limits. To manage and enforce our portfolio metrics and diversification targets our credit committee, our second line of defense, meets periodically to evaluate credit risk migration, new business activities, stress-test activities and credit policy changes and approve or modify market lending authorities. Our internal loan review department, our third line of defense, serves as an independent function to evaluate effective underwriting and application of credit policy in both origination and portfolio management. Loans are analyzed for risk rating updates as part of the annual credit review process. For larger loans, rating assessments may be more frequent if relevant information is obtained earlier through debt covenants or overall relationship management. Smaller loans are monitored as identified by the loan officer based on the risk profile of the individual borrower or if the loan becomes past due related to credit issues. Loans rated “Watch,” “Substandard” or “Nonaccrual” under our internal risk grading system (as described below) may be subject to more frequent review and monitoring processes. In addition to the regular monitoring performed by the market lending personnel and credit committees, loans are subject to review by our internal loan review department, which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan. 68 Nonperforming Loans and Assets. Our nonperforming assets consist of nonperforming loans and foreclosed real estate, if any. Our nonperforming loans consist of loans past due 90 days or more and still accruing and nonaccrual loans. We consider loans past due on the day following the contractual repayment date if the contractual repayment was not received by us as of the end of the business day. Loans for which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is discontinued when, in management’s judgment, the interest is uncollectible in the normal course of business. Loans are placed on nonaccrual status when (i) deterioration in the financial condition of the borrower exists such that payment of full principal and interest is not expected, or (ii) principal or interest has been in default for a period of 90 days or more and the asset is not both well secured and in the process of collection. When a loan is placed on nonaccrual status, any interest previously accrued but not collected is reversed against current income, and the loan is charged off to the extent uncollectible. Principal and interest payments received on nonaccrual loans are generally applied to principal. Interest is included in income only after all previous loan charge-offs have been recovered and is recorded only as received. The loan is returned to accrual status only when the borrower has brought all past-due principal and interest payments current and, in the opinion of management, has demonstrated the ability to make future payments of principal and interest as scheduled. The following table presents our nonperforming loans and assets for the dates indicated: December 31, 2025 2024 (dollars in thousands) Nonaccrual loans $ 44,663 $ 35,994 Loans past due 90 days or more and still accruing 1,343 3,479 Total nonperforming loans 46,006 39,473 Foreclosed assets held for sale 4,353 3,695 Other repossessed assets 1,601 1,581 Total nonperforming assets $ 51,960 $ 44,749 Allowance for credit losses to period end loans held for investment 1.31 % 1.33 % Allowance for credit losses to period end nonperforming loans 325.34 % 390.85 % Nonperforming loans to period end loans held for investment 0.40 % 0.34 % Nonperforming assets to period end assets 0.25 % 0.23 % Nonaccrual loans to period end loans held for investment 0.39 % 0.31 % Allowance for credit losses to nonaccrual loans at period end 335.12 % 428.62 % Nonaccrual loans totaled $44.7 million as of December 31, 2025, an increase of $8.7 million, or 24%, compared to $36.0 million as of December 31, 2024. The increase was primarily driven by an increase in nonaccrual loans in certain loan segments, particularly commercial, financial & agricultural, non-owner-occupied commercial real estate and residential mortgage loans categories, mostly related to two relationships migrating to nonaccrual in 2025. The following table provides an aging analysis on the Company’s past due and accruing loans, in addition to the balances of loans on nonaccrual status, as of the dates indicated. Balances in the tables below represent total unpaid principal balances gross of unearned and unamortized loans fees and costs. 69 December 31, 2025 Current or less than 30 days past due 30 - 89 Days past due 90 Days past due and still accruing Nonaccrual Total Loans held for investment (dollars in thousands) Construction and development $ 570,668 $ - $ - $ 81 $ 570,749 Commercial, financial & agricultural 1,751,575 4,097 34 5,581 1,761,287 Non-owner-occupied commercial real estate 3,137,206 4,056 - 9,007 3,150,269 Owner-occupied commercial real estate 1,575,921 1,797 - 2,542 1,580,260 Total commercial real estate 4,713,127 5,853 - 11,549 4,730,529 Total commercial loans 7,035,370 9,950 34 17,211 7,062,565 Residential mortgage loans 3,283,403 12,943 862 23,893 3,321,101 Home equity lines of credit 408,114 1,361 167 1,203 410,845 Consumer credit card 96,988 1,042 280 - 98,310 Other consumer loans 539,260 9,779 - 2,356 551,395 Total residential and consumer loans 4,327,765 25,125 1,309 27,452 4,381,651 Total loans held for investment $ 11,363,135 $ 35,075 $ 1,343 $ 44,663 $ 11,444,216 December 31, 2024 Current or less than 30 days past due 30 - 89 Days past due 90 Days past due and still accruing Nonaccrual Total Loans held for investment (dollars in thousands) Construction and development $ 552,127 $ 305 $ - $ 244 $ 552,676 Commercial, financial & agricultural 1,856,053 15,636 256 2,961 1,874,906 Non-owner-occupied commercial real estate 3,183,234 7,642 - 6,889 3,197,765 Owner-occupied commercial real estate 1,567,254 1,561 - 4,140 1,572,955 Total commercial real estate 4,750,488 9,203 - 11,029 4,770,720 Total commercial loans 7,158,668 25,144 256 14,234 7,198,302 Residential mortgage loans 3,070,437 17,780 2,745 14,798 3,105,760 Home equity lines of credit 346,367 1,458 149 1,037 349,011 Consumer credit card 91,539 1,957 329 - 93,825 Other consumer loans 883,940 13,587 - 5,925 903,452 Total residential and consumer loans 4,392,283 34,782 3,223 21,760 4,452,048 Total loans held for investment $ 11,550,951 $ 59,926 $ 3,479 $ 35,994 $ 11,650,350 In addition to the past due and nonaccrual criteria, the Company evaluates loans according to its internal risk grading system. Loans are segregated between four main categories. • Pass category loans consist of a range of loan grades that reflect low to moderate, though still acceptable, risk. • Watch loans consist of loans when (i) one or more weaknesses which could jeopardize timely liquidation exist; or (ii) the margin or liquidity of an asset is sufficiently tenuous that adverse trends could result in a collection problem. • Substandard loans consist of loans inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. These loans may have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. Such loans are characterized by the distinct possibility that the Company may sustain some loss if the deficiencies are not corrected. • Nonaccrual loans consist of loans (i) for which deterioration in the financial condition of the borrower exists such that payment of full principal and interest is not expected, or (ii) upon which principal or interest has been in default for a period of 90 days or more and the asset is not both well secured and in the process of collection. 70 The following tables provide information about the credit quality of the loan portfolio using the Company’s internal rating system reflecting management’s risk assessment: December 31, 2025 Term Loans Amortized Cost Basis by Origination Year 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total (dollars in thousands) Construction and development Pass $ 165,449 $ 207,312 $ 27,395 $ 71,348 $ 36,631 $ 17,334 $ 32,568 $ 558,037 Watch 529 244 1,486 3,490 - - - 5,749 Substandard - - 4,095 2,266 - 521 - 6,882 Non-accrual - - - - - 81 - 81 Total construction and development 165,978 207,556 32,976 77,104 36,631 17,936 32,568 570,749 Gross write-offs for the year ended December 31, 2025 - - - - - 14 - 14 Commercial, financial & agricultural Pass 383,642 257,121 147,877 154,197 94,111 211,879 475,596 1,724,423 Watch 1,883 1,294 891 652 98 204 1,082 6,104 Substandard 1,981 1,428 1,113 1,242 7,922 11,211 282 25,179 Non-accrual 38 47 1,439 2,990 47 315 705 5,581 Total commercial, financial & agricultural 387,544 259,890 151,320 159,081 102,178 223,609 477,665 1,761,287 Gross write-offs for the year ended December 31, 2025 1,393 358 1,148 824 100 746 180 4,749 Non-owner-occupied commercial real estate Pass 417,956 257,298 270,435 572,181 421,783 1,063,545 33,545 3,036,743 Watch - 527 237 6,487 - 49,660 387 57,298 Substandard - 921 - 23,488 9,538 13,274 - 47,221 Non-accrual - - - 6,164 25 2,818 - 9,007 Total non-owner-occupied commercial real estate 417,956 258,746 270,672 608,320 431,346 1,129,297 33,932 3,150,269 Gross write-offs for the year ended December 31, 2025 - - - - - 816 - 816 Owner-occupied commercial real estate Pass 231,225 132,459 110,736 173,201 235,419 517,212 111,649 1,511,901 Watch 1,133 1,154 4,080 3,006 5,634 16,519 1,229 32,755 Substandard 418 2,050 3,623 15,059 904 9,137 1,871 33,062 Non-accrual - - 72 1,182 259 1,029 - 2,542 Total owner-occupied commercial real estate 232,776 135,663 118,511 192,448 242,216 543,897 114,749 1,580,260 Gross write-offs for the year ended December 31, 2025 - - - 384 - - - 384 Residential mortgage loans Accrual 912,652 544,631 429,302 529,876 394,244 440,662 45,841 3,297,208 Non-accrual 510 4,328 8,425 3,002 4,121 3,507 - 23,893 Total residential mortgage loans 913,162 548,959 437,727 532,878 398,365 444,169 45,841 3,321,101 Gross write-offs for the year ended December 31, 2025 263 30 189 158 91 - - 731 Home equity lines of credit Accrual 1,061 16 598 99 249 2,707 404,912 409,642 Non-accrual - - - - - - 1,203 1,203 Total home equity lines of credit 1,061 16 598 99 249 2,707 406,115 410,845 Gross write-offs for the year ended December 31, 2025 25 - - - - - 39 64 Consumer credit card Current - - - - - - 96,988 96,988 30-89 days - - - - - - 1,042 1,042 90+ days - - - - - - 280 280 Total consumer credit card - - - - - - 98,310 98,310 Gross write-offs for the year ended December 31, 2025 - - - - - - 3,452 3,452 71 December 31, 2025 Term Loans Amortized Cost Basis by Origination Year 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total (dollars in thousands) Other consumer loans Current 108,542 103,299 109,084 95,649 46,525 36,933 39,228 539,260 30-89 days 647 1,573 2,400 2,872 1,424 863 - 9,779 90+ days - - - - - - - - Non-accrual 201 259 673 605 360 258 - 2,356 Total other consumer loans 109,390 105,131 112,157 99,126 48,309 38,054 39,228 551,395 Gross write-offs for the year ended December 31, 2025 3,172 1,201 2,004 2,112 1,285 1,212 - 10,986 Total loans $ 2,227,867 $ 1,515,961 $ 1,123,961 $ 1,669,056 $ 1,259,294 $ 2,399,669 $ 1,248,408 $ 11,444,216 Total gross write-offs for the year ended December 31, 2025 4,853 1,589 3,341 3,478 1,476 2,788 3,671 21,196 December 31, 2024 Term Loans Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total (dollars in thousands) Construction and development Pass $ 141,672 $ 97,331 $ 148,049 $ 101,162 $ 10,934 $ 13,752 $ 23,394 $ 536,294 Watch 248 3,824 11,509 - - - 2 15,583 Substandard - - - - 8 547 - 555 Non-accrual - - 141 - 89 14 - 244 Total construction and development 141,920 101,155 159,699 101,162 11,031 14,313 23,397 552,676 Gross write-offs for the year ended December 31, 2025 - - 950 - - - - 950 Commercial, financial & agricultural Pass 399,016 252,671 235,271 178,160 90,397 184,191 494,970 1,834,676 Watch 219 877 5,160 9,378 39 210 401 16,285 Substandard 1,137 1,989 4,036 1,035 522 12,110 157 20,986 Non-accrual 48 2,222 275 53 89 122 152 2,961 Total commercial, financial & agricultural 400,419 257,760 244,741 188,626 91,047 196,633 495,680 1,874,906 Gross write-offs for the year ended December 31, 2025 4,930 195 468 455 66 232 554 6,900 Non-owner-occupied commercial real estate Pass 329,446 270,243 649,423 459,990 319,782 1,005,568 27,534 3,061,986 Watch - 500 28,246 13,743 11,164 53,734 916 108,303 Substandard - - 6,219 585 3,524 10,260 - 20,587 Non-accrual - - - 493 - 6,395 - 6,889 Total non-owner-occupied commercial real estate 329,446 270,743 683,888 474,812 334,469 1,075,957 28,450 3,197,765 Gross write-offs for the year ended December 31, 2025 - - - - - 1,821 - 1,821 Owner-occupied commercial real estate Pass 135,833 121,103 212,907 270,841 127,911 552,786 100,158 1,521,540 Watch 638 6,155 5,673 2,854 5,867 4,477 1,390 27,054 Substandard 1,752 229 5,076 464 2,519 8,405 1,777 20,222 Non-accrual - 329 568 281 688 2,256 18 4,140 Total owner-occupied commercial real estate 138,223 127,817 224,225 274,440 136,984 567,923 103,343 1,572,955 Gross write-offs for the year ended December 31, 2025 - - 5 - - - - 5 72 December 31, 2024 Term Loans Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total Residential mortgage loans Accrual 820,205 604,332 639,140 458,728 192,384 342,663 33,509 3,090,961 Non-accrual 1,055 3,633 3,650 2,235 594 3,631 - 14,798 Total residential mortgage loans 821,260 607,965 642,790 460,963 192,979 346,294 33,509 3,105,760 Gross write-offs for the year ended December 31, 2025 - - 313 - - 42 - 355 Home equity lines of credit Accrual 1,176 692 207 - - 2,929 342,970 347,974 Non-accrual - - - 124 - - 913 1,037 Total home equity lines of credit 1,176 692 207 124 - 2,929 343,883 349,011 Gross write-offs for the year ended December 31, 2025 - - - - - 2 9 11 Consumer credit card Current - - - - - - 91,539 91,539 30-89 days - - - - - - 1,957 1,957 90+ days - - - - - - 329 329 Total consumer credit card - - - - - - 93,825 93,825 Gross write-offs for the year ended December 31, 2025 - - - - - - 3,894 3,894 Other consumer loans Current 328,142 175,298 169,605 91,594 48,299 20,552 50,451 883,941 30-89 days 1,305 3,608 4,220 2,639 1,141 674 - 13,587 90+ days - - - - - - - - Non-accrual 291 1,206 2,055 1,147 651 575 - 5,925 Total other consumer loans 329,739 180,111 175,880 95,380 50,091 21,801 50,451 903,452 Gross write-offs for the year ended December 31, 2025 211 2,935 3,850 2,378 1,079 476 - 10,929 Total loans $ 2,162,183 $ 1,546,243 $ 2,131,428 $ 1,595,506 $ 816,602 $ 2,225,849 $ 1,172,537 $ 11,650,350 Total gross write-offs for the year ended December 31, 2025 5,141 3,130 5,586 2,833 1,145 2,573 4,457 24,865 Modifications for Borrowers Experiencing Financial Difficulty When borrowers are experiencing financial difficulty, we may agree to modify the contractual terms of a loan to a borrower to assist the borrower in repaying principal and interest owed to us. Such modification of loans to borrowers experiencing financial difficulty are generally in the form of term extensions, repayment plans, payment deferrals, forbearance agreements, interest rate reductions, forgiveness of interest and/or fees, or any combination thereof. Modifications of commercial loans to borrowers experiencing financial difficulty are primarily modifications to loans that are substandard or nonaccrual, where the maturity date was extended. Modifications of personal real estate loans are primarily made to loans placed on forbearance plans, repayment plans, or deferral plans where monthly payments are suspended for a period of time or past due amounts are paid off over a certain period of time in the future or set up as a balloon payment at maturity. Modifications to certain credit card and other small consumer loans are often made under debt counseling programs that can reduce the contractual rate, or, in certain instances, forgive certain fees and interest charges. Other consumer loans modified to borrowers experiencing financial difficulty consist of various other workout arrangements with consumer customers. 73 The following tables present the amortized cost of loans that were modified during the year ended December 31, 2025 and 2024: December 31, 2025 Term Extension Payment Delay Interest Rate Reduction Interest/Fees Forgiven Other Total % of Total Loan Category (dollars in thousands) Construction and development $ 4,176 $ - $ - $ - $ 2,107 $ 6,283 1.10 % Commercial, financial, & agricultural 4,903 812 161 - 233 6,109 0.35 % Non-owner-occupied commercial real estate 16,665 - - - 5,663 22,328 0.71 % Owner-occupied commercial real estate 8,607 1,537 4,606 1,209 - 15,959 1.01 % Total commercial real estate 25,272 1,537 4,606 1,209 5,663 38,287 0.81 % Residential mortgage loans 4,429 897 2,687 50 410 8,473 0.26 % Home equity lines of credit 765 - - - - 765 0.19 % Total residential real estate 5,194 897 2,687 50 410 9,238 0.25 % All other consumer 161 - 403 - - 564 0.09 % Total $ 39,706 $ 3,246 $ 7,857 $ 1,259 $ 8,413 $ 60,481 0.53 % December 31, 2024 Term Extension Payment Delay Interest Rate Reduction Interest/Fees Forgiven Other Total % of Total Loan Category (dollars in thousands) Construction and development $ 2,710 $ - $ - $ 2,126 $ 556 $ 5,392 0.62 % Commercial, financial, & agricultural 3,927 - - 185 - 4,112 0.22 % Non-owner-occupied commercial real estate 11,531 2,869 690 5,663 - 18,800 1.03 % Owner-occupied commercial real estate 6,015 610 - - - 6,625 0.42 % Total commercial real estate 17,547 3,479 690 5,663 - 27,379 0.57 % Residential mortgage loans 3,167 1,217 1,036 - - 5,419 0.19 % Home equity lines of credit 876 - - - - 876 0.25 % Total residential real estate 4,043 1,217 1,036 - - 6,295 0.20 % All other consumer 586 317 78 - - 981 0.11 % Total $ 28,812 $ 5,013 $ 1,804 $ 7,974 $ 556 $ 44,159 0.38 % Allowance for Credit Losses Allowance for credit losses reflects management’s estimate of current expected loss within the loans held for investment portfolio. The computation of the allowance for credit losses includes elements of judgment and high levels of subjectivity. See “Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates—Allowance for Credit Losses on Loans,” in this Annual Report on Form 10-K. We measure the allowance for credit losses using an average historical loss model which incorporates relevant information about past events (including historical credit loss experience on loans with similar risk characteristics), current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type and collateral type. Loans that do not share similar risk characteristics, primarily large loans on nonaccrual status are evaluated on an individual basis. For loans evaluated for credit losses on a collective basis, an average historical loss rate is calculated for each pool using our historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and outstanding loan balances during a lookback period. Lookback periods can be different based on the individual pool and represent management’s credit expectations for the pool of loans over the remaining contractual period. 74 Due to changes in portfolio composition, the Company’s own historical loss rates are not fully reflective of loss expectations and have been augmented by industry and peer data. Therefore, the historical loss rates are augmented by peer data. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts. These adjustments increase or decrease the average historical loss rate to reflect expectations of future losses given a single path economic forecast of key macroeconomic variables including GDP, unemployment rate, various interest rates, the Federal Housing Finance Agency House Price Index, and the Commercial Real Estate Price Index. Additionally, the allowance for credit losses considers other qualitative factors not included in historical loss rates or macroeconomic forecast such as changes in portfolio composition, underwriting practices, or significant unique events or conditions. The following table presents an analysis of our allowance for credit losses, including provisions for credit losses, charge-offs and recoveries, for the periods indicated: December 31, 2025 Commercial real estate Residential real estate Consumer Total Construction & development Commercial, financial, & agricultural Non-Owner occupied commercial real estate Owner occupied commercial real estate Residential mortgage loans Home equity Lines of Credit Consumer credit card All other consumer credit Allowance for credit losses on loans (dollars in thousands) Balance at beginning of year $ 14,119 $ 23,915 $ 24,815 $ 9,940 $ 43,471 $ 4,505 $ 8,299 $ 25,215 $ 154,279 Provision for credit losses on loans 855 3,396 235 701 5,439 1,097 2,964 (5,231) 9,456 Loans charged off (14) (4,749) (816) (384) (731) (64) (3,452) (10,986) (21,196) Recoveries on loans previously charged off 23 912 403 3 162 4 995 4,633 7,135 Balance at end of year 14,983 23,474 24,637 10,260 48,341 14,983 8,806 13,631 149,674 Liability for unfunded commitments Balance at beginning of year 165 161 6 10 7 135 — — 484 Provision for credit losses on unfunded lending commitments (61) (45) 2 (3) 2 (30) — — (135) Balance at end of year 104 116 8 7 9 105 — — 349 Allowance for credit losses on loans and liability for unfunded lending commitments $ 15,087 $ 23,590 $ 24,645 $ 10,267 $ 48,350 $ 5,647 $ 8,806 $ 13,631 $ 150,023 75 December 31, 2024 Commercial real estate Residential real estate Consumer Total Construction & development Commercial, financial, & agricultural Non-Owner occupied commercial real estate Owner occupied commercial real estate Residential mortgage loans Home equity Lines of Credit Consumer credit card All other consumer credit Allowance for credit losses on loans (dollars in thousands) Balance at beginning of year $ 17,571 $ 21,180 $ 23,464 $ 9,626 $ 39,214 $ 4,885 $ 8,071 $ 30,798 $ 154,809 Provision for credit losses on loans (2,593) 6,043 3,156 (201) 4,274 (388) 3,437 948 14,676 Loans charged off (950) (6,900) (1,821) (5) (355) (11) (3,894) (10,929) (24,865) Recoveries on loans previously charged off 91 3,592 16 520 338 19 685 4,398 9,659 Balance at end of year 14,119 23,915 24,815 9,940 43,471 4,505 8,299 25,215 154,279 Liability for unfunded commitments Balance at beginning of year 139 206 14 8 13 188 — — 568 Provision for credit losses on unfunded lending commitments 26 (45) (8) 2 (6) (53) — — (84) Balance at end of year 165 161 6 10 7 135 — — 484 Allowance for credit losses on loans and liability for unfunded lending commitments $ 14,284 $ 24,076 $ 24,821 $ 9,950 $ 43,478 $ 4,640 $ 8,299 $ 25,215 $ 154,763 In 2025, we recorded net charge-offs of $14.1 million, compared to net charge-offs of $15.2 million in 2024, a decrease of $1.1 million, or 7.5%. Net charge-offs as a percentage of average total loans were 0.12% in 2025 compared to 0.13% in 2024. At December 31, 2025, the allowance for credit losses was $149.7 million, or 1.31% of our total loans held for investment portfolio, compared with $154.3 million, or 1.33% of loans, at December 31, 2024. Our allowance for credit losses, both in total dollars and as a percentage of total loans held for investment, declined from the prior fiscal year. The following tables present the allocation of the allowance for credit losses: December 31, 2025 December 31, 2024 % of Loan % of ACL % of Loan % of ACL Allocated Category to Loan Allocated Category to Loan Reserves to Loans Category Reserves to Loans Category (dollars in thousands) Construction & development $ 14,983 4.97 % 2.63 % $ 14,119 4.74 % 2.55 % Commercial, financial & agricultural 23,474 15.33 % 1.33 % 23,915 16.08 % 1.28 % Commercial real estate 34,897 41.18 % 0.74 % 34,755 40.92 % 0.73 % Residential real estate 53,883 32.95 % 1.44 % 47,976 29.93 % 1.39 % Consumer 22,437 5.65 % 3.45 % 33,514 8.55 % 3.36 % Unearned income - (0.08) % — % - (0.22) % — % Total $ 149,674 100.00 % 1.31 % $ 154,279 100.00 % 1.33 % Management will continue to evaluate the loan portfolio and assess economic conditions in order to determine future allowance levels and the amount of credit loss provision. We review the appropriateness of our allowance for credit losses on a quarterly basis. While we use the best information available to make evaluations, future adjustments to the allowance may become necessary if conditions change substantially from the conditions that we used in previous evaluations. 76 Market Risk Interest Rate Risk Interest rate risk is one of the most significant risks faced by the Company as one of our primary sources of earnings is net interest income, the difference between interest income earned on interest-earning assets such as loans and securities and interest expense paid on interest-bearing liabilities such as deposits and borrowings. Interest rate risk is the risk that changes in market interest rates will negatively affect the Company’s net interest income and therefore earnings. While interest rate risk can arise from various sources, there are four key types of interest rate risk to our consolidated balance sheets: • Repricing Risk arises when a bank’s assets and liabilities reprice at different times or at different rates. When market interest rates change, the Bank may not be able to adjust its assets and liabilities simultaneously, leading to mismatched durations and impacts on net interest income. • Yield Curve Risk arises from changes in the shape of the yield curve, which represents interest rates of bonds with different maturities. The Bank may face this risk when the yield curve flattens, steepens, or becomes inverted. • Basis Risk is the risk that changes in underlying index rates used to price assets and liabilities do not change in a correlated manner, causing margins to narrow. For example, loans priced to the national prime rate might not change in the same manner as certificates of deposit priced off FHLB advance rates. • Option Risk (Prepayment/Extension Risk) is related to the embedded options in certain financial products, such as the ability for a borrower to prepay a loan or a depositor to withdraw funds at will. For example, when interest rates fall, customers may refinance loans (prepayment risk), and when rates rise, depositors may withdraw funds to invest at higher rates. The Bank’s exposure to this risk depends on the volume and nature of the embedded options and how those products behave in response to rate changes. The Company’s ALCO has been authorized by the Board to measure, monitor and manage the Company’s interest rate risk. Our strategic objective is to manage our balance sheet in a manner designed to ensure that changes in interest rates will not result in unacceptable levels of earnings volatility or threaten the adequacy of our capital and liquidity. We utilize an asset/liability model to perform interest rate risk simulations on a wide range of potential interest rate scenarios to develop an interest rate risk profile that reveals the potential financial impact to both net interest income (shorter-term risk) and economic value of equity (longer-term risk) from changes in interest rates relative to a flat interest rate scenario. The economic value of equity (EVE) is defined as the estimated present value of our assets minus the estimated present value of our liabilities at a point in time. A decrease in EVE due to a specified rate change indicates a decline in the long-term earnings capacity of the balance sheet assuming that the rate change remains in effect over the life of the current balance sheet. An increase in EVE indicates the opposite. We monitor, test, and stress modeling assumptions to assess the magnitude of their impact on simulation results and evaluate changes in our interest rate risk profile to ensure we understand the key drivers of those changes. The following table sets forth the estimated impact on our net interest income and economic value of equity from immediate parallel shifts in both short- and long-term interest rates at the specified levels (dollars in thousands). The Steepener scenario reflects an instantaneous yield curve twist, centered on the 2-year tenor, wherein the overnight rate is decreased 1.00% and the 30-year rate is increased 0.50%. As of December 31, 2025 Estimated Increase (Decrease) in Net Interest Income Estimated Increase (Decrease) in EVE Year 1 Year 2 Change in Rates Amount Percent Amount Percent Amount Percent -200 bp $(65,683) -7.9 % $(122,429) -14.1 % $(581,437) -9.0 % -100 bp (32,236) -3.9 % (59,877) -6.9 % (242,733) -3.8 % +100 bp 31,219 3.7 % 58,125 6.7 % 177,341 2.8 % +200 bp 61,638 7.4 % 114,813 13.2 % 292,475 4.5 % Steepener (17,146) -2.1 % (15,404) -1.8 % 186,700 2.9 % The values in the table above do not reflect any actions that we may undertake in response to changes in interest rates, such as changes in rates paid on certain deposit accounts or changes in earning assets mix, which could reduce the actual impact to net interest income and EVE, if any. 77 The outcomes of our simulation analyses are hypothetical, and various factors could lead to actual results differing significantly from what is shown. For instance, if the timing and extent of interest rate changes deviate from what was projected, our net interest income could differ substantially. Non-parallel shifts in the yield curve, such as a flattening or steepening, or changes in interest rate spreads, could also cause our net interest income to vary from the forecasted amount. In an environment of rising interest rates, projected net interest income might decrease if deposits and other short-term liabilities reprice more quickly than anticipated, or if our assets reprice at a slower rate. Actual results may differ from projections if we experience asset and liability growth rates that are faster or slower than expected, if there is a net outflow of deposits, or if the composition of our assets and liabilities changes in other ways. For example, even though we maintain relatively high levels of readily accessible liquidity, a quicker-than-expected withdrawal of deposits could force us to seek higher-cost funding sources. Actual results may also differ from projections if we experience prepayment speeds in our loan portfolio that significantly differ from the assumptions used in the simulation analyses. These simulation results do not account for all potential actions we might take in response to actual or anticipated changes in interest rates, such as adjustments to our loan, investment, deposit, funding, or hedging strategies. We assume no growth or changes in the composition of our balance sheet over the modeling horizon and no additional changes in market interest rates or spreads after the initial immediate rate shocks. As a result, the information in the table above should be considered indicative of our sensitivity to changes in interest rates rather than indicative of our expected actual results. Liquidity Risk Management Bank Liquidity Management The objective of our liquidity management strategy is to ensure the availability of cash sufficient to fund our operations and meet present and future financial obligations at a reasonable cost. We consider the effective and prudent management of liquidity to be fundamental to our health and strength. The Company’s Asset/Liability Committee has been authorized by the Board to oversee our liquidity risk to confirm that our activities comply with our funds management policy, which specifies overall objectives, metrics, limits, guidelines, reporting requirements and our contingency funding plan, which includes requirements for liquidity stress testing. The ALCO receives regular comprehensive reporting that includes information describing current levels vs. guidelines and limits for a broad set of liquidity metrics, loan and deposit trends, readily available liquidity measures, explanatory commentary relating to changes in our liquidity position and emerging risk trends and, as appropriate, recommended remedial strategies. Our objective is to maintain prudent levels of current and contingent liquidity from stable sources that can be accessed in a timely manner at a reasonable cost, without significant adverse consequences. We seek to accomplish this mission by funding loans primarily with stable deposits, controlling dependence on wholesale funding, and by maintaining ample readily available liquidity. While our primary source of long-term, stable, and lower-cost funding is deposits, additional sources of funding include, but are not limited to, customer repurchase agreements, federal funds purchased from correspondent banks, unencumbered investment securities, and wholesale funding sources such as FHLB borrowings, dealer repurchase agreements, and wholesale/brokered deposits. As of December 31, 2025, we had approximately $6.7 billion in readily available liquidity. As of December 31, 2024, we had approximately $4.9 billion in readily available liquidity. As of December 31, Change 2025 2024 2025 vs. 2024 Readily available liquidity (dollars in thousands) Cash reserves at Federal Reserve $ 1,805,215 $ 969,416 $ 835,799 86.2 % FHLB advance capacity (loan collateral) 2,743,992 2,393,708 350,284 14.6 % Unencumbered securities lending value 2,104,941 1,555,353 549,588 35.3 % Total readily available liquidity $ 6,654,148 $ 4,918,477 $ 1,735,671 35.3 % 78 The following table presents selected financials from our consolidated balance sheet and liquidity ratios discussed below. As of, and for the year ended December 31, 2025 2024 Liquidity Ratios: Loan to deposit ratio 72.4 % 77.8 % Cash and securities / total assets 40.9 % 35.8 % Available liquidity / total assets 32.1 % 25.6 % Investment Securities As part of our broader risk management framework, the investment portfolio serves as a key tool for balancing interest rate exposure, preserving capital, and ensuring adequate liquidity under a range of market conditions. Ongoing monitoring of portfolio composition, valuation trends, and duration sensitivity allows us to assess how shifts in the rate environment or market dynamics may influence both earnings and economic value. The following discussion outlines the portfolio’s performance and risk profile for the year ended December 31, 2025, including changes in yields, unrealized positions, and the results of our ongoing interest‑rate and credit‑risk evaluations. As of December 31, 2025, the amortized cost of our AFS and HTM investment portfolios totaled $6.4 billion, an increase of $623.4 million, or 10.8% versus December 31, 2024. As of the same date, the fair value of our AFS and HTM investment portfolios totaled $6.4 billion, an increase of $767.2 million, or 13.7% versus December 31, 2024. The average tax-equivalent yield at December 31, 2025 was 4.04%, increase of 55 basis points versus December 31, 2024. Gross unrealized gains in our investment securities portfolio were $57.2 million and $7.4 million as of December 31, 2025 and December 31, 2024, respectively. Gross unrealized losses in our investment securities portfolio were $104.6 million and $198.6 million as of December 31, 2025 and December 31, 2024, respectively. The change in the yield was due to the combination of the reinvestment of lower-yielding principal cashflows, an increase in balances, and the repositioning of lower-yielding securities, all into a higher-yielding market. The changes in unrealized gains and losses in our investment securities portfolio were due primarily to a decrease in market interest rates in 2025. As of December 31, 2025, 98.9% of our investment portfolio consisted of securities guaranteed by the U.S. government, its agencies, or sponsored enterprises and available-for-sale securities represented 99.2% of our total portfolio. As of the same date, the portfolio’s composition was 39% agency residential mortgage-backed securities, 41% agency commercial mortgage-backed securities, and 14% Treasuries, with the balance in agency debenture, Small Business Administration, municipal, corporate and other securities. A primary risk of holding agency RMBS comes from the variability in principal cashflows that may occur as interest rates change. In general, when interest rates rise, the prepayment of principal slows down, extending the amount of time it takes to recover and reinvest that principal. In contrast, when interest rates fall, the prepayment of principal generally increases, shortening the amount it takes to recover and reinvest that principal. We evaluate this risk through pre-purchase modeling of potential cashflows as well as continuous modeling throughout the life of the securities. As of December 31, 2025, our best estimate of the duration of our $2.5 billion residential mortgage-backed securities portfolio held in available-for-sale was 3.3 years. As of December 31, 2025, management estimates the effective duration extends by 0.7 years assuming an immediate 200 basis point upward shock and contracts by 0.8 years assuming an immediate 200 basis point downward shock. As of the same date, our best estimate of the duration of the total investment portfolio excluding equity securities was 2.8 years. Management estimates the effective duration extends by 0.3 years assuming an immediate 200 basis point upward shock and contracts by 0.3 years assuming an immediate 200 basis point downward shock. All securities not issued or guaranteed by the U.S. government, its agencies, or sponsored enterprises are subject to a quarterly review to test for impairment. This process is intended to adequately test for a range of credit and loss assumptions and does not rely primarily on credit ratings. This review was performed as of December 31, 2025 and December 31, 2024 and revealed no matters that would warrant impairment and result in an allowance for credit losses. The Company determined that all unrealized losses are primarily attributable to changes in interest rates and current market conditions. During December 31, 2025, $6.8 million in net losses were recorded on the sale of common and preferred stock. $36.7 million in net losses were recorded on common or preferred stock during December 31, 2024. 79 Deposits Deposits are gathered primarily from our full-service branch locations, as well as online, mobile and ATM deposits. Central Bank offers a variety of deposit products including noninterest-bearing demand deposits, interest-bearing demand deposits, savings accounts, and certificates of deposit. The bank also utilizes the IntraFi network which allows our depositors to receive FDIC insurance on amounts greater than $250,000. Deposits larger than this threshold are broken into smaller amounts and placed in the network of other IntraFi institutions to ensure FDIC insurance covers the entire deposit. The following tables sets forth the distribution of deposit balances as of December 31, 2025 and December 31, 2024: As of December 31, 2025 2024 Ending Balance % of Total Ending Balance % of Total (dollars in thousands) Noninterest-bearing demand deposits $ 5,615,652 35.4 % $ 5,245,705 35.0 % Savings and interest-bearing demand deposits 8,611,895 54.3 % 8,043,244 53.7 % Time deposits 1,635,078 10.3 % 1,696,899 11.3 % Total deposits $ 15,862,625 100.0 % $ 14,985,848 100.0 % Total deposit ending balances as of December 31, 2025 were $15.9 billion, an increase of $876.8 million, or 5.9%, compared to $15.0 billion as of December 31, 2024. The increase was driven by growth in noninterest-bearing deposits and savings and interest-bearing demand deposits, partially offset by reductions in time deposits. FDIC deposit insurance covers $250 thousand per depositor, per FDIC-insured bank, for each account ownership category. Our total estimated uninsured deposits were $6.9 billion and $5.4 billion as of December 31, 2025 and 2024, respectively. Federal Funds Purchased and Customer Repurchase Agreements Federal funds purchased and customer repurchase agreements totaled $1.0 billion and $1.0 billion at December 31, 2025 and December 31, 2024, respectively, which included customer repurchase agreements of $945.8 million and $906.8 million at December 31, 2025 and December 31, 2024, respectively. These are short-term borrowings that generally have a one-day maturity. The $39.0 million, or 4.3%, increase in customer purchase agreements in 2025 was due to the normal course of business. Federal funds purchased decreased $34.5 million, or 34.3%, in 2025. Off-Balance Sheet Arrangements In the normal course of business, in order to meet the needs of our customers, we are subject to off-balance sheet risk which could potentially impact our financial position. These off-balance sheet arrangements include commitments to fund loans and standby letters of credit. The Company has outstanding commitments to provide loans to, and letters of credit on behalf of, our customers. Loan commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as is involved in extending loan facilities to customers. In addition, the Company may enter into interest rate swap risk participation agreements when certain clients are engaged in interest rate hedging activities in a syndicated loan or a loan in which we are a participant. This is represented as credit derivatives in the table below and is the only credit derivative activity in which the Company currently participates. Under these agreements, we assume a portion of the counterparty credit risk associated with a client’s interest rate swap transaction with a third-party financial institution, for which we receive a fee. If the client fails to meet its payment obligations under the swap, we may be required to fulfill those obligations up to our participation level. 80 The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, by the Company upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, property, plant, equipment, and income-producing commercial properties. Our loan portfolio is primarily concentrated in our Primary Markets, where 87.8% of our total loans are located. Such commitments and conditional obligations were as follows as of the dates presented. Contractual amount as of December 31, 2025 2024 Off-balance sheet commitments (dollars in thousands) Loan commitments $ 2,952,732 $ 2,910,550 Standby letters of credit 80,060 87,979 Commercial letters of credit 2,703 1,089 Credit derivatives 19,224 14,720 Contractual Obligations The following tables summarize the maturity of our contractual obligations to make future payments at December 31, 2025: As of December 31, 2025 1 Year or Less 2 - 3 Years 4 - 5 Years After 5 Years Total (dollars in thousands) Time deposits $ 1,545,913 $ 76,828 $ 12,185 $ 152 $ 1,635,078 Customer repurchase agreements 945,811 - - - 945,811 Undiscounted operating leases 3,441 5,922 5,008 36,184 50,555 Postretirement benefit contributions 6,531 13,752 15,664 39,387 75,334 Total contractual obligations $ 2,501,696 $ 96,502 $ 32,857 $ 75,723 $ 2,706,778 Holding Company Liquidity Management The Company is an independent entity distinct from the Bank and is therefore responsible for managing its own liquidity. Its primary source of funding comes from dividends paid by the Bank. However, there are statutory and regulatory restrictions that limit the Bank’s ability to distribute dividends to the Company. Under applicable Federal Reserve regulations, dividends paid by the Bank to the Company are generally limited to the Bank’s net income for the current year plus retained net income for the prior two years, without the need for prior regulatory approval. In addition, dividends paid by the Bank to the Company would be prohibited if they would cause the Bank’s capital to be reduced below applicable minimum capital requirements. During the year ended December 31, 2025, the Bank paid $320.0 million in dividends to the Company. During the year ended December 31, 2024, the Bank paid $245.0 million in dividends to the Company. As of December 31, 2025, the Bank had approximately $58.1 million of retained earnings that could be upstreamed to the Company through dividends without prior approval from the Federal Reserve. These earnings remain at the Bank level and are included in regulatory capital. The liquidity needs of the Company on an unconsolidated basis consist primarily of operating expenses, taxes, and dividends to stockholders. As of December 31, 2025, the Company's liquidity consisted primarily of $896.6 million in cash and cash equivalents and $0.7 million of investment securities. The Company also held a $1.0 billion unsecured intercompany loan receivable from the Bank. The Company’s operating expenses totaled $13.0 million for the year ended December 31, 2025. Dividends paid to stockholders totaled $246.5 million during the year ended December 31, 2025, which included a one‑time special dividend of $176.6 million. The Company had no repurchases of common stock during 2025. 81 Operational Risk Operational risk refers to the risk arising from inadequate or failed internal processes or systems, the misconduct or errors of people or adverse external events. We seek to mitigate operational risks by expanding and maintaining an experienced operations team to meet customer and company demands; providing employees with relevant job-specific training; working with our vendors to use antifraud protections; establishing security procedures for our clients; employing business continuity planning and testing designed to ensure the continued operation of core functions in the event of a business disruption; and engaging in periodic independent audits of our operations and operating controls. We also seek to mitigate operational risks related to misconduct by employees or contractors by implementing internal controls, including dual authorization for monetary transactions, conducting background and credit checks for new hires, screening contractors and third parties providing critical services using a vendor management process, and offering whistleblower protections to our employees to encourage the reporting of misconduct. Capital Our capital management strategy is designed to ensure that we have sufficient capital to support balance sheet growth while also maintaining sufficient reserves to absorb unexpected losses or write-downs that are risks inherent to the business of banking. We aim to strike a balance between maintaining higher capital levels to address unforeseen risks and achieving a reasonable return on the capital invested by our shareholders. The Bank is required to meet regulatory capital standards set by federal banking authorities. If the Bank fails to meet the minimum capital requirements, it could trigger mandatory actions, and possibly additional discretionary measures, by the state and federal regulators, which may have a significant impact on the Bank’s financial position. The Bank must comply with specific capital guidelines under the capital adequacy rules and the prompt corrective action framework, which involve quantitative measures based on the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting rules. Additionally, regulators assess the Bank’s capital levels and classifications based on qualitative factors such as risk weightings, the components of capital, and other items. The PCA framework is a regulatory tool used to monitor and manage the capital levels of banks. It is designed to maintain the stability and soundness of financial institutions, particularly banks, by requiring regulatory intervention when a bank’s capital falls below certain thresholds. The primary goal of PCA is to address financial distress early, before it results in more severe consequences. These regulations, enforced by federal banking agencies, classify banks based on their capital adequacy and impose escalating supervisory actions as a bank’s capital position deteriorates. Banks are categorized into five groups based on their capital ratios: • Well-Capitalized : Banks that meet or exceed all capital adequacy standards. These banks face minimal regulatory restrictions and are generally free to operate as usual. • Adequately Capitalized : Banks that meet minimum capital requirements. Banks in this category can still operate normally but may face restrictions on activities like accepting brokered deposits. • Undercapitalized : Banks that fail to meet the minimum capital requirements. Banks must submit a plan to restore capital and are subject to more severe restrictions, such as limits on asset growth and capital distributions (e.g., dividends or share buybacks). • Significantly Undercapitalized : Banks with very low capital, well below regulatory thresholds. These banks face the most stringent interventions, including the possibility of forced mergers, asset sales, or closure. They must also submit a detailed plan for capital restoration, which may require regulatory approval. • Critically Undercapitalized : Banks with the lowest capital levels, requiring immediate action. PCA regulations mandate that federal regulators take action when a bank’s capital falls below the required thresholds. This can involve measures such as restrictions on paying dividends or bonuses, restrictions on asset growth or expansion, enhanced monitoring and reporting requirements, required capital restoration plans, possible forced mergers or liquidation in extreme cases. At December 31, 2025 and December 31, 2024, the Company’s capital ratios exceeded the regulatory requirements and the Bank’s capital ratios exceeded the threshold for “well capitalized” status. We maintain excess capital, in part, to provide ourselves with flexibility when considering potential acquisition opportunities. Actual and required capital ratios were: 82 As of December 31, 2025: Actual Minimum capital adequacy requirement Well-capitalized requirement Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total risk-based capital (to risk-weighted assets): Company $ 3,633,280 29.29 % $ 992,260 8.00 % $ - - % Central Trust Bank 1,742,888 14.09 % 989,246 8.00 1,236,557 10.00 Tier 1 capital (to risk-weighted assets): Company 3,483,247 28.08 % 744,195 6.00 - - Central Trust Bank 1,592,855 12.88 % 741,934 6.00 989,246 8.00 Tier 1 common equity capital (to risk-weighted assets): Company 3,483,247 28.08 % 558,146 4.50 - - Central Trust Bank 1,592,855 12.88 % 556,451 4.50 803,762 6.50 Tier 1 capital (to average assets): Company 3,483,247 17.94 % 776,720 4.00 - - Central Trust Bank 1,592,855 8.21 % 776,286 4.00 970,358 5.00 As of December 31, 2024: Actual Minimum capital adequacy requirement Well-capitalized requirement Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total risk-based capital (to risk-weighted assets): Company $ 3,083,839 24.88 % $ 991,777 8.00 % $ - - % Central Trust Bank 1,706,617 13.81 % 1,028,943 8.00 % 1,286,179 10.00 Tier 1 capital (to risk-weighted assets): Company 2,929,055 23.63 % 743,833 6.00 % - - Central Trust Bank 1,551,833 12.56 % 771,707 6.00 % 1,028,943 8.00 Tier 1 common equity capital (to risk-weighted assets): Company 2,929,055 23.63 % 557,875 4.50 % - - Central Trust Bank 1,551,833 12.56 % 578,781 4.50 % 836,016 6.50 Tier 1 capital (to average assets): Company 2,929,055 15.69 % 746,578 4.00 % - - Central Trust Bank 1,551,833 8.33 % 745,433 4.00 % 931,792 5.00 As of December 31, 2025, we were not aware of any known trends, events or uncertainties that had or were reasonably likely to have a material impact on our liquidity. As of December 31, 2025, we had no material commitments for capital expenditures. Critical Accounting Policies and Estimates Our consolidated financial statements were prepared in accordance with GAAP and follow general practices within the industry in which we operate. Application of GAAP requires management to make certain estimates and judgments which affect the amounts reported in the consolidated financial statements. Critical accounting policies are those we believe are most important to the portrayal of our consolidated financial statements and require management to make estimates and judgments which are inherently complex, difficult, uncertain and can be subject to significant change over time. In the event that different assumptions or conditions were to prevail, and depending on the severity of such changes, adjustments to accounting estimates may be required. We have identified the following accounting policies and estimates which, due to their subjectivity and complexity, are critical to the understanding of the financial statements. Discussion below should be read in conjunction with "Note 1, Summary of Significant Accounting Policies,” to our consolidated financial statements contained elsewhere in this Annual Report on Form 10-K. 83 Allowance for Credit Losses on Loans The allowance for credit losses on loans is a valuation amount that is deducted from the amortized cost basis of loans not held at fair value to present the net amount expected to be collected over the contractual term of the loans. The allowance for credit losses on loans is measured using relevant information about past events, including historical credit loss experience on loans with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flow over the contractual term of the loans. An allowance is recognized upon origination or acquisition of a loan and is updated at subsequent reporting dates. The methodology is applied consistently for each reporting period and reflects management’s current expectations of credit losses. Changes to the allowance for credit losses on loans resulting from periodic evaluations are recorded through increases or decreases to the credit loss expense for loans, which is recorded in provision for credit losses on the consolidated statements of income. Loans that are deemed to be uncollectible are charged off against the related allowance for credit losses on loans. The Company maintains a policy to reverse accrued and unpaid interest when a loan is placed on non-accrual. Therefore, an allowance is not recorded for accrued interest. The allowance for credit losses on loans is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type, and expected credit loss patterns. The allowance for credit losses includes significant assumptions that are uncertain and reasonably likely to have a material impact, the most significant of which are loan loss rates and prepayment speeds. Assumptions are updated based on actual performance on an annual basis. We utilize a consensus macroeconomic forecast which relies on underlying statistical models to incorporate the economic impact into each loan portfolio. Management performs a qualitative analysis considering necessary adjustments based on the potential risks inherent in the macroeconomic forecast and impacts from loan portfolio changes, including concentrations, staffing, asset quality, and policy changes. Model validations are performed to provide an independent assessment of the framework and the model’s use in producing reasonable and supportable estimates. See "Note 3, Loans and Allowance for Credit Losses,” to our consolidated financial statements contained elsewhere in this Annual Report on Form 10-K. Non-GAAP Financial Measures Reconciliations To supplement our consolidated financial statements prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP) and should not be viewed in isolation from, or as a substitute for, GAAP results. We are presenting these non-GAAP financial measures because we believe, when taken collectively, they may be helpful to investors because they provide consistency and comparability with past financial performance by excluding certain items that may not be indicative of our business, results of operations or outlook. However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As a result, our non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for our consolidated financial statements presented in accordance with GAAP. We disclose net interest income and related ratios and analysis on a FTE basis, which may be considered non-GAAP financial measures. We believe this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures, including the efficiency ratio and net interest margin utilize net interest income on a taxable-equivalent basis. We report interest income, net interest income and net interest margin on an FTE basis using a blended federal and state effective marginal tax rate of 23.84% for the periods presented. The tax equivalent basis gives effect to the tax-exempt interest income, net of the disallowance of interest income, for federal income tax purposes related to certain tax-free assets. We believe these measures enhance comparability of net interest income arising from taxable and tax-exempt sources. 84 We evaluate our profitability and performance based on adjusted net income, adjusted total revenue, adjusted noninterest income, adjusted fee income and adjusted return on average total assets. We adjust each of these measures to exclude the loss on the expected sale of the consumer loan portfolio in one of our markets and adjustments that resulted from certain investment portfolio repositioning activities during the periods presented that we consider to be outside of the ordinary course of business. We believe this allows investors to assess our net income, total revenue and noninterest income exclusive of the impact of changes outside the ordinary course of business. Similarly, we evaluate our operational efficiency based on tangible noninterest expense and our adjusted efficiency ratio, which excludes the effect of amortization of intangibles (a non-cash expense item) as well as the exclusions mentioned previously in this paragraph, and includes the tax benefit associated with our tax-advantaged loans. We evaluate our financial condition based on the ratios of our tangible common equity to our tangible assets, tangible book value per share, return and adjusted return on average common equity, and return and adjusted return on average tangible common equity. Our calculation of these ratios allows readers to assess our stockholder’s equity, exclusive of the effect of our goodwill and other intangible assets. Reconciliations for each of these non-GAAP financial measures to the closest GAAP financial measures are included in the tables below. Each of the non-GAAP financial measures presented should be considered in context with our GAAP financial results included in this filing. At and for year ended December 31, 2025 2024 (dollars in thousands, except share and per share data) Interest income (FTE), net interest income (FTE) and net interest margin (FTE) Interest income $ 989,948 $ 904,977 Add: Tax-equivalent adjustment ¹ 6,218 5,861 Interest income (FTE) (non-GAAP) $ 996,166 $ 910,838 Net interest income {a} $ 789,665 $ 687,324 Add: Tax-equivalent adjustment ¹ 6,218 5,861 Net interest income (FTE) (non-GAAP) {b} $ 795,883 $ 693,185 Average interest-earning assets {c} $ 18,363,241 $ 17,885,506 Net interest margin {a ÷ c} 4.30 % 3.84 % Net interest margin (FTE) (non-GAAP) {b ÷ c} 4.33 % 3.88 % ¹ Effective marginal tax rate of 23.84% used for all periods. Adjusted noninterest income, adjusted total revenue and adjusted fee income ratio Noninterest income {a} $ 231,694 $ 210,390 Less: Loss on expected sale of consumer lease portfolio (13,612) - Less: Investment securities (6,811) (36,661) Adjusted noninterest income (non-GAAP) {b} $ 252,117 $ 247,051 Net interest income $ 789,665 $ 687,324 Noninterest income 231,694 210,390 Total revenue {c} 1,021,359 897,714 Less: Loss on expected sale of consumer lease portfolio (13,612) - Less: Investment securities (6,811) (36,661) Adjusted total revenue (non-GAAP) {d} $ 1,041,782 $ 934,375 Fee income ratio {a ÷ c} 22.7 % 23.4 % Adjusted fee income ratio (non-GAAP) {b ÷ d} 24.2 % 26.4 % 85 At and for year ended December 31, 2025 2024 (dollars in thousands, except share and per share data) Tangible noninterest expense, adjusted total revenue (FTE) and efficiency ratio (FTE) Net interest income $ 789,665 $ 687,324 Noninterest income 231,694 210,390 Total revenue {a} 1,021,359 897,714 Less: Loss on expected sale of consumer lease portfolio (13,612) - Less: Investment securities (6,811) (36,661) Add: Tax equivalent adjustment ¹ 6,218 5,861 Adjusted total revenue (FTE) (non-GAAP) {b} $ 1,048,000 $ 940,236 Noninterest expense {c} $ 505,490 $ 489,407 Less: Amortization of intangible assets 3,227 3,388 Tangible noninterest expense (non-GAAP) {d} $ 502,263 $ 486,019 Efficiency ratio {c ÷ a} 49.5 % 54.5 % Efficiency ratio (FTE) (non-GAAP) {d ÷ b} 47.9 % 51.7 % ¹ Effective marginal tax rate of 23.84% used for all periods. Adjusted net income and adjusted return on average total assets Net income {a} $ 390,853 $ 305,810 Add: Loss on expected sale of consumer lease portfolio, net of provision and taxes ¹ ² 6,563 - Add: Investment securities loss, net of taxes ¹ 5,187 27,921 Adjusted net income (non-GAAP) {b} $ 402,603 $ 333,731 Average total assets {c} $ 19,300,059 $ 18,781,218 Return on average total assets {a ÷ c} 2.03 % 1.63 % Adjusted return on average total assets (non-GAAP) {b ÷ c} 2.09 % 1.78 % ¹ Effective marginal tax rate of 23.84% used for all periods. ² The second quarter of FY25 includes a $13.6 million loss on the sale of the consumer lease portfolio recognized in other noninterest income and a $5.0 million release of provision, which resulted in a net pre-tax loss of $8.6 million. Net of taxes, at a tax rate of 23.84%, the total impact to net income was $6.6 million. Adjusted net income (earnings) per share Net income $ 390,853 $ 305,810 Less: Dividends declared on forfeitable non-vested restricted stock 667 120 Net income allocated to common stock {a} $ 390,186 $ 305,690 Net income $ 390,853 $ 305,810 Add: Loss on expected sale of consumer lease portfolio, net of provision and taxes ¹ ² 6,563 - Add: Investment securities loss, net of taxes ¹ 5,187 27,921 Adjusted net income (non-GAAP) 402,603 333,731 Less: Dividends declared on forfeitable non-vested restricted stock 667 120 Adjusted net income allocated to common stock (non-GAAP) {b} $ 401,936 $ 333,611 Weighted average fully diluted shares {c} 222,352 220,587 Net income per share - diluted {a ÷ c} $ 1.75 $ 1.39 Adjusted net income per share - diluted (non-GAAP) {b ÷ c} $ 1.81 $ 1.51 ¹ Effective marginal tax rate of 23.84% used for all periods. ² The second quarter of FY25 includes a $13.6 million loss on the sale of the consumer lease portfolio recognized in other noninterest income and a $5.0 million release of provision, which resulted in a net pre-tax loss of $8.6 million. Net of taxes, at a tax rate of 23.84%, the total impact to net income was $6.6 million. 86 At and for year ended December 31, 2025 2024 (dollars in thousands, except share and per share data) Tangible common equity, tangible book value per share and tangible common equity to tangible assets Total stockholders' equity {a} $ 3,783,977 $ 3,110,661 Less: Goodwill and other intangible assets 351,664 354,890 Tangible common equity (non-GAAP) {b} $ 3,432,313 $ 2,755,771 Total shares of Class A common stock outstanding {c} 241,106 220,385 Book value per share {a ÷ c} $ 15.69 $ 14.11 Tangible book value per share (non-GAAP) {b ÷ c} $ 14.24 $ 12.50 Total assets {d} $ 20,751,978 $ 19,242,543 Less: Goodwill and other intangible assets 351,664 354,890 Tangible assets (non-GAAP) {e} $ 20,400,314 $ 18,887,653 Total stockholders' equity to total assets {a ÷ d} 18.2 % 16.2 % Tangible common equity to tangible assets (non-GAAP) {b ÷ e} 16.8 % 14.6 % Tangible net income, adjusted tangible net income, average tangible common equity, adjusted return on average common equity, return on average tangible common equity and adjusted return on average tangible common equity Net income {a} $ 390,853 $ 305,810 Add: Amortization of intangible assets, net of taxes ¹ 2,458 2,580 Tangible net income (non-GAAP) 393,311 308,390 Add: Loss on expected sale of consumer lease portfolio, net of provision and taxes ¹ ² 6,563 - Add: Investment securities loss, net of taxes ¹ 5,187 27,921 Adjusted tangible net income (non-GAAP) {b} $ 405,061 $ 336,311 Average common equity {c} $ 3,285,187 $ 2,937,975 Less: Average goodwill and other intangible assets 353,392 356,677 Average tangible common equity (non-GAAP) {d} $ 2,931,795 $ 2,581,298 Return on average common equity {a ÷ c} 11.9 % 10.4 % Adjusted return on average common equity (non-GAAP) {b ÷ c} 12.3 % 11.4 % Return on average tangible common equity (non-GAAP) {a ÷ d} 13.4 % 11.9 % Adjusted return on average tangible common equity (non-GAAP) {b ÷ d} 13.8 % 13.0 % ¹ Effective marginal tax rate of 23.84% used for all periods. ² The second quarter of FY25 includes a $13.6 million loss on the sale of the consumer lease portfolio recognized in other noninterest income and a $5.0 million release of provision, which resulted in a net pre-tax loss of $8.6 million. Net of taxes, at a tax rate of 23.84%, the total impact to net income was $6.6 million. Item 7A. Quantitative and Qualitative Disclosures About Market Risk The information required by this item is disclosed within the Market Risk section of Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Annual Report on Form 10-K. 87