Central Bancompany, Inc. 10-K

Item 8. Financial Statements and Supplementary Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors Central Bancompany, Inc.: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Central Bancompany, Inc. and subsidiaries (the Company) as of December 31, 2025 and December 31, 2024, the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the company as of December 31, 2025 and December 31, 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. Basis for Opinion These consolidated financial statements are the responsibility of the company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. /s/ KPMG LLP We have served as the company’s auditor since 1973. Kansas City, Missouri March 25, 2026 88 CENTRAL BANCOMPANY, INC. AND SUBSIDIARIES Consolidated Balance Sheets December 31, 2025 2024 (dollars in thousands, except share and per share data) Assets Cash and due from banks $ 258,588 $ 265,209 Short-term earning assets 1,805,555 976,599 Interest-bearing deposits 1,039 699 Investment securities: Available for sale 6,372,463 5,603,723 Held to maturity, net of allowance for credit losses of $ 10 and $ 21 , (and fair value of $ 1,700 and $ 3,231 ), as of December 31, 2025 and December 31, 2024, respectively 1,689 3,225 Equity 48,200 48,770 Trading - 666 Total investment securities 6,422,352 5,656,384 Loans held for investment 11,434,605 11,624,091 Less allowance for credit losses ( 149,674 ) ( 154,279 ) Net loans 11,284,931 11,469,812 Loans held for sale 54,119 34,264 Land, buildings, and equipment, net 215,931 215,316 Deferred tax assets, net - 23,332 Goodwill and intangibles 351,664 354,890 Other assets 357,799 246,038 Total assets $ 20,751,978 $ 19,242,543 Liabilities and Stockholders' Equity Deposits: Noninterest-bearing demand $ 5,615,652 $ 5,245,705 Savings and interest-bearing demand 8,611,895 8,043,244 Time 1,635,078 1,696,899 Total deposits 15,862,625 14,985,848 Federal funds purchased and customer repurchase agreements 1,011,851 1,007,295 Total customer funds 16,874,476 15,993,143 Deferred tax liabilities, net 11,745 - Other liabilities 81,780 138,739 Total liabilities 16,968,001 16,131,882 Stockholders' equity: Preferred stock, $ 0.01 par value; 50,000,000 shares authorized; 0 shares issued, as of December 31, 2025 and December 31, 2024, respectively - - Class A voting common stock, $ 0.01 par value; 500,000,000 shares authorized; 318,247,550 and 297,802,850 shares issued, as of December 31, 2025 and December 31, 2024, respectively 3,182 2,978 Class B nonvoting common stock, $ 0.01 par value; 50,000,000 shares authorized; 0 shares issued, as of December 31, 2025 and December 31, 2024, respectively - - Capital surplus 419,421 13,319 Retained earnings 3,477,408 3,333,669 Accumulated other comprehensive (loss) ( 16,872 ) ( 139,925 ) Total stockholder's equity before treasury stock 3,883,139 3,210,041 Less treasury stock of 77,141,300 and 77,418,100 shares of Class A voting common stock as of December 31, 2025 and December 31, 2024, respectively ( 99,162 ) ( 99,380 ) Total stockholders' equity 3,783,977 3,110,661 Total liabilities and stockholders' equity $ 20,751,978 $ 19,242,543 See accompanying notes to consolidated financial statements 89 CENTRAL BANCOMPANY, INC. AND SUBSIDIARIES Consolidated Statements of Income Years Ended December 31, 2025 2024 (dollars in thousands, except per share data) Interest income: Loans $ 712,377 $ 708,386 Investment securities 237,258 151,489 Interest-bearing cash and bank deposits 40,313 45,102 Total interest income 989,948 904,977 Interest expense: Deposits 175,200 190,432 Federal funds purchased and customer repurchase agreements 25,083 27,221 Total interest expense 200,283 217,653 Net interest income 789,665 687,324 Provision for credit losses 9,311 14,587 Net interest income after provision for credit losses 780,354 672,737 Other income: 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 (loss) income ( 6,917 ) 9,667 Total other income 231,694 210,390 Other expenses: 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 costs 30,747 32,002 Other expenses 62,044 62,589 Total other expenses 505,490 489,407 Income before income taxes 506,558 393,720 Income taxes 115,705 87,910 Net income $ 390,853 $ 305,810 Net income per common share - basic $ 1.75 $ 1.39 Net income per common share - diluted $ 1.75 $ 1.39 See accompanying notes to consolidated financial statements 90 CENTRAL BANCOMPANY, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income Years Ended December 31, 2025 2024 (dollars in thousands) Net income $ 390,853 $ 305,810 Reclassification adjustment for net losses on AFS securities included in net income, net of tax 5,270 39,032 Unrealized gain on AFS securities, net of tax 104,211 70,574 Change in pension surplus, net of tax 13,572 18,061 Other comprehensive income 123,053 127,667 Total comprehensive income $ 513,906 $ 433,477 See accompanying notes to consolidated financial statements 91 CENTRAL BANCOMPANY, INC. AND SUBSIDIARIES Consolidated Statement of Changes in Stockholders' Equity (Dollars in thousands, except for share and per share data) Class A Common Stock Capital Surplus Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Total (dollars in thousands) Balance at December 31, 2023 $ 2,978 $ 10,630 $ 3,085,304 $ ( 87,522 ) $ ( 267,592 ) $ 2,743,798 Net income - - 305,810 - - 305,810 Other comprehensive income - - - - 127,667 127,667 Purchase of treasury stock - - - ( 12,143 ) - ( 12,143 ) Cash dividends paid on common stock ($ 0.26 per share) - - ( 57,445 ) - - ( 57,445 ) Stock-based compensation - 3,458 - - - 3,458 Issuance under equity compensation plans, net - ( 769 ) - 285 - ( 484 ) Balance at December 31, 2024 $ 2,978 $ 13,319 $ 3,333,669 $ ( 99,380 ) $ ( 139,925 ) $ 3,110,661 Net income - - 390,853 - - 390,853 Other comprehensive income - - - - 123,053 123,053 Purchase of treasury stock - - - - - - Cash dividends paid on common stock ($ 1.12 per share) - - ( 247,185 ) - - ( 247,185 ) Issuance of common stock, net 204 402,908 - - - 403,112 Stock-based compensation - 3,117 - - - 3,117 Issuance under equity compensation plans, net - 77 71 218 - 366 Balance at December 31, 2025 $ 3,182 $ 419,421 $ 3,477,408 $ ( 99,162 ) $ ( 16,872 ) $ 3,783,977 See accompanying notes to consolidated financial statements 92 CENTRAL BANCOMPANY, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows Years Ended December 31, 2025 2024 (dollars in thousands) Cash flows from operating activities: Net income $ 390,853 305,810 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 20,008 19,204 Net (accretion) amortization of discounts and premiums ( 20,705 ) 7,640 Deferred income taxes ( 3,441 ) ( 6,660 ) Provision for credit losses 9,311 14,587 Net gain on sale of loans ( 29,742 ) ( 28,964 ) Net change in trading debt securities 666 ( 670 ) Net investment securities losses 6,811 36,661 Originations of mortgage loans held for sale ( 1,278,712 ) ( 1,278,005 ) Proceeds from sales of mortgage loans held for sale 1,302,110 1,302,861 Stock-based compensation 3,117 3,458 (Increase) decrease in other assets ( 112,820 ) 8,312 (Decrease) in other liabilities ( 39,292 ) ( 20,937 ) Net cash provided by operating activities 248,164 363,297 Cash flows from investing activities: Purchase of available-for-sale securities ( 2,566,281 ) ( 3,761,831 ) Purchase of equity securities ( 234 ) ( 10,590 ) Proceeds from sales of available-for-sale securities 315,180 1,044,686 Proceeds from sales of equity securities 913 26,654 Proceeds from maturities of available-for-sale securities 1,639,896 2,227,755 Proceeds from maturities of held-to-maturity securities 1,548 836 Net change in interest-bearing deposits ( 340 ) 489 Net decrease (increase) in loans 161,913 ( 148,660 ) Purchase of land, buildings, and equipment ( 16,771 ) ( 25,158 ) Proceeds from sale of land, buildings, and equipment 433 11,911 Net cash (used in) investing activities ( 463,743 ) ( 633,908 ) Cash flows from financing activities: Increase (decrease) in deposits 938,598 ( 53,155 ) (Decrease) increase in time deposits ( 61,821 ) 169,493 Increase (decrease) in federal funds purchased and customer repurchase agreements 4,556 ( 218,872 ) Dividends paid ( 246,531 ) ( 57,532 ) Purchase of treasury stock - ( 12,143 ) Proceeds from stock issuance, net 403,112 - Net cash provided by (used in) financing activities 1,037,914 ( 172,209 ) Net increase (decrease) in cash and cash equivalents 822,335 ( 442,820 ) Cash and cash equivalents at beginning of year 1,241,808 1,684,628 Cash and cash equivalents at end of year $ 2,064,143 1,241,808 Cash and due from banks $ 258,588 265,209 Short-term interest-bearing deposits 1,805,215 969,416 Federal funds sold and securities purchased under agreements to resell 340 7,183 Total cash and cash equivalents $ 2,064,143 1,241,808 Supplemental disclosure of cash flow information: Interest paid $ 199,298 216,063 Income taxes paid 144,380 92,020 Loans transferred to foreclosed assets held for sale 4,442 4,938 See accompanying notes to consolidated financial statements 93 CENTRAL BANCOMPANY, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies Principles of Consolidation and Subsequent Events The accompanying consolidated financial statements include the accounts of Central Bancompany, Inc., and its subsidiaries. Central Bancompany owns all the outstanding capital stock of The Central Trust Bank, which is headquartered in Missouri. All intercompany accounts and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the current year presentation. Such reclassifications had no effect on net income, total assets, or total liabilities. The Company evaluated subsequent events for recognition or disclosure through the date prior to on which the consolidated financial statements were issued. This evaluation is performed by management in coordination with executive management. Use of Estimates The Company follows GAAP and reporting practices applicable to the banking industry. The preparation of the financial statements under GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and notes. These estimates are based on information available to management at the time the estimates are made. While the consolidated financial statements reflect management’s best estimates and judgments, actual results could differ. Significant estimates include, but are not limited to, the allowance for credit losses on loans and investment securities, the valuation of investment securities and mortgage servicing rights, goodwill impairment assessments, and pension obligations. These estimates are based on management’s evaluation of historical experience, current conditions, and reasonable and supportable forecasts. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company considers cash and due from banks, short-term interest-bearing deposits maturing within 90 days, and federal funds sold and securities purchased under agreements to resell maturing within 90 days to be cash equivalents. Interest-bearing deposits are held at other financial institutions and are not considered cash and cash equivalents. Investment Securities Held-to-maturity securities are those that the Company has the positive intent and ability to hold to maturity. HTM securities are recorded at amortized cost, net of allowance for credit losses. Trading account securities (“Trading”) are bought and held principally for the purpose of selling them in the near term. Equity securities (“Equity”) include common and preferred stock with readily determinable fair value as well as certain equity securities without a readily determinable fair value. All other debt securities held by the Company are classified as available-for-sale. Trading, Equity, and AFS securities are recorded at fair value. For both Trading and Equity securities, gains and losses, both realized and unrealized, are included in earnings. Unrealized gains and losses, net of related tax effect, on AFS securities are excluded from earnings and are reported as a separate component of accumulated other comprehensive income (loss) until realized. Realized gains and losses upon disposition of AFS securities are included in income using the specific-identification method for determining the cost of the securities sold. Purchased premiums and discounts on investment securities are amortized/accreted into interest income using the constant yield method based upon the remaining contractual maturity of the asset, adjusted for any expected prepayments. For certain callable debt securities purchased at a premium, the amortization is recorded to the earliest call date. For mortgage and asset-backed securities, prepayment experience is evaluated monthly to determine if a change in a bond's estimated remaining life is necessary. A corresponding adjustment is then made in the related amortization of premium or discount accretion. 94 Other securities include Federal Reserve and Federal Home Loan Bank stock, which represent equity interests the Company is required to hold in the Federal Reserve Banks and Federal Home Loan Banks. These amounts are carried at cost as they do not have a readily determinable fair value because ownership of these shares is restricted, and they lack a market. Purchases and sales of securities are recognized on a trade date basis. A receivable or payable is recognized for transactions pending settlements. Allowance for Credit Losses on Available-for-Sale Debt Securities For AFS debt securities in an unrealized loss position, the entire loss in fair value is required to be recognized in current earnings if the Company intends to sell the securities or believes it more likely than not that it will be required to sell the security before the anticipated recovery. Any time the Company does not expect to recover the amortized cost basis, a credit loss is deemed to have occurred and an allowance for credit losses is recorded. The allowance for credit losses is limited by the amount that the fair value is less than the amortized cost basis. 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 a range of credit and loss assumptions and does not rely primarily on credit ratings. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit losses on the consolidated statements of income. Losses are charged against the allowance for credit losses on securities when management believes the inability to collect an AFS security is confirmed or when either of the conditions regarding intent or requirement to sell is met. Accrued interest receivable on available for sale debt securities is reported in other assets on the consolidated balance sheet. The Company has elected the practical expedient to exclude the accrued interest from all required disclosures of amortized cost of debt securities. Additionally, an election was made not to measure an allowance for credit losses for accrued interest receivables. Interest accrued but not received is reversed against interest income. Loans Held for Sale Loans held for sale are accounted for at fair value pursuant to the fair value option permitted by ASC 825, Financial Instruments. The Company elected to take the fair value option for loans held for sale permitted by ASC 825, Financial Instruments beginning January 1, 2020. The fair value is based on secondary market prices for loans with similar characteristics, including an adjustment for embedded servicing value. Gains and losses from the changes in fair value are included in mortgage banking revenues. Deferred fees and costs related to these loans are recognized as part of the cost basis of the loan at the time it is sold. Interest income related to loans held for sale is accrued based on the principal amount outstanding and the loan's contractual interest rate. Loans For purposes of these financial statements, the loan portfolio collectively includes all loans and leases the Company holds for investment, hereinafter referred to as “loans.” Loans that the Company intends and has the ability to hold for the foreseeable future or until maturity or payoff are carried at amortized cost. Amortized cost represents the outstanding principal balance of loans, net of any deferred origination fees and related costs. The Company has elected to exclude all accrued interest receivable from the disclosures of amortized cost and has opted not to establish an allowance for credit losses related to accrued interest receivables. Interest on loans is accrued and credited to income based on the principal amount outstanding, using primarily a simple interest calculation. Loan and commitment fees, net of associated costs, are deferred and amortized over the life of the loans, shown as an adjustment to interest income. The Company applies the straight-line method for amortization, which approximates the level yield method. Amortization does not anticipate loan prepayments, and any unamortized fees are recognized in full at the time of payoff. The accrual of interest on loans is discontinued when, (a) in management’s judgment, the interest is uncollectible in the normal course of business; or (b) when they become 90 days or more past due, unless they are well‑secured and in the process of collection. When a loan is placed on non-accrual 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 non-accrual 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. 95 Loan Modifications and Borrower Financial Difficulty The Company may renegotiate the terms of existing loans during the normal course of business. When modifications are made to the terms of an existing loan, the Company assesses whether a borrower is experiencing financial difficulty. This assessment is performed in accordance with ASC 326 and considers both quantitative and qualitative indicators. The Company considers delinquency status, cash flow capacity, collateral performance, and the borrower’s ability to obtain alternative financing at market terms. Loan modifications are subject to established credit approval and oversight processes. 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 reflects management’s best estimate of expected credit losses, considering portfolio segmentation, historical loss experience, current conditions, and reasonable and supportable forecasts. Management applies qualitative adjustments to model outputs when appropriate to address factors not fully captured by the quantitative models. An allowance will be created upon origination or acquisition of a loan and is updated at subsequent reporting dates. The methodology is applied consistently for each reporting period. 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 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 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. Liability for Unfunded Lending Commitments The Company’s accrual for credit risk associated with unfunded lending commitments is maintained at a level that is appropriate to cover estimated losses associated with credit instruments that are not currently recognized as assets such as loan commitments, standby letters of credit or guarantees that are not unconditionally cancellable by the bank. This accrual is included in other liabilities in the consolidated balance sheets with changes to the liability recorded through increases or decreases to the provision for credit losses on the consolidated statements of income. The methodology used to measure credit losses for unfunded lending commitments is the same as the methodology used for loans, however, the estimate of credit risk for unfunded lending commitments takes into consideration the likelihood that funding will occur. The liability for unfunded lending commitments excludes any exposures that are unconditionally cancellable by the Company. Land, Buildings, and Equipment Land, buildings, and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line or declining balance method depending upon the type of asset. The Company generally assigns depreciable lives of 25 - 30 years for buildings; 15 years for building improvements; 15 years for land improvements; and 3 - 7 years for furniture, equipment, and software. Leasehold improvements are assigned depreciable lives of the shorter of the lease term or 15 years. Maintenance and repair costs are charged to expense as incurred. Major improvements are individually considered and are capitalized or expensed as the facts dictate. Goodwill and Other Intangible Assets Goodwill represents the excess of cost over equity in net assets of entities acquired. The Company accounts for goodwill in accordance with ASC 350, Intangibles – Goodwill and Other . Under ASC 350, goodwill and intangible assets that have indefinite useful lives are not amortized but rather tested at least annually for impairment. Intangible assets that have finite useful lives continue to be amortized over 7 to 20 years. The Company performs an annual qualitative evaluation of goodwill. Based on the results of this qualitative assessment, if the Company concludes it is more likely than not that a reporting unit's fair value is less than its carrying amount, a quantitative analysis is performed. If the fair value of a reporting unit is less than the carrying amount, an impairment has occurred and is measured as the amount by which the carrying amount exceeds the reporting unit's fair value. During 2025, the Company completed its annual qualitative impairment assessment and concluded that it was not more likely than not that the fair value of any of its reporting units was below its respective carrying amount. The Company has not recorded impairment resulting from goodwill impairment tests during the years ended December 31, 2025 and 2024. 96 Foreclosed Assets Foreclosed assets represent property that has been repossessed following default on a loan. These assets primarily consist of commercial and residential real estate, as well as other non-real estate property such as automobiles. Upon foreclosure, the assets are initially recognized at fair value, less estimated costs to sell, with any necessary valuation adjustments reflected in the allowance for credit losses. The fair value of foreclosed assets is generally determined based on independent appraisals, third-party price opinions, or internally developed pricing models. These fair value estimates are reviewed and updated periodically to help ensure they accurately reflect market conditions. Subsequent declines in fair value below the carrying amount are recognized through valuation allowances, which may be reversed if future increases in fair value occur. Any adjustments to the carrying value, along with realized gains or losses on the sale of foreclosed assets, as well as net operating expenses related to these assets, are recorded within other expenses. Income Taxes The Company and its subsidiaries file a consolidated federal income tax return. State and local income tax returns are filed on a combined, consolidated, or separate return basis based upon each jurisdiction’s laws and regulations. Deferred tax assets and liabilities are recognized based upon the differences between the values of assets and liabilities as recognized in the financial statements and their related tax basis using enacted tax rates in effect for the year in which the differences are expected to be recovered or settled. The effect of changes in statutory tax rates on the measurement of deferred tax assets and liabilities is recognized through income tax expense in the period the change is enacted. A valuation allowance is provided when it is more likely than not that some portion of the entire deferred tax asset may not be realized. Revenue Recognition Revenue should be recognized to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue from financial instruments, including revenue from loans and securities, is not included within this guidance. Noninterest revenue items that are subject to this guidance mainly include fees for bank card, trust, deposit account services, and consumer brokerage services and are discussed below and summarized in the table that follows. Fees for Fiduciary Services Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts, settlement of estates, and other similar duties where Central Trust Company serves in a fiduciary capacity. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the average monthly value of the assets under management and the applicable fee rate or otherwise as negotiated as a fee for service. Other transactional-based services, including but not limited to, tax return preparation and financial planning are available. The performance obligation for these services is generally satisfied, and related revenue recognized, at the completion of the service. Service Charges and Commissions Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company's performance obligation for account analysis and monthly service fees is generally satisfied, and the related revenue recognized, when the service is provided and received immediately or in the following month. The Company provides corporate cash management services to its business customers to meet their various transaction processing needs. Such services include deposit and check processing, lockbox, remote deposit, reconciliation, online banking, and other similar transaction processing services. The Company maintains unit prices for each type of service, and the customer is billed based on transaction volumes processed monthly. Overdraft fees are charged to customers when daily checks and other withdrawals to customers’ accounts exceed balances on hand. The daily overdraft charge is calculated and the fee is posted to the customer’s account each day. Other deposit related fees such as check orders, foreign ATM processing fees, stop payment fees, and cashier’s checks are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, when the transaction is processed. 97 Payment Services Revenue Payment services revenue includes bankcard transaction fees, exchange, and other service charges that are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as MasterCard. The fees earned are established by the settlement network and are dependent on the type of transaction processed but are typically based on a per unit charge. Interchange income is settled daily through the networks. Brokerage Services Brokerage services revenue is comprised of commissions received upon the execution of purchases and sales of mutual fund shares and equity securities, in addition to certain limited insurance products in an agency capacity. Also, fees are earned on managed advisory programs. Payment from the customer is upon settlement for purchases and sales of securities, upon purchase for annuities and insurance products, and upon inception of the service period for advisory programs. Other Non-Interest Income from Contracts with Customers Other non-interest income consists of gains on foreclosed assets, bank premises and equipment, official check fees, international currency commissions, and other miscellaneous consumer product fees. Performance obligations for these services consist mainly of the execution of transactions for the sale of various properties. Fees from these revenue sources are recognized when the performance obligation is completed, at which time cash is received by the Company. Comprehensive Income Comprehensive income is defined as the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from nonowner sources. For the Company, this includes net income, changes in unrealized gains and losses on AFS investment securities, and the net periodic benefit/cost related to the Company’s defined benefit pension plan, net of applicable tax effects. The amounts recognized in accumulated other comprehensive loss related to the defined benefit pension plan are adjusted out of accumulated other comprehensive loss when they are subsequently recognized as components of net periodic benefit cost. Mortgage Banking The fair value of retained mortgage servicing rights related to loans originated and sold is capitalized as an asset in accordance with ASC 860, Accounting for Servicing of Financial Assets , thereby increasing the gain on sale of the loan. Such mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income, considering appropriate prepayment assumptions. Any remaining unamortized amount is charged to expense if the related loan is repaid prior to maturity. Management monitors the capitalized mortgage servicing rights on a disaggregated basis for impairment based on the fair value of those rights. Any impairment is recognized through a valuation allowance. Derivative Financial Instruments ASC 815, Derivatives and Hedging , establishes accounting and reporting standards for derivative instruments, including certain derivatives embedded in other contracts, and for hedging activities. In accordance with ASC 815, the Company records all derivative instruments at fair value on the consolidated balance sheets. Mortgage Banking Derivatives : The Company’s mortgage banking operations involve the origination of mortgage loans under interest rate lock commitments that are intended for sale into the secondary market. IRLCs represent commitments to originate loans with interest rates determined prior to funding and are accounted for as derivatives. The Company generally does not enter into sales commitments for these loans at the time the IRLC is issued; instead, it commits to sell the loans after funding. To economically hedge the interest rate risk associated with IRLCs and funded loans awaiting sale, the Company enters into free‑standing derivative instruments, primarily commitments to sell TBA mortgage‑backed securities. The value of TBA commitments generally moves inversely with fixed‑rate mortgage loan values, thereby providing an economic offset to changes in interest rates. 98 The Company also sells certain mortgage loans on a mandatory delivery basis and enters into short positions in mortgage‑backed securities to hedge interest rate exposure associated with these transactions. IRLCs and related derivative instruments are recorded at fair value in other assets or other liabilities, with changes in fair value recognized in mortgage banking revenues, net. Customer Repurchase Agreements The Company engages in customer transactions involving the sale of securities under agreements to repurchase as of a specified future date. Such repurchase agreements are considered collateralized financing transactions, not as a sale of the underlying securities. The obligation to repurchase assets sold is reflected as a liability in the consolidated balance sheet of the Company at the amount of cash received in the transaction. The fair value of collateral provided to a counterparty is monitored daily, and collateral is returned or provided by the Company in order to maintain full collateralization for these transactions. Stock Based Compensation The Company’s stock-based compensation plan, as detailed in "Note 11, Stock-Based Compensation,” to our consolidated financial statements is accounted for in accordance with the guidance set forth in ASC 718, Compensation—Stock Compensation. Specifically, the Company adheres to the provisions outlined in ASC 718-10-30-3 and ASC 718-10-35-2, which require the measurement of stock-based compensation based on the fair value of the awards granted at the grant date. The fair value for restricted stock awards (RSAs) is based on the weighted average market price of the Company’s common stock during a specified period that is within 30 days before or 30 days after grant date, as determined by the Board of Directors in its sole discretion. The cost of stock-based compensation is recognized over the requisite service period, which is typically the vesting period, in accordance with the principles of ASC 718. The Company recognizes stock-based compensation expense in the consolidated statements of income within “Salaries and Benefits.” The expense is recognized over the vesting period, with the total expense being adjusted for forfeitures only when they occur, in line with the policy outlined under ASC 718. Forfeitures are accounted for on an actual basis, and no estimated forfeitures are included in the initial measurement of compensation cost. Treasury Stock The Company accounts for treasury stock under the cost method, as outlined in ASC 505-30, Equity—Treasury Stock. Purchases of the Company’s common stock are recorded at cost, which includes all direct costs associated with the acquisition. When treasury stock is reissued, the carrying value of treasury stock is reduced based on the average cost basis of the shares held in treasury. Income Per Share The Company applies the two-class method for the computation of income per share, as prescribed by ASC 260, Earnings Per Share. The two-class method is an earnings allocation formula that determines income per share for common stock and for participating securities, according to dividends declared and participation rights in undistributed earnings. The Company’s nonvested share-based awards vest based on the satisfaction of service conditions and are subject to forfeiture until such conditions are met. These nonvested share-based awards are not considered participating securities for the purpose of calculating income per share and as such do not participate in undistributed earnings. However, dividends or dividend equivalents declared or paid on nonvested share-based awards with forfeitable dividend rights are deducted from the income available to common stockholders. Such amounts reflect dividends that have been allocated to other-than-common stockholders and reduce the amount of income available for distribution to common stockholders. Recent Accounting Pronouncements Income Taxes – In December 2024, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures . This update establishes additional disclosure requirements regarding rate reconciliation and income taxes paid. This update also removes certain existing disclosure requirements. This update is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments in this update have been applied on a retrospective basis. Other than the inclusion of additional disclosures, the change did not have a significant impact on the Company’s consolidated financial statements. 99 Income Statement Reporting – In November 2024, The FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this update require new disclosures providing further detail of a company's income statement expense items. This update is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this update should be applied on a prospective basis. The Company is currently assessing the impact ASU 2024-03 will have on its expense disclosures. Credit Losses – In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets . This update allows entities to use current, static conditions instead of forecasting future economic conditions to determine expected credit losses for accounts receivable assets and contra assets. This update is effective for annual periods beginning after December 15, 2025, including interim periods within those fiscal years. The Company is currently assessing the impact ASU 2025-05 will have on its allowance for credit losses. Intangible Assets – In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software . This update replaces the current timing of capitalization for internal-use software expenditures, which uses the three-stage approach (preliminary, application, post-implementation). The update now allows entities to capitalize costs when management commits to funding and it is probable the project will be completed and perform the intended function (the “probable-to-complete” threshold). This update is effective for annual periods beginning after December 15, 2027, including interim periods within those fiscal years. The Company is currently assessing the impact ASU 2025-06 will have on its income statement. Derivatives and Hedging – In September 2025, the FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract . This update refines the scope of Topic 815 by adding an exception from derivative accounts for contracts that are not exchange traded and have underlying assets based on operations or activities specific to one of the parties to the contract. It also clarifies that revenue guidance in Topic 606 applies initially to share-based noncash consideration received from a customer for the transfer of goods or services. This update is effective for annual periods beginning after December 15, 2026, including interim periods within those fiscal years. The Company is currently assessing the impact ASU 2025-07 will have on its consolidated financial statements. Purchased Loans – In November 2025, the FASB issued ASU 2025-08, Financial Instruments – Credit Losses (Topic 326): Purchased Loans . This update expands the method used for Purchased Credit Deteriorated (PCD) loans to Purchased Seasoned Loans (PSL), allowing the initial allowance for credit losses to be added to the purchase price, rather than recognized as an immediate expense. This applies to loans that are acquired in a business combination or purchased more than 90 days after origination. This update is effective for annual periods beginning after December 15, 2026, including interim periods within those fiscal years. The Company is currently assessing the impact ASU 2025-08 will have on its allowance for credit losses. Derivatives and Hedging - In November 2025, the FASB issued ASU 2025‑09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements . This update refines hedge accounting to better align financial reporting with risk‑management activities. Enhancements include expanded eligibility for certain hedging strategies and simplifications to ongoing hedge effectiveness assessments. This update is effective for annual periods beginning after December 15, 2026, including interim periods within those fiscal years. The Company is assessing the impact ASU 2025‑09 will have on its risk‑management accounting strategies. Interim Reporting - In December 2025, the FASB issued ASU 2025‑11, Interim Reporting (Topic 270): Narrow‑Scope Improvements . This update enhances interim disclosure requirements and clarifies the application of certain interim reporting principles. It aims to improve the usefulness and consistency of interim financial information across entities. The update is effective for annual periods beginning after December 15, 2027, including interim periods within those fiscal years. The Company is currently assessing the impact ASU 2025‑11 will have on its interim reporting disclosures. 100 (2) Investment Securities The table below includes the fair value of equity securities as of December 31, 2025 and 2024. Equity investments with no readily determinable fair value are carried at cost. Federal Home Loan Bank and Federal Reserve stock represent equity interests the Company is required to hold in the Federal Reserve Bank and Federal Home Loan Bank. These amounts are also carried at cost as they do not have a readily determinable fair value because ownership of these shares is restricted, and they lack a market. December 31, 2025 2024 Equity securities: (dollars in thousands) Common and preferred stock with readily determinable fair value $ - $ 724 Federal Home Loan Bank stock 10,634 10,708 Federal Reserve Bank stock 26,057 26,057 Other - no readily determinable fair value 11,510 11,281 Total equity securities $ 48,200 $ 48,770 As of December 31, 2023, the Company held 66,020 shares of Visa Inc. Class B-1 common stock that had a carrying value of zero as there had not been observable price changes in orderly transactions for identical or similar investments. On January 23, 2024, Visa, Inc.'s shareholders approved an exchange offer that allowed holders of Class B-1 shares to convert up to 50% of their holdings into Visa Class C shares, which could later be converted into freely transferable Visa Class A common shares, subject to certain restrictions and holding period conditions (the "Exchange Offer"). The Exchange Offer opened on April 8, 2024, and expired on May 3, 2024. The Company tendered all of its 66,020 Class B-1 Visa shares under the offer, receiving 33,010 Visa Class B-2 shares and 13,100 Visa Class C shares. The Visa Class C shares automatically convert into four Visa Class A shares upon transfer to anyone other than a Visa member or affiliate. In the second quarter of 2024, the Company sold 34,928 Visa Class A shares, recognizing $ 9.7 million in pre-tax gains. An unrealized gain of $ 4.6 million was recognized on the remaining Visa Class C shares based on the closing price of Visa Class A shares, reflecting market transactions involving similar Visa securities. The Company sold the remaining Visa Class C shares, equating to 17,472 Visa Class A shares, in the third quarter of 2024, realizing a pre-tax gain of $ 4.5 million. As of December 31, 2025 we continue to hold all 33,010 of Visa Class B-2 shares, which retain the same restrictions as the former Class B-1 shares and have a carrying value of zero , as there have not been observable price changes in orderly transactions for identical or similar investments of the same issuer. During 2025, $ 0.1 million in net gains were recorded on common and preferred stock, consisting of $ 0.8 million in gains realized on sales during 2025 and a $ 0.7 million decrease in unrealized gains on the portfolio. In 2024, and including the gain on Visa shares outlined above, $ 14.7 million in net gains were recorded on common and preferred stock, consisting of $ 16.0 million in gains realized on sales during 2024 and $ 1.3 million decrease in unrealized gains on the portfolio. 101 The following tables show the carrying amount, gross unrealized holding gains, gross unrealized holding losses, and fair value of AFS and HTM securities by security type at December 31, 2025 and 2024. As of December 31, 2025 Amortized cost Gross unrealized gains Gross unrealized losses Fair values Allowance for credit losses Net carrying amount Available for sale securities: (dollars in thousands) U.S. Treasury securities $ 918,922 $ 10,561 $ ( 1,196 ) $ 928,287 $ - $ 928,287 U.S. Agency debentures 132,692 177 ( 413 ) 132,456 - 132,456 U.S. Agency mortgage-backed securities 5,345,130 46,346 ( 102,899 ) 5,288,577 - 5,288,577 Obligations of states and political subdivisions 16,595 87 ( 38 ) 16,644 - 16,644 Other securities 6,535 - ( 36 ) 6,499 - 6,499 Total available for sale securities $ 6,419,874 $ 57,171 $ ( 104,582 ) $ 6,372,463 $ - $ 6,372,463 Held to maturity: U.S. Agency mortgage-backed securities $ 21 $ 1 $ - $ 22 $ - $ 22 Obligations of states and political subdivisions 1,678 - - 1,678 ( 10 ) 1,668 Total held to maturity securities $ 1,699 $ 1 $ - $ 1,700 $ ( 10 ) $ 1,690 As of December 31, 2024 Amortized cost Gross unrealized gains Gross unrealized losses Fair values Allowance for credit losses Net carrying amount Available for sale securities: (dollars in thousands) U.S. Treasury securities $ 1,291,137 $ 752 $ ( 22,336 ) $ 1,269,553 $ - $ 1,269,553 U.S. Agency debentures 373,869 54 ( 4,635 ) 369,288 - 369,288 U.S. Agency mortgage-backed securities 4,078,956 6,535 ( 170,739 ) 3,914,752 - 3,914,752 Obligations of states and political subdivisions 21,274 79 ( 212 ) 21,141 - 21,141 Other securities 29,648 12 ( 671 ) 28,989 - 28,989 Total available for sale securities $ 5,794,884 $ 7,432 $ ( 198,593 ) $ 5,603,723 $ - $ 5,603,723 Held to maturity: U.S. Agency mortgage-backed securities $ 25 $ 1 $ - $ 26 $ - $ 26 Obligations of states and political subdivisions 3,221 - ( 16 ) 3,205 ( 21 ) 3,184 Total held to maturity securities $ 3,246 $ 1 $ ( 16 ) $ 3,231 $ ( 21 ) $ 3,210 Accrued interest receivable totaled $ 25.1 million and $ 22.0 million at December 31, 2025 and 2024, respectively, and is included within other assets on the consolidated balance sheets. 102 The amortized cost and fair value of AFS and HTM securities at December 31, 2025, by contractual maturity, are shown below: December 31, 2025 U.S. government obligations and government-sponsored enterprises Obligations of state and political subdivisions Other securities* Amortized Cost FTE Yield Fair Value Amortized Cost FTE Yield Fair Value Amortized Cost FTE Yield Fair Value Securities available for sale: (dollars in thousands) Within 1 year $ 96,253 2.11 % $ 95,243 $ 2,759 3.55 % $ 2,757 $ - - % $ - After 1 but within 5 years 955,361 4.22 % 965,500 13,173 4.54 % 13,232 1,167 7.49 % 1,167 After 5 but within 10 years - - % - 256 2.74 % 252 - - % - After 10 years - - % - 407 7.89 % 403 - - % - Mortgage– and asset-backed securities 5,345,130 4.04 % 5,288,577 - - % - 5,368 5.07 % 5,332 Total available for sale securities $ 6,396,744 4.04 % $ 6,349,320 $ 16,595 4.43 % $ 16,644 $ 6,535 5.58 % $ 6,499 Securities held to maturity: Within 1 year $ - - % $ - $ 155 3.36 % $ 155 $ - - % $ - After 1 but within 5 years - - % - 1,492 2.75 % 1,492 - - % - After 5 but within 10 years - - % - 31 6.52 % 31 - - % - After 10 years - - % - - - % - - - % - Mortgage– and asset-backed securities 21 6.11 % 22 - - % - - - % - Total held to maturity securities $ 21 6.11 % $ 22 $ 1,678 2.88 % $ 1,678 $ - - % $ - * Other securities consist primarily of corporate bonds. Proceeds from sales of AFS securities in 2025 and 2024 were $ 0.32 billion and $ 1.04 billion, respectively. Using the specific-identification method to determine the cost of the securities sold, net losses of $ 6.9 million and $ 51.2 million were recognized on the sale of AFS securities in 2025 and 2024, respectively. Investment securities with a carrying value of approximately $ 4.06 billion and $ 3.88 billion were pledged to secure public deposits, repurchase agreements, and borrowed funds at December 31, 2025 and 2024, respectively. Allowance for credit losses on investment securities: The Company adopted ASU 2016-13, Measurement of Credit Losses on Financial Instruments, on January 1, 2023. The principles for expected credit losses apply to all financial assets valued at cost, including our portfolio of HTM debt securities. The expected credit losses for these assets are determined based on the likelihood of default and the potential loss in the event of default, using assumptions that correspond to loans with similar credit profiles. The Company recorded an allowance for credit losses on its HTM securities of $ 10 thousand and $ 21 thousand at December 31, 2025 and 2024, respectively. All AFS 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 requires the Company to adequately test for a range of credit and loss assumptions and does not rely primarily on credit ratings. This revealed no matters that would warrant impairment and result in an allowance for credit losses as of December 31, 2025 and 2024, respectively. The Company determined that all unrealized losses in its available-for-sale portfolio are primarily attributable to changes in interest rates and current market conditions. 103 Special emphasis and analysis are placed on securities that have experienced a negative credit rating event, are below investment grade, or have an uncertain financial outlook. These securities are placed on a watch list and monitored for further developments. At December 31, 2025, the fair value of securities on this watch list was $ 4.9 million compared to $ 2.2 million at December 31, 2024. The table below summarizes debt securities AFS in an unrealized loss position, aggregated by length of impairment period, for which an allowance for credit losses has not been recorded. Unrealized losses on these AFS securities have not been recognized into income because after review, the securities were deemed not to be impaired. The unrealized losses on these securities are primarily attributable to changes in interest rates and current market conditions. Additionally, management does not intend to sell the securities, and it is more likely than not that management will not be required to sell the securities prior to the anticipated recovery. Gross unrealized losses on AFS investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2025 and 2024 were as follows: As of December 31, 2025 Less than 12 months 12 months or more Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available for sale securities: (dollars in thousands) U.S. government obligations and government- sponsored enterprises $ 419,704 $ ( 1,190 ) $ 1,469,113 $ ( 103,318 ) $ 1,888,817 $ ( 104,508 ) Obligations of states and political subdivisions - - 7,204 ( 38 ) 7,204 ( 38 ) Other securities - - 3,557 ( 36 ) 3,557 ( 36 ) Total available for sale securities $ 419,704 $ ( 1,190 ) $ 1,479,874 $ ( 103,392 ) $ 1,899,578 $ ( 104,582 ) As of December 31, 2024 Less than 12 months 12 months or more Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available for sale securities: (dollars in thousands) U.S. government obligations and government- sponsored enterprises $ 1,468,478 $ ( 14,293 ) $ 2,757,421 $ ( 183,418 ) $ 4,225,899 $ ( 197,711 ) Obligations of states and political subdivisions 2,239 ( 16 ) 9,618 ( 195 ) 11,856 ( 211 ) Other securities 717 - 26,691 ( 671 ) 27,409 ( 671 ) Total available for sale securities $ 1,471,434 $ ( 14,309 ) $ 2,793,730 $ ( 184,284 ) $ 4,265,164 $ ( 198,593 ) Gross unrealized losses on HTM investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2025 and 2024 were as follows: As of December 31, 2025 Less than 12 months 12 months or more Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Held to maturity securities: (dollars in thousands) U.S. government obligations and government- sponsored enterprises $ - $ - $ - $ - $ - $ - Obligations of states and political subdivisions 450 - - - 450 - Total held to maturity securities $ 450 $ - $ - $ - $ 450 $ - 104 As of December 31, 2024 Less than 12 months 12 months or more Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Held to maturity securities: (dollars in thousands) U.S. government obligations and government- sponsored enterprises $ - $ - $ - $ - $ - $ - Obligations of states and political subdivisions 1,278 ( 15 ) 149 ( 1 ) 1,427 ( 16 ) Total held to maturity securities $ 1,278 $ ( 15 ) $ 149 $ ( 1 ) $ 1,427 $ ( 16 ) For obligations of states and political subdivisions, the Company’s holdings are primarily in general obligation and revenue bonds. The Company monitors credit risk, including both pre-purchase and ongoing post-purchase credit reviews and analysis. The Company monitors credit ratings of all bond issuers in these segments and reviews available financial data, including market and sector trends. The underlying bonds are evaluated for credit losses in conjunction with management’s estimate of the allowance for credit losses. The following table shows the amortized cost basis by credit rating (Standard & Poor's and Moody's) of the Company’s HTM obligations of states and political subdivisions at December 31, 2025 and 2024. December 31, 2025 Amortized Cost Basis by Credit Rating Non-Rated A AA AAA Grand Total Held to maturity securities: (dollars in thousands) State and political subdivisions $ 251 $ - $ 1,132 $ 295 $ 1,678 December 31, 2024 Amortized Cost Basis by Credit Rating Non-Rated A AA AAA Grand Total Held to maturity securities: (dollars in thousands) State and political subdivisions $ 35 $ 40 $ 2,996 $ 150 $ 3,221 All HTM securities were current at December 31, 2025 and 2024. 105 (3) Loans and Allowance for Credit Losses Loans consisted of the following at December 31, 2025 and 2024: December 31, 2025 2024 (dollars in thousands) Loans held for investment: Construction and development $ 570,749 $ 552,676 Commercial, financial & agricultural 1,761,287 1,874,906 Non-owner-occupied commercial real estate 1 3,150,269 3,197,765 Owner-occupied commercial real estate 1,580,260 1,572,955 Commercial real estate 4,730,529 4,770,720 Total commercial loans 7,062,565 7,198,302 Residential mortgage loans 2 3,321,101 3,105,760 Home equity lines of credit 410,845 349,011 Consumer credit card 98,310 93,825 Other consumer loans 551,395 903,452 Total residential and consumer loans 4,381,651 4,452,048 Total unpaid principal balance 11,444,216 11,650,350 Add: Unearned income ( 9,611 ) ( 26,259 ) Total loans held for investment 11,434,605 11,624,091 Loans held for sale 54,119 34,264 Total loans held for investment $ 11,488,724 $ 11,658,355 1 Non-owner-occupied commercial real estate loans presentation updated to include multi-family loans 2 Residential mortgage loans presentation updated to include residential construction and development Accrued interest receivable totaled $ 45.9 million and $ 45.9 million at December 31, 2025 and 2024, respectively, and is included within other assets on the consolidated balance sheets. No loans were acquired by the Company in 2025 or 2024. Loans made to officers and directors of the Company are summarized below. They were made in the ordinary course of business and otherwise on terms consistent with those available to all customers. December 31, 2025 (dollars in thousands) Balance of loans to related parties, beginning of year $ 274,803 New loans 57,204 Repayments ( 41,031 ) Change in relationship 49,035 Balance of loans to related parties, end of year $ 340,010 Mortgage loans held for sale at December 31, 2025 and 2024 totaled approximately $ 54.1 million and $ 34.3 million, respectively. The Company determines at the time of origination whether mortgage loans will be held for the Company’s portfolio or sold to the secondary market. Loans originated and intended for sale in the secondary market are recorded using the fair value option. The election of the fair value option aligns the accounting for these loans with the related economic hedges discussed in "Note 16, Fair Value Disclosures," to our consolidated financial statements. The Company has outstanding commitments to provide loans to customers and also has issued letters of credit. 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. At December 31, 2025 and 2024, the Company had unfunded loan commitments of $ 3.0 billion and $ 2.9 billion, respectively. Outstanding letters of credit as of December 31, 2025 and 2024 amounted to $ 82.8 million and $ 89.1 million, respectively. 106 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. The Company’s banking markets are located throughout the states of Missouri, Kansas, Illinois, Iowa, Oklahoma, Colorado, North Carolina, Tennessee, Florida, and Arkansas and the Company’s loan portfolio has no unusual geographic concentrations of credit risk beyond its market areas. Allowance for Credit Losses The allowance for credit losses is measured 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 – construction and development, commercial, financial & agricultural, multifamily residential real estate, non-owner-occupied real estate, owner-occupied real estate, home equity lines of credit, all other residential real estate, consumer credit card, and all other consumer credit. Loans that do not share similar risk characteristics, primarily large loans on non-accrual 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 the Company’s historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and outstanding loan balances during a look back period. Look back 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. 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, HPI, and CREPI. The adjustments are based on results from various regression models projecting the impact of the macroeconomic variables to loss rates. The forecast is used for four quarters and then reverts back to historical averages using a four-quarter straight-line reversion method. The forecast adjusted loss rate is applied to the amortized cost of loans over the remaining contractual lives, adjusted for expected prepayments. The contractual term excludes expected extensions (except for contractual extensions at the option of the customer), renewals and modifications. Credit cards and certain similar consumer lines of credit, included in the individual loan totals, do not have stated maturities and therefore, for these loan classes, remaining contractual lives are determined by estimating future cash flows expected to be received from customers until payments have been fully allocated to outstanding balances. 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. 107 Key model assumptions in the Company’s allowance for credit loss model include the economic forecast, the reasonable and supportable forecast period, prepayment assumptions and qualitative factors applied for portfolio composition changes, underwriting practices, or significant unique events or conditions. The assumptions utilized in estimating the Company’s allowance for credit losses at December 31, 2025 and 2024 are discussed below. Key Assumption December 31, 2025 December 31, 2024 Overall economic forecast - Forecast provided by Oxford Economics - Expect the economy to continue to expand, with strong AI related investment with no sign of slowing down - The labor market is softening, affecting real disposable income growth. However, consumer spending is holding up with tariffs driving the cost of core goods. - Forecast provided by Oxford Economics - Uncertainty around economic forecasts prior to the change in administration. - Forecasted GDP growth with expectations that imports will be front-loaded ahead of tariffs. - Path of monetary policy is uncertain with anticipation of rate cuts skewing towards fewer. Reasonable and supportable period and related reversion period - 4 quarter reasonable and supportable period - 4 quarter reversion to historical average loss rates using straight line method - 4 quarter reasonable and supportable period - 4 quarter reversion to historical average loss rates using straight line method Forecasted macro-economic variables - Unemployment ranging from 4.1 % to 4.4 % - GDP growth forecast of 2.0 % -Prime rate is 6.75 %, declining to 6.25 % at the end of the supportable forecast - Unemployment ranging from 4.2 % and 4.3 % - GDP growth forecast of 2.6 % - Prime rate is 7.5 %, with a 25 basis point decline each quarter of the supportable forecast period Prepayment assumptions - Commercial loan prepayment speeds of 14.4 % - Mortgage and HELOC prepayment speeds of 18.3 % - Consumer loan and credit card prepayment speeds of 15.0 % - Commercial loan prepayment speeds of 14.4 % - Mortgage and HELOC prepayment speeds of 18.3 % - Consumer loan and credit card prepayment speeds of 15.0 % Qualitative factors Qualitative adjustments for: - Impact of inflation, tariffs, and interest rates on borrower ability to repay - Economic, government policy, and geopolitical uncertainties - Changes in portfolio composition, concentrations, and underwriting standards Qualitative adjustments for: - Economic uncertainty related to geopolitical risks and upcoming change in administration - Ongoing impact of inflation and increased rate environment on customer ability to repay - Changes in portfolio composition, concentrations, and underwriting standards The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans, however, the liability for unfunded lending commitments incorporates an assumption for the portion of unfunded commitments that are expected to be funded. The unfunded commitments allowance is included within other liabilities on the consolidated balance sheets. Sensitivity in the Allowance for Credit Loss Model The allowance for credit losses is an estimate that requires significant judgment including projections of the macro-economic environment. The forecasted macro-economic environment continuously changes which can cause fluctuations in estimated expected losses. 108 The following is a summary of the activity in the allowance for credit losses on loans and the liability for unfunded lending commitments during the years ended December 31, 2025 and 2024. Included within commercial loans are the following pools – real estate development & construction, commercial real estate (CRE), owner-occupied CRE, commercial & industrial (C&I), and multifamily residential loans. Included within residential real estate are 1-4 family residential and home equity loans. Included within individual loans are consumer and credit card loans. 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 $ 5,542 $ 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 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 $ 154,763 109 Age Analysis of Past Due and Nonaccrual Loans The Company considers loans past due on the day following the contractual repayment date if the contractual repayment was not received by the Company as of the end of the business day. The following table provides aging information on the Company’s past due and accruing loans, in addition to the balances of loans on non-accrual status, at December 31, 2025 and 2024. Balances in the tables below represent total unpaid principal balances gross of unearned and unamortized loan fees and costs. 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 Nonaccruing loans at December 31, 2025 and 2024 totaled approximately $ 44.7 million and $ 36.0 million, respectively. At December 31, 2025 and 2024, the Company had $ 16.9 million and $ 11.3 million, respectively, of non-accrual business loans that had no allowance for credit losses because the loans have been charged down to the fair value. The interest income recorded on nonaccrual loans was approximately $ 1.4 million and $ 1.2 million in 2025 and 2024, respectively. The following table provides information about the credit quality of the loan portfolio using the Company’s internal rating system reflecting management’s risk assessment. The pass category consists of a range of loan grades that reflect low to moderate, though still acceptable, risk. Loans are placed on watch status when (1) one or more weaknesses which could jeopardize timely liquidation exists; or (2) the margin or liquidity of an asset is sufficiently tenuous that adverse trends could result in a collection problem. Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified may have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. Such loans are characterized by the 110 distinct possibility that the Company may sustain some loss if the deficiencies are not corrected. Loans are placed on nonaccrual status when (1) deterioration in the financial condition of the borrower exists for which payment of full principal and interest is not expected, or (2) 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. 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 covenant 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 Non-accrual 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 the Loan Review Department which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan. The risk category of loans in the portfolio as of December 31, 2025 and 2024 are as follows: 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 - - - 384 111 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) 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 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 21,196 112 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, 2024 - - 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, 2024 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, 2024 - - - - - 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, 2024 - - 5 - - - - 5 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, 2024 - - 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, 2024 - - - - - 2 9 11 113 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 (dollars in thousands) 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, 2024 - - - - - - 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, 2024 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, 2024 5,141 3,130 5,586 2,833 1,145 2,573 4,457 24,865 Collateral-dependent loans The Company’s collateral-dependent loans are comprised of loans where repayment of the loan is dependent on the sale or operation of the collateral. The Company requires that collateral-dependent loans be either over-collateralized or carry collateral equal to the amortized cost of the loan. The following table presents the amortized cost basis of collateral-dependent loans as of December 31, 2025 and 2024, by the expected source of repayment. December 31, 2025 Real estate Business assets Total (dollars in thousands) Construction and development $ 2,530 $ - $ 2,530 Commercial, financial & agricultural - 4,404 4,404 Non-owner-occupied commercial real estate 9,029 - 9,029 Owner-occupied commercial real estate 4,049 - 4,049 Residential mortgage loans 616 - 616 Total $ 16,224 $ 4,404 $ 20,628 December 31, 2024 Real estate Business assets Total (dollars in thousands) Construction and development $ 1,417 $ - $ 1,417 Commercial, financial & agricultural 341 - 341 Non-owner-occupied commercial real estate 7,239 - 7,239 Owner-occupied commercial real estate 3,800 - 3,800 Residential mortgage loans 2,777 47 2,824 Total $ 15,576 $ 47 $ 15,623 114 Modifications for borrowers experiencing financial difficulty The Company adopted ASU 2022-02 on January 1, 2023, which required that the Company evaluate whether modifications represent a new loan or a continuation of existing loans. When borrowers are experiencing financial difficulty, the Company may agree to modify the contractual terms of a loan to a borrower to assist the borrower in repaying principal and interest owed to the Company. The Company’s 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. Commercial loans modified to borrowers experiencing financial difficulty are primarily loans that are substandard or non-accrual, where the maturity date was extended. Modifications on personal real estate loans are primarily those 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 modified 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. The following tables present the amortized cost of loans that were modified during the years 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 % 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 % The estimate of lifetime expected losses utilized in the allowance for credit losses model is developed using average historical experience on loans with similar risk characteristics, which includes losses from modifications of loans to borrowers experiencing financial difficulty. As a result, a change to the allowance for credit losses is generally not recorded upon modification. For modifications to loans made to borrowers experiencing financial difficulty that are placed on nonaccrual status, the Company determines the allowance for credit losses on an individual evaluation, using the same process that it utilizes for other loans on nonaccrual status. 115 If a loan to a borrower experiencing financial difficulty is modified and full and timely collection becomes uncertain, the allowance for credit losses continues to be based on individual evaluation, if that loan is already on nonaccrual status. For those loans, the allowance for credit losses is estimated using discounted expected cash flows or the fair value of collateral. If an accruing loan made to a borrower experiencing financial difficulty is modified and subsequently deemed uncollectible, the loan’s risk rating is downgraded to nonaccrual status and the loan’s related allowance for credit losses is determined based on individual evaluation, or if necessary, the loan is charged off and collection efforts begin. The following tables summarize the financial impact of loan modifications and payment deferrals during the year ended December 31, 2025 and 2024. December 31, 2025 Interest/fees forgiveness Weighted-average months of deferred payments Weighted-average months of term extensions Weighted-average interest rate reduction Construction and development $ - - 4 - % Commercial, financial, & agricultural 2 4 11 6.00 % Non-owner-occupied commercial real estate - - 14 - % Owner-occupied commercial real estate 8 - 9 6.00 % Residential real estate 3 4 30 6.83 % Home equity lines of credit - - 11 - % All other consumer - - - 6.96 % Total $ 13 December 31, 2024 Interest/fees forgiveness Weighted-average months of deferred payments Weighted-average months of term extensions Weighted-average interest rate reduction Construction and development $ 5 - 11 - % Commercial, financial, & agricultural 112 - 9 - % Non-owner-occupied commercial real estate 1 12 24 7.00 % Owner-occupied commercial real estate - 73 24 - % Residential real estate - 17 17 5.67 % Home equity lines of credit - - 11 - % All other consumer - 3 12 7.24 % Total $ 118 The following table provides the amortized cost basis of loans to borrowers experiencing financial difficulty that had a payment default during the year ended December 31, 2025 and were modified on or after January 1, 2025 through December 31, 2025. For purposes of this disclosure, the Company considers “default” to mean 90 days or more past due as to interest or principal. December 31, 2025 Term extension Payment delay Interest rate reduction Interest/fee forgiveness Other Total (dollars in thousands) Construction and development $ 118 $ - $ - $ - $ - $ 118 Commercial, financial, & agricultural 1,043 - 115 - 43 1,202 Non-owner-occupied commercial real estate 496 - - - 6,069 6,565 Owner-occupied commercial real estate 726 1,122 - - - 1,849 Total commercial real estate 1,222 1,122 - - 6,069 8,414 Residential mortgage loans 1,817 274 578 49 - 2,718 Home equity lines of credit - - - - - - Total residential real estate 1,817 274 578 49 - 2,718 All other consumer 169 - 145 - - 314 Total $ 4,369 $ 1,396 $ 838 $ 49 $ 6,112 $ 12,766 116 The following table provides the amortized cost basis of loans to borrowers experiencing financial difficulty that had a payment default during the year ended December 31, 2024 and were modified on or after January 1, 2024 through December 31, 2024. December 31, 2024 Term extension Payment delay Interest rate reduction Interest/fee forgiveness Other Total (dollars in thousands) Construction and development $ - $ - $ - $ - $ - $ - Commercial, financial, & agricultural 63 - 17 - - 80 Non-owner-occupied commercial real estate 3,790 - - - - 3,790 Owner-occupied commercial real estate 820 - - - - 820 Total commercial real estate 4,609 - - - - 4,609 Residential mortgage loans 480 - 77 - - 558 Home equity lines of credit - - - - - - Total residential real estate 480 - 77 - - 559 All other consumer 82 - 127 - - 209 Total $ 5,235 $ - $ 221 $ - $ - $ 5,457 The Company had commitments of $ 0.6 million and $ 1.0 million at December 31, 2025 and December 31, 2024, respectively, to lend additional funds to borrowers experiencing financial difficulty and for whom the Company has modified the terms of loans. (4) Mortgage Banking Activities The Company originates mortgage loans and sells those loans to the FHLMC, FNMA, GNMA, and private investors. Typically, these loans are sold with servicing retained by the Bank. Loans sold with servicing retained in 2025 and 2024 aggregated $ 413.3 million and $ 255.0 million, respectively. Loans serviced for investors aggregated $ 4.59 billion and $ 4.70 billion at December 31, 2025 and 2024, respectively. Included in mortgage banking revenues in the accompanying consolidated statements of income for 2025 and 2024 are the following: December 31, 2025 2024 (dollars in thousands) Gains on sale of mortgage loans $ 27,121 $ 26,090 Fees on real estate loans sold 1,907 3,279 (Losses) gains on interest rate lock commitments (IRLC) and associated hedging¹ ( 1,003 ) 589 Servicing fees 11,546 12,122 Mortgage banking revenues $ 39,571 42,080 1 For more information on this item, see "Note 1, Summary of Significant Accounting Policies—Derivative Financial Instruments," to our consolidated financial statements. Included in gains on sales of mortgage loans during 2025 and 2024 are capitalized mortgage servicing rights aggregating $ 5.0 million and $ 2.9 million, respectively. The following assumptions were used in determining the fair value of the capitalized mortgage servicing rights: December 31, 2025 2024 Discount rate 9.16 % 9.31 % Prepayment speed 7.10 % 7.00 % Delinquency rate 0.86 % 0.79 % 117 A summary of the mortgage servicing rights is as follows: December 31, 2025 2024 (dollars in thousands) Balance at beginning of year $ 30,423 $ 33,876 Capitalized mortgage servicing rights 5,039 2,866 Amortization ( 6,071 ) ( 6,319 ) Change in valuation allowance - - Balance at end of year $ 29,391 $ 30,423 Servicing asset values are sensitive to interest rates and loan prepayment behavior. A decline in market interest rates generally increases borrower prepayments, which can reduce the expected future cash flows and the fair value of servicing assets. If necessary, a valuation allowance would be added, through a charge to earnings, to the extent the amortized cost exceeds the estimated fair value. The valuation allowance at each of December 31, 2025 and 2024 was $ 0 . The Company evaluates its mortgage servicing rights for impairment on a monthly basis. The classes for evaluation are based on the risk characteristics of the underlying loans, including but not limited to, loan structure, loan term, and interest rate profile. There were no changes to the predominant risk characteristics or the resulting stratification of mortgage servicing rights during the periods presented. The following table shows the estimated future amortization expense based on existing asset balances and the interest rate environment as of December 31, 2025 (in thousands). The Company’s actual amortization expense in any given period may be different from the estimated amounts depending upon the addition of new intangible assets, changes in mortgage interest rates, prepayment speeds, and other market conditions. 2026 $ 3,845 2027 3,443 2028 3,094 2029 2,765 Thereafter 16,243 (5) Land, Buildings, and Equipment A summary of land, buildings, and equipment at December 31, 2025 and 2024 is as follows: December 31, 2025 2024 (dollars in thousands) Land $ 58,316 59,321 Buildings and improvements 306,067 294,479 Equipment 67,410 64,649 Right of use assets, net of amortization 31,281 30,187 Total land, buildings and equipment 463,074 448,636 Less accumulated depreciation 247,143 233,320 Total land, buildings and equipment, net $ 215,931 215,316 The following table shows the estimated future depreciation expense based on existing asset balances as of December 31, 2025 (in thousands): 2026 $ 14,763 2027 12,515 2028 11,387 2029 10,066 2030 8,840 Thereafter 68,762 118 Depreciation of buildings charged to operating expense was approximately $ 8.3 million and $ 8.4 million in 2025 and 2024, respectively, and is included in net occupancy expense on the consolidated statements of income. Depreciation of equipment charged to operating expense was approximately $ 7.3 million and $ 7.4 million in 2025 and 2024, respectively, and is included in equipment expense on the consolidated statements of income. (6) Goodwill and Intangible Assets Effective for the year ended December 31, 2025, the Company updated its reportable segments. As a result of this change, the Company revised its goodwill disclosure to present goodwill allocated to the Consumer and Commercial reportable segments in accordance with ASC 350‑20‑50‑1. This revision reflects a change in presentation and disclosure only and does not affect the total carrying amount of goodwill or any prior goodwill impairment assessments. Refer to "Note 19, Business Segment Reporting," to our consolidated financial statements for additional details regarding the segment realignment. Goodwill is now presented for the Company’s three reportable segments—Consumer, Commercial, and Wealth Management—to align with the segment structure used for reporting under ASC Topic 280. The following table summarizes the Company's goodwill and core deposit intangible assets: December 31, 2025 2024 Gross carrying amount Accumulated amortization Net amount Gross carrying amount Accumulated amortization Net amount (dollars in thousands) Amortizable intangible assets: Core deposit intangible assets $ 20,498 $ ( 18,304 ) $ 2,194 $ 26,052 $ ( 20,930 ) $ 5,122 Trust customer intangible asset 6,100 ( 4,866 ) 1,233 6,100 ( 4,569 ) 1,531 Total amortizable intangible assets $ 26,598 $ ( 23,170 ) $ 3,427 $ 32,152 $ ( 25,499 ) $ 6,653 Goodwill: Consumer $ 126,095 $ - $ 126,095 $ 126,095 $ - $ 126,095 Commercial 210,331 - 210,331 210,331 - 210,331 Wealth Management 11,811 - 11,811 11,811 - 11,811 Total goodwill $ 348,237 $ - $ 348,237 $ 348,237 $ - $ 348,237 Aggregate amortization expense on core deposit and other intangible assets for the years ended December 31, 2025 and 2024 was $ 3.2 million and $ 3.4 million, respectively. The following table shows the estimated future amortization expense for the next five years based on existing asset balances and the interest rate environment as of December 31, 2025 (in thousands). The Company’s actual amortization expense in any given period may be different from the estimated amounts depending on the addition of new intangible assets and other market conditions. 2026 $ 2,483 2027 280 2028 271 2029 252 2030 141 Total $ 3,427 119 (7) Income Taxes The Company's income from continuing operations is derived entirely from domestic sources. The components of income tax expense related to continuing operations for the years ended December 31, 2025 and 2024 are as follows: December 31, 2025 2024 (dollars in thousands) Current income tax expense: Federal $ 103,748 $ 88,526 State 15,398 6,044 Total current income tax expense 119,146 94,570 Deferred income tax expense: Federal ( 2,923 ) ( 5,656 ) State ( 518 ) ( 1,004 ) Total deferred income tax expense ( 3,441 ) ( 6,660 ) Total income tax expense: Federal 100,825 82,870 State 14,880 5,040 Total income tax expense on operations $ 115,705 $ 87,910 The components of income tax expense record directly to shareholders' equity for the years ended 2025 and 2024 were as follows: December 31, 2025 2024 (dollars in thousands) Unrealized gain on AFS debt securities $ 34,270 $ 34,309 Accumulated pension loss 4,248 5,653 Income tax expense allocated to shareholders' equity $ 38,518 $ 39,962 The reasons for the difference between the effective tax rates of 22.8 % and 22.3 % for 2025 and 2024, respectively, and the current federal statutory income tax rate of 21 %, are as follows: December 31, 2025 2024 Amount Percent Amount Percent (dollars in thousands) Income tax expense at federal statutory rate $ 106,375 21.0 % $ 82,681 21.0 % Increase (reduction) in income taxes resulting from: Tax-exempt interest ( 2,517 ) ( 0.5 ) % ( 2,165 ) ( 0.6 ) % Other tax-exempt income ( 143 ) - % ( 134 ) - % Dividend exclusion ( 35 ) - % ( 41 ) - % State income taxes, net of federal income tax and excluding state credits 1 12,553 2.5 % 10,103 2.6 % Nondeductible expenses 1,433 0.3 % 819 0.2 % Partnership Amortization 3,993 0.8 % 6,189 1.6 % Tax credits 2 ( 5,689 ) ( 1.1 ) % ( 9,528 ) ( 2.4 ) % Changes in unrecognized tax benefits - - % 100 - % Other, net ( 265 ) ( 0.1 ) % ( 114 ) - % Total income tax expense $ 115,705 22.8 % $ 87,910 22.3 % ¹ Missouri accounted for the majority of our state income tax expense. ² Tax credits were comprised primarily of Low Income Housing Tax Credits, totaling $ 4.6 million in 2025 and $ 8.8 million in 2024 120 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2025 and 2024 are presented below: December 31, 2025 2024 (dollars in thousands) Deferred tax assets: Loans, principally due to allowance for loan losses $ 35,766 $ 36,901 Accrued expenses 25,958 26,983 Buildings and equipment 711 928 Unrealized loss on available-for-sale securities 11,303 45,573 Core deposit intangible 1,201 749 Unearned revenue 297 526 Total gross deferred tax assets 75,236 111,660 Deferred tax liabilities: Prepaid pension expense 10,802 10,602 Mortgage servicing rights 7,007 7,253 Goodwill 37,014 35,924 Lease financing 22,063 29,502 Unrealized gain on equity securities 909 698 Capitalized loan costs 1,766 1,214 Defined benefit plan 6,021 1,773 Other 1,399 1,362 Total gross deferred tax liabilities 86,981 88,328 Net deferred taxes $ ( 11,745 ) $ 23,332 The Company has not recorded a valuation allowance related to the net deferred tax assets at December 31, 2025 or 2024 due to historical and expected future earnings of the Company. The Company classifies interest and penalties on uncertain tax benefits as income tax expense. In the normal course of business, the Company provides for uncertain tax positions and the related interest and penalties and adjusts its unrecognized tax benefits and related interest and penalties accordingly. Unrecognized tax benefits remained the same during 2025, totaling $ 1.5 million at December 31, 2025. Federal net operating loss (NOL) carryovers were acquired in certain acquisitions. The remaining amount of NOL carryover is $ 0.5 million and $ 0.6 million as of December 31, 2025 and 2024, respectively. The NOL expires in 2033. The annual use of the NOL is limited and the Company expects to use the remaining carryover before expiration. The Company’s U.S. federal tax returns for years prior to 2022 are no longer subject to examination by federal tax authorities, and with few exceptions, state tax returns prior to 2022 are no longer subject to examination by state tax authorities. The following table presents income taxes paid by jurisdiction in amounts exceeding 5% of total income taxes paid, net of refunds for 2025 and 2024. As required by ASU 2023‑09, these amounts are presented on a net‑of‑refund basis, whereas cash paid for income taxes for the 2024 period reported in the Consolidated Statements of Cash Flows was presented on a gross basis. December 31, 2025 2024 (dollars in thousands) Federal $ 124,250 $ 77,200 Missouri 15,629 8,395 Other, net 4,501 2,953 Total income taxes paid $ 144,380 $ 88,548 121 (8) Deposits Maturities of time deposits are as follows at December 31, 2025 ( in thousands) : 2026 $ 1,545,913 2027 59,624 2028 17,204 2029 8,133 2030 4,052 Thereafter 152 $ 1,635,078 Time deposits include certificates of deposit of $250 thousand and over, totaling approximately $ 547.4 million and $ 536.7 million at December 31, 2025 and 2024, respectively. Interest expense on such deposits amounted to $ 17.6 million and $ 20.0 million in 2025 and 2024, respectively. Deposits from related parties were $ 284.6 million and $ 230.7 million at December 31, 2025 and 2024, respectively. (9) Customer Repurchase Agreements The Company’s obligation to repurchase securities sold at December 31, 2025 and 2024 totaled $ 945.8 million and $ 906.8 million, respectively. These are short-term borrowings that generally have one day maturities. Information concerning securities sold under agreements to repurchase during the year is as follows: December 31, 2025 2024 (dollars in thousands) Average monthly balance during the year $ 888,197 865,928 Maximum month-end balance during the year 946,635 919,153 Average interest rate during the year 2.22 % 2.39 % Assets and liabilities relating to securities purchased under agreements to resell and securities sold under agreements to repurchase (“customer repurchase agreements”) are presented gross in the consolidated balance sheet and the Company is not party to any offsetting arrangements associated with these agreements. Resale and repurchase agreements to purchase/sell securities are subject to an obligation to resell/repurchase the same or similar securities and are accounted for as collateralized financing transactions, not as sales and purchases of the securities portfolio. The securities collateral accepted or pledged in resale and repurchase agreements with other financial institutions also may be sold or re-pledged by the secured party but is usually delivered to and held by third party trustees. The table below shows the remaining contractual maturities of repurchase agreements outstanding at December 31, 2025, in addition to the various types of marketable securities that have been pledged as collateral for these borrowings. December 31, 2025 Remaining contractual maturity of the agreements Overnight and continuous Up to 90 days Greater than 90 days Total (dollars in thousands) Repurchase agreements, secured by: U.S. government and federal agency obligations $ 29,667 $ - $ - $ 29,667 Government-sponsored enterprise obligations 9,181 - - 9,181 Mortgage-backed securities 906,962 - - 906,962 Total repurchase agreements, gross amount recognized $ 945,811 $ - $ - $ 945,811 122 (10) Employee Benefit Plans The Company has a noncontributory defined benefit pension plan, the Central Bancompany, Inc. Retirement Plan (the Plan), available to qualified employees, as defined under the Plan. On November 14, 2018, the Company’s Board of Directors approved an amendment to freeze the Plan, effective December 31, 2018. After December 31, 2018, participants in the Plan stopped accruing additional benefits for future service or compensation. Participants retained benefits accumulated as of December 31, 2018, in accordance with the terms of the Plan. As part of its ongoing strategy to manage pension obligations, the Company purchased two separate group annuity contracts during the year ended December 31, 2024, to settle a portion of its defined benefit pension liability. On August 28, 2024, the Company purchased a group annuity contract from Pacific Life Insurance Company to settle pension liabilities related to approximately 1,104 retirees and beneficiaries. The annuity covered benefits totaling $ 81.8 million, reducing the Company’s pension obligation by an equivalent amount. On December 5, 2024, the Company purchased an additional group annuity contract from Pacific Life Insurance Company to settle further pension obligations. This annuity covered the benefits of approximately 43 retirees and beneficiaries, with a corresponding reduction in the pension liability of $ 16.9 million. As of the date of the annuity purchases, the Company has no further obligation for the settled benefits, as the responsibility for payment of benefits now rests with the annuity provider. In addition to the annuity purchase placements, the Company offered eligible terminated, vested pension plan participants as well as eligible active employee pension plan participants who have reached the age of 59.5 years old, an option to elect a one-time voluntary lump sum window distribution equal to the present value of the participant’s pension benefit, in settlement of all future pension benefits to which they would otherwise have been entitled. Payments were distributed to participants who accepted the lump sum offer in December 2024 from the assets of the Pension Plan. The Company paid out benefits, via lump sum distribution, of approximately 248 terminated vested and eligible active participants resulting in a reduction in the pension liability of $ 21.6 million. The annuity purchases and lump sum distributions were made to reduce the Company's exposure to future pension funding volatility. The settlement related to the annuity purchases and lump sum distributions resulted in a total decrease in the Company’s pension liability by $ 120.3 million. The Company recognized a gain on settlement of $ 2.7 million in the fourth quarter of 2024. The gain was actuarially determined based on the acceleration of the recognition of the accumulated unrecognized actuarial gain associated with the Pension Plan. The settlement was recorded under the provisions of ASC 715-30, Compensation—Retirement Benefits—Defined Benefit Plans , and is included in the Company's pension income for the period. The remaining pension liability after the settlement was $ 114.9 million, and the Company continues to manage the pension plan's remaining obligations in accordance with its funding policy. The Company’s funding policy is to contribute funds to an account maintained by the pension plan trustee, as necessary, to provide for the normal cost and amortization of the unfunded actuarial accrued liability. To the extent that these costs are fully covered by assets in the trust, a contribution might not be made in a particular year. Assets held in the Plan are primarily government and government agency obligations, common stock, corporate bonds, mutual funds, and money market accounts. Certain executives also participate in a supplemental pension plan (the SERP) that the Company funds only as retirement benefits are disbursed. The SERP carries no segregated assets. Benefit obligations of the SERP are shown in the table immediately below. In all other tables presented, the pension plan and the SERP are presented on a combined basis, even though the SERP is unfunded. December 31, 2025 2024 (dollars in thousands) Projected benefit obligation $ 14,159 $ 15,216 Cumulative contributions in excess of net periodic benefit cost 17,289 17,862 123 The following items are components of net pension cost for the years ended December 31, 2025 and 2024: December 31, 2025 2024 (dollars in thousands) Interest cost on projected benefit obligation $ 6,328 $ 11,623 Expected return on plan assets ( 6,366 ) ( 10,431 ) Amortization of net (gain) ( 108 ) ( 55 ) Settlement gain recognized - ( 2,736 ) Net periodic pension cost $ ( 146 ) $ ( 1,599 ) The following table sets forth the pension plans’ funded status, using valuation dates of December 31, 2025 and 2024: December 31, 2025 2024 (dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at prior valuation date $ 114,900 $ 248,480 Interest cost 6,328 11,623 Plan settlements - ( 120,303 ) Benefits paid ( 6,607 ) ( 14,273 ) Actuarial (gain) ( 1,954 ) ( 10,627 ) Projected benefit obligation at valuation date 112,667 114,900 Change in plan assets: Fair value of plan assets at beginning of year 148,948 255,854 Actual return on plan assets 22,341 26,307 Employer contributions 1,265 1,363 Plan settlements - ( 120,303 ) Benefits paid ( 6,607 ) ( 14,273 ) Fair value of plan assets at end of year 165,947 148,948 Funded status and net amount recognized $ 53,280 $ 34,048 Amounts recognized on the December 31, 2025 and 2024 consolidated balance sheets are as follows: December 31, 2025 2024 (dollars in thousands) Prepaid pension asset $ 45,312 $ 44,473 Accrued benefit/(liability) 7,968 ( 10,425 ) Net amount recognized $ 53,280 $ 34,048 Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive loss, on a pretax basis, at December 31, 2025 are as follows: December 31, 2025 (dollars in thousands) Accumulated other comprehensive income, pretax $ 25,255 Cumulative employer contributions in excess of net periodic benefit cost 28,025 Net amount recognized $ 53,280 124 The following weighted average assumptions have been used at December 31, 2025 and 2024: December 31, 2025 2024 Determination of benefit obligation at year-end: Discount rate 5.80 % 5.70 % Determination of net periodic benefit cost for the year ended: Discount rate 5.70 % 5.50 % Expected long-term rate of return on plan assets 4.50 % 4.50 % The expected return on pension plan assets is developed using inflation expectations and risk factors to arrive at a long-term nominal expected return for each asset class. The nominal expected return for each asset class is then weighted based on the target asset allocation to develop the expected long-term rate of return on plan assets. The following table shows the Company’s employer contributions and benefits paid for the years ended December 31, 2025 and 2024: December 31, 2025 2024 (dollars in thousands) Employer contributions $ 1,265 1,363 Benefits paid 6,607 14,273 The weighted average asset allocations as of December 31, 2025 and 2024, by asset category, are as follows: Plan assets as of December 31, 2025 2024 Equity securities - % 50 % Fixed income 60 % 49 % Cash and equivalents 40 % 1 % Total 100 % 100 % The Plan’s Investment Policy focuses on efficient allocation of capital among various asset classes to create a diversified portfolio in order to achieve the Plan’s investment return objective of 4.5 %. In making capital allocation decisions, the Trustee considers the expected return, standard deviation, and correlation of returns of various asset classes, as well as the current term structure of interest rates and current market conditions. In order to generate sufficient returns to meet actuarial estimates of the Plan’s future obligations, the majority of the Plan’s assets are typically invested in asset classes with higher expected rates of return, specifically equity securities. In order to limit risk, a lesser allocation is made to fixed income securities. Within strict policy ranges, the Trustee has discretion to increase or decrease the equity and fixed income allocations in response to changing market conditions. The Plan allocates a small percentage to real assets in the form of precious metals trusts. The following benefit payments are expected to be paid (in thousands): 2026 $ 6,531 2027 6,765 2028 6,988 2029 7,177 2030 7,376 2031 - 2035 39,387 Following is a description of the valuation methodologies used for assets measured at fair value in the Plan: Cash equivalents – Money market funds are valued at the closing price reported on the active market on which the funds are traded. U.S. government and agency obligations – Federal agencies are priced utilizing industry-standard models that consider various assumptions, including time value, yield curves, volatility factors, prepayment speeds, default rates, loss severity, current market, and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all these assumptions are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. 125 Corporate bonds - Corporate securities are valued using a type of matrix, or grid, pricing in which securities are benchmarked against the treasury rate based on credit rating. These model and matrix measurements are classified as Level 2 in the fair value hierarchy. Mutual funds and common stocks – The fair value of these investments is based on quoted market prices from national securities exchanges. The following table sets forth by level, within the fair value hierarchy, the pension plan’s assets at fair value as of December 31, 2025: Fair value measurements at December 31, 2025 using Total fair value Quoted prices in active markets for identical assets (Level 1) Significant other unobservable inputs (Level 2) Significant unobservable inputs (Level 3) (dollars in thousands) Cash equivalents $ 66,574 $ 66,574 $ - $ - U.S. government and agency obligations 10,199 - 10,199 - Common stocks - - - - Corporate bonds 35,092 - 35,092 - Mutual funds - fixed income 53,487 53,487 - - Mutual funds - equities 596 596 - - Total $ 165,947 $ 120,657 $ 45,291 $ - The following table sets forth by level, within the fair value hierarchy, the pension plan’s assets at fair value as of December 31, 2024: Fair value measurements at December 31, 2024 using Total fair value Quoted prices in active markets for identical assets (Level 1) Significant other unobservable inputs (Level 2) Significant unobservable inputs (Level 3) (dollars in thousands) Cash equivalents $ 1,940 $ 1,940 $ - $ - U.S. government and agency obligations 16,250 - 16,250 - Common stocks 40,542 40,542 - - Corporate bonds 18,385 - 18,385 - Mutual funds - fixed income 36,958 36,958 - - Mutual funds - equities 34,873 34,873 - - Total $ 148,948 $ 114,313 $ 34,635 $ - The Company has established a Voluntary Employees Beneficiary Association Trust (VEBA) to fund the employee benefit plan covering medical and dental benefits. For the years ended December 31, 2025 and 2024, the Company contributed $ 17.8 million and $ 16.4 million, respectively, to the VEBA. The Company has established an employee savings plan under Section 401(k) of the Internal Revenue Code (the Code). Under this plan, employees are allowed to contribute a maximum of 75 % of their base pay, subject to certain IRS limitations. The Company’s matching contribution is equal to one-half of the employee’s contribution up to a maximum of 6 % of the employee’s base pay. For the years ended December 31, 2025, and 2024 the Company contributed $ 3.9 million for both periods, to the 401(k) plan. In 2019, with the freezing of the defined benefit pension plan effective December 31, 2018, the Company added to the defined contribution plan two additional benefits. Effective January 1, 2019, a Non-Elective Contribution (NEC) of 4 % was given to all employees, except employees drawing a pension. Effective December 1, 2024, the plan was amended to allow any participant electing to commence pension benefits as a result of the special election window from October 3, 2024 to November 15, 2024, to continue to be eligible for the NEC contribution. NEC eligibility has an immediate entry date for employees aged 18 or older. For the years ended December 31, 2025 and 2024 the Company contributed $ 8.7 million and $ 8.2 million, respectively, to the 401(k) plan related to this benefit. 126 The Company maintains deferred compensation plans. The liability for the plans, aggregating $ 33.9 million and $ 35.7 million at December 31, 2025 and 2024, respectively, is recorded in other liabilities in the accompanying consolidated balance sheets. Total expenses under these arrangements, included in salaries and employee benefits, were $ 4.3 million and $ 3.4 million for the years ended December 31, 2025 and 2024, respectively. (11) Stock-Based Compensation The Company provides stock-based compensation to key employees in the form of restricted stock awards (RSAs) and stock-based performance bonuses. The Company’s restricted stock plan is designed to attract, retain, and reward employees while aligning the interest of the employees with the success of the Company. Awards are determined by the Company’s Human Resources Committee of the Board of Directors. The Restricted Stock Plan was amended on October 9, 2025 and replaced with the Central Bancompany, Inc. 2025 Equity Incentive Plan. At December 31, 2025, 2,500,000 shares of common stock remained available for issuance under the plan. Restricted stock awards represent a grant of shares of common stock that vests over a specified period, subject to the satisfaction of service conditions. The vesting period for RSAs awarded by the Company is generally 3 or 5 years, but vesting terms may vary in accordance with the specific provisions of the individual award agreements. There are restrictions as to the transferability, sale, pledging, or assigning, among others, prior to the vesting period. Dividend rights are received upon grant of the restricted stock awards but are paid upon vesting. The fair value of RSAs is determined based on the weighted average selling price of the Company's common stock during a specified period that is within 30 days before or 30 days after the applicable determination date, as determined by the Board of Directors in its sole discretion. Compensation expense is recognized over the vesting period of the awards, based on the fair value at grant date. The following represents a summary of changes in the Company’s nonvested restricted stock shares as of December 31, 2025. Shares Weighted average grant date fair value Nonvested at January 1, 2024 294,450 $ 12.94 Granted 295,950 13.08 Vested ( 91,750 ) 12.69 Forfeited ( 2,200 ) 13.11 Nonvested at December 31, 2024 496,450 13.07 Granted 325,500 13.53 Vested ( 146,600 ) 12.98 Forfeited ( 73,050 ) 13.32 Nonvested at December 31, 2025 602,300 $ 13.31 The Company also awards stock bonuses to specified employees. Stock bonuses are granted at the discretion of the Company's Board of Directors. The fair value of stock bonuses is recognized as compensation expense on the date the award is granted as these shares are unrestricted and not subject to a future service requirement. For the years ended December 31, 2025 and 2024, the total stock-based compensation expense recognized for restricted stock awards and stock bonuses was $ 3.1 million and $ 3.5 million, respectively. This expense is calculated on the graded vesting method and is included in salaries and employee benefits. The fair value of restricted shares vested totaled $ 2.0 million and $ 1.2 million during the years ended December 31, 2025 and 2024, respectively. The unrecognized compensation cost of nonvested restricted stock totaled $ 3.5 million at December 31, 2025. The Company expects to recognize compensation expense of $ 1.9 million in 2026, $ 1.0 million in 2027, $ 0.4 million in 2028, $ 0.2 million in 2029, and $ 19.1 thousand in 2030 on the nonvested shares of restricted stock. (12) Earnings Per Share The Company, with its two classes of common stock, applies the two-class method of computing income per share. The two-class method requires the calculation of separate income per share amounts for the nonvested share-based awards and for common stock. The income per share attributable to common stock is shown in the following table. 127 Nonvested share-based awards vest subject to the satisfaction of service conditions and are subject to forfeiture until such service conditions are met. The nonvested share-based awards are not considered securities which participate in undistributed earnings with common stock. However, dividends or dividend equivalents actually declared or paid and charged to retained earnings for unvested awards with forfeitable rights to dividends reduces income available to common shareholders as these amounts reflect dividends that have been allocated to other-than-common-stockholders and reduce the amount available for distribution to the common stockholders. Basic income per share is based on the weighted average number of common shares outstanding during the year. Diluted income per share gives effect to all dilutive potential common shares that were outstanding during the year. Since the nonvested share-based awards are subject to forfeiture, the shares are excluded from both the basic and diluted income per share computation. Presented below is a summary of the components used to calculate basic and diluted income per common share: For the years ended December 31, 2025 2024 (dollars in thousands, except per share data) Basic income per share: Net income attributable to Central Bancompany, Inc. $ 390,853 $ 305,810 Less: Dividends declared on forfeitable nonvested restricted stock 667 120 Net income allocated to common stock $ 390,186 $ 305,690 Weighted average common shares outstanding 222,352 220,589 Basic income per common share $ 1.75 $ 1.39 Diluted income per common share: Net income attributable to Central Bancompany, Inc. $ 390,853 $ 305,810 Less: Dividends declared on forfeitable nonvested restricted stock 667 120 Net income allocated to common stock $ 390,186 $ 305,690 Weighted average diluted common shares outstanding 222,352 220,589 Diluted income per common share: $ 1.75 $ 1.39 The Company is permitted, by authorization of the Board of Directors, to repurchase shares of the Company’s common stock. The authorization in June 2023 approved purchases until June 30, 2025, for a purchase price of not more than $ 25.0 million in aggregate. The Company opted not to purchase all authorized shares, with $ 12 million unutilized. The table below shows activity in the outstanding shares of the Company’s common stock during the years ended December 31, 2025 and 2024. December 31, 2025 2024 (shares in thousands) Shares outstanding at beginning of year 220,385 220,956 Issuance of stock-based compensation 276 318 Purchases of treasury stock - ( 889 ) Initial public offering 20,445 - Shares outstanding at end of year 241,106 220,385 (13) Capital Adequacy Quantitative measures established by regulation to ensure capital adequacy require banks to maintain minimum amounts and ratios (set forth in the table below on a consolidated basis, amounts in thousands) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets, and of Tier 1 capital to average assets. At December 31, 2025, the Company met all capital requirements to which it is subject, and the Bank’s capital position exceeded the regulatory definition of well-capitalized. The Basel III minimum required ratios for well-capitalized banks (under prompt corrective action provisions) are 6.5% for Tier 1 common capital, 8.0% for Tier I capital, 10.0% for Total capital and 5.0% for the leverage ratio. 128 A summary of the Company’s and the Bank’s capital ratios at December 31, 2025 and 2024 is as follows: 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 % 129 (14) Leasing The Company’s lessee arrangements predominantly consist of operating leases for premises and equipment; the Company’s financing leases are not significant. The table below summarizes lease-related balances that the Company reported on its consolidated balance sheets and lease terms: December 31, 2025 2024 (dollars in thousands) Lease balances Right of use assets $ 31,281 $ 30,187 Lease liabilities 32,557 31,522 Lease terms Operating leases Year through which lease terms extend 2049 2049 Weighted average remaining lease term 23.8 25.1 Weighted average discount rate 3.91 % 3.80 % Finance leases Year through which lease terms extend 2038 2027 Weighted average remaining lease term 3.1 2.1 Weighted average discount rate 1.49 % 1.49 % Lease Costs The following table presents lease costs, which are included in net occupancy and equipment expenses on the Consolidated Statements of Income: December 31, 2025 2024 (dollars in thousands) Lease costs Operating lease costs $ 3,506 $ 3,633 Finance lease costs 5 5 Short-term lease costs 680 493 Total lease costs $ 4,191 $ 4,132 Lease Cash Flow Cash paid for amounts included in the measurement of lease liabilities was as follows: December 31, 2025 2024 (dollars in thousands) Cash flows related to leases Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,539 $ 3,585 Financing cash flows from finance leases 5 5 Operating lease cash flows - liability reduction 2,902 2,570 ROU assets obtained during the period in exchange for operating lease liabilities 3,938 606 ROU assets obtained during the period in exchange for financing lease liabilities - - 130 Lease Maturity Analysis The Company’s undiscounted operating lease liabilities are scheduled to mature as follows: As of December 31, 2025 (dollars in thousands) Rent commitments 2026 $ 3,440 2027 3,085 2028 2,837 2029 2,676 2030 2,332 Thereafter 36,184 Total undiscounted cash flows 50,555 Less: Amounts representing interest ( 17,997 ) Present value of future minimum lease payments $ 32,557 (15) Commitments, Contingencies, and Guarantees In the normal course of business, in order to meet the needs of customers, the Company is subject to off-balance sheet risk which could potentially impact its 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 and letters of credit on behalf of 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, the Company assumes a portion of the counterparty credit risk associated with a client's interest rate swap transaction with a third-party financial institution, for which the Company receives a fee. If the client fails to meet its payment obligations under the swap, the Company may be required to fulfill those obligations up to its participation level. 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. The Company’s banking markets are located within the states of Missouri, Kansas, Illinois, Iowa, Oklahoma, Colorado, North Carolina, Tennessee, Florida, and Arkansas and the Company’s loan portfolio has no unusual geographic concentrations of credit risk beyond its market areas. Such commitments and conditional obligations were as follows as of the dates presented. Contractual amount as of December 31, 2025 2024 (dollars in thousands) Off-balance sheet commitments 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 14,720 131 The Company and its subsidiaries are defendants in various claims, legal actions, and complaints arising in the ordinary course of business. The Company records losses when information related to the loss contingencies represented by those matters indicates both that a loss is probable and that the amount of loss can be reasonably estimated. Any such accruals are adjusted thereafter as appropriate to reflect changes in circumstances. Due to the inherent subjectivity of assessments and unpredictability of outcomes of legal proceedings, any amounts accrued may not represent the ultimate loss to the Company from legal proceedings. (16) Fair Value Disclosures Fair Value Hierarchy The Company uses fair value measurements to record fair value adjustments to certain financial and nonfinancial assets and liabilities and to determine fair value disclosures. Various financial instruments such as AFS and trading securities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets and liabilities on a nonrecurring basis, such as loans, loans held for sale, mortgage servicing rights, and certain other investment securities. These nonrecurring fair value adjustments typically involve lower of cost or market accounting or write-downs of individual assets. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, the Company uses various valuation techniques and assumptions when estimating fair value, which are in accordance with ASC 820. ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: • Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liabilities, either directly or indirectly (such as interest rates, yield curves, and prepayment speeds). • Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value. These may be internally developed, using the Company’s best information and assumptions that a market participant would consider. When determining the fair value measurements for assets and liabilities required or permitted to be recorded or disclosed at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to market observable data for similar assets and liabilities. 132 Valuation Methods for Instruments Measured at Fair Value on a Recurring Basis The following table presents assets and liabilities measured at fair value on a recurring basis (including items that are required to be measured at fair value) at December 31, 2025 and 2024. Fair value measurements at December 31, 2025 using Total fair value Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (dollars in thousands) Assets: Loans held for sale $ 54,119 $ - $ 54,119 $ - Available-for-sale investment securities: U.S. government obligations and government-sponsored enterprises 6,349,320 928,287 5,421,033 - Obligations of states and political subdivisions 16,644 - 16,644 - Other securities 6,499 1,018 5,481 - Equity investments 48,200 - 36,690 11,510 Derivatives 7,969 - 7,969 - Total assets $ 6,482,752 $ 929,305 $ 5,541,937 $ 11,510 Liabilities: Derivatives $ 7,021 $ - $ 7,021 $ - Total liabilities $ 7,021 $ - $ 7,021 $ - Fair value measurements at December 31, 2024 using Total fair value Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (dollars in thousands) Assets: Loans held for sale $ 34,264 $ - $ 34,264 $ - Available-for-sale investment securities: U.S. government obligations and government-sponsored enterprises 5,553,593 1,269,553 4,284,040 - Obligations of states and political subdivisions 21,141 - 21,141 - Other securities 28,989 614 28,375 - Equity investments 48,770 724 36,765 11,281 Trading 666 - 666 - Derivatives 10,312 - 10,312 - Total assets $ 5,697,735 $ 1,270,891 $ 4,415,563 $ 11,281 Liabilities: Derivatives $ 8,842 $ - $ 8,842 $ - Total liabilities $ 8,842 $ - $ 8,842 $ - 133 Following is a description of the Company’s valuation methodologies used for instruments measured at fair value on a recurring basis: Securities Securities are identified as trading, available-for-sale, or held-to-maturity at the time of purchase based on the intent of management. Trading securities are carried at fair value with unrealized gains and losses included in current period earnings. AFS securities are accounted for in accordance with ASC 320 and are carried at fair value. Unrealized gains and losses are recorded, net of deferred income taxes, as accumulated other comprehensive income (loss) in stockholder's equity. AFS securities are separately identified as pledged to creditors if the creditor has the right to sell or re-pledge the collateral. This portfolio comprises the majority of the assets the Company records at fair value. The fair value of our securities, which consist primarily of obligations of the U.S. government and government sponsored enterprises (GSEs), is generally based on instrument-level pricing provided to us by a third-party pricing service which utilizes a combination of market quotations in an active market where available, and industry-standard models that consider various assumptions, including time value, yield curves, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all these assumptions are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. We periodically evaluate the pricing supplied by third-party pricing services by comparing the provided pricing with other sources including, but not limited to, recent transactions in similar instruments, dealer quotes and modeled values using various observable market inputs. Based on the results of such evaluations, management may adjust prices obtained from third-party pricing services to more appropriately reflect its estimate of prices that could be realized in orderly transactions in the current market. The various portions of the estimated fair value of the Company’s equity securities are based on several inputs. Where quoted prices are available in an active market, the measurements are classified as Level 1. Equity securities which are infrequently traded or restricted, such as equity interests in the Federal Reserve and Federal Home Loan Bank, are classified as Level 2. The fair value of equity securities based on unobservable inputs and estimates are classified as Level 3. Loans Held for Sale Loans held for sale are carried at fair value. The portfolio consists primarily of residential real estate loans that are originated with the intent to sell. The Company contracts to sell the loans to FHLMC, FNMA, and other private investors. Fair value measurements on these loans held for sale are based on quoted market prices for similar loans in the secondary market and are classified as Level 2. No write-down was necessary at December 31, 2025 and 2024. Derivatives The Company’s derivative instruments include interest rate swaps, interest rate lock commitments (IRLC) and to-be-announced (TBA) contracts for hedging our mortgage loan pipeline. Valuations for interest rate swaps are derived from a proprietary model whose significant inputs are readily observable market parameters, primarily yield curves used to calculate current exposure. The results of the model are constantly validated through comparison to active trading in the marketplace. The fair value measurements of interest rate swaps and floors are classified as Level 2 due to the observable nature of the significant inputs utilized. Derivatives relating to residential mortgage loan sale activity include commitments to originate mortgage loans held for sale, forward loan sale contracts, and forward commitments to sell TBA securities. The fair values of loan commitments and sale contracts are estimated using quoted market prices for loans similar to the underlying loans in these instruments. The valuations of loan commitments are further adjusted to include embedded servicing value and the probability of funding. These assumptions are considered Level 2 inputs and are significant to the loan commitment valuation; accordingly, the measurement of loan commitments is classified as Level 2. The fair value measurement of TBA contracts is based on security prices published on trading platforms and is classified as Level 2. 134 Valuation Methods for Instruments Measured at Fair Value on a Nonrecurring Basis The following table presents assets measured at fair value on a nonrecurring basis (including items that are required to be measured at fair value) at December 31, 2025 and 2024. Fair value measurements at December 31, 2025 using Total fair value Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (dollars in thousands) Assets: Collateral dependent loans $ 20,628 $ - $ - $ 20,628 Mortgage servicing rights 59,997 - - 59,997 Total assets $ 80,625 $ - $ - $ 80,625 Fair value measurements at December 31, 2024 using Total fair value Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (dollars in thousands) Assets: Collateral dependent loans $ 15,376 $ - $ - $ 15,376 Mortgage servicing rights 60,339 - - 60,339 Total assets $ 75,715 $ - $ - $ 75,715 Following is a description of the Company’s valuation methodologies used for other financial instruments measured at fair value on a nonrecurring basis: Mortgage Servicing Rights The Company initially measures its mortgage servicing rights at fair value and amortizes them over the period of estimated net servicing income. They are periodically assessed for impairment based on fair value at the reporting date. Mortgage servicing rights do not trade in an active market with readily observable prices. Accordingly, the fair value is estimated based on a valuation model, which calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, market discount rates, cost to service, float earnings rates, and other ancillary income, including late fees. The fair value measurements are classified as Level 3. There was no valuation adjustment recorded on the mortgage servicing rights at December 31, 2025. Collateral Dependent Loans While the overall portfolio is not carried at fair value, adjustments are recorded on certain loans to reflect partial write-downs that are based on the value of the underlying collateral. Nonrecurring adjustments also include certain impairment amounts for collateral dependent loans when establishing the allowance for credit losses on loans. In determining the value of real estate collateral, the Company relies on external appraisals and assessment of property values by its internal staff. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgments based on the experience and expertise of internal specialists. Because many of these inputs are not observable, the measurements are classified as Level 3. 135 Foreclosed Assets Foreclosed assets consist of loan collateral, which has been repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and other non-real estate property. Foreclosed assets are recorded as held for sale initially at the lower of the loan balance or fair value of the collateral less estimated selling costs. After foreclosure, valuations are updated periodically, and the assets may be marked down further, reflecting a new cost basis. Fair value measurements may be based upon appraisals, third-party price opinions, or internally developed pricing methods. These measurements are classified as Level 3. Fair Value of Financial Instruments The carrying amounts and estimated fair values of financial instruments held by the Company, in addition to a discussion of the methods used and assumptions made in computing the estimates, are set forth below. Cash and Due from Banks, Short-term Interest-Bearing Deposits, Federal Funds Sold and Securities Purchased Under Agreement to Resell, and Accrued Interest Receivable The carrying amounts for cash and due from banks, short-term interest-bearing deposits, and federal funds sold, and securities purchased under agreements to resell, and accrued interest receivable approximate fair value because they mature in 90 days or less and do not present unanticipated credit concerns. Held-to-Maturity Securities The fair value of our HTM investment securities is generally based on instrument-level pricing provided to us by a third-party pricing service which utilizes a combination of market quotations in an active market where available, and industry standard models that consider various assumptions, including time value, yield curves, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all these assumptions are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. We periodically evaluate the pricing supplied by third-party pricing services by comparing the provided pricing with other sources including, but not limited to, recent transactions in similar instruments, dealer quotes and modeled values using various observable market inputs. Based on the results of such evaluations, management may adjust prices obtained from third-party pricing services to more appropriately reflect its estimate of prices that could be realized in orderly transactions in the current market. Loans The estimated fair value of the Company’s loan portfolio is based on the segregation of loans by type – commercial, residential mortgage, and consumer. Each loan category is further segmented into fixed and adjustable-rate interest categories. In estimating the fair value of each category of loan, the carrying amount of the loan is reduced by an allocation of the allowance for loan losses. Such allocation is based on management’s loan classification system, which is designed to measure the credit risk inherent in each classification category. The estimated fair value for variable rate loans is the carrying value of such loans, reduced by an allocation of the allowance for credit losses based on management’s loan classification system. The estimated fair value of fixed-rate loans is calculated by discounting the scheduled cash flows for each loan category – commercial, residential real estate, and consumer. The cash flows through maturity for each category of fixed-rate loans are aggregated for the Company. Prepayment estimates for residential real estate and installment consumer loans are based on estimates for similar instruments in the secondary market with similar maturity schedules and interest rates. Discount rates used for each loan category of fixed rate loans represent rates the Company believes are reflective of what the Company could sell loans for based on market conditions and the Company’s assessment of credit quality. Federal Funds Purchased and Securities Sold Under Agreements to Repurchase The estimated fair value of federal funds purchased and securities sold under agreements to repurchase approximate their carrying values because of the short-term nature of these borrowings. 136 Accrued Interest Payable The estimated fair value of accrued interest payable approximates the carrying value because of the short-term nature of the liability. The estimated fair values of the Company’s financial instruments are as follows: December 31, 2025 Carrying amount Estimated fair value Level 1 Level 2 Level 3 (dollars in thousands) Financial Assets Cash and due from banks $ 258,588 $ 258,588 $ - $ - Short-term interest-bearing deposits 1,805,215 1,805,215 - - Time deposits 1,039 - - 1,039 Federal funds sold and securities purchased under agreements to resell 340 340 - - Investment securities Available for sale 6,372,463 929,305 5,443,158 - Held to maturity 1,689 - 1,023 677 Equity 48,200 - 36,690 11,510 Trading - - - - Net loans held for investment 11,284,931 - - 11,285,348 Loans held for sale 54,119 - 54,119 - Derivatives 7,969 - 7,969 - Total assets $ 19,834,553 $ 2,993,448 $ 5,542,959 $ 11,298,574 December 31, 2024 Carrying amount Estimated fair value Level 1 Level 2 Level 3 (dollars in thousands) Financial Assets Cash and due from banks $ 265,209 $ 265,209 $ - $ - Short-term interest-bearing deposits 969,416 969,416 - - Time deposits 699 - - 699 Federal funds sold and securities purchased under agreements to resell 7,183 7,183 - - Investment securities Available for sale 5,603,723 1,270,167 4,333,556 - Held to maturity 3,225 - 2,554 677 Equity 48,770 724 36,765 11,281 Trading 666 - 666 - Net loans held for investment 11,469,812 - - 11,283,393 Loans held for sale 34,264 - 34,264 - Derivatives 10,312 - 10,312 - Total assets $ 18,413,279 $ 2,512,699 $ 4,418,117 $ 11,296,050 December 31, 2025 Carrying amount Estimated fair value Level 1 Level 2 Level 3 (dollars in thousands) Financial Liabilities Federal funds purchased and customer repurchase agreements $ 1,011,851 $ 1,011,851 $ - $ - Accrued interest payable 9,306 9,306 - - Derivatives 7,021 - 7,021 - 137 December 31, 2024 Carrying amount Estimated fair value Level 1 Level 2 Level 3 (dollars in thousands) Financial Liabilities Federal funds purchased and customer repurchase agreements $ 1,007,295 $ 1,007,295 $ - $ - Accrued interest payable 10,291 10,291 - - Derivatives 8,842 - 8,842 - Limitations Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective, involve uncertainties and cannot be determined with precision. Changes in assumptions could significantly affect the estimates. (17) Accumulated Other Comprehensive Loss The table below shows the activity and accumulated balances of components of other comprehensive loss. Unrealized gains/losses on AFS securities Pension plan Total (dollars in thousands) Balance December 31, 2023 $ ( 255,195 ) $ ( 12,397 ) $ ( 267,592 ) Other comprehensive income before reclassifications 92,666 23,714 116,380 Reclassification adjustment for net losses on AFS securities included in net income 51,249 — 51,249 Current period other comprehensive income, before tax 143,915 23,714 167,629 Income tax (expense) ( 34,309 ) ( 5,653 ) ( 39,962 ) Current period other comprehensive income, net of tax 109,606 18,061 127,667 Balance December 31, 2024 ( 145,589 ) 5,664 ( 139,925 ) Other comprehensive income before reclassifications 136,831 17,820 154,651 Reclassification adjustment for net losses on AFS securities included in net income 6,920 — 6,920 Current period other comprehensive income, before tax 143,751 17,820 161,571 Income tax (expense) ( 34,270 ) ( 4,248 ) ( 38,518 ) Current period other comprehensive income, net of tax 109,481 13,572 123,053 Balance December 31, 2025 $ ( 36,108 ) $ 19,236 $ ( 16,872 ) 138 (18) Parent Company Condensed Financial Statements Following are the condensed financial statements of Central Bancompany, Inc. (Parent only) for December 31, 2025 and December 31, 2024. CENTRAL BANCOMPANY, INC. Condensed Balance Sheets December 31, 2025 and 2024 December 31, 2025 2024 (dollars in thousands) Assets Investment in bank subsidiary $ 1,874,332 $ 1,727,762 Cash and due from bank subsidiary 896,588 312,447 Investment Securities AFS 721 982 Loans - 18,720 Note receivable due from bank subsidiary 1,010,000 980,000 Advances to subsidiaries, net of borrowings 1,010 75,120 Other assets 42,741 36,885 Total assets $ 3,825,392 $ 3,151,916 Liabilities and Stockholders' Equity Other liabilities $ 41,415 $ 41,255 Stockholders' equity 3,783,977 3,110,661 Total liabilities and stockholders' equity $ 3,825,392 $ 3,151,916 CENTRAL BANCOMPANY, INC. Condensed Statements of Income Years ended December 31, 2025 and 2024 December 31, 2025 2024 (dollars in thousands) Income Dividends received from bank subsidiary $ 320,000 $ 245,000 Interest income 56,895 62,677 Management fees charged to subsidiaries - 850 Other income 432 464 Total income 377,327 308,991 Expense Salaries and employee benefits 9,651 9,181 Management & data processing fees paid to subsidiaries 893 897 Other expenses 2,476 1,621 Total expense 13,020 11,699 Income taxes 10,545 12,450 Income before undistributed earnings of subsidiaries 353,762 284,842 Undistributed earnings (loss) of subsidiaries 37,091 20,968 Net income $ 390,853 $ 305,810 139 CENTRAL BANCOMPANY, INC. Condensed Statements of Cash Flows Years ended December 31, 2025 and 2024 December 31, 2025 2024 (dollars in thousands) Cash flows from operating activities: Net income $ 390,853 $ 305,810 Adjustments to reconcile net income to net cash provided by operating activities: Earnings of consolidated subsidiaries, net of dividends ( 37,091 ) ( 20,968 ) (Increase) in other assets ( 1,900 ) ( 17,513 ) Net cash provided by operating activities 351,862 267,329 Cash flows from investing activities: Proceeds from maturities of available-for-sale securities 265 4,662 Decrease (increase) in advances to subsidiaries, net 74,110 ( 74,587 ) Other, net 1,541 ( 6,226 ) Net cash provided by (used in) investing activities 75,916 ( 76,151 ) Cash flows from financing activities: Purchase of treasury stock - ( 12,143 ) Issuance of stock under equity compensation plans ( 218 ) ( 285 ) Proceeds from issuance of common stock 403,112 - Dividends paid ( 246,531 ) ( 57,532 ) Other, net - 942 Net cash provided by (used in) financing activities 156,363 ( 69,018 ) Net increase in cash and cash equivalents 584,141 122,160 Cash and cash equivalents at beginning of year 312,447 190,288 Cash and cash equivalents at end of year $ 896,588 $ 312,447 Dividends paid by the Parent to its shareholders were substantially provided from Bank dividends. The Bank may distribute dividends without prior regulatory approval, provided that the dividends do not exceed the sum of net income for the current year and retained net income for the preceding two years, subject to maintenance of minimum capital requirements. At December 31, 2025, the Bank has $ 1.0 billion of borrowings from the Parent as part of its strategy to manage FDIC insurance premiums. The maturity date of this note extends by 3 months every quarter resulting in an extended maturity date that is never less than 15 months from the last extension. The interest rate is a variable rate equal to the current interest rate on excess reserves, adjusted quarterly. At December 31, 2025, the fair value of the investment securities held by the Parent consisted of investments of $ 721 thousand in U.S. agency mortgage-backed securities. (19) Business Segment Reporting The Company’s reportable segments are determined by its Chief Executive Officer, who is the designated CODM. The Company has strategically aligned its operations into the following three reportable segments: Consumer Banking, Commercial Banking, and Wealth Management (collectively, the Business Segments). These operating segments are strategic business units that offer different products and services and have different marketing strategies. To evaluate segment performance and make informed decisions regarding the allocation of resources to the segments, the CODM reviews each segment’s actual revenues, consisting of net interest income plus noninterest income, and net income against budgeted revenues and net income on a regular basis. This process allows the Company to (1) assess the profitability of a specific business segment by aligning relevant costs with revenue, and (2) evaluate each business segment in a way that reflects its economic impact on consolidated earnings. 140 During the year ended December 31, 2025, the Company modified the structure of its internal organization to better align financial reporting with the way management evaluates performance and allocates resources. Previously, the Company reported two operating segments: Community Banking and Wealth Management. As a result of the organizational changes, management now reviews operating performance and makes resource allocation decisions based on three operating segments: Consumer, Commercial, and Wealth Management. This change represents a reconsideration of the Company’s operating and reportable segments in accordance with ASC 280, Segment Reporting. In accordance with ASC 280‑10‑50‑34, the Company has recast all prior‑period segment information presented for comparative purposes to reflect the new segment structure. The change affected the aggregation and presentation of certain revenues, expenses, and allocated corporate costs among the Company’s operating segments, but did not impact consolidated net income, total assets, shareholders’ equity, or cash flows for any periods presented. Consistent with the requirements of ASC 250‑10‑50‑1(a), the recast of prior periods has been applied retrospectively to all comparative periods presented herein, and the nature and reason for the change in segment presentation are disclosed. The change did not result from a change in accounting principle but rather from a change in the organizational structure that constitutes a change in the internal information regularly reviewed by the CODM. Management believes the new segment structure provides improved transparency into the distinct customer groups served by the Company and the economic characteristics of each segment. The Consumer Banking operating segment consists of various consumer loan and deposit products offered primarily through its 155 full-service branches. This segment also includes residential mortgage, installment lending and other consumer loan financing options, along with debit and credit card loan and fee businesses. The Commercial Banking operating segment includes full-service relationship banking solutions to businesses, agencies and community organizations including commercial, small business and government segments. Our business payment solutions include treasury management services, merchant and commercial bank card products. 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 Central Trust Bank. The Company uses a funds transfer pricing method to value funds used (e.g., loans, fixed assets, cash, etc.) and funds provided (deposits, borrowings, and equity) by the business segments and their components. This process assigns a specific value to each new source or use of funds with a maturity, based on current interest rates, thus determining an interest spread at the time of the transaction. Non-maturity assets and liabilities are valued using weighted average pools. The funds transfer pricing process attempts to remove interest rate risk from valuation, allowing management to compare profitability under various rate environments. The operating segments also include a number of allocations of income and expense from various support and overhead centers within the Company. Management periodically makes changes to methods of assigning costs and income to its business segments to better reflect operating results. Segment Financial Information The accounting policies of the Company’s operating segments are the same as those described in the summary of significant accounting policies in “Note 1, Summary of Significant Accounting Policies," to our consolidated financial statements. The reportable segments include a number of allocations of income and expense from various support and overhead functions within the Company. 141 Financial results by operating segment, including significant expense categories provided to the CODM, are detailed below: For the year ended December 31, 2025 Consumer Commercial Wealth Management Corp / Other Total (dollars in thousands) Net interest income $ 315,068 $ 436,212 $ ( 75 ) $ 38,460 $ 789,665 Provision for credit losses¹ 4,402 3,754 ( 4 ) 1,159 9,311 Net interest income after provision for credit losses 310,666 432,458 ( 71 ) 37,301 780,354 Noninterest income¹ 111,268 42,869 77,360 197 231,694 Noninterest expense 243,012 159,151 52,168 51,159 505,490 Income before income taxes 1 178,922 316,176 25,121 ( 13,661 ) 506,558 Income taxes 42,886 73,155 6,049 ( 6,385 ) 115,705 Net income 1 $ 136,036 $ 243,021 $ 19,072 $ ( 7,276 ) $ 390,853 Assets $ 3,498,285 $ 8,530,725 $ 19,441 $ 8,703,527 $ 20,751,978 Assets under advice - - 15,956,069 - 15,956,069 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 Commercial Wealth Management Corp / Other Total Noninterest income (dollars in thousands) Service charges and commissions $ 39,005 $ 18,191 $ - $ 435 $ 57,631 Payment services revenue 44,629 22,844 - 97 67,570 Brokerage services ( 84 ) 1,346 24,982 2,452 28,696 Fees for fiduciary services - - 52,375 ( 421 ) 51,954 Mortgage banking revenues 39,571 - - - 39,571 Investment securities (losses) gains, net - - - ( 6,811 ) ( 6,811 ) Other income¹ ( 11,853 ) 488 3 4,445 ( 6,917 ) Total noninterest income $ 111,268 $ 42,869 $ 77,360 $ 197 $ 231,694 ¹ Consumer includes a $ 13.6 million loss on the sale of the consumer lease portfolio. For the year ended December 31, 2025 Consumer Commercial Wealth Management Corp / Other Total Noninterest expense (dollars in thousands) Salaries and employee benefits $ 110,983 $ 56,642 $ 36,907 $ 93,548 $ 298,080 Net occupancy and equipment 32,917 7,207 2,991 5,875 48,990 Computer software and maintenance 6,182 3,438 1,746 11,190 22,556 Marketing and business development 7,916 2,163 1,385 9,206 20,670 Legal and professional fees 1,545 2,243 871 17,744 22,403 Bankcard processing, rewards and related cost 22,072 9,661 - ( 986 ) 30,747 Other expenses 27,455 3,800 3,584 27,205 62,044 Allocated expenses 33,942 73,997 4,684 ( 112,623 ) - Total noninterest expense $ 243,012 $ 159,151 $ 52,168 $ 51,159 $ 505,490 142 For the year ended December 31, 2024 Consumer Commercial Wealth Management Corp / Other Total (dollars in thousands) Net interest income $ 276,775 $ 403,079 $ ( 250 ) $ 7,720 $ 687,324 Provision for credit losses 11,640 3,359 2 ( 414 ) 14,587 Net interest income after provision for credit losses 265,135 399,720 ( 252 ) 8,134 672,737 Noninterest income 124,854 43,334 69,212 ( 27,010 ) 210,390 Noninterest expense 242,560 148,737 46,863 51,247 489,407 Income before income taxes 147,429 294,317 22,097 ( 70,123 ) 393,720 Income taxes 35,260 67,799 5,306 ( 20,455 ) 87,910 Net income $ 112,169 $ 226,518 $ 16,791 $ ( 49,668 ) $ 305,810 Assets $ 3,534,547 $ 8,572,871 $ 24,728 $ 7,110,397 $ 19,242,543 Assets under advice - - 13,527,632 - 13,527,632 For the year ended December 31, 2024 Consumer Commercial Wealth Management Corp / Other Total Noninterest income (dollars in thousands) Service charges and commissions $ 38,248 $ 17,449 $ - $ 440 $ 56,137 Payment services revenue 43,358 24,068 - 105 67,531 Brokerage services ( 42 ) 1,251 22,406 2,124 25,739 Fees for fiduciary services - - 46,503 ( 606 ) 45,897 Mortgage banking revenues 42,080 - - - 42,080 Investment securities (losses) gains, net - - - ( 36,661 ) ( 36,661 ) Other income 1,210 566 303 7,588 9,667 Total noninterest income $ 124,854 $ 43,334 $ 69,212 $ ( 27,010 ) $ 210,390 For the year ended December 31, 2024 Consumer Commercial Wealth Management Corp / Other Total Noninterest expense (dollars in thousands) Salaries and employee benefits $ 104,815 $ 50,991 $ 32,285 $ 92,996 $ 281,087 Net occupancy and equipment 31,568 6,439 2,805 6,319 47,131 Computer software and maintenance 6,412 2,975 1,695 9,236 20,318 Marketing and business development 8,050 2,108 1,564 8,268 19,990 Legal and professional fees 840 1,646 1,076 22,728 26,290 Bankcard processing, rewards and related cost 27,360 11,684 - ( 7,042 ) 32,002 Other expenses 29,291 3,783 3,164 26,351 62,589 Allocated expenses 34,224 69,111 4,274 ( 107,608 ) - Total noninterest expense $ 242,560 $ 148,737 $ 46,863 $ 51,247 $ 489,407 The segment activity, as shown above, includes both direct and allocated items. Amounts in the "Corporate / Other" column include 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, Accounting, 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. 143 The Company's reportable segments are strategic lines of business that offer different products and services. They are managed separately because each line services a specific customer need, requiring different performance measurement analysis and marketing strategies. The performance measurement of the segments is based on the management structure of the Company and is not necessarily comparable with similar information for any other financial institution. The information is also not necessarily indicative of the segments' financial condition and results of operations if they were independent entities. (20) Capital Structure, Share Reclassification, Stock Split Effective in the Form of a Stock Dividend In April of 2025, the Company filed a Second Amended and Restated Articles of Incorporation following shareholder approval to amend its capital structure. The amendment, effective April 28, 2025, increased the number of authorized shares of capital stock from 13,000,000 to 600,000,000 shares, allocated as follows: 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. Additionally, the par value of all classes of stock was reduced from $ 1.00 per share to $ 0.01 per share. As part of the amendment, all outstanding shares of Class B Common Stock were reclassified into Class A Common Stock on a one-for-one basis. As a result, 143,306,750 shares of Class B Common Stock outstanding as of December 31, 2024, were converted into Class A Common Stock, and no shares of Class B Common Stock remain outstanding. 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 Company has retroactively adjusted all share and per-share data in the consolidated financial statements for all periods presented to reflect the reclassification, revised capital structure, and stock split as if they had occurred at the beginning of the earliest period presented. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures None