Central Bancompany, Inc. 10-Q

cbci-20260630 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ FORM 10-Q _________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2026 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-42965 _________________________ Central Bancompany, Inc. (Exact name of registrant as specified in its charter) _________________________ Missouri 43-0959114 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 238 Madison Street Jefferson City , MO 65101 (Address of Principal Executive Offices) (Zip Code) ( 573 ) 634-1111 Registrant’s telephone number, including area code Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Class A common stock, par value $0.01 per share CBC The Nasdaq Stock Market LLC Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,”and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer o Accelerated filer o Non-accelerated filer x Smaller reporting company o Emerging growth company x If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x The registrant had 239,505,133 outstanding shares of Class A common stock, par value $0.01 per share, and no outstanding shares of Class B common stock, par value $0.01 per share, as of August 10, 2026. CENTRAL BANCOMPANY, INC. AND SUBSIDIARIES QUARTERLY REPORT ON FORM 10Q TABLE OF CONTENTS Page EXPLANATORY NOTE 3 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS 4 PART I - FINANCIAL INFORMATION Item 1. Financial Statements 29 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 5 Item 3. Quantitative and Qualitative Disclosures About Market Risk 63 Item 4. Controls and Procedures 63 PART II - OTHER INFORMATION Item 1. Legal Proceedings 64 Item 1A. Risk Factors 64 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 64 Item 3. Defaults Upon Senior Securities 64 Item 4. Mine Safety Disclosures 64 Item 5. Other Information 64 Item 6. Exhibits 65 SIGNATURES 66 2 EXPLANATORY NOTE Except as otherwise stated or the context otherwise requires, references in this Quarterly Report on Form 10-Q to: • We , Our , Us , and the Company - Central Bancompany, Inc., and its subsidiaries • the Bank - The Central Trust Bank • Business Segments - Consumer Banking, Commercial Banking and Wealth Management • ACL - Allowance for credit losses • AFS - Available for sale • ALCO - Asset/Liability Management Committee • Articles - refers to our Second Amended and Restated Articles of Incorporation • ASC - Accounting Standards Codification • ASU - Accounting Standards Update • bps - Basis points (one basis point equals 1/100 of 1 percent) • Bylaws - refers to our Amended and Restated Bylaws • CET1 - Common Equity Tier 1 • CODM - Chief Operating Decision Maker • CRE - Commercial real estate • CREPI - Commercial Real Estate Price Index • ESPP - Employee stock purchase program • Exchange Act - The Securities and Exchange Act of 1934, as amended • EVE - Economic value of equity • Federal Reserve - refers to the Board of Governors of the Federal Reserve System • FDIC - The Federal Deposit Insurance Corporation • FHLB - Federal Home Loan Bank • FHLMC or Freddie Mac - Federal Home Loan Mortgage Corporation • FNMA or Fannie Mae - Federal National Mortgage Association • FRB - Federal Reserve Bank • FTE - Fully-taxable equivalent • FTP - Funds transfer pricing • GAAP - Generally Accepted Accounting Principles in the U.S. • GDP - Gross domestic product. • GNMA or Ginnie Mae - Government National Mortgage Association • HELOC - Home equity lines of credit • HPI - House Price Index • HTM - Held to maturity • IORB - Interest on reserve balances • IPO - Initial public offering • IRLC - Interest rate lock commitments • Nasdaq - National Association of Securities Dealers Automated Quotations, or Nasdaq Stock Market LLC • NM - Not meaningful • PCA - Prompt corrective action framework • RMBS - Residential mortgage-backed securities • ROAA - Annualized return on average assets • SEC - U.S. Securities and Exchange Commission • SERP - Supplemental Executive Retirement Plan • U.S. - United States • VISA - the Visa, U.S.A. Inc. card association or its affiliates, collectively 3 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. You should not place undue reliance on forward-looking statements because they are subject to numerous uncertainties and factors relating to our operations and business, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other variations or comparable terminology and expressions. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause our actual results to differ materially from those indicated in these forward-looking statements, including the following: • general economic conditions, including higher inflation and its impacts, either nationally or in some or all of the areas in which we and our customers conduct our respective businesses; • conditions in the securities markets and real estate markets or the banking industry; • changes in real estate values, which could impact the quality of the assets securing the loans in our portfolio; • changes in interest rates, which may affect our net income, prepayment penalty income, and other future cash flows, or the market value of our assets, including our investment securities; • changes in the quality or composition of our loan or securities portfolios; • changes in our capital management policies, including those regarding business combinations, dividends, and share repurchases, among others; • heightened regulatory focus on commercial real estate and on commercial real estate loan concentrations; • changes in competitive pressures among financial institutions or from non-financial institutions; • changes in deposit flows and wholesale borrowing facilities; • our ability to maintain sufficient liquidity and funding to fulfill cash obligations and commitments when they become due in the short-term and long-term; • changes in the demand for deposit, loan, and investment products and other financial services in the markets we serve; • our timely development of new lines of business and competitive products or services in a changing environment, and the acceptance of such products or services by our customers; • our ability to obtain timely stockholder and regulatory approvals of any capital raise transactions, corporate restructurings or other significant transactions we may propose; • our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we may acquire into our potential exposure to unknown or contingent liabilities of companies we have acquired, may acquire, or target for acquisition; • the ability to invest effectively in new information technology systems and platforms; • changes in future allowance for credit losses requirements under relevant accounting and regulatory requirements; • the ability to pay future dividends, including as a result of the failure to receive any required regulatory approval to pay a dividend, or for any other reasons; • the ability to hire and retain key personnel and qualified members of our Board of Directors; • the ability to execute on our strategic plan, including the sufficiency of our internal resources, procedures and systems; • the ability to achieve our strategic financial and other strategic goals; • the ability to attract new customers and retain existing ones in the manner anticipated; 4 • changes in our customer base or in the financial or operating performances of our customers' businesses; • any interruption in customer service due to circumstances beyond our control; • cybersecurity incidents, including any interruption or breach of security resulting in failures or disruptions in customer account management, general ledger, deposit, loan, or other systems managed either by us or third parties; • operational issues stemming from, and/or capital spending necessitated by, the potential need to adapt to industry changes in information technology systems, on which we are highly dependent; • the ability to keep pace with, and implement on a timely basis, technological changes; • the success of our fintech activities, investments and strategic partnerships; • changes in legislation, regulation, policies, guidance, or administrative practices, whether by judicial, governmental, or legislative action, and other changes pertaining to banking, securities, taxation, financial accounting and reporting, environmental protection, insurance, and the ability to comply with such changes in a timely manner; • changes in the monetary and fiscal policies of the U.S. Government, including policies of the U.S. Department of the Treasury and the Board of Governors of the Federal Reserve System; • changes in accounting principles, policies, practices, and guidelines; • changes in regulatory expectations relating to predictive models we use in connection with stress testing and other forecasting or in the assumptions on which such modeling and forecasting are predicated; • changes to federal, state, and local income tax laws; • changes in our credit ratings, or in our ability to access the capital markets; • increases in our FDIC insurance premium or future assessments; • the potential impact to the Company from climate change, including higher regulatory compliance, increased expenses, operational changes, and reputational risks; • the effects of geopolitical instability and unforeseen or catastrophic events including natural disasters, war, conflicts, terrorist activities, civil unrest, pandemics, epidemics, and other health emergencies, and the potential impact, directly or indirectly, on our business; • other economic, competitive, governmental, regulatory, technological, and geopolitical factors affecting our operations, pricing, and services; • the ability to limit the outflow of deposits, and to successfully retain and manage any loans; • our ability to effectively manage liquidity, including our success in deploying any liquidity arising from a transaction into assets bearing sufficiently high yields without incurring unacceptable credit or interest rate risk or to utilize available collateral to obtain funding; • the ability to obtain cost savings and control incremental non-interest expense; • the ability to retain and attract appropriate personnel; • the ability to generate acceptable levels of net interest income and non-interest income, including fee income, from acquired operations; and • other risks and uncertainties inherent to our business, including those discussed under “Part 1, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations of this Quarterly Report on Form 10-Q, "Item 1A. Risk Factors" and "Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2025, or any of the Company’s current reports. Readers should not place undue reliance on these forward-looking statements, which reflect our expectations only as of the date of this report. We do not assume any obligation to revise or update these forward-looking statements except as may be required by law. PART I. FINANCIAL INFORMATION Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations You should read the following discussion of our financial condition and results of operations in conjunction with our consolidated financial statements and accompanying notes presented elsewhere in this Quarterly Report on Form 10-Q 5 and our audited consolidated financial statements and the related notes and the discussion included in Part 2, Item 8 on Form 10-K for the year ended December 31, 2025. We make statements in this section that are forward-looking statements within the meaning of the federal securities laws. All of such forward-looking statements are expressly qualified by reference to the cautionary statements provided under the caption "Cautionary Note Regarding Forward-Looking Statements" included in this Quarterly Report on Form 10-Q. Furthermore, a number of known and unknown factors may cause our actual results, performance or achievements to differ materially from those expressed or implied by the following discussion. Therefore, you are encouraged to read in its entirety the information provided under the caption "Part I, Item IA — Risk Factors" included in Form 10-K for the year ended December 31, 2025 for a discussion of risk factors that may negatively impact our expected results, performance, or achievements discussed below. Overview We are a bank holding company headquartered in Jefferson City, Missouri. Through our full-service community banking subsidiary, The Central Trust Bank, we provide a comprehensive suite of consumer, commercial and wealth management products and services to our communities primarily in Missouri, Kansas, Oklahoma and Colorado. As of June 30, 2026, we operate 159 full-service branch locations. We are a community bank organized around our 11 Primary Markets, serving 79 communities. Our business is predominantly located in Missouri, a state known for its business-friendly environment, diversified and stable markets, favorable tax regime and convenient location in the central U.S., making it a hub for industries such as transportation, logistics and trade. We have a highly diversified loan and lease portfolio that has demonstrated steady growth through multiple economic cycles. In addition, we provide a full range of deposit products to individuals, businesses, governments and community organizations, serving as a primary funding source for the Bank. We operate our business through three operating segments: Consumer Banking, Commercial Banking and Wealth Management. Consumer Banking serves the holistic financial service needs of individuals, providing a full set of deposit products, state-of-the-art digital banking solutions, a range of consumer lending solutions, including home equity lines of credit, and a credit card portfolio. Commercial Banking provides full-service relationship banking solutions to businesses, agencies and community organizations. Wealth Management provides a full range of “fee-only” wealth management solutions, including investment management, fiduciary services, financial, estate, and tax planning services to individuals, businesses, and foundations. Results of Operations The second quarter and first half of 2026 were characterized by moderate economic growth, with GDP expanding at a 2.6% forecast rate and unemployment remaining stable near 4.3%, supported by continued strength across the Company's Midwest markets. The Federal Reserve held the prime rate at 6.75% at quarter-end, with expectations of gradual easing toward 6.25% over the near-term horizon, while rising intermediate-term market interest rates during the period created both valuation pressure on fixed-rate securities and attractive reinvestment opportunities. Elevated energy 6 prices and geopolitical uncertainty contributed to a cautious business environment, though disruptions remained contained and did not materially affect credit performance across the Company's loan portfolio. The following table presents selected financials from our income statement and performance ratios. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (dollars in thousands) Income Statement Data: Net interest income $ 212,784 $ 195,057 $ 421,401 $ 384,330 Net interest income (FTE) (non-GAAP) 1,2 214,364 196,599 424,784 387,454 Provision for (recovery of) credit losses 3,535 (7) 6,681 2,913 Noninterest income 69,555 50,065 134,643 108,854 Adjusted noninterest income (non-GAAP) 1 68,939 63,677 134,027 122,357 Noninterest expense 131,354 126,770 257,971 249,031 Income tax expense 33,677 26,994 66,532 55,077 Net income 113,773 91,365 224,860 186,163 Adjusted net income (non-GAAP) 1 113,304 97,928 224,391 192,643 Earnings per Common Share Earnings per share - diluted $ 0.47 $ 0.41 $ 0.94 $ 0.84 Adjusted earnings per share - diluted (non-GAAP) 1 $ 0.47 $ 0.44 $ 0.93 $ 0.87 Performance Ratios: Net interest margin 4.40 % 4.26 % 4.36 % 4.23 % Net interest margin (FTE) (non-GAAP) 1, 2 4.43 % 4.30 % 4.39 % 4.26 % Return on average total assets 2.24 % 1.90 % 2.22 % 1.95 % Return on average common equity 11.9 % 11.5 % 11.8 % 11.8 % Return on average tangible common equity (non-GAAP) 1 13.1 % 13.0 % 13.1 % 13.3 % Fee income ratio 24.6 % 20.4 % 24.2 % 22.1 % Efficiency ratio 46.5 % 51.7 % 46.4 % 50.5 % Efficiency ratio (FTE) (non-GAAP) 1, 2 46.1 % 48.4 % 45.9 % 48.5 % Effective tax rate 22.8 % 22.8 % 22.8 % 22.8 % Key highlights for the three months ended June 30, 2026: • Net income of $113.8 million, or $0.47 per fully diluted share, compared to $91.4 million and $0.41 for the three months ended June 30, 2025. • Adjusted net income (non-GAAP) 1 of $113.3 million, or $0.47 per fully diluted share, compared to $97.9 million and $0.44 for the three months ended June 30, 2025. • ROAA of 2.24% compared to ROAA of 1.90% in the prior year quarter. • Efficiency ratio of 46.5%; Adjusted efficiency ratio 1, 2 of 46.1%, compared to 51.7% and 48.4% respectively, in the prior year quarter. Key highlights for the six months ended June 30, 2026: • Net income of $224.9 million, or $0.94 per fully diluted share, compared to $186.2 million and $0.84 for the six months ended June 30, 2025. • Adjusted net income (non-GAAP) 1 of $224.4 million, or $0.93 per fully diluted share, compared to $192.6 million and $0.87 for the six months ended June 30, 2025 • ROAA of 2.22% compared to ROAA of 1.95% in the prior year • Efficiency ratio of 46.4%; Adjusted efficiency ratio 1, 2 of 45.9%, compared to 50.5% and 48.5% respectively, in the prior year 1 These are non-GAAP financial measures we believe are helpful in interpreting our financial results. For more information on non-GAAP measures and for a reconciliation to the most directly comparable GAAP financial measure, see “—Non-GAAP Financial Measures Reconciliations.” 2 Fully-tax equivalent basis. 7 Net Interest Income and Net Interest Margin The following table summarizes the distribution of average balances, average yields and costs (on an annualized basis for interim periods), and changes in net interest income on an FTE basis. Average balances are daily average balances and include nonaccrual loans. The table below includes the effect of deferred fees and expenses, discounts and premiums, as well as purchase accounting adjustments that are amortized or accreted to interest income or expense. Three Months Ended June 30, 2026 2025 Average Balance Interest (FTE) 1 Yield / Cost Average Balance Interest (FTE) 1 Yield / Cost (dollars in thousands) Interest earning assets: Interest-bearing cash and bank deposits 1 $ 763,811 $ 7,353 3.86 % $ 983,573 $ 11,409 4.65 % Investment securities 1 7,033,039 74,013 4.22 % 5,879,919 57,358 3.91 % Gross loans 1, 2 11,607,760 180,638 6.24 % 11,487,215 178,455 6.23 % Total interest-earning assets 19,404,610 262,004 5.42 % 18,350,707 247,222 5.40 % Allowance for credit losses (149,888) (152,818) Noninterest-earning assets 1,079,217 1,073,507 Total assets $ 20,333,939 $ 19,271,396 Interest bearing liabilities: Savings & interest-bearing deposits $ 8,278,684 $ 31,264 1.51 % $ 7,985,903 $ 31,039 1.56 % Time deposits 1,573,476 10,912 2.78 % 1,692,958 13,232 3.13 % Federal funds purchased and customer repurchase agreements 1,006,357 5,464 2.18 % 1,009,868 6,352 2.52 % Total interest-bearing liabilities 10,858,517 47,640 1.76 % 10,688,729 50,623 1.90 % Noninterest-bearing deposits 5,502,016 5,225,769 Other noninterest-bearing liabilities 125,999 162,981 Stockholders' equity 3,847,407 3,193,917 Total liabilities and stockholders' equity $ 20,333,939 $ 19,271,396 Net FTE interest income (non-GAAP) 214,364 4.43 % 196,599 4.30 % Less: Tax equivalent adjustment 1,580 1,542 Net interest income and net interest margin $ 212,784 4.40 % $ 195,057 4.26 % Cost of deposits, including noninterest bearing demand deposits 1.10 % 1.19 % Cost of funds, including noninterest bearing demand deposits 1.17 % 1.28 % 8 Six Months Ended June 30, 2026 2025 Average Balance Interest (FTE) (1) Yield / Cost Average Balance Interest (FTE) (1) Yield / Cost (dollars in thousands) Interest earning assets: Interest-bearing cash and bank deposits 1 $ 1,145,333 $ 21,918 3.86 % $ 969,578 $ 22,369 4.65 % Investment securities 1 6,800,003 142,476 4.23 % 5,822,908 111,204 3.85 % Gross loans 1, 2 11,550,100 357,467 6.24 % 11,534,836 355,439 6.21 % Total interest-earning assets 19,495,436 521,861 5.40 % 18,327,322 489,013 5.38 % Allowance for credit losses (149,718) (153,286) Noninterest-earning assets 1,077,503 1,049,497 Total assets $ 20,423,221 $ 19,223,533 Interest bearing liabilities: Savings & interest-bearing deposits 8,329,854 63,136 1.53 % 7,995,162 61,525 1.55 % Time deposits 1,602,190 22,465 2.83 % 1,689,493 26,476 3.16 % Federal funds purchased and customer repurchase agreements 1,039,330 11,476 2.23 % 1,047,224 13,558 2.61 % FHLB advances and other borrowings - - — % - - — % Total interest-bearing liabilities $ 10,971,374 $ 97,077 1.78 % $ 10,731,879 $ 101,559 1.91 % Noninterest-bearing deposits 5,507,344 5,150,439 Other noninterest-bearing liabilities 105,958 153,391 Stockholders' equity 3,838,545 3,187,824 Total liabilities and stockholders' equity $ 20,423,221 $ 19,223,533 Net FTE interest income (non-GAAP) 424,784 4.39 % 387,454 4.26 % Less: Tax equivalent adjustment 3,383 3,124 Net interest income and net interest margin $ 421,401 4.36 % $ 384,330 4.23 % Cost of deposits, including noninterest bearing demand deposits 1.12 % 1.20 % Cost of funds, including noninterest bearing demand deposits 1.19 % 1.29 % __________________ 1 Interest income and yields are reported on an FTE basis, using a blended federal and state effective marginal tax rate of 23.84% for all periods. The tax-equivalent interest income and yields give effect to the tax-exempt interest income net of the disallowance of interest expense, for federal income tax purposes related to certain tax-free assets. 2 Loan balances include mortgage loans held for sale and nonaccrual loans of $55.1 million and $46.4 million as of June 30, 2026 and 2025, respectively. Net interest income increased for both the three and six months ended June 30, 2026, compared to the corresponding periods in 2025 , primarily due to growth in average earning assets and expansion of the net interest margin. Average earning assets increased 5.7% and 6.4% for the three and six month periods, respectively, reflecting growth in deposits, retained earnings, and capital generated through our initial public offering. For the three months ended June 30, 2026, net interest income increased $17.7 million, or 9.1%, to $212.8 million. On an FTE basis, net interest income (non-GAAP) increased 9.0% to $214.4 million. Net interest margin increased 13 bps to 4.40% 4.40% , while net interest margin (FTE) (non-GAAP) increased 13 bps to 4.43% . For the six months ended June 30, 2026, net interest income increased $37.1 million, or 9.6%, to $421.4 million. On an FTE basis, net interest income (non-GAAP) increased 9.6% to $424.8 million. Net interest margin increased 13 bps to 4.36% , while net interest margin (FTE) (non-GAAP) increased 13 bps to 4.39% . Total interest income increased for both periods, driven by earning asset growth, continued repricing of loans and securities, and deployment of deposit and IPO-related funding into securities. Total interest income increased 6.0% to $260.4 million for the quarter and 6.7% to $518.5 million for the six month period. On an FTE basis (non-GAAP), total interest income increased 6.0% to $262.0 million and 6.7% to $521.9 million, respectively. 9 Interest expense decreased due primarily to lower rates paid on time deposits, federal funds purchased, and customer repurchase agreements, partially offset by growth in savings and interest-bearing deposits. Interest expense declined $3.0 million, or 5.9%, for the quarter and $4.5 million, or 4.4%, for the six month period compared to the corresponding periods in 2025. The table below identifies changes related to volumes (average balances) and rates on our net interest income during the period shown, with respect to (i) changes in volume (change in volume times old rate), (ii) changes in rates (change in rate times old volume) and (iii) changes in rate / volume (change in rate times the change in volume, including difference in the number of days). Any change in interest not due solely to volume or rate has been allocated in proportion to the respective absolute dollar amounts of the change in volume or rate. Three Months Ended June 30, Six Months Ended June 30, 2026 vs 2025 2026 vs 2025 Volume Rate Total Volume Rate Total (dollars in thousands) Increase (decrease) in interest income: Cash and cash equivalents $ (2,303) $ (1,753) $ (4,056) $ 3,699 $ (4,150) $ (451) Investment securities 11,881 4,774 16,655 19,808 11,464 31,272 Loans 1,875 308 2,183 471 1,557 2,028 Total increase (decrease) in interest income 11,453 3,329 14,782 23,978 8,871 32,849 Increase (decrease) in interest expense: Savings & interest-bearing deposits 1,120 (895) 225 2,547 (936) 1,611 Time deposits (893) (1,427) (2,320) (1,321) (2,690) (4,011) Federal funds purchased and customer repurchase agreements (22) (866) (888) (101) (1,981) (2,082) FHLB advances and other borrowings - - - - - - Total increase (decrease) in interest expense 205 (3,188) (2,983) 1,125 (5,607) (4,482) Increase (decrease) in net interest income (FTE) $ 11,248 $ 6,517 $ 17,765 $ 22,853 $ 14,478 $ 37,331 Provision for Credit Losses The provision for credit losses, including provision for off-balance sheet credit exposures, was $6.7 million for the six months ended June 30, 2026, compared to $2.9 million for the six months ended June 30, 2025. For the three months ended June 30, 2026, the provision was $3.5 million compared to a net recovery in the prior-year quarter. The lower provision expense in the prior-year quarter was primarily driven by a $5.0 million reserve release associated with the reclassification of the consumer lease portfolio as held for sale in June 2025, which reduced the allowance for credit losses in the Consumer Banking segment. Excluding this, the current-quarter provision decrease compared to the prior-year quarter primarily reflects changes in portfolio composition, including the continued strategic de-emphasis of the indirect consumer lending portfolio. 10 Noninterest Income The following table presents noninterest income for the three and six months ended June 30, 2026 and 2025. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 $ Change % Change 2026 2025 $ Change % Change (dollars in thousands) Noninterest income: Wealth management services 23,244 19,319 3,925 20.3 % 45,486 38,496 6,990 18.2 % Payment services revenue 18,253 17,420 833 4.8 % 34,623 33,396 1,227 3.7 % Service charges and commissions 14,785 14,179 606 4.3 % 29,199 28,123 1,076 3.8 % Mortgage banking revenues, net 10,615 11,139 (524) (4.7) % 20,151 19,866 285 1.4 % Investment securities gains, net 616 - 616 — % 616 109 507 NM Other income 2,042 (11,992) 14,034 NM 4,568 (11,136) 15,704 NM Adjusted noninterest income (non-GAAP) 1 68,939 63,677 5,262 8.3 % 0 134,027 122,357 11,670 9.5 % Less: Loss on sale of consumer lease portfolio - (13,612) 13,612 NM - (13,612) 13,612 NM Less: Investment securities gains (losses), net 616 - 616 — % 616 109 507 NM Total noninterest income $ 69,555 50,065 19,490 38.9 % $ 134,643 108,854 25,789 23.7 % Noninterest income was $69.6 million for the three months ended June 30, 2026, an increase of $19.5 million, or 38.9%, compared to $50.1 million for the same period in 2025 . The increase was primarily driven by continued growth in wealth management services, as discussed below. Current quarter results also included $8.4 million of gains recognized on holdings of Visa B shares, partially offset by a $7.8 million loss related to the selective repositioning of certain investment securities to capitalize on attractive market opportunities. In addition, results for the second quarter of 2025 were reduced by a $13.6 million loss associated with the sale of the consumer lease portfolio, which was recorded in other income. For the six months ended June 30, 2026, noninterest income was $134.6 million, an increase of $25.8 million, or 23.7%, compared to $108.9 million for the same period in 2025. The increase primarily reflected growth in wealth management services, driven by continued strong growth in assets under advice. Results for the first six months of 2026 also benefited from the Visa B share gains, while the prior-year period was impacted by the $13.6 million consumer lease portfolio loss. These factors were partially offset by the $7.8 million loss recognized on the repositioning of investment securities during the second quarter of 2026. Wealth management services. Wealth management services consists of brokerage services and fiduciary service fees earned from trust asset management and investment advisory services. For the three months ended June 30, 2026, wealth management services increased $3.9 million, or 20.3%, to $23.2 million compared to the same period in 2025. For the six months ended June 30, 2026, wealth management services increased $7.0 million, or 18.2%, to $45.5 million compared to the same period in 2025. The increases were primarily driven by higher average assets under advice resulting from favorable market performance during both the quarterly and year to date periods. The year to date increase also reflected the benefit of new assets under advice and favorable net client fee growth. Assets under advice grew $3.0 billion from June 2025, or 21.3%, to $17.3 billion at June 30, 2026. Other income. Other income includes bank owned life insurance income, check commission, gain on sale of assets, and other miscellaneous income items. Other income was $2.0 million for the three months ended June 30, 2026, compared to the loss of $12.0 million in the prior year quarter. For the six months ended June 30, 2026, other income was $4.6 million, compared to a loss of $11.1 million for the same period in 2025. The year-over-year increases were primarily attributable to the $13.6 million loss recognized in June 2025 on the sale of the consumer lease portfolio. 1 This is a non-GAAP financial measures we believe are helpful in interpreting our financial results. For more information on non-GAAP measures and for a reconciliation to the most directly comparable GAAP financial measure, see “—Non-GAAP Financial Measures Reconciliations.” 11 Noninterest Expense The following table presents the major components of our noninterest expense for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 $ Change % Change 2026 2025 $ Change % Change (dollars in thousands) Noninterest expense: Salaries and employee benefits $ 80,036 $ 74,736 $ 5,300 7.1 % $ 156,075 $ 145,983 $ 10,092 6.9 % Net occupancy and equipment 12,392 11,664 728 6.2 % 24,558 23,510 1,048 4.5 % Computer software and maintenance 5,490 5,227 263 5.0 % 11,467 11,283 184 1.6 % Marketing and business development 5,273 5,417 (144) (2.7 %) 9,830 10,376 (546) (5.3 %) Legal and professional fees 5,569 5,477 92 1.7 % 11,634 10,356 1,278 12.3 % Bankcard processing, rewards and related costs 8,263 8,090 173 2.1 % 16,016 15,113 903 6.0 % Other expenses 14,331 16,159 (1,828) (11.3 %) 28,391 32,410 (4,019) (12.4 %) Total noninterest expense $ 131,354 $ 126,770 $ 4,584 3.6 % $ 257,971 $ 249,031 $ 8,940 3.6 % Full-time equivalent employees 2,971 2,929 Total noninterest expense was $131.4 million for the three months ended June 30, 2026, an increase of $4.6 million, or 3.6%, compared to $126.8 million for the prior year quarter. The increase was primarily due to increases in salaries and employee benefits and net occupancy and equipment, partially offset by a reduction in other expenses. For the six months ended June 30, 2026, total noninterest expense was $258.0 million, an increase of $8.9 million, or 3.6% compared to the same period in 2025. In addition to the categories noted above, the six month period increase was also driven by an increase in legal and professional fees, and bankcard processing, rewards, and related costs. Salaries and Employee Benefits. Salaries and employee benefits increased $5.3 million, or 7.1%, to $80.0 million when comparing the second quarter of 2026 to the prior year quarter. These expenses were $156.1 million for the first six months of 2026, an increase of $10.1 million, or 6.9%, compared to $146.0 million for the same period in 2025 . For both the three and six month ended reporting periods, this increase was primarily the result of merit and other salary increases and higher compensation costs associated with elevated performance levels, while staffing levels remained generally consistent with the prior periods. Net Occupancy and Equipment . Net occupancy and equipment increased $0.7 million , or 6.2% to $12.4 million for the first three months ended June 30, 2026 , compared to the same period in 2025 . Net occupancy and equipment was $24.6 million for the first six months of 2026 , an increase of $1.0 million , or 4.5% , compared to $23.5 million for the same period in 2025. This increase was primarily the result of continued investment in our branch network, with the opening of four new full-service branches since June 2025 . Legal and Professional Fees. Legal and professional fees were $11.6 million for the first six months of 2026, an increase of $1.3 million , or 12.3%, compared to $10.4 million for the same period in 2025, primarily reflecting higher costs related to technology improvement initiatives and additional costs associated with being a public company, such as auditing and insurance costs. Bankcard Processing, Rewards and Related Costs. Bankcard processing, rewards and related costs increased $0.9 million , or 6.0% for the first six months of 2026, compared to the same period in 2025, primarily reflecting $0.4 million in credit card rebates received in the first quarter of 2025 that did not recur in 2026, as well as an increase in card transaction volume. Other Expenses. For the three months ended June 30, 2026, other expenses decreased $1.8 million to $14.3 million, compared to the same period in 2025. Other expenses decreased $4.0 million, to $28.4 million for the first six months of 2026, compared to the same perio d in 2025. The decrease was primarily due to $1.9 million h igher residual loss expense in the second quarter of 2025 , and a $4.9 million higher residual loss for the first six months of 2025 , on the consumer lease portfolio as a result of declining fair market values. The reduction in expenses coincided with the sale of this portfolio. T his was partially offset by increases in various other expense categories. Income Taxes The provision for income taxes varies due to the amount of taxable income, the investments in tax-advantaged securities and loans, tax credits and the rates charged by federal and state authorities where we do business. Income tax expense was $33.7 million for the three months ended June 30, 2026, representing an effective tax rate of 22.8%, compared 12 to $27.0 million and an effective tax rate of 22.8%, for the same period in 2025 . For the first six months of 2026, income tax expense was $66.5 million, compared to $55.1 million for the same period in 2025. Both periods had an effective tax rate of 22.8%. The increase in income tax expense was driven by higher pre-tax income year over year. Discussion and Analysis of Business Segments The Company has aligned its operations into the following three reportable segments: Consumer Banking, Commercial Banking and Wealth Management (collectively, the “Business Segments”). The Chief Executive Officer regularly evaluates Business Segment financial results produced by the Company’s internal reporting system in deciding how to allocate resources and assess performance for individual Business Segments. The management accounting system assigns balance sheet and income statement items to each Business Segment using methodologies that are refined on an ongoing basis. See "Note 12, Business Segment Reporting," to our consolidated financial statements in this Quarterly Report on Form 10-Q. Segment Income Statement Consumer Commercial Wealth Management Segment Totals Corp / Other Total Three Months Ended June 30, 2026 (dollars in thousands) Net interest income $ 84,330 $ 112,984 $ (34) $ 197,280 $ 15,504 $ 212,784 Provision for credit losses 2,826 717 - 3,543 (8) 3,535 Net interest income after provision for credit losses 81,504 112,267 (34) 193,737 15,512 209,249 Noninterest income 32,900 11,536 22,107 66,543 3,012 69,555 Noninterest expense 63,829 41,032 14,089 118,950 12,404 131,354 Income before income taxes 50,575 82,771 7,984 141,330 6,120 147,450 Income taxes 12,106 19,159 1,919 33,184 493 33,677 Net income $ 38,469 $ 63,612 $ 6,065 $ 108,146 $ 5,627 $ 113,773 Assets under advice $ - $ - $ 17,273,398 $ 17,273,398 $ - $ 17,273,398 Three Months Ended June 30, 2025 Net interest income $ 78,867 $ 107,830 $ (23) $ 186,674 $ 8,383 $ 195,057 Provision for credit losses (1,755) 411 (1) (1,345) 1,338 (7) Net interest income after provision for credit losses 80,622 107,419 (22) 188,019 7,045 195,064 Noninterest income 18,534 10,843 18,418 47,795 2,270 50,065 Noninterest expense 61,698 38,757 12,691 113,146 13,624 126,770 Income before income taxes 37,458 79,505 5,705 122,668 (4,309) 118,359 Income taxes 8,972 18,439 1,374 28,785 (1,791) 26,994 Net income $ 28,486 $ 61,066 $ 4,331 $ 93,883 $ (2,518) $ 91,365 Assets under advice $ - $ - $ 14,245,820 $ 14,245,820 $ - $ 14,245,820 Q2 2026 vs Q2 2025 Increase (decrease) in net income - amount $ 9,983 $ 2,546 $ 1,734 $ 14,263 $ 8,145 $ 22,408 Increase (decrease) in net income - percent 35.0 % 4.2 % 40.0 % 15.2 % NM 24.5 % 13 Consumer Banking Operating Results For the three months ended June 30, 2026, Consumer Banking net income increased $10.0 million, or 35.0%, to $38.5 million compared to the same period in 2025. The increase was primarily due the expected sale of the consumer lease portfolio in June 2025, which resulted in a $13.6 million loss. This was partially offset by the $5 million release of the provision that increased Consumer Banking net income during 2025. Commercial Banking Operating Results For the three months ended June 30, 2026, Commercial Banking net income increased $2.5 million, or 4.2%, to $63.6 million compared to the same period in 2025. The increase was primarily due to increased net interest income of 4.8% driven by an increase in the FTP paid on deposits. Wealth Management Operating Results For the three months ended June 30, 2026, Wealth Management net income increased $1.7 million, or 40.0%, to $6.1 million compared to the same period in 2025, as assets under advice increased. The 21.3% rise in total AUA was driven by continued strong net new AUA, which grew $3.0 billion from June 2025, to $17.3 billion at June 30, 2026. Segment Income Statement Consumer Commercial Wealth Management Segment Totals Corp / Other Total Six Months Ended June 30, 2026 (dollars in thousands) Net interest income $ 165,601 $ 226,027 $ (49) $ 391,579 $ 29,822 $ 421,401 Provision for credit losses 5,019 1,649 - 6,668 13 6,681 Net interest income after provision for credit losses 160,582 224,378 (49) 384,911 29,809 414,720 Noninterest income 64,933 22,268 43,441 130,642 4,001 134,643 Noninterest expense 126,823 80,655 27,534 235,012 22,959 257,971 Income before income taxes 98,692 165,991 15,858 280,541 10,851 291,392 Income taxes 23,635 38,433 3,813 65,881 651 66,532 Net income $ 75,057 $ 127,558 $ 12,045 $ 214,660 $ 10,200 $ 224,860 Assets under advice $ - $ - $ 17,273,398 $ 17,273,398 $ - $ 17,273,398 Six Months Ended June 30, 2025 Net interest income $ 154,048 $ 214,120 $ (43) $ 368,125 $ 16,205 $ 384,330 Provision for credit losses 130 1,442 (4) 1,568 1,345 2,913 Net interest income after provision for credit losses 153,918 212,678 (39) 366,557 14,860 381,417 Noninterest income 47,028 21,220 36,837 105,085 3,769 108,854 Noninterest expense 121,604 78,127 25,220 224,951 24,080 249,031 Income before income taxes 79,342 155,771 11,578 246,691 (5,451) 241,240 Income taxes 18,998 36,052 2,780 57,830 (2,753) 55,077 Net income $ 60,344 $ 119,719 $ 8,798 $ 188,861 $ (2,698) $ 186,163 Assets under advice $ - $ - $ 14,245,820 $ 14,245,820 $ - $ 14,245,820 H1 2026 vs H1 2025 Increase (decrease) in net income - amount $ 14,713 $ 7,839 $ 3,247 $ 25,799 $ 12,898 $ 38,697 Increase (decrease) in net income - percent 24.4 % 6.5 % 36.9 % 13.7 % NM 20.8 % 14 Consumer Banking Operating Results For the six months ended June 30, 2026, Consumer Banking net income increased $14.7 million, or 24.4%, to $75.1 million compared to the same period in 2025. The increase was primarily driven by growth in net interest income of $11.6 million, or 7.5%, and a $17.9 million improvement in noninterest income largely reflecting the absence of the $13.6 million consumer lease portfolio loss recognized in the second quarter of 2025. These increases were partially offset by a $5 million increase in provision expense, resulting from the expected sale of the consumer leasing portfolio in June 2025. Commercial Banking Operating Results For the six months ended June 30, 2026, Commercial Banking net income increased $7.8 million, or 6.5%, to $127.6 million compared to the same period in 2025. The increase was primarily due to increased net interest income of 5.6% driven by an increase in the FTP paid on deposits. Wealth Management Operating Results For the six months ended June 30, 2026, Wealth Management net income increased $3.2 million, or 36.9%, to $12.0 million compared to the same period in 2025. The increase was driven by noninterest income growth of $6.6 million, or 17.9%, reflecting continued strong growth in assets under advice, which increased $3.0 billion, or 21.3%, to $17.3 billion at June 30, 2026, driven by strong net new asset inflows partially offset by market movement. Financial Condition and Risk Management The following discussion provides an overview of the Company’s financial condition, asset quality, liquidity position, and regulatory capital as of June 30, 2026, with comparisons to the prior year quarter where relevant. This analysis highlights the key drivers of balance sheet changes, evaluates trends in credit performance, and outlines the strength of the Company’s liquidity and capital resources. Together, these measures reflect management’s ongoing focus on prudent risk management, disciplined balance sheet strategy, and maintaining a strong financial foundation to support continued operations and future growth. As of June 30, 2026: • Total assets decreased 2.2% to $20.3 billion as of June 30, 2026 from $20.8 billion as of December 31, 2025, reflecting a net decline in deposits. This is driven by the expected outflow of seasonal deposits, primarily public funds. • Total loans held for investment as of June 30, 2026 totaled $11.7 billion, an increase of $239 million, or 2.1%, compared to $11.4 billion as of December 31, 2025. The increase was primarily due to increases in commercial real estate and residential mortgage loans, partially offset by a decline in other consumer loans. • Investment securities grew $650 million, an increase of 10.1% from December 31, 2025. Growth was driven by the strategic repositioning of excess liquidity into higher-yielding investment securities as IORB rates declined over the previous two years, and reduced returns on excess Federal Reserve balances. During the period, the Company repositioned approximately $210 million of securities yielding 2.0% into approximately $202 million of securities yielding 4.5% and extended effective duration of those securities from 1.7 years to 3.3 years. • Total deposits decreased $484.8 million, or 3.1%, to $15.4 billion as of June 30, 2026 from $15.9 billion as of December 31, 2025. The decrease was primarily driven by the expected outflow of seasonal deposits, primarily public funds. Noninterest-bearing demand deposits remained relatively stable, comprising 36.2% of total deposits at June 30, 2026, compared to 35.4% at December 31, 2025, reflecting the continued strength of our core deposit franchise. • Total stockholders' equity grew by $82 million, an increase of 2.2% from December 31, 2025. The growth is primarily due to earnings retention less stock repurchases of $39.2 million , including shares acquired to satisfy tax withholding obligations associated with equity compensation plans . The Company manages risk through an enterprise risk management framework that establishes risk appetite, governance structures, and monitoring processes across key risk categories, including credit, market, liquidity, operational, and technology risks. Risk is overseen by the Board of Directors and its committees, with management responsible for identifying, measuring, monitoring, and controlling exposures through established limits, key risk indicators, and escalation protocols. 15 Credit Risk Management Credit risk is the risk that borrowers or counterparties will be unable or unwilling to repay their obligations in accordance with the underlying contractual terms. We seek to mitigate credit risk in our loan and lease portfolio by following clearly defined underwriting criteria and account management standards set by management. See "Note 3, Loans and Allowance for Credit Losses," to our consolidated financial statements in this Quarterly Report on Form 10-Q. Our objective is to maintain a high degree of credit quality, support the customers and communities we serve, and achieve our objectives for profitability and liquidity. Maintaining strong credit quality is essential to the viability of our business model. Through our business activities we recognize and seek to mitigate three primary types of credit risk: default risk, concentration risk and systemic risk. Managing credit risk is a continuous, enterprise-wide initiative that starts with our local market bankers and leaders as our first line of defense. We leverage the strength of our bankers across markets to manage and limit risk taking complemented by our comprehensive credit policy and underwriting standards. To help ensure we balance market-level support while maintaining a diversified portfolio, we impose market-level approval limits and industry, asset and geographic limits. To manage and enforce our portfolio metrics and diversification targets our credit management committee meets periodically to evaluate credit risk migration, new business activities, stress-test results and evaluate credit policy changes and approve or modify market lending authorities. Our internal loan review department, our third line of defense, serves as an independent function to evaluate effective underwriting and application of credit policy in both origination and portfolio management. Loan and Lease Portfolio We offer a broad range of lending products with a focus on commercial real estate, construction and development, commercial and industrial, multi-family and one-to-four-family residential loans in our Primary Markets in Missouri, Kansas, Oklahoma and Colorado. We deliver these products through a local, relationship-based delivery model emphasizing market-level credit authority. The following table presents our loan and lease portfolio by category as of June 30, 2026 and December 31, 2025: June 30, 2026 December 31, 2025 Amount % of total Amount % of total Loans held for investment: (dollars in thousands) Construction and development $ 569,593 5 % $ 570,749 5 % Commercial, financial & agricultural 1,799,584 15 % 1,761,287 15 % Non-owner-occupied commercial real estate 3,249,479 28 % 3,150,269 28 % Owner-occupied commercial real estate 1,595,866 14 % 1,580,260 14 % Commercial real estate 4,845,345 42 % 4,730,529 41 % Total commercial loans 7,214,522 62 % 7,062,565 62 % Residential mortgage loans 3,475,428 30 % 3,321,101 29 % Home equity lines of credit 433,330 4 % 410,845 4 % Consumer credit card 98,107 1 % 98,310 1 % Other consumer loans 462,469 4 % 551,395 5 % Total residential and consumer loans 4,469,334 38 % 4,381,651 38 % Total unpaid principal balance 11,683,856 100 % 11,444,216 100 % Add: Unearned income (10,240) - % (9,611) - % Loans held for investment $ 11,673,616 100 % $ 11,434,605 100 % Loans held for sale $ 27,751 $ 54,119 Credit quality across the loan portfolio remains strong, reflecting our commitment to conservative underwriting standards. Portfolio‑level metrics across all loan classes continue to align with these established standards, underscoring the stability and resilience of the credit profile. Total loans held for investment increased $239 million, or 2.1%, to $11.7 billion as of June 30, 2026. The increase was primarily due to an increase in commercial real estate and residential real estate, partially offset by a decline in the consumer loan portfolio. Commercial loans totaled $7.2 billion at June 30, 2026, representing an increase of $152 million, or 2.2%, compared to December 31, 2025. Growth during the first six months of 2026 was primarily driven by non-owner occupied 16 commercial real estate, which increased $99 million, and commercial, financial, and agricultural loans, which grew $38 million, reflecting continued strong business banking activity across our primary markets. Owner-occupied commercial real estate increased $16 million, while construction and development loans were essentially flat, consistent with normal project completion activity. Residential and consumer loans totaled $4.5 billion at June 30, 2026, an increase of $88 million, or 2.0%, compared with December 31, 2025. Growth was driven primarily by increases in residential mortgage loans of $154 million, or 4.6%, reflecting strong demand for adjustable-rate mortgage products and residential construction financing, as well as a $22 million, or 5.5%, increase in home equity lines of credit. These increases were partially offset by an $89 million decline in other consumer loans, primarily attributable to the completion of the consumer lease portfolio sale and the continued strategic, de-emphasis of indirect consumer lending. The change in portfolio composition reflects the Company's strategic focus on expanding residential real estate lending while reducing exposure to selected consumer lending segments. Credit quality within the residential mortgage portfolio remained strong at June 30, 2026, supported by an average loan‑to‑value ratio, calculated based on original property valuation, of 59%, an average debt‑to‑income ratio, calculated at loan origination of 38.9%, and an average FICO score, measured at loan origination, of 728. Asset Quality The following table presents selected financials from our consolidated balance sheet and the asset quality ratios discussed below. As of As of June 30, 2026 December 31, 2025 Asset Quality Ratios: Nonperforming loans / loans held for investment 0.49 % 0.40 % Allowance for credit losses / loans held for investment 1.29 % 1.31 % Loan modifications / loans held for investment 0.52 % 0.53 % Loans are analyzed for risk rating updates as part of the annual credit review process. For larger loans, rating assessments may be more frequent if relevant information is obtained earlier through debt covenants or overall relationship management. Smaller loans are monitored as identified by the loan officer based on the risk profile of the individual borrower or if the loan becomes past due related to credit issues. Loans rated “Watch,” “Substandard” or “Nonaccrual” under our internal risk grading system (as described below) may be subject to more frequent review and monitoring processes. In addition to the regular monitoring performed by the market lending personnel and credit committees, loans are subject to review by our internal loan review department, which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan. Net charge-offs As illustrated in the chart below, net charge-offs remained low relative to average loans and improved from the levels reported in the comparable 2025 periods. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net charge-offs / average loans (annualized) 0.10 % 0.15 % 0.10 % 0.14 % Net charge-offs totaled $5.9 million for the six months ended June 30, 2026, compared to $7.8 million for the same period in 2025. For the three months ended June 30, 2026, net charge-offs were $3.0 million, compared to $4.3 million in the prior year quarter. Annualized net charge-offs represented 0.10% of average total loans for the quarter, compared to 0.15% in the prior year period. Despite the increase in provision expense during the period, net charge-off levels remained low, reflecting the continued strength of the Company's credit quality. Nonperforming Loans and Assets Our non-performing assets consist of nonperforming loans and foreclosed real estate, if any. Our nonperforming loans consist of loans past due 90 days or more and still accruing and nonaccrual loans. We consider loans past due on the day following the contractual repayment date if the contractual repayment was not received by us as of the end of the business day. Loans for which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is discontinued when, in management’s judgment, the interest is uncollectible in the normal course of business. Loans are placed on nonaccrual status when (i) deterioration in the financial condition of the borrower exists such 17 that collection of full principal and interest is not expected, or (ii) principal or interest is 90 days or more past due, unless the loan is both well secured and in the process of collection. When a loan is placed on nonaccrual status, any interest previously accrued but not collected is reversed against current income, and the loan is charged off to the extent uncollectible. Principal and interest payments received on nonaccrual loans are generally applied to principal. Interest is included in income only after all previous loan charge-offs have been recovered and is recorded only as received. The loan is returned to accrual status only when the borrower has brought all past-due principal and interest payments current and, in the opinion of management, has demonstrated the ability to make future payments of principal and interest as scheduled. The following table presents our nonperforming loans and assets for the dates indicated: June 30, 2026 December 31, 2025 (dollars in thousands) Nonaccrual loans $ 55,126 $ 44,663 Loans past due 90 days or more and still accruing 2,026 1,343 Total nonperforming loans 57,152 46,006 Foreclosed assets held for sale 3,090 5,954 Total nonperforming assets $ 60,242 $ 51,960 Allowance for credit losses to period end loans 1.29 % 1.31 % Allowance for credit losses to period end nonperforming loans 263.19 % 325.34 % Nonperforming loans to period end loans 0.49 % 0.40 % Nonperforming assets to period end assets 0.30 % 0.25 % Nonaccrual loans to total loans outstanding at period end 0.47 % 0.39 % Allowance for credit losses to nonaccrual loans at period end 272.86 % 335.12 % Nonaccrual loans totaled $55.1 million as of June 30, 2026, an increase of $10.5 million, or 23.4%, from $44.7 million at December 31, 2025. The increase was concentrated in the commercial portfolio and reflected the migration of a limited number of borrower relationships to nonaccrual status during the first half of 2026. Higher nonaccrual balances in non-owner-occupied commercial real estate and commercial, financial, and agricultural loans accounted for most of the increase, rising $7.1 million and $4.6 million, respectively. The deterioration was isolated to a few borrower-specific commercial credits that are being actively managed toward resolution and did not reflect a broader weakening in portfolio credit quality. Residential mortgage nonaccruals declined modestly during the period, reflecting continued stability in the consumer portfolio. Despite the increase in nonaccrual loans, overall asset quality remained favorable, with nonperforming loans representing 0.49% of loans held for investment at June 30, 2026. Allowance for Credit Losses The allowance for credit losses represents management's estimate of expected credit losses within the loan and lease portfolio. Determining the allowance requires elements of judgment and involves consideration of historical loss experience, current economic conditions, and reasonable and supportable forecasts. For additional information regarding the allowance methodology, see "Critical Accounting Policies and Estimates—Allowance for Credit Losses on Loans" in this Quarterly Report on Form 10-Q. The allowance is measured primarily on a collective basis using an average historical loss methodology. Loans are pooled based on shared risk characteristics, including borrower and collateral type, while loans that do not share similar risk characteristics, primarily certain larger nonaccrual loans, are evaluated individually. At June 30, 2026, the allowance for credit losses was $150.4 million, or 1.29% of total loans and leases, compared to $149.4 million, or 1.31%, at December 31, 2025. The ratio of the allowance for credit losses to nonperforming loans decreased to 263% at June 30, 2026, from 325% at December 31, 2025, primarily due to higher nonperforming loan balances during the first six months of 2026. While nonperforming loans increased during the period, management believes the related credit stress remains limited to a small number of commercial relationships and does not reflect broad-based deterioration in portfolio quality. Based on current portfolio composition, credit performance, economic conditions, and the continued low level of net charge-offs, management believes the allowance for credit losses remains adequate. The Company continues to closely monitor watch list and substandard-rated credits, particularly within the non-owner-occupied commercial real estate and commercial, financial, and agricultural loan portfolios, and will adjust the allowance as warranted by changes in borrower performance or economic conditions. 18 The following tables present the allocation of the allowance for credit losses by loan category: As of June 30, 2026 As of December 31, 2025 Allocated Reserves % of Loan Category to Loans % of ACL to Loan Category Allocated Reserves % of Loan Category to Loans % of ACL to Loan Category (dollars in thousands) Construction and development $ 13,374 5 % 2.35 % $ 14,983 5 % 2.63 % Commercial, financial & agricultural 26,659 15 % 1.48 % 23,474 15 % 1.33 % Commercial real estate 35,206 41 % 0.73 % 34,897 41 % 0.74 % Residential real estate 54,864 34 % 1.40 % 53,883 33 % 1.44 % Consumer 20,314 5 % 3.62 % 22,437 6 % 3.45 % Total $ 150,417 100 % 1.29 % $ 149,674 100 % 1.31 % Management evaluates the adequacy of the allowance for credit losses on a quarterly basis using the best information available at the time of the assessment. Because the allowance is based on estimates and assumptions regarding borrower performance, economic conditions, and other factors, future adjustments may be necessary as those conditions change. Market Risk Interest Rate Risk Interest rate risk is one of the most significant risks faced by the Company as one of our primary sources of earnings is net interest income, the difference between interest income earned on interest-earning assets such as loans and securities and interest expense paid on interest-bearing liabilities such as deposits and borrowings. The Company’s Asset Liability Management Committee ("ALCO"), operating under authority granted by the Board of Directors, is responsible for measuring, monitoring, and managing interest rate risk to limit earnings volatility and protect capital and liquidity. Investment Securities As part of our broader risk management framework, the investment portfolio serves as a key tool for balancing interest rate exposure, preserving capital, and ensuring adequate liquidity under a range of market conditions. Ongoing monitoring of portfolio composition, valuation trends, and duration sensitivity allows us to assess how shifts in the rate environment or market dynamics may influence both earnings and economic value. As of June 30, 2026, the amortized cost of our AFS and HTM investment portfolios totaled $7.1 billion, an increase of $710 million, or 11.1% versus December 31, 2025. The combined fair value of these portfolios totaled $7.0 billion as of June 30, 2026, an increase of $644 million, or 10.1%, from December 31, 2025. During the second quarter of 2026, the Company redeployed a portion of its excess liquidity held at the Federal Reserve into investment securities, primarily U.S. Treasury, agency CMBS, and agency RMBS securities. The Company also repositioned approximately $210 million of available-for-sale securities with a 2.0% book yield and 1.7-year effective duration into approximately $202 million of securities with a 4.5% book yield and 3.3-year effective duration, recognizing net losses of $7.8 million. Management expects the resulting increase in interest income to recover the recognized losses within approximately two years and improve earnings performance across a range of interest rate environments The portfolio's average tax-equivalent yield was 4.13% at June 30, 2026, an increase of 9 bps compared to December 31, 2025. Gross unrealized gains totaled $12.4 million and $57.2 million at June 30, 2026 and December 31, 2025, respectively, while gross unrealized losses totaled $125.6 million and $104.6 million, respectively. The decline in net unrealized valuation was driven primarily to higher market interest rates during the first six months of 2026, which negatively affected the fair value of longer duration securities. As of June 30, 2026, the portfolio’s composition was 37% agency residential mortgage-backed securities (“RMBS”), 42% agency commercial mortgage-backed securities (“CMBS”), and 17% Treasuries, with the balance in the Small Business Administration (“SBA”), municipal, corporate and other securities. A primary risk of holding agency RMBS comes from the variability in principal cashflows that may occur as interest rates change. In general, when interest rates rise, the prepayment of principal slows down, extending the amount of time it takes to recover and reinvest that principal. In contrast, when interest rates fall, the prepayment of principal 19 generally increases, shortening the amount it takes to recover and reinvest that principal. We evaluate this risk through pre-purchase modeling of potential cashflows as well as continuous modeling throughout the life of the securities. As of June 30, 2026, our best estimate of the duration of our $2.6 billion residential mortgage-backed securities portfolio held in available-for-sale was 3.3 years. As of June 30, 2026, management estimates the effective duration extends by 0.7 years assuming an immediate 200 basis point upward shock and contracts by 0.9 years assuming an immediate 200 basis point downward shock. As of the same date, our best estimate of the duration of the total investment portfolio excluding equity securities was 2.7 years. Management estimates the effective duration extends by 0.3 years assuming an immediate 200 basis point upward shock and contracts by 0.3 years assuming an immediate 200 basis point downward shock. All securities not issued or guaranteed by the U.S. government, its agencies, or sponsored enterprises are subject to a quarterly review to test for impairment. This process is intended to adequately test for a range of credit and loss assumptions and does not rely primarily on credit ratings. This review was performed as of June 30, 2026 and December 31, 2025 and reveal ed no matters that would warrant impairment and result in an allowance for credit losses. The Company determined that all unrealized losses are primarily attributable to changes in interest rates and current market conditions. Sensitivity to Interest Rates We utilize an asset/liability simulation model to evaluate the sensitivity of net interest income (short-term risk) and economic value of equity (“EVE”) (long-term risk) to changes in interest rates under various hypothetical scenarios. EVE represents the estimated present value of assets less liabilities at a point in time. Changes in EVE indicate the potential impact on the long-term earnings capacity of the balance sheet assuming rate changes remain in effect. The table below presents the estimated impact on net interest income and EVE from immediate parallel changes in interest rates as of June 30, 2026. The Company maintained a modestly asset-sensitive interest rate risk profile at quarter-end, with net interest income and EVE responding positively to rising rate scenarios and negatively to declining rate scenarios. The strategic redeployment of excess Federal Reserve cash balances into intermediate-duration investment securities and the selective portfolio repositioning executed during the second quarter reduced the Company's overall asset sensitivity compared to prior periods. As of June 30, 2026 (dollars in thousands) Estimated Increase (Decrease) in Net Interest Income Estimated Increase (Decrease) in EVE Year 1 Year 2 Change in Rates Amount Percent Amount Percent Amount Percent -200 bp $(55,609) (6.4) % $(111,433) (12.3) % $(544,570) (8.1) % -100 bp (27,522) (3.2) % (54,463) (6.0) % (226,599) (3.4) % +100 bp 26,540 3.1 % 52,636 5.8 % 156,271 2.3 % +200 bp 52,370 6.0 % 103,859 11.5 % 255,413 3.8 % The values in the table above are hypothetical and do not reflect potential management actions that could mitigate the effects of interest rate changes, including changes in pricing, balance sheet mix, or funding strategies. Actual results may differ due to variations in the timing and magnitude of interest rate movements, non-parallel yield curve changes, deposit behavior, loan prepayment speeds, or changes in asset and liability composition or growth. The simulations assume no balance sheet growth or additional rate changes beyond the initial shock and are intended to indicate sensitivity to interest rate changes rather than predict actual results. For further discussion of our interest rate risk, see the "Part II, Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations - Market Risk - Interest Rate Risk" included in our 2025 Annual Report on Form 10-K. Liquidity Risk We have maintained a strong liquidity position throughout the first six months of 2026, with total readily available liquidity increasing to $6.8 billion at June 30, 2026 from $6.7 billion at December 31, 2025, representing 34% of total assets. We continue to fund our balance sheet primarily through a stable core deposit base, with a loan-to-deposit ratio of 76% and no FHLB advances or other wholesale borrowings outstanding at quarter-end. The following discussion addresses liquidity at both the Bank and holding company levels. 20 Bank Liquidity The objective of our liquidity management strategy is to ensure the availability of cash sufficient to fund our operations and meet present and future financial obligations at a reasonable cost. We consider the effective and prudent management of liquidity to be fundamental to our health and strength. Our ALCO, which has been authorized by the Board, oversees our liquidity risk to confirm that our activities comply with our funds management policy, which specifies overall objectives, metrics, limits, guidelines, reporting requirements and our contingency funding plan, which includes requirements for liquidity stress testing. The ALCO receives regular comprehensive reporting that includes information describing current levels vs. guidelines and limits for a broad set of liquidity metrics, loan and deposit trends, readily available liquidity measures, explanatory commentary relating to changes in our liquidity position and emerging risk trends and, as appropriate, recommended remedial strategies. Our objective is to maintain prudent levels of current and contingent liquidity from stable sources that can be accessed in a timely manner at a reasonable cost, without significant adverse consequences. We seek to accomplish this mission by funding loans primarily with stable deposits, controlling dependence on wholesale funding, and by maintaining ample readily available liquidity. While our primary source of long-term, stable, and lower-cost funding is deposits, additional sources of funding include, but are not limited to, customer repurchase agreements, federal funds purchased from correspondent banks, unencumbered investment securities, and wholesale funding sources such as FHLB borrowings, dealer repurchase agreements, and wholesale/brokered deposits. As of June 30, 2026, we had approximately $6.8 billion in readily available liquidity compared to $6.7 billion as of December 31, 2025. Readily Available Liquidity June 30, 2026 December 31, 2025 Change (dollars in thousands) Cash reserves at Federal Reserve $ 523,699 $ 1,805,215 $ (1,281,516) FHLB advance capacity (loan collateral) 2,917,899 2,743,992 173,907 Unencumbered securities lending value 3,403,717 2,104,941 1,298,776 Total readily available liquidity $ 6,845,315 $ 6,654,148 $ 191,167 The following table presents selected financials from our consolidated balance sheet and liquidity ratios discussed below. As of As of June 30, 2026 December 31, 2025 Liquidity Ratios: Loan to deposit ratio 76.1 % 72.4 % Cash and securities / total assets 38.6 % 40.9 % Available liquidity / total assets 33.7 % 32.1 % Deposits Deposits are our primary source of funding and also represent our most significant source of liquidity needs. Deposits are gathered primarily through our full-service branch locations, as well as through online, mobile and ATM channels. Central Bank offers a variety of deposit products including noninterest-bearing demand deposits, interest-bearing demand deposits, savings accounts, and certificates of deposit. The following table sets forth the distribution of deposit balances as of June 30, 2026 and December 31, 2025: As of June 30, 2026 December 31, 2025 Ending Balance % of Total Ending Balance % of Total (doll a rs in thousands) Noninterest-bearing demand deposits $ 5,570,404 36.2 % $ 5,615,652 35.4 % Savings and interest-bearing demand deposits 8,263,224 53.7 % 8,611,895 54.3 % Time deposits 1,544,211 10.0 % 1,635,078 10.3 % Total deposits $ 15,377,839 100.0 % $ 15,862,625 100.0 % 21 Total deposits were $15.4 billion as of June 30, 2026, a decrease of $485 million, or 3.1%, from $15.9 billion at December 31, 2025. The decrease was primarily attributable to seasonal declines in public fund deposits, partially offset by growth in commercial deposits. Retail deposit balances remained relatively stable. Noninterest-bearing demand deposits represented 36.2% of total deposits at June 30, 2026, compared with 35.4% at December 31, 2025, reflecting a favorable deposit mix and continued stability in core deposit relationships. FDIC deposit insurance generally covers up to $250 thousand per depositor for each account ownership category. Our estimated uninsured and uncollateralized deposits (excluding intercompany accounts) were $3.2 billion, or 21.1% of total deposits, at June 30, 2026, compared with $3.4 billion at December 31, 2025. Available liquidity sources totaled approximately $6.8 billion at June 30, 2026, providing coverage in excess of estimated uninsured deposits. The decline in deposits, together with loan growth of $239 million during the first six months of 2026, resulted in an increase in the loan-to-deposit ratio to 76% at June 30, 2026, from 72% at December 31, 2025. Federal Funds Purchased and Customer Repurchase Agreements Federal funds purchased and customer repurchase agreements totaled $0.9 billion and $1.0 billion at June 30, 2026 and December 31, 2025, respectively, which included customer repurchase agreements of $834 million and $946 million at June 30, 2026 and December 31, 2025, respectively. These are short-term borrowings that generally have a one-day maturity. Federal funds purchased increased $13 million, or 19.3%, in the first six months of 2026. Off-Balance Sheet Arrangements In the normal course of business, in order to meet the needs of our customers, we are subject to off-balance sheet risk which could potentially impact our financial position. These off-balance sheet arrangements include commitments to fund loans and standby letters of credit. The level of outstanding loan commitments may fluctuate based on macroeconomic conditions and customer demand, and changes in these factors could affect our consolidated balance sheets and liquidity position. See Note 9, “Commitments, Contingencies, and Guarantees” to our consolidated financial statements in this Quarterly Report on Form 10-Q for additional information. Holding Company Liquidity The Company is an independent entity distinct from the Bank and is therefore responsible for managing its own liquidity. Its primary source of funding comes from dividends paid by the Bank. However, there are statutory and regulatory restrictions that limit the Bank’s ability to distribute dividends to the Company. The Bank may not declare dividends in any calendar year in an amount that would exceed its accumulated retained earnings after giving effect to any unrecognized losses and bad debts without the prior approval of the banking regulators. In addition, dividends paid by the Bank to the Company would be prohibited if they would cause the Bank’s capital to be reduced below applicable minimum capital requirements. During the six months ended June 30, 2026, the Bank paid $200 million in dividends to the Company. As of June 30, 2026, th e Bank had approximately $58 million of retained earnings that could be upstreamed to the Company through dividends without prior approval from the Federal Reserve. The liquidity needs of the Company on an unconsolidated basis consist primarily of operating expenses, taxes, and dividends to stockholders. The Company’s liquidity totaled $2.0 billion as of June 30, 2026, consisting primarily of a $1.0 billion loan to the Bank and $1.0 billion in cash and cash equivalents. The Company’s liquidity totaled $1.9 billion as of December 31, 2025, consisting of a $1.0 billion loan to the Bank, and $897 million in cash and cash equivalents. The Company’s operating expenses totale d $6.6 million for the six months ended June 30, 2026. Dividends paid to stockholders tota led $57.7 million and the Company repurchased $39.2 million of common stock, including shares acquired to satisfy tax withholding obligations associated with equity compensation plans, during the first six months of 2026. Operational Risk Operational risk refers to the risk arising from inadequate or failed internal processes or systems, the misconduct or errors of people or adverse external events, as well as risks related to compliance with laws and regulations, and exposure to legal matters. We seek to mitigate operational risks by expanding and maintaining an experienced operations team to meet customer and company demands; providing employees with relevant job-specific training; working with our vendors to use antifraud protections; establishing security procedures for our clients; employing business continuity planning and testing designed to ensure the continued operation of core functions in the event of a business disruption; and 22 engaging in periodic independent audits of our operations and operating controls. We also seek to mitigate operational risks related to misconduct by employees or contractors by implementing internal controls, including dual authorization for monetary transactions, conducting background and credit checks for new hires, screening contractors and third parties providing critical services using a vendor management process, and offering whistleblower protections to our employees to encourage the reporting of misconduct. Our operations are dependent on the secure and reliable functioning of our information systems and those of third-party service providers. As a result, cybersecurity threats and fraud-related risks represent an ongoing area of focus for management, particularly as the use of digital platforms and emerging technologies continues to evolve. We maintain a risk-based cybersecurity and fraud risk management program that includes preventative and detective controls, ongoing monitoring, and response protocols designed to safeguard systems and customer information and support business continuity. These risks are considered within our broader risk management framework and are monitored as part of our ongoing assessment of operational and technology-related risks that could impact our financial condition and results of operations. We continue to monitor evolving cybersecurity and fraud risks, including those related to digital activity and artificial intelligence, which did not materially impact results this quarter. Capital Our capital management strategy is designed to ensure that we have sufficient capital to support balance sheet growth while also maintaining sufficient reserves to absorb unexpected losses or write-downs that are risks inherent to the business of banking. We aim to strike a balance between maintaining higher capital levels to address unforeseen risks and achieving a reasonable return on the capital invested by our shareholders. The Bank is required to meet regulatory capital standards set by federal banking authorities. If the Bank fails to meet the minimum capital requirements, it could trigger mandatory actions, and possibly additional discretionary measures, by the state and federal regulators, which may have a significant impact on the Bank’s financial position. The Bank must comply with specific capital guidelines under the capital adequacy rules and the prompt corrective action framework, which involve quantitative measures based on the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting rules. Additionally, regulators assess the Bank’s capital levels and classifications based on qualitative factors such as risk weightings, the components of capital, and other items. The prompt corrective action (“PCA”) framework is a regulatory tool used to monitor and manage the capital levels of banks. It is designed to maintain the stability and soundness of financial institutions, particularly banks, by requiring regulatory intervention when a bank’s capital falls below certain thresholds. The primary goal of PCA is to address financial distress early, before it results in more severe consequences. These regulations, enforced by federal banking agencies, classify banks based on their capital adequacy and impose escalating supervisory actions as a bank’s capital position deteriorates. PCA regulations mandate that federal regulators take action when a bank’s capital falls below the required thresholds. This can involve measures such as restrictions on paying dividends or bonuses, restrictions on asset growth or expansion, enhanced monitoring and reporting requirements, required capital restoration plans, possible forced mergers or liquidation in extreme cases. At each of June 30, 2026 and December 31, 2025 the Company’s capital ra tios exceeded the regulatory requirements and the Bank’s capital ratios exceeded the threshold for “well capitalized” status. We maintain excess capital, in part, to provide ourselves with flexibility when considering potential acquisition opportunities. Actual and required capital ratios were: 23 As of June 30, 2026 Actual Minimum Capital Adequacy Requirement Well- Capitalized Requirement Amount Ratio Ratio Ratio (dollars in thousands) Total risk-based capital (to risk-weighted assets) Company $ 3,766,459 29.8 % 8.0 % 10.0 % Central Trust Bank 1,749,693 13.9 % 8.0 % 10.0 % Tier 1 capital (to risk-weighted assets) Company 3,615,670 28.6 % 6.0 % 8.0 % Central Trust Bank 1,598,904 12.7 % 6.0 % 8.0 % Tier 1 common equity capital (to risk-weighted assets) Company 3,615,670 28.6 % 4.5 % 6.5 % Central Trust Bank 1,598,904 12.7 % 4.5 % 6.5 % Tier 1 capital (to average assets) Company 3,615,670 17.9 % 4.0 % 5.0 % Central Trust Bank 1,598,904 7.9 % 4.0 % 5.0 % As of December 31, 2025 Actual Minimum Capital Adequacy Requirement Well- Capitalized Requirement Amount Ratio Ratio Ratio (dollars in thousands) Total risk-based capital (to risk-weighted assets) Company $ 3,633,280 29.3 % 8.0 % 10.0 % Central Trust Bank 1,742,888 14.1 % 8.0 % 10.0 % Tier 1 capital (to risk-weighted assets) Company 3,483,247 28.1 % 6.0 % 8.0 % Central Trust Bank 1,592,855 12.9 % 6.0 % 8.0 % Tier 1 common equity capital (to risk-weighted assets) Company 3,483,247 28.1 % 4.5 % 6.5 % Central Trust Bank 1,592,855 12.9 % 4.5 % 6.5 % Tier 1 capital (to average assets) Company 3,483,247 17.9 % 4.0 % 5.0 % Central Trust Bank 1,592,855 8.2 % 4.0 % 5.0 % As of June 30, 2026, we had no material contractual commitments for capital expenditures. However, we are currently progressing through our Core Modernization initiative, which is expected to result in capital expenditures as project phases are executed. To date, we have capitalized $12 million related to this initiative. These expenditures are funded through operating cash flows, and we do not expect the initiative to have a material adverse impact on our liquidity or capital position. Subsequent to quarter-end, on August 3, 2026, the Board of Directors terminated the 2026 Repurchase Program and approved the Second Repurchase Plan, authorizing the repurchase of up to $100 million of the Company's common stock. At June 30, 2026, approximately $11.3 million remained available under the 2026 Repurchase Program; however, that authorization was rescinded and replaced in its entirety by the Second Repurchase Plan. 24 Critical Accounting Policies and Estimates Our consolidated financial statements were prepared in accordance with GAAP and follow general practices within the industry in which we operate. Application of GAAP requires management to make certain estimates and judgments which affect the amounts reported in the consolidated financial statements. Critical accounting policies are those we believe are most important to the portrayal of our consolidated financial statements and require management to make estimates and judgments which are inherently complex, difficult, uncertain and can be subject to significant change over time. In the event that different assumptions or conditions were to prevail, and depending on the severity of such changes, adjustments to accounting estimates may be required. The estimates and judgments that management believes have the most effect on our reported financial position and results of operations are set forth in “Note 1 – Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements, included in our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no significant changes to our critical accounting policies as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025. Allowance for Credit Losses on Loans The allowance for credit losses on loans is a valuation amount that is deducted from the amortized cost basis of loans not held at fair value to present the net amount expected to be collected over the contractual term of the loans. The allowance for credit losses on loans is measured using relevant information about past events, including historical credit loss experience on loans with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flow over the contractual term of the loans. An allowance 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 and reflects management’s current expectations of credit losses. Changes to the allowance for credit losses on loans resulting from periodic evaluations are recorded through increases or decreases to the credit loss expense for loans, which is recorded in provision for credit losses on the consolidated statements of income. Loans that are deemed to be uncollectible are charged off against the related allowance for credit losses on loans. We maintain a policy to reverse accrued and unpaid interest when a loan is placed on non-accrual. Therefore, an allowance is not recorded for accrued interest. The allowance for credit losses on loans is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type, and expected credit loss patterns. We maintain a policy to reverse accrued and unpaid interest when a loan is placed on non-accrual. Therefore, an allowance is not recorded for accrued interest. The allowance for credit losses includes significant assumptions that are uncertain and reasonably likely to have a material impact, the most significant of which are loan loss rates and prepayment speeds. Assumptions are updated based on actual performance on an annual basis. We utilize a consensus macroeconomic forecast which relies on underlying statistical models to incorporate the economic impact into each loan portfolio. Management performs a qualitative analysis considering necessary adjustments based on the potential risks inherent in the macroeconomic forecast and impacts from loan portfolio changes, including concentrations, staffing, asset quality, and policy changes. Model validations are performed to provide an independent assessment of the framework and the model’s use in producing reasonable and supportable estimates. See Note 3, “Loans and Allowance for Credit Losses” to our consolidated financial statements contained elsewhere in this Quarterly Report. Recent Accounting Pronouncements There have been no material changes in recently issued accounting standards from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025. Non-GAAP Financial Measures Reconciliations We provide these measures to supplement our consolidated financial statements prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP) and should not be viewed in isolation from, or as a substitute for, GAAP results. We are presenting these non-GAAP financial measures because we believe, when taken collectively, they may be helpful to investors because they provide consistency and comparability with past financial performance by excluding certain items that may not be indicative of our business, results of operations or outlook. 25 However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As a result, our non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for our consolidated financial statements presented in accordance with GAAP. We disclose net interest income and related ratios and analysis on a FTE basis, which may be considered non-GAAP financial measures. We believe this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures, including the efficiency ratio and net interest margin utilize net interest income on a taxable-equivalent basis. We report interest income, net interest income and net interest margin on an FTE basis using a blended federal and state effective marginal tax rate of 23.84% for the periods presented. The tax equivalent basis gives effect to the tax-exempt interest income, net of the disallowance of interest income, for federal income tax purposes related to certain tax-free assets. We believe these measures enhance comparability of net interest income arising from taxable and tax-exempt sources. We evaluate our profitability and performance based on adjusted net income, adjusted total revenue, adjusted noninterest income, adjusted fee income and adjusted return on average total assets. We make these adjustments to exclude items that management believes are noncore and not indicative of our underlying operating performance. We've adjusted these measures to exclude the loss on the expected sale of the consumer loan portfolio in one of our markets and adjustments that resulted from certain investment portfolio repositioning activities during the periods presented that we consider to be outside of the ordinary course of business. We believe this allows investors to assess our net income, total revenue and noninterest income exclusive of the impact of changes outside the ordinary course of business. Similarly, we evaluate our operational efficiency based on tangible noninterest expense and our adjusted efficiency ratio, which excludes the effect of amortization of intangibles (a non-cash expense item) as well as the exclusions mentioned previously in this paragraph, and includes the tax benefit associated with our tax-advantaged loans. We evaluate our financial condition based on the ratios of our tangible common equity to our tangible assets, tangible book value per share, return and adjusted return on average common equity, and return and adjusted return on average tangible common equity. Our calculation of these ratios allows readers to assess our stockholder’s equity, exclusive of the effect of our goodwill and other intangible assets. Reconciliations for each of these non-GAAP financial measures to the closest GAAP financial measures are included in the tables below. Each of the non-GAAP financial measures presented should be considered in context with our GAAP financial results included in this filing. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (dollars in thousands) Interest income (FTE), net interest income (FTE) and net interest margin (FTE) Interest income $ 260,424 $ 245,680 $ 518,478 $ 485,889 Add: Tax-equivalent adjustment ¹ 1,580 1,542 3,383 3,124 Interest income (FTE) (non-GAAP) $ 262,004 $ 247,222 $ 521,861 $ 489,013 Net interest income {a} $ 212,784 $ 195,057 $ 421,401 $ 384,330 Add: Tax-equivalent adjustment ¹ 1,580 1,542 3,383 3,124 Net interest income (FTE) (non-GAAP) {b} $ 214,364 $ 196,599 $ 424,784 $ 387,454 Average interest-earning assets {c} $ 19,404,610 $ 18,350,707 $ 19,495,436 $ 18,327,322 Net interest margin ² {a ÷ c} 4.40 % 4.26 % 4.36 % 4.23 % Net interest margin (FTE) (non-GAAP) ² {b ÷ c} 4.43 % 4.30 % 4.39 % 4.26 % ¹ Effective marginal tax rate of 23.84% used for all periods. ² Ratios for the three and six months ended June 30, 2026 and 2025 are presented on an annualized basis. 26 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (dollars in thousands) Adjusted noninterest income, adjusted total revenue and adjusted fee income ratio Noninterest income {a} $ 69,555 $ 50,065 $ 134,643 $ 108,854 Less: Loss on sale of consumer lease portfolio - (13,612) - (13,612) Less: Investment securities gains, net 616 - 616 109 Adjusted noninterest income (non-GAAP) {b} $ 68,939 $ 63,677 $ 134,027 $ 122,357 Net interest income $ 212,784 $ 195,057 $ 421,401 $ 384,330 Noninterest income 69,555 50,065 134,643 108,854 Total revenue {c} 282,339 245,122 556,044 493,184 Less: Loss on sale of consumer lease portfolio - (13,612) - (13,612) Less: Investment securities gains, net 616 - 616 109 Adjusted total revenue (non-GAAP) {d} $ 281,723 $ 258,734 $ 555,428 $ 506,687 Fee income ratio {a ÷ c} 24.6 % 20.4 % 24.2 % 22.1 % Adjusted fee income ratio (non-GAAP) {b ÷ d} 24.5 % 24.6 % 24.1 % 24.1 % Tangible noninterest expense, adjusted total revenue (FTE) and efficiency ratio (FTE) Net interest income $ 212,784 $ 195,057 $ 421,401 $ 384,330 Noninterest income 69,555 50,065 134,643 108,854 Total revenue {a} 282,339 245,122 556,044 493,184 Less: Loss on sale of consumer lease portfolio - (13,612) - (13,612) Less: Investment securities gains, net 616 - 616 109 Add: Tax equivalent adjustment ¹ 1,580 1,542 3,383 3,124 Adjusted total revenue (FTE) (non-GAAP) {b} $ 283,303 $ 260,276 $ 558,811 $ 509,811 Noninterest expense {c} $ 131,354 $ 126,770 $ 257,971 $ 249,031 Less: Amortization of intangible assets 804 807 1,609 1,613 Tangible noninterest expense (non-GAAP) {d} $ 130,550 $ 125,963 $ 256,362 $ 247,418 Efficiency ratio {c ÷ a} 46.5 % 51.7 % 46.4 % 50.5 % Efficiency ratio (FTE) (non-GAAP) {d ÷ b} 46.1 % 48.4 % 45.9 % 48.5 % ¹ Effective marginal tax rate of 23.84% used for all periods. Adjusted net income, adjusted return on average total assets, and adjusted earnings per share - diluted Net income {a} $ 113,773 $ 91,365 $ 224,860 $ 186,163 Add: Loss on sale of consumer lease portfolio, net of provision and taxes ¹ ³ - 6,563 - 6,563 Add: Investment securities gains, net of taxes ¹ (469) - (469) (83) Adjusted net income (non-GAAP) {b} $ 113,304 $ 97,928 $ 224,391 $ 192,643 Average total assets {c} $ 20,333,939 $ 19,271,396 $ 20,423,221 $ 19,223,533 Return on average total assets ² {a ÷ c} 2.24 % 1.90 % 2.22 % 1.95 % Adjusted return on average total assets (non-GAAP) ² {b ÷ c} 2.23 % 2.04 % 2.22 % 2.02 % Earnings per share - diluted {d} 0.47 0.41 0.94 0.84 Effect of adjusted net income {e} 0.00 0.03 (0.01) 0.03 Adjusted earnings per share - diluted (non-GAAP) {d + e} 0.47 0.44 0.93 0.87 ¹ Effective marginal tax rate of 23.84% used for all periods. ² Ratios for the three and six months ended June 30, 2026 and 2025 are presented on an annualized basis. ³ The six months ended June 30, 2025 includes a $13.6 million loss on the consumer lease portfolio recognized in other noninterest income and a $5.0 million release of provision, which resulted in a net pre-tax loss of $8.6 million. Net of taxes, at a tax rate of 23.84%, the total impact to net income was $6.6 million. 27 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (dollars in thousands) Tangible common equity, tangible book value per share and tangible common equity to tangible assets Total stockholders' equity {a} $ 3,865,761 $ 3,173,328 $ 3,865,761 $ 3,173,328 Less: Goodwill and other intangible assets 350,055 353,277 350,055 353,277 Tangible common equity (non-GAAP) {b} $ 3,515,706 $ 2,820,051 $ 3,515,706 $ 2,820,051 Total shares of Class A common stock outstanding {c} 239,505 220,665 239,505 220,665 Book value per share {a ÷ c} $ 16.14 $ 14.38 $ 16.14 $ 14.38 Tangible book value per share (non-GAAP) {b ÷ c} $ 14.68 $ 12.78 $ 14.68 $ 12.78 Total assets {d} $ 20,294,827 $ 19,080,430 $ 20,294,827 $ 19,080,430 Less: Goodwill and other intangible assets 350,055 353,277 350,055 353,277 Tangible assets (non-GAAP) {e} $ 19,944,772 $ 18,727,153 $ 19,944,772 $ 18,727,153 Total stockholders' equity to total assets {a ÷ d} 19.0 % 16.6 % 19.0 % 16.6 % Tangible common equity to tangible assets (non-GAAP) {b ÷ e} 17.6 % 15.1 % 17.6 % 15.1 % Tangible net income, adjusted tangible net income, average tangible common equity, adjusted return on average common equity, return on average tangible common equity and adjusted return on average tangible common equity Net income {a} $ 113,773 $ 91,365 $ 224,860 $ 186,163 Add: Amortization of intangible assets, net of taxes ¹ 612 615 1,225 1,228 Tangible net income (non-GAAP) 114,385 91,980 226,085 187,391 Add: Loss on sale of consumer lease portfolio, net of provision and taxes ¹ ³ - 6,563 - 6,563 Add: Investment securities gains, net of taxes ¹ (469) - (469) (83) Adjusted tangible net income (non-GAAP) {b} $ 113,916 $ 98,543 $ 225,616 $ 193,871 Average common equity {c} $ 3,847,407 $ 3,193,917 $ 3,838,545 $ 3,187,824 Less: Average goodwill and other intangible assets 350,576 353,803 350,976 354,205 Average tangible common equity (non-GAAP) {d} $ 3,496,831 $ 2,840,114 $ 3,487,569 $ 2,833,619 Return on average common equity ² {a ÷ c} 11.9 % 11.5 % 11.8 % 11.8 % Adjusted return on average common equity (non-GAAP) ² {b ÷ c} 11.8 % 12.3 % 11.8 % 12.2 % Return on average tangible common equity (non-GAAP) ² {a ÷ d} 13.1 % 13.0 % 13.1 % 13.3 % Adjusted return on average tangible common equity (non-GAAP) ² {b ÷ d} 13.1 % 13.9 % 13.0 % 13.8 % ¹ Effective marginal tax rate of 23.84% used for all periods. ² Ratios for the three and six months ended June 30, 2026 and 2025 are presented on an annualized basis. ³ The six months ended June 30, 2025 includes a $13.6 million loss on the consumer lease portfolio recognized in other noninterest income and a $5.0 million release of provision, which resulted in a net pre-tax loss of $8.6 million. Net of taxes, at a tax rate of 23.84%, the total impact to net income was $6.6 million. 28 Item 1. Financial Statements CENTRAL BANCOMPANY, INC. AND SUBSIDIARIES Consolidated Balance Sheets Unaudited June 30, 2026 December 31, 2025 (dollars in thousands, except share and per share data) Assets Cash and due from banks $ 244,257 $ 258,588 Short-term interest-bearing deposits 524,595 1,805,555 Interest-bearing deposits 450 1,039 Investment securities: Available for sale 7,016,650 6,372,463 Held to maturity, net of allowance for credit losses of $ 12 and $ 10 , and fair value of $ 1,542 and $ 1,700 , as of June 30, 2026 and December 31, 2025, respectively 1,526 1,689 Equity 53,898 48,200 Total investment securities 7,072,074 6,422,352 Loans held for investment 11,673,616 11,434,605 Less allowance for credit losses ( 150,417 ) ( 149,674 ) Net loans 11,523,199 11,284,931 Loans held for sale 27,751 54,119 Land, buildings, and equipment, net 223,803 215,931 Deferred tax assets, net 22,365 - Goodwill and intangibles 350,055 351,664 Other assets 306,278 357,799 Total assets $ 20,294,827 $ 20,751,978 Liabilities and Stockholders' Equity Deposits: Noninterest-bearing demand $ 5,570,404 $ 5,615,652 Savings and interest-bearing demand 8,263,224 8,611,895 Time 1,544,211 1,635,078 Total deposits 15,377,839 15,862,625 Federal funds purchased and customer repurchase agreements 913,127 1,011,851 Total customer funds 16,290,966 16,874,476 Deferred tax liabilities, net - 11,745 Other liabilities 138,100 81,780 Total liabilities 16,429,066 16,968,001 Stockholders' equity: Preferred stock, $ 0.01 par value; 50,000,000 shares authorized; 0 shares issued as of June 30, 2026 and December 31, 2025, respectively - - Class A voting common stock, $ 0.01 par value; 500,000,000 shares authorized; 318,247,550 shares issued as of June 30, 2026 and December 31, 2025, respectively 3,182 3,182 Class B nonvoting common stock, $ 0.01 par value; 50,000,000 shares authorized; 0 shares issued as of June 30, 2026 and December 31, 2025, respectively - - Capital surplus 421,950 419,421 Retained earnings 3,644,555 3,477,408 Accumulated other comprehensive (loss) ( 65,533 ) ( 16,872 ) Total stockholders' equity before treasury stock 4,004,154 3,883,139 Less treasury stock of 78,742,417 and 77,141,300 shares of Class A voting common stock as of June 30, 2026 and December 31, 2025, respectively ( 138,393 ) ( 99,162 ) Total stockholders' equity 3,865,761 3,783,977 Total liabilities and stockholders' equity $ 20,294,827 $ 20,751,978 See accompanying notes to consolidated financial statements 29 CENTRAL BANCOMPANY, INC. AND SUBSIDIARIES Consolidated Statements of Income ( Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (d o ll a rs i n t hou s a n d s, except p er s ha re d ata) Interest income: Loans $ 179,874 $ 177,791 $ 355,950 $ 354,065 Investment securities 73,491 56,928 141,474 110,333 Federal funds sold and securities purchased under agreements to resell 7,059 10,961 21,054 21,491 Total interest income 260,424 245,680 518,478 485,889 Interest expense: Deposits 42,176 44,271 85,601 88,001 Federal funds purchased and customer repurchase agreements 5,464 6,352 11,476 13,558 Total interest expense 47,640 50,623 97,077 101,559 Net interest income 212,784 195,057 421,401 384,330 Provision for (recovery of) credit losses 3,535 ( 7 ) 6,681 2,913 Net interest income after provision for (recovery of) credit losses 209,249 195,064 414,720 381,417 Other income: Wealth management services 23,244 19,319 45,486 38,496 Payment services revenue 18,253 17,420 34,623 33,396 Service charges and commissions 14,785 14,179 29,199 28,123 Mortgage banking revenues 10,615 11,139 20,151 19,866 Investment securities gains, net 616 - 616 109 Other income (loss) 2,042 ( 11,992 ) 4,568 ( 11,136 ) Total other income 69,555 50,065 134,643 108,854 Other expenses: Salaries and employee benefits 80,036 74,736 156,075 145,983 Net occupancy and equipment 12,392 11,664 24,558 23,510 Computer software and maintenance 5,490 5,227 11,467 11,283 Marketing and business development 5,273 5,417 9,830 10,376 Legal and professional fees 5,569 5,477 11,634 10,356 Bankcard processing, rewards and related costs 8,263 8,090 16,016 15,113 Other expenses 14,331 16,159 28,391 32,410 Total other expenses 131,354 126,770 257,971 249,031 Income before income taxes 147,450 118,359 291,392 241,240 Income taxes 33,677 26,994 66,532 55,077 Net income $ 113,773 $ 91,365 $ 224,860 $ 186,163 Net income per common share - basic $ 0.48 $ 0.41 $ 0.94 $ 0.84 Net income per common share - diluted $ 0.47 $ 0.41 $ 0.94 $ 0.84 See accompanying notes to consolidated financial statements 30 CENTRAL BANCOMPANY, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income ( Unaudited ) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (dollars in thousands) Net income $ 113,773 $ 91,365 $ 224,860 $ 186,163 Reclassification adjustment for net losses on AFS securities included in net income, net of tax 5,937 - 5,937 - Unrealized (losses) gains, net of tax ( 17,838 ) 21,350 ( 56,036 ) 66,993 Change in pension surplus, net of tax 419 5,219 1,438 8,636 Total other comprehensive (loss) income ( 11,482 ) 26,569 ( 48,661 ) 75,629 Total comprehensive income $ 102,291 $ 117,934 $ 176,199 $ 261,792 See accompanying notes to consolidated financial statements 31 CENTRAL BANCOMPANY, INC. AND SUBSIDIARIES Consolidated Statement of Changes in Stockholders' Equity ( Unaudited ) Three Months Ended June 30, Class A Common Stock Capital Surplus Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Total (dollars in thousands) Balance at April 1, 2025 $ 2,978 $ 14,121 $ 3,416,346 $ ( 98,953 ) $ ( 90,865 ) $ 3,243,627 Net income - - 91,365 - - 91,365 Other comprehensive income - - - - 26,569 26,569 Purchase treasury stock - - - - - - Cash dividends paid on common stock ($ 0.855 per share) - - ( 188,661 ) - - ( 188,661 ) Stock-based compensation - 664 - - - 664 Issuance under equity compensation plans - ( 31 ) - ( 205 ) - ( 236 ) Balance at June 30, 2025 $ 2,978 $ 14,754 $ 3,319,050 $ ( 99,158 ) $ ( 64,296 ) $ 3,173,328 Balance at April 1, 2026 $ 3,182 $ 420,427 $ 3,559,565 $ ( 130,797 ) $ ( 54,051 ) $ 3,798,326 Net income - - 113,773 - - 113,773 Other comprehensive income - - - - ( 11,482 ) ( 11,482 ) Purchase treasury stock - - - ( 7,594 ) - ( 7,594 ) Cash dividends paid on common stock ($ 0.12 per share) - - ( 28,787 ) - - ( 28,787 ) Stock-based compensation - 1,521 - - - 1,521 Issuance under equity compensation plans - 2 3 ( 2 ) - 3 Balance at June 30, 2026 $ 3,182 $ 421,950 $ 3,644,555 $ ( 138,393 ) $ ( 65,533 ) $ 3,865,761 See accompanying notes to consolidated financial statements 32 Six Months Ended June 30, Class A Common Stock Capital Surplus Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Total (doll a rs in thousands) Balance at January 1, 2025 $ 2,978 $ 13,319 $ 3,333,669 $ ( 99,380 ) $ ( 139,925 ) $ 3,110,661 Net income - - 186,163 - - 186,163 Other comprehensive income - - - - 75,629 75,629 Purchase treasury stock - - - - - - Cash dividends paid on common stock ($ 0.91 per share) - - ( 200,782 ) - - ( 200,782 ) Issuance of common stock, net - - - - - - Stock-based compensation - 1,598 - - - 1,598 Issuance under equity compensation plans - ( 163 ) - 222 - 59 Balance at June 30, 2025 $ 2,978 $ 14,754 $ 3,319,050 $ ( 99,158 ) $ ( 64,296 ) $ 3,173,328 - - - - - - Balance at January 1, 2026 $ 3,182 $ 419,421 $ 3,477,408 $ ( 99,162 ) $ ( 16,872 ) $ 3,783,977 Net income - - 224,860 - - 224,860 Other comprehensive income - - - - ( 48,661 ) ( 48,661 ) Purchase treasury stock - - - ( 38,736 ) - ( 38,736 ) Cash dividends paid on common stock ($ 0.24 per share) - - ( 57,720 ) - - ( 57,720 ) Issuance of common stock, net - - - - - - Stock-based compensation - 2,525 - - - 2,525 Issuance under equity compensation plans - 4 6 ( 495 ) - ( 485 ) Balance at June 30, 2026 $ 3,182 $ 421,950 $ 3,644,555 $ ( 138,393 ) $ ( 65,533 ) $ 3,865,761 See accompanying notes to consolidated financial statements 33 CENTRAL BANCOMPANY, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows ( Unaudited ) Six Months Ended June 30, 2026 2025 (dollars in thousands) Cash flows from operating activities: Net income $ 224,860 $ 186,163 Adjustments to reconcile net income to net cash from operating activities Depreciation and amortization 9,892 9,947 Net accretion of discounts and premiums ( 15,066 ) ( 7,970 ) Deferred income taxes ( 18,877 ) ( 5,383 ) Provision for credit losses 6,681 2,913 Net gain on sale of loans ( 14,291 ) ( 15,157 ) Net change in trading debt securities - 666 Net investment securities gains ( 615 ) ( 109 ) Originations of mortgage loans held for sale ( 628,751 ) ( 623,845 ) Proceeds from sales of mortgage loans held for sale 638,646 635,716 Stock-based compensation 2,525 1,598 Decrease (increase) in other assets 49,344 ( 142,394 ) Increase in other liabilities 57,808 16,484 Net cash provided by operating activities 312,156 58,628 Cash flows from investing activities: Purchase of AFS securities ( 1,565,500 ) ( 1,158,024 ) Purchase of equity securities ( 78 ) ( 154 ) Proceeds from sales of AFS securities 202,427 - Proceeds from sales of equity securities 2,791 873 Proceeds from maturities of AFS securities 660,375 891,797 Proceeds from maturities of HTM securities 164 156 Net change in interest-bearing deposits 589 51 Net (increase) decrease in loans ( 214,174 ) 303,722 Purchase of land, buildings, and equipment ( 14,266 ) ( 7,454 ) Proceeds from sale of land, buildings, and equipment 288 5,751 Net cash (used in) provided by investing activities ( 927,384 ) 36,718 Cash flows from financing activities: (Decrease) in deposits ( 393,919 ) ( 196,755 ) (Decrease) increase in time deposits ( 90,867 ) 63 (Decrease) in federal funds purchased and customer repurchase agreements ( 98,724 ) ( 33,677 ) Dividends paid ( 57,817 ) ( 200,318 ) Purchase of treasury stock ( 38,736 ) - Net cash (used in) financing activities ( 680,063 ) ( 430,687 ) Net (decrease) in cash and cash equivalents ( 1,295,291 ) ( 335,341 ) Cash and cash equivalents at beginning of year 2,064,143 1,241,808 Cash and cash equivalents at end of year $ 768,852 $ 906,467 Cash and due from banks $ 244,257 $ 243,927 Short-term interest-bearing deposits 523,699 660,705 Federal funds sold and securities purchased under agreements to resell 896 1,835 Total cash and cash equivalents $ 768,852 $ 906,467 Supplemental disclosure of cash flow information: Interest paid $ 95,984 $ 100,892 Income taxes paid 36,686 55,174 Loans transferred to foreclosed assets held for sale 2,347 2,084 See accompanying notes to consolidated financial statements 34 CENTRAL BANCOMPANY, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements ( Unaudited ) (1) Basis of Presentation 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. The consolidated financial statements in this report have not been audited by an independent registered public accounting firm, but in the opinion of management, all adjustments necessary to present fairly the financial position and the results of operations for the interim periods have been made. In addition, all significant intercompany accounts and transactions have been eliminated. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheets and revenues and expenses for the periods presented. Actual results could differ significantly from those estimates. The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of results to be attained for the full year or any other interim period. The consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and should be read in conjunction with the Company's audited consolidated financial statements and notes for the year ended December 31, 2025 contained in the Company's 2025 Annual Report on Form 10-K. Management has evaluated subsequent events for potential recognition or disclosure. (2) Investment Securities The table below includes the fair value of equity securities as of June 30, 2026 and December 31, 2025. Equity investments with no readily determinable fair value are carried at cost. FHLB and FRB 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. June 30, 2026 December 31, 2025 (dollars in thousands) Common and preferred stocks with readily determinable fair value $ 5,667 $ - Federal Home Loan Bank stock 10,586 10,634 Federal Reserve Bank stock 26,057 26,057 Other - no readily determinable fair value 11,588 11,510 Total $ 53,898 $ 48,200 On April 13, 2026, Visa announced the commencement of an exchange offer pursuant to which holders of Class B-2 common stock could exchange their shares for a combination of Visa Class B-3 common stock and Class C common stock (the "Exchange Offer"). In May 2026, the Company participated in Visa Inc.'s Exchange Offer, pursuant to which all 33,010 shares of its Class B-2 common stock were validly tendered and accepted in exchange for a combination of Visa Class B-3 common stock and Class C common stock, together with cash in lieu of fractional shares. Upon completion of the Exchange Offer, the Company recognized a pre-tax gain of approximately $ 8.4 million reflecting the fair value of the Class C shares received in the transaction. Immediately following the exchange, the Company converted approximately one-third of its Visa Class C shares to Visa Class A common stock and sold the resulting Class A shares, realizing approximately $ 2.7 million of the gain previously recognized upon completion of the Exchange Offer. As of June 30, 2026, the Company held 8,292 shares of Visa Class A common stock and 2,074 shares of Visa Class C common stock. The fair value of the Class C shares was determined based on their as-converted equivalence to Visa Class A common stock and the closing price of Visa Class A common stock of $ 341.65 per share on June 29, 2026. The Class A shares were subsequently sold in July 2026, resulting in the realization of an additional $ 2.9 million of the gain previously recognized upon completion of the Exchange Offer. 35 As of June 30, 2025, the Company also held 16,505 shares of Visa Class B-3 common stock. These shares are subject to restrictions similar to those applicable to the former Class B-2 shares and are carried at a value of zero under the measurement alternative, as there have been no observable price changes in orderly transactions for identical or similar investments of the same issuer. During the first six months of 2026, $ 8.4 million in net gains were recorded on common and preferred stock, consisting of $ 2.7 million in gains realized on sales and a $ 5.7 million increase in unrealized gains on the portfolio. Net gains of $ 0.1 million were recorded on common and preferred stock during the first six months of 2025, consisting of $ 0.8 million in realized gains on sales, offset by a $ 0.7 million decrease in unrealized gains on the portfolio. 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 June 30, 2026 and December 31, 2025. As of June 30, 2026 Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Allowance for Credit Losses Net Carrying Amount (dollars in thousands) Available for sale: U.S. Treasury securities $ 1,205,933 $ 1,667 $ ( 5,684 ) $ 1,201,916 $ - $ 1,201,916 U.S. agency debentures 55,665 24 ( 109 ) 55,580 - 55,580 U.S. agency mortgage-backed securities 5,849,445 10,713 ( 119,726 ) 5,740,432 - 5,740,432 Obligations of states and political subdivisions 14,331 35 ( 55 ) 14,312 - 14,312 Other securities 4,467 - ( 57 ) 4,410 - 4,410 Total $ 7,129,841 $ 12,439 $ ( 125,631 ) $ 7,016,650 $ - $ 7,016,650 Held to maturity: U.S. agency RMBS $ 19 $ 1 $ - $ 20 $ - $ 20 Obligations of states and political subdivisions 1,519 3 - 1,522 ( 12 ) 1,510 Total $ 1,538 $ 4 $ - $ 1,542 $ ( 12 ) $ 1,530 As of December 31, 2025 Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Allowance for Credit Losses Net Carrying Amount (dollars in thousands) Available for sale: 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 $ 6,419,874 $ 57,171 $ ( 104,582 ) $ 6,372,463 $ - $ 6,372,463 Held to maturity: U.S. agency RMBS $ 21 $ 1 $ - $ 22 $ - $ 22 Obligations of states and political subdivisions 1,678 - - 1,678 ( 10 ) 1,668 Total $ 1,699 $ 1 $ - $ 1,700 $ ( 10 ) $ 1,690 Accrued interest receivable totaled $ 28.8 million and $ 25.1 million at June 30, 2026 and December 31, 2025, respectively, and is included within other assets on the consolidated balance sheets. 36 The amortized cost and fair value of AFS and HTM securities at June 30, 2026, by contractual maturity, are shown below: June 30, 2026 U.S. government obligations and government- sponsored enterprises Obligations of states and political subdivisions Other securities* Amortized cost FTE Yield Fair value Amortized cost FTE Yield Fair value Amortized cost FTE Yield Fair value (dollars in thousands) Available for sale: Within 1 year $ 129,699 4.45 % $ 129,902 $ 7,846 4.40 % $ 7,846 $ - - % $ - After 1 but within 5 years 1,131,899 4.18 % 1,127,593 6,088 4.53 % 6,073 - - - After 5 but within 10 years - - - - - - - - - After 10 years - - - 397 7.91 % 393 - - - Mortgage - and asset-backed securities 5,849,445 4.12 % 5,740,433 - - - 4,467 4.58 % 4,410 Total $ 7,111,043 4.13 % $ 6,997,928 $ 14,331 4.55 % $ 14,312 $ 4,467 4.58 % $ 4,410 Held to maturity: Within 1 year $ - - % $ - $ 295 5.04 % $ 295 $ - - % $ - After 1 but within 5 years - - - 1,224 2.28 % 1,227 - - - After 5 but within 10 years - - - - - - - - - After 10 years - - - - - - - - - Mortgage - and asset-backed securities 19 6.11 % 20 - - - - - - Total $ 19 6.11 % $ 20 $ 1,519 2.82 % $ 1,522 $ - - % $ - * Other securities consist primarily of corporate bonds. Proceeds from sales of AFS securities were $ 202 million and $ 0 for the six months ended June 30, 2026 and June 30, 2025, respectively. Using the specific-identification method to determine the cost of the securities sold, the Company recognized net losses of $ 7.8 million and $ 0 on the sales of AFS securities during the six months ended June 30, 2026 and 2025, respectively. Investment securities with a carrying value of approximately $ 3.38 billion and $ 4.06 billion were pledged to secure public deposits, repurchase agreements, and borrowed funds at June 30, 2026 and December 31, 2025, respectively. Allowance for credit losses on investment securities: The expected credit losses for HTM debt securities are determined based on the likelihood of default and potential loss, using assumptions that correspond to loans with similar credit profiles. The Company recorded an allowance for credit losses on its HTM debt securities of $ 12 thousand and $ 10 thousand at June 30, 2026 and December 31, 2025, respectively. All AFS securities not issued or guaranteed by the U.S. Government, its agencies, or sponsored enterprises undergo a quarterly evaluation for impairment. This evaluation involves testing various credit and loss assumptions, rather than solely relying on credit ratings. As of June 30, 2026, the Company did not identify any such securities for which a credit loss exists, and for the three and six months ended June 30, 2026 and 2025, the Company did not recognize a credit loss expense on any AFS securities. 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 June 30, 2026, the fair value of securities on this watch list was $ 3.5 million compared to $ 4.9 million at December 31, 2025. The table below summarizes debt securities AFS in an unrealized loss position, aggregated by length of impairment period, for which an allowance for credit loss has not been recorded at June 30, 2026 and December 31, 2025. Unrealized losses on these AFS securities have not been recognized as 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. During the second quarter of 2026, the Company sold approximately $ 210 million of available-for-sale securities at a net loss of $ 7.8 million as part of a strategic repositioning to improve portfolio yield and extend duration. With respect to the remaining securities in an unrealized loss position, at June 30, 2026 management has both the intent and the ability to hold these securities until recovery of any unrealized losses, which may be at maturity, and does not expect to be required to sell the securities prior to such recovery. 37 As of June 30, 2026 Less than 12 months 12 months or more Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses (dollars in thousands) Available for sale: U.S. government obligations and government- sponsored enterprises $ 3,436,410 $ ( 30,466 ) $ 1,080,824 $ ( 95,053 ) $ 4,517,234 $ ( 125,519 ) Obligations of states and political subdivisions - - 5,725 ( 55 ) 5,725 ( 55 ) Other securities - - 3,304 ( 57 ) 3,304 ( 57 ) Total $ 3,436,410 $ ( 30,466 ) $ 1,089,853 $ ( 95,165 ) $ 4,526,263 $ ( 125,631 ) 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 (dollars in thousands) Available for sale: 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 $ 419,704 $ ( 1,190 ) $ 1,479,874 $ ( 103,392 ) $ 1,899,578 $ ( 104,582 ) At June 30, 2026, there were no held-to-maturity securities in an unrealized loss position across any investment category or duration period. This compares to December 31, 2025, at which time the held-to-maturity portfolio contained $ 0.5 million in fair value of obligations of states and political subdivisions that had been in an unrealized loss position for less than 12 months, with no associated unrealized loss amount. There were no U.S. government or government-sponsored enterprise held-to-maturity securities in an unrealized loss position at either date. 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 of the Company's HTM obligations of states and political subdivisions at June 30, 2026 and December 31, 2025. June 30, 2026 Amortized Cost Basis by Credit Rating - HTM Debt Securities Non-Rated A AA AAA Total Held to maturity securities: (dollars in thousands) State and political subdivisions $ 246 $ - $ 978 $ 295 $ 1,519 December 31, 2025 Amortized Cost Basis by Credit Rating - HTM Debt Securities Non-Rated A AA AAA Total Held to maturity securities: (dollars in thousands) State and political subdivisions $ 251 $ - $ 1,132 $ 295 $ 1,678 All HTM securities were current at June 30, 2026 and December 31, 2025. 38 (3) Loans and Allowance for Credit Losses Loans consisted of the following at June 30, 2026 and December 31, 2025: June 30, 2026 December 31, 2025 (dollars in thousands) Loans held for investment: Construction and development $ 569,593 $ 570,749 Commercial, financial & agricultural 1,799,584 1,761,287 Non-owner-occupied commercial real estate 3,249,479 3,150,269 Owner-occupied commercial real estate 1,595,866 1,580,260 Commercial real estate 4,845,345 4,730,529 Total commercial loans 7,214,522 7,062,565 Residential mortgage loans 3,475,428 3,321,101 Home equity lines of credit 433,330 410,845 Consumer credit card 98,107 98,310 Other consumer loans 462,469 551,395 Total residential and consumer loans 4,469,334 4,381,651 Total unpaid principal balance 11,683,856 11,444,216 Add: Unearned income ( 10,240 ) ( 9,611 ) Loans, held for investment 11,673,616 11,434,605 Loans held for sale 27,751 54,119 Total loans and leases $ 11,701,367 $ 11,488,724 Accrued interest receivable totaled $ 46.2 million and $ 45.9 million at June 30, 2026 and December 31, 2025, respectively, and is included within other assets on the consolidated balance sheets. No loans were acquired by the Company for the six months ended June 30, 2026 and December 31, 2025. As of June 30, 2026, loans made to related parties of the Company totaled $ 308.4 million. These loans primarily consist of loans made by the Bank to related parties of the Company, which were made in the ordinary course of business of the Bank and otherwise on terms consistent with those available to all customers. June 30, 2026 (dollars in thousands) Balance of loans to related parties, beginning of year $ 340,010 New loans 13,065 Repayments ( 22,568 ) Change in relationship ( 22,069 ) Balance of loans to related parties, June 30, 2026 $ 308,438 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, Oklahoma and Colorado 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, and 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. 39 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. 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 June 30, 2026 and December 31, 2025 are discussed below. Key Assumption June 30, 2026 December 31, 2025 Overall economic forecast - Forecast provided by Oxford Economics - The baseline forecast reflects continued pressure from elevated energy prices and geopolitical uncertainty related to the Middle East conflict. The forecast assumes disruptions remain temporary and do not result in a prolonged oil supply shock. - Moderate economic growth, elevated inflation, and a stable market are expected over the forecast horizon. - 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. 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 remains stable at 4.3 % - GDP growth forecast of 2.6 % -Prime rate is 6.75 %, declining to 6.25 % at the end of the supportable forecast - 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 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: - Severe volatility in economic and geopolitical manners - Potential impact of inflation and higher interest rates on borrower performance - Changes in portfolio composition, concentrations, and underwriting standards 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 40 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. 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 three and six months ended June 30, 2026 and June 30, 2025. Included within commercial loans are the following pools – real estate development & construction, commercial real estate, owner-occupied CRE, commercial & industrial, 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. Three Months Ended June 30, 2026 Commercial real estate Residential real estate Consumer Construction & development Commercial, financial & agricultural Non-owner occupied CRE Owner occupied CRE Residential mortgage loans Home equity line of credit Consumer credit card All other consumer Total (dollars in thousands) Allowance for credit losses on loans Balance at beginning of period $ 12,219 $ 25,127 $ 25,607 $ 10,609 $ 49,028 $ 5,836 $ 8,603 $ 12,860 $ 149,889 Provision for credit losses on loans 1,154 2,263 ( 847 ) ( 553 ) 71 79 887 489 3,543 Loans charged off - ( 960 ) - - ( 157 ) ( 39 ) ( 1,015 ) ( 2,516 ) ( 4,687 ) Recoveries on loans previously charged off 1 229 5 385 14 32 279 727 1,672 Balance at end of period $ 13,374 $ 26,659 $ 24,765 $ 10,441 $ 48,956 $ 5,908 $ 8,754 $ 11,560 $ 150,417 Liability for unfunded commitments Balance at beginning of period $ 91 $ 138 $ 8 $ 9 $ 10 $ 113 $ - $ - $ 369 Provision for credit losses on unfunded lending commitments ( 1 ) ( 7 ) ( 3 ) - 1 1 - - ( 9 ) Balance at end of period $ 90 $ 131 $ 5 $ 9 $ 11 $ 114 $ - $ - $ 360 Allowance for credit losses on loans and liability for unfunded lending commitments $ 13,464 $ 26,790 $ 24,770 $ 10,450 $ 48,967 $ 6,022 $ 8,754 $ 11,560 $ 150,777 Three Months Ended June 30, 2025 Commercial real estate Residential real estate Consumer Construction & development Commercial, financial & agricultural Non-owner occupied CRE Owner occupied CRE Residential mortgage loans Home equity line of credit Consumer credit card All other consumer Total (dollars in thousands) Allowance for credit losses on loans Balance at beginning of period $ 12,991 $ 23,874 $ 26,382 $ 10,451 $ 44,000 $ 4,757 $ 7,990 $ 23,293 $ 153,738 Provision for credit losses on loans 1,001 1,450 ( 788 ) ( 8 ) 1,931 334 756 ( 4,717 ) ( 41 ) Loans charged off - ( 1,681 ) - - ( 188 ) - ( 770 ) ( 3,270 ) ( 5,909 ) Recoveries on loans previously charged off 3 269 - 1 22 2 181 1,115 1,593 Balance at end of period $ 13,995 $ 23,912 $ 25,594 $ 10,444 $ 45,765 $ 5,093 $ 8,157 $ 16,421 $ 149,381 Liability for unfunded commitments Balance at beginning of period $ 231 $ 138 $ 6 $ 9 $ 13 $ 93 $ - $ - $ 490 41 Three Months Ended June 30, 2025 Provision for credit losses on unfunded lending commitments 24 ( 1 ) - ( 1 ) 5 7 - - 34 Balance at end of period $ 255 $ 137 $ 6 $ 8 $ 18 $ 100 $ - $ - $ 524 Allowance for credit losses on loans and liability for unfunded lending commitments $ 14,250 $ 24,049 $ 25,600 $ 10,452 $ 45,783 $ 5,193 $ 8,157 $ 16,421 $ 149,905 Six Months Ended June 30, 2026 Commercial real estate Residential real estate Consumer Construction & development Commercial, financial & agricultural Non-owner occupied CRE Owner occupied CRE Residential mortgage loans Home equity line of credit Consumer credit card All other consumer Total (dollars in thousands) Allowance for credit losses on loans Balance at beginning of period $ 14,983 $ 23,474 $ 24,637 $ 10,260 $ 48,341 $ 5,542 $ 8,806 $ 13,631 $ 149,674 Provision for credit losses on loans ( 1,611 ) 4,335 ( 30 ) ( 151 ) 820 387 1,533 1,385 6,668 Loans charged off - ( 2,804 ) - ( 103 ) ( 240 ) ( 54 ) ( 2,136 ) ( 4,848 ) ( 10,185 ) Recoveries on loans previously charged off 2 1,654 158 435 35 33 551 1,392 4,260 Balance at end of period $ 13,374 $ 26,659 $ 24,765 $ 10,441 $ 48,956 $ 5,908 $ 8,754 $ 11,560 $ 150,417 Liability for unfunded commitments Balance at beginning of period 104 116 8 7 9 105 - - 349 Provision for credit losses on unfunded lending commitments ( 14 ) 15 ( 3 ) 2 2 9 - - 11 Balance at end of period $ 90 $ 131 $ 5 $ 9 $ 11 $ 114 $ - $ - $ 360 Allowance for credit losses on loans and liability for unfunded lending commitments $ 13,464 $ 26,790 $ 24,770 $ 10,450 $ 48,967 $ 6,022 $ 8,754 $ 11,560 $ 150,777 Six Months Ended June 30, 2025 Commercial real estate Residential real estate Consumer Construction & development Commercial, financial & agricultural Non-owner occupied CRE Owner occupied CRE Residential mortgage loans Home equity line of credit Consumer credit card All other consumer Total (dollars in thousands) Allowance for credit losses on loans Balance at beginning of period $ 14,119 $ 23,915 $ 24,815 $ 9,940 $ 43,471 $ 4,505 $ 8,299 $ 25,215 $ 154,279 Provision for credit losses on loans ( 143 ) 1,778 1,595 502 2,516 585 1,092 ( 5,054 ) 2,871 Loans charged off - ( 2,467 ) ( 816 ) - ( 358 ) - ( 1,604 ) ( 6,291 ) ( 11,536 ) Recoveries on loans previously charged off 19 686 - 2 136 3 370 2,551 3,767 Balance at end of period $ 13,995 $ 23,912 $ 25,594 $ 10,444 $ 45,765 $ 5,093 $ 8,157 $ 16,421 $ 149,381 Liability for unfunded commitments Balance at beginning of period 165 161 6 10 7 135 - - 484 Provision for credit losses on unfunded lending commitments 90 ( 24 ) - ( 2 ) 11 ( 35 ) - - 40 Balance at end of period $ 255 $ 137 $ 6 $ 8 $ 18 $ 100 $ - $ - $ 524 Allowance for credit losses on loans and liability for unfunded lending commitments $ 14,250 $ 24,049 $ 25,600 $ 10,452 $ 45,783 $ 5,193 $ 8,157 $ 16,421 $ 149,905 42 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 June 30, 2026 and December 31, 2025. Balances in the tables below represent total unpaid principal balances gross of unearned and unamortized loan fees and costs. June 30, 2026 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 $ 568,747 $ 532 $ - $ 314 $ 569,593 Commercial, financial & agricultural 1,788,116 1,307 27 10,134 1,799,584 Non-owner-occupied commercial real estate 3,228,311 5,104 - 16,064 3,249,479 Owner-occupied commercial real estate 1,592,352 1,622 - 1,892 1,595,866 Total commercial real estate 4,820,663 6,726 - 17,956 4,845,345 Total commercial loans 7,177,526 8,565 27 28,404 7,214,522 Residential mortgage loans 3,445,712 5,015 1,649 23,052 3,475,428 Home equity lines of credit 429,878 1,968 65 1,419 433,330 Consumer credit card 97,174 650 283 - 98,107 Other consumer loans 453,147 7,069 2 2,251 462,469 Total residential and consumer loans 4,425,911 14,702 1,999 26,722 4,469,334 Total $ 11,603,437 $ 23,267 $ 2,026 $ 55,126 $ 11,683,856 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 $ 11,363,135 $ 35,075 $ 1,343 $ 44,663 $ 11,444,216 At June 30, 2026 and December 31, 2025, the Company had $ 20.0 million and $ 16.9 million, respectively, of non-accrual commercial loans that had no allowance for credit loss. The interest income recorded on nonaccrual loans was approximately $ 0.6 million and $ 0.7 million in the first six months of 2026 and 2025, 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 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 43 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 June 30, 2026 and December 31, 2025 are as follows: June 30, 2026 Term Loans Amortized Cost Basis by Origination Year 2026 2025 2024 2023 2022 Prior Revolving loans amortized cost basis Total (dollars in thousands) Construction and development Risk Rating Pass $ 53,374 $ 181,698 $ 175,336 $ 17,220 $ 53,451 $ 30,966 $ 43,603 $ 555,648 Watch - 551 85 - 5,379 - - 6,015 Substandard - 1,913 2,612 - 2,824 267 - 7,616 Non-accrual - - 240 - - 74 - 314 Total construction and development 53,374 184,162 178,273 17,220 61,654 31,307 43,603 569,593 Gross write-offs for the six months ended June 30, 2026 - - - - - - - - Commercial, financial & agricultural Risk Rating Pass 252,798 321,865 212,674 116,054 120,110 261,748 486,810 1,772,059 Watch 905 1,185 1,433 819 184 95 2,070 6,691 Substandard 88 306 814 621 383 7,758 729 10,699 Non-accrual - - 3,842 1,412 680 4,201 - 10,135 Total commercial, financial & agricultural 253,791 323,356 218,763 118,906 121,357 273,802 489,609 1,799,584 Gross write-offs for the six months ended June 30, 2026 57 745 331 240 418 429 584 2,804 Non-owner occupied CRE Risk Rating Pass 238,427 427,368 285,060 272,251 542,942 1,330,240 45,710 3,141,998 Watch - 2,934 912 2,585 21,208 21,442 340 49,421 Substandard - - 910 - 20,470 20,616 - 41,996 Non-accrual - - - 4,095 9,126 2,843 - 16,064 Total non-owner occupied CRE 238,427 430,302 286,882 278,931 593,746 1,375,141 46,050 3,249,479 Gross write-offs for the six months ended June 30, 2026 - - - - - - - - Owner occupied CRE Risk Rating Pass 119,411 234,705 120,139 105,118 162,987 668,177 115,993 1,526,530 Watch 388 4,027 4,649 2,563 3,281 16,098 5,137 36,143 Substandard 1,379 33 2,011 3,623 13,611 9,109 1,535 31,301 Non-accrual - - - 70 825 997 - 1,892 Total owner occupied CRE 121,178 238,765 126,799 111,374 180,704 694,381 122,665 1,595,866 Gross write-offs for the six months ended June 30, 2026 48 - - - - 55 - 103 44 Residential mortgage loans Accrual 545,526 810,454 422,875 367,340 489,823 758,634 57,724 3,452,376 Non-accrual - 263 5,526 8,522 2,648 6,093 - 23,052 Total Residential mortgage loans 545,526 810,717 428,401 375,862 492,471 764,727 57,724 3,475,428 Gross write-offs for the six months ended June 30, 2026 105 - 93 42 - - - 240 Home equity lines of credit Accrual 1,406 78 408 6 214 2,521 427,278 431,911 Non-accrual - - - - - - 1,419 1,419 Total home equity lines of credit 1,406 78 408 6 214 2,521 428,697 433,330 Gross write-offs for the six months ended June 30, 2026 54 - - - - - - 54 Consumer credit card Current - - - - - - 97,174 97,174 30-89 days - - - - - - 650 650 90+days - - - - - - 283 283 Total consumer credit card - - - - - - 98,107 98,107 Gross write-offs for the six months ended June 30, 2026 - - - - - - 2,136 2,136 All other consumer Current 55,830 80,948 77,730 82,551 67,849 60,533 27,706 453,147 30-89 days 163 856 1,262 1,871 1,530 1,387 - 7,069 90+ days 2 - - - - - - 2 Non-accrual 2 401 266 550 539 493 - 2,251 Total all other consumer 55,997 82,205 79,258 84,972 69,918 62,413 27,706 462,469 Gross write-offs for the six months ended June 30, 2026 744 570 756 1,244 1,006 528 - 4,848 Total loans $ 1,269,699 $ 2,069,585 $ 1,318,784 $ 987,271 $ 1,520,064 $ 3,204,292 $ 1,314,161 $ 11,683,856 Gross write-offs for the six months ended June 30, 2026 1,008 1,315 1,180 1,526 1,424 1,012 2,720 10,185 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 Risk Rating 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 45 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) Commercial, financial & agricultural Risk Rating 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 CRE Risk Rating 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 CRE 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 CRE Risk Rating 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 CRE 232,776 135,663 118,511 192,448 242,216 543,897 114,749 1,580,260 Gross write-offs for the year ended December 31, 2025 - - - 384 - - - 384 Residential mortgage loans Accrual 912,652 544,631 429,302 529,876 394,244 440,662 45,841 3,297,208 Non-accrual 510 4,328 8,425 3,002 4,121 3,507 - 23,893 Total Residential mortgage loans 913,162 548,959 437,727 532,878 398,365 444,169 45,841 3,321,101 Gross write-offs for the year ended December 31, 2025 263 30 189 158 91 - - 731 Home equity lines of credit Accrual 1,061 16 598 99 249 2,707 404,912 409,642 Non-accrual - - - - - - 1,203 1,203 Total home equity lines of credit 1,061 16 598 99 249 2,707 406,115 410,845 Gross write-offs for the year ended December 31, 2025 25 - - - - - 39 64 Consumer credit card Current - - - - - - 96,988 96,988 30-89 days - - - - - - 1,042 1,042 90+days - - - - - - 280 280 Total consumer credit card - - - - - - 98,310 98,310 Gross write-offs for the year ended December 31, 2025 - - - - - - 3,452 3,452 46 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) All other consumer 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 all other consumer 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 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 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 June 30, 2026 and December 31, 2025, by the expected source of repayment. June 30, 2026 Real Estate Business Assets Total (dollars in thousands) Construction and development $ 1,414 $ - $ 1,414 Commercial, financial & agricultural - 9,741 9,741 Non-owner-occupied commercial real estate 16,143 - 16,143 Owner-occupied commercial real estate 3,705 - 3,705 Residential mortgage loans 419 - 419 Home equity lines of credit 28 - 28 Total $ 21,709 $ 9,741 $ 31,450 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 Home equity lines of credit - - - Total $ 16,224 $ 4,404 $ 20,628 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 47 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 at June 30, 2026 and 2025 of loans that were modified during the three and six months ended June 30, 2026 and 2025. Three Months Ended June 30, 2026 Term Extension Payment Delay Interest Rate Reduction Interest/Fees Forgiven Other Total % of Total Loan Category (dollars in thousands) Construction and development $ 6,632 $ - $ - $ - $ - $ 6,632 1.16 % Commercial, financial & agricultural 6,458 1,666 - - - 8,124 0.45 % Non-owner occupied CRE 15,064 - - 6,369 - 21,433 0.66 % Owner occupied CRE 8,907 316 - - - 9,223 0.58 % Total commercial real estate 23,971 316 - 6,369 - 30,656 0.63 % Residential mortgage loans 1,600 - 1,022 - - 2,622 0.08 % Home equity lines of credit 398 - - - - 398 0.09 % Total residential loans 1,998 - 1,022 - - 3,020 0.08 % All other consumer - - 180 - - 180 0.03 % Total $ 39,059 $ 1,982 $ 1,202 $ 6,369 $ - $ 48,612 0.42 % Three Months Ended June 30, 2025 Term Extension Payment Delay Interest Rate Reduction Interest/Fees Forgiven Other Total % of Total Loan Category (dollars in thousands) Construction and development $ - $ - $ - $ - $ - $ - - % Commercial, financial & agricultural 945 148 3,216 - - 4,309 0.24 % Non-owner occupied CRE 189 - - - - 189 0.02 % Owner occupied CRE 617 423 - - - 1,040 0.07 % Total commercial real estate 806 423 - - - 1,229 0.03 % Residential mortgage loans 1,185 439 530 - - 2,154 0.07 % Home equity lines of credit 90 - - - - 90 0.02 % Total residential loans 1,275 439 530 - - 2,244 0.07 % All other consumer 396 - 149 - - 545 0.07 % Total $ 3,422 $ 1,010 $ 3,895 $ - $ - $ 8,327 0.07 % 48 Six Months Ended June 30, 2026 Term Extension Payment Delay Interest Rate Reduction Interest/Fees Forgiven Other Total % of Total Loan Category (dollars in thousands) Construction and development $ 6,632 $ - $ - $ - $ - $ 6,632 1.16 % Commercial, financial & agricultural 6,970 1,666 - - - 8,636 0.48 % Non-owner occupied CRE 22,149 885 - 6,369 - 29,403 0.90 % Owner occupied CRE 9,394 538 - - - 9,932 0.62 % Total commercial real estate 31,543 1,423 - 6,369 - 39,335 0.81 % Residential mortgage loans 4,024 - 1,522 - 257 5,803 0.17 % Home equity lines of credit 398 - - - - 398 0.09 % Total residential loans 4,422 - 1,522 - 257 6,201 0.16 % All other consumer 29 - 322 - - 351 0.06 % Total $ 49,596 3,089 1,844 6,369 257 61,155 0.52 % Six Months Ended June 30, 2025 Term Extension Payment Delay Interest Rate Reduction Interest/Fees Forgiven Other Total % of Total Loan Category (dollars in thousands) Construction and development $ 119 $ - $ - $ - $ - $ 119 0.02 % Commercial, financial & agricultural 1,054 148 3,222 184 - 4,608 0.26 % Non-owner occupied CRE 9,241 - - - - 9,241 0.40 % Owner occupied CRE 2,222 423 - 1,720 - 4,365 0.27 % Total commercial real estate 11,463 423 - 1,720 - 13,606 0.28 % Residential mortgage loans 2,372 714 1,772 50 - 4,908 0.17 % Home equity lines of credit 90 - - - - 90 0.02 % Total residential loans 2,462 714 1,772 50 - 4,998 0.15 % All other consumer 653 - 232 - - 885 0.12 % Total $ 15,751 1,285 5,226 1,954 - 24,216 0.21 % 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. If a loan to a borrower experiencing financial difficulty is modified and when 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. 49 The following tables summarize the financial impact of loan modifications and payment deferrals during the year ended June 30, 2026 and 2025. Six Months Ended June 30, 2026 Interest/Fees Forgiveness Weighted-Average Months of Deferred Payments Weighted-Average Months of Term Extensions Weighted-Average Interest Rate Reduction (dollars in thousands) Construction and development $ - 2 - % Commercial, financial & agricultural - 26 6 - Non-owner-occupied commercial real estate 13 113 4 - Owner-occupied commercial real estate - 29 11 - Residential real estate - 25 6.22 % Home equity lines of credit - 12 - All other consumer - 2 7.83 % Total $ 13 Six Months Ended June 30, 2025 Interest/Fees Forgiveness Weighted-Average Months of Deferred Payments Weighted-Average Months of Term Extensions Weighted-Average Interest Rate Reduction (dollars in thousands) Construction and development $ - - % Commercial, financial & agricultural - 24 7.67 % Non-owner-occupied commercial real estate - 24 - Owner-occupied commercial real estate 4 39 - Residential real estate 4 4 36 6.81 % Home equity lines of credit - - All other consumer - 4 7.20 % Total $ 8 The following table provides the amortized cost basis of loans to borrowers experiencing financial difficulty that had a payment default during the six months ended June 30, 2026 and 2025 and were modified within the 12 months preceding the payment default. For purposes of this disclosure, the Company considers “default” to mean 90 days or more past due as to interest or principal. Six Months Ended June 30, 2026 Term Extension Payment Delay Interest Rate Reduction Interest/Fees Forgiven Other Total % of Total Loan Category (dollars in thousands) Construction and development $ 117 $ - $ - $ - $ - $ 117 0.02 % Commercial, financial & agricultural 6 - - - - 6 0.00 % Non-owner-occupied CRE 1,453 - - - 6,069 7,522 0.23 % Owner occupied CRE - 827 - - - 827 0.05 % Total commercial real estate 1,453 827 - - 6,069 8,349 0.17 % Residential mortgage loans 64 - - - - 64 0.00 % Home equity lines of credit - - - - - - 0.00 % Total residential loans 64 64 0.00 % All other consumer 54 - 107 - - 162 0.03 % Total $ 1,695 $ 827 $ 107 $ - $ 6,069 $ 8,698 0.07 % 50 Six Months Ended June 30, 2025 Term Extension Payment Delay Interest Rate Reduction Interest/Fees Forgiven Other Total % of Total Loan Category (dollars in thousands) Construction and development $ 1,877 $ - $ - $ - $ - $ 1,877 0.24 % Commercial, financial & agricultural 70 - 187 - - 257 0.01 % Non-owner occupied CRE 3,598 438 - 5,663 - 9,699 0.42 % Owner occupied CRE 761 - - - - 761 0.05 % Total commercial real estate 4,359 438 - 5,663 - 10,460 0.22 % Residential mortgage loans 1,182 - - - - 1,182 0.04 % Home equity lines of credit - - - - - - 0.00 % Total residential loans 1,182 1,182 0.04 % All other consumer 280 - 154 - - 434 0.06 % Total $ 7,768 $ 438 $ 341 $ 5,663 $ - $ 14,210 0.13 % The following tables include the end of period balances by past due status and non-accrual performance for modifications to troubled borrowers modified in the previous twelve-month period by portfolio segment as of June 30, 2026 and 2025. June 30, 2026 Current 30-89 Days Past Due 90 Days Past Due Non-accrual Total (dollars in thousands) Construction and development $ 7,356 $ - $ - $ 191 $ 7,547 Commercial, financial & agricultural 929 501 - 7,967 9,397 Non-owner-occupied commercial real estate 20,931 1,386 - 13,154 35,471 Owner-occupied commercial real estate 12,079 - - 940 13,019 Total commercial real estate 33,010 1,386 - 14,094 48,490 Residential mortgage loans 3,266 144 - 5,172 8,582 Home equity lines of credit 398 - - - 398 Total residential loans 3,664 144 - 5,172 8,980 All other consumer 466 48 - 115 629 Total $ 45,425 $ 2,079 $ - $ 27,539 $ 75,043 June 30, 2025 Current 30-89 Days Past Due 90 Days Past Due Non-accrual Total (dollars in thousands) Construction and development $ 534 $ 119 $ - $ 1,735 $ 2,388 Commercial, financial & agricultural 10,749 - - 187 10,936 Non-owner-occupied commercial real estate 10,544 - - 11,221 21,765 Owner-occupied commercial real estate 7,273 - - 1,609 8,882 Total commercial real estate 17,817 - - 12,830 30,647 Residential mortgage loans 4,041 - - 5,821 9,862 Home equity lines of credit - - - - - Total residential loans 4,041 - - 5,821 9,862 All other consumer 2,508 196 81 154 2,939 Total $ 35,649 $ 315 $ 81 $ 20,727 $ 56,772 The Company had commitments of $ 1.4 million and $ 0.6 million at June 30, 2026 and December 31, 2025, respectively, to lend additional funds to borrowers experiencing financial difficulty and for whom the Company has modified the terms of loans. 51 (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 for the six months ended June 30, 2026 and 2025 aggregated $ 267.3 million and $ 173.7 million, respectively. Loans serviced for investors aggregated $ 4.6 billion and $ 4.6 billion at June 30, 2026 and June 30, 2025, respectively. Included in mortgage banking revenues in the accompanying consolidated statements of income for June 30, 2026 and 2025 are the following: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (dollars in thousands) Gains on sale of mortgage loans $ 6,826 $ 7,730 $ - $ 13,109 $ 13,260 Fees on real estate loans sold 607 517 - 1,149 906 Gains on interest rate lock commitments (IRLC) and associated hedging 365 10 - 234 ( 85 ) Servicing fees 2,817 2,882 - 5,659 5,785 Mortgage banking revenues, net $ 10,615 $ 11,139 $ - $ 20,151 $ 19,866 The following assumptions were used in determining the fair value of the capitalized mortgage servicing rights: Six Months Ended June 30, 2026 2025 Discount rate 9.16 % 9.16 % Prepayment speed 6.70 % 6.40 % Delinquency rate 1.00 % 0.91 % A summary of the mortgage servicing rights is as follows: Six Months Ended June 30, 2026 2025 (dollars in thousands) Balance at beginning of period $ 29,391 $ 30,423 Capitalized mortgage servicing rights 3,708 2,051 Amortization ( 3,125 ) ( 2,918 ) Change in valuation allowance - - Balance at end of period $ 29,974 $ 29,556 Amortization is recorded as other noninterest expense. The valuation allowance at each of June 30, 2026 and December 31, 2025 was $ 0 . (5) Goodwill and Intangible Assets Goodwill and core deposit intangible assets are summarized in the following table: June 30, 2026 December 31, 2025 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 $ ( 19,768 ) $ 730 $ 20,498 $ ( 18,304 ) $ 2,194 Trust customer intangible asset 6,100 ( 5,011 ) 1,088 6,100 ( 4,866 ) 1,233 Total amortizable intangible assets $ 26,598 $ ( 24,779 ) $ 1,818 $ 26,598 $ ( 23,170 ) $ 3,427 Goodwill: Commercial Banking segment $ 210,331 $ - $ 210,331 $ 210,331 $ - $ 210,331 Consumer Banking segment 126,095 - 126,095 126,095 - 126,095 Wealth segment 11,811 - 11,811 11,811 - 11,811 Total goodwill $ 348,237 $ - $ 348,237 $ 348,237 $ - $ 348,237 52 (6) Customer Repurchase Agreements Customer repurchase agreements are short-term borrowings that generally have one day maturities. The table below shows the remaining contractual maturities of repurchase agreements outstanding at June 30, 2026 and December 31, 2025, in addition to the various types of marketable securities that have been pledged as collateral for these borrowings. June 30, 2026 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 $ 38,206 $ - $ - $ 38,206 Government-sponsored enterprise obligations 2,324 - - 2,324 Mortgage-backed securities 793,836 - - 793,836 Total repurchase agreements, gross amount recognized $ 834,366 $ - $ - $ 834,366 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 (7) Stock-Based Compensation The Company provides stock-based compensation to key employees in the form of restricted stock awards (RSAs) and, beginning in March 2026, restricted stock units (RSUs). The Company's stock-based compensation plans are designed to attract, retain, and reward employees while aligning the interests 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 following represents a summary of changes in the Company's nonvested restricted stock shares as of June 30, 2026. Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2026 602,300 $ 13.31 Granted 245,953 24.56 Vested ( 171,600 ) 13.28 Forfeited ( 5,239 ) 14.34 Nonvested at June 30, 2026 671,414 $ 17.43 The total stock-based compensation expense recognized for restricted stock awards and restricted stock units was $ 1.5 million and $ 0.7 million in the three months ended June 30, 2026 and 2025, respectively, and $ 2.5 million and $ 1.6 million in the six months ended June 30, 2026 and 2025, respectively. This expense is calculated on the graded-vesting method and is included in salaries and employee benefits. Additionally, the Company adopted an employee stock purchase program in May 2026 (the "2026 ESPP") that allows eligible employees to purchase shares of the Company's Class A common stock at periodic intervals using accumulated payroll deductions. As of June 30, 2026, there were 1,200,000 shares authorized under the 2026 ESPP. As of June 30, 2026, the first offering under the 2026 ESPP had not commenced. 53 (8) Earnings Per Common Share Basic earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period presented, excluding nonvested restricted stock. Diluted earnings per common share is calculated by dividing net income by the weighted average number of common shares determined for the basic earnings per share computation plus the dilutive effects of stock-based compensation. The income per share attributable to common stock for the three and six months ended June 30, 2026 and June 30, 2025 is shown in the following table. For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 (dollars in thousands, except in per share data) Basic income per share: Net income attributable to Central Bancompany, Inc. $ 113,773 $ 91,365 $ 224,860 $ 186,163 Less: Dividends declared on forfeitable nonvested restricted stock 81 518 153 545 Net income allocated to common stock $ 113,692 $ 90,847 $ 224,707 $ 185,618 Weighted average common shares outstanding 239,264 220,059 239,787 220,004 Basic income per common share $ 0.48 $ 0.41 $ 0.94 $ 0.84 Diluted income per common share: Net income attributable to Central Bancompany, Inc. $ 113,773 $ 91,365 $ 224,860 $ 186,163 Less: Dividends declared on forfeitable nonvested restricted stock 81 518 153 545 Net income allocated to common stock $ 113,692 $ 90,847 $ 224,707 $ 185,618 Weighted average diluted common shares outstanding 239,679 220,059 240,187 220,004 Diluted income per common share: $ 0.47 $ 0.41 $ 0.94 $ 0.84 (9) 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 to, 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 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 primary markets are located within the states of Missouri, Kansas, Oklahoma, and Colorado and the Company's loan portfolio has no unusual geographic concentrations of credit risk beyond its market areas. 54 Such commitments and conditional obligations were as follows as of the dates presented. Contractual Amount June 30, 2026 December 31, 2025 (dollars in thousands) Off Balance Sheet Commitments Loan Commitments $ 3,042,983 $ 2,952,732 Standby Letters of Credit 83,388 80,060 Commercial Letters of Credit 2,019 2,703 Credit Derivatives 39,817 19,224 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. (10) 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. The valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis are described in Note 16, “Fair Value Disclosures” to the Company's 2025 Annual Report on Form 10-K. There have been no significant changes in these methodologies since then. 55 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 June 30, 2026 and December 31, 2025. There were no transfers among levels during the first six months ended June 30, 2026 or the year ended December 31, 2025. Fair Value June 30, 2026 Fair value measurements at report date using 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 $ 27,751 $ - $ 27,751 $ - Available for sale investment securities: U.S. government obligations and government-sponsored enterprises 6,997,928 1,201,915 5,796,013 - Obligations of states and political subdivisions 14,312 - 14,312 - Other securities 4,410 1,106 3,304 - Equity investments 53,898 2,833 39,477 11,588 Derivatives 7,122 - 7,122 - Total assets $ 7,105,422 $ 1,205,855 $ 5,887,979 $ 11,588 Liabilities: Derivatives $ 5,958 $ - $ 5,958 $ - Total liabilities $ 5,958 $ - $ 5,958 $ - Fair value measurements at report date using Fair Value December 31, 2025 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 $ - 56 The following table provides the assets measured at fair value on a nonrecurring basis during the first six months of 2026 and 2025, and still held as of June 30, 2026 and 2025. Fair value measurements at report date using Fair Value June 30, 2026 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 $ 31,450 $ - $ - $ 31,450 Mortgage servicing rights 63,405 - - 63,405 Total assets $ 94,855 $ - $ - $ 94,855 Fair value measurements at report date using Fair Value June 30, 2025 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 $ 23,560 $ - $ - $ 23,560 Mortgage servicing rights 61,299 - - 61,299 Total assets $ 84,859 $ - $ - $ 84,859 Fair Value of Financial Instruments Fair value estimates are made at a specific point in time based on relevant market information. They 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 many of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, risk characteristics and economic conditions. These estimates are subjective, involve uncertainties, and cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The estimated fair values of the Company's financial assets and the classification of their fair value measurement within the valuation hierarchy are as follows at June 30, 2026 and December 31, 2025: June 30, 2026 Carrying amount Estimated Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial Assets: Cash and due from banks $ 244,257 $ 244,257 $ - $ - Short-term interest-bearing deposits 524,595 524,595 - - Interest-bearing deposits 450 450 - - Investment securities Available for sale 7,016,650 1,203,022 5,813,628 - Held to maturity 1,526 - 1,542 - Equity 53,898 2,833 39,477 11,588 Net loans held for investment 11,523,199 - - 11,491,904 Loans held for sale 27,751 - 27,751 - Derivatives 7,122 - 7,122 - Total assets $ 19,399,448 $ 1,975,157 $ 5,889,520 $ 11,503,492 57 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 1,805,555 1,805,555 - - Interest-bearing deposits 1,039 - - 1,039 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 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 The estimated fair values of the Company's financial liabilities and the classification of their fair value measurement within the valuation hierarchy are as follows at June 30, 2026 and December 31, 2025: June 30, 2026 Carrying amount Estimated Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial Liabilities Federal funds purchased and customer repurchase agreements $ 913,127 $ 913,127 $ - $ - Accrued interest payable 8,214 8,214 - - Derivatives 5,958 - 5,958 - 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 - (11) Business Segment Reporting The Company's reportable segments are determined by its Chief Executive Officer, who is the designated Chief Operating Decision Maker (“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 inform resource allocation decisions, the CODM regularly reviews each segment’s revenues and net income compared to budget. 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. 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 58 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 159 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. 59 Segment Financial Information The following table presents selected financial information by segment and reconciliations of combined segment totals to consolidated totals. Consumer Commercial Wealth Management Corp / Other Total (dollars in thousands) Three Months Ended June 30, 2026 Net interest income $ 84,330 $ 112,984 $ ( 34 ) $ 15,504 $ 212,784 Provision for (recovery of) credit losses 2,826 717 - ( 8 ) 3,535 Net interest income after provision for credit losses 81,504 112,267 ( 34 ) 15,512 209,249 Noninterest income 32,900 11,536 22,107 3,012 69,555 Noninterest expense 63,829 41,032 14,089 12,404 131,354 Income before income taxes 50,575 82,771 7,984 6,120 147,450 Income taxes 12,106 19,159 1,919 493 33,677 Net income $ 38,469 $ 63,612 $ 6,065 $ 5,627 $ 113,773 Assets under advice $ - $ - $ 17,273,398 $ - $ 17,273,398 Three Months Ended June 30, 2025 Net interest income $ 78,867 $ 107,830 $ ( 23 ) $ 8,383 $ 195,057 Provision for (recovery of) credit losses ( 1,755 ) 411 ( 1 ) 1,338 ( 7 ) Net interest income after provision for credit losses 80,622 107,419 ( 22 ) 7,045 195,064 Noninterest income 18,534 10,843 18,418 2,270 50,065 Noninterest expense 61,698 38,757 12,691 13,624 126,770 Income before income taxes 37,458 79,505 5,705 ( 4,309 ) 118,359 Income taxes 8,972 18,439 1,374 ( 1,791 ) 26,994 Net income $ 28,486 $ 61,066 $ 4,331 $ ( 2,518 ) $ 91,365 Assets under advice $ - $ - $ 14,245,820 $ - $ 14,245,820 60 Consumer Commercial Wealth Management Corp / Other Total Dollars in thousands Six Months Ended June 30, 2026 Net interest income $ 165,601 $ 226,027 $ ( 49 ) $ 29,822 $ 421,401 Provision for credit losses 5,019 1,649 - 13 6,681 Net interest income after provision for credit losses 160,582 224,378 ( 49 ) 29,809 414,720 Noninterest income 64,933 22,268 43,441 4,001 134,643 Noninterest expense 126,823 80,655 27,534 22,959 257,971 Income before income taxes 98,692 165,991 15,858 10,851 291,392 Income taxes 23,635 38,433 3,813 651 66,532 Net income $ 75,057 $ 127,558 $ 12,045 $ 10,200 $ 224,860 Assets under advice $ - $ - $ 17,273,398 $ - $ 17,273,398 Six Months Ended June 30, 2025 Net interest income $ 154,048 $ 214,120 $ ( 43 ) $ 16,205 $ 384,330 Provision for (recovery of ) credit losses 130 1,442 ( 4 ) 1,345 2,913 Net interest income after provision for credit losses 153,918 212,678 ( 39 ) 14,860 381,417 Noninterest income 47,028 21,220 36,837 3,769 108,854 Noninterest expense 121,604 78,127 25,220 24,080 249,031 Income before income taxes 79,342 155,771 11,578 ( 5,451 ) 241,240 Income taxes 18,998 36,052 2,780 ( 2,753 ) 55,077 Net income $ 60,344 $ 119,719 $ 8,798 $ ( 2,698 ) $ 186,163 Assets under advice $ - $ - $ 14,245,820 $ - $ 14,245,820 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 with an offset in Corp/Other noninterest expense. 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. 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. 61 (12) Employee Benefit Plans The amount of net pension cost is shown in the table below for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (dollars in thousands) (dollars in thousands) Service Cost $ - $ - $ - $ - Interest Cost 1,388 1,382 2,776 2,764 Expected Return on Assets ( 1,631 ) ( 1,592 ) ( 3,262 ) ( 3,183 ) Net Amortization - - - - Net periodic pension cost $ ( 243 ) $ ( 210 ) $ ( 486 ) $ ( 419 ) All benefits accrued under the Company’s defined benefit pension plan have been frozen since December 31, 2018. During the first six months of 2026, the Company made no funding contributions to its defined benefit pension plan and made minimal funding contributions to a supplemental executive retirement plan (the SERP), which carries no segregated assets. During the second quarter of 2026, the Company continued the termination process for its defined benefit pension plan, which began in the first quarter of 2026. Benefit elections are expected to be completed by the end of August 2026. The Company expects to satisfy the plan's obligations through a combination of lump-sum distributions to eligible participants and the purchase of group annuity contracts from a third-party insurer, both expected in the fourth quarter of 2026. Based on the current status of the plan, the Company expects to recognize a modest settlement gain upon completion of the termination. Any settlement gain will include the recognition of unamortized actuarial gains or losses currently recorded in accumulated other comprehensive income. The plan is currently in a surplus position, and the Company expects that excess plan assets remaining after satisfaction of all benefit obligations will be used to fund nonelective contributions to its defined contribution 401(k) plan or for other qualified purposes over a period of up to seven years . The Company is continuing to evaluate the financial impact of the plan termination, and no settlement gains or other termination‑related impacts have been recognized in the accompanying consolidated financial statements for the quarter ended June 30, 2026. The Company does not expect the termination to have a material adverse impact on its liquidity, capital, or results of operations. 62 Item 3. Quantitative and Qualitative Disclosures About Market Risk For additional information, see Part1, Item2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Market Risk” in this Quarterly Report on Form 10‑Q. Item 4. Controls and Procedures Evaluation of Disclosure Controls and Procedures Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), as of the end of this period covered by this report. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures were effective to provide reasonable assurance that the information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to Company’s management, including its Chief Executive Officer and its Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Changes in Internal Control Over Financial Reporting There have not been any changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the fiscal quarter ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. 63 PART II - OTHER INFORMATION Item 1. Legal Proceedings The Company and its subsidiaries are defendants in various claims, legal actions and complaints arising in the ordinary course of business. We are not currently party to any legal or regulatory proceedings the resolution of which we believe would have a material adverse effect on our business, results of operation, or financial condition. See Note 9, “Commitments, Contingencies, and Guarantees” to our consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further information regarding our legal and regulatory proceedings. Item 1A. Risk Factors There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The following table presents information regarding issuer purchases of equity securities during the second quarter of 2026. Period Total Number Of Shares Purchased Average Price Paid Per Share Total Number Of Shares Purchased As Part Of Publicly Announced Plans Or Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs April 1 - April 30, 2026 18,880 $ 24.75 18,880 $ 18,389,778 May 1 - May 30, 2026 103,145 26.80 103,145 15,625,036 June 1 - June 30, 2026 157,834 27.63 157,834 11,263,729 Total 279,859 $ 27.13 279,859 On February 4, 2026, the Board of Directors approved the 2026 Repurchase Program, authorizing the repurchase of up to $50.0 million of the Company's Class A common stock. The 2026 Repurchase Program replaced and superseded the Company's prior share repurchase authorization. On August 3, 2026, the Board of Directors terminated the 2026 Repurchase Program and approved the Second Repurchase Plan, authorizing the repurchase of up to $100.0 million of the Company's Class A common stock. The Company has not made any repurchases during the quarter other than through the 2026 Repurchase Plan. All share purchases pursuant to the 2026 Repurchase Plan are intended to be within the scope of Rule 10b-18 promulgated under the Exchange Act. Rule 10b-18 provides a safe harbor for certain purchases if the Company satisfies the manner, timing, price and volume conditions of the rule when purchasing its own shares of common stock. Item 3. Defaults upon Senior Securities None. Item 4. Mine Safety Disclosures Not applicable. Item 5. Other Information During the three months ended June 30, 2026, none of the officers or directors of the Company have adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c ) or any "non-Rule 10b5-1" trading arrangement. 64 Item 6. Exhibits (a) Exhibits: See the Exhibit Index immediately preceding the signature pages hereto, which is incorporated by reference as if fully set forth herein. EXHIBIT INDEX Number Description 1 0 .1 Central Bancompany, Inc. 2026 Employee Stock Purchase Plan 31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 31.2 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 32.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 32.2 Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 101.INS ** XBRL Instance Document - the instance document does not appear in the interactive data file because the XBRL tags are embedded within the Inline XBRL document 101.SCH ** XBRL Taxonomy Extension Schema Document 101.CAL ** XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF ** XBRL Taxonomy Extension Definition Linkbase Document 101.LAB ** XBRL Taxonomy Extension Label Linkbase Document 101.PRE ** XBRL Taxonomy Extension Presentation Linkbase Document 104 ** Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) ** Furnished herewith, not filed 65 SIGNATURES Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CENTRAL BANCOMPANY, INC. Date: August 14, 2026 By: /s/ James K. Ciroli Name: James K. Ciroli Title: Chief Financial Officer (Principal Financial Officer and Authorized Officer) 66