Citizens Community Bancorp Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS 4 CITIZENS COMMUNITY BANCORP, INC. Consolidated Balance Sheets June 30, 2026 (unaudited) and December 31, 2025 (derived from audited financial statements) (in thousands, except share data) June 30, 2026 December 31, 2025 Assets Cash and cash equivalents $ 121,762 $ 118,853 Available-for-sale ("AFS") securities, at fair value (amortized cost of $ 145,282 , net of allowance for credit losses of $ 0 at June 30, 2026 and amortized cost of $ 151,618 , net of allowance for credit losses of $ 0 at December 31, 2025) 128,435 134,103 Held-to-maturity ("HTM") securities, at amortized cost (fair value of $ 61,481 , net of allowance for credit losses of $ 0 at June 30, 2026 and fair value of $ 64,117 , net of allowance for credit losses of $ 0 at December 31, 2025) 77,415 80,210 Equity investments 6,287 5,840 Other investments 12,485 12,506 Loans receivable 1,382,975 1,340,325 Allowance for credit losses ( 25,899 ) ( 22,401 ) Loans receivable, net 1,357,076 1,317,924 Loans held for sale 941 4,954 Mortgage servicing rights, net 3,453 3,494 Office properties and equipment, net 17,441 16,357 Accrued interest receivable 6,180 6,126 Intangible assets 169 395 Goodwill 31,498 31,498 Foreclosed and repossessed assets, net 850 857 Bank owned life insurance ("BOLI") 27,342 26,908 Other assets 22,975 21,730 TOTAL ASSETS $ 1,814,309 $ 1,781,755 Liabilities and Stockholders’ Equity Liabilities: Deposits $ 1,554,417 $ 1,524,099 Federal Home Loan Bank (“FHLB”) advances — — Other borrowings 51,885 51,804 Other liabilities 16,659 17,913 Total liabilities 1,622,961 1,593,816 Stockholders’ Equity: Common stock—$ 0.01 par value, authorized 30,000,000 ; 9,650,231 and 9,617,245 shares issued and outstanding, respectively 97 96 Additional paid-in capital 110,454 110,315 Retained earnings 92,820 89,995 Accumulated other comprehensive loss ( 12,023 ) ( 12,467 ) Total stockholders’ equity 191,348 187,939 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,814,309 $ 1,781,755 See accompanying condensed notes to unaudited consolidated financial statements. 5 CITIZENS COMMUNITY BANCORP, INC. Consolidated Statements of Operations (unaudited) Three and Six Months Ended June 30, 2026 and 2025 (in thousands, except per share data) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Interest and dividend income: Interest and fees on loans $ 19,322 $ 20,105 $ 38,091 $ 38,707 Interest on cash and investments 2,712 2,397 5,459 4,898 Total interest and dividend income 22,034 22,502 43,550 43,605 Interest expense: Interest on deposits 7,819 8,287 15,610 16,884 Interest on FHLB and FRB borrowed funds 1 1 1 12 Interest on other borrowed funds 710 903 1,425 1,804 Total interest expense 8,530 9,191 17,036 18,700 Net interest income before provision for credit losses 13,504 13,311 26,514 24,905 Provision for credit losses 4,325 1,350 5,075 1,100 Net interest income after provision for credit losses 9,179 11,961 21,439 23,805 Non-interest income: Service charges on deposit accounts 460 432 920 855 Interchange income 556 564 1,057 1,082 Loan servicing income 593 565 1,254 1,124 Gain on sale of loans 442 699 1,463 1,419 Loan fees and service charges 129 237 267 357 Net gains on equity securities 160 99 101 109 Other 267 240 644 483 Total non-interest income 2,607 2,836 5,706 5,429 Non-interest expense: Compensation and related benefits 5,712 6,008 11,778 11,605 Occupancy 1,240 1,196 2,518 2,483 Data processing 1,302 1,753 2,719 3,472 Amortization of intangible assets 113 179 226 358 Mortgage servicing rights expense, net 173 148 334 288 Advertising, marketing and public relations 207 194 433 361 FDIC premium assessment 200 191 431 389 Professional services 514 432 1,119 940 (Gains) losses on repossessed assets, net ( 12 ) — ( 12 ) 4 Other 1,100 649 1,730 1,313 Total non-interest expense 10,549 10,750 21,276 21,213 Income before provision for income taxes 1,237 4,047 5,869 8,021 Provision for income taxes 135 777 1,012 1,554 Net income attributable to common stockholders $ 1,102 $ 3,270 $ 4,857 $ 6,467 Per share information: Basic earnings $ 0.11 $ 0.33 $ 0.50 $ 0.65 Diluted earnings $ 0.11 $ 0.33 $ 0.50 $ 0.65 Cash dividends paid $ 0.105 $ — $ 0.21 $ 0.36 See accompanying condensed notes to unaudited consolidated financial statements. 6 CITIZENS COMMUNITY BANCORP, INC. Consolidated Statements of Comprehensive Income (unaudited) Three and Six months ended June 30, 2026 and 2025 (in thousands) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Net income attributable to common stockholders $ 1,102 $ 3,270 $ 4,857 $ 6,467 Other comprehensive income, net of tax: Securities available-for-sale Net unrealized gains arising during period, net of tax 215 81 444 1,536 Other comprehensive income, net of tax 215 81 444 1,536 Comprehensive income $ 1,317 $ 3,351 $ 5,301 $ 8,003 See accompanying condensed notes to unaudited consolidated financial statements. 7 CITIZENS COMMUNITY BANCORP, INC. Consolidated Statement of Changes in Stockholders’ Equity (unaudited) Six Months Ended June 30, 2026 (in thousands, except shares and per share data) Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (loss) Total Stockholders’ Equity Common Stock Shares Amount Balance, December 31, 2025 9,617,245 $ 96 $ 110,315 $ 89,995 $ ( 12,467 ) $ 187,939 Net income — — — 3,755 — 3,755 Other comprehensive income, net of tax — — — — 229 229 Surrender of restricted shares of common stock to satisfy the withholding taxes due upon vesting ( 4,813 ) — ( 89 ) — — ( 89 ) Restricted common stock issued upon achievement of the 2023 performance criteria 11,180 — — — — — Common stock options exercised 5,000 — 47 — — 47 Stock based compensation expense — — 4 — — 4 Quarterly cash dividends ($ 0.105 per share) — — — ( 1,011 ) — ( 1,011 ) Balance at March 31, 2026 9,628,612 96 110,277 92,739 ( 12,238 ) 190,874 Net income — — — 1,102 — 1,102 Other comprehensive income, net of tax — — — — 215 215 Common stock awarded under the equity incentive plan 6,500 — — — — — Common stock options exercised 16,000 1 179 — — 180 Common stock repurchased ( 881 ) — ( 10 ) ( 8 ) — ( 18 ) Stock based compensation expense — — 8 — — 8 Cash dividends ($ 0.105 per share) — — — ( 1,013 ) — ( 1,013 ) Balance at June 30, 2026 9,650,231 $ 97 $ 110,454 $ 92,820 $ ( 12,023 ) $ 191,348 See accompanying condensed notes to unaudited consolidated financial statements. 8 CITIZENS COMMUNITY BANCORP, INC. Consolidated Statement of Changes in Stockholders’ Equity (unaudited) Twelve Months Ended December 31, 2025 (in thousands, except shares and per share data) Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Stockholders’ Equity Common Stock Shares Amount Balance, December 31, 2024 9,981,996 $ 100 $ 114,564 $ 80,840 $ ( 16,420 ) $ 179,084 Net income — — — 3,197 — 3,197 Other comprehensive income, net of tax — — — — 1,455 1,455 Surrender of restricted shares of common stock to satisfy the withholding taxes due upon vesting ( 11,481 ) — ( 183 ) — — ( 183 ) Restricted stock issued upon achievement of the 2022 performance criteria 16,021 — — — — — Common stock options exercised 3,000 — 28 — — 28 Stock based compensation expense — — 68 — — 68 Cash dividends ($ 0.36 per share) — — — ( 3,598 ) — ( 3,598 ) Balance at March 31, 2025 9,989,536 100 114,477 80,439 ( 14,965 ) 180,051 Net income — — — 3,270 — 3,270 Other comprehensive income, net of tax — — — — 81 81 Surrender of restricted shares of common stock to satisfy the withholding taxes due upon vesting ( 539 ) — ( 7 ) — — ( 7 ) Common stock options exercised 3,000 — 33 — — 33 Stock based compensation expense — — 34 — — 34 Balance at June 30, 2025 9,991,997 100 114,537 83,709 ( 14,884 ) 183,462 Net income — — — 3,682 — 3,682 Other comprehensive income, net of tax — — — — 1,657 1,657 Common stock repurchased ( 135,252 ) ( 1 ) ( 1,540 ) ( 478 ) — ( 2,019 ) Stock based compensation expense — — 33 — — 33 Balance, September 30, 2025 9,856,745 99 113,030 86,913 ( 13,227 ) 186,815 Net income — — — 4,271 — 4,271 Other comprehensive income, net of tax — — — — 760 760 Common stock options exercised 10,500 — 118 — — 118 Common stock repurchased ( 250,000 ) ( 3 ) ( 2,844 ) ( 1,189 ) — ( 4,036 ) Stock based compensation expense — — 11 — — 11 Balance, December 31, 2025 9,617,245 $ 96 $ 110,315 $ 89,995 $ ( 12,467 ) $ 187,939 See accompanying condensed notes to unaudited consolidated financial statements. 9 CITIZENS COMMUNITY BANCORP, INC. Consolidated Statements of Cash Flows (unaudited) Six Months Ended June 30, 2026 and 2025 (in thousands) Six Months Ended June 30, 2026 June 30, 2025 Cash flows from operating activities: Net income attributable to common stockholders $ 4,857 $ 6,467 Adjustments to reconcile net income to net cash provided by operating activities: Net accretion on debt securities ( 52 ) ( 18 ) Depreciation expense 961 1,044 Provision for credit losses 5,075 1,100 Net gains on equity securities ( 101 ) ( 109 ) Increase in mortgage servicing rights resulting from transfers of financial assets ( 293 ) ( 173 ) Mortgage servicing rights amortization 334 288 Amortization of intangible assets 226 358 Stock based compensation expense 12 102 Increase in deferred income taxes ( 562 ) ( 152 ) Increase in cash surrender value of life insurance ( 434 ) ( 392 ) Net gain from disposals of foreclosed and repossessed assets ( 12 ) ( 11 ) Provision for valuation allowance on foreclosed properties — 15 Gain on sale of loans held for sale, net ( 1,463 ) ( 1,419 ) Proceeds from sale of loans held for sale 42,922 37,074 Originations of loans held for sale ( 37,446 ) ( 40,389 ) Amortization of debt issuance costs 81 116 Net change in: Accrued interest receivable and other assets ( 961 ) 423 Other liabilities ( 1,254 ) ( 3,117 ) Total adjustments 7,033 ( 5,260 ) Net cash from operating activities 11,890 1,207 Cash flows from investing activities: Purchase of available-for-sale securities ( 4,309 ) ( 1,948 ) Proceeds from principal payments and maturities of available-for-sale securities 7,581 8,874 Proceeds from calls of available-for-sale securities 3,123 3,200 Proceeds from principal payments and maturities of held-to-maturity securities 2,788 2,468 Equity investment capital distribution 78 — Purchase of equity investments ( 424 ) ( 930 ) Net sales of other investments 21 121 Proceeds from sales of foreclosed and repossessed assets 19 43 Net (increase) decrease in loans ( 44,227 ) 23,032 Net capital expenditures ( 2,045 ) ( 326 ) Net cash from investing activities ( 37,395 ) 34,534 Cash flows from financing activities: Federal Home Loan Bank advance long-term maturities — ( 5,000 ) Net increase in deposits 30,318 ( 9,732 ) Repurchase shares of common stock ( 18 ) — Surrender of restricted shares of common stock ( 89 ) ( 190 ) Common stock options exercised 227 61 Cash dividends paid ( 2,024 ) ( 3,598 ) Net cash from financing activities 28,414 ( 18,459 ) Net increase in cash and cash equivalents 2,909 17,282 Cash and cash equivalents at beginning of period 118,853 50,172 Cash and cash equivalents at end of period $ 121,762 $ 67,454 10 Six Months Ended June 30, 2026 June 30, 2025 Supplemental cash flow information: Cash paid during the period for: Interest on deposits $ 16,157 $ 15,493 Interest on borrowings $ 1,434 $ 1,687 Income taxes $ 110 $ 1,093 Supplemental noncash disclosure: Transfers from loans receivable to other real estate owned ("OREO") $ — $ — See accompanying condensed notes to unaudited consolidated financial statements. 11 CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except share and per share data) (UNAUDITED) NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements of CCFBank N.A. (the “Bank”) included herein have been included by its parent company, Citizens Community Bancorp, Inc. (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. As used in this quarterly report, the terms “we”, “us”, “our”, and “Citizens Community Bancorp, Inc.” mean the Company and its wholly owned subsidiary, the Bank, unless the context indicates other meaning. The Bank is a national banking association (a “National Bank”) and operates under the title of CCFBank National Association (“CCFBank N.A.” or “Bank”). The Company is a bank holding company, supervised by the Federal Reserve Bank of Minneapolis (the “FRB”), and operates under the title of Citizens Community Bancorp, Inc. The Office of the Comptroller of the Currency (the “OCC”) is the primary federal regulator for the Bank. The consolidated income of the Company is principally derived from the income of the Bank, the Company’s wholly owned subsidiary, serving customers primarily in Wisconsin and Minnesota through 21 branch locations. Its primary markets include the Chippewa Valley Region in Wisconsin, the Mankato and Twin Cities markets in Minnesota, and various rural communities around these areas. The Bank offers traditional community banking services to businesses, agricultural operators and consumers, including one-to-four family residential mortgages. The Bank is subject to competition from other financial institutions and non-financial institutions providing financial products. Additionally, the Bank is subject to the regulations of certain regulatory agencies and undergoes periodic examination by those regulatory agencies. In preparing these consolidated financial statements, we evaluated the events and transactions that occurred subsequent to the balance sheet date of June 30, 2026, through the date on which the consolidated financial statements were available to be issued on August 6, 2026, for items that should potentially be recognized or disclosed in these consolidated financial statements. The accompanying consolidated interim financial statements are unaudited. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Unless otherwise stated herein, and except for shares and per share amounts, all amounts are in thousands. Principles of Consolidation – The accompanying consolidated financial statements include the accounts of the Company and the Bank. All significant intercompany accounts and transactions have been eliminated. Use of Estimates –Preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, fair value of financial instruments, the allowance for credit losses, mortgage servicing rights, foreclosed and repossessed assets, valuation of intangible assets arising from acquisitions, useful lives for depreciation and amortization, valuation of goodwill and long-lived assets, stock based compensation, deferred tax assets, uncertain income tax positions and contingencies. Management does not anticipate any material changes to estimates made herein in the near term. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: those items described under the caption “Risk Factors” in Item 1A of the annual report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 5, 2026 and Item 1A in Part II of this report; the matters described in Forward-Looking Statements in Part 1, Item 2 of this Form 10-Q; and external market factors such as market interest rates and unemployment rates; changes to operating policies and procedures, and changes in applicable banking regulations. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period. Cash and Cash Equivalents— For purposes of reporting cash flows in the consolidated financial statements, cash and cash equivalents include cash, due from banks, and interest bearing deposits with original maturities of three months or less. 12 Investment Securities; Available-for-sale and Held-to-maturity – Management determines the appropriate classification of investment securities at the time of purchase and reevaluates such designation as of the date of each balance sheet. Securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost. Investment securities not classified as held-to-maturity are classified as available-for-sale. Available-for-sale securities are stated at fair value, with unrealized holding gains and losses being reported in other comprehensive income (loss), net of tax. Realized gains or losses on sales of available-for-sale securities are calculated with the specific identification method and are included in the consolidated statements of operations under net gains on investment securities. Interest income includes amortization of purchase premium or accretion of purchase discount. Amortization of premiums and accretion of discounts are recognized in interest income using the interest method over the estimated lives of the securities. Allowance for Credit Losses – Available-for-sale Securities - The Company measures the allowance for credit losses on available-for-sale debt securities by evaluating securities in an unrealized loss position using a two-step process. First, the Company assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost. If it is determined that the Company intends or will be required to sell the security, it is written down to its fair value as net gains or losses on investment securities in our consolidated statement of operations. For agency mortgage-backed and asset-backed securities that do not meet the criteria in step one, there are no expected credit losses as they are guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. For other debt securities that do not meet the criteria in step one, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and the allowance for credit losses on available-for-sale investments is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Allowance for Credit Losses – Held-to-maturity Securities - The Company measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. For agency mortgage-backed securities there are no expected credit losses as they are guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. For other securities, the estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company has elected to not measure an ACL on accrued interest on available-for-sale and held-to-maturity securities, as it would write off accrued interest in a timely manner if the related security was determined to have a credit loss. Accrued interest receivable on available-for-sale and held-to-maturity securities was $ 862 and $ 924 at June 30, 2026 and December 31, 2025, respectively. The Company has no available-for-sale securities or held-to-maturity securities which it deems to have a credit loss at June 30, 2026 and December 31, 2025. Equity investments - The Company is required to maintain an investment in Federal Agricultural Mortgage Corporation (“Farmer Mac”) equity securities. Farmer Mac equity securities are carried at their fair market value, which is readily determinable. Changes in fair value are recognized as net gains or losses on investment securities in our consolidated statement of operations. Included in equity investments are preferred shares of a community development financial institution, which are carried at their fair market value. As no ready market exists for this investment, the Company utilizes significant unobservable inputs (Level 3 inputs) to determine fair value. We record the unrealized gains and losses resulting from changes in the fair value of this investment as net gains or losses on investment securities in our consolidated statements of operations. Also included in equity investments are the Company’s investments in a Volcker Rule-compliant Small Business Investment Company ("SBIC") and an investment fund. The SBIC and investment fund meet the definition of investment companies, as defined in ASC 946, Financial Services - Investment Companies. These investments seek returns by investing in various small businesses and do not have redemption rights. Distributions from the investments will be received as the underlying investments, which generally have a life of 10 years, are liquidated or earlier distributions are made. We elected the practical expedient available in Topic 820, Fair Value Measurements, which permits the use of net asset value ("NAV") per share or equivalent to value investments in entities that are or are similar to investment companies. SBICs and investment funds report their investments at estimated fair value. We record the unrealized gains and losses resulting from changes in the fair value of these investments as net gains or losses on equity securities in our consolidated statements of operations. The carrying value of these investments is equal to the capital account balance as provided by the investee and adjusted as necessary. 13 Other Investments - As a member of the Federal Reserve Bank (“FRB”) System and the Federal Home Loan Bank (“FHLB”) System, the Bank is required to maintain an investment in the capital stock of these entities. These securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other exchange traded equity securities. As no ready market exists for these stocks, and they have no quoted market value, these investments are carried at cost and periodically evaluated for impairment based on the ultimate recovery of par value. Cash dividends are reported as interest on investments in the consolidated statements of operations. Also included in other investments is stock of our correspondent bank, Bankers’ Bank, without readily determinable fair value. This stock is carried at cost plus or minus changes resulting from observable price changes in orderly transactions for this stock, less impairment charges, if any. Management’s evaluation for impairment of these other investments, includes consideration of the financial condition and other available relevant information of the issuer. Based on management’s quarterly evaluation, no impairment has been recorded on these securities. Other investments totaling $ 12,485 at June 30, 2026, consisted of $ 3,696 of FHLB stock, $ 5,726 of Federal Reserve Bank stock and $ 3,063 of Bankers’ Bank stock. Other investments totaling $ 12,506 at December 31, 2025, consisted of $ 3,717 of FHLB stock and $ 5,726 of Federal Reserve Bank stock and $ 3,063 of Bankers’ Bank stock. Loans Receivable – Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs. Interest income is accrued on the unpaid principal balance of these loans and is presented as a separate line item on the consolidated balance sheets. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the interest method over the contractual life of the loan with no prepayments assumed. If the loan is prepaid, any unamortized net fee is recognized at this time. Late charge fees are recognized into income when collected. Interest income on commercial, mortgage and consumer loans is discontinued according to the following schedules: • Commercial/agricultural real estate loans past due 90 days or more; • Commercial and industrial/agricultural operating loans past due 90 days or more; • Closed end consumer installment loans past due 120 days or more; and • Residential mortgage loans and open ended consumer installment loans past due 180 days or more. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for a loan placed on nonaccrual status is reversed against interest income. Interest received on such loans is accounted for on the cash basis or cost recovery method until qualifying for return to accrual status. Loans are returned to accrual status when the collectability of principal and interest is probable including when payments are made that bring the loan account current with the contractual term of the loan and a six month payment history has been established. Residential mortgage loans and open ended consumer installment loans are either charged off or a specific reserve is established to estimated net realizable value less estimated selling costs at the earlier of when (a) the loan is deemed by management to be uncollectible, or (b) the loan becomes past due 180 days or more. Closed ended consumer installment loans are charged off to net realizable value at the earlier of when (a) the loan is deemed by management to be uncollectible, or (b) the loan becomes past due 120 days or more. Commercial/agricultural real estate, commercial and industrial and agricultural operating loans are charged off to net realizable value at the earlier of when (a) the loan is deemed by management to be uncollectible, or (b) the loan becomes past due 90 days or more. Allowance for Credit Losses – Loans - The allowance for credit losses (“ACL”) on loans is a valuation allowance for current expected credit losses in the Company’s loan portfolio. Loan losses are charged against the ACL when management believes that the collectability of a loan balance is unlikely. Subsequent recoveries, if any, are credited to the ACL. In determining the allowance, the Company estimates credit losses over the loan’s entire contractual term, adjusted for expected prepayments when appropriate. The allowance estimate considers relevant available information from internal and external sources relating to historical loss experience; known and inherent risks in our portfolio; information about specific borrowers’ ability to repay; estimated collateral values; current economic conditions; reasonable and supportable forecasts for future conditions; and other relevant factors determined by management. To ensure that the ACL is maintained at an adequate level, a detailed analysis is performed on a quarterly basis and an appropriate provision is made to adjust the allowance. The entire ACL balance is available for any loan that, in management’s judgment, should be charged off. The determination of the ACL requires significant judgment to estimate credit losses. The ACL on loans is measured collectively on a pooled basis when similar risk characteristics exist, and on an individual basis when management determines 14 that the loan does not share similar risk characteristics with other loans. The ACL on loans collectively evaluated is measured using the loss rate model. The Company categorizes its loan portfolio into four segments based on similar risk characteristics. Loans within each segment are pooled based on individual loan characteristics. Aggregated risk drivers are then calculated at a pool level. Risk drivers are identified attributes that have proven to be predictive of loan loss rates and vary based on loan segment and type. A loss rate is calculated and applied to the pool utilizing a model that combines the pool’s risk drivers, historical loss experience, and reasonable and supportable future economic forecasts to project lifetime losses. For commercial/agricultural real estate loans, the loss rate is then combined with the loan’s balance and contractual maturity, adjusted for expected prepayments, to determine expected future losses. Future and supportable economic forecasts are based on national economic conditions and their reversion to the mean is implicit in the model and generally occurs over a period of two years. For commercial and industrial/agricultural operating, residential, and consumer loans, the loss rate is then combined with the loan’s balance and contractual maturity, to determine expected future losses. Qualitative adjustments are made to the allowance calculated on collectively evaluated loans to incorporate factors not included in the model. Qualitative factors include but are not limited to, lending policies and procedures, the experience and ability of lending and other staff, the volume and severity of problem credits, quality of the loan review system, and other external factors. Loans that exhibit different risk characteristics from the pool are individually evaluated and not included in the collective evaluation. Loans can be identified for individual evaluation for a variety of reasons including delinquency, nonaccrual status, risk rating and loan modification. Accruing loans that exhibit different risk characteristics from their pool may also be within scope. On these loans, an allowance may be established so that the loan is reported, net, at the lower of (a) its amortized cost; (b) the present value of the loan’s estimated future cash flows using the loan’s existing rate; or (c) at the fair value of any loan collateral, less estimated disposal costs, if the loan is collateral dependent. Collateral dependency is determined using the practical expedient when: (1) the borrower is experiencing financial difficulty; and (2) repayment is expected to be provided substantially through the sale or operation of the collateral. However, if it is probable that the Company will foreclose on the collateral, the use of the fair value of the collateral to calculate the allowance for credit loss is required. The Company has elected to not measure an ACL on accrued interest as it writes off accrued interest in a timely manner. Accrued interest receivable on loans was $ 4,943 and $ 4,841 at June 30, 2026 and December 31, 2025, respectively. Allowance for Credit Losses - Unfunded Commitments - The ACL on unfunded commitments is a liability for credit losses on commitments to originate or fund loans, and standby letters of credit. It is included in “Other liabilities” on the consolidated balance sheets. Expected credit losses are estimated over the contractual period in which the Company is exposed to credit risk via a commitment that cannot be unconditionally canceled, adjusted for projected prepayments when appropriate. In addition, the estimate of the liability considers the likelihood that funding will occur. The ACL on unfunded commitments is adjusted through provision for credit losses on the consolidated statements of operations. Because the business processes and risks associated with unfunded commitments are essentially the same as loans, the Company uses the same process to estimate the liability. Loans Held for Sale - Loans held for sale are those loans the Company has the intent to sell in the foreseeable future. They are carried at the lower of aggregate cost or fair value. Gains and losses on sales of loans are recognized at settlement dates, and are determined by the difference between the sales proceeds and the carrying value of the loans after allocating costs to servicing rights retained. Such gains and losses are included as non-interest income in the consolidated statements of operations. All sales are made without recourse. Interest rate lock commitments on mortgage loans to be funded and sold are valued at fair value, and are included in other assets or liabilities, if material. Transfers of financial assets - Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the entity, (2) the transferee obtains the right, free of conditions that constrain it from taking advantage of that right, to pledge or exchange the transferred assets, and (3) the entity does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. Mortgage Servicing Rights - Mortgage servicing rights (“MSR”) assets result as the Company sells loans to investors in the secondary market and retains the rights to service mortgage loans sold to others. MSR assets are initially measured at fair value; assessed for impairment at least quarterly; and carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value. MSR assets are amortized in proportion to and over the period of estimated net servicing income, with the amortization recorded as “Mortgage servicing rights expense, net” in non-interest expense in the consolidated statements of operations. The valuation of MSRs and related amortization, included in mortgage servicing rights expense in the consolidated statements of operations, thereon are based on numerous factors, assumptions and judgments, such as those for: changes in the 15 mix of loans, interest rates, prepayment speeds, and default rates. Changes in these factors, assumptions and judgments may have a material effect on the valuation and amortization of MSRs. Although management believes that the assumptions used to evaluate the MSRs for impairment are reasonable, future adjustment may be necessary if future economic conditions differ substantially from the economic assumptions used to determine the value of MSRs. Servicing fee income, which is reported on the consolidated statements of operations in non-interest income as loan servicing income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of outstanding principal; or a fixed amount per loan and are recorded as income when earned. Office Properties and Equipment - Premises and equipment are stated at cost less accumulated depreciation. Land is carried at cost. Maintenance and repair costs are charged to expense as incurred. Gains or losses on disposition of office properties and equipment are reflected in income. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 10 to 40 years. Furniture, fixtures and equipment are depreciated using the straight-line (or accelerated) method with useful lives ranging from 3 to 10 years. Leasehold improvements are depreciated using the straight-line (or accelerated) method with useful lives based on the lesser of (a) the estimated life of the lease, or (b) the estimated useful life of the leasehold improvement. Depreciation expense is included in non-interest expense on the consolidated statements of operations. Goodwill and other intangible assets - The Company accounts for goodwill and other intangible assets in accordance with ASC Topic 350, “Intangibles - Goodwill and Other.” The Company records the excess of the cost of acquired entities over the fair value of identifiable tangible and intangible assets acquired, less liabilities assumed, as goodwill. The Company amortizes acquired intangible assets, primarily Core Deposit Intangibles (CDI) with definite useful economic lives over their useful economic lives originally ranging from 72 to 111 months utilizing the straight-line method. On a periodic basis, management assesses whether events or changes in circumstances indicate that the carrying amounts of the intangible assets may be impaired. Goodwill is not amortized but, instead, is subject to impairment tests on at least an annual basis, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. A reporting unit is defined as any distinct, separately identifiable component of the Company’s one operating segment for which complete, discrete financial information is available and reviewed regularly by the segment’s management. The Company has one reporting unit as of June 30, 2026, which is related to its banking activities. The impairment testing process is conducted by assigning net assets and goodwill to the Company’s reporting unit. An initial qualitative evaluation is made to assess the likelihood of impairment and determine whether further quantitative testing to calculate the fair value is necessary. When the qualitative evaluation indicates that impairment is more likely than not, quantitative testing is required whereby the fair value of the Company’s reporting unit is calculated and compared to the recorded book value, “step one.” If the calculated fair value of the Company’s reporting unit exceeds its carrying value, goodwill is not considered impaired and “step two” is not considered necessary. If the carrying value of the Company’s reporting unit exceeds its calculated fair value, the impairment test continues (“step two”) by comparing the carrying value of the Company’s reporting unit’s goodwill to the implied fair value of goodwill. An impairment charge is recognized if the carrying value of goodwill exceeds the implied fair value of goodwill. The Company has performed the required goodwill impairment test and has determined that goodwill was not impaired as of October 31, 2025, and no circumstances arose after October 31, 2025, that indicated impairment existed at December 31, 2025, per the quarterly analysis. The Company has monitored events and conditions since December 31, 2025, and has determined that no triggering event has occurred that would require goodwill to be tested for impairment. Foreclosed and Repossessed Assets, net – Assets acquired through foreclosure or repossession are initially recorded at fair value, less estimated costs to sell, which establishes a new cost basis. If the fair value declines subsequent to foreclosure or repossession, a write-down is recorded through expense. Costs incurred after acquisition are expensed and are included in non-interest expense, other in the consolidated statements of operations. Bank Owned Life Insurance (BOLI) - The Bank invests in bank-owned life insurance (BOLI) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by the Bank on a select group of employees. The Bank is the owner and beneficiary of the policies. Income from the increase in cash surrender value of the policies as well as the receipt of death benefits is included in non-interest income on the consolidated statements of operations. Tax Credits - As a part of its commitment to the communities it serves, in the first quarter of 2022 and the third quarter of 2024, the Bank made investments in LLC’s that are sponsoring community development projects that have been awarded New Markets Tax Credits (“NMTC”) through the U.S. Department of the Treasury’s Community Development Financial Institutions Fund. These investments are Community Reinvestment Act eligible and are designed to generate a return primarily through the realization of the tax credit. These LLC’s are considered a Variable Interest Entity (VIE) as the Bank represents the holder of the equity investment at risk. However, the Bank does not have the ability to direct the activities that most significantly affect the performance of the LLC. As such, the Bank is not the primary beneficiary of the VIE and the LLCs have not been 16 consolidated. With the adoption of ASU 2023-02 on January 1, 2023, the investments are accounted for using the proportional amortization method, which requires amortizing the investment in the period of and in proportion to the recognition of the related tax credit. Amortization of the investment is included in provision for income taxes and the utilization of the tax credit is recorded as a reduction in provision for income taxes. Prior to the adoption of ASU 2023-02 the investment was accounted for using the equity method of accounting and was amortized through non-interest expense. As of June 30, 2026 and December 31, 2025, the carrying amount of this investment, which is included in other assets in the consolidated balance sheets, was $ 2,920 and $ 3,440 , respectively. The risk of loss with this investment is limited to its carrying value and is tied to its ability to operate in compliance with the rules and regulations necessary for the qualification of the tax credit generated by the investment. As of June 30, 2026, there were no known instances of noncompliance associated with either investment. In 2025, the Bank made an investment in a solar tax entity, primarily with locations in Wisconsin and Minnesota, which will be fully funded in 2026. The investment is accounted for using the proportional amortization method, which requires amortizing the investment in the period of and in proportion to the recognition of the related tax credit and other tax benefits from tax depreciation. Amortization of the investment is included in provision for income taxes and the utilization of the tax credit and other tax benefits is recorded as a reduction in provision for income taxes. As of June 30, 2026 and December 31, 2025, the carrying amount of this investment, which is the contractual amount to be funded net of proportional tax credit amortization, was $ 4,101 and $ 4,267 , respectively, and is included in other assets in the consolidated balance sheets. This amount is subject to change based on the completion of the various unfunded projects which will be completed in 2026. The risk of loss with this investment is limited to its carrying value and is tied to its ability to operate in compliance with the rules and regulations necessary for the qualification of the tax credit generated by the investment. As of June 30, 2026, there were no known instances of noncompliance associated with this investment. Leases - We determine if an arrangement is a lease at inception. All of our existing leases have been determined to be operating leases under ASC 842. Right-of-use (“ROU”) assets are included in other assets in our consolidated balance sheets. Operating lease liabilities are included in other liabilities in our consolidated balance sheets. Lease expense is included in non-interest expense, “Occupancy” in the consolidated statements of operations. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date, based on the present value of lease payments over the lease term. As none of our existing leases provide an implicit rate, we use our incremental borrowing rate, based on information available at commencement date, in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease, when it is reasonably certain that we will exercise that option. Lease expense is recognized based on the total contractually required lease payments, over the term of the lease, on a straight-line basis. Some of the Bank’s leases require it to make variable payments for the Bank’s share of property taxes, insurance, common area maintenance and other costs. These variable costs are recognized when incurred and are also included in lease expense. Federal Home Loan Bank (“FHLB”) advances - For cash flow purposes short-term FHLB advances are disclosed net with original maturities of three months or less. Debt and equity issuance costs - Debt issuance costs, which consist primarily of fees paid to note lenders, are deferred and included in other borrowings in the consolidated balance sheets. Debt issuance costs that originated in 2022 and thereafter, are amortized through the first Company call option date of the corresponding debt, as a component of interest expense on other borrowed funds in the consolidated statements of operations. Senior note debt issuance costs are amortized over the contractual term of the corresponding debt, as a component of interest expense on other borrowed funds in the consolidated statements of operations. Specific costs associated with the issuance of shares of the Company’s common or preferred stock are netted against proceeds and recorded in stockholders’ equity, as additional paid-in capital, on the consolidated balance sheets, in the period of the share issuance. Share-Based Compensation - The Company may grant restricted stock awards and other stock-based awards to plan participants, subject to forfeiture upon the occurrence of certain events until the dates specified in the participant’s award agreement. The Company accounts for forfeitures as they occur. Forfeited restricted shares are canceled and returned to authorized and unissued shares. While time based restricted shares are subject to forfeiture, time based restricted stock award participants may exercise full voting rights and will receive all dividends and other distributions paid with respect to the restricted shares. The time based restricted shares granted under the 2018 Equity Incentive Plan and the 2026 Omnibus Incentive Plan are subject to a three-year vesting period. Compensation expense for time based restricted stock is recognized 17 over the requisite service period of three years for the entire award on a straight-line basis. Performance based restricted shares are earned over a three-year period based on Board approved performance metrics and expense is recorded based on expected shares vesting. The performance based restricted stock award participants do not have voting rights and do not receive dividends or other distributions paid with respect to the performance based restricted shares. Upon vesting of restricted stock, the benefit of tax deductions in excess of recognized compensation expense is reflected as an income tax benefit in the Consolidated Statements of Operations. Advertising, Marketing and Public Relations Expense - The Company expenses all advertising, marketing and public relations costs as they are incurred. Income Taxes – The Company accounts for income taxes in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (“ASC”) Topic 740, “Income Taxes.” Under this guidance, deferred taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. The Company regularly reviews the carrying amount of its net deferred tax assets to determine if the establishment of a valuation allowance is necessary. If based on the available evidence, it is more likely than not that all or a portion of the Company’s net deferred tax assets will not be realized in future periods, a deferred tax valuation allowance would be established. Consideration is given to various positive and negative factors that could affect the realization of the deferred tax assets. In evaluating this available evidence, management considers, among other things, historical performance, expectations of future earnings, the ability to carry back losses to recoup taxes previously paid, the length of statutory carry forward periods, any experience with utilization of operating loss and tax credit carry forwards not expiring, tax planning strategies and timing of reversals of temporary differences. Significant judgment is required in assessing future earnings trends and the timing of reversals of temporary differences. Accordingly, the Company’s evaluation is based on current tax laws as well as management’s expectations of future performance. The Company’s effective tax rates were 17.2 % and 19.4 % for the six months ended June 30, 2026 and June 30, 2025, respectively. Revenue Recognition - The Company’s primary source of revenue is interest income from interest earning assets, which is recognized on the accrual basis of accounting using the effective interest method. The recognition of revenues from interest earning assets is based upon formulas from underlying loan agreements, securities contracts or other similar contracts. The Company accounts for revenue from contracts with customers in accordance with ASC Topic 606, “Revenue from Contracts with Customers.” Topic 606 provides that revenue from contracts with customers be recognized when performance obligations under the terms of a contract are satisfied. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing service. The Company does not have any materially significant payment terms as payment is received shortly after the satisfaction of the performance obligation. The statement of operations line items recognized under the scope of Topic 606 are as follows: Service charges on deposit accounts - Service charges on accounts consist of monthly service fees, transaction-based fees, overdraft fees and other deposit account related fees. The Company’s performance obligation for monthly services fees is generally satisfied over the period in which the service is provided. Revenue for these monthly fees is recognized during the service period. Other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied at the time the service is provided. Payment for service charges on deposit accounts are primarily received immediately or in the following month through a direct charge to a customer’s account. Interchange income - The Company earns interchange fees when cardholder debit card transactions are processed through card association networks. The interchange rates are generally set by the card association based upon purchase volumes and other factors. Interchange fees represent a percentage of the underlying transaction value. The Company has a continuous contract, based on customary business practices, with the card association networks to make funds available for settlement of card transactions. The Company’s performance obligation is satisfied over time as it makes funds available, and the related income is recognized when received. Gain (loss) on repossessed assets - The Company records a gain or loss from the sale of repossessed assets, when control of the property or asset transfers to the buyer, which generally occurs at the time of an executed deed or sales agreement. When the Company finances the sale of repossessed assets to a buyer, the Company assesses whether the 18 buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the repossessed asset is derecognized and the gain or loss on sale is recorded upon transfer of control of the property to the buyer. In determining the gain on sale or loss on the sale, the Company adjusts the transaction price and related gain or loss on sale if a significant financing component is present. Non-interest income outside of the scope of Revenue from Contracts with Customers, Topic 606 is recognized on the accrual basis of accounting as services are provided or as transactions occur. Non-interest income outside of the scope of Topic 606 includes mortgage banking activities, loan fees and service charges, net gains (losses) on investment securities, and other, which is primarily made up of BOLI related income. Earnings Per Share – Basic earnings per common share is net income or loss divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable during the period, consisting of stock options outstanding under the Company’s stock incentive plans that have an exercise price that is less than the Company’s stock price on the reporting date. Loss Contingencies - Loss contingencies, including claims and legal actions arising in the normal course of business, are recorded as liabilities when the likelihood of loss is probable and an amount of loss can be reasonably estimated. Off-Balance-Sheet Financial Instruments - In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit and commitments under lines of credit arrangements, issued to meet customer financial needs. Such financial instruments are recorded in the financial statements when they become payable. Derivatives--Rate-lock Commitments and Forward Sale Agreements - The Company enters into commitments to originate loans, whereby the interest rate on the loan is determined prior to funding (rate-lock commitment). Rate-lock commitments on mortgage loans held for sale are derivative instruments. If material, derivative instruments are carried on the consolidated balance sheets at fair value, and changes in the fair value thereof are recognized in the consolidated statements of operations. The Company originates single-family residential loans for sale, pursuant to programs primarily with the Federal Home Loan Mortgage Corporation (“FHLMC”) and other similar third parties. In connection with these programs, at the time the Company initially issues a loan commitment, it does not lock in a specific interest rate. At the time the interest rate is locked in by the borrower, the Company concurrently enters into a forward loan sale agreement with the prospective loan purchaser, at a specific price, in order to manage the interest rate risk inherent to the rate-lock commitment. The forward sale agreement also meets the definition of a derivative instrument. Any change in the fair value of the loan commitment after the borrower locks in the interest rate is substantially offset by the corresponding change in the fair value of the forward loan sale agreement related to such loan. The period from the time the borrower locks in the interest rate, to the time the Company funds the loan and sells the loan to a third party varies, and could be up to 90 days. The fair value of each instrument will rise and fall in response to changes in market interest rates, subsequent to the dates the interest rate locks and forward sale agreements are entered into. In the event that interest rates rise after the Company enters into an interest rate lock, the fair value of the loan commitment will decline. However, the fair value of the forward loan sale agreement related to such loan commitment should increase by substantially the same amount, effectively eliminating the Company’s interest rate and price risks. At June 30, 2026 and December 31, 2025, the Company had $ 6,348 and $ 5,456 , respectively, of loan commitments outstanding related to loans being originated for sale, all of which were subject to interest rate lock commitments and corresponding forward loan sale agreements, as described above. The net fair values of outstanding interest rate-lock commitments and forward sale agreements were considered immaterial to the Company’s consolidated financial statements as of June 30, 2026. Common Stock Repurchased - The Company is incorporated in Maryland. Under Maryland Law, shares repurchased are canceled and returned to authorized and unissued shares and recorded as a reduction of each of the applicable captions within stockholders’ equity on the consolidated balance sheets and consolidated statement of changes in stockholders’ equity. Other Comprehensive Income - Accumulated and other comprehensive income or loss is comprised of the unrealized and realized gains and losses on securities available-for-sale, net of tax, and is shown on the accompanying consolidated statements of comprehensive income. Operating Segments - The Chi e f Operating Decision Maker (as defined in Note 13) regularly reviews consolidated financial statements, as well as detailed revenue and net interest income and expense results in order to assess the Company’s performance and allocate resources. Wh i le the Chi e f Operating Decision Maker monitors the revenue streams of the various banking products and services, financial performance is evaluated and resource allocation decisions are made on a Company-wide basis. Accordingly, all of the Company’s banking operations are considered by the Chi e f Operating Decision Maker to be the Company’s sole reportable operating segment. 19 Reclassifications – Certain items previously reported were reclassified for consistency with the current presentation and had no effect on prior period net income or shareholders’ equity. Recent Accounting Pronouncements - The Financial Accounting Standards Board (“FASB”) issues Accounting Standards Updates (“ASUs”) to the FASB Accounting Standards Codification (“ASC”). This section provides a summary description of recent ASUs that have potentially significant implications (elected or required) within the consolidated financial statements, or that management expects may have a significant impact on financial statements issued in the near future. Recent Accounting Pronouncements—Adopted None. Recently Issued, But Not Yet Effective Accounting Pronouncements ASU 2024-03, Income Statement, Reporting of Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses— This ASU, issued in November 2024, is effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. This ASU requires more detailed note disclosure about the types of expenses in commonly presented expense captions. The Company is currently evaluating the impact of these new disclosure requirements. ASU 2025-08, Financial Instruments—Credit Losses (Topic 326); Purchased Loans— This ASU, issued in November 2025, is effective for fiscal years beginning after December 15, 2026 and interim periods within those annual reporting periods, with early adoption permitted. The update requires purchased seasoned loans to be accounted for using the gross-up approach, enhancing comparability and consistency in the accounting of acquired financial assets. The gross-up approach requires recognition of an allowance for credit losses for the estimated credit losses at the acquisition date, with an offsetting “gross up” to the purchase price of the acquired financial asset. The Company is currently evaluating the potential impact of this update. 20 NOTE 2 – INVESTMENT SECURITIES The amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income as of June 30, 2026 and December 31, 2025, respectively, were as follows: Available-for-sale securities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value June 30, 2026 U.S. government agency obligations $ 7,257 $ 11 $ 39 $ 7,229 Mortgage-backed securities 79,531 — 15,543 63,988 Corporate debt securities 43,618 184 1,298 42,504 Student loan asset-backed securities 14,876 4 166 14,714 Total available-for-sale securities $ 145,282 $ 199 $ 17,046 $ 128,435 December 31, 2025 U.S. government agency obligations $ 10,811 $ 15 $ 53 $ 10,773 Mortgage-backed securities 82,264 — 15,580 66,684 Corporate debt securities 42,394 152 1,864 40,682 Student loan asset-backed securities 16,149 10 195 15,964 Total available-for-sale securities $ 151,618 $ 177 $ 17,692 $ 134,103 The amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses as of June 30, 2026 and December 31, 2025, respectively, were as follows: Held-to-maturity securities Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Estimated Fair Value June 30, 2026 Obligations of states and political subdivisions $ 300 $ — $ 9 $ 291 Mortgage-backed securities 77,115 3 15,928 61,190 Total held-to-maturity securities $ 77,415 $ 3 $ 15,937 $ 61,481 December 31, 2025 Obligations of states and political subdivisions $ 400 $ — $ 12 $ 388 Mortgage-backed securities 79,810 6 16,087 63,729 Total held-to-maturity securities $ 80,210 $ 6 $ 16,099 $ 64,117 At June 30, 2026, the Bank has pledged certain of its mortgage-backed securities with a carrying value of $ 31,118 as collateral to secure a line of credit with the Federal Reserve Bank. As of June 30, 2026, there were no borrowings outstanding on this Federal Reserve Bank line of credit. As of June 30, 2026, the Bank has pledged certain of its U.S. Government Agency securities with a carrying value of $ 42 and mortgage-backed securities with a carrying value of $ 1,675 as collateral against specific municipal deposits. As of June 30, 2026, the Bank also has mortgage-backed securities with a carrying value of $ 373 pledged as collateral to the Federal Home Loan Bank of Des Moines. At December 31, 2025, the Bank had pledged certain of its mortgage-backed securities with a carrying value of $ 32,056 as collateral to secure a line of credit with the Federal Reserve Bank. As of December 31, 2025, there were no borrowings outstanding on this Federal Reserve Bank line of credit. As of December 31, 2025, the Bank had pledged certain of its U.S. Government Agency securities with a carrying value of $ 213 and mortgage-backed securities with a carrying value of $ 1,790 as collateral against specific municipal deposits. As of December 31, 2025, the Bank also had mortgage-backed securities with a carrying value of $ 401 , pledged as collateral to the Federal Home Loan Bank of Des Moines. For the six month periods ended June 30, 2026 and June 30, 2025, there were no sales of available-for-sale securities. 21 The estimated fair value of securities at June 30, 2026 and December 31, 2025, by contractual maturity, is shown below: June 30, 2026 December 31, 2025 Available-for-sale securities Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 1,980 $ 1,991 $ 2,013 $ 2,006 Due after one year through five years 10,790 10,649 8,533 8,574 Due after five years through ten years 34,178 33,162 38,403 36,617 Due after ten years 18,803 18,645 20,405 20,222 Total securities with contractual maturities 65,751 64,447 69,354 67,419 Mortgage-backed securities 79,531 63,988 82,264 66,684 Total available-for-sale securities $ 145,282 $ 128,435 $ 151,618 $ 134,103 June 30, 2026 December 31, 2025 Held-to-maturity securities Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 150 $ 147 $ 100 $ 100 Due after one year through five years 150 144 300 288 Total securities with contractual maturities 300 291 400 388 Mortgage-backed securities 77,115 61,190 79,810 63,729 Total held-to-maturity securities $ 77,415 $ 61,481 $ 80,210 $ 64,117 22 Securities with unrealized losses at June 30, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: Less than 12 Months 12 Months or More Total Available-for-sale securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss June 30, 2026 U.S. government agency obligations $ 1,496 $ 2 $ 3,095 $ 37 $ 4,591 $ 39 Mortgage-backed securities 2,664 34 61,324 15,509 63,988 15,543 Corporate debt securities 6,706 103 23,255 1,195 29,961 1,298 Student loan asset-backed securities 3,816 14 10,081 152 13,897 166 Total $ 14,682 $ 153 $ 97,755 $ 16,893 $ 112,437 $ 17,046 December 31, 2025 U.S. government agency obligations $ 1,275 $ 4 $ 5,997 $ 49 $ 7,272 $ 53 Mortgage-backed securities — — 66,684 15,580 66,684 15,580 Corporate debt securities 2,075 48 25,134 1,816 27,209 1,864 Student loan asset-backed securities 4,308 13 10,783 182 15,091 195 Total $ 7,658 $ 65 $ 108,598 $ 17,627 $ 116,256 $ 17,692 At June 30, 2026, no ACL was established for available-for-sale or held-to-maturity securities. Substantially all the held-to-maturity portfolio is made up of agency backed mortgage securities. These securities are guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. At June 30, 2026, there were no past due held-to-maturity securities. Accordingly, the Company does not expect to incur credit losses on these securities. Unrealized losses on available-for-sale investment securities have not been recognized into income because the issuers’ bonds are agency backed securities or other securities that all principal and interest is expected to be received on a timely basis. Furthermore, the Company does not intend to sell, and it is more likely than not that management will not be required to sell, the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates. The issuers continue to make timely principal and interest payments on their bonds. All of our available-for-sale and held-to-maturity investment securities are investment grade securities. 23 NOTE 3 – LOANS AND ALLOWANCE FOR CREDIT LOSSES Portfolio Segments: Commercial and agricultural real estate loans are underwritten after evaluating and understanding the borrower's ability to operate profitably and prudently expand its business. Management examines current and projected cash flows to determine the ability of the borrower to repay its obligations as agreed. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The level of owner-occupied property versus non-owner-occupied property are tracked and monitored on a regular basis. Agricultural real estate loans are primarily comprised of loans for the purchase of farmland. Loan-to-value ratios on loans secured by farmland generally do not exceed 75 %. Commercial and industrial (“C&I”) loans are primarily underwritten based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. These cash flows, however, may not be as expected and the value of collateral securing the loans may fluctuate. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. Agricultural operating loans are generally comprised of term loans to fund the purchase of equipment, livestock and seasonal operating lines. Operating lines are typically written for one year and secured by the crop and other farm assets or other business assets, as considered necessary. Agricultural loans carry significant credit risks as they may involve larger balances concentrated with single borrowers or groups of related borrowers. In addition, repayment of such loans depends on the successful operation or management of the farm property securing the loan or for which an operating loan is utilized. Farming operations may be affected by adverse weather conditions such as drought, hail or floods that can severely limit crop yields. Residential mortgage loans are collateralized by primary and secondary positions on real estate and are underwritten primarily based on borrower’s documented income, credit scores, and collateral values. Under consumer home equity loan guidelines, the borrower will be approved for a loan based on a percentage of their home’s appraised value less the balance owed on the existing first mortgage. Credit risk is minimized within the residential mortgage portfolio due to relatively small loan account balances spread across many individual borrowers. Management evaluates trends in past due loans and current economic factors such as the housing price index on a regular basis. Consumer installment loans are comprised of other consumer loans secured primarily by automobiles and other personal assets and originated indirect paper loans secured primarily by boats and recreational vehicles. Consumer loan underwriting terms often depend on the collateral type, debt to income ratio and the borrower’s creditworthiness as evidenced by their credit score. In the event of a consumer installment loan default, collateral value alone may not provide an adequate source of repayment of the outstanding loan balance. This shortage is a result of the greater likelihood of damage, loss and depreciation for consumer based collateral. 24 Loans are stated at the principal amount outstanding net of unearned net deferred fees and costs and loans in process, unearned discounts on acquired loans, and allowance for credit losses (“ACL”). Unearned net deferred fees and costs includes deferred loan origination fees reduced by loan origination costs and is amortized to interest income over the life of the related loan using methods that approximated the effective interest rate method. Interest on substantially all loans is credited to income based on the principal amount outstanding. A summary of loans at June 30, 2026, and December 31, 2025, follows: June 30, 2026 December 31, 2025 Amortized Cost % of Total Amortized Cost % of Total Commercial/Agricultural real estate: Commercial real estate $ 729,330 52.7 % $ 681,646 50.9 % Agricultural real estate 71,293 5.2 % 69,042 5.1 % Multi-family real estate 253,072 18.3 % 245,491 18.3 % Construction and land development 55,850 4.0 % 75,399 5.6 % C&I/Agricultural operating: Commercial and industrial 117,018 8.5 % 105,756 7.9 % Agricultural operating 29,424 2.1 % 33,364 2.5 % Residential mortgage: Residential mortgage 116,757 8.5 % 121,666 9.1 % Purchased HELOC loans 1,405 0.1 % 1,739 0.1 % Consumer installment: Originated indirect paper 1,559 0.1 % 2,225 0.2 % Other consumer 7,267 0.5 % 3,997 0.3 % Total loans receivable $ 1,382,975 100 % $ 1,340,325 100 % Less: Allowance for credit losses ( 25,899 ) ( 22,401 ) Net loans receivable $ 1,357,076 $ 1,317,924 25 Credit Quality/Risk Ratings: Management utilizes a numeric risk rating system to identify and quantify the Bank’s risk of loss within its commercial/agricultural real estate and commercial and industrial/agricultural operating loan portfolios. Ratings are initially assigned prior to funding the loan, and may be changed at any time as circumstances warrant. Ratings range from the highest to lowest quality based on factors that include measurements of ability to pay, collateral type and value, borrower stability and management experience. The Bank’s loan portfolio ratings are presented below in accordance with the risk rating framework that has been commonly adopted by the federal banking agencies. The definitions of the various risk rating categories are as follows: 1 through 4 - Pass. A “Pass” loan means that the condition of the borrower and the performance of the loan is satisfactory or better. 5 - Watch. A “Watch” loan has clearly identifiable developing weaknesses that deserve additional attention from management. Weaknesses that are not corrected or mitigated, may jeopardize the ability of the borrower to repay the loan in the future. 6 - Special Mention. A “Special Mention” loan has one or more potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position in the future. 7 - Substandard. A “Substandard” loan is inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Assets classified as substandard must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. 8 - Doubtful. A “Doubtful” loan has all the weaknesses inherent in a Substandard loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. 9 - Loss. Loans classified as “Loss” are considered uncollectible, and their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, and a partial recovery may occur in the future. As of June 30, 2026 and December 31, 2025, there were no loans classified as doubtful with a risk rating of 8 and no loans classified as loss with a risk rating of 9. Residential and consumer loans are typically not rated until they are past due 90 days at month-end which is why they are classified as pass graded 1-5 and once 90 days past due at month-end or nonaccrual, get assigned a grade 7. 26 Below is a summary of the amortized cost of loans summarized by class, credit quality risk rating and year of origination as of June 30, 2026, and gross charge-offs for the six months ended June 30, 2026: Amortized Cost Basis by Origination Year 2026 2025 2024 2023 2022 Prior Revolving Revolving to Term Total Commercial/Agricultural real estate: Commercial real estate Risk rating 1 to 5 $ 63,443 $ 90,568 $ 46,772 $ 67,579 $ 94,314 $ 324,116 $ 12,370 $ — $ 699,162 Risk rating 6 — — 772 1,346 — 8,048 25 — 10,191 Risk rating 7 2,686 3,185 152 1,179 4,894 7,881 — — 19,977 Total $ 66,129 $ 93,753 $ 47,696 $ 70,104 $ 99,208 $ 340,045 $ 12,395 $ — $ 729,330 Current period gross charge-offs $ — $ — $ 47 $ 89 $ 438 $ — $ 17 $ — $ 591 Agricultural real estate Risk rating 1 to 5 $ 9,951 $ 16,973 $ 2,038 $ 3,995 $ 14,714 $ 19,711 $ 677 $ — $ 68,059 Risk rating 6 — 773 — — — 207 — — 980 Risk rating 7 — — — 1,984 — 270 — — 2,254 Total $ 9,951 $ 17,746 $ 2,038 $ 5,979 $ 14,714 $ 20,188 $ 677 $ — $ 71,293 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Multi-family real estate Risk rating 1 to 5 $ 11,589 $ 27,470 $ 6,615 $ 20,145 $ 53,557 $ 122,138 $ 446 $ — $ 241,960 Risk rating 6 — — — 2,142 — — — — 2,142 Risk rating 7 — — — — — 8,970 — — 8,970 Total $ 11,589 $ 27,470 $ 6,615 $ 22,287 $ 53,557 $ 131,108 $ 446 $ — $ 253,072 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction and land development Risk rating 1 to 5 $ 8,432 $ 33,512 $ 6,560 $ 2,032 $ 3,397 $ 1,270 $ 647 $ — $ 55,850 Risk rating 6 — — — — — — — — — Risk rating 7 — — — — — — — — — Total $ 8,432 $ 33,512 $ 6,560 $ 2,032 $ 3,397 $ 1,270 $ 647 $ — $ 55,850 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial/Agricultural operating: Commercial and industrial Risk rating 1 to 5 $ 25,115 $ 12,326 $ 12,354 $ 5,540 $ 14,204 $ 12,925 $ 27,720 $ — $ 110,184 Risk rating 6 380 870 197 1,189 2,159 233 350 — 5,378 Risk rating 7 — — 489 285 — 301 381 — 1,456 Total $ 25,495 $ 13,196 $ 13,040 $ 7,014 $ 16,363 $ 13,459 $ 28,451 $ — $ 117,018 Current period gross charge-offs $ — $ — $ — $ 48 $ 984 $ — $ — $ — $ 1,032 Agricultural operating Risk rating 1 to 5 $ 3,654 $ 2,902 $ 787 $ 2,153 $ 2,042 $ 1,073 $ 15,675 $ — $ 28,286 Risk rating 6 — 428 39 21 — — 650 — 1,138 Risk rating 7 — — — — — — — — — Total $ 3,654 $ 3,330 $ 826 $ 2,174 $ 2,042 $ 1,073 $ 16,325 $ — $ 29,424 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 27 Continued Amortized Cost Basis by Origination Year 2026 2025 2024 2023 2022 Prior Revolving Revolving to Term Total Residential mortgage: Residential mortgage Risk rating 1 to 5 $ 2,970 $ 8,769 $ 6,607 $ 20,984 $ 26,797 $ 30,776 $ 17,715 $ — $ 114,618 Risk rating 7 — — 95 — — 1,944 100 — 2,139 Total $ 2,970 $ 8,769 $ 6,702 $ 20,984 $ 26,797 $ 32,720 $ 17,815 $ — $ 116,757 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Purchased HELOC loans Risk rating 1 to 5 $ — $ — $ — $ — $ — $ — $ 1,288 $ — $ 1,288 Risk rating 7 — — — — — — 117 — 117 Total $ — $ — $ — $ — $ — $ — $ 1,405 $ — $ 1,405 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer installment: Originated indirect paper Risk rating 1 to 5 $ — $ — $ — $ — $ — $ 1,535 $ — $ — $ 1,535 Risk rating 7 — — — — — 24 — — 24 Total $ — $ — $ — $ — $ — $ 1,559 $ — $ — $ 1,559 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Other consumer Risk rating 1 to 5 $ 4,455 $ 945 $ 555 $ 481 $ 177 $ 200 $ 408 $ — $ 7,221 Risk rating 7 — 23 18 — 5 — — — 46 Total $ 4,455 $ 968 $ 573 $ 481 $ 182 $ 200 $ 408 $ — $ 7,267 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ 1 $ — $ 1 Total loans receivable $ 132,675 $ 198,744 $ 84,050 $ 131,055 $ 216,260 $ 541,622 $ 78,569 $ — $ 1,382,975 Total current period gross charge-offs $ — $ — $ 47 $ 137 $ 1,422 $ — $ 18 $ — $ 1,624 28 Below is a summary of the amortized cost of loans summarized by class, credit quality risk rating and year of origination as of December 31, 2025, and gross charge-offs for the twelve months ended December 31, 2025: Amortized Cost Basis by Origination Year 2025 2024 2023 2022 2021 Prior Revolving Revolving to Term Total Commercial/Agricultural real estate: Commercial real estate Risk rating 1 to 5 $ 74,334 $ 48,318 $ 70,001 $ 92,337 $ 180,767 $ 176,626 $ 10,920 $ — $ 653,303 Risk rating 6 — 775 1,513 6,836 7,053 3,459 24 — 19,660 Risk rating 7 — 164 1,516 1,059 1,952 3,992 — — 8,683 Total $ 74,334 $ 49,257 $ 73,030 $ 100,232 $ 189,772 $ 184,077 $ 10,944 $ — $ 681,646 Current period gross charge-offs $ — $ — $ — $ 51 $ — $ — $ — $ — $ 51 Agricultural real estate Risk rating 1 to 5 $ 18,677 $ 2,403 $ 6,052 $ 16,064 $ 9,234 $ 14,711 $ 518 $ — $ 67,659 Risk rating 6 780 — — — — 139 — — 919 Risk rating 7 — — 192 — — 272 — — 464 Total $ 19,457 $ 2,403 $ 6,244 $ 16,064 $ 9,234 $ 15,122 $ 518 $ — $ 69,042 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Multi-family real estate Risk rating 1 to 5 $ 25,772 $ 6,688 $ 20,719 $ 55,742 $ 85,892 $ 41,297 $ 411 $ — $ 236,521 Risk rating 6 — — — — — — — — — Risk rating 7 — — — — 8,970 — — — 8,970 Total $ 25,772 $ 6,688 $ 20,719 $ 55,742 $ 94,862 $ 41,297 $ 411 $ — $ 245,491 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction and land development Risk rating 1 to 5 $ 44,202 $ 7,722 $ 12,952 $ 8,949 $ 255 $ 1,084 $ 178 $ — $ 75,342 Risk rating 6 — — — — — — 57 — 57 Risk rating 7 — — — — — — — — — Total $ 44,202 $ 7,722 $ 12,952 $ 8,949 $ 255 $ 1,084 $ 235 $ — $ 75,399 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial/Agricultural operating: Commercial and industrial Risk rating 1 to 5 $ 14,210 $ 15,418 $ 7,815 $ 18,357 $ 7,781 $ 8,097 $ 24,870 $ — $ 96,548 Risk rating 6 219 223 1,458 3,268 487 122 899 — 6,676 Risk rating 7 — 612 274 734 360 — 552 — 2,532 Total $ 14,429 $ 16,253 $ 9,547 $ 22,359 $ 8,628 $ 8,219 $ 26,321 $ — $ 105,756 Current period gross charge-offs $ — $ — $ 36 $ 23 $ — $ — $ 35 $ — $ 94 Agricultural operating Risk rating 1 to 5 $ 4,880 $ 1,056 $ 2,355 $ 2,155 $ 279 $ 898 $ 21,602 $ — $ 33,225 Risk rating 6 — — — — — — 139 — 139 Risk rating 7 — — — — — — — — — Total $ 4,880 $ 1,056 $ 2,355 $ 2,155 $ 279 $ 898 $ 21,741 $ — $ 33,364 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 29 Continued Amortized Cost Basis by Origination Year 2025 2024 2023 2022 2021 Prior Revolving Revolving to Term Total Residential mortgage: Residential mortgage Risk rating 1 to 5 $ 11,089 $ 7,971 $ 23,556 $ 27,863 $ 6,666 $ 26,112 $ 16,334 $ — 119,591 Risk rating 7 — — — — 133 1,842 100 — 2,075 Total $ 11,089 $ 7,971 $ 23,556 $ 27,863 $ 6,799 $ 27,954 $ 16,434 $ — $ 121,666 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Purchased HELOC loans Risk rating 1 to 5 $ — $ — $ — $ — $ — $ — $ 1,622 $ — $ 1,622 Risk rating 7 — — — — — — 117 — 117 Total $ — $ — $ — $ — $ — $ — $ 1,739 $ — $ 1,739 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer installment: Originated indirect paper Risk rating 1 to 5 $ — $ — $ — $ — $ — $ 2,197 $ — $ — $ 2,197 Risk rating 7 — — — — — 28 — — 28 Total $ — $ — $ — $ — $ — $ 2,225 $ — $ — $ 2,225 Current period gross charge-offs $ — $ — $ — $ — $ — $ 2 $ — $ — $ 2 Other consumer Risk rating 1 to 5 $ 1,347 $ 784 $ 658 $ 395 $ 174 $ 109 $ 528 $ — $ 3,995 Risk rating 7 — 1 — — — — 1 — 2 Total $ 1,347 $ 785 $ 658 $ 395 $ 174 $ 109 $ 529 $ — $ 3,997 Current period gross charge-offs $ — $ 5 $ 10 $ — $ — $ 1 $ 4 $ — $ 20 Total loans receivable $ 195,510 $ 92,135 $ 149,061 $ 233,759 $ 310,003 $ 280,985 $ 78,872 $ — $ 1,340,325 Total current period gross charge-offs $ — $ 5 $ 46 $ 74 $ — $ 3 $ 39 $ — $ 167 30 Allowance for Credit Losses - Loans- The allowance for credit losses (“ACL”) is comprised of collectively evaluated and individually evaluated components. In determining the allowance, the Company estimates credit losses over the loan’s entire contractual term, adjusted for expected prepayments when appropriate. The provision for credit losses is the charge against current earnings that is determined by the Company as the amount needed to maintain an adequate allowance for credit losses. In determining the adequacy of the allowance for credit losses, and therefore the provision to be charged to current earnings, the Company relies predominantly on a disciplined credit review and approval process that extends to the full range of the Company’s credit exposure. The review process is directed by the overall lending policy and is intended to identify, at the earliest possible stage, the borrowers who might be facing financial difficulty. Factors considered by the Company in evaluating the overall adequacy of the allowance include historical net loan losses, the level and composition of nonaccrual, past due and modifications, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates. The Company estimates the appropriate level of allowance for credit losses by evaluating loans collectively on a pooled basis when similar risk characteristics exist, and on an individual basis when management determines that a loan does not share similar risk characteristics with other loans. The following tables present the balance and activity in the allowance for credit losses (“ACL”) - loans by portfolio segment for the three and six months ended June 30, 2026: Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Total Three months ended June 30, 2026 Allowance for Credit Losses - Loans: ACL - Loans, at beginning of period $ 18,251 $ 2,626 $ 1,939 $ 150 $ 22,966 Charge-offs ( 574 ) ( 849 ) — — ( 1,423 ) Recoveries — 2 — 4 6 Additions to ACL - Loans via provision for credit losses charged to operations 3,744 493 108 5 4,350 ACL - Loans, at end of period $ 21,421 $ 2,272 $ 2,047 $ 159 $ 25,899 Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Total Six months ended June 30, 2026 Allowance for Credit Losses - Loans: ACL - Loans, at beginning of period $ 17,654 $ 2,358 $ 2,230 $ 159 $ 22,401 Charge-offs ( 591 ) ( 1,032 ) — ( 1 ) ( 1,624 ) Recoveries — 2 5 7 14 Additions/(reversals) to ACL - Loans via provision for credit losses charged to operations 4,358 944 ( 188 ) ( 6 ) 5,108 ACL - Loans, at end of period $ 21,421 $ 2,272 $ 2,047 $ 159 $ 25,899 The following tables present the balance and activity in the allowance for credit losses (“ACL”) - loans by portfolio segment for the three and six months ended June 30, 2025, and the twelve months ended December 31, 2025: 31 Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Total Three months ended June 30, 2025 Allowance for Credit Losses - Loans: ACL - Loans, at beginning of period $ 16,244 $ 1,430 $ 2,338 $ 193 $ 20,205 Charge-offs — ( 67 ) — ( 7 ) ( 74 ) Recoveries 52 1 — 5 58 Additions/(reversals) to ACL - Loans via provision for credit losses charged to operations 868 294 9 ( 13 ) 1,158 ACL - Loans, at end of period $ 17,164 $ 1,658 $ 2,347 $ 178 $ 21,347 Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Total Six months ended June 30, 2025 Allowance for Credit Losses - Loans: ACL - Loans, at beginning of period $ 16,516 $ 1,330 $ 2,489 $ 214 $ 20,549 Charge-offs ( 51 ) ( 87 ) — ( 18 ) ( 156 ) Recoveries 92 46 1 8 147 Additions/(reversals) to ACL - Loans via provision for credit losses charged to operations 607 369 ( 143 ) ( 26 ) 807 ACL - Loans, at end of period $ 17,164 $ 1,658 $ 2,347 $ 178 $ 21,347 Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Total Twelve months ended December 31, 2025 Allowance for Credit Losses - Loans: ACL - Loans, at beginning of period $ 16,516 $ 1,330 $ 2,489 $ 214 $ 20,549 Charge-offs ( 51 ) ( 94 ) — ( 22 ) ( 167 ) Recoveries 92 51 53 29 225 Additions/(reversals) to ACL - Loans via provision for credit losses charged to operations 1,097 1,071 ( 312 ) ( 62 ) 1,794 ACL - Loans, at end of period $ 17,654 $ 2,358 $ 2,230 $ 159 $ 22,401 32 Allowance for Credit Losses - Unfunded Commitments - In addition to the ACL - Loans, the Company has established an ACL - Unfunded Commitments of $ 457 at June 30, 2026, and $ 490 at December 31, 2025, classified in other liabilities on the consolidated balance sheets. The following table presents the balance and activity in the ACL - Unfunded Commitments for the three and six months ended June 30, 2026 and June 30, 2025. June 30, 2026 and Three Months Ended June 30, 2025 and Three Months Ended June 30, 2026 and Six Months Ended June 30, 2025 and Six Months Ended ACL - Unfunded Commitments - beginning of period $ 482 $ 435 $ 490 $ 334 (Reversals)/additions to ACL - Unfunded Commitments via provision for credit losses charged to operations ( 25 ) 192 ( 33 ) 293 ACL - Unfunded Commitments - End of period $ 457 $ 627 $ 457 $ 627 Provision for Credit Losses - The provision for credit losses is determined by the Company as the amount to be added/ (reversed) to the ACL loss accounts for various types of financial instruments (including loans and off-balance sheet credit exposures) after net charge-offs have been deducted to bring the ACL to a level that, in management’s judgement, is necessary to absorb expected credit losses over the lives of the respective financial instruments. The following table presents the components of the provision for credit losses. June 30, 2026 and Three Months Ended June 30, 2025 and Three Months Ended June. 30, 2026 and Six Months Ended June. 30, 2025 and Six Months Ended Provision for credit losses on: Loans $ 4,350 $ 1,158 $ 5,108 $ 807 Unfunded Commitments ( 25 ) 192 ( 33 ) 293 Total provision for credit losses $ 4,325 $ 1,350 $ 5,075 $ 1,100 33 An aging analysis of the Company’s commercial/agricultural real estate, C&I, agricultural operating, residential mortgage, consumer installment and purchased third party loans as of June 30, 2026, and December 31, 2025, respectively, was as follows: (Loan balances at amortized cost) 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total Past Due Current Total Loans June 30, 2026 Commercial/Agricultural real estate: Commercial real estate $ 245 $ 5,637 $ 8,946 $ 14,828 $ 714,502 $ 729,330 Agricultural real estate — — — — 71,293 71,293 Multi-family real estate — — 8,970 8,970 244,102 253,072 Construction and land development — — — — 55,850 55,850 C&I/Agricultural operating: Commercial and industrial — — 463 463 116,555 117,018 Agricultural operating — — — — 29,424 29,424 Residential mortgage: Residential mortgage 1,669 284 61 2,014 114,743 116,757 Purchased HELOC loans 117 — — 117 1,288 1,405 Consumer installment: Originated indirect paper — — — — 1,559 1,559 Other consumer 62 15 — 77 7,190 7,267 Total $ 2,093 $ 5,936 $ 18,440 $ 26,469 $ 1,356,506 $ 1,382,975 (Loan balances at amortized cost) 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total Past Due Current Total Loans December 31, 2025 Commercial/Agricultural real estate: Commercial real estate $ 471 $ 572 $ 467 $ 1,510 $ 680,136 $ 681,646 Agricultural real estate 192 — — 192 68,850 69,042 Multi-family real estate — — 8,970 8,970 236,521 245,491 Construction and land development 57 — — 57 75,342 75,399 C&I/Agricultural operating: Commercial and industrial 665 — 1,143 1,808 103,948 105,756 Agricultural operating — — — — 33,364 33,364 Residential mortgage: Residential mortgage 1,419 132 44 1,595 120,071 121,666 Purchased HELOC loans 117 — — 117 1,622 1,739 Consumer installment: Originated indirect paper — — — — 2,225 2,225 Other consumer 29 2 1 32 3,965 3,997 Total $ 2,950 $ 706 $ 10,625 $ 14,281 $ 1,326,044 $ 1,340,325 34 Nonaccrual Loans - The following tables present the amortized cost basis of loans on nonaccrual status, of nonaccrual loans individually evaluated and of loans past due over 89 days and still accruing at June 30, 2026 and December 31, 2025, with no allowance for credit losses: June 30, 2026 Total Nonaccrual Loans Nonaccrual with no Allowance for Credit Losses Loans Past Due over 89 Days Still Accruing Commercial/Agricultural real estate: Commercial real estate $ 18,676 $ 9,733 $ — Agricultural real estate 2,254 270 — Multi-family real estate 8,970 — — C&I/Agricultural operating: Commercial and industrial 1,221 728 — Residential mortgage: Residential mortgage 323 323 18 Purchased HELOC loans 117 117 — Consumer installment: Other consumer — — — Total $ 31,561 $ 11,171 $ 18 December 31, 2025 Total Nonaccrual Loans Nonaccrual with no Allowance for Credit Losses Loans Past Due over 89 Days Still Accruing Commercial/Agricultural real estate: Commercial real estate $ 4,652 $ 4,454 $ — Agricultural real estate 464 272 — Construction and land development 8,970 — — C&I/Agricultural operating: Commercial and industrial 1,282 921 — Residential mortgage: Residential mortgage 368 368 — Purchased HELOC loans 117 117 — Consumer installment: Originated indirect paper — — 1 Total $ 15,853 $ 6,132 $ 1 ​ The Company’s policy is to discontinue the accrual of interest income on all loans for which principal or interest is past due according to the following schedules: • Commercial/agricultural real estate loans, past due 90 days or more; • Commercial and industrial/agricultural operating loans past due 90 days or more; • Closed ended consumer installment loans past due 120 days or more; and • Residential mortgage and open ended consumer installment loans past due 180 days or more. 35 The accrual of interest is discontinued earlier when, in the opinion of management, there is reasonable doubt as to the timely collection of interest or principal. Once interest accruals are discontinued, accrued but uncollected interest is charged against current year income. Subsequent receipts on nonaccrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Interest on loans determined to be modified is recognized on an accrual basis in accordance with the restructured terms if the loan is in compliance with the modified terms. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. 36 Collateral Dependent Loans - A loan is considered to be collateral dependent when, based upon management’s assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. For collateral dependent loans, expected credit losses are based on the fair value of the collateral at the balance sheet date, with consideration for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. The following tables present the amortized cost basis of collateral dependent loans by portfolio segment and collateral type that were individually evaluated to determine expected credit losses and the related allowance for credit losses as of June 30, 2026, and December 31, 2025. Collateral Type June 30, 2026 Real Estate Other Assets Total Commercial/Agricultural real estate: Commercial real estate $ 19,977 $ — $ 19,977 Agricultural real estate 2,254 — 2,254 Multi-family real estate 8,970 — 8,970 C&I/Agricultural operating: Commercial and industrial — 1,456 1,456 Agricultural operating — — — Residential mortgage: Residential mortgage 2,181 — 2,181 Consumer installment: Originated indirect paper — 24 24 Other consumer — 46 46 Total $ 33,382 $ 1,526 $ 34,908 Collateral Type December 31, 2025 Real Estate Other Assets Total Commercial/Agricultural real estate: Commercial real estate $ 8,808 $ — $ 8,808 Agricultural real estate 464 — 464 Construction and land development 8,970 — 8,970 C&I/Agricultural operating: Commercial and industrial — 3,176 3,176 Agricultural operating — — — Residential mortgage: Residential mortgage 2,077 — 2,077 Consumer installment: Originated indirect paper — 28 28 Other consumer — 2 2 Total $ 20,319 $ 3,206 $ 23,525 There were no outstanding commitments to borrowers experiencing financial difficulty as of June 30, 2026. There were no unused lines of credit on loans with borrowers experiencing financial difficulties as of June 30, 2026. There were no loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2026. . ​ ​ 37 The tables below detail Loan Modifications made to Borrowers Experiencing Financial Difficulty during the twelve months ended June 30, 2026: Term Extension Loan Class Amortized Cost Basis at June 30, 2026 % of Total Class of Financing Receivables Commercial and industrial $ 28 0.02 % Other-Than-Insignificant Payment Delay Loan Class Amortized Cost Basis at June 30, 2026 % of Total Class of Financing Receivables Agricultural real estate $ 1,984 2.78 % Residential mortgage $ 120 0.10 % The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty during the twelve months ended June 30, 2026: Term Extension Loan Class Financial Effect Commercial and industrial A weighted average of 3 months was added to the term of the loans Other-Than-Insignificant Payment Delay Loan Class Financial Effect Agricultural real estate Payments were deferred a weighted average of 6 months Residential mortgage Payments were deferred a weighted average of 3 months 38 The tables below detail Loan Modifications Made to Borrowers Experiencing Financial Difficulty during the three months ended June 30, 2025: Term Extension Loan Class Amortized Cost Basis at June 30, 2025 % of Total Class of Financing Receivables Commercial real estate $ 164 0.02 % Other-Than-Insignificant Payment Delay Loan Class Amortized Cost Basis at June 30, 2025 % of Total Class of Financing Receivables Commercial real estate $ 4,263 0.62 % Agricultural real estate $ 200 0.29 % The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2025: Term Extension Loan Class Financial Effect Commercial real estate A weighted average of 2 months was added to the term of the loans Other-Than-Insignificant Payment Delay Loan Class Financial Effect Commercial real estate Payments were deferred a weighted average of 3 months Agricultural real estate Payments were deferred a weighted average of 9 months 39 The tables below detail Loan Modifications Made to Borrowers Experiencing Financial Difficulty during the twelve months ended June 30, 2025: Term Extension Loan Class Amortized Cost Basis at June 30, 2025 % of Total Class of Financing Receivables Commercial real estate $ 164 0.02 % Commercial and industrial $ 661 0.61 % Agricultural operating $ 171 0.54 % Residential mortgage $ 17 0.01 % Other-Than-Insignificant Payment Delay Loan Class Amortized Cost Basis at June 30, 2025 % of Total Class of Financing Receivables Commercial real estate $ 5,738 0.83 % Agricultural real estate $ 200 0.29 % Residential mortgage $ 120 0.10 % Term Extension and Principal Forgiveness Loan Class Amortized Cost Basis at June 30, 2025 % of Total Class of Financing Receivables Other consumer $ 2 — % The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty during the twelve months ended June 30, 2025: Term Extension Loan Class Financial Effect Commercial real estate A weighted average of 2 months was added to the term of the loans Commercial and industrial A weighted average of 13 months was added to the term of the loans Agricultural operating A weighted average of 8 months was added to the term of the loans Residential mortgage A weighted average of 55 months was added to the term of the loans Other-Than-Insignificant Payment Delay Loan Class Financial Effect Commercial real estate Payments were deferred a weighted average of 3 months Agricultural real estate Payments were deferred a weighted average of 9 months Residential mortgage Payments were deferred a weighted average of 3 months Term Extension and Principal Forgiveness Loan Class Financial Effect Other consumer A weighted average of 3 months was added to the term of the loan and a principal balance of $ 2 was forgiven 40 The Company closely monitors the performance of loans that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table shows the performance of such loans that have been modified during the twelve months ended June 30, 2026. Current 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Agricultural real estate $ 1,984 $ — $ — $ — Commercial and industrial — — — 28 Residential mortgage — 120 — — Total $ 1,984 $ 120 $ — $ 28 The following table shows the performance of such loans that have been modified during the twelve months ended June 30, 2025. Current 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Commercial real estate $ 5,902 $ — $ — $ — Agricultural real estate 200 — — — Commercial and industrial 661 — — — Agricultural operating 171 — — — Residential mortgage 17 120 — — Other consumer 2 — — — Total $ 6,953 $ 120 $ — $ — 41 NOTE 4 – MORTGAGE SERVICING RIGHTS Mortgage servicing rights-- Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid balances of these loans as of June 30, 2026 and December 31, 2025, were $ 471,803 and $ 474,045 , respectively, and consisted of one to four family residential real estate loans. These loans are serviced primarily for the Federal Home Loan Mortgage Corporation, Federal Home Loan Bank and the Federal National Mortgage Association. Custodial escrow balances maintained in connection with the foregoing loan servicing, and included in deposits were $ 5,450 and $ 2,841 at June 30, 2026 and December 31, 2025, respectively. Mortgage servicing rights activity for the three and six month periods ended June 30, 2026 and June 30, 2025, were as follows: As of and for the Three Months Ended As of and for the Three Months Ended As of and for the Six Months Ended As of and for the Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Mortgage servicing rights: Mortgage servicing rights, beginning of period $ 3,484 $ 3,583 $ 3,494 $ 3,663 Increase in mortgage servicing rights resulting from transfers of financial assets 142 113 293 173 Amortization during the period ( 173 ) ( 148 ) ( 334 ) ( 288 ) Mortgage servicing rights, end of period 3,453 3,548 3,453 3,548 Valuation allowance: Valuation allowance, beginning of period — — — — Additions — — — — Recoveries — — — — Valuation allowance, end of period — — — — Mortgage servicing rights, net $ 3,453 $ 3,548 $ 3,453 $ 3,548 Fair value of mortgage servicing rights; end of period $ 5,108 $ 5,099 $ 5,108 $ 5,099 The current period change in valuation allowance, if applicable, is included in non-interest expense as mortgage servicing rights expense, net on the consolidated statement of operations. Servicing fees totaled $ 299 and $ 301 for the three months ended June 30, 2026 and June 30, 2025, respectively. Servicing fees totaled $ 599 and $ 602 for the six months ended June 30, 2026 and June 30, 2025, respectively. Servicing fees are included in loan servicing income on the consolidated statement of operations. Late fees and ancillary fees related to loan servicing are not material. To estimate the fair value of the MSR asset, a valuation model is applied at the loan level to calculate the present value of the expected future cash flows. The valuation model incorporates various assumptions that would impact market participants’ estimations of future servicing income. Central to the valuation model is the discount rate. Fair value at June 30, 2026, was determined using discount rates ranging from 9.750 % to 12.750 %. Fair value at June 30, 2025, was determined using discount rates ranging from 9.500 % to 12.500 %. Other assumptions utilized in the valuation model include, but are not limited to, prepayment speed, servicing costs, delinquencies, costs of advances, foreclosure costs, ancillary income, and income earned on float and escrow. 42 NOTE 5 – LEASES We have operating leases for 1 corporate office, 2 bank branch offices, and 1 ATM location. Our leases have remaining lease terms ranging from approximately 0.33 to 2.25 years. Some of the leases include an option to extend, the longest of which is for two 5 year terms. As of June 30, 2026, we have no lease commitments that have not yet commenced. The Company also leases a portion of some of its facilities and receives rental income from such lease agreements, all of which are considered operating leases. Three Months Ended June 30, 2026 June 30, 2025 The components of total lease cost were as follows: Operating lease cost $ 214 $ 204 Variable lease cost 40 42 Total lease cost $ 254 $ 246 The components of total lease income were as follows: Operating lease income $ 28 $ 43 Supplemental cash flow information related to leases was as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 251 $ 252 June 30, 2026 December 31, 2025 Supplemental balance sheet information related to leases was as follows: Operating lease right-of-use assets (1) $ 561 $ 764 Operating lease liabilities (2) $ 633 $ 950 Weighted average remaining lease term in years; operating leases 1.92 2.30 Weighted average discount rate; operating leases 3.40 % 3.39 % (1) Operating lease right-of-use assets are recorded as other assets in the consolidated balance sheets. (2) Operating lease liabilities are recorded as other liabilities in the consolidated balance sheets. Cash obligations and receipts under lease contracts are as follows: Fiscal years ending December 31, Payments Receipts 2026 $ 223 $ 23 2027 392 31 2028 176 31 2029 — 18 Thereafter — — Total 791 $ 103 Less: effects of discounting ( 158 ) Lease liability recognized $ 633 In March 2026, our lease for a former bank branch office was terminated. The $ 112 gain on termination of this lease was recorded in other non-interest income in the consolidated statements of operations. 43 NOTE 6 – DEPOSITS The following is a summary of deposits by type at June 30, 2026 and December 31, 2025, respectively: June 30, 2026 December 31, 2025 Non-interest bearing demand deposits $ 274,822 $ 264,394 Interest bearing demand deposits 384,101 367,958 Savings accounts 145,390 151,525 Money market accounts 408,305 392,900 Certificate accounts 341,799 347,322 Total deposits $ 1,554,417 $ 1,524,099 At June 30, 2026, the scheduled maturities of certificate accounts were as follows for the year ended, except December 31, 2026, which is the six months ended: December 31, 2026 $ 231,708 December 31, 2027 106,473 December 31, 2028 1,720 December 31, 2029 1,237 December 31, 2030 354 After December 31, 2030 307 Total $ 341,799 Certificate accounts of $250 or more were $ 53,501 and $ 57,136 at June 30, 2026 and December 31, 2025, respectively. Brokered deposits were $ 5,229 at June 30, 2026 and consisted of no brokered certificate accounts and $ 5,229 of brokered money market accounts. Brokered deposits were $ 5,168 at December 31, 2025 and consisted of no brokered certificate accounts and $ 5,168 of brokered money market accounts. 44 NOTE 7 – FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS A summary of Federal Home Loan Bank advances and other borrowings at June 30, 2026 and December 31, 2025, is as follows: June 30, 2026 December 31, 2025 Stated Maturity Amount Range of Stated Rates Stated Maturity Amount Range of Stated Rates Federal Home Loan Bank advances (1), (2), (3) 2026 $ 0 — % — % 2025 $ 0 — % — % Federal Home Loan Bank advances $ 0 $ 0 Senior Notes (4) 2039 $ 12,000 6.00 % 6.00 % 2039 $ 12,000 6.00 % 6.75 % 2040 $ 5,000 6.00 % 6.00 % 2040 $ 5,000 6.00 % 6.25 % $ 17,000 $ 17,000 Subordinated Notes (5) 2030 $ 0 — % — % 2030 $ 0 — % — % 2032 35,000 4.75 % 4.75 % 2032 35,000 4.75 % 4.75 % $ 35,000 $ 35,000 Unamortized debt issuance costs ( 115 ) ( 196 ) Total other borrowings $ 51,885 $ 51,804 Totals $ 51,885 $ 51,804 (1) The FHLB advances bear fixed rates, require interest-only monthly payments, and are collateralized by a blanket lien on pre-qualifying first mortgages, home equity lines, multi-family loans, and certain other loans which had pledged balances of $ 1,054,168 and $ 1,017,631 at June 30, 2026 and December 31, 2025, respectively. At June 30, 2026, the Bank’s available and unused portion under the FHLB borrowing arrangement was approximately $ 427,527 compared to $ 433,654 as of December 31, 2025. (2) Maximum month-end borrowed amounts outstanding under this borrowing agreement were $ 0 and $ 5,000 , during the six months ended June 30, 2026 and the twelve months ended December 31, 2025, respectively. (3) There were no FHLB borrowings outstanding as of June 30, 2026 and December 31, 2025. (4) Senior notes, entered into by the Company consist of the following: (a) A $ 12,000 term note, which was originally entered into in June 2019 and subsequently refinanced in March 2022, modified in February 2023, and refinanced in May 2024, requiring quarterly interest-only payments through January 2029, and quarterly principal and interest payments thereafter. Interest is variable, based on US Prime rate minus 75 basis points with a floor rate of 3.00 %. (b) A $ 5,000 term note entered into in October 2025, requiring quarterly interest-only payments through October 2028, and quarterly principal and interest payments thereafter. Interest is variable, based on US Prime rate minus 75 basis points with a floor rate of 4.00 %. (5) Subordinated notes resulted from the following: (a) The Company’s Subordinated Note Purchase Agreement entered into with certain purchasers in August 2020, which bore a fixed interest rate of 6.00 % for five years . On July 7, 2025, the Board of Directors approved the redemption of the entire $ 15,000 balance of the 6 % subordinated debentures due September 1, 2030, which were scheduled to reprice on September 1, 2025, to the Secured Overnight Financing Rate (“SOFR”) plus 591 basis points. The redemption occurred on September 1, 2025. (b) The Company’s Subordinated Note Purchase Agreement entered into with certain purchasers in March 2022, which bears a fixed interest rate of 4.75 % for five years . In April 2027, the fixed interest rate will be reset quarterly to equal the 45 three-month term SOFR plus 329 basis points. The note is callable by the Company when, and anytime after, the floating rate is initially set. Interest-only payments are due semi-annually each year during the fixed interest period and quarterly during the floating interest period. Federal Home Loan Bank Letters of Credit The Bank has an irrevocable Standby Letter of Credit Master Reimbursement Agreement with the Federal Home Loan Bank. This irrevocable standby letter of credit (“LOC”) is supported by loan collateral as an alternative to directly pledging investment securities on behalf of a municipal customer as collateral for their interest bearing deposit balances. The LOC balances were $ 192,500 and $ 171,000 at June 30, 2026 and December 31, 2025, respectively. Federal Reserve Borrowings At June 30, 2026 and December 31, 2025, the Bank had the ability to borrow $ 23,672 and $ 24,484 from the Federal Reserve Bank of Minneapolis. The ability to borrow is based on mortgage-backed securities pledged with a carrying value of $ 31,118 and $ 32,056 as of June 30, 2026 and December 31, 2025, respectively. There were no Federal Reserve borrowings outstanding as of June 30, 2026, and December 31, 2025. Federal Funds Purchased Lines of Credit As of June 30, 2026 and December 31, 2025, the Bank maintained two unsecured federal funds purchased lines of credit with its banking partners which totaled $ 70,000 . These lines bear interest at the lender bank’s announced daily federal funds rate, mature daily and are revocable at the discretion of the lending institution. There were no borrowings outstanding on these lines of credit as of June 30, 2026, or December 31, 2025. 46 NOTE 8 - CAPITAL MATTERS Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. Although these terms are not used to represent overall financial condition, if adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At June 30, 2026, the Bank was categorized as “Well Capitalized”, under Prompt Corrective Action Provisions. The Bank’s Tier 1 (leverage) and risk-based capital ratios at June 30, 2026 and December 31, 2025, respectively, are presented below: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio As of June 30, 2026 Total capital (to risk weighted assets) $ 217,120 14.2 % $ 122,375 > = 8.0 % $ 152,969 > = 10.0 % Tier 1 capital (to risk weighted assets) 197,910 12.9 % 91,781 > = 6.0 % 122,375 > = 8.0 % Common equity tier 1 capital (to risk weighted assets) 197,910 12.9 % 68,836 > = 4.5 % 99,430 > = 6.5 % Tier 1 leverage ratio (to adjusted total assets) 197,910 11.2 % 70,602 > = 4.0 % 88,252 > = 5.0 % As of December 31, 2025 Total capital (to risk weighted assets) $ 212,898 14.6 % $ 116,492 > = 8.0 % $ 145,615 > = 10.0 % Tier 1 capital (to risk weighted assets) 194,639 13.4 % 87,369 > = 6.0 % 116,492 > = 8.0 % Common equity tier 1 capital (to risk weighted assets) 194,639 13.4 % 65,527 > = 4.5 % 94,650 > = 6.5 % Tier 1 leverage ratio (to adjusted total assets) 194,639 11.3 % 68,711 > = 4.0 % 85,888 > = 5.0 % 47 The Company’s Tier 1 (leverage) and risk-based capital ratios at June 30, 2026 and December 31, 2025, respectively, are presented below: Actual For Capital Adequacy Purposes Amount Ratio Amount Ratio As of June 30, 2026 Total capital (to risk weighted assets) $ 225,950 14.7 % $ 122,605 > = 8.0 % Tier 1 capital (to risk weighted assets) 171,704 11.2 % 91,954 > = 6.0 % Common equity tier 1 capital (to risk weighted assets) 171,704 11.2 % 68,965 > = 4.5 % Tier 1 leverage ratio (to adjusted total assets) 171,704 9.7 % 70,715 > = 4.0 % As of December 31, 2025 Total capital (to risk weighted assets) $ 222,910 15.3 % $ 116,686 > = 8.0 % Tier 1 capital (to risk weighted assets) 169,621 11.6 % 87,514 > = 6.0 % Common equity tier 1 capital (to risk weighted assets) 169,621 11.6 % 65,636 > = 4.5 % Tier 1 leverage ratio (to adjusted total assets) 169,621 9.9 % 68,806 > = 4.0 % 48 NOTE 9 – STOCK-BASED AND OTHER COMPENSATION On March 27, 2018, the stockholders of Citizens Community Bancorp, Inc. approved the 2018 Equity Incentive Plan. The aggregate number of shares of common stock initially reserved and available for issuance under the 2018 Equity Incentive Plan was 350,000 shares. As of June 30, 2026, no stock options were granted under this plan and 349,648 restricted shares were granted under this plan. This amount includes 11,180 shares of performance based restricted stock granted in 2023 and issued in January 2026 upon achievement of the performance criteria and completion of the three-year performance period beginning in January 2023 and ending December 31, 2025. The amount also includes 16,021 shares of performance based restricted stock granted in 2022 and issued in January 2025 upon achievement of the performance criteria and completion of the three year performance period beginning in January 2022 and ending December 31, 2024. On June 16, 2026, the stockholders of Citizens Community Bancorp, Inc. approved the 2026 Omnibus Incentive Plan for a term of 10 years. The aggregate number of shares of common stock initially reserved and available for issuance under the 2026 Omnibus Incentive Plan was 300,000 shares. As of June 30, 2026, no shares and no stock options had been granted under this plan. As of June 16, 2026, the remaining 352 shares authorized to be issued under the 2018 Equity Incentive Plan were cancelled upon approval of the 2026 Omnibus Incentive Plan. In February 2008, the Company’s stockholders approved the Company’s 2008 Equity Incentive Plan for a term of 10 years. Due to the plan’s expiration, no new awards can be granted under this plan. As of June 30, 2026, there are no awarded unvested restricted shares, and 14,500 awarded unexercised vested options remaining from the plan. Options granted under this plan vested pro rata over a five-year period from the grant date and were fully vested as of October 2022. Unexercised incentive stock options expire within 10 years of the grant date. Stock based compensation expense related to restricted stock awards from these plans was $ 8 and $ 12 for the three and six months ended June 30, 2026, compared to $ 34 and $ 102 for the three and six months ended June 30, 2025. Restricted Common Stock Award June 30, 2026 December 31, 2025 Number of Shares Weighted Average Grant Price Number of Shares Weighted Average Grant Price Restricted Shares Unvested and outstanding at beginning of year 6,109 $ 12.36 39,171 $ 12.48 Granted 6,500 20.63 — — Issued and vested ( 6,109 ) 12.36 ( 33,062 ) 12.50 Forfeited — — — — Unvested and outstanding at end of period 6,500 $ 20.63 6,109 $ 12.36 June 30, 2026 Number of Shares Weighted Average Grant Price Performance Based Restricted Shares Unvested at beginning of year 18,321 $ 12.36 2023 performance shares below target ( 7,141 ) 12.36 Issued and vested ( 11,180 ) 12.36 Unvested at end of period — $ — 49 December 31, 2025 Number of Shares Weighted Average Grant Price Performance Based Restricted Shares Unvested at beginning of year 33,188 $ 13.09 2022 performance shares granted above target 1,154 14.00 Issued and vested ( 16,021 ) 14.00 Unvested at end of period 18,321 $ 12.36 Common Stock Option Awards Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Aggregate Intrinsic Value June 30, 2026 Outstanding at beginning of year 35,500 $ 11.98 Exercised ( 21,000 ) 10.79 Outstanding at end of period 14,500 $ 13.69 1.23 $ 141 Exercisable at end of period 14,500 $ 13.69 1.23 $ 141 December 31, 2025 Outstanding at beginning of year 52,000 11.62 Exercised ( 16,500 ) 10.84 Outstanding at end of year 35,500 11.98 1.06 207 Exercisable at end of year 35,500 $ 11.98 1.06 $ 207 Information related to the 2008 Equity Incentive Plan for the respective periods follows: Six months ended June 30, 2026 Twelve months ended December 31, 2025 Intrinsic value of options exercised $ 197 $ 84 Cash received from options exercised $ 227 $ 179 Tax benefit realized from options exercised $ — $ — Other Compensation On January 22, 2026, the Company’s board of directors approved a phantom stock plan as part of the Company’s long-term incentive plan. The plan allows certain employees to earn future cash awards linked to the company’s future common share price for time and performance based cash awards. The performance based cash awards vest based on a combination of a three-year time period from January 22, 2026 through December 31, 2028, and performance targets based on the Company’s return on equity. For performance based awards, the ultimate cash payout of these awards will be paid within 60 days of December 31, 2028, based on the closing share price of the Company’s common stock as of the performance achievement approval date from the Compensation Committee. The time based cash awards vest ratably over a three-year time period. For time based awards, the ultimate cash payout of these awards will be based on the closing share price of the Company’s common stock on the anniversary of the award date each year. On January 22, 2026, time based awards were based on 14,743 shares and performance based awards were based on 14,748 shares. On January 23, 2025, the Company’s board of directors approved a phantom stock plan as part of the Company’s long-term incentive plan. The plan allows certain employees to earn future cash awards linked to the company’s future common share price for time and performance based cash awards. The performance based cash awards vest based on a combination of a three-year time period from January 23, 2025 through December 31, 2027, and performance targets based on the Company’s return on equity. For performance based awards, the ultimate cash payout of these awards will be paid within 60 days of December 31, 2027, based on the closing share price of the Company’s common stock as of the performance achievement approval date from the Compensation Committee. The time based cash awards vest ratably over a three-year time period. For 50 time based awards, the ultimate cash payout of these awards will be based on the closing share price of the Company’s common stock on the anniversary of the award date each year. On January 23, 2025, time based awards were based on 15,044 shares and performance based awards were based on 15,049 shares. On January 25, 2024, the Company’s board of directors approved a phantom stock plan as part of the Company’s long-term incentive plan. The Plan allows certain employees to earn future cash awards linked to the company’s future common share price for time and performance based cash awards. The performance based cash awards vest based on a combination of a three-year time period from January 25, 2024 through December 31, 2026, and performance targets based on the Company’s return on equity. For performance based awards, the ultimate cash payout of these awards will be paid within 60 days of December 31, 2026, based on the closing share price of the Company’s common stock as of the performance achievement approval date from the Compensation Committee. The time based cash awards vest ratably over a three-year time period. For time based awards, the ultimate cash payout of these awards will be based on the closing share price of the Company’s common stock on the anniversary of the award date each year. On January 25, 2024, time based awards were based on 18,509 shares and performance based awards were based on 18,505 shares. At the end of each reporting period, the Company estimates its potential liability related to the plan and records any change to this liability as compensation expense in the consolidated statement of operations. At June 30, 2026 and December 31, 2025, the related liability was $ 752 and $ 494 , respectively, which is included in other liabilities on the consolidated balance sheet. For the three months ended June 30, 2026 and June 30, 2025, the Company recorded related expense of $ 275 and $ 72 , respectively, which is included in compensation and related benefits/non-interest expense on the Company’s consolidated statement of operations. For the six months ended June 30, 2026 and June 30, 2025, the Company recorded related expense of $ 461 and $ 131 , respectively, which is included in compensation and related benefits/non-interest expense on the Company’s consolidated statement of operations. 51 NOTE 10 – FAIR VALUE ACCOUNTING ASC Topic 820-10, “ Fair Value Measurements and Disclosures ” establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The topic describes three levels of inputs that may be used to measure fair value: Level 1- Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. Level 2- Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3- Significant unobservable inputs that reflect the Company’s assumptions about the factors that market participants would use in pricing an asset or liability. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the fair value measurement. The fair value of securities available-for-sale is determined by obtaining market price quotes from independent third parties wherever such quotes are available (Level 1 inputs); or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). Where such quotes are not available, we utilize independent third party valuation analysis to support our own estimates and judgments in determining fair value (Level 3 inputs). 52 Assets Measured on a Recurring Basis The following tables present the financial instruments measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025: Fair Value Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2026 Investment securities: U.S. government agency obligations $ 7,229 $ — $ 7,229 $ — Mortgage-backed securities 63,988 — 63,988 — Corporate debt securities 42,504 — 42,504 — Student loan asset-backed securities 14,714 — 14,714 — Total investment securities 128,435 — 128,435 — Equity Investments: Farmer Mac equity securities 571 571 — — Preferred equity 1,125 — — 1,125 Equity investments measured at NAV(1) 4,591 — — — Total equity investments 6,287 571 — 1,125 Total $ 134,722 $ 571 $ 128,435 $ 1,125 December 31, 2025 Investment securities: U.S. government agency obligations $ 10,773 $ — $ 10,773 $ — Mortgage-backed securities 66,684 — 66,684 — Corporate debt securities 40,682 — 40,682 — Student loan asset-backed securities 15,964 — 15,964 — Total investment securities 134,103 — 134,103 — Equity Investments: Farmer Mac equity securities 505 505 — — Preferred equity 1,125 — — 1,125 Equity investments measured at NAV(1) 4,210 — — — Total equity investments 5,840 505 — 1,125 Total $ 139,943 $ 505 $ 134,103 $ 1,125 (1) Investments valued at NAV are excluded from being reported under the fair value hierarchy but are presented to permit reconciliation with the balance sheet in accordance with ASC 820-10-35-54B. At June 30, 2026 and December 31, 2025, the Company owned $ 1,125 preferred equity investments for which the Company utilized significant unobservable inputs (Level 3 inputs) to determine fair value. There were no transfers in or out of Level 1, Level 2 or Level 3 fair value measurements relating to the available-for-sale securities above during the three and six month periods ended June 30, 2026 and June 30, 2025. There were no losses included in earnings attributable to the change in unrealized gains or losses relating to the available-for-sale securities above with fair value measurements utilizing significant unobservable inputs for the three and six month periods ended June 30, 2026 and June 30, 2025. 53 Assets Measured on Nonrecurring Basis The following tables present the financial instruments measured at fair value on a nonrecurring basis as of June 30, 2026 and December 31, 2025: Carrying Value Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2026 Foreclosed and repossessed assets, net $ 850 $ — $ — $ 850 Collateral dependent loans 15,013 — — 15,013 Total $ 15,863 $ — $ — $ 15,863 December 31, 2025 Foreclosed and repossessed assets, net $ 857 $ — $ — $ 857 Collateral dependent loans 10,360 — — 10,360 Total $ 11,217 $ — $ — $ 11,217 The fair value of foreclosed and repossessed assets was determined by obtaining market price valuations from independent third parties wherever such quotes were available for other collateral owned. The Company utilized independent third party appraisals to support the Company’s estimates and judgments in determining fair value for other real estate owned. The fair value of collateral dependent loans with allowances was determined by obtaining independent third party appraisals and/or internally developed collateral valuations to support the Company’s estimates and judgments in determining the fair value of the underlying collateral supporting impaired loans. 54 The following table represents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine their fair value at June 30, 2026 and December 31, 2025: Fair Value Valuation Techniques (1) Significant Unobservable Inputs (2) Range June 30, 2026 Foreclosed and repossessed assets, net $ 850 Appraisal value Estimated costs to sell 10 % - 15 % Collateral dependent loans $ 15,013 Appraisal value / Internal Collateral valuations Estimated costs to sell 10 % - 15 % December 31, 2025 Foreclosed and repossessed assets, net $ 857 Appraisal value Estimated costs to sell 10 % - 15 % Collateral dependent loans $ 10,360 Appraisal value / Internal Collateral valuations Estimated costs to sell 10 % - 15 % (1) Fair value is generally determined through independent third-party appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable. (2) The fair value basis of collateral dependent loans, and real estate owned may be adjusted to reflect management estimates of disposal costs including, but not limited to, real estate brokerage commissions, legal fees, and delinquent property taxes. 55 The table below represents what we would receive to sell an asset or what we would have to pay to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying value of restricted FRB and FHLB stock approximates fair value based on the redemption provisions of each entity and is therefore excluded from the table below. The carrying amount and estimated fair value of the Company’s financial instruments as of the dates indicated below were as follows: June 30, 2026 December 31, 2025 Valuation Method Used Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Financial assets: Cash and cash equivalents (Level I) $ 121,762 $ 121,762 $ 118,853 $ 118,853 Securities available-for-sale “AFS” (Level II) 128,435 128,435 134,103 134,103 Securities held-to-maturity “HTM” (Level II) 77,415 61,481 80,210 64,117 Farmer Mac equity securities (Level I) 571 571 505 505 Preferred equity (Level III) 1,125 1,125 1,125 1,125 Equity investments valued at NAV(1) N/A 4,591 N/A 4,210 N/A Other investments (Level II) 12,485 12,485 12,506 12,506 Loans receivable, net (Level III) 1,357,076 1,343,743 1,317,924 1,297,841 Loans held for sale - Residential mortgage (Level I) 941 941 2,338 2,338 Loans held for sale - SBA /FSA (Level II) — — 2,616 2,616 Mortgage servicing rights (Level III) 3,453 5,108 3,494 4,652 Accrued interest receivable (Level I) 6,180 6,180 6,126 6,126 Financial liabilities: Deposits (excluding demand deposits) (Level III) $ 895,494 $ 895,099 $ 891,747 $ 891,663 FHLB advances (Level II) — — — — Other borrowings (Level II) 51,885 50,950 51,804 49,988 Accrued interest payable (Level I) 3,126 3,126 3,680 3,680 (1) Investments valued at NAV are excluded from being reported under the fair value hierarchy but are presented to permit reconciliation with the balance sheet in accordance with ASC 820-10-35-54B. 56 NOTE 11— EARNINGS PER SHARE Earnings per share is based on the weighted average number of shares outstanding for the period. A reconciliation of the basic and diluted earnings per share is as follows: Three Months Ended Six Months Ended (Share count in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Basic Net income attributable to common stockholders $ 1,102 $ 3,270 $ 4,857 $ 6,467 Weighted average common shares outstanding 9,642 9,989 9,634 9,989 Basic earnings per share $ 0.11 $ 0.33 $ 0.50 $ 0.65 Diluted Net income attributable to common stockholders $ 1,102 $ 3,270 $ 4,857 $ 6,467 Weighted average common shares outstanding 9,642 9,989 9,634 9,989 Add: Dilutive stock options outstanding 5 8 4 10 Average shares and dilutive potential common shares 9,647 9,997 9,638 9,999 Diluted earnings per share $ 0.11 $ 0.33 $ 0.50 $ 0.65 Dilutive shares outstanding consist of exercisable stock options whose strike prices were less than the quarterly average closing price of the Company’s common stock. At June 30, 2026 and June 30, 2025, there were no exercisable stock options with a potentially dilutive effect excluded from diluted shares outstanding. All exercisable stock options had stock prices less than the quarterly average closing price of the Company’s common stock. 57 NOTE 12 – OTHER COMPREHENSIVE INCOME The following tables show the tax effects allocated to each component of other comprehensive income for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, 2026 June 30, 2025 Before-Tax Amount Tax Benefit (Expense) Net-of-Tax Amount Before-Tax Amount Tax Benefit (Expense) Net-of-Tax Amount Unrealized gains on securities: Net unrealized gains arising during the period $ 344 $ ( 129 ) $ 215 $ 133 $ ( 52 ) $ 81 Other comprehensive income $ 344 $ ( 129 ) $ 215 $ 133 $ ( 52 ) $ 81 Six Months Ended June 30, 2026 June 30, 2025 Before-Tax Amount Tax Benefit (Expense) Net-of-Tax Amount Before-Tax Amount Tax Benefit (Expense) Net-of-Tax Amount Unrealized gains on securities: Net unrealized gains arising during the period $ 668 $ ( 224 ) $ 444 $ 2,023 $ ( 487 ) $ 1,536 Other comprehensive income $ 668 $ ( 224 ) $ 444 $ 2,023 $ ( 487 ) $ 1,536 The changes in the accumulated balances for each component of other comprehensive income, net of tax for the twelve months ended December 31, 2025 and the six months ended June 30, 2026 were as follows: Unrealized Gains (Losses) on AFS Securities Other Accumulated Comprehensive Income (Loss), net of tax Ending Balance, December 31, 2024 $ ( 22,753 ) $ ( 16,420 ) Current year-to-date other comprehensive income 5,238 3,953 Ending balance, December 31, 2025 $ ( 17,515 ) $ ( 12,467 ) Current year-to-date other comprehensive income 668 444 Ending balance, June 30, 2026 $ ( 16,847 ) $ ( 12,023 ) There were no reclassifications out of accumulated other comprehensive income for the three and six month periods ended June 30, 2026 and June 30, 2025. 58 NOTE 13 – SEGMENT INFORMATION The Company’s reportable segment is determined by the Chief Financial Officer, who is the designated chief operating decision maker (the “Chief Operating Decision Maker”), based upon information provided about the performance of products and services offered in its banking operations. Banking operations consist primarily of lending, deposit and investment activities. The segment is also distinguished by the level of information provided to the chief operating decision maker, who uses such information to review the performance of various components of the business. Components of the Company’s business include various lending and deposit product offerings, the Company’s investment portfolio, banking branches and market geographies. The Chief Operating Decision Maker will evaluate the financial performance of the Company’s business components, such as by evaluating revenue, interest margins, significant expenses, and budget to actual operating results in assessing the Company’s segment and in determining the allocation of resources. The Chief Operating Decision Maker uses consolidated net income to benchmark the Company against competitors. Loans, investments, and deposits provide the revenue streams of the banking operation. Interest expense, provisions for credit losses, and compensation costs provide the significant expenses of the operation. All operations are domestic. Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Interest and dividend income $ 22,034 $ 22,502 $ 43,550 $ 43,605 Reconciliation of revenue Other Revenue 2,607 2,836 5,706 5,429 Total consolidated revenues 24,641 25,338 49,256 49,034 Less: Interest expense 8,530 9,191 17,036 18,700 Segment net interest income and non-interest income 16,111 16,147 32,220 30,334 Less: Provision for credit losses 4,325 1,350 5,075 1,100 Compensation and related benefits (expense) 5,712 6,008 11,778 11,605 Other expenses 4,837 4,742 9,498 9,608 Provision for income taxes (expense) 135 777 1,012 1,554 Segment net income/consolidated net income $ 1,102 $ 3,270 $ 4,857 $ 6,467 Other segment disclosures: Interest income $ 22,034 $ 22,502 $ 43,550 $ 43,605 Interest expense $ 8,530 $ 9,191 $ 17,036 $ 18,700 Depreciation $ 487 $ 518 $ 961 $ 1,044 Amortization $ 113 $ 179 $ 226 $ 358 Other significant noncash items: Provision for credit losses $ 4,325 $ 1,350 $ 5,075 $ 1,100 Reconciliation of assets: June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Total assets for reportable segments $ 1,814,309 $ 1,735,164 $ 1,814,309 $ 1,735,164 Other assets — — — — Total consolidated assets $ 1,814,309 $ 1,735,164 $ 1,814,309 $ 1,735,164 59