Forbright, Inc. 10-Q

Item 1. Financial Statements (Unaudited) FORBRIGHT, INC. AND SUBSIDIARIES Consolidated Balance Sheets (dollars in thousands, except per share amounts) June 30, 2026 December 31, 2025 (Unaudited) ASSETS Cash, due from banks and restricted cash $ 26,524 $ 18,241 Interest-bearing deposits with banks 808,192 630,474 Cash, cash equivalents and restricted cash 834,716 648,715 Investment securities available-for-sale, at fair value 1,210,665 1,254,887 Investment securities held-to-maturity, at amortized cost, net of allowance for credit losses - investment securities of $ 110 , respectively 48,634 48,834 Loans held-for-sale 465,474 379,662 Loans held for investment, at fair value 3,481 4,645 Loans and held for investment, at amortized cost 5,595,872 5,222,234 Allowance for credit losses - loan ( 54,621 ) ( 52,986 ) Net loans held for investment, at amortized cost 5,541,251 5,169,248 Other earning assets, net 50,479 55,928 Deferred tax asset, net 145,269 153,314 Accrued interest receivable 46,445 55,155 Premises and equipment, net 47,877 30,763 Goodwill and other intangible assets, net 35,964 31,685 Other assets 75,249 56,470 Total assets $ 8,505,504 $ 7,889,306 LIABILITIES Non-interest-bearing deposits $ 435,065 $ 372,444 Interest-bearing deposits 6,830,770 6,405,471 Total deposits 7,265,835 6,777,915 Subordinated debt, net 151,181 151,003 Other liabilities 121,325 137,945 Total liabilities 7,538,341 7,066,863 Commitments and contingent liabilities (Note 14) STOCKHOLDERS’ EQUITY Preferred stock, $ 0.001 par value per share; 5,000,000 shares authorized; no shares issued and outstanding — — Common stock, $ 0.001 par value per share; 103,200,000 shares authorized: Voting common stock, 28,949,031 and 19,438,060 shares issued and outstanding, respectively 29 20 Non-voting common stock, 20,748,177 and 21,242,551 shares issued and outstanding, respectively 21 21 Additional paid-in capital 628,499 490,550 Retained earnings 344,582 328,828 Accumulated other comprehensive (loss)/income ( 5,968 ) 3,024 Total stockholders’ equity 967,163 822,443 Total liabilities and stockholders’ equity $ 8,505,504 $ 7,889,306 1 FORBRIGHT, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) For the Three Months Ended For the Six Months Ended (dollars in thousands, except per share amounts) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 INTEREST INCOME Loans held for investment $ 98,522 $ 89,601 $ 191,686 $ 175,759 Loans held-for-sale 8,484 10,384 16,678 19,822 Deposits with banks 7,252 7,247 14,834 14,576 Investment securities 14,158 15,262 28,257 32,261 Other earning assets 648 804 1,364 1,776 Total interest income 129,064 123,298 252,819 244,194 INTEREST EXPENSE Deposits 64,024 58,719 126,319 115,205 Subordinated debt, net 1,895 2,441 3,797 4,942 Other borrowings — 417 — 1,266 Total interest expense 65,919 61,577 130,116 121,413 Net interest income 63,145 61,721 122,703 122,781 Provision for credit losses 5,899 4,090 9,372 12,549 Net interest income after provision for credit losses 57,246 57,631 113,331 110,232 NON-INTEREST INCOME Servicing income 6,876 — 13,963 — Investment advisory fees 3,090 4,182 6,283 8,498 Fee income on loans 2,252 2,390 4,255 3,831 Gains on sales of loans and investment securities, net 252 344 218 2,170 Unrealized (losses)/gains on loans and financing receivables, net ( 963 ) 883 ( 2,298 ) 2,746 Other non-interest income 10,339 3,438 15,009 8,047 Total non-interest income 21,846 11,237 37,430 25,292 NON-INTEREST EXPENSE Compensation and benefits 33,407 30,338 65,049 60,440 Information technology 7,581 6,885 15,121 12,896 Professional fees 9,777 2,800 17,600 6,542 Loan administration and servicing 5,500 1,089 9,625 2,756 Advertising and marketing 2,720 1,220 5,024 4,539 FDIC insurance 1,111 687 2,013 3,349 Occupancy expense 1,466 1,165 2,588 2,497 Other non-interest expense 4,214 4,071 7,213 6,896 Total non-interest expense 65,776 48,255 124,233 99,915 Income before income taxes 13,316 20,613 26,528 35,609 Income tax expense 9,194 5,504 10,774 9,373 Net income $ 4,122 $ 15,109 $ 15,754 $ 26,236 2 FORBRIGHT, INC. AND SUBSIDIARIES Consolidated Statements of Income - (continued) (Unaudited) For the Three Months Ended For the Six Months Ended (dollars in thousands, except per share amounts) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Basic earnings per voting common share $ 0.10 $ 0.38 $ 0.38 $ 0.65 Basic earnings per non-voting common share $ 0.10 $ 0.38 $ 0.39 $ 0.65 Diluted earnings per voting common share $ 0.09 $ 0.37 $ 0.36 $ 0.63 Diluted earnings per non-voting common share $ 0.09 $ 0.37 $ 0.37 $ 0.63 Weighted-average shares used to compute earnings per voting common share: Basic 21,175,037 19,000,131 20,120,097 18,993,327 Diluted 23,498,322 20,042,883 22,344,262 20,157,743 Weighted-average shares used to compute earnings per non-voting common share, basic and diluted 21,014,378 21,242,551 21,127,834 21,242,551 3 FORBRIGHT, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (Unaudited) For the Three Months Ended For the Six Months Ended (in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Net income $ 4,122 $ 15,109 $ 15,754 $ 26,236 Other comprehensive loss, net: Net change in unrealized (loss)/gain on investment securities available-for-sale ( 4,837 ) ( 2,511 ) ( 12,126 ) 448 Related income tax effect 1,249 640 3,134 ( 107 ) Reclassification of gain on investment securities available-for-sale to income — — — ( 1,194 ) Related income tax effect — — — 301 Total other comprehensive loss, net ( 3,588 ) ( 1,871 ) ( 8,992 ) ( 552 ) Total comprehensive income $ 534 $ 13,238 $ 6,762 $ 25,684 4 FORBRIGHT, INC. AND SUBSIDIARIES Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) Voting Common stock Non-voting Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income/(loss) Total (dollars in thousands) Shares Amount Shares Amount Balance as of March 31, 2026 19,605,006 $ 20 21,242,551 $ 21 $ 493,074 $ 340,460 $ ( 2,380 ) $ 831,195 Net income — — — — — 4,122 — 4,122 Other comprehensive loss, net of tax — — — — — — ( 3,588 ) ( 3,588 ) Total comprehensive income 534 Issuance of common stock, net of offering costs 7,900,000 8 — — 131,038 — — 131,046 Exercise of stock options 36,400 — — — 552 — — 552 Stock-based compensation 943,125 1 — — 4,437 — — 4,438 Conversion of non-voting to voting common stock 494,374 — ( 494,374 ) — — — — — Shares withheld for tax withholding and exercise of stock options and restricted shares ( 29,874 ) — — — ( 602 ) — — ( 602 ) Balance as of June 30, 2026 28,949,031 $ 29 20,748,177 $ 21 $ 628,499 $ 344,582 $ ( 5,968 ) $ 967,163 Balance as of March 31, 2025 19,013,529 $ 19 21,242,551 $ 21 $ 483,414 $ 252,029 $ 876 $ 736,359 Net income — — — — — 15,109 — 15,109 Other comprehensive loss, net of tax — — — — — — ( 1,871 ) ( 1,871 ) Total comprehensive income 13,238 Exercise of stock options 53,200 — — — 672 — — 672 Stock-based compensation 363,522 1 — — 2,266 — — 2,267 Shares withheld for tax withholding and exercise of stock options and restricted shares ( 14,360 ) — — — ( 240 ) — — ( 240 ) Balance as of June 30, 2025 19,415,891 $ 20 21,242,551 $ 21 $ 486,112 $ 267,138 $ ( 995 ) $ 752,296 5 Voting Common stock Non-voting Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income/(loss) Total (dollars in thousands) Shares Amount Shares Amount Balance as of December 31, 2025 19,438,060 $ 20 21,242,551 $ 21 $ 490,550 $ 328,828 $ 3,024 $ 822,443 Net income — — — — — 15,754 — 15,754 Other comprehensive loss, net of tax — — — — — — ( 8,992 ) ( 8,992 ) Total comprehensive income 6,762 Issuance of common stock, net of offering costs 7,900,000 8 — — 131,038 — — 131,046 Exercise of stock options 36,400 — — — 552 — — 552 Stock-based compensation 1,124,985 1 — — 7,261 — — 7,262 Conversion of non-voting to voting common stock 494,374 — ( 494,374 ) — — — — — Shares withheld for tax withholding on vesting of restricted shares ( 44,788 ) — — — ( 902 ) — — ( 902 ) Balance as of June 30, 2026 28,949,031 $ 29 20,748,177 $ 21 $ 628,499 $ 344,582 $ ( 5,968 ) $ 967,163 Balance as of December 31, 2024 19,001,365 $ 19 21,242,551 $ 21 $ 481,455 $ 240,902 $ ( 443 ) $ 721,954 Net income — — — — — 26,236 — 26,236 Other comprehensive loss, net of tax — — — — — — ( 552 ) ( 552 ) Total comprehensive income 25,684 Exercise of stock options 93,200 — — — 1,044 — — 1,044 Stock-based compensation 363,522 1 — — 4,347 — — 4,348 Shares withheld for tax withholding and exercise of stock options and vesting of restricted shares ( 42,196 ) — — — ( 734 ) — — ( 734 ) Balance as of June 30, 2025 19,415,891 $ 20 21,242,551 $ 21 $ 486,112 $ 267,138 $ ( 995 ) $ 752,296 6 FORBRIGHT, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited) For the Six Months Ended (in thousands) June 30, 2026 June 30, 2025 OPERATING ACTIVITIES Net income $ 15,754 $ 26,236 Adjustments to reconcile net income to net cash provided by/(used in) operating activities: Depreciation and intangible asset amortization 4,788 4,216 Provision for credit losses 9,372 12,549 Accretion of net discounts on investment securities, net ( 3,048 ) ( 13,184 ) Amortization of deferred fees and costs on loans, net ( 12,693 ) ( 13,181 ) Increase in loans originated for sale, net ( 85,284 ) ( 17,092 ) Gains on sales of loans and investment securities, net ( 218 ) ( 2,170 ) Stock-based compensation 7,262 4,348 Deferred income taxes 11,179 — Other 6,681 112 Net change in assets and liabilities: Accrued interest receivable 8,710 ( 6,987 ) Other assets ( 20,242 ) ( 21,770 ) Other liabilities ( 4,764 ) ( 22,534 ) Net cash used in operating activities ( 62,503 ) ( 49,457 ) INVESTING ACTIVITIES Net increase in loans held for investment, at amortized cost ( 369,399 ) ( 505,826 ) Net decrease in loans held for investment, at fair value 1,953 1,215 Purchase of investment securities available-for-sale ( 247,521 ) ( 1,029,853 ) Proceeds, maturities, prepayments and calls of securities available-for-sale 282,665 1,252,917 Proceeds, maturities, prepayments and calls of securities held-to-maturity 200 186 Acquisition of corporate headquarters ( 37,440 ) — Proceeds from sales of other real estate owned 3,160 17,837 (Purchase of)/proceeds from Federal Home Loan Bank of Atlanta stock, net ( 473 ) 11,577 Other ( 4,806 ) ( 4,517 ) Net cash used in investing activities ( 371,661 ) ( 256,464 ) FINANCING ACTIVITIES Net increase in deposits 487,920 415,375 Repayment of subordinated debt — ( 24,000 ) Proceeds from other borrowings — 1,000,000 Repayments of other borrowings — ( 1,250,000 ) Gross proceeds from issuance of common stock 142,200 — Payment of offering costs ( 9,605 ) — Proceeds from exercise of stock options under employee stock plans 552 1,044 Shares withheld for tax withholding and exercise of stock options and restricted shares ( 902 ) ( 734 ) Net cash provided by financing activities 620,165 141,685 Net increase/(decrease) in cash, cash equivalents and restricted cash 186,001 ( 164,236 ) Beginning cash, cash equivalents and restricted cash 648,715 1,179,982 Ending cash, cash equivalents and restricted cash $ 834,716 $ 1,015,746 7 FORBRIGHT, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows - (continued) (Unaudited) For the Six Months Ended (in thousands) June 30, 2026 June 30, 2025 Supplemental cash flow disclosures: Interest payments $ 126,654 $ 120,519 Income tax payments, net of refunds of $ 563 and $ 377 , respectively $ 1,521 $ 1,186 Noncash investing activity: Net amount of right-of-use assets and lease liabilities applied to carrying value of corporate headquarters $ ( 3,576 ) $ — Loans held-for-sale transferred to loans held for investment (at fair value), net $ 151 $ 157 Loans held for investment (at amortized cost) transferred to loans held-for-sale, net $ 48 $ — Noncash financing activity: Accrued deferred initial public offering costs $ 1,549 $ — 8 FORBRIGHT, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Nature of Operations Forbright, Inc. (the “Parent”), a Delaware corporation, is a bank holding company that along with its subsidiaries (collectively the “Company”), is headquartered in Chevy Chase, Maryland. Forbright Bank (with its subsidiaries, the “Bank”), a wholly owned subsidiary of the Company, is a Maryland state chartered non-member bank, which serves the needs of individuals, small and medium sized businesses, and professional concerns. Nationwide, the Bank serves deposit and retail banking customers via its digital deposit platform and offers competitive financing and lending services, originating term loans, working capital facilities, warehouse lines of credit, and leases. Basis of Presentation and Principles of Consolidation The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. The Consolidated Balance Sheet as of December 31, 2025, has been derived from the audited Consolidated Financial Statements as of that date. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in the Company’s Registration Statement on Form S-1. Emerging Growth Company Status The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 ("JOBS Act"). Under the JOBS Act, emerging growth companies may delay adopting new or revised accounting standards until such time as those standards apply to private companies. The Company has elected to use this extended transition period for adoption of some accounting standards. As a result, these financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. Significant Accounting Policies There have been no material changes to the Company's significant accounting policies from those described in the annual Consolidated Financial Statements and footnotes included in the Company's Registration Statement on Form S-1, which should be referenced for a full list of the Company’s significant accounting policies. The following policies are highlighted due to updates or activity during the three and six months ended June 30, 2026. Concentrations of Credit Risk The Company’s portfolio consists primarily of commercial loans to small and medium-sized, privately owned businesses in a variety of industries and markets. As of June 30, 2026, the single largest industry concentration in the Company’s loan portfolio was healthcare. The Company does not have any concentrations involving loan products or loan terms. Additionally, the Company does not have concentrations of loans with negative amortization schedules, significant payment increases, or high loan-to-value ratios. 9 Segment Information Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the Chief Operating Decision Maker (“CODM”), the Company’s Chief Executive Officer, in deciding how to allocate resources and assessing performance. During the three and six months ended June 30, 2026 and 2025, all operations were within the United States. The CODM allocates resources and assesses performance based upon financial information at the entity-wide level. Since the CODM makes operating decisions and allocates resources on an entity-wide basis, the Company operates as one operating segment and one reportable segment. The primary financial measure used by the CODM to evaluate performance and allocate resources is consolidated net income as shown on the Consolidated Statements of Income. Segment expenses and other segment items are provided to the CODM on the same basis as disclosed in the Consolidated Statements of Income. Premises and Equipment Premises and equipment are reported at cost less accumulated depreciation and amortization. Depreciation and amortization are recorded using the straight-line method over the estimated useful life of the related asset as follows: buildings are depreciated over 39 years; furniture, fixtures, and computer and other equipment over three to 15 years; software over three years ; leasehold improvements and tenant improvements are recognized over the lesser of the estimated useful life of the improvement or the term of the associated lease. Maintenance and repairs are recognized as incurred in Occupancy expense in non-interest expense in the Consolidated Statements of Income. The Company has developed and implemented proprietary software for internal use of loan management and a digital banking platform. Although the loan management software has been implemented for its original use, the capabilities are continually expanded. As new capabilities are implemented the cost of the new capabilities are capitalized and amortized over the remaining useful life of the software. See Note 7 – Premises and Equipment for more information. Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the sum of the estimated fair values of tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed in a business combination. Goodwill is not amortized, but is evaluated for impairment, by analyzing certain qualitative factors to determine if it is more likely than not to be impaired. If it is determined that it is more likely than not that goodwill may be impaired, then a quantitative analysis is performed to calculate the amount of the impairment, if any. To the extent an impairment is calculated, it is recognized in earnings in the period of the impairment. Core deposit intangibles represent the estimated fair value of long-term acquired deposit relationships. Customer relationship intangibles represent the estimated fair value of acquired long-term customer relationships. The Company amortizes customer relationship intangible assets over the respective intangible asset’s estimated useful life, which ranges from eight years to 20 years for the Company’s currently amortizing intangible assets. In-place lease intangibles and above/below market rent intangibles are amortized over the life of the associated acquired lease. Amortization for above/below market rent intangibles is included as a reduction to Rental income in Other non-interest income in the Consolidated Statements of Income. All other amortization is included in Other non-interest expense in the Consolidated Statements of Income. Intangible assets are periodically reviewed for triggering events that would indicate possible impairment. The Company’s annual impairment test date is October 1st. As of October 1, 2025, the Company determined that goodwill and other intangible assets were not impaired. Additionally, the Company determined that from the assessment date to the end of the period, no events or circumstances have occurred that would indicate there was a more likely than not impairment of its goodwill or other intangible assets. See Note 8 – Goodwill and Other Intangible Assets for more information. 10 Leases Lessor In its capacity as a lessor, the Company accounts for lease arrangements in accordance with ASC 842 - Leases . Commercial office and retail space leases to third-party tenants located in the Company’s corporate headquarters are classified as operating leases. The underlying asset is included in Premises and equipment, net, in the Consolidated Balance Sheets, and is depreciated on a straight-line basis over the asset’s useful life. Fixed lease income is recognized on a straight-line basis over the non-cancelable term of the underlying lease as Other non-interest income in the Consolidated Statements of Income. See Note 9 – Leases for more information. Advertising Advertising costs are expensed as incurred and included in advertising and marketing in the Consolidated Statements of Income, and were $ 2.4 million and $ 4.5 million for the three and six months ended June 30, 2026, respectively, and $ 1.4 million and $ 4.0 million for the three and six months ended June 30, 2025, respectively. Income Taxes The Company accounts for income taxes in accordance with ASC 740 - Income Taxes. The Company’s effective tax rate was 69.0 % and 40.6 % for the three and six months ended June 30, 2026, respectively, and 26.6 % and 26.3 % for the three and six months ended June 30, 2025, respectively. The customary relationship between tax expense and pre-tax income is significantly higher during the three and six months ended June 30, 2026, primarily due to the effects of becoming subject to Internal Revenue Service code 162(m) as a result of the initial public offering (“IPO”), and accretion of the deferred credit to reduce tax expense related to the Solar Servicing business acquisition. See Management’s Discussion and Analysis of Results of Operations and Financial Condition – Results of Operations – Income Taxes for more details on the items that impacted income tax expense during the period. The income tax returns of the Company for 2022, 2023, and 2024 are subject to examination by income taxing authorities, generally for three years after they were filed. If the Company identifies an uncertain tax position, an accrual for the estimated tax is recognized in the period the potential tax is identified. The Company has elected to recognize any estimated penalties and interest expense on its income tax liabilities as a component of its provision for income taxes. Stock-based Compensation All the Company’s stock options and other equity-based compensation arrangements are classified as equity awards as of June 30, 2026 and December 31, 2025. See Note 15 – Stock-based Compensation for information on the Company’s stock-based compensation. Subsequent Events Management has considered the occurrence of subsequent events through August 13, 2026, the date the Consolidated Financial Statements were available to be issued, and determined that the settlement on July 14, 2026 of the overallotment option related to the IPO met the requirements for disclosure. See Note 12 – Stockholders’ Equity for more information on the overallotment option. New Accounting Standards Accounting Standard Adopted in 2025 In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires the disclosure of disaggregated information about an entity’s income tax rate reconciliation as well as income taxes paid and income tax expense. The Company adopted the standard on January 11 1, 2025, on a prospective basis. The adoption did not have a material impact on the Company’s Consolidated Financial Statements. Accounting Standards Pending Adoption In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses , which requires the disaggregated disclosure of certain income statement categories. The amendments are effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The amendments should be applied either prospectively to financial statements issued for reporting periods after the effective date, or retrospectively to any or all prior periods presented in the financial statements. The Company is in the process of evaluating the impact of this pronouncement, but does not anticipate it having a material impact on its disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software , which modernizes the rules for capitalizing internal-use software. The amendments are effective for fiscal years beginning after December 15, 2027, with early adoption permitted. The amendments can be applied using a prospective approach, a retrospective approach, or a modified approach that bases the adoption of the amendments on the completion status of the software project as of the adoption date. The Company is in the process of evaluating the impact of this pronouncement. In November 2025, the FASB issued ASU 2025-08, Financial Instruments-Credit Losses (Topic 326): Purchased Loans , which provides targeted improvements to the accounting for purchased loans, including clarification on the recognition and measurement of credit losses for acquired financial assets. The amendments are effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The amendments should be applied prospectively to loans acquired after the initial adoption date. The Company is in the process of evaluating the impact of this pronouncement. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material, if any, impact on the Company’s Consolidated Financial Statements. NOTE 2 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH Regulation D of the Federal Reserve Act requires the Company to maintain reserve balances with the Federal Reserve Bank based principally on the type and amount of the Company’s deposits, however, in March 2020, the Federal Reserve Board took action to reduce the reserve requirement percentage to zero for all balances. Balances maintained with the Federal Reserve Bank are included in Interest-bearing deposits with banks in the Consolidated Balance Sheets. The following schedule presents the composition of the Company’s cash, cash equivalents and restricted cash as of June 30, 2026 and December 31, 2025: (in thousands) June 30, 2026 December 31, 2025 Cash, due from banks and restricted cash: Cash and due from banks $ 23,964 $ 16,040 Restricted cash 2,560 2,201 Total cash, due from banks and restricted cash 26,524 18,241 Interest-bearing deposits with banks: Interest-bearing deposits with the Federal Reserve Bank 773,660 601,555 Interest-bearing deposits with other banks 34,532 28,919 Total interest-bearing deposits with banks 808,192 630,474 Total cash, cash equivalents and restricted cash $ 834,716 $ 648,715 12 NOTE 3 – INVESTMENT SECURITIES Investment Securities Available-For-Sale Investment securities available-for-sale as of June 30, 2026 and December 31, 2025, consisted of the following securities: June 30, 2026 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value U.S. Treasury and government agencies $ 695,879 $ 502 $ ( 537 ) $ — $ 695,844 Residential agency mortgage-backed 316,727 52 ( 3,806 ) — 312,973 Commercial agency mortgage-backed 185,835 283 ( 3,262 ) — 182,856 Municipal bonds 9,481 27 ( 873 ) — 8,635 Other 10,794 — ( 437 ) — 10,357 Total investment securities available-for-sale $ 1,218,716 $ 864 $ ( 8,915 ) $ — $ 1,210,665 December 31, 2025 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value U.S. Treasury and government agencies $ 953,981 $ 4,366 $ — $ — $ 958,347 Residential agency mortgage-backed 138,262 1,077 ( 262 ) — 139,077 Commercial agency mortgage-backed 135,588 1,004 ( 522 ) — 136,070 Municipal bonds 9,485 46 ( 896 ) — 8,635 Other 13,496 — ( 738 ) — 12,758 Total investment securities available-for-sale $ 1,250,812 $ 6,493 $ ( 2,418 ) $ — $ 1,254,887 The tables above exclude accrued interest receivables of $ 10.8 million and $ 13.4 million as of June 30, 2026 and December 31, 2025, respectively. 13 Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. The amortized cost and fair value of investment securities available-for-sale as of June 30, 2026 and December 31, 2025, by contractual maturity are presented in the following table: June 30, 2026 December 31, 2025 (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value U.S. Treasury and government agencies: One year or less $ 516,229 $ 516,507 $ 520,293 $ 521,605 One to five years 179,650 179,337 433,688 436,742 Five to ten years — — — — After ten years — — — — Residential agency mortgage-backed: One year or less — — — — One to five years 71 70 109 107 Five to ten years — — — — After ten years 316,656 312,903 138,153 138,970 Commercial agency mortgage-backed: One year or less — — — — One to five years 18,805 18,967 18,794 19,261 Five to ten years 8,458 8,425 13,396 13,612 After ten years 158,572 155,464 103,398 103,197 Municipal bonds: One year or less — — — — One to five years 3,075 2,970 2,081 2,096 Five to ten years — — 994 894 After ten years 6,406 5,665 6,410 5,645 Other: One year or less — — — — One to five years — — — — Five to ten years 5,000 4,770 5,000 4,537 After ten years 5,794 5,587 8,496 8,221 $ 1,218,716 $ 1,210,665 $ 1,250,812 $ 1,254,887 During the three and six months ended June 30, 2026, the Company sold no investment securities available-for-sale. There were no sales of investment securities available-for-sale during the three months ended June 30, 2025. During the six months ended June 30, 2025, the Company sold thirteen investment securities available-for-sale with an aggregate cost basis of $ 1.2 billion and sales proceeds of $ 1.2 billion. The Company realized gross gains of $ 1.1 million and no gross losses on the sales. There were no transfers of investment securities from available-for-sale to held-to-maturity during the three and six months ended June 30, 2026 or 2025. As of June 30, 2026 and December 31, 2025, the Company had no pledged available-for-sale securities to secure FHLB advances. There were no outstanding FHLB advances as of June 30, 2026 and December 31, 2025. See Note 11 – Borrowed Funds for more information on FHLB advances availability. As of June 30, 2026 and December 31, 2025, the Company held no investment securities available-for-sale of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. 14 Information pertaining to investment securities available-for-sale with gross unrealized losses as of June 30, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are presented in the following tables: June 30, 2026 12 Months or Less 12 Months or More Total (in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. Treasury and government agencies $ 200,312 $ ( 537 ) $ — $ — $ 200,312 $ ( 537 ) Residential agency mortgage-backed 287,456 ( 3,710 ) 653 ( 96 ) 288,109 ( 3,806 ) Commercial agency mortgage-backed 157,796 ( 3,120 ) 4,510 ( 142 ) 162,306 ( 3,262 ) Municipal bonds 1,977 ( 15 ) 5,561 ( 858 ) 7,538 ( 873 ) Other 90 — 10,267 ( 437 ) 10,357 ( 437 ) Total $ 647,631 $ ( 7,382 ) $ 20,991 $ ( 1,533 ) $ 668,622 $ ( 8,915 ) December 31, 2025 12 Months or Less 12 Months or More Total (in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Residential agency mortgage-backed 49,759 ( 170 ) 719 ( 92 ) 50,478 ( 262 ) Commercial agency mortgage-backed 59,754 ( 237 ) 8,901 ( 285 ) 68,655 ( 522 ) Municipal bonds 1,978 ( 13 ) 5,541 ( 883 ) 7,519 ( 896 ) Other 93 — 12,666 ( 738 ) 12,759 ( 738 ) Total $ 111,584 $ ( 420 ) $ 27,827 $ ( 1,998 ) $ 139,411 $ ( 2,418 ) The Company individually evaluates its investment securities available-for-sale for credit losses. As of June 30, 2026 and December 31, 2025, the Company determined no portion of the unrealized losses on its investment securities available-for-sale was due to credit factors. Unrealized losses on investment securities available-for-sale due to factors other than credit are largely due to the nature of the investments. Therefore, no allowance for credit losses was recorded as of June 30, 2026 or December 31, 2025. Additionally, the Company has the intent and ability to hold its investment securities available-for-sale for a period of time sufficient to allow for any anticipated recovery. 15 Investment Securities Held-to-Maturity Investment securities held-to-maturity as of June 30, 2026 and December 31, 2025, consisted of the following securities: June 30, 2026 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Municipal bonds $ 31,000 $ 2,591 $ — $ 33,591 Other 17,744 458 ( 2,962 ) 15,240 Total investment securities held-to-maturity $ 48,744 $ 3,049 $ ( 2,962 ) $ 48,831 Allowance for credit losses ( 110 ) Total investment securities held-to-maturity, net of allowance for credit losses $ 48,634 December 31, 2025 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Municipal bonds $ 31,200 $ 3,736 $ — $ 34,936 Other 17,744 482 ( 2,687 ) 15,539 Total investment securities held-to-maturity $ 48,944 $ 4,218 $ ( 2,687 ) $ 50,475 Allowance for credit losses ( 110 ) Total investment securities held-to-maturity, net of allowance for credit losses $ 48,834 The tables above exclude accrued interest receivables of $ 2.2 million and $ 1.7 million as of June 30, 2026 and December 31, 2025, respectively. Expected maturities of investment securities held-to-maturity may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. The amortized cost and fair value of investment securities held-to-maturity as of June 30, 2026 and December 31, 2025, by contractual maturity, are presented in the following table: June 30, 2026 December 31, 2025 (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Municipal bonds: One year or less $ — $ — $ — $ — One to five years 31,000 33,591 31,200 34,936 Five to ten years — — — — After ten years — — — — Other: One year or less — — — — One to five years — — — — Five to ten years — — — — After ten years 17,744 15,240 17,744 15,539 Total $ 48,744 $ 48,831 $ 48,944 $ 50,475 As of June 30, 2026 and December 31, 2025, there were no investment securities held-to-maturity of any one issuer in an amount greater than 10% of stockholders’ equity. 16 There were no sales of investment securities held-to-maturity or transfers of investment securities available-for-sale to investment securities held-to-maturity during the three and six months ended June 30, 2026 or 2025. Information pertaining to investment securities held-to-maturity with gross unrealized losses as of June 30, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are presented in the following tables: June 30, 2026 12 Months or Less 12 Months or More Total (in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Other $ 105 $ — $ 13,756 $ ( 2,962 ) $ 13,861 $ ( 2,962 ) Total $ 105 $ — $ 13,756 $ ( 2,962 ) $ 13,861 $ ( 2,962 ) December 31, 2025 12 Months or Less 12 Months or More Total (in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Other $ — $ — $ 14,032 $ ( 2,687 ) $ 14,032 $ ( 2,687 ) Total $ — $ — $ 14,032 $ ( 2,687 ) $ 14,032 $ ( 2,687 ) The Company collectively evaluates its investment securities held-to-maturity for credit losses. As of June 30, 2026 and December 31, 2025, the Company recorded an allowance for credit losses on its investment securities held-to-maturity. The following tables summarize the activity in the allowance for credit losses for investment securities held-to-maturity for the three and six months ended June 30, 2026 and 2025: For the Three Months Ended June 30, 2026 (in thousands) Municipal bonds Other Total Balance at beginning of period $ 66 $ 44 $ 110 Provision for credit losses — — — Balance at end of period $ 66 $ 44 $ 110 For the Three Months Ended June 30, 2025 (in thousands) Municipal bonds Other Total Balance at beginning of period $ 109 $ 52 $ 161 Provision for credit losses — — — Balance at end of period $ 109 $ 52 $ 161 17 For the Six Months Ended June 30, 2026 (in thousands) Municipal bonds Other Total Balance at beginning of period $ 66 $ 44 $ 110 Provision for credit losses — — — Balance at end of period $ 66 $ 44 $ 110 For the Six Months Ended June 30, 2025 (in thousands) Municipal bonds Other Total Balance at beginning of period $ 109 $ 52 $ 161 Provision for credit losses — — — Balance at end of period $ 109 $ 52 $ 161 NOTE 4 – LOANS The Company manages its exposure to credit losses by evaluating credit risk across its three loan categories: Commercial Real Estate; Commercial and Industrial; and Consumer. For descriptions of each loan category, refer to the annual Consolidated Financial Statements included in the Company’s Registration Statement on Form S-1. Loans Held-for-Sale As of June 30, 2026 and December 31, 2025, the Company had $ 465.5 million and $ 379.7 million of loans held-for-sale, respectively. The table below presents the proceeds received from the sales of loans held-for-sale, net realized gains and losses, and net unrealized gains and losses related to loans-held-for sale for the three and six months ended June 30, 2026 and 2025. Realized gains are recognized in Gains on sales of loans and investment securities, net in the Consolidated Statements of Income. Unrealized (losses)/gains, net related to loans held-for-sale are included with Unrealized (losses)/gains on loans and financing receivables, net in the Consolidated Statements of Income. For the Three Months Ended For the Six Months Ended (in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Proceeds from sales $ 43,461 $ 108,858 $ 86,307 $ 167,631 Realized gains $ 252 $ 344 $ 218 $ 976 Unrealized (losses)/gains, net $ ( 770 ) $ 100 $ ( 2,010 ) $ 1,195 The following tables present, by loan category, the carrying amount and unpaid contractual balance of the Company’s loans held-for-sale as of June 30, 2026 and December 31, 2025: June 30, 2026 Loans Held-for-Sale at Fair Value Loans Held-for-Sale at Lower of Cost or Fair Value Total Loans Held-for-Sale (in thousands) Carrying Amount Unpaid Contractual Balance Carrying Amount Unpaid Contractual Balance Carrying Amount Unpaid Contractual Balance Commercial and Industrial $ 54,379 $ 57,233 $ 411,095 $ 415,842 $ 465,474 $ 473,075 Total loans held-for-sale $ 54,379 $ 57,233 $ 411,095 $ 415,842 $ 465,474 $ 473,075 18 December 31, 2025 Loans Held-for-Sale at Fair Value Loans Held-for-Sale at Lower of Cost or Fair Value Total Loans Held-for-Sale (in thousands) Carrying Amount Unpaid Contractual Balance Carrying Amount Unpaid Contractual Balance Carrying Amount Unpaid Contractual Balance Commercial and Industrial $ 62,251 $ 65,281 $ 317,411 $ 321,295 $ 379,662 $ 386,576 Total loans held-for-sale $ 62,251 $ 65,281 $ 317,411 $ 321,295 $ 379,662 $ 386,576 Loans Held for Investment at Amortized Cost Loans held for investment at amortized cost, by loan category, as of June 30, 2026 and December 31, 2025, are presented in the following table: (in thousands) June 30, 2026 December 31, 2025 Commercial Real Estate $ 2,849,478 $ 2,528,996 Commercial and Industrial 2,541,275 2,475,549 Consumer 205,119 217,689 Total loans held for investment at amortized cost $ 5,595,872 $ 5,222,234 Total outstanding loans held for investment at amortized cost are net of deferred fees and costs of $ 54.3 million and $ 54.7 million as of June 30, 2026 and December 31, 2025, respectively. Total outstanding loans held for investment at amortized cost excludes accrued interest receivable of $ 31.2 million and $ 32.1 million as of June 30, 2026 and December 31, 2025, respectively. Loans to Related Parties From time to time, the Company has loan transactions with some of its officers, directors, and material investors, and their immediate family members and affiliated entities. There were no loans in the ordinary course of business due from related parties as of June 30, 2026 and December 31, 2025. See Note 19 – Related Party Transactions for more information. NOTE 5 – CREDIT QUALITY ASSESSMENT Allowance for Credit Losses - Loans Held for Investment at Amortized Cost For a description of the Company's accounting policy for the allowance for credit losses (“ACL”), refer to the annual Consolidated Financial Statements included in the Company's Registration Statement on Form S-1. The following table summarizes the activity in the allowance for credit losses for loans held for investment at amortized cost for the three and six months ended June 30, 2026 and 2025: For the Three Months Ended For the Six Months Ended (in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Beginning of period $ 52,794 $ 46,868 $ 52,986 $ 42,294 Provision for credit losses on loans 4,521 3,106 8,388 11,519 Provision for credit losses on loan transfers from loans held-for-sale — 29 17 97 Loan charge-offs ( 3,089 ) ( 2,593 ) ( 7,976 ) ( 7,026 ) Loan recoveries 395 898 1,206 1,424 Net charge-offs ( 2,694 ) ( 1,695 ) ( 6,770 ) ( 5,602 ) End of period $ 54,621 $ 48,308 $ 54,621 $ 48,308 19 Loans held-for-sale and loans held for investment at fair value do not require an allowance because they are carried at fair value and any changes to the cost basis in the loan are recognized in earnings, as unrealized gains or losses in non-interest income, in the period of the change. The following tables detail activity in the allowance for credit losses for loans held for investment carried at amortized cost, by loan category, for the three and six months ended June 30, 2026: For the Three Months Ended June 30, 2026 (in thousands) Commercial Real Estate Commercial and Industrial Consumer Total Allowance for credit losses: Beginning of period $ 19,566 $ 25,535 $ 7,693 $ 52,794 Provision for credit losses on loans 329 1,467 2,725 4,521 Loan charge-offs — ( 1,736 ) ( 1,353 ) ( 3,089 ) Loan recoveries — 131 264 395 Net charge-offs — ( 1,605 ) ( 1,089 ) ( 2,694 ) End of period $ 19,895 $ 25,397 $ 9,329 $ 54,621 For the Six Months Ended June 30, 2026 (in thousands) Commercial Real Estate Commercial and Industrial Consumer Total Allowance for credit losses: Beginning of period $ 18,639 $ 26,023 $ 8,324 $ 52,986 Provision for credit losses on loans 1,256 3,250 3,882 8,388 Provision for credit losses on loan transfers from loans held-for-sale — 17 — 17 Loan charge-offs — ( 4,566 ) ( 3,410 ) ( 7,976 ) Loan recoveries — 673 533 1,206 Net charge-offs — ( 3,893 ) ( 2,877 ) ( 6,770 ) End of period $ 19,895 $ 25,397 $ 9,329 $ 54,621 The following table presents the composition of the allowance for credit losses for loans held for investment carried at amortized cost, by loan category and evaluation methodology, as of June 30, 2026: June 30, 2026 (dollars in thousands) Commercial Real Estate Commercial and Industrial Consumer Total Individually evaluated for credit loss $ 1,431 $ 930 $ — $ 2,361 Collectively evaluated for credit loss 18,464 24,467 9,329 52,260 Total allowance for credit losses $ 19,895 $ 25,397 $ 9,329 $ 54,621 Loans held for investment at amortized cost: Individually evaluated for credit loss $ 128,324 $ 19,150 $ 2,035 $ 149,509 Collectively evaluated for credit loss 2,721,154 2,522,125 203,084 5,446,363 Total loans held for investment at amortized cost $ 2,849,478 $ 2,541,275 $ 205,119 $ 5,595,872 Allowance for loans to loan type ratio: Individually evaluated for credit loss 1.12 % 4.86 % — % 1.58 % Collectively evaluated for credit loss 0.68 % 0.97 % 4.59 % 0.96 % Total loans held for investment at amortized cost 0.70 % 1.00 % 4.55 % 0.98 % 20 The following tables detail activity in the allowance for credit losses for loans held for investment carried at amortized cost, by loan category, for the three and six months ended June 30, 2025: For the Three Months Ended June 30, 2025 (in thousands) Commercial Real Estate Commercial and Industrial Consumer Total Allowance for credit losses: Beginning of period $ 13,819 $ 22,553 $ 10,496 $ 46,868 Provision for credit losses on loans 1,753 572 781 3,106 Provision for/(recovery of) credit losses on loan transfers from/(to) loans held-for-sale 30 ( 1 ) — 29 Loan charge-offs — ( 473 ) ( 2,120 ) ( 2,593 ) Loan recoveries — 738 160 898 Net recoveries/(charge-offs) — 265 ( 1,960 ) ( 1,695 ) End of period $ 15,602 $ 23,389 $ 9,317 $ 48,308 For the Six Months Ended June 30, 2025 (in thousands) Commercial Real Estate Commercial and Industrial Consumer Total Allowance for credit losses: Beginning of period $ 12,078 $ 19,380 $ 10,836 $ 42,294 Provision for credit losses on loans 3,432 6,636 1,451 11,519 Provision for credit losses on loan transfers from loans held-for-sale 92 5 — 97 Loan charge-offs — ( 3,580 ) ( 3,446 ) ( 7,026 ) Loan recoveries — 948 476 1,424 Net charge-offs — ( 2,632 ) ( 2,970 ) ( 5,602 ) End of period $ 15,602 $ 23,389 $ 9,317 $ 48,308 The following table presents the composition of the allowance for credit losses for loans held for investment carried at amortized cost, by loan category and evaluation methodology, as of June 30, 2025: June 30, 2025 (dollars in thousands) Commercial Real Estate Commercial and Industrial Consumer Total Individually evaluated for credit loss $ 95 $ 1,545 $ — $ 1,640 Collectively evaluated for credit loss 15,507 21,844 9,317 46,668 Total allowance for credit losses $ 15,602 $ 23,389 $ 9,317 $ 48,308 Loans held for investment at amortized cost: Individually evaluated for credit loss $ 88,193 $ 81,836 $ 1,274 $ 171,303 Collectively evaluated for credit loss 1,919,940 2,025,891 359,233 4,305,064 Total loans held for investment at amortized cost $ 2,008,133 $ 2,107,727 $ 360,507 $ 4,476,367 Allowance for loans to loan type ratio: Individually evaluated for credit loss 0.11 % 1.89 % — % 0.96 % Collectively evaluated for credit loss 0.81 % 1.08 % 2.59 % 1.08 % Total loans held for investment at amortized cost 0.78 % 1.11 % 2.58 % 1.08 % Credit Quality The Company uses an internal risk rating system as its primary credit quality indicator, applying ratings on a case-by-case basis for commercial loans and on a collective basis for consumer loans. For a description of the Company's credit quality indicators, refer to the annual Consolidated Financial Statements included in the Company's Registration Statement on Form S-1. 21 Loans Held for Investment at Amortized Cost The following tables present by class, credit quality and year of origination, the recorded investment in the Company’s loans held for investment at amortized cost as of and for the six months ended June 30, 2026 and as of and for the year ended December 31, 2025: June 30, 2026 Loans Held for Investment at Amortized Cost by Year of Origination (in thousands) 2026 2025 2024 2023 2022 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial Real Estate: Acceptable risk (or better) $ 500,396 $ 1,203,202 $ 333,364 $ 56,571 $ 197,695 $ 235,628 $ 974 $ — $ 2,527,830 Higher risk 32,846 — 19,010 — 123,489 54,697 — — 230,042 Special mention — — — — — — — — — Substandard 17,509 — — — 47,144 26,953 — — 91,606 Doubtful — — — — — — — — — Total $ 550,751 $ 1,203,202 $ 352,374 $ 56,571 $ 368,328 $ 317,278 $ 974 $ — $ 2,849,478 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and Industrial: Acceptable risk (or better) $ 151,191 $ 87,189 $ 73,321 $ 38,605 $ 104,267 $ 5,484 $ 1,987,518 $ 10,101 $ 2,457,676 Higher risk 221 217 — — 20,608 11,573 12,527 — 45,146 Special mention — — 59 — 254 1 19,122 — 19,436 Substandard — — 1,763 12,562 1,132 411 963 — 16,831 Doubtful — 1,365 819 — — 2 — — 2,186 Total $ 151,412 $ 88,771 $ 75,962 $ 51,167 $ 126,261 $ 17,471 $ 2,020,130 $ 10,101 $ 2,541,275 Gross charge-offs $ — $ — $ 1,718 $ — $ 2,773 $ 75 $ — $ — $ 4,566 Consumer: Acceptable risk (or better) $ — $ — $ — $ 233 $ 55,998 $ 134,171 $ 5,930 $ — $ 196,332 Higher risk — — — — 176 4,134 3,070 — 7,380 Special mention — — — — — — — — — Substandard — — — — 382 1,025 — — 1,407 Doubtful — — — — — — — — — Total $ — $ — $ — $ 233 $ 56,556 $ 139,330 $ 9,000 $ — $ 205,119 Gross charge-offs $ — $ — $ — $ — $ 949 $ 2,461 $ — $ — $ 3,410 Total loans $ 702,163 $ 1,291,973 $ 428,336 $ 107,971 $ 551,145 $ 474,079 $ 2,030,104 $ 10,101 $ 5,595,872 Total gross charge-offs $ — $ — $ 1,718 $ — $ 3,722 $ 2,536 $ — $ — $ 7,976 22 December 31, 2025 Loans Held for Investment at Amortized Cost by Year of Origination (in thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial Real Estate: Acceptable risk (or better) $ 1,226,416 $ 284,180 $ 56,976 $ 238,490 $ 174,345 $ 94,808 $ — $ — $ 2,075,215 Higher risk — 101,977 — 136,724 130,391 16,425 982 — 386,499 Special mention — — — — — — — — — Substandard — — — 40,420 26,862 — — — 67,282 Doubtful — — — — — — — — — Total $ 1,226,416 $ 386,157 $ 56,976 $ 415,634 $ 331,598 $ 111,233 $ 982 $ — $ 2,528,996 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and Industrial: Acceptable risk (or better) $ 205,677 $ 173,813 $ 53,566 $ 123,425 $ 17,225 $ 888 $ 1,825,313 $ — $ 2,399,907 Higher risk 144 139 — 21,312 519 — 33,000 — 55,114 Special mention — — — — 1 — — — 1 Substandard 1,431 — 12,452 701 486 2,136 781 — 17,987 Doubtful — 2,540 — — — — — — 2,540 Total $ 207,252 $ 176,492 $ 66,018 $ 145,438 $ 18,231 $ 3,024 $ 1,859,094 $ — $ 2,475,549 Gross charge-offs $ — $ 1,632 $ 171 $ 5,493 $ 78 $ — $ — $ — $ 7,374 Consumer: Acceptable risk (or better) $ — $ 1,243 $ 483 $ 60,909 $ 131,188 $ 16,681 $ — $ — $ 210,504 Higher risk — — — 178 249 4,901 — — 5,328 Special mention — — — — — — — — — Substandard — — — 665 977 215 — — 1,857 Doubtful — — — — — — — — — Total $ — $ 1,243 $ 483 $ 61,752 $ 132,414 $ 21,797 $ — $ — $ 217,689 Gross charge-offs $ — $ — $ — $ 3,063 $ 4,907 $ 70 $ — $ — $ 8,040 Total loans $ 1,433,668 $ 563,892 $ 123,477 $ 622,824 $ 482,243 $ 136,054 $ 1,860,076 $ — $ 5,222,234 Total gross charge-offs $ — $ 1,632 $ 171 $ 8,556 $ 4,985 $ 70 $ — $ — $ 15,414 The following tables present information on loans held for investment at amortized cost on non-accrual status and loans 90 days or more past due and still accruing as of June 30, 2026 and December 31, 2025: June 30, 2026 (in thousands) Commercial Real Estate Commercial and Industrial Consumer Total Loans 90 days or more past due and still accruing $ — $ — $ — $ — Non-accrual loans with no allowance for credit losses $ 45,836 $ 2,764 $ 14 $ 48,614 Non-accrual loans $ 67,312 $ 3,752 $ 1,407 $ 72,471 Contractual interest income on non-accrual loans while on non-accrual status $ 3,526 $ 1,313 $ 1,395 $ 6,234 December 31, 2025 (in thousands) Commercial Real Estate Commercial and Industrial Consumer Total Loans 90 days or more past due and still accruing $ — $ — $ — $ — Non-accrual loans with no allowance for credit losses $ 60,361 $ 116 $ 1,857 $ 62,334 Non-accrual loans $ 60,361 $ 5,484 $ 1,857 $ 67,702 Contractual interest income on non-accrual loans while on non-accrual status $ 4,812 $ 916 $ 1,663 $ 7,391 23 No interest income was recognized on non-accrual loans while on non-accrual status for the six months ended June 30, 2026 and 2025. At the time a loan is designated as non-accrual, the Company reverses any related accrued interest from interest income. During the three and six months ended June 30, 2026, the Company reversed $ 0.1 million and $ 0.4 million, respectively, of accrued interest from interest income related to loans designated as non-accrual. During the three months ended June 30, 2025, no accrued interest was reversed from interest income related to loans designated as non-accrual. During the six months ended June 30, 2025, the Company reversed $ 0.9 million of accrued interest from interest income related to loans designated as non-accrual. The following tables present by class, an aging analysis and the recorded investments in past due loans, excluding non-accrual loans, held for investment at amortized cost as of June 30, 2026 and December 31, 2025: June 30, 2026 (in thousands) Commercial Real Estate Commercial and Industrial Consumer Total Past due loans: 30 - 59 days past due $ — $ — $ 1,842 $ 1,842 60 - 89 days past due 2,003 — 894 2,897 90 or more days past due — — — — Total past due loans 2,003 — 2,736 4,739 Current loans 2,780,163 2,537,523 200,976 5,518,662 Total $ 2,782,166 $ 2,537,523 $ 203,712 $ 5,523,401 December 31, 2025 (in thousands) Commercial Real Estate Commercial and Industrial Consumer Total Past due loans: 30 - 59 days past due $ 32,412 $ 42,487 $ 2,297 $ 77,196 60 - 89 days past due — 122 1,092 1,214 90 or more days past due — — — — Total past due loans 32,412 42,609 3,389 78,410 Current loans 2,436,223 2,427,456 212,443 5,076,122 Total $ 2,468,635 $ 2,470,065 $ 215,832 $ 5,154,532 The following tables present by class and by collateral type, the recorded investment of collateral-dependent loans where the borrower is experiencing financial difficulty as of June 30, 2026 and December 31, 2025, for which repayment is expected to be provided substantially through the operation or sale of the collateral: June 30, 2026 (in thousands) Commercial Real Estate Commercial and Industrial Total Collateral type: Real estate $ 56,345 $ — $ 56,345 Business assets — 1,368 1,368 Total $ 56,345 $ 1,368 $ 57,713 December 31, 2025 (in thousands) Commercial Real Estate Consumer Total Collateral type: Real estate $ 49,494 $ 188 $ 49,682 Total $ 49,494 $ 188 $ 49,682 24 The following table presents by class and by type of modification, the recorded investment and financial effect of modification as of June 30, 2026, in the Company’s loans that were both modified and experiencing financial difficulty during the three and six months ended June 30, 2026. For the Three and Six Months Ended June 30, 2026 (dollars in thousands) Term Extension and Interest Rate Reduction Total Modification to Loan Class Ratio Weighted-Average Term Extension Weighted-Average Interest Rate Reduction Commercial Real Estate $ 17,509 $ 17,509 0.61 % 2.0 years 1.90 % Total $ 17,509 $ 17,509 As of June 30, 2026, there were no unfunded loan commitments on modifications for borrowers experiencing financial difficulty. The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. As of June 30, 2026, all loans that were modified to borrowers experiencing financial difficulty during the three and six months ended June 30, 2026, were 30 - 59 days past due. There were no payment defaults during the three and six months ended June 30, 2026, on loans previously reported as modified. The following tables present by class and by type of modification, the recorded investment and financial effect of modification as of June 30, 2025, in the Company’s loans that were both modified and experiencing financial difficulty during the three and six months ended June 30, 2025: For the Three Months Ended June 30, 2025 (dollars in thousands) Term Extension Total Modification to Loan Class Ratio Weighted-Average Term Extension Commercial and Industrial $ 151 $ 151 0.01 % 1.0 year Total $ 151 $ 151 For the Six Months Ended June 30, 2025 (dollars in thousands) Term Extension Total Modification to Loan Class Ratio Weighted-Average Term Extension Commercial and Industrial $ 292 $ 292 0.01 % 1.0 year Total $ 292 $ 292 As of June 30, 2025, there were no unfunded loan commitments on modifications for borrowers experiencing financial difficulty. The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. As of June 30, 2025, all loans that were modified to borrowers experiencing financial difficulty during the three and six months ended June 30, 2025, were current and on non-accrual status. There were no payment defaults during the three and six months ended June 30, 2025, on loans previously reported as modified. 25 Other Real Estate Owned The following table presents by class the recorded investment in the Company’s other real estate owned assets (“OREO”) at fair value for the three and six months ended June 30, 2026 and 2025: For the Three Months Ended For the Six Months Ended (in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Balance at beginning of period $ 7,109 $ 26,076 $ 8,729 $ 25,476 Improvements — 418 — 1,018 Sales ( 2,382 ) ( 17,452 ) ( 3,258 ) ( 17,452 ) Valuation adjustments ( 85 ) ( 589 ) ( 829 ) ( 589 ) Balance at end of period $ 4,642 $ 8,453 $ 4,642 $ 8,453 During the three months ended June 30, 2026, the Company sold one OREO asset and a portion of one of its OREO assets with carrying values of $ 2.4 million for proceeds of $ 2.4 million resulting in a non-material amount of net loss. During the six months ended June 30, 2026, the Company sold one OREO asset and portions of one of its OREO assets with carrying values of $ 3.3 million for proceeds of $ 3.2 million resulting in a net loss of $ 0.1 million. During the three and six months ended June 30, 2025, the Company sold two OREO assets with carrying values of $ 17.5 million for proceeds of $ 17.8 million resulting in a net gain of $ 0.3 million. Gains and losses on the sales of OREO assets are included in Other non-interest income in the Consolidated Statements of Income. There were no transfers into OREO assets during the three and six months ended June 30, 2026 or 2025. During the three and six months ended June 30, 2026 and 2025, the Company incurred a non-material amount of expense related to holding OREO assets, which is included in Other non-interest expense in the Consolidated Statements of Income. Subsequent to foreclosure, the Company determined the fair values of certain of its OREO assets had declined during the three and six months ended June 30, 2026 and 2025, at which time the Company recorded a valuation adjustment, which is included in Other non-interest income in the Consolidated Statements of Income. OREO assets were $ 4.6 million and $ 8.7 million as of June 30, 2026 and December 31, 2025, respectively, and are included with Other assets in the Consolidated Balance Sheets. NOTE 6 – OTHER EARNING ASSETS Financing Receivables Held for Investment at Amortized Cost As of June 30, 2026 and December 31, 2025, the Company had $ 36.9 million and $ 42.8 million, respectively, of financing receivables held for investment, at amortized cost, and net of allowance for credit losses, which are included with Other earning assets in the Consolidated Balance Sheets. Direct funding related income, net of costs, of $ 0.1 million and $ 0.2 million as of June 30, 2026 and December 31, 2025, respectively, were recognized as part of the carrying balance of financing receivables held for investment at amortized cost. The following table summarizes the activity in the allowance for credit losses for financing receivables held for investment, at amortized cost, for the three and six months ended June 30, 2026 and 2025: For the Three Months Ended For the Six Months Ended (in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Balance at beginning of period $ 93 $ 74 $ 108 $ 74 Recovery of credit losses — — ( 15 ) — Balance at end of period $ 93 $ 74 $ 93 $ 74 26 Equity Investments The Company holds equity investments for various business purposes. As of June 30, 2026 and December 31, 2025, the Company had $ 13.6 million and $ 13.1 million, respectively, of equity investments, which are included with Other earning assets in the Consolidated Balance Sheets. NOTE 7 – PREMISES AND EQUIPMENT The following table summarizes the gross carrying amount, by type, accumulated depreciation, and right-of-use assets, which are included in Premises and equipment, net in the Consolidated Balance Sheets, as of June 30, 2026 and December 31, 2025: (in thousands) June 30, 2026 December 31, 2025 Land $ 13,413 $ — Building 13,420 — Software 27,943 26,166 Leasehold improvements 7,543 7,484 Furniture and equipment 4,017 3,695 Tenant improvements 1,777 — Assets in process 1,589 761 Premises and equipment 69,702 38,106 Right-of-use assets, operating leases 5,030 15,691 Accumulated depreciation ( 26,855 ) ( 23,034 ) Premises and equipment, net $ 47,877 $ 30,763 The Company recognized depreciation and amortization expense of $ 2.0 million and $ 3.9 million for the three and six months ended June 30, 2026, respectively, and $ 1.8 million and $ 3.5 million for the three and six months ended June 30, 2025, respectively. Depreciation and amortization expense is included in Information technology and Occupancy expense in the Consolidated Statements of Income. 27 On April 30, 2026, the Company acquired the building which houses its corporate headquarters for $ 37.4 million cash consideration. Prior to the acquisition, the Company leased office space in the acquired building and had $ 9.7 million of right-of-use assets and $ 13.3 million of lease liabilities recognized in the Consolidated Balance Sheets. Upon the acquisition of the building, the Company derecognized the right-of-use assets and lease liabilities, and the $ 3.6 million net of the two was recognized as a reduction to the $ 37.4 million purchase price, resulting in a $ 33.9 million net carrying value of the assets acquired. The following table summarizes the purchase price allocated to the acquired assets: (in thousands) April 30, 2026 Cash consideration $ 37,440 Less: right-of-use-assets, net of lease liabilities ( 3,576 ) Purchase price to be allocated $ 33,864 Allocation of purchase price: Land $ 13,413 Building 13,420 Tenant improvements 1,777 In-place lease intangibles 3,793 Above/below market rent intangibles 1,461 Total allocated purchase price $ 33,864 See Note 8 – Goodwill and Other Intangible Assets and Note 9 – Leases for more information. NOTE 8 – GOODWILL AND OTHER INTANGIBLE ASSETS The following tables summarize the gross carrying amount and accumulated amortization, by type of amortizing other intangible asset, and the carrying amount of non-amortizing other intangible assets and goodwill, which are included in Goodwill and other intangible assets, net in the Consolidated Balance Sheets, as of June 30, 2026 and December 31, 2025: June 30, 2026 (dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing intangible assets: Core deposit intangible $ 1,491 $ ( 1,491 ) $ — Customer relationship intangibles 18,742 ( 8,256 ) 10,486 In-place lease intangibles (1) 3,793 ( 359 ) 3,434 Above/below market rent intangibles (2) 1,461 ( 50 ) 1,411 Other 399 ( 399 ) — Total amortizing intangible assets $ 25,886 $ ( 10,555 ) $ 15,331 Indefinite life intangible asset 2,114 Total intangible assets 17,445 Goodwill 18,519 Total goodwill and intangible assets, net $ 35,964 __________________ (1) In-place lease intangible assets had a weighted-average remaining life of 4.8 years as of June 30, 2026. (2) Above/below market rent intangible assets had a weighted-average remaining life of 4.9 years as of June 30, 2026. 28 December 31, 2025 (dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing intangible assets: Core deposit intangible $ 1,491 $ ( 1,491 ) $ — Customer relationship intangibles 18,742 ( 7,690 ) 11,052 Other 399 ( 399 ) — Total amortizing intangible assets $ 20,632 $ ( 9,580 ) $ 11,052 Indefinite life intangible asset 2,114 Total intangible assets 13,166 Goodwill 18,519 Total goodwill and intangible assets, net $ 31,685 On April 30, 2026, the Company acquired the building which houses its corporate headquarters. In connection with the acquisition, the Company also assumed leases associated with other tenants of the building. The Company allocated $ 3.8 million to in-place lease intangible assets and $ 1.5 million to above/below market rate intangible assets, respectively, related to the leases assumed. See Note 7 – Premises and Equipment and Note 9 – Leases for more information. The following table presents the estimated future amortization of amortizing intangible assets as of June 30, 2026: (in thousands) Amount Remaining 2026 $ 1,262 2027 2,269 2028 2,050 2029 1,930 2030 1,302 Thereafter 6,518 Total amortizing intangible assets $ 15,331 Amortization expense related to customer relationship intangible assets and in-place lease intangibles assets is included in Other non-interest expense in the Consolidated Statements of Income. The amortization of above/below market rent intangible assets is recognized as a net reduction to Rental income, which is included in Other non-interest income in the Consolidated Statements of Income. NOTE 9 – LEASES Lessee The Company has six leases, all of which are currently classified as operating. The Company’s leased locations are primarily deposit production offices and branches, mostly located in the Washington, D.C. metro area. The corporate headquarters lease, located in Chevy Chase, Maryland was considered to be critical to the Company’s operations. On April 30, 2026, the Company acquired the building which houses its corporate headquarters. Prior to the acquisition, the Company leased three office spaces in the acquired building and had $ 9.7 million of right-of-use assets and $ 13.3 million of lease liabilities recognized in the Consolidated Balance Sheets. Upon the acquisition of the building, the Company derecognized the right-of-use assets and lease liabilities, and the $ 3.6 million net of the two was recognized as a reduction to the purchase price. No gain or loss was recognized related to the transaction. See Note 7 – Premises and Equipment and Note 8 – Goodwill and Other Intangible Assets for more information. 29 Some lease agreements include one or more options to renew, with renewal terms that can extend the original lease term from three years to five years . The Company currently does not believe it is reasonably certain it will exercise the renewal options for its leases, and therefore, the lease terms do not reflect any optional periods. The following table provides information regarding the Company’s leases for the three and six months ended June 30, 2026 and 2025: For the Three Months Ended For the Six Months Ended (in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Components of operating lease expense: Long-term lease expense $ 428 $ 798 $ 1,175 $ 1,739 Short-term lease expense $ 42 $ 19 $ 82 $ 38 Supplemental cash flow information related to leases: Operating cash flows from operating leases $ 465 $ 917 $ 1,347 $ 1,856 The following table provides information regarding the Company’s leases as of June 30, 2026 and December 31, 2025: (dollars in thousands) June 30, 2026 December 31, 2025 Supplemental balance sheet information related to leases: Operating lease right-of-use assets $ 5,030 $ 15,691 Operating lease liabilities $ 5,867 $ 20,077 Other information related to leases: Weighted-average remaining lease term of operating leases 6.8 years 6.2 years Weighted-average discount rate of operating leases 3.69 % 2.60 % The following table presents the maturities of the Company’s operating lease liabilities as of June 30, 2026, for the years indicated: (in thousands) Amount Remaining 2026 $ 469 2027 959 2028 985 2029 962 2030 954 Thereafter 2,307 Total minimum lease payments 6,636 Less: present value discount ( 769 ) Operating lease liability $ 5,867 Lessor The Company acquired its headquarters office building, located in Chevy Chase, Maryland, on April 30, 2026 and assumed 15 lessor arrangements, consisting of commercial office and retail space, all of which are classified as operating leases. These lease agreements may include options to renew with renewal terms that can extend the original lease term for five years . 30 The Company recognized $ 1.4 million in lease income for each of the three and six months ended June 30, 2026. There was no lease income during the three and six months ended June 30, 2025. The following table presents the maturities of the Company’s lease receivables as of June 30, 2026, for the years indicated: (in thousands) Amount Remaining 2026 $ 2,972 2027 5,196 2028 4,839 2029 3,525 2030 2,372 Thereafter 5,451 Total lease payments $ 24,355 NOTE 10 – DEPOSITS Deposit balances as of June 30, 2026 and December 31, 2025, are presented in the following table: (in thousands) June 30, 2026 December 31, 2025 Non-interest-bearing deposits $ 435,065 $ 372,444 Interest-bearing deposits: Demand 284,748 275,259 Money market 1,394,865 1,206,544 Savings 3,878,206 3,500,532 Time deposits less than $250 thousand 1,100,398 1,242,892 Time deposits greater than $250 thousand 172,553 180,244 Total interest-bearing deposits 6,830,770 6,405,471 Total deposits $ 7,265,835 $ 6,777,915 The following table presents the maturities of time deposits as of June 30, 2026, for the years indicated: (in thousands) Amount Remaining 2026 $ 335,650 2027 688,728 2028 110,854 2029 112,334 2030 25,370 Thereafter 15 Total time deposits $ 1,272,951 The Company’s time deposits of $250 thousand or greater represented 13.6 % of total time deposits as of June 30, 2026, and are presented by maturity in the following table: Months to Maturity (in thousands) 3 or Less Over 3 to 6 Over 6 to 12 Over 12 Total Time deposits greater than $250 thousand $ 24,091 $ 36,968 $ 108,548 $ 2,946 $ 172,553 31 Deposits received in the ordinary course of business from related parties held as of June 30, 2026 and December 31, 2025, were $ 5.7 million and $ 5.2 million, respectively. See Note 19 – Related Party Transactions for more information. NOTE 11 – BORROWED FUNDS Subordinated Debt The following table provides information on subordinated debt as of June 30, 2026 and December 31, 2025: (dollars in thousands) June 30, 2026 December 31, 2025 2019 Notes, due in 2029 (1) 25,000 25,000 2021 Notes, due in 2032, 4.00 % 125,000 125,000 Other subordinated debt, due in 2033 (2) 3,000 3,000 Less: debt issuance costs and discounts ( 1,819 ) ( 1,997 ) Total subordinated debt $ 151,181 $ 151,003 __________________ (1) Borrowings bore interest at an effective rate of 8.05 % and 8.18 % as of June 30, 2026 and December 31, 2025, respectively. (2) Borrowings bore interest at an effective rate of 7.31 % and 7.47 % as of June 30, 2026 and December 31, 2025, respectively. Other Borrowed Funds As of June 30, 2026, the Company had an Advances and Security Agreement with the FHLB of Atlanta (“Advances and Security Agreement”) with a maximum borrowing capacity of $ 423.4 million. As of June 30, 2026 and December 31, 2025, there were no borrowings outstanding under the Advances and Security Agreement. To borrow under the Advances and Security Agreement, the Company must secure the borrowings with qualifying assets. Under the terms of the Advances and Security Agreement, the Company is required to maintain sufficient collateral to secure these borrowings. As of June 30, 2026, the Company pledged eligible commercial real estate loans with a book value of $ 619.0 million, eligible multi-family loans with a book value of $ 78.1 million, eligible 1-4 family first mortgages with a book value of $ 5.6 million, and eligible home equity loans with a book value of $ 3.0 million to secure borrowings under the Advances and Security Agreement. The total collateral value assigned by the FHLB for these pledged investments and loans was $ 423.4 million. As of June 30, 2026, the Company had a credit line with the Federal Reserve Bank (“FRB Credit Line”) with a maximum borrowing capacity of $ 1.9 billion. As of June 30, 2026 and December 31, 2025, there were no borrowings outstanding under the FRB Credit Line. To borrow under the FRB Credit Line, the Company must maintain sufficient loan collateral. As of June 30, 2026, the Company pledged commercial and industrial loans with a book value of $ 1.9 billion and construction loans with a book value of $ 168.2 million. The total collateral value assigned by the Federal Reserve Bank for these pledged loans was $ 1.9 billion. The Company maintains unsecured Fed Funds facilities with three other financial institutions in the aggregate amount of $ 90.0 million. As of June 30, 2026 and December 31, 2025, there were no borrowings outstanding under these facilities. The Company periodically borrows on its Fed Funds facilities to test its borrowing capabilities and keep the funds available. NOTE 12 – STOCKHOLDERS' EQUITY The Company’s Articles of Incorporation authorizes 108,200,000 shares of stock, consisting of 51,600,000 shares of Voting Common Stock, par value $ 0.001 per share (“Voting Common Stock” or “Class A”) and 51,600,000 shares of Non-Voting Common Stock, par value $ 0.001 per share (“Non-Voting Common Stock” or “Class B” and, together with the Voting Common Stock, “common stock”) and 5,000,000 shares of preferred stock, par value $ 0.001 (“Preferred Stock”). As of June 30, 2026, the Company had 28,949,031 shares of Voting Common Stock, 20,748,177 shares of Non-Voting Common Stock, and no shares of Preferred Stock issued and outstanding. During the three months ended 32 June 30, 2026, certain shareholders exercised their right to convert 494,374 shares of Non-Voting Common Stock to Voting Common Stock. On June 11, 2026, the Company issued an additional 7,900,000 shares of Voting Common Stock for net proceeds of $ 131.0 million, net of offering costs of $ 11.2 million in connection with the Company’s IPO. On July 14, 2026, the Company issued an additional 1,012,085 shares of Voting Common Stock for net proceeds of $ 17.1 million, net of offering costs of $ 1.1 million in connection with the exercise of the over allotment option. Certain shares of common stock issued and outstanding include unvested restricted stock awards granted to employees. These restricted shares are legally issued and carry voting rights equivalent to vested shares of common stock, notwithstanding that such shares are subject to forfeiture until vesting conditions are satisfied. While these shares are considered legally outstanding and included within common stock outstanding, these shares are excluded from basic earnings per share and will be included within the diluted earnings per share calculation. See Note 15 – Stock-based Compensation and Note 18 – Earnings Per Common Share for more information. NOTE 13 – ACCUMULATED OTHER COMPREHENSIVE (LOSS)/INCOME The Company’s Accumulated other comprehensive income/(loss) is comprised of unrealized gains and losses associated with investment securities available for-sale. Gains and losses on investment securities available-for-sale are reclassified to earnings as the gains or losses are realized. The following table presents the activity in Accumulated other comprehensive income/(loss) for the three and six months ended June 30, 2026 and 2025: (in thousands) Total Tax Effect Net Investment securities available-for-sale: Balance as of March 31, 2026 $ ( 3,214 ) $ 834 $ ( 2,380 ) Unrealized losses, net ( 4,837 ) 1,249 ( 3,588 ) Reclassification of net losses on investments available-for-sale to earnings — — — Balance as of June 30, 2026 $ ( 8,051 ) $ 2,083 $ ( 5,968 ) Balance as of March 31, 2025 $ 1,169 $ ( 293 ) $ 876 Unrealized losses, net ( 2,511 ) 640 ( 1,871 ) Reclassification of net losses on investments available-for-sale to earnings — — — Balance as of June 30, 2025 $ ( 1,342 ) $ 347 $ ( 995 ) Balance as of December 31, 2025 $ 4,075 $ ( 1,051 ) $ 3,024 Unrealized losses, net ( 12,126 ) 3,134 ( 8,992 ) Balance as of June 30, 2026 $ ( 8,051 ) $ 2,083 $ ( 5,968 ) Balance as of December 31, 2024 $ ( 596 ) $ 153 $ ( 443 ) Unrealized gains, net 448 ( 107 ) 341 Reclassification of net gains on investments available-for-sale to earnings ( 1,194 ) 301 ( 893 ) Balance as of June 30, 2025 $ ( 1,342 ) $ 347 $ ( 995 ) 33 NOTE 14 – FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK, COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company enters into commitments to extend credit and standby letters of credit to meet the financing needs of its customers. For a description of the Company's accounting policy for off-balance sheet instruments, refer to Note 1 - Significant Accounting Policies to the annual Consolidated Financial Statements included in the Company's Registration Statement on Form S-1. A summary of the net commitment available to fund financial instruments with off-balance sheet credit risk as of June 30, 2026 and December 31, 2025 is as follows: (in thousands) June 30, 2026 December 31, 2025 Commercial real estate development and construction $ 201,042 $ 179,439 Residential real estate development and construction — 682 Lines of credit, primarily business lines 867,830 606,921 Standby letters of credit 9,893 20,195 Total commitments to extend credit and available lines of credit $ 1,078,765 $ 807,237 As of June 30, 2026 and December 31, 2025, the total reserve for unfunded commitments was $ 3.6 million and $ 2.7 million, respectively, which is included in Other liabilities in the Consolidated Balance Sheets. The following table summarizes the provision for credit losses on unfunded commitments for the three and six months ended June 30, 2026 and 2025: For the Three Months Ended For the Six Months Ended (in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Provision for credit losses on unfunded commitments $ 1,378 $ 955 $ 982 $ 933 The provision for credit losses on unfunded commitments is included in Provision for credit losses in the Consolidated Statements of Income. The Company is involved in various legal actions arising in the ordinary course of business. The Company’s evaluation has resulted in none being expected to result in a loss contingency. NOTE 15 – STOCK-BASED COMPENSATION As of June 30, 2026, the Company had the 2026 Omnibus Incentive Plan (“2026 Plan”), and the Employee Stock Purchase Program (“ESPP”), which were both effective as of June 11, 2026, and the Company’s 2014 Stock Incentive Plan (the “2014 Plan”). The 2026 Plan allows the Company to grant stock-based awards, including restricted stock awards, restricted stock units, stock options, stock appreciation rights, stock bonuses, and other stock-based awards. At adoption, the 2026 Plan allowed for 5,268,702 shares of Voting Common Stock to be issued, and will terminate on June 11, 2036, ten years following the effective date. The total shares of Voting Common Stock available under the 2026 Plan is subject to an annual increase. As of June 30, 2026, there were 5,231,676 shares remaining to be issued under the 2026 Plan. The 2014 Plan was adopted on June 25, 2014, and has a termination date of March 27, 2036, with 351,204 shares remaining unissued under the 2014 Plan. Effective as of June 11, 2026, the Company does not intend to grant additional share-based awards under the 2014 Plan, however, all awards granted under the 2014 Plan will continue to be administered under the 2014 Plan until all awards are vested, forfeited or exercised. Subject to the Board declaring an offering, the ESPP allows employees to participate in the ownership of the Company by providing employees, excluding highly-compensated employees, an opportunity to purchase shares of 34 Voting Common Stock at a discount. At adoption, the ESPP allows for 987,881 shares of Voting Common Stock to be purchased, and may be terminated at any time by the administrator. The total shares of Voting Common Stock available for purchase under the ESPP is subject to an annual increase. To participate, employees must meet minimum service requirements, including years of prior service, and ongoing annual and weekly service thresholds. Eligible employees may elect to defer between 1 % and 15 % of their eligible compensation for the purchase of Voting Common Stock during offering periods. The offering periods and purchase price, which are both subject to certain limitations, will be established at the discretion of the Company. As of June 30, 2026, no offerings have been declared under the ESPP. The Company believes that share-based compensation better aligns the interests of its employees with those of its stockholders. For a description of the terms of the 2014 Plan, 2026 Plan, and ESPP, refer to the Company's Registration Statement on Form S-1. Stock-based compensation expense is recognized using the graded method over the vesting period of the stock option, restricted stock award, or restricted stock unit granted. During the three and six months ended June 30, 2026, expense of $ 4.5 million and $ 7.3 million, respectively, was recognized associated with stock options, restricted stock awards, and restricted stock units. During the three and six months ended June 30, 2025, expense of $ 2.2 million and $ 4.3 million, respectively, was recognized associated with stock options and restricted stock awards. Stock Options Stock option awards are granted with an exercise price equal to the fair value of the Company’s Voting Common Stock at the date of grant; those option awards vest based on one to five years of continuous service and have 10 -year contractual terms. Certain options provide for accelerated vesting if there is a change in control or other qualifying events. Stock options issued can require meeting certain performance criteria prior to exercise. The fair values of options granted during the six months ended June 30, 2026 and June 30, 2025, were determined using the Black-Scholes option-pricing model. For stock options that are subject to exercise conditions in addition to the grant date exercise price, the Black-Scholes option pricing model was used in conjunction with (i) a Monte Carlo Simulation model for determining stock price values and (ii) probability weights for scenarios where the Company either remains independent or is acquired. The description of the exercise conditions that apply to certain series of options is more fully described in the 2014 Plan. The following table presents the assumptions used to determine the fair value of the options granted during the six months ended June 30, 2026 and 2025: June 30, 2026 June 30, 2025 Black-Scholes Monte Carlo Black-Scholes Monte Carlo Volatility 45 % 45 % 40 % 40 % Expected dividend yield — % — % — % — % Expected term 6.5 years 1.75 - 10.0 years 6.5 years 2.25 - 10.0 years Risk-free rate 3.89 % 3.47 % - 4.18 % 4.46 % 4.25 % - 4.58 % An active market for the Company’s common stock did not exist until the completion of the Company’s IPO on June 11, 2026, therefore the expected volatility in the tables above is based on the average annual historical volatility of common stock for comparable public banks in the banking industry. The estimated option life is derived from the “simplified method” formula, or from simulation results for options valued using Monte Carlo Simulation. The risk-free rate is based upon the U.S. Treasury note rate in effect at the time of grant. The expected dividend yield is based upon implied and historical dividend declarations. 35 A summary of the activity of options outstanding for the six months ended June 30, 2026, is presented in the following table: (dollars in thousands, except per share amounts) Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of December 31, 2025 9,809,692 $ 14.61 5.6 years $ 54,150 Granted 85,000 $ 20.13 Outstanding as of March 31, 2026 9,894,692 $ 14.82 5.4 years $ 52,577 Granted 61,000 $ 19.43 Exercised ( 36,400 ) $ 15.17 $ 180 Forfeited or expired ( 11,200 ) $ 12.63 Outstanding as of June 30, 2026 9,908,092 $ 14.84 5.1 years $ 34,426 Exercisable as of June 30, 2026 7,119,326 $ 15.23 4.9 years $ 21,771 Of the 9,908,092 outstanding options, 2,335,736 options with a weighted average exercise price of $ 13.00 were subject to conditions with respect to stock price levels that must be satisfied to exercise the options, as more fully described in the 2014 Plan. A summary of the activity of unvested stock options for the six months ended June 30, 2026, is presented in the following table: Shares Weighted-Average Grant-Date Fair Value Unvested as of December 31, 2025 2,233,040 $ 4.49 Granted 85,000 $ 10.17 Vested ( 135,500 ) $ 4.92 Unvested as of March 31, 2026 2,182,540 $ 4.69 Granted 61,000 $ 9.77 Vested ( 1,637,640 ) $ 4.10 Forfeited ( 11,200 ) $ 4.01 Unvested as of June 30, 2026 594,700 $ 6.83 The total fair value of stock options vested was $ 6.7 million and $ 7.4 million during the three and six months ended June 30, 2026, and $ 6.7 million and $ 7.4 million during the three and six months ended June 30, 2025, respectively. As of June 30, 2026, there was $ 2.6 million of unrecognized compensation cost related to stock options, which is expected to be recognized over a weighted-average period of 2.5 years. Restricted Stock Awards The Company granted 1,124,985 restricted stock awards during the six months ended June 30, 2026. The restricted stock awards granted during the six months ended June 30, 2026 vest over three years . 36 The following table summarizes the unvested restricted stock awards activity for the six months ended June 30, 2026: Shares Weighted-Average Grant-Date Fair Value Unvested as of December 31, 2025 396,022 $ 16.76 Granted 181,860 $ 20.13 Vested ( 91,532 ) $ 16.78 Unvested as of March 31, 2026 486,350 $ 18.02 Granted 943,125 $ 19.43 Forfeited ( 3,488 ) $ 17.96 Unvested as of June 30, 2026 1,425,987 $ 18.95 As of June 30, 2026, there was $ 20.9 million of unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over a weighted-average period of 1.8 years. Restricted Stock Units The Company granted 37,026 restricted stock units during the six months ended June 30, 2026. The restricted stock units granted during the six months ended June 30, 2026 vest over 1.3 years. The following table summarizes the unvested restricted stock units activity for the six months ended June 30, 2026: Shares Weighted-Average Grant-Date Fair Value Unvested as of December 31, 2025 — $ — Unvested as of March 31, 2026 — $ — Granted 37,026 $ 18.00 Unvested as of June 30, 2026 37,026 $ 18.00 As of June 30, 2026, there was $ 0.6 million of unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 1.2 years. NOTE 16 – EMPLOYEE BENEFIT PLANS As of June 30, 2026, the Company maintained a 401(k) plan, adopted by the Bank (the “401(k) Plan”), a multiple employer plan covering all full-time and part-time employees. Employees become eligible to participate in the 401(k) Plan on the first day of the month that is thirty days after their hire date. Under the 401(k) Plan, a participant may elect to contribute up to 80 % of their compensation to the extent the total dollar amount is permitted by law. Under the terms of the 401(k) Plan, the Company will make a matching contribution of 100 % up to 4 % of employee compensation. Both employee contributions and employer matching contributions vest immediately. The Company made matching contributions of $ 1.1 million and $ 1.7 million during the three and six months ended June 30, 2026, respectively, and $ 0.9 million and $ 1.6 million during the three and six months ended June 30, 2025, respectively. The Company may also make discretionary contributions for each participant. The amount of discretionary contribution, if any, is determined on an annual basis by the Company’s Board of Directors. No discretionary contributions were made by the Company during the three and six months ended June 30, 2026 and 2025. 37 NOTE 17 – OTHER NON-INTEREST INCOME AND NON-INTEREST EXPENSE The following tables present selected components of other non-interest income and other non-interest expense for the three and six months ended June 30, 2026 and 2025: For the Three Months Ended For the Six Months Ended (in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Trust administration $ 7,324 $ — $ 11,588 $ — Rental income 1,225 — 1,225 — Net fee on FHA/HUD originations 996 2,277 1,262 5,536 Program fees 492 1,087 1,084 2,083 Deposit fees 439 263 743 519 Other non-interest income ( 137 ) ( 189 ) ( 893 ) ( 91 ) Total other non-interest income $ 10,339 $ 3,438 $ 15,009 $ 8,047 For the Three Months Ended For the Six Months Ended (in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Referral fees $ 323 $ 523 $ 683 $ 988 Other non-interest expense 3,891 3,548 6,530 5,908 Total other non-interest expense $ 4,214 $ 4,071 $ 7,213 $ 6,896 NOTE 18 – EARNINGS PER COMMON SHARE The following table presents the calculation of basic and diluted earnings per Voting and Non-voting common share for the three months ended June 30, 2026 and 2025: For the Three Months Ended June 30, 2026 June 30, 2025 (in thousands, except share and per share data) Voting Non-Voting Voting Non-Voting Basic Earnings Per Common Share: Net income $ 2,069 $ 2,053 $ 7,134 $ 7,975 Weighted-average shares - basic 21,175,037 21,014,378 19,000,131 21,242,551 Basic earnings per common share $ 0.10 $ 0.10 $ 0.38 $ 0.38 Diluted Earnings Per Common Share: Net income $ 2,176 $ 1,946 $ 7,335 $ 7,774 Weighted-average shares - basic 21,175,037 21,014,378 19,000,131 21,242,551 Effect of dilutive securities - stock options and restricted stock awards 2,323,285 — 1,042,752 — Weighted-average shares - diluted 23,498,322 21,014,378 20,042,883 21,242,551 Diluted earnings per common share $ 0.09 $ 0.09 $ 0.37 $ 0.37 38 The following table presents the calculation of basic and diluted earnings per Voting and Non-voting common share for the six months ended June 30, 2026 and 2025: For the Six Months Ended June 30, 2026 June 30, 2025 (in thousands, except share and per share data) Voting Non-Voting Voting Non-Voting Basic Earnings Per Common Share: Net income $ 7,569 $ 8,185 $ 12,385 $ 13,851 Weighted-average shares - basic 20,120,097 21,127,834 18,993,327 21,242,551 Basic earnings per common share $ 0.38 $ 0.39 $ 0.65 $ 0.65 Diluted Earnings Per Common Share: Net income $ 7,983 $ 7,771 $ 12,769 $ 13,467 Weighted-average shares - basic 20,120,097 21,127,834 18,993,327 21,242,551 Effect of dilutive securities - stock options and restricted stock awards 2,224,165 — 1,164,416 — Weighted-average shares - diluted 22,344,262 21,127,834 20,157,743 21,242,551 Diluted earnings per common share $ 0.36 $ 0.37 $ 0.63 $ 0.63 The Company has two classes of common stock, Voting and Non-voting, which are participating securities. Earnings are allocated to each class based on their respective participation rights, and basic and diluted earnings per share are presented under the two-class method in accordance with ASC 260. All potentially dilutive shares have voting rights, and net income has been reallocated to reflect the incremental dilutive voting shares. Diluted weighted-average shares outstanding includes 2,323,285 and 2,224,165 incremental common stock equivalents related to stock options, restricted stock awards, and restricted stock units as calculated under the treasury-stock method for the three and six months ended June 30, 2026, respectively, as the stock options and restricted stock awards are not considered participating securities. Diluted weighted-average shares outstanding includes 1,042,752 and 1,164,416 incremental common stock equivalents related to stock options and restricted stock awards as calculated under the treasury-stock method for the three and six months ended June 30, 2025, respectively, as the stock options and restricted stock awards are not considered participating securities. For the three and six months ended June 30, 2026, 21,966 shares and 20,438 shares, respectively, of common stock equivalents were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For the three and six months ended June 30, 2025, 18,320 shares and 19,684 shares, respectively, of common stock equivalents were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. Additionally, for the three and six months ended June 30, 2026 and 2025, 2,335,736 stock options and 2,325,336 stock options, respectively, with unresolved substantive contingencies that must be satisfied before shares can be exercised and issued, and therefore do not represent potential shares of common stock, have been excluded from the weighted-average shares outstanding to calculate basic and diluted earnings per common share. As of June 30, 2026 and 2025, 1,463,013 shares and 386,522 shares, respectively, of unvested restricted stock awards with voting rights are included in outstanding shares of common stock on the Consolidated Statements of Changes in Stockholders’ Equity, but are excluded from the calculation of basic earnings per share. 39 NOTE 19 – RELATED PARTY TRANSACTIONS In the ordinary course of business, the Company may make loans to and receive deposits from related parties, which primarily includes principal officers and directors, and their affiliates. The Company had no loans outstanding to related parties as of June 30, 2026 and December 31, 2025. The aggregate amounts of deposits from related parties as of June 30, 2026 and December 31, 2025, was $ 5.7 million and $ 5.2 million, respectively. For more information on the activity of loans and deposits with related parties, see Note 4 – Loans and Note 10 – Deposits, respectively. The Company has a related party relationship with BancAlliance because certain employees of the Company also hold officer roles with BancAlliance, and a subsidiary of the Company serves as the asset manager of BancAlliance members. The Company sources loans for its own balance sheet and makes those loans available for sale through the BancAlliance program. Loans sold to BancAlliance are immediately sold to members in the program with terms of loan sales, including pricing, dictated by a Master Participation Agreement for the program that applies the same to all members of BancAlliance. BancAlliance is a pass-through participant and does not incur an economic or accounting impact from the program. Transactions with BancAlliance for the three and six months ended June 30, 2026 and 2025, and amounts due from BancAlliance as of June 30, 2026 and December 31, 2025, are presented in the following tables: For the Three Months Ended For the Six Months Ended (in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Loans sold to BancAlliance $ 40,919 $ 84,884 $ 77,195 $ 138,157 Net gains realized on loans sold to BancAlliance $ 256 $ 498 $ 482 $ 891 As of June 30, 2026 and December 31, 2025, the amounts due from BancAlliance related to funding and expense advancements were $ 3.4 million and $ 6.0 million, respectively. In the ordinary course of business, the Company incurs expenses from transactions with vendors who are considered related parties. These transactions resulted in a non-material amount of expense for the three and six months ended June 30, 2026 and 2025. NOTE 20 – REGULATORY MATTERS The Company and the Bank are subject to regulatory capital requirements administered by federal and state banking agencies. As of June 30, 2026 and December 31, 2025, each of the Company and the Bank qualified as a community banking organization under the community bank leverage ratio ("CBLR") framework and elected to measure capital adequacy under that framework. Effective July 1, 2026, the required minimum capital level under CBLR decreased from 9% to 8%. For a description of the CBLR framework, discussion of the changes effective July 1, 2026, and applicable capital requirements, refer to Management’s Discussion and Analysis of Results of Operations and Financial Condition—Liquidity and Capital Resources—Capital Resources within this Quarterly Form 10-Q. 40 The following table presents as of June 30, 2026 and December 31, 2025, the Company’s and the Bank’s actual and required capital amounts and leverage ratios. The table also includes the actual amounts and risk-weighted ratios, which the Company has opted to disclose as of June 30, 2026 and December 31, 2025, although they are not required under the CBLR framework: Actual To Be Well Capitalized Under Prompt Corrective Action Provisions (CBLR Framework) (dollars in thousands) Amount Ratio Amount Ratio As of June 30, 2026: Required under CBLR framework: Tier 1 leverage ratio: Company $ 841,241 10.38 % $ 729,154 9.00 % Bank $ 909,300 11.24 % $ 727,930 9.00 % Optional under CBLR framework: Total capital to risk-weighted assets ratio: Company $ 1,041,003 16.05 % N/A N/A Bank $ 967,774 14.98 % N/A N/A Tier 1 capital to risk-weighted assets ratio: Company $ 841,241 12.97 % N/A N/A Bank $ 909,300 14.08 % N/A N/A Common Equity Tier 1 to risk weighted-assets ratio: Company $ 841,241 12.97 % N/A N/A Bank $ 909,300 14.08 % N/A N/A As of December 31, 2025: Required under CBLR framework: Tier 1 leverage ratio: Company $ 748,650 9.79 % $ 688,367 9.00 % Bank $ 848,960 11.11 % $ 687,907 9.00 % Optional under CBLR framework: Total capital to risk-weighted assets ratio: Company $ 934,965 15.89 % N/A N/A Bank $ 894,305 15.14 % N/A N/A Tier 1 capital to risk-weighted assets ratio: Company $ 748,650 12.72 % N/A N/A Bank $ 848,960 14.37 % N/A N/A Common Equity Tier 1 to risk weighted-assets ratio: Company $ 748,650 12.72 % N/A N/A Bank $ 848,960 14.37 % N/A N/A 41 NOTE 21 – FAIR VALUE OF FINANCIAL INSTRUMENTS The Company measures certain assets and liabilities at fair value using a three-level hierarchy that prioritizes observable inputs. Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than Level 1 prices, such as quoted prices for similar assets, interest rates, prepayment speeds, and credit risk factors. Level 3 inputs are unobservable inputs based on the Company's own assumptions about market participant pricing. For a complete description of the Company's fair value hierarchy and valuation methodologies, refer to Note 21 - Fair Value of Financial Instruments to the annual Consolidated Financial Statements included in the Company's Registration Statement on Form S-1. There have since been no significant changes to the methodologies. The following tables summarize financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: June 30, 2026 (in thousands) Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Investment securities available-for-sale: U.S. Treasury and government agencies $ 695,844 $ — $ — $ 695,844 Residential agency mortgage-backed — 312,973 — 312,973 Commercial agency mortgage-backed — 182,856 — 182,856 Municipal bonds — 8,635 — 8,635 Other — 7,301 3,056 10,357 Total investment securities available-for-sale 695,844 511,765 3,056 1,210,665 Loans held-for-sale at fair value — — 54,379 54,379 Loans held for investment at fair value — — 3,481 3,481 Total assets $ 695,844 $ 511,765 $ 60,916 $ 1,268,525 Liabilities Total liabilities $ — $ — $ — $ — 42 December 31, 2025 (in thousands) Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Investment securities available-for-sale: U.S. Treasury and government agencies $ 958,347 $ — $ — $ 958,347 Residential agency mortgage-backed — 139,077 — 139,077 Commercial agency mortgage-backed — 136,070 — 136,070 Municipal bonds — 8,635 — 8,635 Other — 7,283 5,475 12,758 Total investment securities available-for-sale 958,347 291,065 5,475 1,254,887 Loans held-for-sale at fair value — — 62,251 62,251 Loans held for investment at fair value — — 4,645 4,645 Total assets $ 958,347 $ 291,065 $ 72,371 $ 1,321,783 Liabilities Total liabilities $ — $ — $ — $ — The following tables present a reconciliation of the assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended June 30, 2026 and 2025: For the Three Months Ended June 30, 2026 Additions Sales Pay-downs/ Maturities/ Calls Transfers Realized and Unrealized Gain/(Loss) included in: (in thousands) Balance as of March 31, 2026 Earnings Other Comprehensive Loss Balance as of June 30, 2026 Assets Investment securities available-for-sale - Other $ 3,028 $ — $ — $ — $ — $ — $ 28 $ 3,056 Loans held-for-sale at fair value 57,817 — — ( 4,839 ) — 1,401 — 54,379 Loans held for investment at fair value 4,555 — — ( 1,753 ) — 679 — 3,481 Total Level 3 assets $ 65,400 $ — $ — $ ( 6,592 ) $ — $ 2,080 $ 28 $ 60,916 Liabilities Total Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — $ — 43 For the Three Months Ended June 30, 2025 Additions Sales Pay-downs/ Maturities/ Calls Transfers Realized and Unrealized Gain/(Loss) included in: (in thousands) Balance as of March 31, 2025 Earnings Other Comprehensive Income Balance as of June 30, 2025 Assets Investment securities available-for-sale - Other $ 5,533 $ — $ — $ — $ — $ — $ ( 221 ) $ 5,312 Loans held-for-sale at fair value 102,765 8,938 ( 7,755 ) ( 21,870 ) ( 157 ) ( 409 ) — 81,512 Loans held for investment at fair value 6,685 — — ( 890 ) 157 48 — 6,000 Total Level 3 assets $ 114,983 $ 8,938 $ ( 7,755 ) $ ( 22,760 ) $ — $ ( 361 ) $ ( 221 ) $ 92,824 Liabilities Total Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — $ — During the three months ended June 30, 2026 and 2025, the Company did not transfer any assets to or from Level 3. The following tables present a reconciliation of the assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2026 and 2025: For the Six Months Ended June 30, 2026 Additions Sales Pay-downs/ Maturities/ Calls Transfers Realized and Unrealized Gain/(Loss) included in: (in thousands) Balance as of December 31, 2025 Earnings Other Comprehensive Loss Balance as of June 30, 2026 Assets Investment securities available-for-sale - Other $ 5,475 $ — $ — $ ( 2,473 ) $ — $ — $ 54 $ 3,056 Loans held-for-sale at fair value 62,251 2,414 ( 118 ) ( 10,999 ) ( 151 ) 982 — 54,379 Loans held for investment at fair value 4,645 504 — ( 2,457 ) 151 638 — 3,481 Total Level 3 assets $ 72,371 $ 2,918 $ ( 118 ) $ ( 15,929 ) $ — $ 1,620 $ 54 $ 60,916 Liabilities Total Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — $ — 44 For the Six Months Ended June 30, 2025 Additions Sales Pay-downs/ Maturities/ Calls Transfers Realized and Unrealized Gain/(Loss) included in: (in thousands) Balance as of December 31, 2024 Earnings Other Comprehensive Income Balance as of June 30, 2025 Assets Investment securities available-for-sale - Other $ 5,465 $ — $ — $ — $ — $ — $ ( 153 ) $ 5,312 Loans held-for-sale at fair value 108,575 15,187 ( 10,790 ) ( 31,530 ) ( 157 ) 227 — 81,512 Loans held for investment at fair value 7,081 — — ( 1,215 ) 157 ( 23 ) — 6,000 Total Level 3 assets $ 121,121 $ 15,187 $ ( 10,790 ) $ ( 32,745 ) $ — $ 204 $ ( 153 ) $ 92,824 Liabilities Total Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — $ — See Note 4 – Loans for more information regarding realized and unrealized gains and losses on loans. Unrealized losses on investment securities available-for-sale are included in Net change in unrealized gain on investments available-for-sale in the Consolidated Statements of Comprehensive Income. During the six months ended June 30, 2026 and 2025, the Company did not transfer any assets to or from Level 3. The following tables present the quantitative inputs used in determining the fair value of the Company’s Level 3 assets measured on a recurring basis as of June 30, 2026 and December 31, 2025: (dollars in thousands) Fair value as of June 30, 2026 Valuation Technique Unobservable Input Range (Weighted Average) 1 Investment securities available-for-sale - Other $ 3,056 Discounted Cash Flow Discount Rate 8.0 % - 8.0 % ( 8.0 %) Loans held-for-sale at fair value $ 47,898 Market Observations Market (Premium)/Discount ( 0.4 )% - 12.5 % ( 2.6 %) Loans held-for-sale at fair value 6,481 Discounted Cash Flow Discount for Risk of Non-Payment 23.2 % - 50.7 % ( 30.5 %) Discount Rate 8.9 % - 11.8 % ( 9.4 %) Total loans held-for-sale at fair value $ 54,379 Loans held for investment at fair value $ 2,379 Market Observations Market (Premium)/Discount ( 0.4 )% - 12.5 % ( 1.7 %) Loans held for investment at fair value 1,102 Discounted Cash Flow Discount for Risk of Non-Payment 23.2 % - 50.7 % ( 38.5 %) Discount Rate 8.9 % - 11.8 % ( 9.6 %) Total loans held for investment at fair value $ 3,481 __________________ (1) Weighted averages are calculated by using the product of the inputs multiplied by the relative fair values of the instruments. 45 (dollars in thousands) Fair value as of December 31, 2025 Valuation Technique Unobservable Input Range (Weighted Average) 1 Investment securities available-for-sale - Other $ 5,475 Discounted Cash Flow Discount Rate 7.5 % - 7.6 % ( 7.5 %) Loans held-for-sale at fair value $ 58,059 Market Observations Market (Premium)/Discount ( 1.4 )% - 7.6 % ( 2.3 %) Loans held-for-sale at fair value 4,192 Discounted Cash Flow Discount for Risk of Non-Payment 10.0 % - 40.0 % ( 30.6 %) Discount Rate 9.3 % - 11.8 % ( 10.0 %) Total loans held-for-sale at fair value $ 62,251 Loans held for investment at fair value $ 3,853 Market Observations Market (Premium)/Discount ( 1.4 )% - 7.6 % ( 0.8 %) Loans held for investment at fair value 792 Discounted Cash Flow Discount for Risk of Non-Payment 10.0 % - 40.0 % ( 28.2 %) Discount Rate 9.3 % - 11.8 % ( 10.4 %) Total loans held for investment at fair value $ 4,645 __________________ (1) Weighted averages are calculated by using the product of the inputs multiplied by the relative fair values of the instruments. Certain assets are measured at fair value on a nonrecurring basis; that is, not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets measured at fair value on a non-recurring basis as of June 30, 2026 and December 31, 2025, are presented in the following tables: June 30, 2026 (in thousands) Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Collateral-dependent loans $ — $ — $ 56,122 $ 56,122 Impaired loans — — 11,478 11,478 OREO — — 4,642 4,642 Total $ — $ — $ 72,242 $ 72,242 December 31, 2025 (in thousands) Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Collateral-dependent loans $ — $ — $ 49,682 $ 49,682 Impaired loans — — 14,017 14,017 OREO — — 8,729 8,729 Total $ — $ — $ 72,428 $ 72,428 As of June 30, 2026 and December 31, 2025, the Company’s investment in collateral-dependent loans included individual credit loss allowances of $ 1.6 million and zero , respectively. As of June 30, 2026 and December 31, 2025, the Company’s investment in impaired loans included individual credit loss allowances of $ 0.9 million and $ 2.2 million, respectively. As of June 30, 2026 and December 31, 2025, the Company’s investment in OREO assets 46 included cumulative unrealized fair value adjustment losses of $ 2.2 million and $ 1.8 million, respectively, which are recognized in Other non-interest income in the Consolidated Statements of Income. Collateral-dependent loans are reported at fair value using the fair value of collateral less estimated selling costs. Although appraisals are obtained on collateral-dependent loans, the appraised values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation and/or management’s expertise and knowledge of the borrower’s business, and therefore they are classified as Level 3. Impaired loans are reported at fair value using the present value of expected cash flows. For impairments based on cash flow methodology, the discount rate is based on observable inputs, however the determination of cash flows requires management’s judgment, and therefore they are classified as Level 3. OREO assets have been valued using a market approach. The values were determined using market prices or similar real estate assets based on an independent appraisal, and adjusted for estimated selling costs. These estimates require management’s judgment, and therefore they are classified as Level 3. The Company discloses the fair value of financial instruments not measured at fair value on a recurring basis based on the exit price notion. Where quoted market prices are unavailable, fair values are estimated using discounted cash flow models based on observable inputs (Level 2) or unobservable inputs (Level 3). For further information on the Company's fair value methodology, refer to Note 21 - Fair Value of Financial Instruments to the annual Consolidated Financial Statements included in the Company's Registration Statement on Form S-1. The estimated fair values of the Company’s financial instruments were as follows as of June 30, 2026 and December 31, 2025: June 30, 2026 (in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash, cash equivalents and restricted cash $ 834,716 $ 834,716 $ 834,716 $ — $ — Investment securities available-for-sale, at fair value 1,210,665 1,210,665 695,844 511,765 3,056 Investment securities held-to-maturity, at amortized cost 48,634 48,831 — 33,591 15,240 Loans held-for-sale, at fair value 54,379 54,379 — — 54,379 Loans held-for-sale, at lower of cost or fair value 411,095 411,146 — — 411,146 Loans held for investment, at fair value 3,481 3,481 — — 3,481 Loans held for investment, at amortized cost 5,541,251 5,547,241 — — 5,547,241 Other earning assets 50,479 46,745 — — 46,745 Accrued interest receivable 46,445 46,445 46,445 — — Financial liabilities: Time deposits $ 1,272,951 $ 1,274,054 $ — $ 1,274,054 $ — Other deposits 5,992,884 5,992,884 5,992,884 — — Subordinated debt, net 151,181 151,662 — 151,662 — 47 December 31, 2025 (in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash, cash equivalents and restricted cash $ 648,715 $ 648,715 $ 648,715 $ — $ — Investment securities available-for-sale, at fair value 1,254,887 1,254,887 958,347 291,065 5,475 Investment securities held-to-maturity, at amortized cost 48,834 50,475 — 34,936 15,539 Loans held-for-sale, at fair value 62,251 62,251 — — 62,251 Loans held-for-sale, at lower of cost or fair value 317,411 317,411 — — 317,411 Loans held for investment, at fair value 4,645 4,645 — — 4,645 Loans held for investment, at amortized cost 5,169,248 5,213,899 — — 5,213,899 Other earning assets 55,928 54,023 — — 54,023 Accrued interest receivable 55,155 55,155 55,155 — — Financial liabilities: Time deposits $ 1,423,136 $ 1,431,710 $ — $ 1,431,710 $ — Other deposits 5,354,779 5,354,779 5,354,779 — — Subordinated debt, net 151,003 146,547 — 146,547 — 48