FIRSTSUN CAPITAL BANCORP 10-Q

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations of FirstSun General Overview In this section, unless the context suggests otherwise, references to “we,” “us,” and “our” mean the combined business of FirstSun and its wholly-owned subsidiaries, Sunflower Bank, Sunflower Wealth Advisors, LLC, and FEIF Capital Partners, LLC. FirstSun Capital Bancorp, headquartered in Denver, Colorado, is the financial holding company for Sunflower Bank, National Association, which is headquartered in Dallas, Texas and operates as Sunflower Bank and First National 1870. We conduct a full-service community banking and trust business through our wholly-owned subsidiaries—Sunflower Bank, Sunflower Wealth Advisors, LLC, and FEIF Capital Partners, LLC. The following discussion and analysis of FirstSun’s consolidated financial condition and results of operations should be read in conjunction with the unaudited consolidated financial statements and accompanying footnotes included in Item 1 of this Form 10-Q as well as our audited consolidated financial statements and footnotes for the year ended December 31, 2024 included in our 2024 Annual Report that we filed with the SEC on March 7, 2025. Historical results of operations and the percentage relationships among any amounts included, and any trends that may appear, may not indicate trends in operations or results of operations for any future periods. Annualized ratios are presented utilizing the Actual/Actual day-count convention. Prior period annualized ratios have been recalculated to conform to the current presentation. 51 Recent Development - Pending Merger with First Foundation Inc. On October 27, 2025, FirstSun and First Foundation Inc. (“First Foundation”), the holding company of Irvine, California-based First Foundation Bank (“First Foundation Bank’) entered into a definitive merger agreement. Under the merger agreement, FirstSun will continue as the surviving entity and Sunflower Bank will continue as the surviving bank. The combined holding company and bank will operate, respectively, under the FirstSun and Sunflower Bank names and brands following closing of the transaction. Under the terms of the merger agreement, the companies will merge and the First Foundation common and preferred stockholders will receive 0.16083 of a share of FirstSun common stock for each share of First Foundation common stock on a fully converted basis. Additionally, First Foundation’s warrant holders will exercise their warrants and receive FirstSun common stock in the merger and also receive additional cash consideration totaling $17.5 million in the aggregate. The combined entity is expected to have total assets of approximately $17 billion and operate in markets that are among the nation’s best in terms of growth. The parties anticipate that the merger will close early in the second quarter of 2026. 52 Financial Summary Third Quarter 2025 Highlights: • Net income of $23.2 million, $0.82 per diluted share • Net interest margin of 4.07% • Return on average total assets of 1.09% • Return on average stockholders’ equity of 8.22% • Loan growth of 10.6% annualized • Deposit growth of 0.3% annualized • 24.5% noninterest income to total revenue 1 Net income totaled $23.2 million for the third quarter of 2025 compared to net income of $22.4 million for the third quarter of 2024. Earnings per diluted share were $0.82 for the third quarter of 2025 compared to $0.79 for the third quarter of 2024. Adjusted net income, a non-GAAP financial measure, was $23.7 million or $0.84 per diluted share for the third quarter of 2024. Net income totaled $73.1 million for the nine months ended September 30, 2025, compared to net income of $59.3 million for the same period in 2024. Earnings per diluted share were $2.59 for the nine months ended September 30, 2025 compared to $2.12 for the same period in 2024. Adjusted net income, a non-GAAP financial measure, was $63.4 million or $2.27 per diluted share for the nine months ended September 30, 2024. Net income for the nine months ended September 30, 2024 was negatively impacted by a $10.6 million provision for credit loss on a specific customer in our commercial and industrial loan portfolio, net of tax, or $0.38 per diluted share. The following table sets forth certain summary financial and other information of FirstSun: As of and for the three months ended As of and for the nine months ended ($ in thousands, except per share amounts) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Income Statement: Net interest income $ 80,953 $ 76,158 $ 233,930 $ 219,863 Provision for credit losses 10,100 5,000 18,400 22,700 Noninterest income 26,333 22,075 75,135 68,157 Noninterest expense 68,901 64,664 199,733 190,367 Income before income taxes 28,285 28,569 90,932 74,953 Provision for income taxes 5,111 6,147 17,803 15,675 Net income 23,174 22,422 73,129 59,278 Adjusted net income 2 23,174 23,655 73,129 63,428 Balance Sheet: Total assets $ 8,495,437 $ 8,138,487 $ 8,495,437 $ 8,138,487 Total loans held-for-sale 85,250 72,247 85,250 72,247 Total loans held-for-investment 6,681,629 6,443,756 6,681,629 6,443,756 Total deposits 7,105,415 6,649,880 7,105,415 6,649,880 Total borrowed funds 76,163 290,709 76,163 290,709 Total stockholders' equity 1,127,513 1,034,085 1,127,513 1,034,085 Per Common Share Data: Period end common shares outstanding 27,854,764 27,665,918 27,854,764 27,665,918 Weighted average common shares outstanding, basic 27,801,255 27,612,538 27,769,320 27,355,098 Basic earnings per share $ 0.83 $ 0.81 $ 2.63 $ 2.17 Weighted average common shares outstanding, diluted 28,291,778 28,212,809 28,274,134 27,976,215 Diluted earnings per share $ 0.82 $ 0.79 $ 2.59 $ 2.12 Adjusted diluted earnings per share 2 0.82 0.84 2.59 2.27 Cash dividends $ — $ — $ — $ — Dividend payout ratio — % — % — % — % Book value per share $ 40.48 $ 37.38 $ 40.48 $ 37.38 Tangible book value per share 2 36.92 33.68 36.92 33.68 1 Total revenue is net interest income plus noninterest income. 2 See section entitled “ Non-GAAP Financial Measures and Reconciliations ” for information regarding these non-GAAP financial measures and a reconciliation to the most comparable GAAP equivalent. 1 Total revenue is net interest income plus noninterest income. 53 As of and for the three months ended As of and for the nine months ended ($ in thousands, except per share amounts) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Performance Ratios: Return on average total assets 1.09 % 1.12 % 1.19 % 1.01 % Adjusted return on average total assets 2 1.09 % 1.18 % 1.19 % 1.09 % Return on average stockholders' equity 8.22 % 8.74 % 8.99 % 8.04 % Adjusted return on average stockholders’ equity 2 8.22 % 9.22 % 8.99 % 8.60 % Return on average tangible stockholders' equity 2 9.20 % 9.94 % 10.08 % 9.23 % Adjusted return on average tangible stockholders' equity 2 9.20 % 10.48 % 10.08 % 9.86 % Net interest margin 4.07 % 4.08 % 4.07 % 4.04 % Net interest margin (FTE basis) 2 4.12 % 4.13 % 4.13 % 4.11 % Efficiency ratio 64.22 % 65.83 % 64.62 % 66.10 % Adjusted efficiency ratio 2 64.22 % 64.16 % 64.62 % 64.30 % Noninterest income to total revenue 1 24.5 % 22.5 % 24.3 % 23.7 % Balance Sheet Ratios: Loan to deposit ratio 94.0 % 96.9 % 94.0 % 96.9 % Net charge-offs (recoveries) to average loans outstanding 0.55 % 0.09 % 0.48 % 0.44 % Allowance for credit losses to loans 1.26 % 1.29 % 1.26 % 1.29 % Nonperforming loans to total loans 3 1.04 % 1.02 % 1.04 % 1.02 % Capital Ratios: Total risk-based capital to risk-weighted assets 15.81 % 15.25 % 15.81 % 15.25 % Tier 1 risk-based capital to risk-weighted assets 13.79 % 13.06 % 13.79 % 13.06 % Common Equity Tier 1 (CET 1) to risk-weighted assets 13.79 % 13.06 % 13.79 % 13.06 % Tier 1 leverage capital to average assets 12.44 % 11.96 % 12.44 % 11.96 % Average stockholders' equity to average total assets 13.27 % 12.81 % 13.23 % 12.62 % Tangible stockholders' equity to tangible assets 2 12.25 % 11.59 % 12.25 % 11.59 % Tangible stockholders' equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax 2 12.21 % 11.56 % 12.21 % 11.56 % Nonfinancial Data: Full-time equivalent employees 1,179 1,148 1,179 1,148 Banking branches 71 69 71 69 1 Total revenue is net interest income plus noninterest income. 2 See section entitled “ Non-GAAP Financial Measures and Reconciliations ” for information regarding these non-GAAP financial measures and a reconciliation to the most comparable GAAP equivalent. 3 Nonperforming loans include nonaccrual loans and accrual loans greater than 90 days past due. 54 Non-GAAP Financial Measures and Reconciliations The non-GAAP financial measures presented below are used by our management and our Board of Directors on a regular basis in addition to our GAAP results to facilitate the assessment of our financial performance. Management believes these non-GAAP financial measures enhance an investor’s understanding of our financial results by providing a meaningful basis for period-to-period comparisons, assisting in operating results analysis, and predicting future performance. This information supplements our GAAP reported results, and should not be viewed in isolation from, or as a substitute for, our GAAP results. Accordingly, this financial information should be read in conjunction with our consolidated financial statements and notes thereto for the three and nine months ended September 30, 2025, included elsewhere in this report. Non-GAAP financial measures exclude certain items that are included in the financial results presented in accordance with GAAP. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. These non-GAAP measures are not necessarily comparable to similar measures that may be represented by other companies. The following table presents GAAP to non-GAAP reconciliations: As of and for the three months ended As of and for the nine months ended ($ in thousands, except share and per share amounts) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Tangible stockholders’ equity to tangible assets: Total stockholders' equity (GAAP) $ 1,127,513 $ 1,034,085 $ 1,127,513 $ 1,034,085 Less: Goodwill and other intangible assets Goodwill (93,483) (93,483) (93,483) (93,483) Other intangible assets (5,650) (8,866) (5,650) (8,866) Tangible stockholders' equity (non-GAAP) $ 1,028,380 $ 931,736 $ 1,028,380 $ 931,736 Total assets (GAAP) $ 8,495,437 $ 8,138,487 $ 8,495,437 $ 8,138,487 Less: Goodwill and other intangible assets Goodwill (93,483) (93,483) (93,483) (93,483) Other intangible assets (5,650) (8,866) (5,650) (8,866) Tangible assets (non-GAAP) $ 8,396,304 $ 8,036,138 $ 8,396,304 $ 8,036,138 Total stockholders' equity to total assets (GAAP) 13.27 % 12.71 % 13.27 % 12.71 % Less: Impact of goodwill and other intangible assets (1.02) % (1.12) % (1.02) % (1.12) % Tangible stockholders' equity to tangible assets (non-GAAP) 12.25 % 11.59 % 12.25 % 11.59 % Tangible stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax: Tangible stockholders' equity (non-GAAP) $ 1,028,380 $ 931,736 $ 1,028,380 $ 931,736 Less: Net unrealized losses on HTM securities, net of tax (3,432) (2,852) (3,432) (2,852) Tangible stockholders’ equity less net unrealized losses on HTM securities, net of tax (non-GAAP) $ 1,024,948 $ 928,884 $ 1,024,948 $ 928,884 Tangible assets (non-GAAP) $ 8,396,304 $ 8,036,138 $ 8,396,304 $ 8,036,138 Less: Net unrealized losses on HTM securities, net of tax (3,432) (2,852) (3,432) (2,852) Tangible assets less net unrealized losses on HTM securities, net of tax (non-GAAP) $ 8,392,872 $ 8,033,286 $ 8,392,872 $ 8,033,286 Tangible stockholders’ equity to tangible assets (non-GAAP) 12.25 % 11.59 % 12.25 % 11.59 % Less: Net unrealized losses on HTM securities, net of tax (0.04) % (0.03) % (0.04) % (0.03) % Tangible stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP) 12.21 % 11.56 % 12.21 % 11.56 % Tangible book value per share: Total stockholders' equity (GAAP) $ 1,127,513 $ 1,034,085 $ 1,127,513 $ 1,034,085 Tangible stockholders' equity (non-GAAP) $ 1,028,380 $ 931,736 $ 1,028,380 $ 931,736 Total shares outstanding 27,854,764 27,665,918 27,854,764 27,665,918 Book value per share (GAAP) $ 40.48 $ 37.38 $ 40.48 $ 37.38 Tangible book value per share (non-GAAP) $ 36.92 $ 33.68 $ 36.92 $ 33.68 55 As of and for the three months ended As of and for the nine months ended ($ in thousands, except share and per share amounts) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Adjusted net income: Net income (GAAP) $ 23,174 $ 22,422 $ 73,129 $ 59,278 Add: Non-recurring adjustments Terminated merger related expenses, net of tax — 1,233 — 4,150 Total adjustments, net of tax — 1,233 — 4,150 Adjusted net income (non-GAAP) $ 23,174 $ 23,655 $ 73,129 $ 63,428 Adjusted diluted earnings per share: Diluted earnings per share (GAAP) $ 0.82 $ 0.79 $ 2.59 $ 2.12 Add: Impact of non-recurring adjustments Terminated merger related expenses, net of tax — 0.05 — 0.15 Adjusted diluted earnings per share (non-GAAP) $ 0.82 $ 0.84 $ 2.59 $ 2.27 Adjusted return on average total assets: Return on average total assets (ROAA) (GAAP) 1.09 % 1.12 % 1.19 % 1.01 % Add: Impact of non-recurring adjustments Terminated merger related expenses, net of tax — % 0.06 % — % 0.08 % Adjusted ROAA (non-GAAP) 1.09 % 1.18 % 1.19 % 1.09 % Adjusted return on average stockholders’ equity: Return on average stockholders' equity (ROACE) (GAAP) 8.22 % 8.74 % 8.99 % 8.04 % Add: Impact of non-recurring adjustments Terminated merger related expenses, net of tax — % 0.48 % — % 0.56 % Adjusted ROACE (non-GAAP) 8.22 % 9.22 % 8.99 % 8.60 % Return on average tangible stockholders’ equity: Return on average stockholders’ equity (ROACE) (GAAP) 8.22 % 8.74 % 8.99 % 8.04 % Add: Impact from goodwill and other intangible assets Goodwill 0.81 % 0.98 % 0.90 % 0.94 % Other intangible assets 0.17 % 0.22 % 0.19 % 0.25 % Return on average tangible stockholders’ equity (ROATCE) (non-GAAP) 9.20 % 9.94 % 10.08 % 9.23 % Adjusted return on average tangible stockholders’ equity: Return on average tangible stockholders' equity (ROATCE) (non-GAAP) 9.20 % 9.94 % 10.08 % 9.23 % Add: Impact of non-recurring adjustments Terminated merger related expenses, net of tax — % 0.54 % — % 0.63 % Adjusted ROATCE (non-GAAP) 9.20 % 10.48 % 10.08 % 9.86 % Adjusted total noninterest expense: Total noninterest expense (GAAP) $ 68,901 $ 64,664 $ 199,733 $ 190,367 Less: Non-recurring adjustments Terminated merger related expenses — (1,633) — (5,168) Total non-recurring adjustments — (1,633) — (5,168) Adjusted total noninterest expense (non-GAAP) $ 68,901 $ 63,031 $ 199,733 $ 185,199 Adjusted efficiency ratio: Efficiency ratio (GAAP) 64.22 % 65.83 % 64.62 % 66.10 % Less: Impact of non-recurring adjustments Terminated merger related expenses — % (1.67) % — % (1.80) % Adjusted efficiency ratio (non-GAAP) 64.22 % 64.16 % 64.62 % 64.30 % Fully tax equivalent (“FTE”) net interest income and net interest margin: Net interest income (GAAP) $ 80,953 $ 76,158 $ 233,930 $ 219,863 Gross income effect of tax exempt income 1,225 1,132 3,621 3,606 FTE net interest income (non-GAAP) $ 82,178 $ 77,290 $ 237,551 $ 223,469 Average earning assets $ 7,888,042 $ 7,430,357 $ 7,681,360 $ 7,263,093 Net interest margin 4.07 % 4.08 % 4.07 % 4.04 % Net interest margin on FTE basis (non-GAAP) 4.12 % 4.13 % 4.13 % 4.11 % 56 Segments Banking Three months ended September 30, 2025 and 2024 Income before income taxes decreased $2.9 million to $25.7 million for the third quarter of 2025, from $28.6 million for the same period in 2024. The period over period decrease was primarily due to an increase in provision for credit losses and an increase in salary and employee benefits, partially offset by an increase in net interest income. Provision for credit losses increased $4.2 million to $10.5 million for the third quarter of 2025, compared to $6.4 million for the same period in 2024, primarily due to deterioration in a specific commercial and industrial customer relationship, impacts from net changes in loan portfolio balances, and impacts from net portfolio downgrades. Salary and employee benefits increased $4.0 million to $34.5 million for the third quarter of 2025, from $30.5 million for the same period in 2024, primarily due to an increase in headcount of C&I bankers and support personnel and higher medical insurance costs. Net interest income increased $3.6 million to $76.0 million for the third quarter of 2025, compared to $72.4 million for the same period in 2024, primarily due to a decrease in the cost of interest-bearing liabilities. Identifiable assets for our Banking segment increased $0.2 billion to $7.2 billion at September 30, 2025 from $7.0 billion at September 30, 2024. The growth in identifiable assets was primarily driven by organic growth in our loan portfolio. Nine months ended September 30, 2025 and 2024 Income before income taxes increased $9.3 million to $86.1 million for the nine months ended September 30, 2025, from $76.7 million for the same period in 2024. The period over period increase was primarily due to a decrease in provision for credit losses and an increase in net interest income, partially offset by an increase in salary and employee benefits. Provision for credit losses decreased $5.3 million to $19.1 million for the nine months ended September 30, 2025, compared to $24.4 million for the same period in 2024, primarily due to a $14.1 million provision for credit loss on a specific customer in our commercial and industrial loan portfolio during the nine months ended September 30, 2024. Net interest income increased $9.2 million to $219.8 million for the nine months ended September 30, 2025 compared to $210.6 million for the same period in 2024, primarily due to a decrease in the cost of interest-bearing liabilities, relative to a decrease in the yield on interest earning assets, as a result of a declining interest rate environment and mix shift away from higher rate certificates of deposits. Salary and employee benefits increased $7.3 million to $98.5 million for the nine months ended September 30, 2025, compared to $91.3 million for the same period in 2024, primarily due to increased headcount, including the hiring of commercial and industrial bankers in Southern California. Mortgage Operations Three months ended September 30, 2025 and 2024 Income before income taxes increased $2.6 million to $5.2 million for the third quarter of 2025, compared to $2.7 million for the same period in 2024. The period over period increase was primarily due to an increase in revenue from mortgage banking services and increase in net interest income, partially offset by an increase in salary and employee benefits. Revenue from mortgage banking services increased $3.8 million to $13.3 million for the third quarter of 2025, compared to $9.4 million for the same period in 2024, primarily due to an increase in loan originations sold and higher margins, and higher net MSR capitalization. Net interest income increased $1.6 million to $6.5 million for the third quarter of 2025, compared to $5.0 million for the same period in 2024, primarily due to higher average balance and higher average yield on residential real estate loans. Salary and employee benefits increased $1.4 million to $9.7 million for the third quarter of 2025, compared to $8.3 million for the same period in 2024, primarily due to higher levels of variable compensation associated with an increase in mortgage loan originations. Identifiable assets for our Mortgage Operations segment increased $0.1 billion to $1.2 billion at September 30, 2025 from $1.0 billion at September 30, 2024. The growth in identifiable assets was primarily driven by organic growth in our residential mortgage portfolio. Nine months ended September 30, 2025 and 2024 Income before income taxes increased $4.7 million to $12.1 million for the nine months ended September 30, 2025, compared to $7.5 million for the same period in 2024. The period over period increase was primarily due to an increase in net interest income and increase in revenue from mortgage banking services, partially offset by an increase in salary and employee benefits. Net interest income increased $5.1 million to $18.1 million for the nine months ended September 30, 2025, compared to $13.0 million for the same period in 2024, primarily due to higher average balance and higher average yield on residential real estate loans. Revenue from mortgage banking services increased $5.7 million to $36.9 million for the nine months ended September 30, 2025, compared to $31.2 million for the same period in 2024, primarily due to an 57 increase in loan originations sold, partially offset by slightly lower margins, and an increase in mortgage servicing income. Salary and employee benefits increased $4.0 million to $27.9 million for the nine months ended September 30, 2025, compared to $23.9 million for the same period in 2024, primarily due to higher levels of variable compensation associated with an increase in mortgage loan originations. Critical Accounting Estimates In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Our accounting and reporting estimates are in accordance with generally accepted accounting principles, or “U.S. GAAP,” and conform to general practices within the banking industry. Estimates that are susceptible to significant changes include accounting for the allowance for credit losses and fair value measurements of MSRs, both of which require significant judgments by management. Actual results could result in material changes to our consolidated financial condition or consolidated results of operations. Certain policies inherently have a greater reliance on the use of estimates, assumptions and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. We have identified the determination of the allowance for credit losses and fair value measurements of MSRs to be the accounting areas that require the most subjective or complex judgments and, as such, could be most subject to revision as new or additional information becomes available or circumstances change, including overall changes in the economic climate and/or market interest rates. Therefore, we consider the estimates underlying these policies to be critical accounting estimates and we discuss them directly with the Audit Committee of our Board of Directors at least annually. The following is a description of our critical accounting estimates and an explanation of the methods and assumptions underlying their application. Allowance for Credit Losses - Management maintains an ACL for loans based upon management’s estimate of the lifetime expected credit losses in the loan portfolio as of the balance sheet date, excluding loans held for sale. Additionally, management maintains an ACL for held-to-maturity or available-for-sale debt securities, and other off-balance sheet credit exposures (e.g., unfunded loan commitments). For loans and unfunded loan commitments, the estimate of lifetime credit losses includes the use of quantitative models that incorporate forward-looking macroeconomic scenarios that are applied over the contractual lives of the portfolios, adjusted, as appropriate, for prepayments and permitted extension options using historical experience. For purposes of the ACL for lending commitments, such allowance is determined using the same methodology as the ACL for loans, while also taking into consideration the probability of drawdowns or funding, and whether such commitments are cancellable by us. The ACL for held-to-maturity and available-for-sale debt securities is measured using a risk-adjusted discounted cash flow approach that also considers relevant current and forward-looking economic variables and the ACL is limited to the difference between the fair value of the security and its amortized cost. Judgment is specifically applied in the determination of economic assumptions, length of the initial loss forecast period, the reversion of losses beyond the initial forecast period, usage of macroeconomic scenarios, probabilities of default, losses given default, amortization and prepayment rates, and qualitative factors, which may not be adequately captured in the loss model, as further discussed below. The macroeconomic scenarios utilized by management include variables that have historically been key drivers of increases and decreases in credit losses. These variables include, but are not limited to, unemployment rates, housing and commercial real estate prices, gross domestic product levels, corporate bond spreads and changes in equity market prices. Management derives the economic forecasts it uses in its ACL model from Moody’s Analytics. The latter has a large team of economics, database managers and operational engineers with a history of producing monthly economic forecasts for over 25 years. Management has currently set an initial forecast period (“reasonable and supportable period”) of four years and a reversion period of one year, utilizing a straight-line approach and reverting back to the historical macroeconomic mean. After the reversion period, a historical loss forecast period covering the remaining contractual life, adjusted for prepayments, is used based on changes in key historical economic variables during representative historical expansionary and recessionary periods. Changes in economic forecasts impact the probability of default (“PD”), loss-given default (“LGD”), and exposure at default (“EAD”) for each instrument, and therefore influence the amount of future cash flows for each instrument that management does not expect to collect. Further, management periodically considers the need for qualitative adjustments to the ACL. Qualitative adjustments may be related to and include, but not limited to, factors such as the following: (i) management’s assessment of economic 58 forecasts used in the model and how those forecasts align with management’s overall evaluation of current and expected economic conditions; (ii) organization specific risks such as credit concentrations, collateral specific risks, nature, and size of the portfolio and external factors that may ultimately impact credit quality, and (iii) other limitations associated with factors such as changes in underwriting and loan resolution strategies, among others. The qualitative factors applied on September 30, 2025, and the importance and levels of the qualitative factors applied, may change in future periods depending on the level of changes to items such as the uncertainty of economic conditions and management’s assessment of the level of credit risk within the loan portfolio as a result of such changes, compared to the amount of ACL calculated by the model. The evaluation of qualitative factors is inherently imprecise and requires significant management judgment. The ACL can also be impacted by factors outside of management’s control, which include unanticipated changes in asset quality of the portfolio, such as deterioration in borrower delinquencies, or credit scores in our residential real estate and consumer portfolio. Further, the current fair value of collateral is utilized to assess the expected credit losses when a financial asset is considered to be collateral dependent. Our process for determining the ACL is further discussed in “Note 1 - Basis of Presentation, Description of Business and Summary of Significant Accounting Policies” in our 2024 Annual Report . Fair Value Measurement of MSRs - Our residential mortgage servicing rights are measured at fair value on a recurring basis. We estimate the fair value of our MSRs using a process that utilizes a discounted cash flow model and analysis of current market data to arrive at the estimate. The cash flow assumptions used in the model are based on numerous factors, with the key assumptions being mortgage prepayment speeds, discount rates and cost to service that management believes are consistent with the assumptions that other similar market participants use in valuing MSRs. The change of any of these key assumptions due to market conditions or other factors could materially affect the fair value of our MSRs. We also utilize a third-party consulting firm to assist us with the valuation. Because of the nature of the valuation inputs, we classify the valuation of our MSRs as Level 3 in the fair value hierarchy. See Note 4 - Mortgage Servicing Rights for our assumptions used in valuing the MSRs. For information concerning the hypothetical sensitivity of the key assumptions under adverse changes on our MSRs, see the table under “Noninterest Income” elsewhere in the Management’s Discussion and Analysis of Financial Condition and Results of Operations in this report. Results of Operations The following table sets forth components of our results of operations: For the three months ended September 30, For the nine months ended September 30, ($ in thousands, except per share amounts) 2025 2024 2025 2024 Net interest income $ 80,953 $ 76,158 $ 233,930 $ 219,863 Provision for credit losses 10,100 5,000 18,400 22,700 Noninterest income 26,333 22,075 75,135 68,157 Noninterest expense 68,901 64,664 199,733 190,367 Income before income taxes 28,285 28,569 90,932 74,953 Provision for income taxes 5,111 6,147 17,803 15,675 Net income 23,174 22,422 73,129 59,278 Diluted earnings per share $ 0.82 $ 0.79 $ 2.59 $ 2.12 Return on average total assets 1.09 % 1.12 % 1.19 % 1.01 % Return on average stockholders' equity 8.22 % 8.74 % 8.99 % 8.04 % Net interest margin 4.07 % 4.08 % 4.07 % 4.04 % Net interest margin - FTE basis (non-GAAP) 1 4.12 % 4.13 % 4.13 % 4.11 % Efficiency ratio 64.22 % 65.83 % 64.62 % 66.10 % Noninterest income to total revenue 2 24.5 % 22.5 % 24.31 % 23.66 % 1 See section entitled “ Non-GAAP Financial Measures and Reconciliations ” for information regarding non-GAAP financial measures and a reconciliation to the most comparable GAAP equivalent. 2 Total revenue is net interest income plus noninterest income. General Our results of operations depend significantly on net interest income, which is the difference between interest income on interest-earning assets, consisting primarily of interest income on loans and investment securities and interest expense on 59 interest-bearing liabilities, consisting primarily of deposits and borrowings. Our results of operations are also dependent on our generation of noninterest income, consisting primarily of income from mortgage banking services, treasury management service fees, service charges on deposit accounts, trust and investment advisory fees and credit and debit card fees. Other factors contributing to our results of operations include our provisions for credit losses, income taxes, and noninterest expenses, such as salaries and employee benefits, occupancy and equipment, amortization of intangible assets and other operating costs. Net Interest Income Net interest income, representing interest income less interest expense, is a significant contributor to our revenues and earnings. We generate interest income from interest and dividends on interest-earning assets, which are principally comprised of loans and investment securities. We incur interest expense from interest owed or paid on interest-bearing liabilities, including interest-bearing deposits, FHLB advances and other borrowings. Net interest income and margin are shaped by the characteristics of the underlying products, including volume, term and structure of each product. We measure and monitor yields on our loans and other interest-earning assets, the costs of our deposits and other funding sources, our net interest spread and our net interest margin. Net interest spread is the difference between rates earned on interest-earning assets and rates paid on interest-bearing liabilities. Net interest margin is calculated as net interest income divided by average interest-earning assets. Interest earned on our loan portfolio is the largest component of our interest income. Our loan portfolios are presented at the principal amount outstanding net of deferred origination fees and unamortized discounts and premiums. Interest income is recognized based on the principal balance outstanding and the stated rate of the loan. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment of the yield on the related loan. Non-PCD loans acquired are initially recorded at fair value and the resulting discount or premium are recognized as an adjustment of the yield on the related loans. Our net interest income can be significantly influenced by a variety of factors, including overall loan demand, economic conditions, credit risk, the amount of non-earning assets including nonperforming loans and OREO, the amounts of and rates at which assets and liabilities reprice, variances in prepayment of loans and securities, exercise of call options on borrowings or securities, a general rise or decline in interest rates, changes in the slope of the yield-curve, and balance sheet growth or contraction. Three months ended September 30, 2025 and 2024 Our net interest income was $81.0 million for the third quarter of 2025, an increase of $4.8 million, or 6.3%, compared to the same period in 2024. Interest income on loans increased by $0.7 million for the third quarter of 2025, compared to the same period in 2024. Interest income on investment securities decreased by $0.4 million for the third quarter of 2025, compared to the same period in 2024. Interest income on interest-bearing cash and other assets increased by $1.9 million for the third quarter of 2025, compared to the same period in 2024. Interest expense from total interest-bearing liabilities decreased by $2.6 million for the third quarter of 2025, compared to the same period in 2024. Our net interest margin was 4.07% for the third quarter of 2025, compared to 4.08% for the same period in 2024, a decrease of one basis point. We experienced a 28 basis point decrease in yield from earning assets while our total cost of interest-bearing liabilities decreased by 36 basis points, for the third quarter of 2025 as compared to the same period in 2024. Total earning assets increased $0.5 billion while total interest-bearing liabilities increased $0.3 billion, for the third quarter of 2025 as compared to the same period in 2024. Total average loans grew to $6.7 billion at September 30, 2025, an increase of $0.2 billion or 3.2%, compared to September 30, 2024, due to organic growth in our loan portfolio. Yield on loans decreased 19 basis points for the third quarter of 2025, compared to the same period in 2024, primarily due to the declining interest rate environment and its impact on variable rate loans in the portfolio. Interest-bearing cash and other assets increased $0.3 billion, or 61.5%, for the third quarter of 2025, compared to the same period in 2024. Yield on interest-bearing cash and other assets decreased 89 basis points for the third quarter of 2025, compared to the same period in 2024, primarily due to the declining interest rate environment. Average interest-bearing liabilities increased $0.3 billion, or 5.5%, for the third quarter of 2025, compared to the same period in 2024, primarily to support the growth in our loan portfolio. Average interest-bearing deposits increased $0.4 billion, or 8.5%, for the third quarter of 2025, compared to the same period in 2024, which included a decrease of $0.4 billion, or 22.4%, in average certificates of deposit balances. Cost of interest-bearing deposits decreased 33 basis points for the third quarter of 2025, compared to the same period in 2024, primarily due to the declining interest rate environment and 60 change in deposit product mix, particularly the decrease in certificates of deposit balances. Average FHLB borrowings decreased $0.1 billion, or 100.0%, for the third quarter of 2025, compared to the same period in 2024. Cost of FHLB borrowings decreased 558 basis points, for the third quarter of 2025, compared to the same period in 2024. Nine months ended September 30, 2025 and 2024 Our net interest income was $233.9 million for the nine months ended September 30, 2025, an increase of $14.1 million, or 6.4%, compared to the same period in 2024. Interest income on loans was unchanged for the nine months ended September 30, 2025, compared to the same period in 2024. Interest income on investment securities decreased by $0.8 million for the nine months ended September 30, 2025, compared to the same period in 2024. Interest income on interest-bearing cash and other assets increased by $5.8 million for the nine months ended September 30, 2025, compared to the same period in 2024. Interest expense from total interest-bearing liabilities decreased by $9.1 million for the nine months ended September 30, 2025, compared to the same period in 2024. Our net interest margin was 4.07% for the nine months ended September 30, 2025, compared to 4.04% for the same period in 2024, an increase of three basis points. We experienced a 25 basis point decrease in yield from earning assets and our total cost of interest-bearing liabilities decreased by 36 basis points for the nine months ended September 30, 2025, compared to the same period in 2024. Total earning assets increased $0.4 billion while total interest-bearing liabilities increased $0.2 billion, for the nine months ended September 30, 2025, compared to the same period in 2024. Total average loans grew to $6.6 billion at September 30, 2025, an increase of $0.2 billion, compared to September 30, 2024, primarily due to organic growth in our loan portfolio. Yield on loans decreased 18 basis points for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to the declining interest rate environment and its impact on variable rate loans in the portfolio. Interest-bearing cash and other assets increased $0.3 billion, or 75.9%, for the nine months ended September 30, 2025, compared to the same period in 2024. Yield on interest-bearing cash and other assets decreased 98 basis points for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to the declining interest rate environment. Average interest-bearing liabilities increased $0.2 billion, or 4.7%, for the nine months ended September 30, 2025, compared to the same period in 2024. Average interest-bearing deposits increased $0.4 billion, or 7.4%, for the nine months ended September 30, 2025, compared to the same period in 2024. Cost of interest-bearing deposits decreased 32 basis points for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to the declining interest rate environment and change in deposit product mix, particularly the decrease in certificates of deposit balances. Average FHLB borrowings decreased $0.1 billion, or 91.7%, for the nine months ended September 30, 2025, compared to the same period in 2024. Cost of FHLB borrowings decreased 101 basis points, for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to the declining interest rate environment. 61 The following tables set forth information related to our average balance sheet, average yields on assets, and average costs of liabilities for the periods presented. We derived these yields by dividing income or expense by the average balance of the corresponding assets or liabilities. We derived average balances from the daily balances throughout the periods indicated. As of and for the three months ended September 30,: 2025 2024 (In thousands) Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate Interest Earning Assets Loans 1 6,667,158 109,092 6.49 % 6,460,484 108,441 6.68 % Investment securities 505,999 4,376 3.43 % 527,241 4,769 3.60 % Interest-bearing cash and other assets 714,885 7,660 4.25 % 442,632 5,722 5.14 % Total earning assets 7,888,042 121,128 6.09 % 7,430,357 118,932 6.37 % Other assets 540,079 534,740 Total assets $ 8,428,121 $ 7,965,097 Interest-bearing liabilities Demand and NOW deposits $ 796,192 $ 6,611 3.29 % $ 657,537 $ 6,167 3.73 % Savings deposits 391,444 578 0.59 % 411,526 739 0.71 % Money market deposits 2,852,860 18,527 2.58 % 2,140,552 12,053 2.24 % Certificates of deposits 1,397,371 12,809 3.64 % 1,800,502 20,626 4.56 % Total deposits 5,437,867 38,525 2.81 % 5,010,117 39,585 3.14 % Repurchase agreements 8,055 37 1.82 % 13,528 44 1.29 % Total deposits and repurchase agreements 5,445,922 38,562 2.81 % 5,023,645 39,629 3.14 % FHLB borrowings — — — % 135,641 1,901 5.58 % Other long-term borrowings 76,117 1,613 8.41 % 75,654 1,244 6.54 % Total interest-bearing liabilities 5,522,039 40,175 2.89 % 5,234,940 42,774 3.25 % Noninterest-bearing deposits 1,642,346 1,568,685 Other liabilities 145,730 141,206 Stockholders' equity 1,118,006 1,020,266 Total liabilities and stockholders' equity $ 8,428,121 $ 7,965,097 Net interest income $ 80,953 $ 76,158 Net interest spread 3.20 % 3.12 % Net interest margin 4.07 % 4.08 % Net interest margin - FTE basis (non-GAAP) 2 4.12 % 4.13 % 1 Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale. 2 See section entitled “ Non-GAAP Financial Measures and Reconciliations ” for information regarding non-GAAP financial measures and a reconciliation to the most comparable GAAP equivalent. 62 As of and for the nine months ended September 30,: 2025 2024 (In thousands) Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate Interest Earning Assets Loans 1 6,570,356 315,889 6.43 % 6,386,620 315,893 6.61 % Investment securities 506,068 13,179 3.48 % 532,562 14,028 3.52 % Interest-bearing cash and other assets 604,936 19,428 4.29 % 343,911 13,580 5.27 % Total earning assets 7,681,360 348,496 6.07 % 7,263,093 343,501 6.32 % Other assets 542,038 543,916 Total assets $ 8,223,398 $ 7,807,009 Interest-bearing liabilities Demand and NOW deposits $ 770,395 $ 18,755 3.25 % $ 609,632 $ 16,924 3.71 % Savings deposits 397,745 1,723 0.58 % 415,687 2,179 0.70 % Money market deposits 2,652,819 47,797 2.41 % 2,098,927 32,497 2.07 % Certificates of deposits 1,482,529 41,829 3.77 % 1,812,839 62,859 4.63 % Total deposits 5,303,488 110,104 2.78 % 4,937,085 114,459 3.10 % Repurchase agreements 8,892 110 1.66 % 17,099 148 1.16 % Total deposits and repurchase agreements 5,312,380 110,214 2.77 % 4,954,184 114,607 3.09 % FHLB borrowings 10,491 361 4.61 % 125,799 5,297 5.62 % Other long-term borrowings 76,017 3,991 7.02 % 75,522 3,734 6.61 % Total interest-bearing liabilities 5,398,888 114,566 2.84 % 5,155,505 123,638 3.20 % Noninterest-bearing deposits 1,587,670 1,529,793 Other liabilities 148,675 136,491 Stockholders’ equity 1,088,165 985,220 Total liabilities and stockholders’ equity $ 8,223,398 $ 7,807,009 Net interest income $ 233,930 $ 219,863 Net interest spread 3.23 % 3.12 % Net interest margin 4.07 % 4.04 % Net interest margin - FTE basis (non-GAAP) 2 4.13 % 4.11 % 1 Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale. 2 See section entitled “ Non-GAAP Financial Measures and Reconciliations ” for information regarding non-GAAP financial measures and a reconciliation to the most comparable GAAP equivalent. 63 Rate-Volume Analysis The tables below present the effect of volume and rate changes on interest income and expense. Changes due to volume are changes in the average balance multiplied by the previous period’s average rate. Changes due to rate are changes in the average rate multiplied by the average balance from the prior period. The net changes attributable to the combined impact of both rate and volume have been allocated proportionately to the changes due to volume and the changes due to rate. For the three months ended September 30, 2025 Versus 2024 Increase (Decrease) Due to: (In thousands) Rate Volume Total Interest Earning Assets Loans 1 $ (2,934) $ 3,586 $ 652 Investment securities (211) (182) (393) Interest-bearing cash (1,127) 3,064 1,937 Total earning assets (4,272) 6,468 2,196 Interest-bearing liabilities Demand and NOW deposits (774) 1,217 443 Savings deposits (127) (34) (161) Money market deposits 2,013 4,461 6,474 Certificates of deposits (3,708) (4,109) (7,817) Total deposits (2,596) 1,535 (1,061) Repurchase agreements 14 (21) (7) Total deposits and repurchase agreements (2,582) 1,514 (1,068) FHLB borrowings (951) (950) (1,901) Other long-term borrowings 362 8 370 Total interest-bearing liabilities (3,171) 572 (2,599) Net interest income $ (1,101) $ 5,896 $ 4,795 1 Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale. For the nine months ended September 30, 2025 Versus 2024 Increase (Decrease) Due to: (In thousands) Rate Volume Total Interest Earning Assets Loans 1 $ (8,807) $ 8,803 $ (4) Investment securities (147) (702) (849) Interest-bearing cash (2,901) 8,749 5,848 Total earning assets (11,855) 16,850 4,995 Interest-bearing liabilities Demand and NOW deposits (2,245) 4,076 1,831 Savings deposits (365) (91) (456) Money market deposits 5,881 9,419 15,300 Certificates of deposits (10,611) (10,419) (21,030) Total deposits (7,340) 2,985 (4,355) Repurchase agreements 49 (87) (38) Total deposits and repurchase agreements (7,291) 2,898 (4,393) FHLB borrowings (815) (4,121) (4,936) Other long-term borrowings 233 24 257 Total interest-bearing liabilities (7,873) (1,199) (9,072) Net interest income $ (3,982) $ 18,049 $ 14,067 1 Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale. 64 Provision for Credit Losses We established an allowance for credit losses through a provision for credit losses charged as an expense in our consolidated statements of income. The provision for credit losses is the amount of expense that, based on our judgment, is required to maintain the allowance for credit losses at an adequate level to absorb expected losses in the loan portfolio at the balance sheet date and that, in management’s judgment, is appropriate under GAAP. Our determination of the amount of the allowance for credit losses and corresponding provision for credit losses considers ongoing evaluations of the credit quality and level of credit risk inherent in our loan portfolio, levels of nonperforming loans and charge-offs, statistical trends and economic and other relevant factors. The allowance for credit losses is increased by the provision for credit losses and is decreased by charge-offs, net of recoveries on prior loan charge-offs. We recorded a provision for credit losses of $10.1 million for the third quarter of 2025, compared to $5.0 million for the same period in 2024. The provision for credit losses for the third quarter of 2025 was primarily due to deterioration in a specific commercial and industrial customer relationship, impacts from net changes in loan portfolio balances, and impacts from net portfolio downgrades. We recorded a provision for credit losses of $18.4 million for the nine months ended September 30, 2025, compared to $22.7 million for the same period in 2024. The provision for credit losses for the nine months ended September 30, 2025 was primarily due to deterioration in a couple of C&I customer relationships, impacts from net changes in loan portfolio balances, and impacts from net portfolio downgrades. Noninterest Income The following table presents noninterest income: For the three months ended For the nine months ended (In thousands) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Service charges on deposit accounts $ 2,162 $ 2,560 $ 6,205 $ 7,276 Treasury management service fees 4,402 3,748 12,929 10,847 Credit and debit card fees 2,671 2,738 7,985 8,447 Trust and investment advisory fees 1,536 1,395 4,430 4,351 Income from mortgage banking services, net 12,641 8,838 34,970 29,383 Other 2,921 2,796 8,616 7,853 Total noninterest income $ 26,333 $ 22,075 $ 75,135 $ 68,157 Three months ended September 30, 2025 and 2024 Our noninterest income increased $4.3 million to $26.3 million for the third quarter of 2025 from $22.1 million for the same period in 2024. Service charges on deposit accounts includes overdraft and non-sufficient funds charges, and other service fees on deposit accounts. Service charges on deposit accounts decreased $0.4 million for the third quarter of 2025, compared to the same period in 2024, primarily due to a decrease in non-sufficient funds and overdraft fees. Treasury management service fees include financial information management, accounts receivable management, accounts payable services, fraud mitigation services, and cash flow management. Treasury management service fees increased $0.7 million for the third quarter of 2025 compared to the same period in 2024, primarily due to an overall increase in our business customer base as well as an increase in products and services provided to our existing customer base. Credit and debit card fees represent interchange income from credit and debit card activity and referral fees earned from processing fees on card transactions by our business customers. Credit and debit card fees decreased $0.1 million for the third quarter of 2025 compared to the same period in 2024, as card transaction volumes decreased slightly. Trust and investment advisory fees represent fees we receive in connection with our investment advisory and custodial management services of investment accounts. Trust and investment advisory fees increased $0.1 million for the third quarter of 2025 compared to the same period in 2024, as assets under management increased slightly. 65 The components of income from mortgage banking services were as follows: For the three months ended September 30, (In thousands) 2025 2024 Net sale gains and fees from mortgage loan originations, including loans held-for-sale changes in fair value and hedging $ 6,392 $ 4,669 Mortgage servicing income 4,726 4,321 Net MSR capitalization and changes in fair value, net of derivative activity 1,523 (152) Income from mortgage banking services, net $ 12,641 $ 8,838 For the third quarter of 2025, income from mortgage banking services increased $3.8 million, compared to the same period in 2024. Total loan originations for sale were $371.5 million for the third quarter of 2025, an increase of $66.4 million from $305.2 million for the same period in 2024. The increase in loan originations sold and higher margins resulted in the increase in revenue related to net sale gains and fees from loan originations, including fair value changes in the held-for-sale portfolio and hedging activity. We retain servicing rights on the majority of mortgage loans that we sell, which drove the increase in servicing income of $0.4 million to $4.7 million for the third quarter of 2025, from $4.3 million for the same period in 2024. Net MSR capitalization and changes in fair value, net of derivative activity, increased $1.7 million in the third quarter of 2025, compared to the same period in 2024. The increase in revenue related to our MSRs was due to higher net MSR capitalization and a slight increase in the fair value of our MSRs, net of hedging. The following table shows the hypothetical effect on the fair value of our MSRs when applying certain unfavorable variations of key assumptions to these assets as of September 30, 2025. (In thousands) 10% 20% Discount rate $ (3,674) $ (6,680) Total prepayment speeds (3,472) (6,251) Cost of servicing each loan (1,399) (2,270) These hypothetical sensitivities should be evaluated with care. The effect on fair value of an adverse change in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. Other noninterest income increased $0.1 million for the third quarter of 2025 compared to the same period in 2024, primarily due to an increase in interest rate swap fair value and fee revenue, increase in the fair value of investments related to our deferred compensation plan, and increase in credit line fees, partially offset by a decrease in loan syndication and agency fees. Nine months ended September 30, 2025 and 2024 Our noninterest income increased $7.0 million to $75.1 million for the nine months ended September 30, 2025 from $68.2 million for the same period in 2024. Service charges on deposit accounts decreased $1.1 million for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to a decrease in non-sufficient funds and overdraft fees. Credit and debit card fees decreased $0.5 million for the nine months ended September 30, 2025 compared to the same period in 2024, as card transaction volumes decreased. Trust and investment advisory fees were largely unchanged for the nine months ended September 30, 2025 as compared to the same period in 2024. 66 The components of income from mortgage banking services were as follows: For the nine months ended September 30, (In thousands) 2025 2024 Net sale gains and fees from mortgage loan originations, including loans held-for-sale changes in fair value and hedging $ 17,556 $ 14,905 Mortgage servicing income 13,871 12,580 Net MSR capitalization and changes in fair value, net of derivative activity 3,543 1,898 Income from mortgage banking services, net $ 34,970 $ 29,383 For the nine months ended September 30, 2025, income from mortgage banking services increased $5.6 million, compared to the same period in 2024. Total loan originations for sale were $1.0 billion for the nine months ended September 30, 2025, an increase of $205.6 million from $797.6 million for the same period in 2024. The increase in loan originations sold, partially offset by slightly lower margins resulted in the increase in revenue related to net sale gains and fees from loan originations, including fair value changes in the held-for-sale portfolio and hedging activity. We retain servicing rights on the majority of mortgage loans that we sell, which drove the increase in servicing income of $1.3 million to $13.9 million for the nine months ended September 30, 2025, from $12.6 million for the same period in 2024. The increase in revenue related to our MSRs was due to higher net MSR capitalization and an increase in the fair value of our MSRs, net of hedging. Other noninterest income increased $0.8 million for the nine months ended September 30, 2025 compared to the same period in 2024, primarily due to an increase in interest rate swap and loan syndication revenue. Noninterest Expense The following table presents noninterest expense: For the three months ended September 30, For the nine months ended September 30, (In thousands) 2025 2024 2025 2024 Salary and employee benefits $ 44,822 $ 39,306 $ 128,304 $ 116,487 Occupancy and equipment 9,591 9,121 28,668 26,417 Amortization of intangible assets 578 651 1,784 2,118 Terminated merger-related expenses — 1,633 — 5,168 Other 13,910 13,953 40,977 40,177 Total noninterest expenses $ 68,901 $ 64,664 $ 199,733 $ 190,367 Three months ended September 30, 2025 and 2024 Our noninterest expenses increased $4.2 million to $68.9 million for the third quarter of 2025, from $64.7 million for the same period in 2024. Salary and employee benefits increased $5.5 million to $44.8 million for the third quarter of 2025, from $39.3 million for the same period in 2024, primarily due to an increase in headcount of commercial and industrial bankers and support personnel, higher levels of variable compensation associated with an increase in residential mortgage loan originations, and higher medical insurance costs. Occupancy and equipment increased $0.5 million to $9.6 million for the third quarter of 2025, from $9.1 million for the same period in 2024, primarily due to higher software subscriptions and license fees. Other noninterest expense was largely unchanged for the third quarter of 2025 as compared to the same period in 2024. 67 Nine months ended September 30, 2025 and 2024 Our noninterest expenses increased $9.4 million to $199.7 million for the nine months ended September 30, 2025, from $190.4 million for the same period in 2024. Salary and employee benefits increased $11.8 million to $128.3 million for the nine months ended September 30, 2025, from $116.5 million for the same period in 2024, primarily due to an increase in headcount of commercial and industrial bankers and support personnel, higher levels of variable compensation associated with an increase in residential mortgage loan originations, and higher medical insurance costs. Occupancy and equipment increased $2.3 million to $28.7 million for the nine months ended September 30, 2025, from $26.4 million for the same period in 2024, primarily due to higher software subscriptions and license fees. Other noninterest expense increased $0.8 million to $41.0 million for the nine months ended September 30, 2025, from $40.2 million for the same period in 2024, primarily due to higher data processing expenses. Income Taxes Three months ended September 30, 2025 and 2024 We recorded income tax expense for the third quarter of 2025 of $5.1 million, compared to income tax expense of $6.1 million for the same period in 2024. The decrease in income tax expense was due to an increase in tax benefit related to low income housing tax credit investments during the third quarter of 2025, compared to the same period in 2024. Our effective tax rate was 18.1% for the third quarter of 2025, compared to 21.5% for the same period in 2024. Nine months ended September 30, 2025 and 2024 We recorded income tax expense for the nine months ended September 30, 2025 of $17.8 million, compared to $15.7 million for the same period in 2024. The increase in income tax expense was primarily due to our increased income during the nine months ended September 30, 2025. Our effective tax rate was 19.6% for the nine months ended September 30, 2025, compared to 20.9% for the same period in 2024. Financial Condition Balance Sheet Our total assets were $8.5 billion and $8.1 billion, total liabilities were $7.4 billion and $7.1 billion, and total stockholders’ equity was $1.1 billion and $1.0 billion at September 30, 2025 and December 31, 2024, respectively. Investment Securities Our securities portfolio is used to make various term investments, maintain a source of liquidity and serve as collateral for certain types of deposits and borrowings. We manage our investment portfolio according to written investment policies approved by our board of directors. Investment in our securities portfolio may change over time based on our funding needs and interest rate risk management objectives. Our liquidity levels take into account anticipated future cash flows and other available sources of funds, and are maintained at levels that we believe are appropriate to provide the necessary flexibility to meet our anticipated funding requirements. Our investment securities portfolio consists of securities classified as available-for-sale and held-to-maturity. All available-for sale securities are carried at fair value and may be used for liquidity purposes should management consider it to be in our best interest. Our securities available-for-sale increased by $7.0 million to $476.1 million at September 30, 2025, compared to December 31, 2024. During the period ended September 30, 2025, the securities held-to-maturity decreased $1.0 million to $34.2 million. 68 The following table is a summary of our investment portfolio as of: September 30, 2025 December 31, 2024 (In thousands) Carrying Amount % of Portfolio Carrying Amount % of Portfolio Available-for-sale: U.S. treasury $ 33,051 6.9 % $ 31,730 6.8 % U.S. agency 537 0.1 % 656 0.2 % Obligations of states and political subdivisions 27,896 5.9 % 25,699 5.5 % Mortgage backed - residential 99,491 20.9 % 96,279 20.5 % Collateralized mortgage obligations 154,125 32.4 % 164,347 35.0 % Mortgage backed - commercial 144,779 30.4 % 134,827 28.7 % Other debt 16,235 3.4 % 15,538 3.3 % Total available-for-sale $ 476,114 100.0 % $ 469,076 100.0 % Held-to-maturity: Obligations of states and political subdivisions $ 25,845 75.5 % $ 25,713 73.0 % Mortgage backed - residential 5,762 16.8 % 6,373 18.0 % Collateralized mortgage obligations 2,640 7.7 % 3,156 9.0 % Total held-to-maturity $ 34,247 100.0 % $ 35,242 100.0 % The following table shows the weighted average yield to average life, which considers expected prepayments, of each category of investment securities as of September 30, 2025: (In thousands) One year or less One to five years Five to ten years After ten years Carrying Amount Average Yield Carrying Amount Average Yield Carrying Amount Average Yield Carrying Amount Average Yield Available-for-sale: U.S. treasury $ — — % $ 33,051 1.28 % $ — — % $ — — % U.S. agency 39 5.20 % — — % 498 5.58 % — — % Obligations of states and political subdivisions — — % — — % 23,712 3.22 % 4,184 2.39 % Mortgage backed - residential 996 2.49 % 26,575 2.29 % 28,134 1.95 % 43,786 3.55 % Collateralized mortgage obligations 160 2.77 % 53,968 3.56 % 96,728 2.98 % 3,269 4.42 % Mortgage backed - commercial 959 3.85 % 75,410 3.56 % 68,410 2.81 % — — % Other debt — — % 7,983 3.84 % 6,372 1.85 % 1,880 3.75 % Total available-for-sale $ 2,154 3.17 % $ 196,987 3.02 % $ 223,854 2.80 % $ 53,119 3.52 % Held-to-maturity: Obligations of states and political subdivisions $ 987 2.06 % $ — — % $ — — % $ 24,858 3.52 % Mortgage backed - residential 98 3.63 % 3,190 2.52 % 18 5.95 % 2,456 3.24 % Collateralized mortgage obligations 68 2.01 % 1,548 2.82 % 1,024 3.01 % — — % Total held-to-maturity $ 1,153 2.19 % $ 4,738 2.62 % $ 1,042 3.06 % $ 27,314 3.50 % 69 Loans Our loan portfolio represents a broad range of borrowers primarily in our markets in Texas, Kansas, Colorado, New Mexico, Arizona, California and Washington primarily comprised of commercial and industrial, commercial real estate, residential real estate, and public finance loans. We have a diversified portfolio across a variety of industries, and the portfolio is generally centered in the states in which we have branch offices. Our lending focus continues to be on operating companies, including commercial and industrial loans and lines-of-credit, as well as owner occupied commercial real estate loans. Total loans held-for-investment, net of deferred fees, costs, premiums and discounts were $6.7 billion at September 30, 2025 and $6.4 billion at December 31, 2024. The following table sets forth the composition of our loan portfolio, as of: September 30, 2025 December 31, 2024 (In thousands) Amount % of total loans Amount % of total loans Commercial and industrial 1 $ 2,945,697 44.1 % $ 2,627,591 41.2 % Commercial real estate: Non-owner occupied 725,425 10.9 % 752,628 11.8 % Owner occupied 668,172 10.0 % 700,867 11.0 % Construction and land 343,803 5.1 % 362,677 5.7 % Multifamily 183,504 2.7 % 94,355 1.5 % Total commercial real estate 1,920,904 28.7 % 1,910,527 30.0 % Residential real estate 2 1,209,742 18.1 % 1,180,610 18.5 % Public finance 516,247 7.7 % 554,784 8.7 % Consumer 38,931 0.6 % 41,144 0.6 % Other 50,108 0.8 % 61,701 1.0 % Total loans $ 6,681,629 100.0 % $ 6,376,357 100.0 % 1 Loans to nondepository financial institutions are included within commercial and industrial. Prior period amounts have been reclassified to conform to the current presentation. 2 Includes 1-4 family residential construction. Commercial and industrial loans include loans to commercial customers for use in normal business operations to finance working capital needs, equipment and inventory purchases, other expansion projects and loans to nondepository financial institutions. These loans are made primarily in our market areas and are underwritten on the basis of the borrower’s ability to service the debt from revenue, and are generally extended under our normal credit standards, controls and monitoring systems. Commercial real estate (“CRE”) loans include owner occupied and non-owner occupied commercial real estate mortgage loans to operating commercial and agricultural businesses, and include both loans for long-term financing of land and buildings and loans made for the initial development or construction of a commercial real estate project. Non-owner occupied CRE loans were 60.8% of the Company’s risk-based capital, or 10.9% of total loans as of September 30, 2025. Non-owner occupied CRE loans associated with office space were $45.1 million, or 0.7% of total loans as of September 30, 2025. Owner occupied CRE loans associated with office space were $160.8 million, or 2.4% of total loans as of September 30, 2025. Residential real estate loans represent loans to consumers collateralized by a mortgage on a residence and include purchase money, refinancing, secondary mortgages, and home equity loans and lines of credit. Public finance loans include loans to our charter school and municipal based customers. Consumer loans include direct consumer installment loans, credit card accounts, overdrafts and other revolving loans. Other loans consist of lease financing receivables and loans for agricultural production. 70 Maturities and Sensitivity of Loans to Changes in Interest Rates The information in the following tables is based on the contractual maturities of individual loans, including loans that may be subject to renewal at their contractual maturity. Renewal of these loans is subject to review and credit approval, as well as modification of terms upon maturity. Actual repayments of loans may differ from the maturities reflected below because borrowers have the right to prepay obligations with or without prepayment penalties. The following tables summarize the loan maturity distribution by type and related interest rate characteristics as of September 30, 2025: (In thousands) One year or less After one through five years After five through 15 years After 15 years Total Commercial and industrial $ 599,880 $ 2,058,017 $ 266,949 $ 20,851 $ 2,945,697 Commercial real estate 361,050 1,239,784 270,876 49,194 1,920,904 Residential real estate 98,484 31,984 50,542 1,028,732 1,209,742 Public finance 22,167 192,094 235,489 66,497 516,247 Consumer 14,593 11,895 12,223 220 38,931 Other 1,538 27,057 17,229 4,284 50,108 Total loans $ 1,097,712 $ 3,560,831 $ 853,308 $ 1,169,778 $ 6,681,629 (In thousands) One year or less After one through five years After five through 15 years After 15 years Total Total Loans Maturing After 1 Year Loans maturing with: Fixed interest rates Commercial and industrial $ 102,292 $ 212,911 $ 144,646 $ 514 $ 460,363 $ 358,071 Commercial real estate 146,036 551,223 47,009 4,528 748,796 602,760 Residential real estate 69,607 24,758 34,785 298,210 427,360 357,753 Public finance 22,167 192,094 232,484 66,497 513,242 491,075 Consumer 3,118 10,930 11,857 — 25,905 22,787 Other 701 17,050 15,343 4,284 37,378 36,677 Total fixed interest rate loans $ 343,921 $ 1,008,966 $ 486,124 $ 374,033 $ 2,213,044 $ 1,869,123 Floating or adjustable interest rates Commercial and industrial $ 497,588 $ 1,845,106 $ 122,303 $ 20,337 $ 2,485,334 $ 1,987,746 Commercial real estate 215,014 688,561 223,867 44,666 1,172,108 957,094 Residential real estate 28,877 7,226 15,757 730,522 782,382 753,505 Public finance — — 3,005 — 3,005 3,005 Consumer 11,475 965 366 220 13,026 1,551 Other 837 10,007 1,886 — 12,730 11,893 Total floating or adjustable interest rate loans $ 753,791 $ 2,551,865 $ 367,184 $ 795,745 $ 4,468,585 $ 3,714,794 Total loans $ 1,097,712 $ 3,560,831 $ 853,308 $ 1,169,778 $ 6,681,629 $ 5,583,917 Allowance for Credit Losses We maintain the allowance for credit losses at a level we believe is sufficient to absorb expected losses in our loan portfolio given the conditions at the time and our estimates of future economic conditions. Events that are not within our control, such as changes in economic factors, could change subsequent to the reporting date and could cause increases or decreases to the allowance. The amount of the allowance is affected by loan charge-offs, which decrease the allowance; recoveries on loans previously charged off, which increase the allowance; and the provision for credit losses charged to earnings, which increases the allowance. In determining the provision for credit losses, management monitors fluctuations in the allowance resulting from actual charge-offs and recoveries and reviews the size and composition of the loan portfolio in light of current and anticipated economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available or as events change. 71 The following table presents, by loan type, the changes in the allowance for credit losses: For the three months ended September 30, For the nine months ended September 30, (In thousands) 2025 2024 2025 2024 Balance, beginning of period $ 82,993 $ 78,960 $ 88,221 $ 80,398 Loan charge-offs: Commercial and industrial (9,025) (1,116) (20,757) (20,743) Commercial real estate — (474) — (474) Residential real estate (66) — (66) (38) Public finance (242) — (1,922) — Consumer (97) (52) (351) (353) Other — — (743) — Total loan charge-offs (9,430) (1,642) (23,839) (21,608) Recoveries of loans previously charged-off: Commercial and industrial 260 206 381 667 Commercial real estate 11 4 11 9 Residential real estate 51 — 74 8 Public finance — — — — Consumer 55 31 142 85 Other — — — — Total loan recoveries 377 241 608 769 Net (charge-offs) recoveries (9,053) (1,401) (23,231) (20,839) Provision for credit losses 1 10,100 5,600 19,050 23,600 Balance, end of period $ 84,040 $ 83,159 $ 84,040 $ 83,159 Allowance for credit losses to total loans 1.26 % 1.29 % 1.26 % 1.29 % Ratio of net charge-offs to average loans outstanding 0.55 % 0.09 % 0.48 % 0.44 % 1 For the three months ended September 30, 2025 and 2024 we recorded a (benefit) provision for credit losses on unfunded commitments of $— and $(600), respectively. For the nine months ended September 30, 2025 and 2024 we recorded a benefit for credit losses on unfunded commitments of $650 and $900, respectively. For further information, see Note 3 - Loans . The following table presents net charge-offs (recoveries) to average loans outstanding by loan category: For the three months ended September 30, For the nine months ended September 30, (In thousands) 2025 2024 2025 2024 Commercial and industrial 1.09 % 1.12 % 0.87 % 0.91 % Commercial real estate — % 0.11 % — % 0.04 % Residential real estate 0.01 % — % — % — % Public finance 0.18 % — % 0.48 % — % Consumer 0.41 % 0.20 % 0.71 % 0.89 % Other — % — % 1.98 % — % 72 Allocation of Allowance for Credit Losses The following table presents the allocation of the allowance for credit losses by category and the percentage of loans by category to total loans as of: September 30, 2025 December 31, 2024 (In thousands) Allowance Amount % of loans in each category to total loans Allowance Amount % of loans in each category to total loans Commercial and industrial $ 38,446 44.1 % $ 38,489 41.2 % Commercial real estate 26,645 28.7 % 28,323 30.0 % Residential real estate 14,790 18.1 % 15,450 18.5 % Public finance 2,882 7.7 % 4,750 8.7 % Consumer 663 0.6 % 750 0.6 % Other 614 0.8 % 459 1.0 % Total $ 84,040 100.0 % $ 88,221 100.0 % Nonperforming Assets We have established policies and procedures to guide us in originating, monitoring and maintaining the credit quality of our loan portfolio. These policies and procedures are expected to be followed by our bankers and underwriters and exceptions to these policies require elevated levels of approval and are reported to our board of directors. Nonperforming assets include all loans categorized as nonaccrual, accrual loans greater than 90 days past due, and other real estate owned and other repossessed assets. The accrual of interest on loans is discontinued, or the loan is placed on nonaccrual, when the full collection of principal and interest is in doubt. We do not generally accrue interest on loans that are 90 days or more past due. When a loan is placed on nonaccrual, previously accrued but unpaid interest is reversed and charged against interest income and future accruals of interest are discontinued. Payments by borrowers for loans on nonaccrual are applied to loan principal. Loans are returned to accrual status when, in our judgment, the borrower’s ability to satisfy principal and interest obligations under the loan agreement has improved sufficiently to reasonably assure recovery of principal and the borrower has demonstrated a sustained period of repayment performance. In general, we require a minimum of six consecutive months of timely payments in accordance with the contractual terms before returning a loan to accrual status. The following table sets forth our nonperforming assets as of: (In thousands) September 30, 2025 December 31, 2024 Nonaccrual loans: Commercial and industrial $ 44,235 $ 28,314 Commercial real estate 7,976 9,302 Residential real estate 17,339 20,220 Public finance — 7,226 Consumer 78 64 Other — 2,391 Total nonaccrual loans 69,628 67,517 Accrual loans greater than 90 days past due 13 1,533 Total nonperforming loans 69,641 69,050 Other real estate owned and foreclosed assets, net 13,418 5,138 Total nonperforming assets $ 83,059 $ 74,188 Nonaccrual loans to total loans 1.04 % 1.06 % Nonperforming loans to total loans 1.04 % 1.08 % Nonperforming assets to total assets 0.98 % 0.92 % Allowance for credit losses to nonaccrual loans 120.70 % 130.66 % 73 Deposits Deposits represent our primary source of funds. Total deposits increased by $0.4 billion to $7.1 billion at September 30, 2025, compared to December 31, 2024. We are focused on growing our core deposits through relationship-based banking with our business and consumer clients. The following table presents our deposits by customer type as of: ($ in thousands) September 30, 2025 December 31, 2024 Consumer Noninterest bearing deposit accounts $ 412,568 $ 410,303 Interest-bearing deposit accounts: Demand and NOW deposits 129,148 61,987 Savings deposits 314,953 326,916 Money market deposits 1,885,610 1,516,577 Certificates of deposits 869,077 1,069,704 Total interest-bearing deposit accounts 3,198,788 2,975,184 Total consumer deposits $ 3,611,356 $ 3,385,487 Business Noninterest bearing deposit accounts $ 1,261,929 $ 1,130,855 Interest-bearing deposit accounts: Demand and NOW deposits 725,028 669,417 Savings deposits 71,281 75,422 Money market deposits 951,410 915,208 Certificates of deposits 57,225 51,131 Total interest-bearing deposit accounts 1,804,944 1,711,178 Total business deposits $ 3,066,873 $ 2,842,033 Wholesale deposits 1 $ 427,186 $ 444,740 Total deposits $ 7,105,415 $ 6,672,260 1 Wholesale deposits primarily consist of brokered deposits included in our consolidated balance sheets within certificate of deposits. The following table sets forth the average balance amounts and the average rates paid on deposits held by us: For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 (Dollars in thousands) Average Balance Average Rate Paid Average Balance Average Rate Paid Average Balance Average Rate Paid Average Balance Average Rate Paid Noninterest-bearing demand deposit accounts $ 1,642,346 — % $ 1,568,685 — % $ 1,587,670 — % $ 1,529,793 — % Interest-bearing deposit accounts: Interest-bearing demand accounts 755,880 3.40 % 615,707 3.88 % 726,890 3.38 % 568,042 3.88 % Savings accounts and money market accounts 3,244,304 2.34 % 2,552,078 1.99 % 3,050,564 2.17 % 2,514,614 1.84 % NOW accounts 40,312 1.21 % 41,830 1.50 % 43,505 1.05 % 41,590 1.40 % Certificate of deposit accounts 1,397,371 3.64 % 1,800,502 4.56 % 1,482,529 3.77 % 1,812,839 4.63 % Total interest-bearing deposit accounts 5,437,867 2.81 % 5,010,117 3.14 % 5,303,488 2.78 % 4,937,085 3.10 % Total deposits $ 7,080,213 2.16 % $ 6,578,802 2.39 % $ 6,891,158 2.14 % $ 6,466,878 2.36 % As of September 30, 2025 and December 31, 2024, approximately $2.6 billion or 36.2% and $2.3 billion or 34.8%, respectively, of our deposit portfolio was uninsured. As of September 30, 2025 and December 31, 2024, approximately $2.0 billion or 28.3% and $1.7 billion or 25.2%, respectively, of our deposit portfolio was uninsured and uncollateralized. 74 The uninsured, and uninsured and uncollateralized amounts are estimates based on the methodologies and assumptions used for the Bank's regulatory reporting requirements. We actively participate in the IntraFi Cash Service (“ICS”) / Certificate of Deposit Account Registry Service (“CDARS”) program which provides FDIC insurance coverage for clients that maintain larger deposit balances. Deposits in the ICS / CDARS program totaled $0.9 billion, or 12.2% of all deposits as of September 30, 2025, and $0.7 billion, or 11.1% of all deposits as of December 31, 2024. The following table sets forth the portion of the Bank's time deposits, by account, that are in excess of the FDIC insurance limit, by remaining time until maturity, as of September 30,: (In thousands) 2025 Three months or less $ 94,274 Over three months through six months 88,851 Over six through twelve months 21,878 Over twelve months through three years 3,191 Over three years 659 Total $ 208,853 Liquidity Liquidity refers to our ability to maintain cash flow that is adequate to fund operations, support asset growth, maintain reserve requirements and meet present and future obligations of deposit withdrawals, lending obligations and other contractual obligations. FirstSun (Parent Company) FirstSun has routine funding requirements consisting primarily of operating expenses, debt service, and funds used for acquisitions. FirstSun can obtain funding to meet its obligations from dividends collected from its subsidiaries, primarily the Bank, and through the issuance of varying forms of debt. At September 30, 2025, FirstSun had available cash and cash equivalents of $102.1 million and debt outstanding of $78.9 million. On October 1, 2025, FirstSun redeemed $40.0 million of outstanding subordinated notes using available cash and cash equivalents. Management believes FirstSun has the ability to generate and obtain adequate amounts of liquidity to meet its requirements in the short-term and the long-term. Federal banking laws regulate the amount of dividends that may be paid by banking subsidiaries without prior approval. The Bank may declare dividends without prior regulatory approval that do not exceed the total of retained net income for the current year combined with its retained net income for the preceding two years, subject to maintenance of minimum capital requirements. Prior regulatory approval to pay dividends was not required in 2024 and is not currently required. At September 30, 2025, the Bank could pay dividends to FirstSun of approximately $247.6 million without prior regulatory approval. During the three and nine months ended September 30, 2025, the Bank did not pay dividends to FirstSun. Bank As more fully discussed in our 2024 Annual Report , we regularly monitor our liquidity position and make adjustments to the balance between sources and uses of funds as we deem appropriate. At September 30, 2025, our liquid assets, which consist of cash and amounts due from banks and interest-bearing deposits in other financial institutions, amounted to $650.5 million, or 7.7% of total assets, compared to $607.6 million, or 7.5% of total assets, at December 31, 2024. The increase in our liquid assets was primarily due to an increase in cash held at the Federal Reserve. At September 30, 2025, approximately 73% of the investment securities portfolio was pledged as collateral to secure public deposits and repurchase agreements. Our unencumbered available-for-sale securities at September 30, 2025 were $128.3 million, or 1.5% of total assets, compared to $34.5 million, or 0.4% of total assets, at December 31, 2024. 75 The liability portion of our balance sheet serves as a primary source of liquidity. We plan to meet our future cash needs primarily through the generation of deposits. Customer deposits have historically provided a sizable source of relatively stable and low-cost funds. At September 30, 2025, loans as a percentage of customer deposits were 94.0%, compared with 95.6% at December 31, 2024. For additional information related to our deposits, see Deposits section above. We are also a member of the FHLB and FRB, from which we can borrow for leverage or liquidity purposes. The FHLB and FRB requires that securities and qualifying loans be pledged to secure any advances. Liquidity sources available to us for immediate funding at September 30, 2025, are as follows: (In thousands) FHLB borrowings available $ 1,372,059 Fed Funds lines 2,216,726 Unused lines with other financial institutions 160,000 Immediate funding availability $ 3,748,785 Management believes the Bank has the ability to generate and obtain adequate amounts of liquidity to meet its requirements in the short-term and the long-term. Capital Stockholders’ equity at September 30, 2025 was $1.1 billion, compared to $1.0 billion at December 31, 2024, an increase of $86.1 million, or 8.3%. We did not pay a dividend to our common shareholders for the three and nine months ended September 30, 2025 and 2024. Capital Adequacy We are subject to various regulatory capital requirements administered by the federal banking agencies. Management routinely analyzes our capital to seek to ensure an optimized capital structure. For further information on capital adequacy see Note 11 - Regulatory Capital Matters to the consolidated financial statements. Material Contractual Obligations, Commitments, and Contingent Liabilities We have entered into contractual obligations in the normal course of business that involve elements of credit risk, interest rate risk and liquidity risk. The following table summarizes our material contractual obligations as of September 30, 2025. Further discussion of each obligation or commitment is included in the referenced note to the consolidated financial statements. (In thousands) Note Reference Total Less than 1 Year 1 - 3 Years 3 - 5 Years More than 5 Years Deposits: Deposits without a stated maturity 6 $ 5,676,150 $ 5,676,150 $ — $ — $ — Certificates of deposit 6 1,429,265 1,371,430 49,379 6,573 1,883 Securities sold under agreements to repurchase 9,824 9,824 — — — Short-term debt: FHLB term advances 7 — — — — — Long-term debt: Subordinated debt 7 78,919 40,000 — — 38,919 Operating leases 15 27,496 2,525 11,581 8,146 5,244 We are party to various derivative contracts as a means to manage the balance sheet and our related exposure to changes in interest rates, to manage our residential real estate loan origination and sale activity, and to provide derivative contracts to our clients. Since the derivative liabilities recorded on the balance sheet change frequently and do not represent the amounts that may ultimately be paid under these contracts, these liabilities are not included in the table of contractual obligations presented above. Further discussion of derivative instruments is included in Note 5 - Derivative Financial Instruments to the consolidated financial statements. In the normal course of business, various legal actions and proceedings are pending against us and our affiliates which are incidental to the business in which they are engaged. Further discussion of contingent liabilities is included in Note 14 - Commitments and Contingencies to the consolidated financial statements. 76 We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit, commercial letters of credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated statements of financial condition. The contractual or notional amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments. Further discussion of contingent liabilities is included in Note 14 - Commitments and Contingencies to the consolidated financial statements. 77