FIRSTSUN CAPITAL BANCORP 10-K

Item 8. Financial Statements Index to Consolidated Financial Statements Page Report of Independent Registered Public Accounting Firm (PCAOB ID: 173 ) 83 Consolidated Balance Sheets 84 Consolidated Statements of Income and Comprehensive Income 85 Consolidated Statements of Stockholders' Equity 86 Consolidated Statements of Cash Flows 87 Notes to Consolidated Financial Statements 89 Note 1 - Basis of Presentation, Description of Business and Summary of Significant Accounting Policies 89 Note 2 - Securities 101 Note 3 - Loans 104 Note 4 - Mortgage Servicing Rights 114 Note 5 - Premises and Equipment 115 Note 6 - Core Deposits and Other Intangible Assets 116 Note 7 - Derivative Financial Instruments 117 Note 8 - Prepaid Expenses and Other Assets 119 Note 9 - Deposits 119 Note 10 - Securities Sold Under Agreements to Repurchase 120 Note 11 - Debt 120 Note 12 - Accrued Expenses and Other Liabilities 123 Note 13 - Earnings Per Share 123 Note 14 - Stockholders' Equity 124 Note 15 - Income Taxes 127 Note 16 - Other Noninterest Expenses 130 Note 17 - Regulatory Capital Matters 130 Note 18 - Transactions with Related Parties 132 Note 19 - Fair Value Measurements 132 Note 20 - Parent Company Only Condensed Financial Information 136 Note 21 - Segment Information 138 Note 22 - Commitments and Contingencies 142 Note 23 - Leases 144 Note 24 - Revenue from Contracts with Customers 145 82 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Stockholders and the Board of Directors of FirstSun Capital Bancorp Denver, Colorado Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of FirstSun Capital Bancorp (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of income and comprehensive income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. /s/ Crowe LLP Crowe LLP We have served as the Company's auditor since 2014. Dallas, Texas March 6, 2026 83 Table of Contents FIRSTSUN CAPITAL BANCORP Consolidated Balance Sheets As of December 31, (In thousands, except par and share amounts) 2025 2024 Assets Cash and cash equivalents $ 652,592 $ 615,917 Securities available-for-sale, at fair value 468,970 469,076 Securities held-to-maturity, fair value of $ 29,446 and $ 29,563 , respectively 33,839 35,242 Loans held-for-sale, at fair value 100,539 61,825 Loans, net of allowance for credit losses of $ 85,016 and $ 88,221 , respectively 6,588,164 6,288,136 Mortgage servicing rights, at fair value 86,651 84,258 Premises and equipment, net 81,523 82,483 Other real estate owned and foreclosed assets, net 11,514 5,138 Bank-owned life insurance 83,286 81,115 Restricted equity securities 24,775 28,917 Goodwill 93,483 93,483 Core deposits and other intangible assets, net 4,983 7,434 Accrued interest receivable 32,255 32,102 Deferred tax assets, net 34,873 41,195 Prepaid expenses and other assets 187,715 171,066 Total assets $ 8,485,162 $ 8,097,387 Liabilities and Stockholders’ Equity Liabilities: Deposits: Noninterest-bearing accounts $ 1,651,373 $ 1,541,158 Interest-bearing accounts 5,455,983 5,131,102 Total deposits 7,107,356 6,672,260 Securities sold under agreements to repurchase 11,160 14,699 Federal Home Loan Bank advances — 135,000 Subordinated debt, net 36,680 75,841 Accrued interest payable 6,680 8,705 Accrued expenses and other liabilities 169,930 149,516 Total liabilities 7,331,806 7,056,021 Commitments and contingencies ( Note 22 ) Stockholders’ equity: Preferred stock, $ 0.0001 par value, 10,000,000 shares authorized, none issued or outstanding, respectively — — Common stock, $ 0.0001 par value; 50,000,000 shares authorized; 27,887,337 and 27,709,679 shares issued; 27,887,337 and 27,709,679 shares outstanding, respectively 3 3 Additional paid-in capital 549,617 547,325 Retained earnings 631,086 533,150 Accumulated other comprehensive loss, net ( 27,350 ) ( 39,112 ) Total stockholders’ equity 1,153,356 1,041,366 Total liabilities and stockholders’ equity $ 8,485,162 $ 8,097,387 The accompanying notes are an integral part of these consolidated financial statements. 84 Table of Contents FIRSTSUN CAPITAL BANCORP Consolidated Statements of Income and Comprehensive Income For the years ended December 31, (In thousands, except per share amounts) 2025 2024 2023 Interest income: Interest and fee income on loans: Taxable $ 407,520 $ 404,040 $ 366,523 Tax exempt 17,939 17,919 19,114 Interest and dividend income on securities: Taxable 17,430 18,454 17,014 Tax exempt 32 14 18 Other interest income 24,848 19,113 11,015 Total interest income 467,769 459,540 413,684 Interest expense: Interest expense on deposits 145,338 150,651 101,355 Interest expense on securities sold under agreements to repurchase 150 188 225 Interest expense on other borrowed funds 4,890 11,791 18,673 Total interest expense 150,378 162,630 120,253 Net interest income 317,391 296,910 293,431 Provision for credit losses 24,600 27,550 18,247 Net interest income after credit loss expense 292,791 269,360 275,184 Noninterest income: Deposit account service fees 8,321 9,495 9,940 Treasury management service fees 17,473 14,829 11,724 Credit and debit card fees 10,729 11,153 11,681 Trust and investment advisory fees 5,945 5,787 5,693 Mortgage banking services, net 47,072 39,014 31,384 Other noninterest income 12,339 9,514 8,670 Total noninterest income 101,879 89,792 79,092 Noninterest expense: Salary and employee benefits 171,824 154,985 133,231 Occupancy, equipment and software 38,244 36,282 33,426 Amortization and impairment of intangible assets 2,412 3,549 4,822 Merger related expenses 2,743 13,178 — Other noninterest expenses 56,551 56,046 51,314 Total noninterest expense 271,774 264,040 222,793 Income before income taxes 122,896 95,112 131,483 Provision for income taxes 24,960 19,484 27,950 Net income $ 97,936 $ 75,628 $ 103,533 Other comprehensive income: Net unrealized gain on securities available-for-sale 11,762 3,895 976 Other comprehensive income 11,762 3,895 976 Comprehensive income $ 109,698 $ 79,523 $ 104,509 Earnings per share: Net income available to common stockholders $ 97,936 $ 75,628 $ 103,533 Basic $ 3.52 $ 2.76 $ 4.15 Diluted $ 3.47 $ 2.69 $ 4.08 The accompanying notes are an integral part of these consolidated financial statements. 85 Table of Contents FIRSTSUN CAPITAL BANCORP Consolidated Statements of Stockholders’ Equity For the years ended December 31, (in thousands, except share amounts) Issued shares of common stock Common stock Additional paid-in capital Treasury stock Retained earnings Accumulated other comprehensive income (loss) Total stockholders’ equity Balance as of January 1, 2023 24,920,984 $ 2 $ 460,720 $ — $ 357,797 $ ( 43,983 ) $ 774,536 Cumulative effect of accounting change — — — — ( 3,808 ) — ( 3,808 ) Adjusted beginning balance 24,920,984 2 460,720 — 353,989 ( 43,983 ) 770,728 Net income — — — — 103,533 — 103,533 Other comprehensive income — — — — — 976 976 Share-based compensation expense, net of forfeitures — — 2,127 — — — 2,127 Restricted stock activity, net of forfeitures (See Note 14 - Stockholders’ Equity ) 15,007 — — — — — — Stock option exercises, net 24,648 — ( 167 ) — — — ( 167 ) Balance as of December 31, 2023 24,960,639 $ 2 $ 462,680 $ — $ 457,522 $ ( 43,007 ) $ 877,197 Net income — — — — 75,628 — 75,628 Other comprehensive income — — — — — 3,895 3,895 Share-based compensation expense, net of forfeitures — — 2,375 — — — 2,375 Issuance of common stock, net of issuance costs 2,461,538 1 79,433 — — — 79,434 Restricted stock activity, net of forfeitures (See Note 14 - Stockholders’ Equity ) 10,998 — — — — — — Stock option exercises, net 276,504 — 2,837 — — — 2,837 Balance as of December 31, 2024 27,709,679 $ 3 $ 547,325 $ — $ 533,150 $ ( 39,112 ) $ 1,041,366 Net income — — — — 97,936 — 97,936 Other comprehensive income — — — — — 11,762 11,762 Share-based compensation expense, net of forfeitures — — 3,536 — — — 3,536 Restricted stock activity, net of forfeitures (See Note 14 - Stockholders’ Equity ) 82,415 — ( 699 ) — — — ( 699 ) Stock option exercises, net 95,243 — ( 545 ) — — — ( 545 ) Balance as of December 31, 2025 27,887,337 $ 3 $ 549,617 $ — $ 631,086 $ ( 27,350 ) $ 1,153,356 The accompanying notes are an integral part of these consolidated financial statements. 86 Table of Contents FIRSTSUN CAPITAL BANCORP Consolidated Statements of Cash Flows For the year ended December 31, (In thousands) 2025 2024 2023 Cash flows from operating activities: Net income $ 97,936 $ 75,628 $ 103,533 Adjustments to reconcile income to net cash provided by operating activities: Provision for credit losses 24,600 27,550 18,247 Depreciation and amortization on premises and equipment 8,248 7,375 7,420 Deferred tax expense 2,759 3,347 3,012 Amortization of net premium on securities 512 729 1,004 Accretion of net discount on acquired loans ( 1,316 ) ( 2,530 ) ( 3,204 ) Net change in deferred loan origination fees and costs 4,401 ( 132 ) ( 1,178 ) Amortization of core deposits and other intangible assets 2,412 2,769 4,822 Amortization of premium on acquired deposits ( 79 ) ( 340 ) ( 966 ) Accretion of discount on subordinated debt 272 383 286 Amortization of issuance costs on subordinated debt 124 147 147 Accretion of discount on convertible notes payable — — 101 Increase in cash surrender value of bank-owned life insurance ( 2,171 ) ( 1,989 ) ( 1,928 ) Impairment of other real estate owned and foreclosed assets 711 133 286 Impairment of other intangible assets — 780 — Federal Home Loan Bank stock dividends ( 586 ) ( 789 ) ( 1,560 ) Share-based compensation expense 3,536 2,375 2,127 Decrease in fair value of mortgage servicing rights 12,191 4,714 6,649 Net loss on disposal of premises and equipment 179 397 120 Net loss on other real estate owned and foreclosed assets activity 373 28 106 Net gain on sales of loans held-for-sale ( 10,965 ) ( 6,959 ) ( 3,491 ) Net loss on subordinated notes issuance costs due to early redemption 444 — — Origination of loans held-for-sale ( 1,403,999 ) ( 1,088,457 ) ( 791,017 ) Proceeds from sales of loans held-for-sale 1,361,666 1,075,747 788,367 Changes in operating assets and liabilities: Lease right-of-use assets ( 106 ) ( 304 ) ( 660 ) Accrued interest receivable ( 153 ) 4,997 ( 8,556 ) Prepaid expenses and other assets 23,597 ( 16,086 ) ( 11,397 ) Accrued interest payable ( 2,025 ) ( 4,875 ) 7,782 Accrued expenses and other liabilities ( 11,078 ) 16,482 5,124 Net cash provided by operating activities $ 111,483 $ 101,120 $ 125,176 The accompanying notes are an integral part of these consolidated financial statements. 87 Table of Contents FIRSTSUN CAPITAL BANCORP Consolidated Statements of Cash Flows (continued) For the years ended December 31, (In thousands) 2025 2024 2023 Cash flows from operating activities: (previous page) $ 111,483 $ 101,120 $ 125,176 Cash flows from investing activities: Proceeds from maturities of held-to-maturity securities 1,533 1,849 2,007 Purchases of available-for-sale securities ( 23,694 ) ( 9,425 ) ( 21,555 ) Proceeds from paydowns, sales or maturities of available-for-sale securities 38,734 60,309 41,669 Loan originations, net of repayments ( 337,954 ) ( 129,465 ) ( 362,778 ) Purchases of premises and equipment ( 7,509 ) ( 5,412 ) ( 4,268 ) Proceeds from sales of premises and equipment 41 — — Proceeds from sales of other real estate owned and foreclosed assets 2,331 1,077 5,952 Proceeds from bank-owned life insurance — 725 — Purchases of restricted equity securities ( 693 ) ( 44,721 ) ( 51,076 ) Proceeds from the sale or redemption of restricted equity securities 5,419 54,665 64,779 Purchase of other investments ( 9,177 ) ( 11,769 ) ( 2,677 ) Proceeds from the sale or redemption of other investments 770 1,296 668 Net cash used in investing activities ( 330,199 ) ( 80,871 ) ( 327,279 ) Cash flows from financing activities: Net change in deposits 435,174 298,497 610,007 Net change in securities sold under agreements to repurchase ( 3,539 ) ( 9,994 ) ( 12,028 ) Proceeds from Federal Home Loan Bank advances 293,000 5,460,410 2,041,468 Repayments of Federal Home Loan Bank advances ( 428,000 ) ( 5,714,878 ) ( 2,295,885 ) Repayments of convertible notes payable — — ( 5,456 ) Repayments of subordinated notes ( 40,000 ) — — Proceeds from issuance of common stock, net of issuance costs and taxes paid on cashless exercise of equity awards ( 1,244 ) 82,271 ( 167 ) Net cash provided by financing activities 255,391 116,306 337,939 Net increase in cash and cash equivalents 36,675 136,555 135,836 Cash and cash equivalents, beginning of year 615,917 479,362 343,526 Cash and cash equivalents, end of year $ 652,592 $ 615,917 $ 479,362 Supplemental disclosures of cash flow information: Interest paid on deposits $ 146,009 $ 155,027 $ 92,085 Interest paid on borrowed funds $ 4,909 $ 12,099 $ 20,459 Cash paid for income taxes, net $ 15,707 $ 14,940 $ 28,459 Non-cash investing and financing activities: Right-of-use lease assets obtained in exchange for lessee operating lease liabilities $ 14,993 $ 4,960 $ 2,696 Net change in unrealized gain (loss) on available-for-sale securities $ 15,570 $ 5,156 $ 1,291 Loan charge-offs $ 28,986 $ 21,694 $ 9,672 Loans transferred to other real estate owned and foreclosed assets $ 9,791 $ 2,275 $ 4,086 Mortgage servicing rights resulting from sale or securitization of mortgage loans $ 14,584 $ 12,271 $ 9,253 The accompanying notes are an integral part of these consolidated financial statements. 88 Table of Contents FIRSTSUN CAPITAL BANCORP Notes to Consolidated Financial Statements ($ in thousands, except share and per share amounts) NOTE 1 - Basis of Presentation, Description of Business and Summary of Significant Accounting Policies a. Principles of Consolidation - The consolidated financial statements include the accounts of FirstSun Capital Bancorp (“FirstSun” or “Parent Company”) and its wholly-owned subsidiaries, Sunflower Bank, N.A. (the “Bank”), Sunflower Wealth Advisors LLC, and FEIF Capital Partners, LLC, and have been prepared using U.S. generally accepted accounting principles (“U.S. GAAP”) and prevailing practices in the banking industry. All significant intercompany balances and transactions have been eliminated. These entities are collectively referred to as “our”, “us”, “we”, or “the Company”. b. Nature of Operations - The Bank’s headquarters are located in Dallas, Texas. The Bank primarily operates throughout Texas, Kansas, Colorado, New Mexico, Arizona and California providing a full range of commercial and consumer banking and financial services to small and medium-sized companies. Its primary deposit products are checking, savings and term certificate accounts. Its primary wealth management and trust products are private banking, personal trust and agency accounts, employee benefit and retirement related trust and agency accounts, investment management and advisory agency accounts, and foundation and endowment trust and agency accounts. Its primary lending products are commercial, residential mortgage and consumer loans. Substantially all loans are secured by specific items of collateral, including business assets, consumer assets, and commercial and residential real estate. Commercial and industrial loans are generally expected to be repaid from the borrower’s cash flow from operations. c. Pending Merger with First Foundation - On October 27, 2025, FirstSun and First Foundation Inc. (“First Foundation”) entered into an Agreement and Plan of Merger, as amended by Amendment No. 1 dated February 6, 2026. Under the merger agreement, First Foundation will merge with and into FirstSun, with FirstSun continuing as the surviving corporation (the “Merger”). Immediately following the completion of the Merger, First Foundation’s wholly-owned bank subsidiary, First Foundation Bank, a California state-chartered bank, will merge with and into FirstSun’s wholly-owned bank subsidiary, Sunflower Bank, N.A., a national banking association, with Sunflower Bank continuing as the surviving bank. If the Merger is completed, at the effective time of the Merger (i) each outstanding share of First Foundation common stock will be converted into the right to receive 0.16083 of a share of FirstSun common stock, plus cash in lieu of fractional shares, subject to certain exceptions; and (ii) each outstanding share of First Foundation Series A Noncumulative Convertible Preferred Stock and each outstanding share of First Foundation Series C Non-Voting Common Equity Equivalent Stock (collectively, the “First Foundation Preferred Stock”) will be converted into the right to receive 0.16083 of a share of FirstSun common stock, plus cash in lieu of fractional shares, for the number of shares of First Foundation common stock into which such shares of First Foundation Preferred Stock were convertible immediately prior to the effective time of the Merger, subject to certain exceptions. Immediately prior to the effective time of the Merger, each outstanding warrant to acquire shares of First Foundation Series C Non-Voting Common Equity Equivalent Stock will be exercised and terminated pursuant to a Warrant Exercise and Termination Agreement. Immediately prior to the effective time of the Merger, each holder of First Foundation warrants will automatically exercise its warrants on a cashless basis and receive First Foundation Series C Non-Voting Common Equity Equivalent Stock together with its pro rata share of an aggregate cash payment of approximately $ 17.5 million to all warrant holders. The First Foundation Series C Non-Voting Common Equity Equivalent Stock received by warrant holders upon exercise will be exchanged in the Merger for shares of FirstSun common stock as described above. d. Subsequent Events - We evaluate events occurring subsequent to the balance sheet date to determine whether the events required recognition or disclosure in the financial statements. If conditions of a subsequent event existed as of the balance sheet date, depending on materiality, the effects may be required to be recognized and disclosed in the financial statements. If conditions of a subsequent event arose after the balance sheet date, the effects are not required to be recognized in the financial statements, but depending on materiality, may need to be disclosed in the financial statements. The Company has evaluated subsequent events for potential recognition and disclosure through the filing date of this Form 10-K. 89 Table of Contents e. Use of Estimates - The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates are based on historical experience and on various assumptions about the future that are believed to be reasonable based on all available information. Our reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to critical accounting policies. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. f. Concentration of Credit Risk - We have a significant concentration in commercial and industrial loans and residential real estate within Texas, Kansas, Colorado, New Mexico and Arizona. When necessary, we perform credit evaluations on our customers' financial condition and often request additional guarantees and forms of collateral from our customers. These financial evaluations require significant judgment and are based on a variety of factors including, but not limited to, current economic trends, historical payment patterns, cash flow needs and deposit balances (particularly in light of recent developments in the banking industry) and bad debt write-off experience. Declines in the local or statewide economies could have an adverse impact on our borrowers’ financial condition. Specifically, inflation and higher interest rates, along with monetary events, can cause some of our business customers who have greater operating cash needs to draw on their deposits with us to meet expenses. Adverse developments affecting real estate values in one or more of our markets could increase our credit risk associated with our loan portfolio. Additionally, if loans are not repaid according to their terms, the collateral securing the loans, in those cases where real estate serves as the primary collateral, may not have value equal to the amounts owed under the loan. We did not exceed regulatory concentration monitoring levels as of December 31, 2025 or 2024. g. Reclassifications - Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior years net income or stockholders’ equity. h. Adoption of New Accounting Standards and Change in Accounting Principle - As an “emerging growth company” under Section 107 of the JOBS Act, we can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Therefore, we can delay the adoption of certain accounting standards until those standards would otherwise apply to non-public business entities. We intend to take advantage of the benefits of this extended transition period for an “emerging growth company” for as long as it is available to us. For standards that we have delayed adoption, we may lack comparability to other companies who have adopted such standards. In March of 2023, the FASB issued ASU 2023-02, “Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” ASU 2023-02 allows entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. We adopted the amendments in this ASU as of January 1, 2025. The adoption did not have a significant effect on our financial statements. In December of 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740: Improvements to Income Tax Disclosures , which requires public business entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. It also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. We adopted the amendments in this ASU for our annual financial statements in 2025, prospectively. See Note 15 - Income Taxes . i. Fair Value Measurement - Fair value is determined in accordance with Accounting Standards Codification (ASC) Topic 820, Fair Value Measurement . ASC Topic 820 establishes a fair value hierarchy which requires the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 describes three levels of inputs that may be used to measure fair value: 90 Table of Contents Level 1 : Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 : Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. Level 3 : Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own beliefs about the assumptions that market participants would use in pricing the assets or liabilities. j. Cash and Cash Equivalents - Cash and cash equivalents include cash, cash items in process of collection, deposits with other financial institutions and federal funds sold. For purposes of the consolidated statements of cash flows, we consider all federal funds sold and interest-bearing deposits at other financial institutions to be cash and cash equivalents, all with original maturities of less than 90 days. Cash held at depository institutions at times may be in excess of the Federal Deposit Insurance Corporation (FDIC) insurance limit. Cash deposits are with financial institutions that we believe to be reputable and we do not anticipate realizing any losses from these cash deposits. As of December 31, 2025 and 2024, we have complied with all regulatory cash reserve and clearing requirements. Cash and cash equivalents were as follows as of December 31,: 2025 2024 Federal Reserve Bank $ 602,632 $ 560,142 Federal Home Loan Bank 3,376 2,470 Other 15,421 13,120 Total cash due from depository institutions 621,429 575,732 Cash on hand and noninterest-bearing accounts 31,163 40,185 Total cash and cash equivalents $ 652,592 $ 615,917 k. Securities - The Bank classifies debt securities as either available-for-sale or held-to-maturity. Held-to-maturity securities are those which the Bank has the positive intent and ability to hold to maturity. All other debt securities are classified as available-for-sale. Held-to-maturity securities are recorded at amortized cost. Available-for-sale securities are recorded at fair value. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and are reported as a separate component of stockholders’ equity (accumulated other comprehensive income/loss) until realized. Realized gains and losses on securities classified as available-for-sale are included in earnings and recorded on trade date. The specific identification method is used to determine the cost of the securities sold. Purchased premiums and discounts on debt securities are amortized or accreted into interest income using the yield-to-maturity method based upon the remaining contractual maturity of the asset, adjusted for any expected prepayments or call features for securities purchased at a premium. For available-for-sale debt securities in an unrealized loss position, management first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value. Any previously recognized allowance for credit losses (“ACL”) should be written off and the write-down in excess of such ACL would be recorded through a charge to the provision for credit losses. For available-for-sale debt securities that do not meet the aforementioned criteria, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the cash position of the issuer and its cash and capital generation capacity, which could increase or diminish the issuer’s ability to repay its bond obligations, the extent to which the fair value is less than the amortized cost basis, any adverse change to the credit conditions and liquidity of the issuer, taking into consideration the latest information about the financial condition of the issuer, credit ratings, the failure of the issuer to make scheduled principal or interest payments, recent legislation and government actions affecting the issuer’s industry, and actions taken by the issuer to deal with the economic climate. Management also takes into 91 Table of Contents consideration changes in the near-term prospects of the underlying collateral of a security, if any, such as changes in default rates, loss severity given default, and significant changes in prepayment assumptions and the level of cash flow generated from the underlying collateral, if any, supporting the principal and interest payments on the debt securities. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and management records an ACL for the credit loss, limited to the amount by which the fair value is less than the amortized cost basis. Management recognizes in accumulated other comprehensive income/loss (“AOCI”) any impairment that has not been recorded through an ACL, net of tax. Non-credit-related impairments result from other factors, including changes in interest rates. Management records changes in the ACL as a provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Management has elected not to measure an ACL on accrued interest related to available-for-sale debt securities, as uncollectible accrued interest receivables are written off on a timely manner. The ACL on held-to-maturity debt securities is based on an expected loss methodology referred to as current expected credit loss (“CECL”) methodology by major security type. Any expected credit loss is provided through the ACL on held-to-maturity debt securities and is deducted from the amortized cost basis of the security so the statement of financial condition reflects the net amount management expects to collect. For the ACL of held-to-maturity securities, management considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management has elected not to measure an ACL on accrued interest related to held-to-maturity debt securities, as uncollectible accrued interest receivables are written off on a timely manner. Equity securities are carried at fair value, with changes in fair values reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. Equity securities are included as a component of “prepaid expenses and other assets” in our consolidated balance sheets. l. Loans Held-for-Sale - Mortgage loans originated and intended for sale in the secondary market are classified as loans held-for-sale and recorded at fair value. Most of these loans are sold with servicing rights retained. The changes in fair value of loans held-for-sale are measured and recorded in mortgage banking services. Loan origination fees are recorded in the period of origination. m. Loans Receivable - Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff, are reported at the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs, fair value hedge accounting adjustments, and an allowance for credit losses. Interest on loans receivable is accrued and credited to income based upon the principal amount outstanding using primarily a simple interest calculation. Loan origination fees and related direct loan origination costs for a given loan are offset and only the net amount is deferred and amortized and recognized in interest income over the life of the loan using the interest method without anticipating prepayments. The accrual of interest income on loans is discontinued when, in management’s judgment, the interest is uncollectible in the normal course of business, and a loan is moved to nonaccrual status in accordance with the Bank’s policy, typically after 90 or 120 days of non-payment, as follows: interest income on consumer, commercial real estate and commercial and industrial loans is typically discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in the process of collection; interest income on residential real estate loans is typically discontinued at the time the loan is 120 days delinquent unless the loan is well-secured and in the process of collection. Consumer and credit card loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest in full is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual are classified as nonperforming loans. When discontinued, all unpaid interest is reversed. Interest is included in income after the date the loan is placed on nonaccrual status only after all principal has been paid or when the loan is returned to accrual status. The loan is returned to accrual status only when the borrower has brought all past-due principal and interest payments 92 Table of Contents current and, in the opinion of management, has demonstrated the ability to make future payments of principal and interest as scheduled. Acquired Loans – Loans acquired through a purchase or a business combination are recorded at their fair value as of the acquisition date. Management performs an assessment of acquired loans to first determine if such loans have experienced a more than insignificant deterioration in credit quality since their origination and thus should be classified and accounted for as purchased credit deteriorated (“PCD”) loans. For loans that have not experienced a more than insignificant deterioration in credit quality since origination, referred to as non-PCD loans, management records such loans at fair value, with any resulting discount or premium accreted or amortized into interest income over the remaining life of the loan using the interest method. Additionally, upon the purchase or acquisition of non-PCD loans, management measures and records an ACL based on the Bank’s methodology for determining the ACL. The ACL for non-PCD loans is recorded through a charge to the provision for credit losses in the period in which the loans are purchased or acquired. Acquired loans that are classified as PCD are recognized at fair value, which includes any premiums or discounts resulting from the difference between the initial amortized cost basis and the par value. Premiums and non-credit loss related discounts are amortized or accreted into interest income over the remaining life of the loan using the interest method. Unlike non-PCD loans, the initial ACL for PCD loans is established through an adjustment to the acquired loan balance and not through a charge to the provision for credit losses in the period in which the loans are acquired. At acquisition, the ACL for PCD loans, which represents the fair value credit discount, is determined using a discounted cash flow method that considers the probability of default and loss-given default used in the Bank’s ACL methodology. Characteristics of PCD loans include the following: delinquency, payment history since origination, credit scores migration and/or other factors the Bank may become aware of through its initial analysis of acquired loans that may indicate there has been a more than insignificant deterioration in credit quality since a loan’s origination. Subsequent to acquisition, the ACL for both non-PCD and PCD loans is determined pursuant to the Bank ACL methodology in the same manner as all other loans. n. Allowance for Credit Losses - The ACL for loans held for investment is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on loans. Loans are charged-off against the allowance when management confirms the loan balance is uncollectible. Management estimates the allowance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Internal and industry historical credit loss experience is a significant input for the estimation of expected credit losses. Additionally, management’s assessment involves evaluating key factors, which include credit and macroeconomic indicators, such as changes in economic growth levels, unemployment rates, property values, and other relevant factors, to account for current and forecasted market conditions that are likely to cause estimated credit losses over the life of the loans to differ from historical credit losses. Expected credit losses are generally estimated over the contractual term of the loans, adjusted by prepayments when appropriate. Management estimates the ACL primarily based on a probability of default (“PD”), loss-given default (“LGD”), and exposure at default (“EAD”) modeled approach, or individually for collateral dependent loans. Management evaluates the need for changes to the ACL by portfolio segments and classes of loans within certain of those portfolio segments. Factors such as the credit risk inherent in a portfolio and how management monitors the related quality, as well as the estimation approach to estimate credit losses, are considered in the determination of such portfolio segments and classes. The Bank believes it has a diversified portfolio across a variety of industries, and the portfolio is generally centered in the states in which the Bank has offices. Management has identified the following portfolio segments: Commercial and industrial loans include commercial and industrial loans to commercial customers for use in normal business operations to finance working capital needs, equipment and inventory purchases, and other expansion projects. These loans are made primarily in the Bank’s market areas, are underwritten on the basis of the borrower’s ability to service the debt from revenue, and extended under the Bank’s normal credit standards, controls, and monitoring systems. Collateral is often represented by liens on accounts receivable, inventory, equipment, and other forms of general non-real estate business assets. The Bank often obtains some form of credit enhancement through a personal guaranty of the borrower, principals and/or others. The global cash flow capability of commercial and industrial loan 93 Table of Contents customers is generally evaluated both at underwriting and during the life of the loan. Commercial and industrial loans may involve increased risk due to the expectation that repayments for such loans generally come from the operation of the business activity and those operations may be unsuccessful. A disruption in the operating cash flows from a business, sometimes influenced by events not under the control of the borrower such as changing business environment, changes in regulations and political climate, rising interest rates, unexpected natural events, or competition could also impact the borrower’s capacity to repay the loan. Assets collateralizing commercial and industrial loans may also decline in value more quickly than anticipated. Commercial and industrial loans require increased underwriting and monitoring to offset these risks, for which the Bank’s systems have been designed to provide. Commercial real estate 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. 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 loans to nondepository financial institutions, lease financing receivables and loans for agricultural production. The ACL is measured using a PD/LGD with EAD model that is calculated based on the product of a cumulative PD and LGD. PD and LGD estimates are assigned based upon the periodic completion of credit risk scorecards. Remaining EAD is derived based on inherent loan characteristics and like-kind loan prepayment trends. Under this approach, management calculates losses for each loan for all future periods using the PD and LGD rates derived from the term structure curves applied to the estimated remaining balance of the loans. For the ACL determination of all portfolios, the expectations for relevant macroeconomic variables consider an initial 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 loss rates. Management periodically considers the need to make qualitative adjustments to the ACL. Qualitative adjustments may be related to and include, but not be limited to factors such as the following: (i) management’s assessment of economic 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. Loans that do not share similar risk characteristics with the collectively evaluated pools are evaluated on an individual basis and are excluded from the collectively evaluated pools. Such loans are evaluated for credit losses based on either discounted cash flows or the fair value of collateral. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral, less selling costs. For loans for which foreclosure is not probable, but for which repayment is expected to be provided substantially through the operation or sale of the collateral, management has elected the practical expedient under ASC 326 to estimate expected credit losses based on the fair value of the collateral, with selling costs considered in the event sale of the collateral is expected. Management has elected not to measure an ACL on accrued interest related to held for investment loans, as uncollectible accrued interest receivables are written off in a timely manner. Loan credit quality and the adequacy of the allowance are also subject to periodic examination by regulatory agencies. Such agencies may require adjustments to the allowance based upon their judgments about information available at the time of their examination. 94 Table of Contents Management estimates expected credit losses over the contractual period in which the Bank is exposed to credit risk via a contractual obligation to extend credit unless the obligation is unconditionally cancellable by the Bank. The ACL on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes the consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. o. Mortgage Servicing Rights (MSRs) - MSRs arise from contractual agreements between us and investors in mortgage loans. Pursuant to ASC Topic 860-50, Servicing Assets and Liabilities , we record MSR assets when we sell loans on a servicing-retained basis, at the time of a securitization that qualifies and meets requirements for sale accounting or through the acquisition or assumption of the right to service a financial asset. Under these contracts, we perform loan servicing functions in exchange for fees and other remuneration. Our MSRs are initially recorded and subsequently measured at fair value. The fair value of the MSRs is based upon the present value of the expected future net cash flows related to servicing these loans. We receive a base servicing fee, generally ranging from 0.25 % to 0.50 % annually on the remaining outstanding principal balances of the loans. The servicing fees are collected from investors. We determine the fair value of the MSRs by the use of a discounted cash flow model that incorporates prepayment speeds, delinquencies, discount rate, ancillary revenues and other assumptions (including costs to service) that management believes are consistent with the assumptions other market participants use in valuing MSRs. The nature of the loans underlying the MSRs affects the assumptions used in the cash flow models. We obtain third-party valuations quarterly to assess the reasonableness of the fair value calculated by the cash flow model. Changes in the fair value of MSRs are charged or credited to mortgage banking services, net . As a part of our mortgage servicing responsibilities, we advance funds when the borrower fails to meet contractual payments (e.g., principal, interest, property taxes, and insurance). We also advance funds to maintain, report, and market foreclosed real estate properties on behalf of investors. These advances are collectively known as servicer related advances. Such advances are recovered from borrowers for reinstated and performing loans and from investors for foreclosed loans. We record an ACL on outstanding servicer advances when we determine that based on all available information, that a credit loss is expected, and that all contractual amounts due will not be recovered. There was no ACL on outstanding servicer advances as of December 31, 2025 and 2024, respectively. p. Premises and Equipment - Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed on the straight-line or declining balance method depending upon the type of asset with useful lives ranging from one to 39 years. Depreciation and amortization expense has been included in occupancy and equipment expense in the accompanying consolidated statements of income and comprehensive income. Maintenance and repair costs are charged to expense as incurred. Major betterments are considered individually and are capitalized or expensed depending on facts and circumstances. q. Other Real Estate Owned and Foreclosed Assets - Assets acquired through, or in lieu of, foreclosure or repossession or otherwise are being held for disposal or to be sold are adjusted upon transfer to fair value less estimated costs to sell, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Subsequent to foreclosure/repossession, management periodically performs valuations, and an allowance for losses is established by a charge against earnings if the carrying value of a property exceeds the fair value less estimated costs to sell. Revenue and expenses from operation and changes in the valuation allowance are included in other noninterest expense on the consolidated statements of income and comprehensive income. r. Bank-owned Life Insurance (BOLI) - We have purchased life insurance policies on certain key current and former executives as a method to offset the cost of employee benefit plans. We record BOLI at the estimated contractual amount that would be realized if the life insurance policy is surrendered prior to maturity or death of the insured, which is the cash surrender value adjusted for other charges and amounts due that are probable at settlement. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are recorded in noninterest income and are not subject to income taxes. s. Restricted Equity Securities - Restricted equity securities consist of capital stock of the Federal Home Loan Bank of Dallas (FHLB) and the Federal Reserve Bank of Dallas (FRB). Such stock is not readily marketable, and 95 Table of Contents accordingly, is carried at cost. Members of the FHLB are required to own a certain amount of stock based on the level of borrowings and other factors. As a national banking association, the Bank is required to own stock of its regional FRB. FRB and FHLB stock are periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Restricted equity securities consisted of the following: 2025 2024 Federal Home Loan Bank stock $ 7,510 $ 11,739 Federal Reserve Bank stock 17,265 17,178 Total restricted equity securities $ 24,775 $ 28,917 t. Goodwill - The excess purchase price of acquired businesses over the fair value of identifiable assets acquired and liabilities assumed is recognized as goodwill. Goodwill is evaluated for impairment on an annual basis, or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. Our evaluation may consist of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. Factors considered in the qualitative assessment include general economic conditions, conditions of the industry and markets in which we operate, regulatory developments, cost factors, and our overall financial performance. We performed our most recent annual goodwill impairment test as of December 31, 2025 and concluded that no impairment existed. No impairment losses have been recognized during the years ended December 31, 2025, 2024 and 2023. u. Core Deposits and Other Intangible Assets - Core deposits related to the depositor relationship of customers acquired from our business combinations are recognized in the value of core deposits. Our core deposits were valued based on the expected future benefit or earnings capacity attributable to the acquired deposits. These assets have been assigned 10 year lives from the date of acquisition. Other intangible assets include the First National 1870 trade name. The trade name provides a source of market recognition to attract potential clients/relationships and retain existing customers. Management has indicated that portions of the business will utilize the First National 1870 trade name into perpetuity; therefore, this trade name has been classified as an indefinite-lived asset. In December 2024, a decision was made to discontinue the use of the Guardian Mortgage tradename (see Note 6 - Core Deposits and Other Intangible Assets ). We also have acquired certain customer relationships relating to wealth management. These customer relationships have been assigned amortization periods of 10 to 16 years. v. Impairment of Long-lived Assets - Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When events or changes in circumstances indicate an asset may not be recoverable, we estimate the future cash flows expected to result from the use of the asset. If impairment is indicated, an adjustment is made to reduce the carrying amount based on the difference between the future cash flows expected and the carrying amount of the asset. During the year ended December 31, 2025, 2024 and 2023 there was no impairment of long-lived assets, respectively. w. Transfers of Financial Assets - Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. x. Loan Commitments and Related Financial Instruments - Financial instruments include off-balance sheet credit instruments, such as commitments to make loans, commercial letters of credit, and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. y. Derivative Instruments and Hedging Activities - Derivatives and Hedging (ASC Topic 815), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain our objectives and strategies for using derivatives, as well as quantitative 96 Table of Contents disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC Topic 815, we record all derivatives on the consolidated balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We may enter into derivative contracts that are intended to economically hedge certain of our risks, even though hedge accounting does not apply or we do not elect to apply hedge accounting. We do not have any cash flow or foreign currency hedges. In accordance with the fair value measurement guidance in ASU Topic 2011-04, Fair Value Measurement (Topic 820), we made an accounting policy election to measure the credit risk of our derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Risk Management Objective of Using Derivatives Banking Activities - We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of our assets and liabilities and the use of derivative financial instruments. Specifically, we enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash receipts and our known or expected cash payments principally related to our loan portfolio. The initial and subsequent changes in value, as well as the offsetting gain or loss of banking derivative financial instruments that qualify as fair value hedges, and any fee income generated are recorded as a component of interest and fee income on loans in our consolidated statements of income and comprehensive income. Mortgage Banking Activities - Our mortgage bankers enter into interest rate lock commitments (IRLC) with prospective borrowers. An IRLC represents an agreement to purchase loans from a third-party originator or an agreement to extend credit to a mortgage applicant, whereby the interest rate is set prior to funding. The loan commitment binds us (subject to the loan approval process) to fund the loan at the specified rate, regardless of whether interest rates have changed between the commitment date and the loan funding date. Outstanding interest rate lock commitments are subject to interest rate risk and related price risk during the period from the date of the commitment through the loan funding date or expiration date. The borrower is not obligated to obtain the loan; thus, we are subject to fallout risk related to IRLCs, which is realized if approved borrowers choose not to close on the loans within the terms of the IRLC. Our interest rate exposure on these derivative loan commitments is hedged with forward sales of mortgage-based securities as described below. Our IRLCs are carried at fair value in accordance with ASC Topic 815, and recorded at fair value in prepaid expenses and other assets on our consolidated balance sheets. ASC Topic 815 clarifies that the expected net future cash flows related to the associated servicing of a loan should be included in the measurement of all written loan commitments that are accounted for at fair value through earnings. The estimated fair values of IRLCs are based on the fair value of the related mortgage loans which is based upon observable market data. The initial and subsequent changes in value of IRLCs are recorded as a component of mortgage banking services, net, in our consolidated statements of income and comprehensive income. We actively manage the risk profiles of our IRLCs and mortgage loans held-for-sale on a daily basis. To manage the price risk associated with IRLCs, we enter into forward sales of mortgage-backed securities (MBS) in an amount equal to the portion of the IRLC expected to close, assuming no change in mortgage interest rates. In addition, to manage the interest rate risk associated with mortgage loans held-for-sale, we enter into forward sales 97 Table of Contents of MBS to deliver mortgage loans to third-party investors. The estimated fair values of forward sales of MBS and forward sales commitments are based on exchange prices or the dealer market price. The initial and subsequent changes in value on forward sales of MBS and forward sales commitments are a component of mortgage banking services, net, in our consolidated statements of income and comprehensive income. We also occasionally enter into contracts with other mortgage bankers to purchase residential mortgage loans at a future date, which we refer to as Loan Purchase Commitments (LPCs). LPCs are accounted for as derivatives under ASC Topic 815 and recorded at fair value in prepaid expenses and other assets on our consolidated balance sheets. Subsequent changes in LPCs are recorded as a charge or credit to mortgage banking services, net, in our consolidated statements of income and comprehensive income. We utilize derivative instruments to help manage the fair value changes in our MSRs. These derivative instruments are intended to economically hedge certain risks related to our MSRs. As such, these derivative instruments are not designated as accounting hedges. These derivatives may include To Be Announced (TBA) MBS, interest rate swaps, and options contracts and are valued based on quoted prices for similar assets in an active market with inputs that are observable. These derivative products are accounted for and recorded at fair value in prepaid expenses and other assets or accrued expenses and other liabilities on our consolidated balance sheets. Subsequent changes are recorded to mortgage banking services, net, in our consolidated statements of income and comprehensive income. z. Lease Commitments - We determine if an arrangement is a lease or contains a lease at inception. Leases result in the recognition of right of use (“ROU”) assets and lease liabilities on our consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and are included in prepaid expenses and other assets in our consolidated balance sheets. Lease liabilities represent the obligation to make lease payments arising from the lease, measured on a discounted basis, and are included in accrued expenses and other liabilities in our consolidated balance sheets. We determine lease classification as operating or finance at the lease commencement date. At lease inception, the lease liability is measured at the present value of the lease payments over the lease term. The ROU asset equals the lease liability adjusted for any initial direct costs, prepaid or deferred rent, and lease incentives. We use the implicit rate when readily determinable, however, as most of the leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date, which is based on our collateralized borrowing capabilities over a similar term as the related lease payments. The lease term may include options to extend or to terminate the lease that we are reasonably certain to exercise. Lease expense is generally recognized on a straight-line basis over the lease term. We have elected not to record leases with an initial term of 12 months or less on our consolidated balance sheets. Lease expense on such leases is recognized on a straight-line basis over the lease term. Further information is presented in Note 23 - Lease Commitments . aa. Revenue Recognition - Noninterest income within the scope of ASC Topic 606, Revenue From Contracts With Customers is recognized by us when performance obligations, under the terms of the contract, are satisfied. This income is measured as the amount of consideration expected to be received in exchange for the providing of services. The majority of our applicable noninterest income continues to be recognized at the time when services are provided to our customers. Further information is presented in Note 24 - Revenue from Contracts with Customers . ab. Advertising - Advertising costs are expensed as incurred and recorded within other noninterest expense. ac. Earnings Per Share - Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period, excluding outstanding participating securities. Participating securities include unexercised stock options, non-vested restricted stock awards/share units with a service condition and non-vested performance share units, including market-based awards. Diluted earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding determined for basic earnings per share plus the dilutive effect of stock compensation using the treasury stock method. 98 Table of Contents ad. Share-Based Compensation - Compensation cost is recognized for stock options, non-vested restricted stock awards/stock units, performance share units, and market-based awards issued to employees and directors, based on the fair value of these awards at the date of the grant. A Black-Scholes model is utilized to estimate the fair value of stock options. The fair value of non-vested stock awards/stock units and performance share units is generally the market price of our stock on the date of grant. A Monte Carlo simulation is utilized to estimate the fair value of market-based awards. The Monte Carlo simulation model is built on certain assumption including our stock volatility. We cannot predict the prices at which our common stock will trade in the future. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Compensation cost related to awards with market conditions are recognized regardless of whether the market condition is satisfied and is not reversed provided that the requisite service period has been completed. We recognize forfeitures as they occur. ae. Retirement Plan - We have an employee savings plan and trust (the Plan) which qualifies under Section 401(k) of the Internal Revenue Service Code. The Bank’s Trust and Wealth Management department is the Trustee. Substantially all of our full-time employees are eligible to participate in the Plan. Eligible employees may contribute up to 100 % of their compensation subject to certain limits based on federal tax laws. Additional contributions are allowed per the Internal Revenue Service Code for participants who have attained age 50 before the end of the Plan year. We make a matching contribution for each eligible participant equal to 100 % of the participant’s elective deferrals which does not exceed 6 % of the participant’s compensation. Participants are immediately vested in the matching contribution. Matching contributions to the Plan charged to salary and employee benefits amounted to $ 6.5 million, $ 6.0 million and $ 5.3 million in 2025, 2024 and 2023, respectively. af. Income Taxes - The Company files a consolidated federal income tax return. Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards; deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities for subsequent changes in tax rates are recognized in income in the period that includes the tax rate changes. We recognize the financial effects of a tax position only when we believe it can “more likely than not” support the position upon a tax examination by the relevant taxing authority, with a tax examination being presumed to occur. We are no longer subject to examination by taxing authorities for years before 2022. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. ag. Comprehensive income - Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available-for-sale, which are recognized as a separate component of equity. ah. Loss Contingencies - Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on these consolidated financial statements. In addition, we generally sell loans to investors without recourse; therefore, the investors have assumed the risk of loss or default by the borrower. However, we are usually required by these investors to make certain standard representations and warranties relating to credit information, loan documentation, and collateral. To the extent that we do not comply with such representations, or there are early payment defaults, we may be required to repurchase the loans or indemnify these investors for any losses from borrower defaults. In addition, if loans pay off within a specified time frame, we may be required to refund a portion of the sales proceeds to the investors. We have established reserves for potential losses related to these representations and warranties which is recorded within accrued expenses and other liabilities. In assessing the adequacy of the reserve, we evaluate various factors including actual write-offs during the period, historical loss experience, known delinquent and other problem loans, and economic trends and conditions in the industry. Further information is presented in Note 22 - Commitments and Contingencies . 99 Table of Contents ai. Equity - Treasury stock, if any, is carried at cost. Dividend Restriction - Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Parent Company or by the Parent Company to stockholders. aj. Recent Accounting Pronouncements Not Yet Adopted - ASU No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 requires new financial statement disclosures in tabular format, disaggregating information about prescribed categories underlying any relevant income statement expense caption. The prescribed categories include, among other things, employee compensation, depreciation, and intangible asset amortization. Additionally, entities must disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. ASU 2024-03 will be effective for us, on a prospective basis, for annual periods beginning in 2027, and interim periods within fiscal years beginning in 2028, though early adoption and retrospective application is permitted. ASU 2024-03 is not expected to have a significant impact on our financial statements. ASU No. 2025-05, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets.” ASU 2025-05 provides all entities, when developing reasonable and supportable forecasts as part of estimating expected credit losses on current accounts receivable and/or current contract assets arising from transactions under ASC Topic 606 - Revenue from Contracts with Customers, a practical expedient whereby entities can assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. ASU 2025-05 will be effective in 2026 and is not expected to have a significant impact on our financial statements. ASU No. 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” ASU 2025-06 simplifies and modernizes the accounting for internal-use software by removing prescriptive project stage guidance and introducing a new capitalization threshold. Under the revised standard, software development costs are capitalized when management authorizes and commits funding for the project and it is probable the software will be completed and used as intended. ASU 2025-05 will be effective in 2028 and is not expected to have a significant impact on our financial statements. ASU 2025‑08, “Financial Instruments - Credit Losses (Topic 326): Purchased Loans.” ASU 2025-08 expands the scope of the “gross‑up” method, formerly applicable only to purchased credit‑deteriorated (“PCD”) assets, to include acquired non‑PCD loans that meet certain criteria, now referred to as “purchased seasoned loans” (PSLs). Under this model, an allowance for expected credit losses is recognized at acquisition, offsetting the loan’s amortized cost basis, thereby eliminating the day-one credit‑loss expense previously required for non‑PCD assets. PSLs are defined as non‑PCD loans acquired either (i) through a business combination, or (ii) purchased more than 90 days after origination when the acquirer was not involved in origination. ASU 2025-08 will be effective for us, on a prospective basis for loans acquired on or after the adoption date, for interim and annual reporting periods beginning in 2027, though early adoption is permitted. ASU 2025-08 is not expected to have a significant impact on our financial statements and we plan to early adopt on January 1, 2026. ASU 2025‑09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements.” ASU 2025-09 amends ASC 815 to align hedge accounting more closely with an entity’s economic risk management practices. Key amendments include (i) to allow designating a variable price component of a nonfinancial forecasted purchase or sale as the hedged risk, (ii) to allow grouping individual forecasted transactions with similar (not identical) risk exposures, (iii) a new model for hedging forecasted interest on variable-rate debt, enabling changes in index or tenor without dedesignation, subject to simplifying assumptions, and (iv) additional clarifications related to hedge accounting of nonfinancial components, net written options, and dual-hedge strategies. ASU 2025-09 will be effective for us beginning in 2027, though early adoption is permitted. ASU 2025-09 is not expected to have a significant impact on our financial statements. ASU 2025‑11, “Interim Reporting (Topic 270): Narrow‑Scope Improvements.” ASU 2025-11 clarifies and enhances guidance under ASC 270 on interim financial reporting by (i) clarifying the scope of ASC 270 such that it now explicitly applies only to entities that issue complete interim financial statements and related notes under U.S. GAAP, (ii) establishing clear guidance on the form of interim statements and notes, incorporating a comprehensive list of required interim disclosures drawn from across the ASC, and (iii) introducing a requirement 100 Table of Contents to disclose material events and changes occurring after the end of the last annual period that could impact interim results. ASU 2025-11 will be effective for us for interim periods beginning in 2028, though early adoption is permitted. ASU 2025-11 is not expected to have a significant impact on our financial statements. NOTE 2 - Securities The amortized cost, gross unrealized gains and losses, and fair value of available-for-sale and held-to-maturity debt securities by type follows as of December 31,: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value 2025 Available-for-sale: U.S. treasury $ 35,164 $ — $ ( 1,894 ) $ 33,270 U.S. agency 418 — ( 6 ) 412 Obligations of states and political subdivisions 29,590 67 ( 1,584 ) 28,073 Mortgage backed - residential 107,113 326 ( 11,263 ) 96,176 Collateralized mortgage obligations 165,229 — ( 14,432 ) 150,797 Mortgage backed - commercial 151,905 951 ( 8,863 ) 143,993 Other debt 15,755 494 — 16,249 Total available-for-sale $ 505,174 $ 1,838 $ ( 38,042 ) $ 468,970 Held-to-maturity: Obligations of states and political subdivisions $ 25,890 $ — $ ( 3,932 ) $ 21,958 Mortgage backed - residential 5,467 1 ( 363 ) 5,105 Collateralized mortgage obligations 2,482 — ( 99 ) 2,383 Total held-to-maturity $ 33,839 $ 1 $ ( 4,394 ) $ 29,446 2024 Available-for-sale: U.S. treasury $ 35,224 $ — $ ( 3,494 ) $ 31,730 U.S. agency 665 — ( 9 ) 656 Obligations of states and political subdivisions 27,709 31 ( 2,041 ) 25,699 Mortgage backed - residential 111,038 128 ( 14,887 ) 96,279 Collateralized mortgage obligations 183,718 3 ( 19,374 ) 164,347 Mortgage backed - commercial 147,374 357 ( 12,904 ) 134,827 Other debt 15,122 416 — 15,538 Total available-for-sale $ 520,850 $ 935 $ ( 52,709 ) $ 469,076 Held-to-maturity: Obligations of states and political subdivisions $ 25,713 $ — $ ( 4,899 ) $ 20,814 Mortgage backed - residential 6,373 1 ( 576 ) 5,798 Collateralized mortgage obligations 3,156 — ( 205 ) 2,951 Total held-to-maturity $ 35,242 $ 1 $ ( 5,680 ) $ 29,563 There was no allowance for credit losses related to our investment securities as of December 31, 2025 and 2024. As of December 31, 2025 and 2024, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. 101 Table of Contents Fair value and unrealized losses on debt securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows as of December 31,: Less than 12 months 12 months or longer Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Number of Securities 2025 Available-for-sale: U.S. treasury $ — $ — $ 33,270 $ ( 1,894 ) $ 33,270 $ ( 1,894 ) 4 U.S. agency — — 412 ( 6 ) 412 ( 6 ) 2 Obligations of states and political subdivisions — — 22,837 ( 1,584 ) 22,837 ( 1,584 ) 16 Mortgage backed - residential 1,802 ( 4 ) 78,014 ( 11,259 ) 79,816 ( 11,263 ) 82 Collateralized mortgage obligations 10,048 ( 8 ) 140,749 ( 14,424 ) 150,797 ( 14,432 ) 59 Mortgage backed - commercial 2,885 ( 19 ) 108,983 ( 8,844 ) 111,868 ( 8,863 ) 24 Total available-for-sale $ 14,735 $ ( 31 ) $ 384,265 $ ( 38,011 ) $ 399,000 $ ( 38,042 ) 187 Held-to-maturity: Obligations of states and political subdivisions $ — $ — $ 21,631 $ ( 3,932 ) $ 21,631 $ ( 3,932 ) 8 Mortgage backed - residential 18 — 5,050 ( 363 ) 5,068 ( 363 ) 11 Collateralized mortgage obligations — — 2,383 ( 99 ) 2,383 ( 99 ) 5 Total held-to-maturity $ 18 $ — $ 29,064 $ ( 4,394 ) $ 29,082 $ ( 4,394 ) 24 102 Table of Contents Less than 12 months 12 months or longer Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Number of Securities 2024 Available-for-sale: U.S. treasury $ — $ — $ 31,730 $ ( 3,494 ) $ 31,730 $ ( 3,494 ) 4 U.S. agency — — 656 ( 9 ) 656 ( 9 ) 7 Obligations of states and political subdivisions — — 22,253 ( 2,041 ) 22,253 ( 2,041 ) 17 Mortgage backed - residential 3,788 ( 49 ) 86,626 ( 14,838 ) 90,414 ( 14,887 ) 81 Collateralized mortgage obligations 10,785 ( 12 ) 146,740 ( 19,362 ) 157,525 ( 19,374 ) 62 Mortgage backed - commercial 1,705 ( 51 ) 112,801 ( 12,853 ) 114,506 ( 12,904 ) 23 Total available-for-sale $ 16,278 $ ( 112 ) $ 400,806 $ ( 52,597 ) $ 417,084 $ ( 52,709 ) 194 Held-to-maturity: Obligations of states and political subdivisions $ 329 $ — $ 20,485 $ ( 4,899 ) $ 20,814 $ ( 4,899 ) 9 Mortgage backed - residential — — 5,703 ( 576 ) 5,703 ( 576 ) 10 Collateralized mortgage obligations — — 2,951 ( 205 ) 2,951 ( 205 ) 5 Total held-to-maturity $ 329 $ — $ 29,139 $ ( 5,680 ) $ 29,468 $ ( 5,680 ) 24 We do not consider the unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. We do not have plans to sell any of the available-for-sale debt securities with unrealized losses as of December 31, 2025, and we believe it is more likely than not that we would not be required to sell such available-for-sale debt securities before recovery of their amortized cost. We continue to monitor unrealized loss positions for potential credit impairments. During the years ended December 31, 2025, 2024 and 2023, there were no credit impairments related to our investment securities. The amortized cost and fair value of our debt securities by contractual maturity as of December 31, 2025 are summarized in the following table. Maturities are based on the final contractual payment dates and do not reflect the impact of prepayments or earlier redemptions that may occur. Amortized Cost Estimated Fair Value Available-for-sale: Due within 1 year $ 368 $ 367 Due after 1 year through 5 years 112,491 109,812 Due after 5 years through 10 years 124,204 116,650 Due after 10 years 268,111 242,141 Total available-for-sale $ 505,174 $ 468,970 Held-to-maturity: Due within 1 year $ 696 $ 692 Due after 1 year through 5 years 360 361 Due after 5 years through 10 years 3,334 3,164 Due after 10 years 29,449 25,229 Total held-to-maturity $ 33,839 $ 29,446 103 Table of Contents Securities with a carrying value of $ 361,877 and $ 460,387 were pledged to secure public deposits, securities sold under agreements to repurchase and borrowed funds at December 31, 2025 and 2024, respectively. There were proceeds from sales and calls of securities of $ 1,895 for the year ended December 31, 2025. There were no proceeds from sales and calls of securities the years ended December 31, 2024 and 2023. For the years ended December 31, 2025, 2024 and 2023 there were no gross investment gains or losses resulting from the sale of securities. NOTE 3 - Loans Loans held-for-investment by portfolio type consist of the following as of December 31,: 2025 2024 Commercial and industrial $ 2,937,867 $ 2,627,591 Commercial real estate: Non-owner occupied 742,002 752,628 Owner occupied 700,774 700,867 Construction and land 268,652 362,677 Multifamily 210,368 94,355 Total commercial real estate 1,921,796 1,910,527 Residential real estate 1,221,086 1,180,610 Public finance 501,582 554,784 Consumer 32,651 41,144 Other 58,198 61,701 Total loans $ 6,673,180 $ 6,376,357 Allowance for credit losses ( 85,016 ) ( 88,221 ) Loans, net of allowance for credit losses $ 6,588,164 $ 6,288,136 As of December 31, 2025 and 2024, we had net deferred fees, costs, premiums and discounts of $ 13,538 and $ 10,222 , respectively, on our loan portfolio. Accrued interest receivable on loans totaled $ 30,031 and $ 29,971 at December 31, 2025 and 2024, respectively, and is included in accrued interest receivable in the accompanying consolidated balance sheets. 104 Table of Contents The following table presents the activity in the allowance for credit losses by portfolio type for the years ended December 31,: Commercial and Industrial Commercial Real Estate Residential Real Estate Public Finance Consumer Other Total 2025 Allowance for credit losses: Balance, beginning of year $ 38,489 $ 28,323 $ 15,450 $ 4,750 $ 750 $ 459 $ 88,221 Provision for (benefit from) credit losses 29,772 ( 3,926 ) ( 2,127 ) 114 213 1,004 25,050 Loans charged-off ( 25,800 ) — ( 74 ) ( 1,922 ) ( 447 ) ( 743 ) ( 28,986 ) Recoveries 441 11 74 — 205 — 731 Balance, end of year $ 42,902 $ 24,408 $ 13,323 $ 2,942 $ 721 $ 720 $ 85,016 2024 Allowance for credit losses: Balance, beginning of year $ 29,830 $ 27,546 $ 16,345 $ 5,337 $ 717 $ 623 $ 80,398 Provision for (benefit from) credit losses 28,221 1,243 ( 865 ) ( 587 ) 352 ( 164 ) 28,200 Loans charged-off ( 20,743 ) ( 475 ) ( 38 ) — ( 438 ) — ( 21,694 ) Recoveries 1,181 9 8 — 119 — 1,317 Balance, end of year $ 38,489 $ 28,323 $ 15,450 $ 4,750 $ 750 $ 459 $ 88,221 2023 Allowance for credit losses: Balance, beginning of year $ 40,908 $ 19,743 $ 2,963 $ 1,664 $ 351 $ 288 $ 65,917 Impact of adopting ASC 326 ( 13,583 ) 3,867 10,256 3,890 249 577 5,256 Provision for (benefit from) credit losses 10,629 4,007 2,457 ( 217 ) 401 ( 242 ) 17,035 Loans charged-off ( 9,242 ) ( 83 ) ( 13 ) — ( 334 ) — ( 9,672 ) Recoveries 1,118 12 682 — 50 — 1,862 Balance, end of year $ 29,830 $ 27,546 $ 16,345 $ 5,337 $ 717 $ 623 $ 80,398 We determine the allowance for credit losses estimate on at least a quarterly basis. As of December 31, 2025 and 2024, we had an allowance for credit losses on unfunded commitments of $ 1,209 and $ 1,659 , respectively. For the years ended December 31, 2025, 2024 and 2023, we recorded a provision (benefit) for credit losses on unfunded commitments of $( 450 ), $( 650 ) and $ 1,212 , respectively. 105 Table of Contents The following table presents our loan portfolio aging analysis as of December 31,: Loans Not Past Due Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans Greater than 90 Days Past Due, Still Accruing Nonaccrual Total 2025 Commercial and industrial $ 2,890,507 $ 8,149 $ 5,501 $ — $ 33,710 $ 2,937,867 Commercial real estate: Non-owner occupied 723,930 13,891 — — 4,181 742,002 Owner occupied 699,342 414 — — 1,018 700,774 Construction and land 264,238 — 4,414 — — 268,652 Multifamily 210,368 — — — — 210,368 Total commercial real estate 1,897,878 14,305 4,414 — 5,199 1,921,796 Residential real estate 1,177,999 16,657 4,614 690 21,126 1,221,086 Public Finance 501,582 — — — — 501,582 Consumer 32,528 70 7 — 46 32,651 Other 50,244 7,954 — — — 58,198 Total loans $ 6,550,738 $ 47,135 $ 14,536 $ 690 $ 60,081 $ 6,673,180 2024 Commercial and industrial $ 2,592,274 $ 6,331 $ 672 $ — $ 28,314 $ 2,627,591 Commercial real estate: Non-owner occupied 748,004 274 — — 4,350 752,628 Owner occupied 695,733 1,856 — — 3,278 700,867 Construction and land 362,677 — — — — 362,677 Multifamily 92,681 — — — 1,674 94,355 Total commercial real estate 1,899,095 2,130 — — 9,302 1,910,527 Residential real estate 1,140,193 17,065 3,117 15 20,220 1,180,610 Public Finance 547,558 — — — 7,226 554,784 Consumer 41,044 36 — — 64 41,144 Other 50,248 7,156 388 1,518 2,391 61,701 Total loans $ 6,270,412 $ 32,718 $ 4,177 $ 1,533 $ 67,517 $ 6,376,357 Interest income recorded on nonperforming loans was not material for the years ended December 31, 2025, 2024 and 2023. Credit risk monitoring and management is a continuous process to manage the quality of the loan portfolio. We segment loans into risk categories based on relevant borrower risk profile information, including the ability to service their debt based on current financial information, historical payment experience, credit documentation, public information and current economic trends among other factors. The risk rating system is used as a tool to analyze and monitor movements in loan portfolio quality. 106 Table of Contents Risk ratings meeting an internally specified exposure threshold are updated annually, or more frequently upon the occurrence of a circumstance that affects the credit risk of the loan. We use the following definitions for risk ratings: Pass – Loans classified as Pass have a well-defined primary source of repayment, an acceptable financial position profile (including capitalization), profitability and minimal operating risk. Pass/Watch – Pass/Watch loans require close attention by bank management and enhanced monitoring due to quantitative or qualitative concerns linked to adverse trends or near-term uncertainty. A covenant default or other type of requirement shortfall may have arisen subsequent to a loan's booking or borrower now shows signs of weakness in the overall base of confirmable financial resources available to repay the loan. However, overall financial capacity & performance are considered sufficient to support an expectation of continued payment performance and / or mitigating factors exist that are expected to limit the risk of near-term default and loss. Special Mention – Special Mention loans have identified potential weaknesses that are of sufficient materiality to require management’s (persistent) close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the bank's credit position under normal business operations. Special Mention loans contain greater than acceptable risk to warrant increases in credit exposure and are thus considered “criticized”, non-pass rated credits. They may contain weaknesses (that have arisen due to deteriorating conditions since origination) and / or underwriting exceptions that are not currently offset by mitigating factors. However, these weaknesses, while sufficient to constitute significantly elevated credit risk, are not sufficient to support a conclusion that the liquidation of the debt is in significant jeopardy. Substandard - Accruing – Substandard - Accruing loans are inadequately protected by the current sound net worth and paying capacity of the obligor(s). Loans classified as Substandard - Accruing possess one or more well-defined weaknesses that are expected to jeopardize their liquidation, but the weaknesses have not progressed to a point where recent late payments on the loan have become more than 90 days past due. These loans are characterized by the distinct possibility that the bank may sustain up to a moderate but not significant level of loss if such weaknesses are not corrected. Losses for Substandard - Accruing loans are moderated by the lower likelihood of ultimate default and the existence of relatively favorable secondary repayment protection. Substandard - Nonaccrual – Substandard - Nonaccrual loans are inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any. Loans classified as Substandard - Nonaccrual possess material, well-defined weaknesses that are expected to jeopardize their liquidation and have progressed to a point where consistently late payments on the loan have become more than 90 or more days past due. These loans are characterized by the distinct possibility that the bank may sustain a material level of loss if such weaknesses are not corrected. Losses for Substandard - Nonaccrual loans are prone to being elevated based on the strong likelihood of the loan remaining in payment default and an undesirable level of secondary repayment protection. These loans are considered “nonperforming”. Doubtful – Loans classified as Doubtful possess all of the weaknesses inherent in loans classified as Substandard - Nonaccrual with the added characteristic that the weaknesses make collection or liquidation in full highly questionable or improbable based on currently existing facts, conditions and values. A high probability of substantial loss or possible total loss exists. Loans rated as doubtful are not rated as loss because certain events may occur that could salvage at least a portion of the debt. These events include injections of capital, additions of pledged collateral or possible mezzanine debt refinancing options. However, without the occurrence of such events, total loss may be possible. No definite repayment schedule exists for these loans. The Doubtful grade is a temporary grade. If a near term recovery of a portion of the loan balance is indeterminable or unlikely to occur, the remaining balance of the loan should be written off and possible future recoveries may partially offset the full write-off of the loan. These loans are considered “nonperforming”. Loss – Loans classified as Loss are defaulted loans with limited or immaterial recovery prospects. No loan that has not yet defaulted should be classified at this grade level. This rating level tends to be very short lived as the full balance of the loan tends to be fully written off nearly immediately after a change to this rating level. These loans are considered “nonperforming”. 107 Table of Contents The following table presents the amortized costs by segment of loans by risk category and origination date as of December 31, 2025 and gross charge-offs by origination date for the year ended December 31, 2025: 2025 2024 2023 2022 2021 Prior Revolving Loans Converted to Term Revolving Total Commercial and industrial: Pass $ 740,012 $ 298,940 $ 169,246 $ 149,909 $ 121,886 $ 80,362 $ 57,063 $ 1,039,368 $ 2,656,786 Pass/Watch 2,217 26,707 11,607 26,316 1,005 2,868 2,195 9,782 82,697 Special Mention — 13,948 20,570 23,243 3,338 295 17,330 14,443 93,167 Substandard - Accruing 1,522 — 24,860 9,031 13,523 4,387 5,571 12,613 71,507 Substandard - Nonaccrual — — — 10,950 1,487 3,011 16,657 237 32,342 Doubtful — — — 959 — — — 409 1,368 Total commercial and industrial $ 743,751 $ 339,595 $ 226,283 $ 220,408 $ 141,239 $ 90,923 $ 98,816 $ 1,076,852 $ 2,937,867 Gross charge-offs $ — $ 983 $ 1,765 $ 16,676 $ 83 $ 1,846 $ 2,973 $ 1,474 $ 25,800 Commercial real estate: Non-owner occupied: Pass $ 161,082 $ 38,766 $ 58,184 $ 100,232 $ 103,191 $ 190,446 $ 7,616 $ 19,647 $ 679,164 Pass/Watch — — — 8,964 28,923 7,023 1,759 10,162 56,831 Special Mention — — — — — 246 — — 246 Substandard - Accruing — — — 1,366 — 214 — — 1,580 Substandard - Nonaccrual — — — — — 4,181 — — 4,181 Total non-owner occupied $ 161,082 $ 38,766 $ 58,184 $ 110,562 $ 132,114 $ 202,110 $ 9,375 $ 29,809 $ 742,002 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Owner occupied: Pass $ 101,496 $ 88,319 $ 70,010 $ 37,308 $ 77,652 $ 207,336 $ 34,639 $ 5,351 $ 622,111 Pass/Watch — 93 558 8,403 5,275 17,174 — — 31,503 Special Mention — 12,465 2,010 6,676 — 5,417 — — 26,568 Substandard - Accruing — — 9,556 — 441 9,577 — — 19,574 Substandard - Nonaccrual — — — — — 1,018 — — 1,018 Total owner occupied $ 101,496 $ 100,877 $ 82,134 $ 52,387 $ 83,368 $ 240,522 $ 34,639 $ 5,351 $ 700,774 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction & land: Pass $ 32,191 $ 46,025 $ 59,674 $ 48,126 $ 6,319 $ 7,779 $ 19,081 $ 10,372 $ 229,567 Pass/Watch 1,050 905 — 3,246 — — — — 5,201 Special Mention — 1,736 7,375 24,773 — — — — 33,884 Total construction & land $ 33,241 $ 48,666 $ 67,049 $ 76,145 $ 6,319 $ 7,779 $ 19,081 $ 10,372 $ 268,652 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Multifamily: Pass $ 35,233 $ 4,457 $ 1,309 $ 109,040 $ 29,471 $ 17,717 $ 10,460 $ — $ 207,687 Pass/Watch — — — — — 878 — — 878 Special Mention — — — — 1,803 — — — 1,803 Total multifamily $ 35,233 $ 4,457 $ 1,309 $ 109,040 $ 31,274 $ 18,595 $ 10,460 $ — $ 210,368 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 108 Table of Contents 2025 2024 2023 2022 2021 Prior Revolving Loans Converted to Term Revolving Total Total commercial real estate: Pass $ 330,002 $ 177,567 $ 189,177 $ 294,706 $ 216,633 $ 423,278 $ 71,796 $ 35,370 $ 1,738,529 Pass/Watch 1,050 998 558 20,613 34,198 25,075 1,759 10,162 94,413 Special Mention — 14,201 9,385 31,449 1,803 5,663 — — 62,501 Substandard - Accruing — — 9,556 1,366 441 9,791 — — 21,154 Substandard - Nonaccrual — — — — — 5,199 — — 5,199 Total commercial real estate: $ 331,052 $ 192,766 $ 208,676 $ 348,134 $ 253,075 $ 469,006 $ 73,555 $ 45,532 $ 1,921,796 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate: Pass $ 151,678 $ 135,326 $ 100,216 $ 502,785 $ 101,673 $ 157,612 $ 2,160 $ 16,254 $ 1,167,704 Pass/Watch 4,248 2,263 2,565 6,467 5,888 7,450 54 — 28,935 Special Mention 1,644 431 388 626 — 183 — — 3,272 Substandard - Accruing — — — — — 49 — — 49 Substandard - Nonaccrual — 568 505 12,512 378 7,005 133 25 21,126 Total residential real estate $ 157,570 $ 138,588 $ 103,674 $ 522,390 $ 107,939 $ 172,299 $ 2,347 $ 16,279 $ 1,221,086 Gross charge-offs $ — $ — $ — $ — $ — $ 74 $ — $ — $ 74 Public Finance: Pass $ 6,725 $ 30,469 $ 1,066 $ — $ 41,450 $ 418,758 $ — $ 3,114 $ 501,582 Total public finance $ 6,725 $ 30,469 $ 1,066 $ — $ 41,450 $ 418,758 $ — $ 3,114 $ 501,582 Gross charge-offs $ — $ — $ — $ — $ — $ 1,922 $ — $ — $ 1,922 Consumer: Pass $ 2,469 $ 2,121 $ 767 $ 759 $ 2,930 $ 9,535 $ 150 $ 13,026 $ 31,757 Pass/Watch 27 — 3 5 100 508 61 144 848 Substandard - Nonaccrual — — — — 2 44 — — 46 Total consumer $ 2,496 $ 2,121 $ 770 $ 764 $ 3,032 $ 10,087 $ 211 $ 13,170 $ 32,651 Gross charge-offs $ — $ 8 $ 17 $ 58 $ 42 $ 197 $ 1 $ 124 $ 447 Other: Pass $ 11,659 $ 4,945 $ — $ 7,321 $ 9,128 $ 6,545 $ — $ 14,924 $ 54,522 Pass/Watch — — — — 672 — — 3,004 3,676 Total other $ 11,659 $ 4,945 $ — $ 7,321 $ 9,800 $ 6,545 $ — $ 17,928 $ 58,198 Gross charge-offs $ — $ — $ — $ — $ — $ 743 $ — $ — $ 743 Total loans: Pass $ 1,242,545 $ 649,368 $ 460,472 $ 955,480 $ 493,700 $ 1,096,090 $ 131,169 $ 1,122,056 $ 6,150,880 Pass/Watch 7,542 29,968 14,733 53,401 41,863 35,901 4,069 23,092 210,569 Special Mention 1,644 28,580 30,343 55,318 5,141 6,141 17,330 14,443 158,940 Substandard - Accruing 1,522 — 34,416 10,397 13,964 14,227 5,571 12,613 92,710 Substandard - Nonaccrual — 568 505 23,462 1,867 15,259 16,790 262 58,713 Doubtful — — — 959 — — — 409 1,368 Total loans $ 1,253,253 $ 708,484 $ 540,469 $ 1,099,017 $ 556,535 $ 1,167,618 $ 174,929 $ 1,172,875 $ 6,673,180 Gross charge-offs $ — $ 991 $ 1,782 $ 16,734 $ 125 $ 4,782 $ 2,974 $ 1,598 $ 28,986 109 Table of Contents The following table presents the amortized cost by segment of loans by risk category and origination date as of December 31, 2024 and gross charge-offs by origination date for the year ended December 31, 2024: 2024 2023 2022 2021 2020 Prior Revolving Loans Converted to Term Revolving Total Commercial and industrial: Pass $ 515,836 $ 269,395 $ 257,423 $ 221,972 $ 67,636 $ 48,713 $ 76,821 $ 912,809 $ 2,370,605 Pass/Watch 1,469 17,131 29,927 19,200 4,373 2,343 322 19,994 94,759 Special Mention 277 13,796 22,630 3,740 345 664 1,901 3,772 47,125 Substandard - Accruing 928 6,359 27,244 22,543 2,862 3,236 6,339 17,277 86,788 Substandard - Nonaccrual — 2,235 12,689 4,100 2,895 2,459 1,584 1,707 27,669 Doubtful — — — — 415 — 230 — 645 Total commercial and industrial $ 518,510 $ 308,916 $ 349,913 $ 271,555 $ 78,526 $ 57,415 $ 87,197 $ 955,559 $ 2,627,591 Gross charge-offs $ — $ — $ — $ 19,720 $ 269 $ 2 $ 630 $ 122 $ 20,743 Commercial real estate: Non-owner occupied: Pass $ 40,289 $ 62,077 $ 101,213 $ 125,983 $ 137,151 $ 190,617 $ 7,919 $ 20,030 $ 685,279 Pass/Watch — — 1,305 23,343 851 6,016 — 17,386 48,901 Special Mention — — — 5,953 — — — — 5,953 Substandard - Accruing — 2,711 — — 542 3,399 1,493 — 8,145 Substandard - Nonaccrual — — — — — 4,350 — — 4,350 Total non-owner occupied $ 40,289 $ 64,788 $ 102,518 $ 155,279 $ 138,544 $ 204,382 $ 9,412 $ 37,416 $ 752,628 Gross charge-offs $ — $ — $ — $ — $ 270 $ 11 $ — $ — $ 281 Owner occupied: Pass $ 102,994 $ 78,583 $ 63,861 $ 88,399 $ 90,033 $ 177,733 $ 21,049 $ 4,386 $ 627,038 Pass/Watch — 13,933 875 5,515 19,266 3,773 — — 43,362 Special Mention — — 2,268 407 1,870 6,836 — — 11,381 Substandard - Accruing — 577 446 — 2,516 12,269 — — 15,808 Substandard - Nonaccrual — — — 1,167 — 2,111 — — 3,278 Total owner occupied $ 102,994 $ 93,093 $ 67,450 $ 95,488 $ 113,685 $ 202,722 $ 21,049 $ 4,386 $ 700,867 Gross charge-offs $ — $ — $ — $ — $ — $ 194 $ — $ — $ 194 Construction & land: Pass $ 15,602 $ 54,903 $ 199,051 $ 6,749 $ 3,745 $ 4,414 $ 3,436 $ 29,998 $ 317,898 Pass/Watch — — 3,351 — — 15 — — 3,366 Special Mention — — 41,413 — — — — — 41,413 Total construction & land $ 15,602 $ 54,903 $ 243,815 $ 6,749 $ 3,745 $ 4,429 $ 3,436 $ 29,998 $ 362,677 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Multifamily: Pass $ 4,408 $ 1,338 $ 36,156 $ 32,878 $ 4,866 $ 7,502 $ 5,533 $ — $ 92,681 Substandard - Nonaccrual — — 1,674 — — — — — 1,674 Total multifamily $ 4,408 $ 1,338 $ 37,830 $ 32,878 $ 4,866 $ 7,502 $ 5,533 $ — $ 94,355 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total commercial real estate: Pass $ 163,293 $ 196,901 $ 400,281 $ 254,009 $ 235,795 $ 380,266 $ 37,937 $ 54,414 $ 1,722,896 Pass/Watch — 13,933 5,531 28,858 20,117 9,804 — 17,386 95,629 Special Mention — — 43,681 6,360 1,870 6,836 — — 58,747 Substandard - Accruing — 3,288 446 — 3,058 15,668 1,493 — 23,953 Substandard - Nonaccrual — — 1,674 1,167 — 6,461 — — 9,302 Total commercial real estate: $ 163,293 $ 214,122 $ 451,613 $ 290,394 $ 260,840 $ 419,035 $ 39,430 $ 71,800 $ 1,910,527 Gross charge-offs $ — $ — $ — $ — $ 270 $ 205 $ — $ — $ 475 110 Table of Contents 2024 2023 2022 2021 2020 Prior Revolving Loans Converted to Term Revolving Total Residential real estate: Pass $ 141,409 $ 138,915 $ 549,022 $ 108,084 $ 35,720 $ 151,015 $ 2,405 $ 15,201 $ 1,141,771 Pass/Watch — 1,405 4,731 4,148 90 6,151 62 994 17,581 Special Mention — — 351 — — 601 — — 952 Substandard - Accruing — — — — — 86 — — 86 Substandard - Nonaccrual 210 — 10,667 727 2,244 6,284 59 29 20,220 Total residential real estate $ 141,619 $ 140,320 $ 564,771 $ 112,959 $ 38,054 $ 164,137 $ 2,526 $ 16,224 $ 1,180,610 Gross charge-offs $ — $ — $ — $ — $ — $ 38 $ — $ — $ 38 Public Finance: Pass $ 29,860 $ 19,986 $ — $ 42,558 $ 130,447 $ 322,066 $ — $ 2,641 $ 547,558 Substandard - Nonaccrual — — — — — 7,226 — — 7,226 Total public finance $ 29,860 $ 19,986 $ — $ 42,558 $ 130,447 $ 329,292 $ — $ 2,641 $ 554,784 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Pass $ 3,949 $ 1,610 $ 1,333 $ 3,793 $ 7,463 $ 4,695 $ 60 $ 17,465 $ 40,368 Pass/Watch — 6 37 104 182 331 1 46 707 Special Mention — — — 1 — — — — 1 Substandard - Accruing — — — — — — 4 — 4 Substandard - Nonaccrual — — — 58 4 2 — — 64 Total consumer $ 3,949 $ 1,616 $ 1,370 $ 3,956 $ 7,649 $ 5,028 $ 65 $ 17,511 $ 41,144 Gross charge-offs $ 3 $ 10 $ 6 $ 3 $ 147 $ 46 $ 15 $ 208 $ 438 Other: Pass $ 1,564 $ 6,503 $ 6,663 $ 10,620 $ 148 $ 8,339 $ 129 $ 21,984 $ 55,950 Pass/Watch — — — 3,360 — — — — 3,360 Substandard - Nonaccrual — — — — — 2,391 — — 2,391 Total other $ 1,564 $ 6,503 $ 6,663 $ 13,980 $ 148 $ 10,730 $ 129 $ 21,984 $ 61,701 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans: Pass $ 855,911 $ 633,310 $ 1,214,722 $ 641,036 $ 477,209 $ 915,094 $ 117,352 $ 1,024,514 $ 5,879,148 Pass/Watch 1,469 32,475 40,226 55,670 24,762 18,629 385 38,420 212,036 Special Mention 277 13,796 66,662 10,101 2,215 8,101 1,901 3,772 106,825 Substandard - Accruing 928 9,647 27,690 22,543 5,920 18,990 7,836 17,277 110,831 Substandard - Nonaccrual 210 2,235 25,030 6,052 5,143 24,823 1,643 1,736 66,872 Doubtful — — — — 415 — 230 — 645 Total loans $ 858,795 $ 691,463 $ 1,374,330 $ 735,402 $ 515,664 $ 985,637 $ 129,347 $ 1,085,719 $ 6,376,357 Gross charge-offs $ 3 $ 10 $ 6 $ 19,723 $ 686 $ 291 $ 645 $ 330 $ 21,694 111 Table of Contents The following table presents information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of December 31,: Collateral Dependent Loans With Allowance Collateral Dependent Loans With No Related Allowance Total Collateral Dependent Loans Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance 2025 Commercial & industrial $ 11,977 $ 5,194 $ 21,733 $ 33,710 $ 5,194 Commercial real estate: Non-owner occupied 3,617 102 564 4,181 102 Owner occupied — — 1,018 1,018 — Total commercial real estate 3,617 102 1,582 5,199 102 Residential real estate 1,976 101 19,150 21,126 101 Consumer 43 43 3 46 43 Total loans $ 17,613 $ 5,440 $ 42,468 $ 60,081 $ 5,440 2024 Commercial & industrial $ 20,890 $ 8,460 $ 7,424 $ 28,314 $ 8,460 Commercial real estate: Non-owner occupied — — 4,350 4,350 — Owner occupied — — 3,278 3,278 — Multifamily — — 1,674 1,674 — Total commercial real estate — — 9,302 9,302 — Residential real estate 1,409 154 18,811 20,220 154 Public Finance 7,226 1,460 — 7,226 1,460 Consumer 64 64 — 64 64 Other 2,391 159 — 2,391 159 Total loans $ 31,980 $ 10,297 $ 35,537 $ 67,517 $ 10,297 The allowance related to collateral dependent loans reported in the tables above includes qualitative adjustments applied to the loan portfolio that consider possible changes in circumstances that could ultimately impact credit losses and might not be reflected in historical data or forecasted data incorporated in the quantitative models. 112 Table of Contents Loan Modifications Made to Borrowers Experiencing Financial Difficulty: The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a PD/LGD model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made at the time of a modification. The loan modifications in the table below did not significantly impact our determination of the allowance for credit losses on loans during 2025. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, the Company modifies loans by providing principal forgiveness that is deemed to be uncollectible; therefore, that portion of the loan is written-off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. Additionally, the Company may allow a loan to go interest only for a specified period of time. The following tables present loan modifications for borrowers experiencing financial difficulty for the years ended December 31, 2025 and 2024, segregated by modification type, regardless of whether such modifications resulted in a new loan. For the years ended December 31,: Principal Forgiveness Payment Delay / Deferral Term Extension Interest Rate Reduction Combination Principal Forgiveness and Interest Rate Reduction Combination Term Extension and Interest Rate Reduction Combination Payment Delay / Deferral, Interest Rate Reduction, and Interest Only Period % of Total Class of Loans 2025 Commercial and industrial $ — $ 20,079 $ 18,517 $ — $ — $ — $ 341 1.3 % Commercial real estate: Owner occupied — 1,018 — 1,215 — — — 0.3 % Total commercial real estate — 1,018 — 1,215 — — — 0.1 % Residential real estate — — 1,189 — — — — 0.1 % Total loans $ — $ 21,097 $ 19,706 $ 1,215 $ — $ — $ 341 0.6 % 2024 Commercial and industrial $ 952 $ 15,661 $ 365 $ — $ 525 $ — $ 190 0.7 % Commercial real estate: Non-owner occupied — — — — — 1,936 — 0.3 % Owner occupied — 3,748 — 2,737 — — — 0.9 % Total commercial real estate — 3,748 — 2,737 — 1,936 — 0.4 % Residential real estate — — 519 — 287 — — 0.1 % Total loans $ 952 $ 19,409 $ 884 $ 2,737 $ 812 $ 1,936 $ 190 0.4 % Modifications made to the loans presented in the tables above to borrowers experiencing financial difficulty for the years ended December 31, 2025 and 2024 were short-term in nature, generally less than one year. There were commitments to lend additional funds to these borrowers of $ 3,050 at December 31, 2025. The financial effects of our loan modifications made to borrowers experiencing financial difficulty during the years ended December 31, 2025 and 2024 were not significant. 113 Table of Contents We closely monitor the performance of loan modifications made to borrowers experiencing financial difficulty to understand the effectiveness of the modification efforts. The following table depicts the performance of loan modifications made to borrowers experiencing financial difficulty that have been modified in the last 12 months: Loans Not Past Due Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans Greater than 90 Days Past Due, Still Accruing Nonaccrual Total December 31, 2025 Commercial and industrial $ 20,712 $ 65 $ — $ — $ 18,160 $ 38,937 Commercial real estate: Owner occupied 1,215 — — — 1,018 2,233 Residential real estate 426 763 — — — 1,189 Total loans $ 22,353 $ 828 $ — $ — $ 19,178 $ 42,359 NOTE 4 - Mortgage Servicing Rights The unpaid principal loan balance of our servicing portfolio is presented in the following table as of December 31,: 2025 2024 Federal National Mortgage Association $ 2,674,584 $ 2,578,587 Federal Home Loan Mortgage Corporation 2,058,343 1,876,095 Government National Mortgage Association 1,420,376 1,259,513 Federal Home Loan Bank 121,476 98,582 Other 1,012 1,169 Total $ 6,275,791 $ 5,813,946 The activity of MSRs carried at fair value is as follows for the years ended December 31,: 2025 2024 2023 Balance, beginning of year $ 84,258 $ 76,701 $ 74,097 Additions: Servicing resulting from transfers of financial assets 14,584 12,271 9,253 Changes in fair value: Due to changes in valuation inputs or assumptions used in the valuation model ( 1,760 ) 3,707 30 Changes in fair value due to pay-offs, pay-downs, and runoff ( 10,431 ) ( 8,421 ) ( 6,679 ) Balance, end of year $ 86,651 $ 84,258 $ 76,701 The following represents the weighted-average key assumptions used to estimate the fair value of MSRs as of December 31,: 2025 2024 2023 Discount rate 9.81 % 10.09 % 10.06 % Total prepayment speeds 9.04 % 7.90 % 7.79 % Cost of servicing each loan $ 91 /per loan $ 92 /per loan $ 90 /per loan 114 Table of Contents Total servicing and ancillary fees earned from the mortgage servicing portfolio is presented in the following table for the years ended December 31,: 2025 2024 2023 Servicing fees $ 17,731 $ 16,074 $ 14,913 Late and ancillary fees 936 899 761 Total $ 18,667 $ 16,973 $ 15,674 NOTE 5 - Premises and Equipment A summary of premises and equipment is as follows: Estimated Useful Lives 2025 2024 Land N/A $ 18,903 $ 18,903 Buildings and improvements 5 - 39 years 83,529 81,958 Equipment 3 - 10 years 27,945 27,220 Automobiles 5 years 212 212 Software 1 - 7 years 13,197 10,678 Construction in progress N/A 3,165 1,747 Premises and equipment 146,951 140,718 Less: Accumulated depreciation and amortization ( 65,428 ) ( 58,235 ) Premises and equipment, net $ 81,523 $ 82,483 We had depreciation and amortization expense as follows for the years ended December 31,: 2025 2024 2023 Depreciation expense $ 6,259 $ 6,057 $ 6,553 Software amortization expense $ 1,989 $ 1,318 $ 867 Total depreciation and amortization expense $ 8,248 $ 7,375 $ 7,420 115 Table of Contents NOTE 6 - Core Deposits and Other Intangible Assets Activity in our core deposits and other intangible assets was as follows as of and for the years ended December 31,: Indefinite-Lived Assets Finite Lived Assets Tradenames Core Deposits Intangibles Customer Relationships Non-compete Agreements Total 2025 Balance, beginning of year $ 1,020 $ 6,026 $ 388 $ — $ 7,434 Amortization — ( 2,196 ) ( 216 ) — ( 2,412 ) Other — — ( 39 ) — ( 39 ) Balance, end of year $ 1,020 $ 3,830 $ 133 $ — $ 4,983 2024 Balance, beginning of year $ 1,800 $ 8,621 $ 563 $ — $ 10,984 Impairment ( 780 ) — — — ( 780 ) Amortization — ( 2,595 ) ( 175 ) — ( 2,770 ) Balance, end of year $ 1,020 $ 6,026 $ 388 $ — $ 7,434 2023 Balance, beginning of year $ 1,800 $ 13,159 $ 748 $ 99 $ 15,806 Amortization — ( 4,538 ) ( 185 ) ( 99 ) ( 4,822 ) Balance, end of year $ 1,800 $ 8,621 $ 563 $ — $ 10,984 During the year ended December 31, 2024 we impaired the tradename for Guardian Mortgage related to the rebranding of our mortgage lending division as Sunflower Bank Mortgage Lending. During the years ended December 31, 2025, 2024 and 2023, there was no indication of impairment of our core deposits and other intangible assets. Future amortization expense of our core deposits and other intangible assets is as follows: 2026 $ 1,929 2027 1,142 2028 845 2029 20 2030 16 Thereafter 11 Total future amortization $ 3,963 116 Table of Contents NOTE 7 - Derivative Financial Instruments Banking Derivative Financial Instruments : We are exposed to changes in the fair value of certain of our fixed-rate assets due to changes in benchmark interest rates. We use interest rate swaps to manage our exposure to changes in fair value on these instruments attributable to changes a designated benchmark interest rate, such as SOFR. Interest rate swaps designated as fair value hedges involve the receipt of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. The carrying amount of hedged loans receivable and available-for-sale securities as of December 31, 2025 and 2024 was $ 143,896 and $ 170,166 , respectively. The cumulative amount of fair value hedge accounting adjustments included in the carrying amount of the hedged loans receivable as of December 31, 2025 and 2024 was $( 4,835 ) and $( 9,169 ), respectively. The cumulative amount of fair value hedge accounting adjustments included in the carrying amount of the hedged available-for-sale securities as of December 31, 2025 and 2024 was $( 2,443 ) and $( 4,285 ), respectively. The hedges were determined to be effective during all periods presented and we expect the hedges to remain effective during their remaining terms. Derivatives not designated as hedges are not speculative and instead result from a service we provide to certain customers. We execute interest rate swaps with banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that we execute with a third-party, such that we minimize our net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. These instruments are a component of prepaid expenses and other assets and accrued expenses and other liabilities. The components of our banking derivative financial instruments consisted of the following as of December 31,: Number of Transactions Expiration Dates Outstanding Notional Estimated Fair Value 2025 Derivative financial instruments designated as hedging instruments: Assets: Interest Rate Products 32 2028-2036 $ 149,092 $ 7,274 Derivative financial instruments not designated as hedging instruments: Assets: Interest Rate Products 64 2026-2037 $ 698,702 $ 14,659 Other 4 2028 $ 8,388 $ 7 Liabilities: Interest Rate Products 64 2026-2037 $ 698,702 $ 14,696 Other 6 2027-2029 $ 52,568 $ 41 2024 Derivative financial instruments designated as hedging instruments: Assets: Interest Rate Products 36 2029 - 2034 $ 175,967 $ 13,452 Derivative financial instruments not designated as hedging instruments: Assets: Interest Rate Products 57 2025 - 2037 $ 502,080 $ 22,062 Other 1 2025 $ 7,759 $ — Liabilities: Interest Rate Products 57 2025 - 2037 $ 502,080 $ 21,830 Other 5 2027 - 2028 $ 38,756 $ 31 117 Table of Contents We recorded gains and losses on banking derivatives assets as follows for the years ended December 31,: 2025 2024 2023 Recorded (loss) gain on banking derivative assets $ ( 1,048 ) $ 10,118 $ 4,482 Recorded gain (loss) on banking derivative liabilities $ 818 $ ( 9,962 ) $ ( 4,820 ) For the years ended December 31, 2025, 2024 and 2023 our banking derivative financial instruments not designated as hedging instruments generated fee income of $ 2,218 , $ 704 and $ 1,451 , respectively. Credit-risk-related Contingent Features : We have agreements with each of our derivative counterparties that contain a provision where if we either default or are capable of being declared in default on any of our indebtedness, then we could also be declared in default on our derivative obligations. We also have agreements with our derivative counterparties that contain a provision where if we fail to maintain our status as a well-capitalized institution, then our derivative counterparties have the right, but not the obligation to terminate existing swaps. As of December 31, 2025 and 2024, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $ 15,092 and $ 22,391 , respectively. As of December 31, 2025 and 2024, we had minimum collateral posting thresholds with our derivative counterparties and have posted collateral of $ 7,120 and $ 5,890 , respectively. If we had breached any of these provisions at December 31, 2025, we could have been required to settle our obligations under the agreements at their termination value of $ 15,092 . Mortgage Banking Derivative Financial Instruments : The components of our mortgage banking derivative financial instruments consisted of the following as of December 31,: Expiration Dates Outstanding Notional Estimated Fair Value 2025 Derivative financial instruments Assets: Interest rate lock commitments (IRLC) 2026 $ 57,215 $ 444 Liabilities: Forward MBS trades 2026 $ 116,500 $ 376 Futures 2026 $ 94,400 $ 418 2024 Derivative financial instruments Assets: Forward MBS trades 2025 $ 86,000 $ 464 Interest rate lock commitments (IRLC) 2025 $ 44,701 $ 110 Liabilities: Futures 2025 $ 44,900 $ 1,002 We recorded gains and losses on mortgage banking derivatives assets as follows for the years ended December 31,: 2025 2024 2023 Recorded gain (loss) on mortgage banking derivative assets $ 334 $ 928 $ ( 857 ) Recorded gain (loss) on mortgage banking derivative liabilities $ 1,264 $ ( 4,370 ) $ ( 642 ) 118 Table of Contents NOTE 8 - Prepaid Expenses and Other Assets The components of prepaid expenses and other assets consisted of the following as of December 31,: 2025 2024 CRA investments $ 59,564 $ 25,219 Loans subject to unilateral repurchase rights - Ginnie Mae 31,705 36,600 Right-of-use asset on leased property 27,256 22,476 Derivative financial instruments 22,384 36,088 Deferred compensation plan 18,278 15,390 Prepaid expenses 8,937 10,377 Fiserv ATM compensating balance 6,442 10,107 Escrows 4,516 5,180 Artwork 944 944 Federal and state tax receivables, net 163 2,061 SBA servicing rights — 107 Other 7,526 6,517 Total prepaid expenses and other assets $ 187,715 $ 171,066 For additional information regarding our right-of-use asset on leased property , see Note 23 - Lease Commitments . NOTE 9 - Deposits The composition of our deposits is as follows as of December 31,: 2025 2024 Noninterest-bearing deposit accounts $ 1,651,373 $ 1,541,158 Interest-bearing deposit accounts: Demand and NOW 848,661 731,404 Savings 378,631 402,338 Money market 2,937,017 2,431,785 Certificates of deposit: Less than $100 681,588 781,109 $100 through $250 282,386 388,571 Greater than $250 327,700 395,895 Total interest-bearing deposit accounts 5,455,983 5,131,102 Total deposits $ 7,107,356 $ 6,672,260 The following table summarizes the interest expense incurred on our deposits for the years ended December 31,: 2025 2024 2023 Interest-bearing deposit accounts: Demand and NOW $ 25,001 $ 23,013 $ 11,574 Savings 2,253 2,834 2,676 Money market 64,945 45,643 28,301 Certificates of deposit 53,139 79,161 58,804 Total interest-bearing deposit accounts $ 145,338 $ 150,651 $ 101,355 119 Table of Contents The remaining maturity on certificates of deposit is as follows as of December 31, 2025: 2026 $ 1,263,918 2027 16,807 2028 4,912 2029 2,807 2030 1,829 Thereafter 1,401 Total certificates of deposit $ 1,291,674 NOTE 10 - Securities Sold Under Agreements to Repurchase Information concerning securities sold under agreements to repurchase is as follows as of and for years ended December 31,: 2025 2024 Amount outstanding at period-end $ 11,160 $ 14,699 Average daily balance during the period $ 8,956 $ 15,557 Average interest rate during the period 1.66 % 1.21 % Maximum month-end balance during the period $ 11,681 $ 24,240 Weighted average interest rate at period-end 1.17 % 1.05 % At December 31, 2025 and 2024, such agreements were secured by investment and mortgage-related securities with an approximate carrying amount of $ 18,044 and $ 20,818 , respectively. Pledged securities are maintained by safekeeping agents at the direction of the Bank. Our agreements to repurchase generally mature daily and are considered to be in an overnight and continuous position. NOTE 11 - Debt FHLB advances : The following is a breakdown of our FHLB advances and other borrowings outstanding as of December 31,: 2025 2024 Amount Weighted Average Rate Amount Weighted Average Rate Variable rate line-of-credit advance $ — N/A $ — N/A Fixed rate term advance $ — N/A $ 135,000 4.60 % $ — $ 135,000 Our FHLB advances are typically considered short-term borrowings with maturities less than one year and are used to manage liquidity as needed. Maturing advances are replaced by drawing on available cash, making additional borrowings, or through increased customer deposits. The advances were collateralized by $ 2,761,116 and $ 2,733,150 of loans pledged to the FHLB as of December 31, 2025 and 2024, respectively. As of December 31, 2025 and 2024, the Bank had total borrowing capacity with the FHLB that is based on qualified collateral lending values of $ 1,491,095 and $ 1,669,888 , respectively. Our additional borrowing availability with the FHLB at December 31, 2025 was $ 1,350,157 . These borrowings can be in the form of additional term advances or a line-of-credit. FRB advances : We also had a $ 2,269,710 line-of-credit with the FRB. The agreement bears interest at the Fed Funds target rate and is secured by municipal, agency, mortgage-related and corporate securities. The entire line was available at December 31, 2025. 120 Table of Contents Other borrowings : We have lines-of-credit with certain other financial institutions totaling $ 160,000 as of December 31, 2025. No amounts were drawn on these lines-of-credit in 2025. Subordinated Debt : Subordinated Notes - 2020 : In June and August 2020, we issued a total of $ 40,000 subordinated notes. The notes pay interest at a fixed rate of 6.00 % through June 30, 2025 and subsequently, until maturity, pay interest at a floating rate of three-month term SOFR plus 5.89 % ( 10.18 % as of September 30, 2025) reset quarterly. Interest is payable on July 1 and January 1 of each year. Such notes are due on July 1, 2030, but were redeemed in full on October 1, 2025. We incurred and capitalized $ 933 of costs related to the issuance of the subordinated notes. As of and for the years ended December 31, 2025, 2024 and 2023, the amortization associated with the debt issuance costs totaled $ 514 , $ 93 and $ 93 , respectively. Subordinated Note - 2022 : On January 13, 2022, we issued a subordinated note totaling $ 25,000 . The note pays interest at a fixed rate of 3.375 % through January 15, 2027 and subsequently, until maturity, pay interest at a floating rate of three-month term SOFR plus 2.03 % reset quarterly. Interest is payable on July 15 and January 15 of each year. Such note is due on January 15, 2032. The note is not redeemable within the first five years of issuance, except under certain very limited conditions. After five years , we may redeem the note at our discretion. We incurred and capitalized $ 534 of costs related to the issuance of the subordinated note. As of and for the years ended December 31, 2025, 2024 2023, the amortization associated with the debt issuance costs totaled $ 53 for all three years, respectively. Future amortization of the debt issuance costs is expected as follows: 2026 $ 53 2027 53 2028 53 2029 53 2030 53 Thereafter 58 Total future amortization $ 323 121 Table of Contents Trust preferred securities : We have issued $ 9,279 in trust preferred securities through a special-purpose trust, New Mexico Banquest Capital Trust I (“NMBCT I”). In addition, we have issued $ 4,640 in trust preferred securities through a special purpose trust, New Mexico Banquest Capital Trust II (“NMBCT II”, and together with NMBCT I, collectively referred to as “NMBCT Trusts”). Interest is payable quarterly at a rate of three-month LIBOR (which was amended to three-month term SOFR as of June 30, 2023) plus 3.35 % ( 7.30 % and 7.94 % as of December 31, 2025 and 2024, respectively) for the trust preferred securities issued through NMBCT I and at a rate of three-month LIBOR (which was amended to three-month term SOFR as of June 30, 2023) plus 2.00 % ( 6.14 % and 6.78 % as of December 31, 2025 and 2024, respectively) for the trust preferred securities issued through NMBCT II. This subordinated debt of $ 13,919 was originally recorded at a discount of $ 4,293 . As of and for the years ended December 31, 2025, 2024 and 2023, accretion associated with the fair value discount totaled $ 272 , $ 383 and $ 286 , respectively. Future accretion of the valuation discount is expected as follows: 2026 $ 241 2027 246 2028 241 2029 240 2030 249 Thereafter 699 Total future accretion $ 1,916 The Parent Company fully and unconditionally guarantees the obligations of the NMBCT Trusts on a subordinated basis. The trust preferred securities issued through the NMBCT Trusts are mandatorily redeemable upon the maturity of the debentures on December 19, 2032 and November 23, 2034, respectively, and are optionally redeemable, in part or in whole, by the Parent Company at each quarterly interest payment date. The Parent Company owns all of the outstanding common securities of the NMBCT Trusts, which have an aggregate liquidation valuation amount of $ 419 and is recorded in prepaid expenses and other assets on the consolidated balance sheet. The NMBCT Trusts are considered variable interest entities. Since the Parent Company is not the primary beneficiary of the NMBCT Trusts, the financial statements of the NMBCT Trusts are not included in our consolidated financial statements. 122 Table of Contents NOTE 12 - Accrued Expenses and Other Liabilities The components of accrued expenses and other liabilities consisted of the following as of December 31,: 2025 2024 Salary and employee benefits $ 38,713 $ 37,266 LIHTC delayed equity contribution 36,341 10,366 Loans subject to unilateral repurchase rights - Ginnie Mae 31,705 36,600 Lease liability 29,049 24,376 Derivative financial instruments 15,531 22,863 FRB courtesy in-clearings 5,122 5,541 Property taxes payable 1,278 1,259 Allowance for credit losses on unfunded commitments 1,209 1,659 MPF servicing principal and interest payable 1,039 963 Professional fees 1,035 1,904 Other 8,908 6,719 Total accrued expenses and other liabilities $ 169,930 $ 149,516 For additional information regarding our lease liability, see Note 23 - Lease Commitments . For certain loans that we have sold to Ginnie Mae, we as the issuer have the unilateral right to repurchase without Ginnie Mae’s prior authorization any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Once we have the unilateral right to repurchase a delinquent loan, we have effectively regained control over the loan, and under U.S. GAAP, must re-recognize the loan on our consolidated balance sheet and establish a corresponding repurchase liability regardless of our intention to repurchase the loan. NOTE 13 - Earnings Per Share Basic earnings per share, excluding dilution from participating securities, is computed by dividing earnings available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock or resulted in the issuance of common stock that could then share in our earnings. The following table sets forth the computation of basic and diluted earnings per share of common stock as of and for the years ended December 31,: 2025 2024 2023 Net income applicable to common stockholders $ 97,936 $ 75,628 $ 103,533 Weighted Average Shares Weighted average common shares outstanding 27,786,887 27,433,865 24,938,359 Effect of dilutive securities Stock-based awards 462,909 633,408 448,837 Weighted average diluted common shares 28,249,796 28,067,273 25,387,196 Earnings per common share Basic earnings per common share $ 3.52 $ 2.76 $ 4.15 Effect of dilutive securities Stock-based awards ( 0.05 ) ( 0.07 ) ( 0.07 ) Diluted earnings per common share $ 3.47 $ 2.69 $ 4.08 Long-term incentive plan grants for ( 43,789 ) shares of common stock were not considered in computing diluted earnings per share for the year ended December 31, 2025, because they were antidilutive. There were no antidilutive shares for the years ended December 31, 2024 and 2023, respectively. 123 Table of Contents NOTE 14 - Stockholders’ Equity As of December 31, 2025 and 2024, the Company had 10,000,000 shares of preferred stock authorized, $ 0.0001 par value, of which none were issued or outstanding, respectively. As of December 31, 2025 and 2024, the Company had 50,000,000 shares of common stock authorized, $ 0.0001 par value, of which 27,887,337 and 27,709,679 shares were issued and outstanding, respectively. Dividends : Dividends paid by the Company, if any, are substantially provided from Bank dividends. 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. Dividends received from subsidiaries were as follows for the years ended December 31,: 2025 2024 2023 Dividends from the Bank $ 7,600 $ — $ 26,000 Dividends from Sunflower Wealth Advisors, LLC 165 720 595 The Parent Company did not declare or pay any dividend to shareholder in 2025, 2024 or 2023. Equity Incentive Plans : 2017 Equity Incentive Plan The 2017 Equity Incentive Plan (the “2017 Plan”) provides for the grant of stock options, stock appreciation rights, restricted stock and other stock awards to its employees, directors and consultants for up to 1,977,292 shares of FirstSun common stock in the aggregate. Option awards are generally granted with an exercise price of not less than the fair value of a share of the Company’s common stock at the date of grant, they vest 25 % on the first, second, third and fourth anniversaries following the date of grant and have 10 year terms. The fair value of each stock option award is estimated on the date of grant utilizing the Black-Scholes option pricing model. Expected volatility was determined based on the median historical volatility of 25 to 30 comparable companies that were publicly traded for a period commensurate with the expected term of the options. The expected term of the options was estimated to be the average of the vesting term and time to expiration. The risk-free rate for the expected term of the stock options was based on the U.S. Treasury yield curve in effect at the date of grant. 124 Table of Contents The following table presents stock options outstanding as of and for the year ended December 31,: Shares Weighted-Average Exercise Price, per Share Weighted-Average Remaining Term (years) 2025 Outstanding, beginning of year 882,570 $ 20.39 Exercised ( 183,741 ) 20.95 Outstanding, vested, and exercisable, end of year 698,829 $ 20.25 2.22 2024 Outstanding, beginning of year 1,245,000 $ 20.25 Exercised ( 362,430 ) 19.92 Outstanding, end of year 882,570 $ 20.39 3.37 Options vested or expected to vest, end of year 882,570 $ 20.39 Options vested and exercisable, end of year 876,095 $ 20.30 3.34 At December 31, 2025, there was no unrecognized compensation cost related to non-vested stock options. At December 31, 2025 and 2024, the intrinsic value of the stock options was $ 11,918 and $ 17,439 , respectively. 2021 Equity Incentive Plan The FirstSun Capital Bancorp 2021 Equity Incentive Plan (the “2021 Plan”) provides for the grant of stock options, stock appreciation rights, restricted stock and other stock awards to its employees, directors and consultants for up to 2,476,571 shares of FirstSun common stock in the aggregate. Additionally, we established the FirstSun Capital Bancorp Long-Term Incentive Plan (“LTIP”), which became effective April 1, 2022. The LTIP is intended to qualify as a “top-hat” plan under ERISA that is unfunded and provides benefits only to a select group of management or highly compensated employees of FirstSun or the Bank. Restricted stock and restricted stock units: The following table presents non-vested restricted stock units outstanding with only a service condition as of and for the years ended December 31,: Shares Weighted-Average Issuance Price, per Share Weighted-Average Remaining Term (years) 2025 Outstanding, beginning of year 11,739 $ 35.75 Issued 133,129 36.24 Vested, restriction released ( 26,463 ) 37.39 Forfeited ( 3,946 ) 35.80 Outstanding, end of year 114,459 $ 35.94 1.74 2024 Outstanding, beginning of year 15,007 $ 26.99 Issued 11,739 35.75 Vested, restriction released ( 14,266 ) 26.99 Forfeited ( 741 ) 26.99 Outstanding, end of year 11,739 $ 35.75 0.25 At December 31, 2025, there was $ 2,812 of total unrecognized compensation cost related to the non-vested restricted stock. 125 Table of Contents Performance share units: We have issued performance share units to receive shares of FirstSun common stock at the end of the performance period, based on certain market or bank performance metrics. The market-based awards granted during 2025 utilized a Monte Carlo simulation to determine the grant-date fair value. The assumptions used in the simulation were as follows: December 31, 2025 Simulation Period (years) 2.75 Risk-free rate 3.86 % Annualized volatility 29.70 % We determine the shares to be issued based on actual and forecast results during the requisite performance period to determine the probability the market or performance conditions will be achieved. Performance share units outstanding at December 31, 2025 are as follows: December 31, 2025 Grant Date End of Performance Period Conditions Target Units Probable Units Unrecognized Compensation Cost April 2025 April 2028 Market 64,290 — $ 1,749 April 2024 April 2027 Performance 84,150 58,905 1,245 April 2023 April 2026 Performance 87,590 65,693 153 236,030 124,598 $ 3,147 The following table presents performance share unit activity at target for the years ended December 31,: Performance Share Units at Target Weighted-Average Grant Date Price, per Unit Weighted-Average Remaining Term (years) 2025 Outstanding, beginning of year 261,621 $ 32.86 Issued 64,290 36.28 Vested ( 71,262 ) 35.68 Forfeited ( 18,619 ) 32.98 Outstanding, end of year 236,030 $ 32.93 1.15 2024 Outstanding, beginning of year 176,493 $ 31.43 Issued 93,868 35.50 Vested ( 3,638 ) 33.04 Forfeited ( 5,102 ) 31.87 Outstanding, end of year 261,621 $ 32.86 1.34 Actual achieved performance of vested performance share units resulted in the issuance of 42,403 and 2,405 shares of common stock for the years ended December 31, 2025 and 2024, respectively. 126 Table of Contents Acquired Equity Incentive Plans In conjunction with the Pioneer merger, we assumed certain options that had been granted under Pioneer’s option plans. All assumed options were fully vested and exercisable. No further options will be granted under the Pioneer plans. The following table presents option activity for the years ended December 31,: Shares Weighted-Average Exercise Price, per Share Weighted-Average Remaining Term (years) 2025 Outstanding, beginning of year 74,919 $ 22.76 Exercised ( 64,479 ) 22.45 Outstanding, vested, and exercisable, end of year 10,440 $ 24.66 3.49 2024 Outstanding, beginning of year 121,901 $ 22.76 Exercised ( 46,460 ) 22.83 Forfeited ( 522 ) 17.24 Outstanding, vested, and exercisable, end of year 74,919 $ 22.76 3.02 At December 31, 2025 and 2024, the intrinsic value of the stock options was $ 152 and $ 1,243 , respectively. For the years ended December 31, 2025, 2024 and 2023, we recorded total compensation cost from the Equity Incentive Plans of $ 3,536 , $ 2,375 and $ 2,127 , respectively. NOTE 15 - Income Taxes The components of income tax expense were as follows for the year ended December 31, 2025: 2025 Federal: Current $ 18,780 Deferred 2,291 Federal income tax expense 21,071 State: Current 3,421 Deferred 468 State income tax expense 3,889 Total income tax expense $ 24,960 For the year ended December 31, 2025, we have no current or deferred foreign income tax expense. The provision for income tax is summarized as follows for the years ended December 31,: 2024 2023 Current $ 16,137 $ 24,938 Deferred 3,347 3,012 Federal income tax expense $ 19,484 $ 27,950 127 Table of Contents The following tables present a reconciliation of the statutory federal income tax rate to the effective income tax rate for the years ended December 31,: 2025 Amount Percent U.S. federal statutory income tax $ 25,808 21.0 % State and local income taxes, net of federal benefits 1 3,170 2.6 % Tax credits: Proportional Amortization of LIHTC Credits 2 1,072 0.9 % Nontaxable or nondeductible items: Tax Exempt Interest ( 3,867 ) ( 3.1 ) % Share-based payment awards 133 0.1 % Non-deductible professional fees 427 0.3 % Other adjustments: Permanent RTP 3 ( 1,208 ) ( 1.0 ) % Other ( 575 ) ( 0.5 ) % Income tax expense $ 24,960 20.3 % 1 The majority of state and local income taxes are from Colorado, Illinois, Kansas, Texas and Arizona. 2 LIHTC tax credits are net of amortization and other income tax benefits. 3 2024 Provision to Return adjustment. 2024 2023 Amount Percent Amount Percent Taxes at statutory federal income tax rate $ 19,974 21.0 % $ 27,611 21.0 % Tax effect from: State income taxes, net of federal benefits 4,012 4.2 % 3,718 2.9 % Tax exempt income ( 3,827 ) ( 4.0 ) % ( 4,017 ) ( 3.1 ) % Net increase in cash surrender value of BOLI ( 588 ) ( 0.6 ) % ( 405 ) ( 0.3 ) % Federal tax credits ( 380 ) ( 0.4 ) % — — % Executive compensation 107 0.1 % 301 0.2 % Other 186 0.2 % 742 0.6 % Income tax provision $ 19,484 20.5 % $ 27,950 21.3 % The following table presents income taxes paid for the year ended December 31, 2025: Federal $ 12,691 State: Texas 640 Kansas 416 California 332 Arizona 227 Other States 1,401 Federal and state income taxes paid $ 15,707 128 Table of Contents The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows at December 31,: 2025 2024 Deferred tax assets: Acquired federal and state net operating loss $ 18,421 $ 20,620 Allowance for credit losses 19,907 20,794 Unrealized loss on securities 8,396 12,203 Deferred compensation 4,324 3,679 Fair value adjustments on securities 2,185 2,449 Deferred loan fees 2,011 877 Accrued expenses 1,534 1,615 Share-based compensation 1,143 1,374 Fair value adjustments on loans 759 1,073 Lease liability 420 448 Unfunded commitment liability 283 — Fair value adjustments on deposits — 19 Other 655 1,682 Total deferred tax assets 60,038 66,833 Deferred tax liabilities: Mortgage servicing rights 20,196 19,623 Prepaid expenses 1,601 1,661 Fair value adjustments on intangible assets 1,562 2,098 Premises and equipment 1,002 978 Fair value adjustments on debt 433 516 FHLB stock 100 100 Partnership investment — 485 Other 271 177 Total deferred tax liabilities 25,165 25,638 Total deferred tax assets, net $ 34,873 $ 41,195 As of December 31, 2025, we had net operating loss carryforwards of approximately $ 86,648 , which begin to expire between 2030 and 2037, and operating loss carryforwards generated after 2017 of $ 341 that do not expire. As of December 31, 2025, we had net operating loss carryforwards for state tax purposes of approximately $ 142 , which will begin to expire in 2033. Utilization of the net operating losses may be subject to a substantial annual limitation due to the ownership change limitations set forth in Internal Revenue Code Section 382 and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss carryforwards before utilization. We believe that all of the net operating loss carryforwards will be used prior to expiration. We evaluate uncertain tax positions at the end of each reporting period. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefit recognized in the financial statements from any such position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 31, 2025 and 2024, we concluded there were no material uncertain tax positions. 129 Table of Contents NOTE 16 - Other Noninterest Expenses Significant components of other noninterest expenses are as follows for the years ended December 31,: 2025 2024 2023 Data processing expenses $ 18,405 $ 19,437 $ 14,933 Professional fees 5,815 6,330 7,663 Insurance expenses 5,705 5,965 6,422 Loan appraisal, servicing, and collection expenses 5,232 4,999 4,179 Office expenses 4,653 4,632 4,698 Travel and entertainment 4,528 4,351 3,873 Deposit expenses and other operational losses 3,203 2,672 1,894 Advertising and marketing expenses 2,846 3,259 2,810 Interchange expenses 1,798 1,587 1,495 Other real estate owned expenses 1,030 323 545 Other 3,336 2,491 2,802 Total other noninterest expenses $ 56,551 $ 56,046 $ 51,314 NOTE 17 - Regulatory Capital Matters Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel III rules, the Parent Company and the Bank must hold a 2.50% capital conservation buffer above the adequately capitalized risk-based capital ratios. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. As of December 31, 2025, both the Parent Company and the Bank met all capital adequacy requirements to which they were subject. Prompt corrective action regulations provide five classifications: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of December 31, 2025 and 2024, the most recent regulatory notifications categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category. 130 Table of Contents Actual and required capital amounts for the Parent Company are as follows as of December 31,: Actual For Capital Adequacy Purposes To be Well- Capitalized under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio 2025 Total risk-based capital to risk-weighted assets: $ 1,187,736 15.73 % $ 604,008 8.00 % N/A N/A Tier 1 risk-based capital to risk-weighted assets: $ 1,065,783 14.12 % $ 453,006 6.00 % N/A N/A Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 1,065,783 14.12 % $ 339,755 4.50 % N/A N/A Tier 1 leverage capital to average assets: $ 1,065,783 12.75 % $ 334,328 4.00 % N/A N/A 2024 Total risk-based capital to risk-weighted assets: $ 1,128,334 15.42 % $ 585,567 8.00 % N/A N/A Tier 1 risk-based capital to risk-weighted assets: $ 964,517 13.18 % $ 439,175 6.00 % N/A N/A Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 964,517 13.18 % $ 329,381 4.50 % N/A N/A Tier 1 leverage capital to average assets: $ 964,517 12.11 % $ 318,646 4.00 % N/A N/A Actual and required capital amounts for the Bank are as follows as of December 31,: Actual For Capital Adequacy Purposes To be Well- Capitalized under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio 2025 Total risk-based capital to risk-weighted assets: $ 1,119,717 14.85 % $ 603,066 8.00 % $ 753,832 10.00 % Tier 1 risk-based capital to risk-weighted assets: $ 1,034,444 13.72 % $ 452,299 6.00 % $ 603,066 8.00 % Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 1,034,444 13.72 % $ 339,225 4.50 % $ 489,991 6.50 % Tier 1 leverage capital to average assets: $ 1,034,444 12.38 % $ 334,290 4.00 % $ 417,862 5.00 % 2024 Total risk-based capital to risk-weighted assets: $ 1,018,866 13.94 % $ 584,594 8.00 % $ 730,742 10.00 % Tier 1 risk-based capital to risk-weighted assets: $ 930,890 12.74 % $ 438,445 6.00 % $ 584,594 8.00 % Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 930,890 12.74 % $ 328,834 4.50 % $ 474,982 6.50 % Tier 1 leverage capital to average assets: $ 930,890 11.69 % $ 318,647 4.00 % $ 398,308 5.00 % 131 Table of Contents NOTE 18 - Transactions with Related Parties We have and may be expected to have in the future, banking transactions in the ordinary course of business with directors, significant stockholders, principal officers and their immediate families and affiliated companies in which they are principal stockholders (commonly referred to as related parties). Loans: As of December 31, 2025 and 2024, outstanding loans with related parties totaled $ 1,605 and $ 2,591 , respectively. As of December 31, 2025, there were unused lines of credit with directors or officers totaling $ 708 . Deposits: As of December 31, 2025 and 2024, deposits with related parties totaled $ 2,669 and $ 5,410 , respectively. Director Fees : Fees paid to non-employee directors of the Company and the Bank for the years ended December 31, 2025, 2024 and 2023 totaled $ 471 , $ 531 and $ 535 , respectively. We also grant our non-employee directors annual equity awards in the form of restricted stock units. These awards vest on the first anniversary of the grant date. Fair value of the equity awards as of grant date for the years ended December 31, 2025, 2024 and 2023 totaled $ 351 , $ 420 and $ 405 , respectively. NOTE 19 - Fair Value Measurements Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A description of the valuation methodologies used for the assets measured at fair value on a recurring basis, as well as the general classification of such assets pursuant to the fair value hierarchy, is set forth below. Available-for-sale securities - Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would include highly liquid exchange traded equities and mutual funds. If quoted market prices are not available, then fair values are estimated by using pricing models or quoted prices of securities with similar characteristics. Level 2 securities include U.S. treasury and agency securities, mortgage-related agency securities, mortgage-related private label securities, obligations of states and political subdivisions and asset backed and other securities. Loans held-for-sale - Mortgage loans originated and intended for sale in the secondary market are classified as mortgage loans held-for-sale and recorded at fair value. The changes in fair value of mortgage loans held-for-sale are measured and recorded as a component of mortgage banking services, net, in our consolidated statements of income and comprehensive income. Since estimated fair value is based on sale, exchange, or dealer market prices, these assets are classified within Level 2 of the valuation hierarchy. Mortgage servicing rights - We estimate the fair value of our MSRs using a process that combines the use of a discounted cash flow model and analysis of current market data to arrive at an estimate of fair value. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds, discount rates, and cost to service. These assumptions are generated and applied based on collateral stratifications including product type, remittance type, geography, delinquency, and coupon dispersion. These assumptions require the use of judgment by management and can have a significant impact on the fair value of the MSRs. We use a third-party consulting firm to assist us with the valuation of MSRs. Because of the nature of the valuation inputs, we classify these valuations as Level 3 in the fair value disclosures. For further details on our level 3 inputs related to MSRs, see Note 4 - Mortgage Servicing Rights . 132 Table of Contents Derivative financial instruments : Banking Activities - Interest rate swaps are valued based on quoted prices for similar assets in an active market with inputs that are observable. These instruments are a component of prepaid expenses and other assets and accrued expenses and other liabilities. The initial and subsequent changes in fair value of the interest rate swaps and the economic hedge derivatives are a component of other noninterest income. Mortgage Banking Activities - The estimated fair value of forward mortgage sales of mortgage-backed securities and forward sale commitments are based on exchange prices or the dealer market price and are recorded as a component of prepaid expenses and other assets, mortgage loans held-for-sale, and/or accrued expenses and other liabilities on the consolidated balance sheet. The initial and subsequent changes in value on forward sales of mortgage-based securities and forward sale commitments are a component of gain on mortgage loans held-for-sale. The estimated fair value of IRLCs is based on the fair value of the related mortgage loans which is based on observable market data for similar loan product type. We adjust the outstanding IRLCs with prospective borrowers based on an expectation that it will be exercised, and the loan will be funded. The initial and subsequent changes in the value of IRLCs are a component of gain on mortgage loans held-for-sale. Derivative financial instruments are classified within Level 2 of the valuation hierarchy. The following table sets forth our assets and liabilities measured at fair value on a recurring basis as of December 31,: Level 1 Level 2 Level 3 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Total Estimated Fair Value 2025 Available-for-sale securities $ 33,270 $ 435,700 $ — $ 468,970 Loans held-for-sale — 100,539 — 100,539 Mortgage servicing rights — — 86,651 86,651 Derivative financial instruments - assets — 22,384 — 22,384 Derivative financial instruments - liabilities — ( 15,531 ) — ( 15,531 ) Total $ 33,270 $ 543,092 $ 86,651 $ 663,013 2024 Available-for-sale securities $ 31,730 $ 437,346 $ — $ 469,076 Loans held-for-sale — 61,825 — 61,825 Mortgage servicing rights — — 84,258 84,258 Derivative financial instruments - assets — 36,088 — 36,088 Derivative financial instruments - liabilities — ( 22,863 ) — ( 22,863 ) Total $ 31,730 $ 512,396 $ 84,258 $ 628,384 There were no transfers between Level 2 and Level 3 during the years ended December 31, 2025 and 2024. The following table presents a reconciliation for our Level 3 assets measured at fair value on a recurring basis as of and for the years ended December 31,: 2025 2024 2023 Balance, beginning of year $ 84,258 $ 76,701 $ 74,097 Total fair value adjustments included in earnings ( 12,191 ) ( 4,714 ) ( 6,649 ) Purchases, issuances, sales and settlements: Issuances 14,584 12,271 9,253 Balance, end of year $ 86,651 $ 84,258 $ 76,701 133 Table of Contents Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are 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). Assets and liabilities measured at fair value on a nonrecurring basis include the following: Collateral dependent loans - Collateral dependent loans are financial assets. Loan impairment is reported when full payment under the loan terms is not expected. Fair value is generally based on recent third-party appraisals which are updated on a periodic basis. Loans are carried at the fair value of collateral, less cost to sell, if the loan is collateral dependent. A portion of the allowance for credit loss is allocated to the loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for credit loss to require an increase, such increase is reported as a component of the provision for credit losses. Credit losses are charged against the allowance for credit losses when management believes the uncollectibility of a loan is confirmed. When loans are partially charged off, the resulting valuation would be considered Level 3, consisting of appraisals of underlying collateral. Other Real Estate Owned and Foreclosed Assets - Other real estate owned are non-financial assets and are valued at the time the property is acquired and initially recorded at fair value less costs to sell, establishing a new cost basis. Fair value is generally based on recent third-party real estate appraisals which are updated on a periodic basis. These appraisals may take a single valuation approach using the comparable sales method or use a combination of approaches including the income approach. Adjustments are routinely made by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. The following table sets forth our assets and liabilities that were measured at fair value on a non-recurring basis as of December 31,: Level 3 2025 2024 Collateral dependent loans: Commercial and industrial $ 6,783 $ 12,430 Commercial real estate 3,515 — Residential real estate 1,875 1,255 Public finance — 5,766 Other — 2,232 Total collateral dependent loans $ 12,173 $ 21,683 Other real estate owned and foreclosed assets, net: Commercial real estate $ 8,960 $ 2,911 Residential real estate 880 2,227 Other 1,674 — Total other real estate owned and foreclosed assets, net: $ 11,514 $ 5,138 The fair value of other real estate owned and foreclosed assets in the table above utilizes the market approach valuation technique, with discount adjustments for differences between comparable sales. 134 Table of Contents Fair value of financial instruments not carried at fair value: The carrying amounts and estimated fair values of financial instruments not carried at fair value are as follows as of December 31,: Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 2025 Assets: Cash and cash equivalents $ 652,592 $ 652,592 $ 652,592 $ — $ — Securities held-to-maturity 33,839 29,446 — 29,446 — Loans (excluding collateral dependent loans) 6,613,099 6,544,724 — — 6,544,724 Restricted equity securities 24,775 24,775 — 24,775 — Accrued interest receivable 32,255 32,255 — 2,224 30,031 Liabilities: Deposits (excluding demand deposits) $ 4,645,527 $ 4,602,421 $ 3,315,648 $ 1,286,773 $ — Securities sold under agreements to repurchase 11,160 11,160 — 11,160 — FHLB advances — — — — — Subordinated debt, net 36,680 35,981 — — 35,981 Accrued interest payable 6,680 6,680 — 6,680 — 2024 Assets: Cash and cash equivalents $ 615,917 $ 615,917 $ 615,917 $ — $ — Securities held-to-maturity 35,242 29,563 — 29,563 — Loans (excluding collateral dependent loans) 6,344,377 6,191,461 — — 6,191,461 Restricted equity securities 28,917 28,917 — 28,917 — Accrued interest receivable 32,102 32,102 — 2,131 29,971 Liabilities: Deposits (excluding demand deposits) $ 4,445,237 $ 4,436,305 $ 2,879,662 $ 1,556,643 $ — Securities sold under agreements to repurchase 14,699 14,699 — 14,699 — FHLB advances 135,000 135,000 — 135,000 — Subordinated debt, net 75,841 73,326 — — 73,326 Accrued interest payable 8,705 8,705 — 8,705 — 135 Table of Contents NOTE 20 - Parent Company Only Condensed Financial Information The following are the unconsolidated financial statements for the Parent Company on a stand-alone basis. These condensed financial statements should be read in conjunction with the Consolidated Financial Statements and accompanying Notes. The Parent Company's principal sources of funds are cash dividends paid by the Bank to the Parent Company. Condensed Balance Sheets As of December 31, 2025 2024 Assets Cash and cash equivalents $ 66,728 $ 108,999 Deferred tax assets 11,241 11,111 Prepaid expenses and other assets 20,814 17,387 Investment in and advances to subsidiaries 1,111,308 997,329 Total assets $ 1,210,091 $ 1,134,826 Liabilities Subordinated debt, net $ 36,680 $ 75,841 Accrued expenses and other liabilities 20,055 17,619 Total liabilities 56,735 93,460 Total stockholders’ equity 1,153,356 1,041,366 Total liabilities and stockholders’ equity $ 1,210,091 $ 1,134,826 Condensed Statements of Income and Comprehensive Income For the years ended December 31, 2025 2024 2023 Income: Dividends received from subsidiaries $ 7,765 $ 720 $ 26,595 Interest income 31 35 36 Total income 7,796 755 26,631 Expense: Interest expense 4,525 4,951 5,049 Salary and employee benefits 2,437 1,854 1,888 Occupancy, equipment and software 293 240 189 Merger related expenses 2,234 4,537 — Other noninterest expenses, net 1,903 1,289 2,039 Total expenses 11,392 12,871 9,165 (Loss) income before income taxes and undistributed earnings from subsidiaries ( 3,596 ) ( 12,116 ) 17,466 Equity in undistributed earnings from subsidiaries 99,213 84,609 83,837 Income before income taxes 95,617 72,493 101,303 Benefit from income taxes ( 2,319 ) ( 3,135 ) ( 2,230 ) Net income $ 97,936 $ 75,628 $ 103,533 Other comprehensive income, net 11,762 3,895 976 Comprehensive income $ 109,698 $ 79,523 $ 104,509 136 Table of Contents Condensed Statements of Cash Flows For the years ended December 31, 2025 2024 2023 Cash flows from operating activities: Net income $ 97,936 $ 75,628 $ 103,533 Adjustments to reconcile income to net cash (used in) provided by operating activities: Amortization and accretion 839 529 533 Equity in undistributed income of subsidiaries ( 99,213 ) ( 84,609 ) ( 83,837 ) Changes in operating assets and liabilities: Other assets ( 3,577 ) ( 1,293 ) ( 419 ) Other liabilities 2,967 2,923 2,911 Net cash (used in) provided by operating activities ( 1,048 ) ( 6,822 ) 22,721 Cash flows from investing activities: Proceeds from sale of other investments 21 — — Cash paid to acquire FEIF Capital Partners, LLC — — ( 150 ) Contributions to subsidiaries — ( 500 ) ( 210 ) Net cash provided by (used in) investing activities 21 ( 500 ) ( 360 ) Cash flows from financing activities: Repayments of convertible notes payable — — ( 5,456 ) Repayments of subordinated debt ( 40,000 ) — — Proceeds from issuance of common stock, net of issuance costs ( 1,244 ) 82,271 ( 167 ) Net cash (used in) provided by financing activities ( 41,244 ) 82,271 ( 5,623 ) Net (decrease) increase in cash and cash equivalents ( 42,271 ) 74,949 16,738 Cash and cash equivalents, beginning of year 108,999 34,050 17,312 Cash and cash equivalents, end of year $ 66,728 $ 108,999 $ 34,050 137 Table of Contents NOTE 21 - Segment Information The Company’s Chief Executive Officer has been identified as the chief operating decision maker (“CODM”), who oversees the operations conducted through our two primary operating segments: Banking and Mortgage Operations. Corporate represents costs not allocated to the operating segments, including those of FirstSun and our non-bank subsidiaries. The Banking segment originates loans and provides deposits and fee-based services to consumer, business, and mortgage lending customers. Products offered include a full range of commercial and consumer banking and financial services. The interest income on loans held-for-investment is recognized in the Banking segment, excluding newly originated residential first mortgages within the Mortgage Operations segment. The Mortgage Operations segment originates, sells, services, and manages market risk from changes in interest rates on one-to-four family residential mortgage loans to sell or hold on our balance sheet. Loans originated-to-sell comprise the majority of the lending activity. The Mortgage Operations segment recognizes interest income on loans that are held-for-sale and newly originated residential mortgages held-for-investment, the gains from one to four family residential mortgage sales, and revenue for servicing loans and other ancillary fees following a sales transaction. Revenue from servicing activities is earned on a contractual fee basis. The Mortgage Operations segment services loans for the held-for-investment portfolio, for which it earns revenue via an intercompany service fee allocation which appears as a cost to Banking in mortgage fees. Forward traded loan purchases and sales settlements as well as mortgage servicing rights and related fair value adjustments are reported in this segment. Corporate represents miscellaneous other expenses of a corporate nature as well as revenue and expenses not directly assigned or allocated to the Banking or Mortgage Operations segments. The majority of executive management’s time is spent managing operating segments; related costs have been allocated between the operating segments and Corporate. Allocations of expenses to the operating segments are based on estimated uses of those services. We use a funds transfer pricing process to allocate costs, capital and resources to each operating segment. This allows us to identify the cost of funds within each segment, measure the profitability of each segment by relating costs to revenue, and to evaluate each operating segment’s impact on consolidated earnings. Our CODM reviews net income to budgeted net income to assess segment performance on a monthly basis and to make decisions about allocating capital and personnel to the segments. 138 Table of Contents Significant segment totals, including significant expense categories provided to the CODM are reconciled to the financial statements as follows for the year ended December 31,: Banking Mortgage Operations Corporate Total Segments 2025 Summary of Operations Interest income $ 420,276 $ 47,462 $ 31 $ 467,769 Interest expense 123,245 22,608 4,525 150,378 Net interest income (expense) 297,031 24,854 ( 4,494 ) 317,391 Provision for (benefit from) credit losses 26,727 ( 2,127 ) — 24,600 Noninterest income: Deposit account service fees 8,321 — — 8,321 Treasury management service fees 17,473 — — 17,473 Credit and debit card fees 10,725 4 — 10,729 Trust and investment advisory fees 5,945 — — 5,945 Mortgage banking services, net ( 2,549 ) 49,621 — 47,072 Other noninterest income 12,384 ( 45 ) — 12,339 Total noninterest income 52,299 49,580 — 101,879 Noninterest expense: Salary and employee benefits 131,548 37,839 2,437 171,824 Occupancy, equipment and software 34,735 3,217 292 38,244 Amortization and impairment of intangible assets 2,412 — — 2,412 Merger related expenses 509 — 2,234 2,743 Other noninterest expenses 36,777 17,871 1,903 56,551 Total noninterest expense 205,981 58,927 6,866 271,774 Income (loss) before income taxes $ 116,622 $ 17,634 $ ( 11,360 ) $ 122,896 Other Information Depreciation expense and amortization on premises and equipment $ 8,099 $ 149 $ — $ 8,248 Identifiable assets $ 7,181,077 $ 1,205,301 $ 98,784 $ 8,485,162 139 Table of Contents Banking Mortgage Operations Corporate Total Segments 2024 Summary of Operations Interest income $ 420,386 $ 39,119 $ 35 $ 459,540 Interest expense 137,147 20,532 4,951 162,630 Net interest income (expense) 283,239 18,587 ( 4,916 ) 296,910 Provision for (benefit from) credit losses 28,415 ( 865 ) — 27,550 Noninterest income: Deposit account service fees 9,499 ( 4 ) — 9,495 Treasury management service fees 14,829 — — 14,829 Credit and debit card fees 11,148 5 — 11,153 Trust and investment advisory fees 5,787 — — 5,787 Mortgage banking services, net ( 2,405 ) 41,419 — 39,014 Other noninterest income 9,514 — — 9,514 Total noninterest income 48,372 41,420 — 89,792 Noninterest expense: Salary and employee benefits 121,492 31,639 1,854 154,985 Occupancy, equipment and software 32,864 3,179 239 36,282 Amortization of intangible assets 3,549 — — 3,549 Merger related expenses 8,641 — 4,537 13,178 Other noninterest expenses 38,363 16,393 1,290 56,046 Total noninterest expense 204,909 51,211 7,920 264,040 Income (loss) before income taxes $ 98,287 $ 9,661 $ ( 12,836 ) $ 95,112 Other Information Depreciation expense and amortization on premises and equipment $ 7,189 $ 186 $ — $ 7,375 Identifiable assets $ 6,812,204 $ 1,147,686 $ 137,497 $ 8,097,387 140 Table of Contents Banking Mortgage Operations Corporate Total Segments 2023 Summary of Operations Interest income $ 386,535 $ 27,113 $ 36 $ 413,684 Interest expense 93,962 21,242 5,049 120,253 Net interest income (expense) 292,573 5,871 ( 5,013 ) 293,431 Provision for credit losses 15,790 2,457 — 18,247 Noninterest income: Deposit account service fees 9,940 — — 9,940 Treasury management service fees 11,724 — — 11,724 Credit and debit card fees 11,681 — — 11,681 Trust and investment advisory fees 5,693 — — 5,693 Mortgage banking services, net ( 1,676 ) 33,060 — 31,384 Other noninterest income 8,670 — — 8,670 Total noninterest income 46,032 33,060 — 79,092 Noninterest expense: Salary and employee benefits 106,030 25,313 1,888 133,231 Occupancy, equipment and software 30,461 2,775 190 33,426 Amortization of intangible assets 4,822 — — 4,822 Merger related expenses — — — — Other noninterest expenses 34,343 14,933 2,038 51,314 Total noninterest expense 175,656 43,021 4,116 222,793 Income (loss) before income taxes $ 147,159 $ ( 6,547 ) $ ( 9,129 ) $ 131,483 Other Information Depreciation expense and amortization on premises and equipment $ 7,187 $ 233 $ — $ 7,420 Identifiable assets $ 6,907,741 $ 910,728 $ 61,255 $ 7,879,724 141 Table of Contents NOTE 22 - Commitments and Contingencies Commitments : 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 loan commitments, standby letters of credit, and documentary letters of credit and involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the financial statements. Our exposure to credit loss in the event of nonperformance by the other party of these loan commitments and standby letters of credit is represented by the contractual amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet financial instruments. Undistributed portion of committed loans and unused lines of credit : Loan commitments are agreements to lend to a customer as long as there is no customer violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require a payment of a fee. As of December 31, 2025 and 2024, commitments included the funding of fixed-rate loans totaling $ 130,867 and $ 184,780 and variable-rate loans totaling $ 1,372,506 and $ 1,615,505 , respectively. The fixed-rate loan commitments have interest rates ranging from 1.00 % to 18.00 % at December 31, 2025 and 2024, respectively, and maturities ranging from 1 month to 17 years at December 31, 2025 and from 1 month to 18 years at December 31, 2024. Standby letters of credit : Standby letters of credit are conditional commitments to guarantee the performance of a customer to a third-party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Since many loan commitments and letters of credit expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on our credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, owner-occupied real estate, and/or income-producing commercial properties. As of December 31, 2025 and 2024, our standby letters of credit commitment totaled $ 39,356 and $ 39,586 , respectively. MPF Master Commitments : The Bank has executed MPF Master Commitments (Commitments) with the FHLB to deliver mortgage loans and to guarantee the payment of any realized losses that exceed the FHLB’s first loss account for mortgages delivered under the Commitments. The Bank receives credit enhancement fees from the FHLB for providing this guarantee and continuing to manage the credit risk of the MPF Program mortgage loans. As of December 31, 2025 and 2024, the Bank considered the amount of any of its liability for the present value of the credit enhancement fees less any expected losses in the mortgages delivered under the Commitments to be immaterial, and had not recorded a liability and offsetting receivable. As of December 31, 2025 and 2024 the maximum potential amount of future payments that the Bank would have been required to make under the Commitments was $ 4,600 and $ 3,887 , respectively. Under the Commitments, the Bank agrees to service the loans and therefore, is responsible for any necessary foreclosure proceedings. Any future recoveries on any losses would not be paid by the FHLB under the Commitments. The Bank has not experienced any material losses under these guarantees. Contingencies : We generally sell loans to investors without recourse; therefore, the investors have assumed the risk of loss or default by the borrower. However, we are usually required by these investors to make certain standard representations and warranties relating to credit information, loan documentation, and collateral. To the extent that we do not comply with such representations, we may be required to repurchase the loans or indemnify these investors for any losses from borrower defaults. We establish reserves for potential losses related to these representations and warranties if deemed appropriate and such reserves would be recorded within accrued expenses and other liabilities. In assessing the adequacy of the reserve, we evaluate various factors including actual write-offs during the period, historical loss experience, known delinquent and other problem loans, and economic trends and conditions in the industry. 142 Table of Contents From time to time, we are a defendant in various claims, legal actions, and complaints arising in the ordinary course of business. We periodically review all outstanding pending or threatened legal proceedings and determine if such matters will have an adverse effect on our business, financial condition, results of operations or cash flows. Litigation C heck Fraud Litigation Rodeo Electrical Services, Inc. and its owner (collectively, “RESI”) filed a civil action against the Bank on June 23, 2020 in the Santa Fe County, New Mexico District Court. The complaint alleged that the Bank conspired with or otherwise aided a former RESI employee’s embezzlement of approximately $ 0.4 million from RESI. The complaint sought compensatory, exemplary, statutory and punitive damages, as well as payment of RESI’s legal fees and expenses. On January 18, 2024, the jury awarded RESI approximately $ 2.1 million which included punitive damages. Judgment on the jury’s award was entered on July 25, 2024. On June 6, 2025, a supplemental award of RESI’s legal fees of $ 0.8 million was entered. On June 30, 2025 the Bank filed an appeal, and on August 20, 2025, after mediation, the parties reached a settlement, all of which was paid by the Bank’s insurance carrier in January 2026. The appeals were dismissed on January 30, 2026, at which time the case was concluded. Because the settlement was fully covered by insurance, the settlement had no material effect on the financial condition or results of operations of the Bank. We establish reserves for contingencies, including legal proceedings, when potential losses become probable and can be reasonably estimated. While the ultimate resolution of any legal proceedings, including the matters described above, cannot be determined at this time, based on information presently available, and after consultation with legal counsel, management believes that the ultimate outcome in these above legal proceedings, either individually or in the aggregate, will not have a material adverse effect on our financial statements. It is possible, however, that future developments could result in an unfavorable outcome for or resolution of any of these proceedings, which may be material to our results of operations for a given fiscal period. 143 Table of Contents NOTE 23 - Lease Commitments Our leases relate primarily to office space and bank branches with remaining lease terms of generally 1 to 15 years. Certain lease arrangements contain extension options which typically range from 5 to 10 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. 2025 2024 ROU asset on leased property, gross $ 44,376 $ 38,779 Accumulated amortization ( 17,120 ) ( 16,303 ) ROU asset, net ( Note 8 ) $ 27,256 $ 22,476 Lease liability ( Note 12 ) $ 29,049 $ 24,376 The following table reconciles future undiscounted lease payments due under non-cancelable operating leases to the aggregate operating lessee lease liability as of December 31, 2025: 2026 $ 8,000 2027 6,159 2028 5,810 2029 4,930 2030 3,213 Thereafter 3,851 Total undiscounted operating lease liability 31,963 Imputed interest 2,914 Total operating lease liability included in the accompanying balance sheet $ 29,049 Weighted Average Remaining Life - Operating Leases (years) 5.09 Weighted Average Rate - Operating Leases 3.52 % The components of total lease expense was as follows for the years ended December 31,: 2025 2024 Operating leases $ 7,960 $ 7,422 Short-term leases 331 395 Sublease income ( 181 ) ( 188 ) Net lease expense $ 8,110 $ 7,629 Total lease expense for the year ended December 31, 2023 was $ 7,670 . We do not currently have any significant finance leases in which we are the lessee, material related-party leases, leases containing residual value guarantees or restrictive covenants. 144 Table of Contents NOTE 24 - Revenue from Contracts with Customers Under the guidance of the Revenue from Contracts with Customers (Topic 606), an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration received in exchange for those goods or services. Revenue is recognized when obligations, under the terms of a contract with our customer, are satisfied, which generally occurs when services are performed. Revenue is measured as the amount of consideration we expect to receive in exchange for providing services. The disaggregation of our revenue from contracts with customers included in our Banking segment is provided below for the years ended December 31,: 2025 2024 2023 Deposit account service fees $ 8,321 $ 9,495 $ 9,940 Treasury management service fees 17,473 14,829 11,724 Credit and debit card fees 10,729 11,153 11,681 Trust and investment advisory fees 5,945 5,787 5,693 Other income 7,967 4,545 4,930 Total $ 50,435 $ 45,809 $ 43,968 A description of our revenue streams accounted for under ASC 606 is as follows: Deposit account service fees: We charge depositors various deposit account service fees including those for online banking, outgoing wires, overdrafts, stop payment orders, and ATM fees. These fees are generated from a depositor’s option to purchase services offered under the contract and are only considered a contract when the depositor exercises their option to purchase these account services. Therefore, we deem the term of our contracts with depositors to be day-to-day and do not extend beyond the services already provided. Deposit account and other banking fees are recorded at the point in time we perform the requested service. Treasury management service fees: We charge business customers various service fees for products and account management services provided, including financial information, accounts receivable, accounts payable, fraud mitigation, and cash flow management. These service fees are generated from a depositor’s election to purchase services offered under the contract and are only considered a contract when the depositor elects to purchase these products and account services. Therefore, we deem the term of our contracts with depositors to be month to month and do not extend beyond the services already provided. Credit and debit card fees : We collect interchange fee income when debit and credit cards that we have issued to our customers, are used in merchant transactions. Our performance obligation is satisfied and revenue is recognized at the point we initiate the payment of funds from a customer’s account to a merchant account. Trust and investment advisory fees : We earn trust and investment advisory fees from contracts with our customers to manage assets for investments, and/or transact on their accounts. These fees are primarily earned over time as we provide the contracted monthly, quarterly, or annual services and are generally assessed based on a tiered scale of the market value of assets under management at each month end. Fees that are transaction based are recognized at the point in time that the transaction is executed. Other related services provided include financial planning services and the fees we earn, which are based on a fixed fee schedule, are recognized when the services are rendered. 145 Table of Contents Other income : Other income consists of service fee income received in connection with administering customer accommodation interest rate swaps, loan syndication fees, insurance commissions and miscellaneous charges for services provided to our customers. Customer accommodation interest rate swap fees and loan syndication fees are earned and recognized at the time of loan origination or syndication. Insurance commissions from insurance carriers are earned and recognized at the time of policy origination. Miscellaneous charges for services provided to our customers consists of service fees that are generated from a customer’s option to purchase services offered under the contract and are only considered a contract when the customer exercises their option to purchase these services. Therefore, we deem the term of our contracts with these customers to be day-to-day and do not extend beyond the services already provided. NOTE 25 - Subsequent Events The Company has evaluated subsequent events for potential recognition and disclosure through the filing date of this Form 10-K. Regulatory approval from the Office of the Comptroller of the Currency: On February 25, 2026, FirstSun and First Foundation announced receipt of regulatory approval from the Office of the Comptroller of the Currency to complete the merger of their respective bank subsidiaries, Sunflower Bank, N.A. and First Foundation Bank, as part of the previously announced merger between FirstSun and First Foundation. Completion of the merger remains subject to receipt of regulatory approval from the Board of Governors of the Federal Reserve System. FirstSun Special Meeting of Stockholders: FirstSun held a special meeting of stockholders on February 27, 2026 (the “FirstSun special meeting”). At the FirstSun special meeting, the following four proposals were considered: • Proposal 1: a proposal to adopt the Agreement and Plan of Merger, dated as of October 27, 2025, by and between FirstSun and First Foundation Inc. (“First Foundation”), as it may be amended from time to time (the “merger agreement”), under which First Foundation will merge with and into FirstSun, and to approve the consummation of the transactions contemplated thereby, including the issuance of shares of FirstSun common stock as merger consideration (the “FirstSun merger proposal”); • Proposal 2: a proposal to approve an amendment to FirstSun’s certificate of incorporation to increase the number of authorized shares of FirstSun common stock (the “FirstSun authorized common increase proposal”); • Proposal 3: a proposal to approve an amendment to FirstSun’s certificate of incorporation to create a class of non-voting common stock, to be available, among other things, for issuance to certain former First Foundation stockholders in connection with the merger (the “FirstSun non-voting common stock proposal”); and • Proposal 4: a proposal to adjourn the FirstSun special meeting, if necessary or appropriate, to permit further solicitation of proxies in favor of the FirstSun merger proposal, the FirstSun authorized common increase proposal or the FirstSun non-voting common stock proposal (the “FirstSun adjournment proposal”). Each proposal considered and voted on was approved by the requisite vote of FirstSun’s stockholders. The final voting results for the FirstSun merger proposal can be found in the 8-K filed with the SEC on February 27, 2026 . Because a quorum was present at the special meeting and proposals 1, 2, and 3 each received the requisite vote needed for approval, a vote on the FirstSun adjournment proposal was withdrawn and not called. For more information on each of these proposals, see the definitive joint proxy statement/prospectus filed by FirstSun with the U.S. Securities and Exchange Commission (“SEC”) on January 15, 2026, as supplemented by the supplement to joint proxy statement/prospectus filed by FirstSun with the SEC on February 6, 2026. 146 Table of Contents Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures None.