What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-05-08 compared with 2025-11-05 · 225 added, 586 removed, 1032 unchanged (44% of the section changed)

2 unchanged sentences

Consolidated Statements of Financial Condition

(In thousands, except share data - Unaudited)

September 30,

(In thousands, except share data)

Cash and due from banks

2 unchanged sentences

Investment securities – available for sale (at fair value)

Investment securities – held to maturity, net of allowance for credit losses of $ 102 at September 30, 2025 and $ 59 at December 31, 2024 (fair value $ 149,130 at September 30, 2025 and $ 144,760 at December 31, 2024)

Investment securities – held to maturity, net of allowance for credit losses of $ 102 at March 31, 2026 and December 31, 2025 (fair value $ 148,942 at March 31, 2026 and $ 148,889 at December 31, 2025)

Equity investments not held for trading with readily determinable fair values

7 unchanged sentences

Deferred tax assets

Other real estate owned, net

Repossessed assets

Other real estate owned

Other repossessed assets

Right of use assets

1 unchanged sentence

Accrued interest receivable

Trust receivable

Liabilities and Shareholders’ Equity

6 unchanged sentences

SERP deferred compensation

Allowance for credit losses on off-balance sheet credit exposures

Allowance for credit losses on unfunded commitments

Accrued interest payable

5 unchanged sentences

Authorized 25,000,000 shares;

issued and outstanding 6,496,908 shares at September 30, 2025 and 6,471,096 at December 31, 2024

issued and outstanding 6,446,717 shares at March 31, 2026 and 6,499,476 at December 31, 2025

Retained earnings

6 unchanged sentences

(In thousands, except per share data)

Nine Months Ended

September 30,

Interest income

Interest and fees on loans

Interest on investment securities

Exempt from federal income tax

Total investment income

Total interest income

Interest expense

Interest on deposits:

Interest-bearing transaction accounts

Time deposits

Total interest on deposits

Interest on short-term borrowings

Interest on long-term borrowings

Total Interest Expense

Net Interest income

Credit loss expense

Credit loss expense - loans

Credit loss expense - debt securities held to maturity

Credit loss expense/(credit) - off-balance sheet credit exposures

Total credit loss expense

Net interest income after provision for credit losses

Other operating income

Net gains on investments, available for sale

Net gains on sales of residential mortgage loans

Net gains on disposal of fixed assets

Service charges on deposit accounts

Other service charges

Trust department

Debit card income

Bank owned life insurance

Brokerage commissions

Total other income

Total other operating income

Other operating expenses

Salaries and employee benefits

FDIC premiums

Equipment expense

Occupancy expense of premises

Data processing expense

Marketing expense

Professional services

Contract labor

Other real estate owned expense, net

Investor relations

Contributions

Total other operating expenses

Income before income tax expense

Provision for income tax expense

Basic net income per share

Diluted net income per share

Weighted average number of basic shares outstanding

Weighted average number of diluted shares outstanding

Dividends declared per share

See accompanying notes to the consolidated financial statements

First United Corporation and Subsidiaries

Consolidated Statements of Operations

(In thousands, except per share data)

Three Months Ended

September 30,

Interest income

15 unchanged sentences

Credit loss expense - loans

Credit loss expense - debt securities held to maturity

Credit loss (credit)/expense - off-balance sheet credit exposures

Credit loss expense - off-balance sheet credit exposures

Total credit loss expense

1 unchanged sentence

Other operating income

Net gains on investments, available for sale

Net gains on sales of residential mortgage loans

Net gains on sales of fixed assets

Net gains on disposal of fixed assets

Service charges on deposit accounts

30 unchanged sentences

(In thousands)

Nine Months Ended

September 30,

Three Months Ended

Comprehensive Income

4 unchanged sentences

Other comprehensive income/(loss) on investments with credit related impairment

Unrealized holding gains on all other AFS investments

Reclassification adjustment for gains realized in income

Other comprehensive income on all other AFS investments

Held to Maturity Securities

Unrealized holding gains on securities transferred to held to maturity

Reclassification adjustment for amortization realized in income

Other comprehensive income on HTM investments

Cash flow hedges:

Unrealized holding losses on cash flow hedges

Other comprehensive loss on cash flow hedges

Pension plan liability:

Unrealized holding gains on pension plan liability

Reclassification adjustment for amortization of unrecognized losses realized in income

Other comprehensive income on pension plan liability

SERP liability:

Unrealized holding gains on SERP liability

Reclassification adjustment for amortization of unrealized losses realized in income

Other comprehensive income on SERP liability

Other comprehensive income before income tax

Income tax effect related to other comprehensive income

Other comprehensive income, net of tax

Comprehensive income

See accompanying notes to the consolidated financial statements

First United Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

(In thousands)

Three Months Ended

September 30,

Comprehensive Income

Other comprehensive income, net of tax and reclassification adjustments:

Available for sale securities:

Unrealized holding gains on investments with credit related impairment

Reclassification adjustment for accretable yield realized in income

Other comprehensive (loss)/income on investments with credit related impairment

Unrealized holding gains on all other AFS investments

Unrealized holding (losses)/gains on all other AFS investments

Reclassification adjustment for gains realized in income

Other comprehensive income on all other AFS investments

Other comprehensive (loss)/income on all other AFS investments

Held to maturity securities

6 unchanged sentences

Pension plan liability:

Unrealized holding gains on pension plan liability

Unrealized holding losses on pension plan liability

Reclassification adjustment for amortization of unrecognized losses realized in income

Other comprehensive income on pension plan liability

SERP liability:

Unrealized holding gains on SERP liability

Reclassification adjustment for amortization of unrealized losses realized in income

Other comprehensive income on SERP liability

Other comprehensive income before income tax

Income tax effect related to other comprehensive income

Other comprehensive income, net of tax

Other comprehensive loss on pension plan liability

Other comprehensive loss before income tax

Income tax effect related to other comprehensive loss

Other comprehensive loss, net of tax

Comprehensive income

2 unchanged sentences

Consolidated Statements of Changes in Shareholders’ Equity

(In thousands, except per share data)

(In thousands, except per share data, unaudited)

Comprehensive

3 unchanged sentences

Other comprehensive loss

Stock based compensation

Stock based compensation, net of forfeitures

Common stock issued - 7,841 shares

Stock repurchase - 60,600 shares

Common stock dividend declared - $ 0.26 per share

Balance at March 31, 2026

Other comprehensive income

Stock based compensation

Common stock issued - 15,977 shares

Common stock dividend declared - $ 0.22 per share

Balance at June 30, 2025

Other comprehensive income

Stock based compensation

Common stock issued - 2,297 shares

Common stock dividend declared- $ 0.26 per share

Balance at September 30, 2025

See accompanying notes to the consolidated financial statements

First United Corporation and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

(In thousands, except per share data)

Comprehensive

2 unchanged sentences

Balance at January 1, 2025

Other comprehensive income

Stock based compensation

Common stock issued - 8,757 shares

Common stock dividend declared - $ 0.20 per share

Balance at March 31, 2024

Other comprehensive loss

1 unchanged sentence

Common stock issued - 7,538 shares

Common stock repurchased - 201,800 shares

Common stock dividend declared - $ 0.22 per share

Balance at June 30, 2024

Other comprehensive income

Stock based compensation

Common stock issued - 2,964 shares

Common stock dividend declared- $ 0.22 per share

Balance at September 30, 2024

Balance at March 31, 2025

See accompanying notes to the consolidated financial statements

2 unchanged sentences

(In thousands)

Nine Months Ended

September 30,

Three Months Ended

Operating activities

1 unchanged sentence

Provision for credit losses

Stock based compensation

Gains on sales of other real estate owned, net

Write-downs of other real estate owned, net

Stock based compensation, net of forfeitures

Originations of loans held for sale

5 unchanged sentences

Amortization of intangible assets

Gains on sales of investment securities – AFS

Earnings on bank owned life insurance

1 unchanged sentence

Amortization of operating lease right of use asset

Increase in accrued interest receivable and other assets

Deferred tax (benefit)/expense

Decrease in accrued interest receivable and other assets

Amortization of operating lease liability

2 unchanged sentences

Investing activities

Proceeds from maturities/calls of investment securities - AFS

Proceeds from maturities/calls of investment securities - HTM

Proceeds from sales of investment securities - AFS

Proceeds from prepayments and maturities of investment securities - AFS

Proceeds from prepayments and maturities of investment securities - HTM

Purchases of investment securities - AFS

Purchases of investment securities - HTM

Purchases of equity securities with readily determinable fair market values

Proceeds from sales of other real estate owned

Proceeds from disposal of fixed assets

Purchase of equity securities with readily determinable fair values

Proceeds from sale of other repossessed assets

Proceeds from BOLI death benefit

Net decrease/(increase) in restricted stock

Net increase in loans

Purchases of premises and equipment

Net cash (used in)/provided by investing activities

Net increase in equity securities with readily determinable fair values

Net (increase)/decrease in loans

Purchases of premises and equipment, net

Net cash used in investing activities

Financing activities

Net increase/(decrease) in deposits

Net increase in deposits

Issuance of common stock

Cash dividends paid on common stock

Net (decrease)/increase in short-term borrowings

Net increase/(decrease) in short-term borrowings

Stock repurchase

Proceeds from long-term borrowings

Payments of long-term borrowings

Net cash provided by/(used in) financing activities

Increase in cash and cash equivalents

Net cash (used in)/provided by financing activities

(Decrease)/increase in cash and cash equivalents

Cash and cash equivalents at beginning of the year

2 unchanged sentences

Interest paid

Non-cash investing activities:

Transfers from loans to other real estate owned

Transfers from loans to other repossessed assets

See accompanying notes to the consolidated financial statements

4 unchanged sentences

First United Corporation has prepared these unaudited condensed consolidated financial statements in accordance with GAAP for interim financial information, rules of the Securities and Exchange Commission that permit reduced disclosure for interim periods, and Article 8 of Regulation S-X.

Operating results for the nine- and three-month periods ended September 30, 2025 are not necessarily indicative of the results that may be expected for the full year or for any future interim period.

Operating results for the three-month period ended March 31, 2026 are not necessarily indicative of the results that may be expected for the full year or for any future interim period.

These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in First United Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025.

In preparing financial statements, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities as of the date of financial statements.

In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities as of the date of financial statements.

In addition, these estimates and assumptions affect revenues and expenses in the financial statements and, as such, actual results could differ from those estimates.

5 unchanged sentences

As used in these notes, the terms “the Corporation” “we”, “us”, and “our” refer to First United Corporation and, unless the context clearly requires otherwise, its consolidated subsidiaries.

The Corporation has evaluated events and transactions occurring subsequent to the statement of financial condition date of September 30, 2025 and through the date these consolidated financial statements were issued, for items of potential recognition or disclosure.

The Corporation has evaluated events and transactions occurring subsequent to the statement of financial condition date of March 31, 2026 and through the date these consolidated financial statements were issued, for items of potential recognition or disclosure.

Note 2 – Accounting Statements Issued but Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2023-09, “Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.” ASU 2023-09 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.

2023-09 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.

2023-09 became effective for annual periods beginning after December 15, 2024 and early adoption is permitted.

First United Corporation will adopt this ASU in its annual report for the period ending December 31, 2025 and does not believe that such adoption will have a material impact on the Corporation’s financial statements.

In November 2024, FASB issued ASU No.

In November 2024, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2024-03, “Income Statement- Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40):

4 unchanged sentences

Additionally, entities must disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses.

2024-03 is effective on a prospective basis for annual periods beginning

after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, though early adoption and retrospective application is permitted.

2024-03 is effective on a prospective basis for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, though early adoption and retrospective application is permitted.

2024-03 is not expected to have a material impact on our financial statements.

3 unchanged sentences

2025-05 provides all entities with a practical expedient in developing reasonable and supportable forecasts as part of estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606.

2025-05 is effective on a prospective basis or annual periods beginning after December 15, 2025, though early adoption and retroactive application is permitted.

2025-05 is effective on a prospective basis for annual periods beginning after December 15, 2025, though early adoption and retroactive application is permitted.

2025-05 is not expected to have a material impact on our financial statements.

6 unchanged sentences

1) management has authorized and committed to funding the software project and 2) it is probable that the project will be completed and the software will be used to perform the function intended.

2025-06 is effective on a prospective basis on annual periods beginning after December 15, 2027, though early adoption and retroactive application is permitted.

2025-06 is effective on a prospective basis for annual periods beginning after December 15, 2027, though early adoption and retroactive application is permitted.

2025-06 is not expected to have a material impact on our financial statements.

In November 2025, FASB issued ASU No.

2025-08, “Financial Instruments- Credit Losses (topic 326):

Purchased Loans.” ASU No.

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”(“PSL”).

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.

2025-08 is effective on a prospective basis for annual periods beginning after December 15, 2026, though early adoption and retroactive application is permitted.

2025-08 is not expected to have a material impact on our financial statements.

In November 2025, FASB issued ASU No.

2025-09, “ Derivatives and Hedging (topic 815):

Hedge Accounting Improvements.” ASU No.

2025-09 amends ASC Topic 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 a 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.

2025-09 is effective on a prospective basis for annual periods beginning after December 15, 2026, though early adoption and retroactive application is permitted.

2025-09 is not expected to have a material impact on our financial statements.

In November 2025, FASB issued ASU No.

2025-11, “Interim reporting (topic 270):

Narrow Scope Improvements.” ASU No.

2025-11 clarifies and enhances guidance under ASC Topic 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 to disclose material events and changes occurring after the end of the last annual period that could impact interim results.

2025-11 is effective on a prospective basis for annual periods beginning after December 15, 2027, though early adoption and retroactive application is permitted.

2025-11 is not expected to have a material impact on our financial statements.

Note 3 – Earnings Per Share

1 unchanged sentence

Diluted earnings per share is derived by dividing net income available to shareholders by the weighted-average number of shares outstanding, adjusted for the dilutive effect of outstanding common stock equivalents, such as restricted stock units (“RSUs”).

There were no anti-dilutive shares outstanding at September 30, 2025 or September 30, 2024.

The following table sets forth the calculation of basic and diluted earnings per common share for the nine- and three-month periods ended September 30, 2025 and 2024:

Nine months ended September 30,

(in thousands, except for per share amount)

Basic Earnings Per Share:

Diluted Earnings Per Share:

Restricted stock units

Three months ended September 30,

There were no anti-dilutive shares outstanding at March 31, 2026 or 2025.

The following table sets forth the calculation of basic and diluted earnings per common share for the three-month periods ended March 31, 2026 and 2025:

Three months ended March 31,

(in thousands, except for per share amount)

3 unchanged sentences

Note 4 – Investments

The following tables show a comparison of amortized cost and fair values of investment securities at September 30, 2025 and December 31, 2024:

The following tables show a comparison of amortized cost and fair values of investment securities at March 31, 2026 and December 31, 2025:

(in thousands)

1 unchanged sentence

Estimated Fair Value

September 30, 2025

March 31, 2026

Available for Sale:

10 unchanged sentences

Allowance for Credit Losses

September 30, 2025

March 31, 2026

Held to Maturity:

29 unchanged sentences

Total held to maturity

Proceeds from sales and calls of available-for-sale (“AFS”) securities and the realized gains and losses for the nine- and three-month periods ended September 30, 2025 and 2024 are as follows:

Nine Months Ended

Three Months Ended

September 30,

(in thousands)

Realized gains

Realized losses

There were no sales or calls of available-for-sale (“AFS”) securities and no realized gain/loss activity for the three-month periods ended March 31, 2026 or 2025.

The Corporation utilizes FASB Accounting Standards Codification (“ASC”) Topic 326 to evaluate its AFS and held-to-maturity (“HTM”) debt security portfolio for expected credit losses.

12 unchanged sentences

Management measures expected credit losses on HTM debt securities on a collective basis by major security type.

Management has elected to not measure an ACL for accrued interest on securities.

Management has

elected to not measure an ACL for accrued interest on securities.

The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts.

11 unchanged sentences

Non-rated securities are evaluated internally based on financial performance and expected future cash flows.

As of September 30, 2025 and December 31, 2024, the Corporation recorded ACL of approximately $ 102,000 and $ 59,000 , respectively, related to one municipal bond in its HTM security portfolio.

The following tables show the Corporation’s investment securities with gross unrealized and unrecognized losses and fair values at September 30, 2025 and December 31, 2024, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized and unrecognized loss position:

As of March 31, 2026 and December 31, 2025, the Corporation recorded ACL of approximately $ 102,000 , related to one municipal bond in its HTM securities portfolio.

The following tables show the Corporation’s investment securities with gross unrealized and unrecognized losses and fair values at March 31, 2026 and December 31, 2025, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized and unrecognized loss position:

Less than 12 months

1 unchanged sentence

(in thousands)

September 30, 2025

March 31, 2026

Available for Sale:

10 unchanged sentences

(in thousands)

September 30, 2025

March 31, 2026

Held to Maturity:

29 unchanged sentences

Total held to maturity

The amortized cost and estimated fair value of securities by contractual maturities at September 30, 2025 are shown in the following table.

The amortized cost and estimated fair value of securities by contractual maturities at March 31, 2026 are shown in the following table.

Expected maturities for mortgage-backed securities and collateralized mortgage obligations will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

September 30, 2025

March 31, 2026

(in thousands)

1 unchanged sentence

Available for Sale:

Due in one year or less

Due after one year through five years

Due after five years through ten years

5 unchanged sentences

Held to Maturity:

Due in one year or less

Due after one year through five years

5 unchanged sentences

Total held to maturity

At September 30, 2025 and December 31, 2024, AFS investment securities with an aggregate fair value of $ 88.0 million and $ 71.6 million, respectively, and HTM investment securities with an aggregate book value of $ 171.0 million and $ 161.2 million, respectively, were pledged as permitted or required to secure public deposits, for securities sold under agreements to repurchase as required or permitted by law and as collateral for borrowing capacity.

At March 31, 2026 and December 31, 2025, AFS investment securities with an aggregate fair value of $ 91.9 million and $ 87.1 million, respectively, and HTM investment securities with an aggregate book value of $ 169.7 million and $ 169.0 million, respectively, were pledged as permitted or required to secure public deposits, for securities sold under agreements to repurchase as required or permitted by law and as collateral for borrowing capacity.

Note 5 – Loans and Related Allowance for Credit Losses

The following table summarizes the primary segments of the loan portfolio at September 30, 2025 and December 31, 2024:

The following table summarizes the primary segments of the loan portfolio at March 31, 2026 and December 31, 2025:

(in thousands)

September 30, 2025

March 31, 2026

Individually evaluated for impairment

3 unchanged sentences

Collectively evaluated for impairment

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans at September 30, 2025 and December 31, 2024:

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans at March 31, 2026 and December 31, 2025:

(in thousands)

September 30, 2025

March 31, 2026

Commercial real estate:

19 unchanged sentences

Residential mortgage - home equity

Non-accrual loans that have been subject to partial charge-offs totaled $ 0.3 million and $ 0.7 million at September 30, 2025 and December 31, 2024, respectively.

Loans secured by 1-4 family residential real estate properties in the process of foreclosure totaled $ 0.2 million and $ 1.6 million at September 30, 2025 and December 31, 2024, respectively.

As a percentage of the loan portfolio, accruing loans past due 30 days or more were 0.26 % at September 30, 2025 compared to 0.32 % at December 31, 2024.

A loan that is considered a non-accrual or modified loan may be subject to the individually evaluated loan analysis if the commitment is $ 0.1 million or greater;

Non-accrual loans that have been subject to partial charge-offs totaled $ 0.1 million at March 31, 2026 and $ 0.2 million at December 31, 2025.

There were no loans secured by 1-4 family residential real estate properties in the process of foreclosure at March 31, 2026.

Loans secured by 1-4 family residential real estate properties in the process of foreclosure totaled $ 0.5 million at December 31, 2025.

A loan that is considered a non-accrual or modified loan may be subject to the individually evaluated loan analysis if the commitment is $ 100,000 or greater;

otherwise, the modified loan remains in the appropriate segment in the ACL model and associated reserves are adjusted based on changes in the discounted cash flows resulting from the modification of the modified loan.

37 unchanged sentences

The value of the collateral, if there is any, is less likely to be a source of repayment due to less certain collateral values.

The following table summarizes the primary segments of the ACL at September 30, 2025 and December 31, 2024, segregated by the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment:

The following tables present the amortized cost basis of loans on a nonaccrual status at March 31, 2026 and December 31, 2025:

(in thousands)

September 30, 2025

Nonaccrual Loans With No Allowance for Credit Loss

Nonaccrual Loans With Allowance for Credit Loss

Total Nonaccrual Loans

March 31, 2026

Commercial real estate

Non owner-occupied

All other CRE

Commercial and industrial

Residential mortgage

Residential mortgage - term

Residential mortgage – home equity

(in thousands)

Nonaccrual Loans With No Allowance for Credit Loss

Nonaccrual Loans With Allowance for Credit Loss

Total Nonaccrual Loans

December 31, 2025

Commercial real estate

Non owner-occupied

All other CRE

Commercial and industrial

Residential mortgage

Residential mortgage - term

Residential mortgage – home equity

The following table summarizes the primary segments of the ACL at March 31, 2026 and December 31, 2025, segregated by the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment:

(in thousands)

March 31, 2026

Individually evaluated

9 unchanged sentences

The evaluation of the need and amount of a specific allocation of the ACL and whether a loan can be removed from impairment status is made on a quarterly basis.

The following tables present the amortized cost basis of collateral-dependent individually evaluated loans as of September 30, 2025 and December 31, 2024.

September 30, 2025

The following tables present the amortized cost basis of collateral-dependent individually evaluated loans as of March 31, 2026 and December 31, 2025.

March 31, 2026

(in thousands)

Other Collateral

Non-Accrual Loans with No Allowance

Non-Accrual Loans with No Allowance for Credit Loss

Commercial real estate

4 unchanged sentences

Other Collateral

Non-Accrual Loans with No Allowance

Non-Accrual Loans with No Allowance for Credit Loss

Commercial real estate

1 unchanged sentence

Residential mortgage

The following tables present the activity in the ACL for the nine- and three-month periods ended September 30, 2025 and 2024:

Nine months ended (in thousands)

The following tables present the activity in the ACL for the three-month periods ended March 31, 2026 and 2025:

(in thousands)

Beginning balance at January 1, 2026

2 unchanged sentences

Credit loss expense/(credit)

ACL balance at September 30, 2025

ACL balance at March 31, 2026

Beginning balance at January 1, 2025

1 unchanged sentence

Recoveries collected

Credit loss (credit)/expense

ACL balance at September 30, 2024

Three months ended (in thousands)

ACL balance at July 1, 2025

Loan charge-offs

Recoveries collected

Credit loss (credit)/expense

ACL balance at September 30, 2025

ACL balance at July 1, 2024

Loan charge-offs

Recoveries collected

Credit loss expense/(credit)

ACL balance at September 30, 2024

ACL balance at March 31, 2025

The Corporation’s methodology for estimating the ACL includes:

3 unchanged sentences

A specific reserve analysis is applied to certain individually evaluated loans.

These loans are evaluated quarterly generally based on collateral value, observable market value or the present value of expected future cash flows.

These loans are evaluated quarterly based on collateral value, observable market value or the present value of expected future cash flows.

A specific reserve is established if the fair value is less than the loan balance.

6 unchanged sentences

The estimated loss rate is applied within the appropriate periods in the cash flow model to determine the net present value.

Net present value is also impacted by assumption related to the duration between default and recovery.

Net present value is also impacted by assumptions related to the duration between default and recovery.

The reserve is based on the difference between the summation of the principal balances taking amortized costs into consideration and the summation of the net present values.

The Corporation has elected to forecast out the first four quarters of the credit loss estimate and revert this forecast to long-term historical averages on a straight-line basis over eight quarters.

By reverting these modeling inputs to their historical average

and considering loan/borrower specific attributes, our models are intended to yield a measurement of expected credit losses that reflects our average historical loss rates for periods subsequent to the reversion period.

By reverting these modeling inputs to their historical average and considering loan/borrower specific attributes, our models are intended to yield a measurement of expected credit losses that reflects our average historical loss rates for periods subsequent to the reversion period.

Qualitative Analysis.

19 unchanged sentences

Generally, a pass rating indicates that the loan is currently performing and is of high quality.

Special Mention - Assets with potential weaknesses that warrant management’s close attention and if left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date.

Special Mention - Assets with potential weaknesses that warrant management’s close attention and if left unchanged, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date.

Substandard - Assets that are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any.

12 unchanged sentences

Total Portfolio Loans

September 30, 2025

March 31, 2026

Commercial real estate:

Non-owner-occupied

Special Mention

Total non-owner occupied

1 unchanged sentence

All other CRE

Special Mention

Total all other CRE

2 unchanged sentences

1-4 family residential construction

Special Mention

Total acquisition and development

1 unchanged sentence

All other A&D

Special Mention

Total all other A&D

6 unchanged sentences

Residential mortgage - term

Special Mention

Total residential mortgage - term

1 unchanged sentence

Residential mortgage - home equity

Special Mention

Total residential mortgage - home equity

Current period gross charge-offs

Special Mention

Total consumer

11 unchanged sentences

Non-owner-occupied

Special Mention

Total non-owner occupied

6 unchanged sentences

1-4 family residential construction

Special Mention

Total acquisition and development

1 unchanged sentence

All other A&D

Special Mention

Total all other A&D

6 unchanged sentences

Residential mortgage - term

Special Mention

Total residential mortgage - term

1 unchanged sentence

Residential mortgage - home equity

Special Mention

Total residential mortgage - home equity

Current period gross charge-offs

Special Mention

Total consumer

10 unchanged sentences

Total Portfolio Loans

September 30, 2025

March 31, 2026

Commercial real estate:

7 unchanged sentences

1-4 family residential construction

Nonperforming

Total acquisition and development

All other A&D

Nonperforming

Total all other A&D

64 unchanged sentences

The allowance may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan.

The following tables present the amortized cost basis as of September 30, 2025 and the financial effect of loans modified to borrowers experiencing financial difficulty during the nine-month periods ended September 30, 2025 and 2024 and three-month period ended September 30, 2024.

There were no loans modified to borrowers facing financial difficulty during the three-month period ended September 30, 2025:

The following tables present the amortized cost basis and the financial effect of loans modified to borrowers experiencing financial difficulty during the three-month periods ended March 31, 2026 and 2025.

There was one new loan and one existing loan that were modified during the three-month period ended March 31, 2026:

(in thousands)

2 unchanged sentences

Weighted Average Term and Principal Payment Extension

Nine months ended September 30, 2025

Owner-occupied commercial real estate

Commercial and industrial

Nine months ended September 30, 2024

Three months ended March 31, 2026

Residential mortgage - term

Owner-occupied commercial real estate

Commercial and industrial

(in thousands)

2 unchanged sentences

Weighted Average Term and Principal Payment Extension

Three months ended September 30, 2024

Three months ended March 31, 2025

Commercial and industrial

The Corporation monitors loan payments on performing and non-performing loans on an ongoing basis to determine if a loan is considered to have a payment default.

The borrowers for whom loan modifications were made in the nine-month period ended September 30, 2025 have made all contractual payments.

If a modified loan with an outstanding balance of $ 0.1 million or greater subsequently defaults and goes on non-accrual status, then the Corporation individually evaluates the loan when performing its estimate of current expected credit losses to calculate

The borrowers for whom loan modifications were made in the three-month period ended March 31, 2026 have made all contractual payments.

If a modified loan with an outstanding balance of $ 100,000 or greater subsequently defaults and goes on non-accrual status, then the Corporation individually evaluates the loan when performing its estimate of current expected credit losses to calculate the ACL.

Upon determination that a modified loan (or a portion of a modified loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is charged off.

1 unchanged sentence

Note 6 – Fair Value of Financial Instruments

The Corporation complies with the guidance of ASC Topic 820, Fair Value Measurements and Disclosures , which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements required under other accounting pronouncements.

other accounting pronouncements.

The Corporation also follows the guidance on matters relating to all financial instruments found in ASC Subtopic 825-10, Financial Instruments – Overall .

3 unchanged sentences

Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability.

ASU Topic 820, “Fair Value Measurements and Disclosures,” establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.

ASC Topic 820, “ Fair Value Measurements and Disclosures ,” establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.

The fair value hierarchy is as follows:

12 unchanged sentences

The fair value of investments available-for-sale is determined using a market approach.

At September 30, 2025 and December 31, 2024, the U.S.

At March 31, 2026 and December 31, 2025, the U.S.

Government agencies and treasuries, residential and commercial mortgage-backed securities, and municipal bonds segments were classified as Level 2 within the valuation hierarchy.

Their fair values were determined based upon market-corroborated inputs and valuation matrices, which were obtained through third party data service providers or securities brokers through which we have historically transacted both purchases and sales of investment securities.

Equity investments not held for trading with readily determinable fair values consisted of money market mutual funds as of September 30, 2025 and are classified as Level 1 within the valuation hierarchy.

Equity investments not held for trading with readily determinable fair values consisted of money market mutual funds as of March 31, 2026 and December 31, 2025 are classified as Level 1 within the valuation hierarchy.

Their fair values were determined based upon daily published net asset values with which investors can freely redeem from the fund.

Derivative financial instruments (cash flow hedge) – The Corporation’s open derivative positions are interest rate swap agreements.

Those classified as Level 2 open derivative positions are valued using externally developed pricing models based on

observable market inputs provided by a third party and validated by management.

Those classified as Level 2 open derivative positions are valued using externally developed pricing models based on observable market inputs provided by a third party and validated by management.

The Corporation has considered counterparty credit risk in the valuation of its interest rate swap assets.

2 unchanged sentences

These assets are included as Level 3 fair values based upon the lowest level of input that is significant to the fair value measurements.

Equity investments- Equity investments included in the table below are considered are recorded with a write-down to fair value recorded in other operating expenses.

Equity investments- Equity investments included in the table below are recorded with a write-down to fair value recorded in other operating expenses.

Fair value of the equity investment was based on an independent third-party valuation report where the value was determined based on the revenue multiples of like kind information technology businesses.

4 unchanged sentences

These assets are included as Level 3 fair values based upon the lowest level of input that is significant to the fair value measurements.

For assets measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2025 and December 31, 2024 were as follows:

For assets measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2026 and December 31, 2025 were as follows:

Fair Value Measurements

at September 30, 2025 Using

at March 31, 2026 Using

Active Markets

10 unchanged sentences

Equity investments not held for trading with readily determinable fair values

Financial derivatives

Non-recurring:

Individually evaluated loans, net

Equity investment

Fair Value Measurements

12 unchanged sentences

Collateralized debt obligations

Equity investments not held for trading with readily determinable fair values

Financial derivatives

Non-recurring:

Individually evaluated loans, net

Equity investment

Collateral dependent loans

Other real estate owned

Individually evaluated loans, with no valuation allowance, had a net carrying amount of $ 3.3 million and $ 4.4 million at September 30, 2025 and December 31, 2024, respectively.

Individually evaluated loans recorded at fair value at September 30, 2025 and December 31, 2024 totaled $ 0.3 million and $ 0.6 million, respectively, which amounts were inclusive of $ 0.7 million and $ 0.2 million in partial charge-offs recorded in the nine-month period ended September 30, 2025 and the year ended December 31, 2024, respectively.

There were no transfers of assets between any of the fair value hierarchy for the nine- or three-month periods ended September 30, 2025 or 2024.

For Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis as of September 30, 2025 and December 31, 2024, the significant unobservable inputs used in the fair value measurements were as follows:

There were no transfers of assets between any of the fair value hierarchy for the three-month periods ended March 31, 2026 or 2025.

For Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis as of March 31, 2026 and December 31, 2025, the significant unobservable inputs used in the fair value measurements were as follows:

(in thousands)

Fair Value at

September 30,

Investment securities – available for sale -CDO

1 unchanged sentence

Discount Margin

Range of high 200 to high 400

Non-recurring:

Individually evaluated loans, net

Market Comparable Properties

Marketability Discount

Equity investment

Market Method

Revenue Multiples

Range of upper 200 s to mid 400 s

(in thousands)

3 unchanged sentences

Discount Margin

Range of low to mid 300 and low 500

Range of upper 200 s to upper 400 s

Non-recurring:

Individually Evaluated Loans

Collateral dependent loans

Market Comparable Properties

Marketability Discount

Equity investment

Market Method

Revenue Multiples

Other real estate owned (1)

1 unchanged sentence

Marketability Discount

5.0 % to 15.0 %

(weighted avg 5.9 %)

(1) Range would include discounts taken since appraisal and estimated values

The following tables show a reconciliation of the beginning and ending balances for fair valued assets measured on a recurring basis using Level 3 significant unobservable inputs for the nine- and three-month periods ended September 30, 2025 and 2024:

Fair Value Measurements

6 unchanged sentences

Included in other comprehensive income

Ending balance September 30, 2025

Ending balance March 31, 2026

Fair Value Measurements

6 unchanged sentences

Included in other comprehensive income

Ending balance September 30, 2024

Fair Value Measurements

Using Significant Unobservable Inputs

(in thousands)

Investment Securities

Available for Sale

Beginning balance July 1, 2025

Total losses realized/unrealized:

Included in other comprehensive income

Ending balance September 30, 2025

Fair Value Measurements

Using Significant Unobservable Inputs

(in thousands)

Investment Securities

Available for Sale

Beginning balance July 1, 2024

Total gains realized/unrealized:

Included in other comprehensive income

Ending balance September 30, 2024

There were no gains or losses included in earnings attributable to the change in realized/unrealized gains or losses related to the assets for the nine- or three-month periods ended September 30, 2025 or 2024.

Ending balance March 31, 2025

There were no gains or losses included in earnings attributable to the change in realized/unrealized gains or losses related to the assets for the three-month periods ended March 31, 2026 or 2025.

The disclosed fair values may vary significantly between institutions based on the estimates and assumptions used in the various valuation methodologies.

6 unchanged sentences

The actual carrying amounts and estimated fair values of the Corporation’s financial instruments that are included in the Consolidated Statement of Financial Condition are as follows:

September 30, 2025

March 31, 2026

Fair Value Measurements

9 unchanged sentences

Restricted bank stock

Financial derivatives

Accrued interest receivable

15 unchanged sentences

Investment securities - HTM

Equity investments not held for trading with readily determinable fair values

Restricted bank stock

8 unchanged sentences

Note 7 – Accumulated Other Comprehensive Loss

The following table presents the changes in each component of accumulated other comprehensive loss for the nine- and three-month periods ended September 30, 2025 and 2024:

The following table presents the changes in each component of accumulated other comprehensive loss for the three-month periods ended March 31, 2026 and 2025:

(in thousands)

4 unchanged sentences

Balance - March 31, 2026

Other comprehensive income/(loss) before reclassifications

Amounts reclassified from accumulated other comprehensive income

Balance - June 30, 2025

Other comprehensive income/(loss)before reclassifications

Amounts reclassified from accumulated other comprehensive income

Balance - September 30, 2025

(in thousands)

3 unchanged sentences

Balance - March 31, 2025

Other comprehensive (loss)/income before reclassifications

Amounts reclassified from accumulated other comprehensive loss

Balance - June 30, 2024

Other comprehensive

income/(loss) before

reclassifications

Amounts reclassified from

accumulated other

comprehensive loss

Balance - September 30, 2024

The following tables present the components of other comprehensive income for the nine- and three-month periods ended September 30, 2025 and 2024:

Components of Other Comprehensive Income

The following tables present the components of other comprehensive loss for the three-month periods ended March 31, 2026 and 2025:

Components of Other Comprehensive Loss

(in thousands)

For the nine months ended September 30, 2025

For the three months ended March 31, 2026

Available for sale (AFS) securities with credit related impairment:

3 unchanged sentences

Available for sale securities – all other:

Unrealized holding gains

Unrealized holding losses

gains recognized in income

Net unrealized gains on all other AFS securities

Net unrealized losses on all other AFS securities

Held to maturity securities:

5 unchanged sentences

Pension Plan:

Unrealized net actuarial gains

amortization of unrecognized gains

Unrealized net actuarial losses

amortization of unrecognized losses

Net pension plan asset adjustment

Other comprehensive income

Components of Other Comprehensive Income

Other comprehensive loss

Components of Other Comprehensive Loss

(in thousands)

For the nine months ended September 30, 2024

For the three months ended March 31, 2025

Available for sale (AFS) securities with credit related impairment:

11 unchanged sentences

Pension Plan:

Unrealized net actuarial gains

amortization of unrecognized losses

Net pension plan asset adjustment

Unrealized net actuarial gains

amortization of unrecognized losses

Net SERP liability adjustment

Other comprehensive income

Components of Other Comprehensive Income

(in thousands)

For the three months ended September 30, 2025

Available for sale (AFS) securities with credit related impairment:

Unrealized holding gains

accretable yield recognized in income

Net unrealized gains on investments with credit related impairment

Available for sale securities – all other:

Unrealized holding gains

gains recognized in income

Net unrealized gains on all other AFS securities

Held to maturity securities:

Unrealized holding gains

amortization recognized in income

Net unrealized gains on HTM securities

Cash flow hedges:

Unrealized holding losses

Pension Plan:

Unrealized net actuarial gains

amortization of unrecognized loss

Net pension plan asset adjustment

Other comprehensive income

Components of Other Comprehensive Income

(in thousands)

For the three months ended September 30, 2024

Available for sale (AFS) securities with credit related impairment:

Unrealized holding gains

accretable yield recognized in income

Net unrealized gains on investments with credit related impairment

Available for sale securities – all other:

Unrealized holding gains

Net unrealized gains on all other AFS securities

Held to maturity securities:

Unrealized holding gains

amortization recognized in income

Net unrealized gains on HTM securities

Cash flow hedges:

Unrealized holding losses

Pension Plan:

Unrealized net actuarial gains

amortization of unrecognized losses

Net pension plan asset adjustment

Unrealized net actuarial gains

Unrealized net actuarial losses

amortization of unrecognized losses

Net SERP liability adjustment

Other comprehensive income

The following table presents the details of amounts reclassified from accumulated other comprehensive loss for the nine- and three-month periods ended September 30, 2025 and 2024:

Amounts Reclassified from

Nine months ended

Accumulated Other Comprehensive Loss

September 30,

Affected Line Item in the Statement

(in thousands)

Where Net Income is Presented

Net unrealized gains on available for sale investment securities with credit related impairment:

Accretable yield

Interest income on taxable investment securities

Credit for income tax expense

Net unrealized gains on available for sale investment securities - all others:

Gains recognized

Provision for income tax expense

Net unrealized gains on held to maturity securities:

Interest income on taxable investment securities

Provision for income tax expense

Net pension plan asset adjustment

Amortization of unrecognized losses

Other Expense

Provision for income tax expense

Net SERP liability adjustment:

Amortization of unrecognized losses

Other Expense

Provision for income tax expense

Total reclassifications for the period

Other comprehensive loss

The following table presents the details of amounts reclassified from accumulated other comprehensive loss for the three-month periods ended March 31, 2026 and 2025:

Amounts Reclassified from

1 unchanged sentence

Accumulated Other Comprehensive Loss

September 30,

Affected Line Item in the Statement

5 unchanged sentences

Credit for income tax expense

Net unrealized gains on available for sale investment securities - all others:

Gains recognized

Provision for income tax expense

Net unrealized gains on held to maturity securities:

5 unchanged sentences

Provision for income tax expense

Net SERP liability adjustment:

Amortization of unrecognized losses

Other expense

Provision for income tax expense

Total reclassifications for the period

6 unchanged sentences

In May 2025, a total of 11,692 fully vested shares of common stock were issued to directors, which had a grant date fair value of $ 31.52 per share.

In May 2024, a total of 14,325 fully vested shares of common stock were issued to directors, which had a grant date fair value of $ 21.94 per share.

Director stock compensation was $ 258,318 and $ 213,536 for the nine-month periods ended September 30, 2025 and 2024, respectively.

Director stock compensation expense was $ 92,133 and $ 78,573 for the three-month periods ended September 30, 2025 and 2024, respectively.

Employee stock compensation was $ 21,400 and $ 8,240 for the nine-month periods ended September 30, 2025 and 2024, respectively.

Employee stock compensation expense was $ 2,804 and $ 2,483 for the three-month periods ended September 30, 2025 and 2024, respectively.

Director stock compensation expense was $ 92,133 and $ 78,573 for the three-month periods ended March 31, 2026 and 2025, respectively.

Employee stock compensation expense was $ 31,908 and $ 15,567 for the three-month periods ended March 31, 2026 and 2025, respectively.

Restricted Stock Units

9 unchanged sentences

To receive any shares under an RSU, a grantee must be employed by the Corporation or one of its subsidiaries on the applicable vesting date, except that a grantee whose employment terminates prior to such vesting date due to death, disability or retirement will be entitled to a pro-rated portion of the shares subject to the RSUs, assuming that, in the case of performance-vesting RSUs, the performance goals had been met at their "target" levels.

In May 2021, the Corporation granted performance-vesting RSUs relating to 7,389 shares (target) and time-vesting RSUs relating to 3,693 shares, which had a grant date fair market value of $ 17.93 per share of common stock underlying each RSU.

The performance period for the performance-vesting RSUs was the three-year period ended December 31, 2023.

On March 9, 2024, it was determined that 7,389 performance-vesting RSUs failed to vest.

The time-vesting RSUs vested ratably over a three-year period that began on May 5, 2021.

On May 5, 2022, 1,230 shares underlying the time-vesting RSUs were issued to participants.

On May 5, 2023, 1,230 additional shares underlying the time-vesting RSUs were issued to participants.

On May 5, 2024, the remaining 1,233 shares underlying the time-vesting RSUs were issued to participants.

Stock compensation expense was $ 7,365 for the nine-month period ended September 30, 2024.

Stock compensation expense was $ 0 for the three-month period ended September 30, 2024.

All compensation expense related to these RSUs was recognized as of September 30, 2024.

In March 2022, the Corporation granted performance-vesting RSUs relating to 8,096 shares (target) and time-vesting RSUs relating to 6,238 shares, which had a grant date fair market value of $ 21.88 per share of common stock underlying each RSU.

5 unchanged sentences

In the third quarter of 2024, it was projected that the performance-vesting RSUs would not be satisfied, and the stock compensation expense was adjusted accordingly.

Net stock compensation expense/(credit) was $ 11,378 and ($ 69,228 ) for the nine-month periods ended September 30, 2025 and 2024, respectively.

Stock compensation expense/(credit) was $ 0 and ($ 121,518 ) for the three-month periods ended September 30, 2025 and 2024, respectively.

All compensation expense/(credit) related to these RSUs was recognized as of September 30, 2025.

Stock compensation expense was $ 11,379 for the three-month period ended March 31, 2025.

All compensation expense related to these RSUs was recognized as of March 31, 2025.

In March 2023, the Corporation granted performance-vesting RSUs relating to 10,214 shares (target) and time-vesting RSUs relating to 7,920 shares, which had a grant date fair market value of $ 18.25 per share of common stock underlying each RSU.

The performance period for the performance-vesting RSUs is the three-year period ending December 31, 2025.

The time-vesting RSUs will vest ratably over a three-year period that began on March 15, 2023.

The performance period for the performance-vesting RSUs was the three-year period that ended December 31, 2025.

The time-vesting RSUs vested ratably over a three-year period that began on March 15, 2023.

On March 15, 2024, 2,639 shares underlying the time-vesting RSUs were issued to participants.

On March 15, 2025, 2,639 shares underlying the time-vesting RSUs were issued to participants.

Stock compensation expense was $ 82,755 for each of the nine-month periods ended September 30, 2025 and 2024.

Stock compensation expense was $ 27,585 for each of the three-month periods ended September 30, 2025 and 2024.

Unrecognized compensation expense related to these RSUs that have not vested was $ 55,170 as of September 30, 2025.

On March 15, 2026, the remaining 2,642 shares underlying the time-vesting RSUs were issued to participants.

On December 31, 2025, the performance-vesting RSUs failed to vest and the stock compensation expense was adjusted accordingly.

Stock compensation expense was $ 12,048 and $ 27,585 for the three-month periods ended March 31, 2026 and 2025, respectively.

All compensation expense related to these RSUs was recognized as of March 31, 2026.

In May 2024, the Corporation granted performance-vesting RSUs relating to 8,593 shares (target) and time-vesting RSUs relating to 6,662 shares, which had a grant date fair market value of $ 22.26 per share of common stock underlying each RSU.

2 unchanged sentences

On May 20, 2025, 2,219 shares of the 6,662 time-vesting RSUs were issued to participants.

Stock compensation expense was $ 84,942 and $ 37,752 for the nine-month periods ended September 30, 2025 and 2024, respectively.

Stock compensation expense was $ 28,314 each of the three-month periods ended September 30, 2025 and 2024.

Unrecognized compensation expense related to these RSUs that have not vested was $ 188,760 as of September 30, 2025.

Stock compensation expense was $ 28,314 for each of the three-month periods ended March 31, 2026 and 2025.

Unrecognized compensation expense related to these RSUs that have not vested was $ 132,132 as of March 31, 2026.

In February 2025, the Corporation granted performance-vesting RSUs relating to 6,006 shares (target) and time-vesting RSUs relating to 4,797 shares, which had a grant date fair market value of $ 37.59 per share of common stock underlying each RSU.

The performance period for the performance-vesting RSUs is the three-year period ending December 31, 2027.

The time-vesting RSUs will vest ratably over a three-year period beginning on February 25, 2025.

Stock compensation expense was $ 79,007 for the nine-month period ended September 30, 2025.

Stock compensation expense was $ 33,860 for the three-month period ended September 30, 2025.

Unrecognized compensation expense related to these RSUs that have not vested was $ 327,316 as of September 30, 2025.

The time-vesting RSUs will vest ratably over a three-year period that began on February 25, 2025.

On February 25, 2026, 1,599 shares underlying the time-vesting RSUs were issued to participants.

Stock compensation expense was $ 33,860 and $ 11,287 for the three-month periods ended March 31, 2026 and March 31, 2025, respectively.

Unrecognized compensation expense related to these RSUs that have not vested was $ 259,595 as of March 31, 2026.

In March 2026, the Corporation granted performance-vesting RSUs relating to 6,049 shares (target) and time-vesting RSUs relating to 4,797 shares, which had a grant date fair market value of $ 35.94 per share of common stock underlying each RSU.

The performance period for the performance-vesting RSUs is the three-year period ending December 31, 2028.

The time-vesting RSUs

will vest ratably over a three-year period beginning on March 6, 2026.

Unrecognized compensation expense related to these RSUs that have not vested was $ 389,974 as of March 31, 2026.

Note 9– Derivative Financial Instruments

3 unchanged sentences

In March 2016, the Corporation entered into four interest rate swap contracts totaling $ 30.0 million notional amount, hedging future cash flows associated with floating rate trust preferred debt.

As of September 30, 2025, $ 15.0 million notional amount remains.

The interest rate swap creates an effective fixed interest rate of 4.66 % on the $ 15.0 million notional amount of the Corporation’s junior subordination debt until the interest rate swap’s maturity in March 2026.

The fair value of the interest rate swap contracts was $ 0.2 million and $ 0.5 million at September 30, 2025 and December 31, 2024, respectively.

For the nine-month period ended September 30, 2025, a $ 287,000 decrease in the aggregate value of the derivatives and $ 61,000 in related deferred tax benefits were recorded in net accumulated other comprehensive income to reflect the effective portion of cash flow hedges.

This compares to a $ 319,000 decrease in value and related deferred tax benefits of $ 84,000 for the nine-month period ended September 30, 2024.

For the three-month period ended September 30, 2025, a $ 98,000 decrease in the aggregate value of the derivatives and $ 21,000 in related deferred tax benefits were recorded in net accumulated other comprehensive income to reflect the effective portion of cash flow hedges.

This compares to a $ 323,000 decrease in the aggregate value of the derivatives and $ 85,000 in related deferred tax benefits for the three-month period ended September 30, 2024.

ASC Subtopic 815-30 requires the net accumulated other comprehensive income/(loss) to be reclassified to earnings if the hedge becomes ineffective or is terminated.

There was no hedge ineffectiveness recorded for any of the nine- or three-month periods ended September 30, 2025 or 2024.

The Corporation does not expect any material losses relating to these hedges to be reclassified into earnings within the next 12 months.

Interest rate swap agreements are entered into with counterparties that meet established credit standards, and the Corporation believes that the credit risk inherent in these contracts is not significant as of September 30, 2025.

The table below discloses the impact of derivative financial instruments on the Corporation’s Consolidated Financial Statements for the nine- and three-month periods ended September 30, 2025 and 2024.

The fair value of the interest rate swap contracts was $ 0.0 and $ 0.1 million at March 31, 2026 and December 31, 2025, respectively.

As of March 31, 2026, all of the swap contracts had matured.

The table below discloses the impact of derivative financial instruments on the Corporation’s Consolidated Financial Statements for the three-month periods ended March 31, 2026 and 2025.

Derivative in Cash Flow Hedging Relationships

15 unchanged sentences

Interest rate contracts:

Nine months ended:

September 30, 2025

September 30, 2024

Three months ended:

September 30, 2025

September 30, 2024

March 31, 2026

March 31, 2025

(a) Reported as interest expense

1 unchanged sentence

Note 10 – Regulatory Capital Requirements

The following table presents the Bank’s capital ratios as of September 30, 2025 and December 31, 2024.

September 30,

The following table presents the Bank’s capital ratios as of March 31, 2026 and December 31, 2025.

Total Capital (to risk-weighted assets)

2 unchanged sentences

Tier 1 Capital (to average assets)

As of September 30, 2025 and December 31, 2024, the Bank was considered “well capitalized” under the regulatory framework for prompt corrective action.

As of March 31, 2026 and December 31, 2025, the Bank was considered “well capitalized” under the regulatory framework for prompt corrective action.

Note 11 – Deposits

The following table summarizes deposits at September 30, 2025 and December 31, 2024.

The following table summarizes deposits at March 31, 2026 and December 31, 2025.

(in thousands)

September 30, 2025

March 31, 2026

December 31, 2025

8 unchanged sentences

Note 12 – Borrowed Funds

The following is a summary of borrowings at September 30, 2025 and December 31, 2024:

The following is a summary of borrowings at March 31, 2026 and December 31, 2025:

(in thousands)

September 30,

Short-term borrowings:

5 unchanged sentences

Approximate weighted average rate during the period

Overnight borrowings, weighted average interest rate of 4.50 % at December 31, 2024

Long-term borrowings:

FHLB advances, bearing fixed interest rate of 3.84 % at September 30, 2025 and ranging from 3.84 % to 4.04 % at December 31, 2024.

Junior subordinated debt, bearing variable interest rate of 7.03 % at September 30, 2025 and 7.36 % at December 31, 2024

FHLB advances, bearing fixed interest rate of 3.84 % at December 31, 2025

Junior subordinated debt, bearing variable interest rate of 6.69 % at March 31, 2026 and 6.72 % at December 31, 2025

Total borrowings outstanding

At September 30, 2025, the repurchase agreements were secured by $ 28.6 million in investment securities issued by government related agencies.

Repurchase agreements were secured by investment securities with a market value of $ 28.1 million and $ 24.8 million at March 31, 2026 and December 31, 2025, respectively.

A minimum of 102 % of fair value is pledged against account balances.

The following table presents contractual maturities of long-term borrowings outstanding at September 30, 2025 and December 31, 2024:

September 30, 2025

The following table presents contractual maturities of long-term borrowings outstanding at March 31, 2026 and December 31, 2025:

March 31, 2026

December 31, 2025

18 unchanged sentences

The Wealth Management segment is conducted through the Bank and offers corporate trustee services, trust and estate administration, IRA administration and custody services.

Revenues for this segment is generated from administration, service and custody fees, brokerage commissions, and management fees that are derived from Assets Under Management.

Revenues for this segment are generated from administration, service and custody fees, brokerage commissions, and management fees that are derived from Assets Under Management.

Expenses include personnel, occupancy, data processing, marketing, equipment, and other expenses.

4 unchanged sentences

Certain prior period amounts have been reclassified to conform to the current presentation.

The Trust and Investment Services segment excludes off-balance-sheet assets under management with a total fair value of $ 1.8 billion and $ 1.7 billion at September 30, 2025 and December 31 2024, respectively.

Total assets of each operating segment at September 30, 2025 and December 31, 2024 were as follows:

Total assets as of September 30, 2025

Total assets as of December 31, 2024

Information for the operating segments for the nine- and three-month periods ended September 30, 2025 and 2024 is presented in the following tables:

Nine months ended

September 30, 2025

(in thousands)

Interest income

Interest expense

Net interest income

Credit loss expense

Net interest income after credit loss expense

Other operating income:

Net gains on sales of residential mortgages

Service charges on deposit accounts

Other service charges

Trust department income

Debit card income

Brokerage commissions

Other segment income (1)

Total other operating income

Other operating expenses:

Salaries and employee benefits

Equipment and occupancy

Data processing

FDIC premiums

Other segment expenses (2)

Total operating expenses

Income before income taxes and intercompany fees

Intercompany management fee income/(expense)

Income before income taxes

Income tax expense

Significant noncash items:

Credit loss expense

Amortization of intangible assets

(1) Other segment income includes bank owned life insurance income, gains on sales of investment securities available for sale, gains on disposals of fixed assets, and and miscellaneous income.

(2) Other segment expenses include professional services, contract labor, telephone, investor relations, contributions, net OREO expense/(income), and miscellaneous expenses.

Nine months ended

September 30, 2024

(in thousands)

Interest income

Interest expense

Net interest income

Credit loss expense

Net interest income after credit loss expense

Other operating income:

Net gains on sales of residential mortgages

Service charges on deposit accounts

Other service charges

Trust department income

Debit card income

Brokerage commissions

Other segment income (1)

Total other operating income

Other operating expenses:

Salaries and employee benefits

Equipment and occupancy

Data processing

FDIC premiums

Other segment expenses (2)

Total operating expenses

Income before income taxes and intercompany fees

Intercompany management fee income/(expense)

Income before income taxes

Income tax expense

Significant noncash items:

Credit loss expense

Amortization of intangible assets

(1) Other segment income includes bank owned life insurance income, and miscellaneous income.

(2) Other segment expenses include professional services, contract labor, telephone, investor relations, contributions, net OREO expense/(income), and miscellaneous expenses.

For the three months ended

September 30, 2025

The Wealth Management segment excludes off-balance-sheet assets under management with a total fair value of $ 1.8 billion at March 31, 2026 and December 31, 2025.

Information for the operating segments for the three-month periods ended March 31, 2026 and 2025 is presented in the following tables:

Three months ended

March 31, 2026

(in thousands)

27 unchanged sentences

Amortization of intangible assets

(1) Other segment income includes bank owned life insurance income, gains on sales of investment securities available for sale, gains on disposals of fixed assets, and and miscellaneous income.

(2) Other segment expenses include professional services, contract labor, telephone, investor relations, contributions, net OREO expense/(income), and miscellaneous expenses.

For the three months ended

September 30, 2024

Intangible assets

(1) Other segment income includes bank owned life insurance income, gains on disposals of fixed assets, and miscellaneous income.

(2) Other segment expenses include professional services, contract labor, telephone, investor relations, contributions, net OREO expense/(income), marketing expense and miscellaneous expenses.

Three months ended

March 31, 2025

(in thousands)

27 unchanged sentences

Amortization of intangible assets

(1) Other segment income includes bank owned life insurance income, and miscellaneous income.

(2) Other segment expenses include professional services, contract labor, telephone, investor relations, contributions, net OREO expense/(income), and miscellaneous expenses.

Intangible assets

(1) Other segment income includes net gains/(losses) on disposals of fixed assets, bank owned life insurance income, and miscellaneous income.

(2) Other segment expenses include professional services, contract labor, line rentals, investor relations, contributions, net OREO expense/(income), and miscellaneous expenses.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements