What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-06 compared with 2026-05-08 · 462 added, 164 removed, 1093 unchanged (36% of the section changed)

7 unchanged sentences

Investment securities – available for sale (at fair value)

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)

Investment securities – held to maturity, net of allowance for credit losses of $ 102 at June 30, 2026 and December 31, 2025 (fair value $ 146,368 at June 30, 2026 and $ 148,889 at December 31, 2025)

Equity investments not held for trading with readily determinable fair values

29 unchanged sentences

Authorized 25,000,000 shares;

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

issued and outstanding 6,453,836 shares at June 30, 2026 and 6,499,476 at December 31, 2025

Retained earnings

6 unchanged sentences

(In thousands, except per share data)

Three Months Ended

Six Months Ended

Interest income

51 unchanged sentences

First United Corporation and Subsidiaries

Consolidated Statements of Operations

(In thousands, except per share data)

Three Months Ended

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 - off-balance sheet credit exposures

Total credit loss expense

Net interest income after provision for credit losses

Other operating income

Net gains on sales of residential mortgage loans

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 Comprehensive Income

(In thousands)

Three Months Ended

Six Months Ended

Comprehensive Income

1 unchanged sentence

Available for sale securities:

Unrealized holding gain on investments with credit related impairment

Unrealized holding gains on investments with credit related impairment

Reclassification adjustment for accretable yield realized in income

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

Other comprehensive income on investments with credit related impairment

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

Reclassification adjustment for gains realized in income

Other comprehensive (loss)/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

4 unchanged sentences

Pension plan liability:

Unrealized holding losses on pension plan liability

Unrealized holding gains/(losses) on pension plan liability

Reclassification adjustment for amortization of unrecognized losses realized in income

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

Other comprehensive income on pension plan liability

Other comprehensive income before income tax

Income tax effect related to other comprehensive income

Other comprehensive income, net of tax

Comprehensive income

1 unchanged sentence

First United Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

(In thousands)

Three Months Ended

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 income on investments with credit related impairment

Unrealized holding gains on all other AFS investments

Other comprehensive income on all other AFS investments

Held to Maturity Securities

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

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 Changes in Shareholders’ Equity

7 unchanged sentences

Common stock issued - 7,841 shares

Stock repurchase - 60,600 shares

Common stock repurchased - 60,600 shares

Common stock dividend declared - $ 0.26 per share

Balance at March 31, 2026

Other comprehensive income

Stock based compensation, net of forfeitures

Common stock issued - 17,119 shares

Common stock repurchased - 10,000 shares

Common stock dividend declared - $ 0.26 per share

Balance at June 30, 2026

Comprehensive

3 unchanged sentences

Other comprehensive loss

Stock based compensation

Stock based compensation, net of forfeitures

Common stock issued - 7,538 shares

1 unchanged sentence

Balance at March 31, 2025

Other comprehensive income

Stock based compensation, net of forfeitures

Common stock issued - 15,977 shares

Common stock dividend declared - $ 0.22 per share

Balance at June 30, 2025

See accompanying notes to the consolidated financial statements

2 unchanged sentences

(In thousands)

Three Months Ended

Six Months Ended

Operating activities

2 unchanged sentences

Stock based compensation, net of forfeitures

Gains on sales of other real estate owned, net

Write-downs of other real estate owned, net

Originations of loans held for sale

2 unchanged sentences

Gains on disposal of fixed assets

Net increase in equity securities with readily determinable fair values

Net accretion of investment securities discounts and premiums- AFS

4 unchanged sentences

Amortization of operating lease right of use asset

Decrease in accrued interest receivable and other assets

Decrease/(Increase) in accrued interest receivable and other assets

Deferred tax expense /(benefit)

Amortization of operating lease liability

2 unchanged sentences

Investing activities

Proceeds from prepayments and maturities of investment securities - AFS

Proceeds from prepayments/calls and maturities of investment securities - AFS

Proceeds from prepayments and maturities of investment securities - HTM

3 unchanged sentences

Proceeds from sale of other repossessed assets

Proceeds from sale of other real estate owned

Proceeds from BOLI death benefit

Net decrease/(increase) in restricted stock

Net increase in equity securities with readily determinable fair values

Net (increase)/decrease in loans

Net increase in loans

Purchase of consumer loan pool

Purchases of premises and equipment, net

5 unchanged sentences

Net increase/(decrease) in short-term borrowings

Stock repurchase

Common stock repurchases

Payments of long-term borrowings

5 unchanged sentences

Interest paid

Non-cash investing activities:

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 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.

Operating results for the six- and three-month periods ended June 30, 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.

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

The Corporation has evaluated events and transactions occurring subsequent to the statement of financial condition date of June 30, 2026 and through the date on which these consolidated financial statements were issued, for items of potential recognition or disclosure.

Note 2 – Accounting Standards Issued but Not Yet Adopted

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

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

6 unchanged sentences

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

In July 2025, FASB issued ASU No.

2025-05, “Financial Instruments- Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets.” ASU No.

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 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.

In September 2025, FASB issued ASU No.

1 unchanged sentence

Targeted Improvements to the Accounting for Internal-Use Software.” ASU No.

2025-06 applies to all entities subject to internal-use software guidance in Subtopic 350-40 and website development costs in accordance with Subtopic 350-50.

2025-06 applies to all entities subject to internal-use software guidance in Accounting Standards Codification (“ASC”) Subtopic 350-40 and website development costs in accordance with Subtopic 350-50.

The amendments in ASU No.2025-06 remove all reference to prescriptive and sequential software development stages.

Therefore, an entity is required to start capitalizing software costs when both the following occur:

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.

(i) management has authorized and committed to funding the software project and (ii) 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 for annual periods beginning after December 15, 2027, though early adoption and retroactive application is permitted.

6 unchanged sentences

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 effective on a prospective basis for annual periods beginning after December 15, 2026, though early adoption is permitted.

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

16 unchanged sentences

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 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,

There were no anti-dilutive shares outstanding at June 30, 2026 or 2025.

The following tables set forth the calculation of basic and diluted earnings per common share for the six- and three-month periods ended June 30, 2026 and 2025:

Six months ended June 30,

(in thousands, except for per share amount)

2 unchanged sentences

Restricted stock units

Three months ended June 30,

(in thousands, except for per share amount)

Basic Earnings Per Share:

Diluted Earnings Per Share:

Restricted stock units

Note 4 – Investments

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

The following tables show a comparison of amortized cost and fair values of investment securities at June 30, 2026 and December 31, 2025:

(in thousands)

1 unchanged sentence

Estimated Fair Value

March 31, 2026

June 30, 2026

Available for Sale:

10 unchanged sentences

Allowance for Credit Losses

March 31, 2026

June 30, 2026

Held to Maturity:

29 unchanged sentences

Total held to maturity

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.

There was one call of an available-for-sale (“AFS”) security at par during each of the six- and three-month periods ended June 30, 2026.

There were no calls during the six- or three-month periods ended June 30, 2025.

There was no sales activity during the six- and three-month periods ended June 30, 2026 or 2025.

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

For any AFS debt security in an unrealized loss position, the Corporation first assesses whether it intends to sell, or it is more likely than not that the Corporation will be required to sell the security before recovery to its amortized cost basis.

1 unchanged sentence

For AFS debt securities that do not meet the aforementioned criteria, the Corporation evaluates whether any decline in fair value has resulted from credit losses or other factors.

In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors.

related to the security, among other factors.

If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security.

3 unchanged sentences

As a result, the amortized cost basis for such debt securities remained the same before and after the effective date of ASC Topic 326.

The effective interest rate on these debt securities was not changed.

The effective interest rate on these debt securities has not changed.

Amounts of OTTI that were recorded prior to January 1, 2023 are being accreted into income over the remaining life of the assets.

1 unchanged sentence

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.

7 unchanged sentences

With regard to securities issued by U.S.

government agencies and corporations, it is expected that the securities will not settle at prices that are less than the amortized cost bases of the securities, as such securities are backed by the full faith and credit of and/or guaranteed by the U.S.

government agencies and corporations, it is expected that the securities will not settle at prices that are less than the amortized cost basis of the securities, as such securities are backed by the full faith and credit of and/or guaranteed by the U.S.

Accordingly, no ACL has been recorded on these securities.

1 unchanged sentence

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

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:

At June 30, 2026, for HTM securities, there were no securities in non-accrual status and all were performing in accordance to their contractual terms.

As of both June 30, 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 June 30, 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)

March 31, 2026

June 30, 2026

Available for Sale:

10 unchanged sentences

(in thousands)

March 31, 2026

June 30, 2026

Held to Maturity:

29 unchanged sentences

Total held to maturity

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

The amortized cost and estimated fair value of securities by contractual maturities at June 30, 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.

March 31, 2026

June 30, 2026

(in thousands)

17 unchanged sentences

Total held to maturity

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.

At June 30, 2026 and December 31, 2025, AFS investment securities with an aggregate fair value of $ 90.0 million and $ 87.1 million, respectively, and HTM investment securities with an aggregate book value of $ 160.5 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 March 31, 2026 and December 31, 2025:

The following table summarizes the primary segments of the loan portfolio at June 30, 2026 and December 31, 2025:

(in thousands)

March 31, 2026

June 30, 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 March 31, 2026 and December 31, 2025:

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans at June 30, 2026 and December 31, 2025:

(in thousands)

March 31, 2026

June 30, 2026

Commercial real estate:

19 unchanged sentences

Residential mortgage - home equity

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.

Non-accrual loans that have been subject to partial charge-offs totaled $ 0.1 million at June 30, 2026 and $ 0.2 million at December 31, 2025.

Loans secured by 1-4 family residential real estate properties in the process of foreclosure totaled $ 1.2 million at June 30, 2026 and $ 0.5 million at December 31, 2025.

The increase was due to one mortgage loan of approximately $ 1.2 million that was moved to non-accrual status in the second quarter.

As a percentage of the loan portfolio, accruing loans past due 30 days or more increased to 0.50 % at June 30, 2026 compared to 0.32 % at December 31, 2025.

This increase was attributable to one large commercial loan.

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.

otherwise, the non-accrual or modified loan remains in the appropriate segment in the ACL model and associated reserves are adjusted based on changes in the discounted cash flows of the loan.

For a discussion with respect to reserve calculations regarding individually evaluated loans, refer to the “Nonrecurring Loans” section in Note 6, Fair Value of Financial Instruments.

The Corporation maintains an ACL at a level determined to be adequate to absorb expected credit losses associated with the Corporation’s financial instruments over the life of those instruments as of the balance sheet date.

The Corporation maintains an ACL at a level that management believes is adequate to absorb expected credit losses associated with the Corporation’s financial instruments over the life of those instruments as of the balance sheet date.

The Corporation develops and documents a systematic ACL methodology based on the following portfolio segments:

4 unchanged sentences

and (v) consumer.

The Corporation’s loan portfolio is

segmented by homogeneous loan types that behave similarly to economic cycles.

Corporation’s loan portfolio is segmented by homogeneous loan types that behave similarly to economic cycles.

The following is a discussion of the key risks by portfolio segment that management assesses in preparing the ACL.

16 unchanged sentences

The health and stability of state and local economies directly impacts each municipality’s tax basis and are important indicators of risk for this segment.

The ability of each municipality to increase taxes and fees to offset service requirements give this type of loan a very low risk profile in the continuum of the Corporation’s loan portfolio.

The ability of each municipality to increase taxes and fees to offset service requirements gives this type of loan a very low risk profile in the continuum of the Corporation’s loan portfolio.

Residential Mortgage- loans are secured by first and second liens such as home equity lines of credit and 1-4 family residential mortgages.

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

The following tables present the amortized cost basis of loans on a nonaccrual status at June 30, 2026 and December 31, 2025:

(in thousands)

2 unchanged sentences

Total Nonaccrual Loans

March 31, 2026

June 30, 2026

Commercial real estate

Non owner-occupied

All other CRE

15 unchanged sentences

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:

The following table summarizes the primary segments of the ACL at June 30, 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

June 30, 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 March 31, 2026 and December 31, 2025.

March 31, 2026

The following tables present the amortized cost basis of collateral-dependent, individually-evaluated loans as of June 30, 2026 and December 31, 2025.

June 30, 2026

(in thousands)

11 unchanged sentences

Residential mortgage

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

The following tables present the activity in the ACL for the six- and three-month periods ended June 30, 2026 and 2025.

(in thousands)

3 unchanged sentences

Credit loss expense/(credit)

ACL balance at March 31, 2026

ACL balance at June 30, 2026

Beginning balance at January 1, 2025

2 unchanged sentences

Credit loss expense/(credit)

ACL balance at March 31, 2025

ACL balance at June 30, 2025

Three months ended (in thousands)

ACL balance at April 1, 2026

Loan charge-offs

Recoveries collected

Credit loss expense/(credit)

ACL balance at June 30, 2026

ACL balance at April 1, 2025

Loan charge-offs

Recoveries collected

Credit loss expense/(credit)

ACL balance at June 30, 2025

The Corporation’s methodology for estimating the ACL includes:

42 unchanged sentences

Doubtful - Assets with all weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable.

Loss - Assets considered of such little value that its continuance on the books is not warranted.

Loss - Assets considered of such little value that their continuance on the books is not warranted.

This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical to defer writing off this basically worthless asset even though partial recovery may be affected in the future.

7 unchanged sentences

Total Portfolio Loans

March 31, 2026

June 30, 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

47 unchanged sentences

Total Portfolio Loans

March 31, 2026

June 30, 2026

Commercial real estate:

61 unchanged sentences

2022-02 to determine if the modification results in a new loan or a continuation of the existing loan.

Loan modifications to borrowers experiencing financial difficulties that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, or combinations of the listed

modifications.

Therefore, the disclosures related to loan restructurings are for modifications which have a direct impact on cash flows.

10 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 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:

The following tables present the amortized cost basis and the financial effect of loans modified to borrowers experiencing financial difficulty during the six- and three-month periods ended June 30, 2026 and 2025.

For the six months ended June 30, 2026, two new loans and one existing loan were modified and one existing modification was repaid .

During the second quarter of 2026, one new loan was added and one existing modification was repaid.

(in thousands)

2 unchanged sentences

Weighted Average Term and Principal Payment Extension

Three months ended March 31, 2026

Residential mortgage - term

Six months ended June 30, 2026

Owner-occupied commercial real estate

Commercial and industrial

(in thousands)

2 unchanged sentences

Weighted Average Term and Principal Payment Extension

Three months ended March 31, 2025

Six months ended June 30, 2025

Owner-occupied commercial real estate

Commercial and industrial

(in thousands)

Term Extension

Percentage of Total Loan Type

Weighted Average Term and Principal Payment Extension

Three months ended June 30, 2026

Commercial and industrial

(in thousands)

Term Extension

Percentage of Total Loan Type

Weighted Average Term and Principal Payment Extension

Three months ended June 30, 2025

Owner-occupied commercial real estate

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 three-month period ended March 31, 2026 have made all contractual payments.

The borrowers for whom loan modifications were made in the six- and three-month periods ended June 30, 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.

2 unchanged sentences

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.

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

18 unchanged sentences

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

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

At both June 30, 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 March 31, 2026 and December 31, 2025 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 both June 30, 2026 and December 31, 2025 and were 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.

2 unchanged sentences

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

Individually evaluated loans – Loans included in the table below are those that are considered individually evaluated with a specific allocation or with partial charge-offs, based upon the guidance of the loan impairment subsection of the Receivables Topic, ASC Section 310-10-35, under which the Corporation has measured impairment generally based on the fair value of the loan’s collateral.

2016-13, Financial Instruments - Credit Loses, under which the Corporation has measured impairment generally based on the fair value of the loan’s collateral.

Fair value consists of the loan balance less its valuation allowance and is generally determined based on independent third-party appraisals of the collateral or discounted cash flows based upon the expected proceeds.

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 recorded with a write-down to fair value recorded in other operating expenses.

Equity investments without readily determinable fair values- 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 March 31, 2026 and December 31, 2025 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 June 30, 2026 and December 31, 2025 were as follows:

Fair Value Measurements

at March 31, 2026 Using

at June 30, 2026 Using

Active Markets

10 unchanged sentences

Equity investments not held for trading with readily determinable fair values

Non-recurring:

Collateral dependent loans

Fair Value Measurements

17 unchanged sentences

Other real estate owned

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:

There were no transfers of assets between any levels of the fair value hierarchy for the six- or three-month periods ended June 30, 2026 or 2025.

For Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis as of June 30, 2026 and December 31, 2025, the significant unobservable inputs used in the fair value measurements were as follows:

(in thousands)

3 unchanged sentences

Discount Margin

Range of upper 200 s to mid 400 s

Range of mid to upper 400 bps

(in thousands)

3 unchanged sentences

Discount Margin

Range of upper 200 s to upper 400 s

Range of upper 200 to upper 400 bps

Non-recurring:

5 unchanged sentences

Marketability Discount

(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 three-month periods ended March 31, 2026 and 2025:

Fair Value Measurements

6 unchanged sentences

Included in other comprehensive income

Ending balance March 31, 2026

Total reductions due to call of investment

Ending balance June 30, 2026

Fair Value Measurements

6 unchanged sentences

Included in other comprehensive income

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.

Ending balance June 30, 2025

Fair Value Measurements

Using Significant Unobservable Inputs

(in thousands)

Investment Securities

Available for Sale

Beginning balance April 1, 2026

Total gains realized/unrealized:

Included in other comprehensive income

Total reductions due to call of investment

Ending balance June 30, 2026

Fair Value Measurements

Using Significant Unobservable Inputs

(in thousands)

Investment Securities

Available for Sale

Beginning balance April 1, 2025

Total gains realized/unrealized:

Included in other comprehensive income

Ending balance June 30, 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 six- or three-month periods ended June 30, 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:

March 31, 2026

June 30, 2026

Fair Value Measurements

37 unchanged sentences

Note 7 – Accumulated Other Comprehensive Loss

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:

The following table presents the changes in each component of accumulated other comprehensive loss for the six- and three-month periods ended June 30, 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, 2026

(in thousands)

3 unchanged sentences

Balance - March 31, 2025

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

Other comprehensive income/(loss)before reclassifications

Amounts reclassified from accumulated other comprehensive loss

Balance - June 30, 2025

The following tables present the components of other comprehensive loss for the six- and three-month periods ended June 30, 2026 and 2025:

Components of Other Comprehensive Income

(in thousands)

For the three months ended March 31, 2026

For the six months ended June 30, 2026

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

4 unchanged sentences

Unrealized holding losses

gains recognized in income

Net unrealized losses on all other AFS securities

Held to maturity securities:

Unrealized holding gains on securities transferred to held to maturity

amortization recognized in income

3 unchanged sentences

Pension Plan:

Unrealized net actuarial losses

Unrealized net actuarial gains

amortization of unrecognized losses

Net pension plan asset adjustment

Other comprehensive loss

Components of Other Comprehensive Loss

Other comprehensive income

Components of Other Comprehensive Income

(in thousands)

For the three months ended March 31, 2025

For the six months ended June 30, 2025

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

1 unchanged sentence

accretable yield recognized in income

Net unrealized losses on investments with credit related impairment

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 on securities transferred to held to maturity

amortization recognized in income

6 unchanged sentences

Net pension plan asset adjustment

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:

Other comprehensive income

Components of Other Comprehensive Income

(in thousands)

For the three months ended June 30, 2026

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:

amortization recognized in income

Net unrealized gains on HTM securities

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 June 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

Net unrealized gains on all other AFS securities

Held to maturity securities:

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

Other comprehensive income

The following tables present the details of amounts reclassified from accumulated other comprehensive loss for the six- and three-month periods ended June 30, 2026 and 2025:

Amounts Reclassified from

Three months ended

Six months ended

Accumulated Other Comprehensive Loss

5 unchanged sentences

Interest income on taxable investment securities

Credit for income tax expense

Provision for income tax expense

Net unrealized gains on held to maturity securities:

Interest income on taxable investment securities

Provision for income tax expense

Credit for income tax expense

Net pension plan asset adjustment:

Amortization of unrecognized losses

Other Expense

Other Operating Expenses

Credit for income tax expense

Total reclassifications for the period

Amounts Reclassified from

Three Months Ended

Accumulated Other Comprehensive Loss

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

Provision for income tax expense

Net unrealized gains on held to maturity securities:

Interest income on taxable investment securities

Credit for income tax expense

Net pension plan asset adjustment:

Amortization of unrecognized losses

Other Operating Expenses

Credit for income tax expense

Total reclassifications for the period

Note 8 - Equity Compensation Plan Information

N ote 8 - Equity Compensation Plan Information

At the 2018 Annual Meeting of Shareholders, First United Corporation’s shareholders approved the First United Corporation 2018 Equity Compensation Plan (the “Equity Plan”), which authorizes the issuance of up to 325,000 shares of common stock to employees, directors and qualifying consultants pursuant to stock options, stock appreciation rights, stock awards, dividend equivalents, and other stock-based awards.

4 unchanged sentences

In May 2026, a total of 10,448 fully vested shares of common stock were issued to directors, which had a grant date fair value of $ 37.89 per share.

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.

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.

Director stock compensation was $ 188,823 and $ 166,185 for the six-month periods ending June 30, 2026 and 2025, respectively.

Director stock compensation expense was $ 96,690 and $ 87,613 for the three-month periods ended June 30, 2026 and 2025, respectively.

Employee stock compensation was $ 63,457 and $ 18,596 for the six-month periods ended June 30, 2026 and 2025, respectively.

Employee stock compensation expense was $ 31,549 and $ 3,029 for the three-month periods ended June 30, 2026 and 2025, respectively.

Restricted Stock Units

13 unchanged sentences

On March 9, 2023, 2,079 shares underlying the time-vesting RSUs were issued to participants.

On March 9, 2024, 2,079 additional shares underlying the time-vesting RSUs were issued to participants.

On March 9, 2024, 2,079 additional shares underlying the time-vesting RSUs were issued to

participants.

On March 9, 2025, the remaining 2,080 shares underlying the RSUs were issued to participants.

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.

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.

Stock compensation expense was $ 26,145 and $ 55,290 for the six-month periods ended June 30, 2025 and 2024, respectively.

Stock compensation expense was $ 0 and $ 26,145 for each of the three-month periods ended June 30, 2025 and 2024, respectively.

All compensation expense related to these RSUs were recognized as of June 30, 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 was the three-year period that ended December 31, 2025.

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

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

3 unchanged sentences

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.

Stock compensation expense was $ 12,048 and $ 55,170 for the six-month periods ended June 30, 2026 and 2025, respectively.

Stock compensation expense was $ 0 and $ 27,585 for the three-month periods ended June 30, 2026 and 2025, respectively.

All compensation expense related to these RSUs were 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 $ 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.

On May 20, 2026, 1,576 shares underlying the time-vesting RSUs were issued to participants.

On May 7, 2026, Carissa Rodeheaver, Chairman of the Board, retired and a net of 3,023 shares underlying the performance-vesting RSUs and a net of 1,053 shares underlying her time-vesting RSUs were issued on a pro-rata basis.

Stock compensation expense was $ 72,138 and $ 56,628 for the six-month periods ended June 30, 2026 and 2025, respectively.

Stock compensation expense was $ 43,824 and $ 28,314 for the three-month period ended June 30, 2026 and 2025, respectively.

Unrecognized compensation expense related to these RSUs that have not vested was $ 64,404 as of June 30, 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.

2 unchanged sentences

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.

On May 7, 2026 at the time of Ms.

Rodeheaver’s retirement, a net of 1,085 shares underlying her performance-vesting RSUs and a net of 400 shares underlying her time-vesting RSUs were issued on a pro-rata basis.

Stock compensation expense was $ 78,096 and $ 45,147 for the six-month periods ended June 30, 2026 and 2025, respectively.

Stock compensation expense was $ 44,236 and $ 33,860 for the three-month periods ended June 30, 2026 and 2025, respectively.

Unrecognized compensation expense related to these RSUs that have not vested was $ 149,987 as of June 30, 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.

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

Stock compensation expense was $ 32,498 for both the six-month and three-month period ended June 30, 2026.

Unrecognized compensation expense related to these RSUs that have not vested was $ 357,477 as of June 30, 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.

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.

The fair value of the interest rate swap contracts was

$ 0.0 and $ 0.1 million at June 30, 2026 and December 31, 2025, respectively.

As of June 30, 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 six- and three-month periods ended June 30, 2026 and 2025.

Derivative in Cash Flow Hedging Relationships

15 unchanged sentences

Interest rate contracts:

Six months ended:

June 30, 2026

June 30, 2025

Three months ended:

March 31, 2026

March 31, 2025

June 30, 2026

June 30, 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 March 31, 2026 and December 31, 2025.

The following table presents the Bank’s capital ratios as of June 30, 2026 and December 31, 2025.

Total Capital (to risk-weighted assets)

2 unchanged sentences

Tier 1 Capital (to average assets)

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

As of June 30, 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 March 31, 2026 and December 31, 2025.

The following table summarizes deposits at June 30, 2026 and December 31, 2025.

(in thousands)

March 31, 2026

June 30, 2026

December 31, 2025

8 unchanged sentences

Note 12 – Borrowed Funds

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

The following is a summary of borrowings at June 30, 2026 and December 31, 2025:

(in thousands)

6 unchanged sentences

Approximate weighted average rate during the period

Overnight borrowings, weighted average interest rate of 3.75 % at June 30, 2026

Long-term borrowings:

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

Junior subordinated debt, bearing variable interest rate of 6.68 % at June 30, 2026 and 6.72 % at December 31, 2025

Total borrowings outstanding

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.

Repurchase agreements were secured by investment securities with a market value of $ 30.3 million and $ 24.8 million at June 30, 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 March 31, 2026 and December 31, 2025:

March 31, 2026

The following table presents contractual maturities of long-term borrowings outstanding at June 30, 2026 and December 31, 2025:

June 30, 2026

December 31, 2025

9 unchanged sentences

Pricing guidelines for products and services are across all regions.

Community Banking and Trust and Investment Services are delineated by the products and services that each segment offers.

Community Banking and Wealth Management are delineated by the products and services that each segment offers.

Business activity for the operating segments is as follows:

9 unchanged sentences

The accounting policies of each reportable segment are the same as those of our consolidated entity except that expenses for consolidated back-office operations and general overhead-type expenses such as executive administration, accounting, information technology and human resources are recorded in the Community Banking segment and reimbursed by the Wealth Management segment through a monthly management fee based on estimated uses of those services.

An internal team of the Corporation’s executive directors including the Chief Executive Officer, Chief Financial Officer, and Chief Wealth Officer serve as the Corporation’s Chief Operating Decision Maker (“CODM”).

The CODM reviews actual net income verses budgeted net income to assess segment performance on a monthly basis and to make decisions about allocating capital and personnel to the segments.

An internal team of the Corporation’s executive officers including the Chief Executive Officer, Chief Financial Officer, and Chief Wealth Officer serve as the Corporation’s Chief Operating Decision Maker (“CODM”).

The CODM reviews actual net income versus budgeted net income to assess segment performance on a monthly basis and to make decisions about allocating capital and personnel to the segments.

Financial results by operating segment, including significant expense categories provided to the CODM are detailed below.

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

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

The Wealth Management segment excludes off-balance-sheet assets under management with a total fair value of $ 1.9 billion at June 30, 2026 and $ 1.8 billion at December 31, 2025.

Information for the operating segments for the six- and three-month periods ended June 30, 2026 and 2025 is presented in the following tables:

Six months ended

June 30, 2026

(in thousands)

27 unchanged sentences

Amortization of intangible assets

Intangible assets

Goodwill and other intangibles

(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

Six months ended

June 30, 2025

(in thousands)

27 unchanged sentences

Amortization of intangible assets

Intangible assets

Goodwill and other intangibles

(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.

For the three months ended

June 30, 2026

(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

Goodwill and other intangibles

(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.

For the three months ended

June 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

Goodwill and other intangibles

(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