FIRST UNITED CORP/MD/ 10-Q

Item 1. Financial Statements First United Corporation and Subsidiaries Consolidated Statements of Financial Condition (In thousands, except share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 ​ ​ ​ December 31, 2025 ​ ​ (unaudited) ​ (audited) Assets ​ ​ ​ ​ ​ ​ Cash and due from banks ​ $ 84,195 ​ $ 129,830 Interest bearing deposits in banks ​ ​ 993 ​ ​ 1,782 Cash and cash equivalents ​ ​ 85,188 ​ ​ 131,612 Investment securities – available for sale (at fair value) ​ ​ 107,997 ​ ​ 107,144 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) ​ ​ 170,259 ​ ​ 171,361 Equity investments not held for trading with readily determinable fair values ​ ​ 1,044 ​ ​ 1,029 Restricted investment in bank stock, at cost ​ ​ 1,621 ​ ​ 4,630 Loans held for sale ​ ​ — ​ ​ 130 Loans ​ ​ 1,572,131 ​ ​ 1,521,704 Unearned fees ​ ​ ( 592 ) ​ ​ ( 476 ) Allowance for credit losses ​ ​ ( 20,591 ) ​ ​ ( 19,470 ) Net loans ​ ​ 1,550,948 ​ ​ 1,501,758 Premises and equipment, net ​ ​ 29,550 ​ ​ 29,665 Goodwill and other intangibles ​ ​ 11,279 ​ ​ 11,444 Bank owned life insurance ​ ​ 50,501 ​ ​ 50,360 Deferred tax assets ​ ​ 8,072 ​ ​ 8,730 Other real estate owned ​ ​ — ​ ​ 1,083 Other repossessed assets ​ ​ 2,780 ​ ​ 2,802 Right of use assets ​ ​ 862 ​ ​ 1,015 Pension asset ​ ​ 24,044 ​ ​ 20,798 Accrued interest receivable ​ ​ 7,602 ​ ​ 7,904 Trust receivable ​ ​ 5,238 ​ ​ 9,824 Other assets ​ ​ 25,107 ​ ​ 26,164 Total Assets ​ $ 2,082,092 ​ $ 2,087,453 Liabilities and Shareholders’ Equity ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ Non-interest bearing deposits ​ $ 441,365 ​ $ 453,036 Interest bearing deposits ​ ​ 1,294,148 ​ ​ 1,282,113 Total deposits ​ ​ 1,735,513 ​ ​ 1,735,149 Short-term borrowings ​ ​ 69,233 ​ ​ 17,661 Long-term borrowings ​ ​ 30,929 ​ ​ 95,929 Operating lease liability ​ ​ 1,009 ​ ​ 1,180 SERP deferred compensation ​ ​ 9,099 ​ ​ 9,008 Allowance for credit losses on unfunded commitments ​ ​ 1,463 ​ ​ 1,218 Accrued interest payable ​ ​ 844 ​ ​ 953 Other liabilities ​ ​ 19,950 ​ ​ 21,031 Dividends payable ​ ​ 1,678 ​ ​ 1,690 Total Liabilities ​ ​ 1,869,718 ​ ​ 1,883,819 Shareholders’ Equity: ​ ​ ​ ​ ​ ​ Common Stock – par value $ 0.01 per share; Authorized 25,000,000 shares; issued and outstanding 6,453,836 shares at June 30, 2026 and 6,499,476 at December 31, 2025 ​ ​ 64 ​ ​ 65 Surplus ​ ​ 19,514 ​ ​ 21,551 Retained earnings ​ ​ 216,262 ​ ​ 207,284 Accumulated other comprehensive loss, net of tax ​ ​ ( 23,466 ) ​ ​ ( 25,266 ) Total Shareholders’ Equity ​ ​ 212,374 ​ ​ 203,634 Total Liabilities and Shareholders’ Equity ​ $ 2,082,092 ​ $ 2,087,453 ​ See accompanying notes to the consolidated financial statements ​ 3 Table of Contents First United Corporation and Subsidiaries Consolidated Statements of Operations (In thousands, except per share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ June 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ (unaudited) Interest income ​ ​ ​ ​ ​ ​ Interest and fees on loans ​ $ 46,281 ​ $ 44,049 Interest on investment securities ​ ​ ​ ​ ​ ​ Taxable ​ ​ 3,787 ​ ​ 3,539 Exempt from federal income tax ​ ​ 118 ​ ​ 102 Total investment income ​ ​ 3,905 ​ ​ 3,641 Other ​ ​ 1,694 ​ ​ 1,243 Total interest income ​ ​ 51,880 ​ ​ 48,933 Interest expense ​ ​ ​ ​ ​ ​ Interest on deposits: ​ ​ ​ ​ ​ ​ Savings ​ ​ 81 ​ ​ 88 Interest-bearing transaction accounts ​ ​ 10,697 ​ ​ 10,304 Time deposits ​ ​ 2,886 ​ ​ 3,079 Total interest on deposits ​ ​ 13,664 ​ ​ 13,471 Interest on short-term borrowings ​ ​ 37 ​ ​ 41 Interest on long-term borrowings ​ ​ 1,519 ​ ​ 2,698 Total interest expense ​ ​ 15,220 ​ ​ 16,210 Net interest income ​ ​ 36,660 ​ ​ 32,723 Credit loss expense ​ ​ ​ ​ ​ ​ Credit loss expense - loans ​ ​ 1,415 ​ ​ 1,385 Credit loss expense - off-balance sheet credit exposures ​ ​ 245 ​ ​ 131 Total credit loss expense ​ ​ 1,660 ​ ​ 1,516 Net interest income after provision for credit losses ​ ​ 35,000 ​ ​ 31,207 Other operating income ​ ​ ​ ​ ​ ​ Net gains on sales of residential mortgage loans ​ ​ 125 ​ ​ 238 Net gains on disposal of fixed assets ​ ​ 46 ​ ​ — Net gains ​ ​ 171 ​ ​ 238 Other Income ​ ​ ​ ​ ​ ​ Service charges on deposit accounts ​ ​ 1,115 ​ ​ 1,124 Other service charges ​ ​ 393 ​ ​ 420 Trust department ​ ​ 5,238 ​ ​ 4,709 Debit card income ​ ​ 1,977 ​ ​ 1,904 Bank owned life insurance ​ ​ 916 ​ ​ 690 Brokerage commissions ​ ​ 770 ​ ​ 791 Other ​ ​ 118 ​ ​ 124 Total other income ​ ​ 10,527 ​ ​ 9,762 Total other operating income ​ ​ 10,698 ​ ​ 10,000 Other operating expenses ​ ​ ​ ​ ​ ​ Salaries and employee benefits ​ ​ 16,358 ​ ​ 14,650 FDIC premiums ​ ​ 553 ​ ​ 512 Equipment expense ​ ​ 1,046 ​ ​ 1,143 Occupancy expense of premises ​ ​ 1,415 ​ ​ 1,364 Data processing expense ​ ​ 3,403 ​ ​ 3,103 Marketing expense ​ ​ 427 ​ ​ 434 Professional services ​ ​ 3,272 ​ ​ 1,065 Contract labor ​ ​ 355 ​ ​ 329 Telephone ​ ​ 189 ​ ​ 194 Other real estate owned expense, net ​ ​ 182 ​ ​ 300 Investor relations ​ ​ 145 ​ ​ 194 Contributions ​ ​ 146 ​ ​ 134 Other ​ ​ 1,967 ​ ​ 2,128 Total other operating expenses ​ ​ 29,458 ​ ​ 25,550 Income before income tax expense ​ $ 16,240 ​ $ 15,657 Provision for income tax expense ​ ​ 3,910 ​ ​ 3,867 Net Income ​ $ 12,330 ​ $ 11,790 Basic net income per share ​ $ 1.91 ​ $ 1.82 Diluted net income per share ​ $ 1.90 ​ $ 1.81 Weighted average number of basic shares outstanding ​ ​ 6,467 ​ ​ 6,482 Weighted average number of diluted shares outstanding ​ ​ 6,478 ​ ​ 6,498 Dividends declared per share ​ $ 0.52 ​ $ 0.44 ​ See accompanying notes to the consolidated financial statements ​ ​ ​ 4 Table of Contents First United Corporation and Subsidiaries Consolidated Statements of Operations (In thousands, except per share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ June 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ (Unaudited) Interest income ​ ​ ​ ​ ​ ​ Interest and fees on loans ​ $ 23,779 ​ $ 22,294 Interest on investment securities ​ ​ ​ ​ ​ ​ Taxable ​ ​ 1,907 ​ ​ 1,776 Exempt from federal income tax ​ ​ 59 ​ ​ 57 Total investment income ​ ​ 1,966 ​ ​ 1,833 Other ​ ​ 424 ​ ​ 744 Total interest income ​ ​ 26,169 ​ ​ 24,871 Interest expense ​ ​ ​ ​ ​ ​ Interest on deposits: ​ ​ ​ ​ ​ ​ Savings ​ ​ 43 ​ ​ 45 Interest-bearing transaction accounts ​ ​ 5,353 ​ ​ 5,104 Time deposits ​ ​ 1,637 ​ ​ 1,639 Total interest on deposits ​ ​ 7,033 ​ ​ 6,788 Interest on short-term borrowings ​ ​ 26 ​ ​ 21 Interest on long-term borrowings ​ ​ 524 ​ ​ 1,355 Total Interest Expense ​ ​ 7,583 ​ ​ 8,164 Net Interest income ​ ​ 18,586 ​ ​ 16,707 Credit loss expense ​ ​ ​ ​ ​ ​ Credit loss expense - loans ​ ​ 736 ​ ​ 728 Credit loss expense - off-balance sheet credit exposures ​ ​ 45 ​ ​ 132 Total credit loss expense ​ ​ 781 ​ ​ 860 Net interest income after provision for credit losses ​ ​ 17,805 ​ ​ 15,847 Other operating income ​ ​ ​ ​ ​ ​ Net gains on sales of residential mortgage loans ​ ​ 39 ​ ​ 146 Net gains ​ ​ 39 ​ ​ 146 Other Income ​ ​ ​ ​ ​ ​ Service charges on deposit accounts ​ ​ 568 ​ ​ 577 Other service charges ​ ​ 204 ​ ​ 214 Trust department ​ ​ 2,684 ​ ​ 2,386 Debit card income ​ ​ 1,046 ​ ​ 983 Bank owned life insurance ​ ​ 377 ​ ​ 349 Brokerage commissions ​ ​ 388 ​ ​ 370 Other ​ ​ 52 ​ ​ 61 Total other income ​ ​ 5,319 ​ ​ 4,940 Total other operating income ​ ​ 5,358 ​ ​ 5,086 Other operating expenses ​ ​ ​ ​ ​ ​ Salaries and employee benefits ​ ​ 8,157 ​ ​ 7,319 FDIC premiums ​ ​ 274 ​ ​ 267 Equipment expense ​ ​ 525 ​ ​ 565 Occupancy expense of premises ​ ​ 690 ​ ​ 675 Data processing expense ​ ​ 1,739 ​ ​ 1,600 Marketing expense ​ ​ 193 ​ ​ 196 Professional services ​ ​ 2,702 ​ ​ 589 Contract labor ​ ​ 189 ​ ​ 166 Telephone ​ ​ 93 ​ ​ 96 Other real estate owned expense, net ​ ​ 59 ​ ​ 208 Investor relations ​ ​ 85 ​ ​ 132 Contributions ​ ​ 81 ​ ​ 78 Other ​ ​ 978 ​ ​ 1,083 Total other operating expenses ​ ​ 15,765 ​ ​ 12,974 Income before income tax expense ​ $ 7,398 ​ $ 7,959 Provision for income tax expense ​ ​ 1,731 ​ ​ 1,975 Net Income ​ $ 5,667 ​ $ 5,984 Basic net income per share ​ $ 0.88 ​ $ 0.92 Diluted net income per share ​ $ 0.88 ​ $ 0.92 Weighted average number of basic shares outstanding ​ ​ 6,451 ​ ​ 6,489 Weighted average number of diluted shares outstanding ​ ​ 6,461 ​ ​ 6,506 Dividends declared per share ​ $ 0.26 ​ $ 0.22 ​ ​ See accompanying notes to the consolidated financial statements ​ 5 Table of Contents First United Corporation and Subsidiaries Consolidated Statements of Comprehensive Income (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ June 30, ​ ​ 2026 ​ 2025 Comprehensive Income ​ (unaudited) Net Income ​ $ 12,330 ​ $ 11,790 Other comprehensive income, net of tax and reclassification adjustments: ​ ​ ​ ​ ​ ​ Available for sale securities: ​ ​ ​ ​ ​ ​ Unrealized holding gains on investments with credit related impairment ​ ​ 417 ​ ​ 506 Reclassification adjustment for accretable yield realized in income ​ ​ 101 ​ ​ 101 Other comprehensive income on investments with credit related impairment ​ ​ 316 ​ ​ 405 ​ ​ ​ ​ ​ ​ ​ Unrealized holding (losses)/gains on all other AFS investments ​ ​ ( 673 ) ​ ​ 2,334 Other comprehensive (loss)/income on all other AFS investments ​ ​ ( 673 ) ​ ​ 2,334 ​ ​ ​ ​ ​ ​ ​ Held to maturity securities ​ ​ ​ ​ ​ ​ Reclassification adjustment for amortization realized in income ​ ​ ( 319 ) ​ ​ ( 317 ) Other comprehensive income on HTM investments ​ ​ 319 ​ ​ 317 ​ ​ ​ ​ ​ ​ ​ Cash flow hedges: ​ ​ ​ ​ ​ ​ Unrealized holding losses on cash flow hedges ​ ​ ( 76 ) ​ ​ ( 189 ) Other comprehensive loss on cash flow hedges ​ ​ ( 76 ) ​ ​ ( 189 ) ​ ​ ​ ​ ​ ​ ​ Pension plan liability: ​ ​ ​ ​ ​ ​ Unrealized holding gains/(losses) on pension plan liability ​ ​ 2,378 ​ ​ ( 23 ) Reclassification adjustment for amortization of unrecognized losses realized in income ​ ​ ( 194 ) ​ ​ ( 265 ) Other comprehensive income on pension plan liability ​ ​ 2,572 ​ ​ 242 ​ ​ ​ ​ ​ ​ ​ Other comprehensive income before income tax ​ ​ 2,458 ​ ​ 3,109 Income tax effect related to other comprehensive income ​ ​ ( 658 ) ​ ​ ( 838 ) ​ ​ ​ ​ ​ ​ ​ Other comprehensive income, net of tax ​ ​ 1,800 ​ ​ 2,271 Comprehensive income ​ $ 14,130 ​ $ 14,061 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ See accompanying notes to the consolidated financial statements ​ 6 Table of Contents First United Corporation and Subsidiaries Consolidated Statements of Comprehensive Income (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ June 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Comprehensive Income ​ (Unaudited) Net Income ​ $ 5,667 ​ $ 5,984 Other comprehensive income, net of tax and reclassification adjustments: ​ ​ ​ ​ ​ ​ Available for sale securities: ​ ​ ​ ​ ​ ​ Unrealized holding gains on investments with credit related impairment ​ ​ 197 ​ ​ 498 Reclassification adjustment for accretable yield realized in income ​ ​ 50 ​ ​ 51 Other comprehensive income on investments with credit related impairment ​ ​ 147 ​ ​ 447 ​ ​ ​ ​ ​ ​ ​ Unrealized holding gains on all other AFS investments ​ ​ 44 ​ ​ 485 Other comprehensive income on all other AFS investments ​ ​ 44 ​ ​ 485 ​ ​ ​ ​ ​ ​ ​ Held to Maturity Securities ​ ​ ​ ​ ​ ​ Reclassification adjustment for amortization realized in income ​ ​ ( 161 ) ​ ​ ( 163 ) Other comprehensive income on HTM investments ​ ​ 161 ​ ​ 163 ​ ​ ​ ​ ​ ​ ​ Cash flow hedges: ​ ​ ​ ​ ​ ​ Unrealized holding losses on cash flow hedges ​ ​ — ​ ​ ( 81 ) Other comprehensive loss on cash flow hedges ​ ​ — ​ ​ ( 81 ) ​ ​ ​ ​ ​ ​ ​ Pension plan liability: ​ ​ ​ ​ ​ ​ Unrealized holding gains on pension plan liability ​ ​ 3,571 ​ ​ 2,105 Reclassification adjustment for amortization of unrecognized losses realized in income ​ ​ ( 97 ) ​ ​ ( 133 ) Other comprehensive income on pension plan liability ​ ​ 3,668 ​ ​ 2,238 ​ ​ ​ ​ ​ ​ ​ Other comprehensive income before income tax ​ ​ 4,020 ​ ​ 3,252 Income tax effect related to other comprehensive income ​ ​ ( 1,069 ) ​ ​ ( 870 ) ​ ​ ​ ​ ​ ​ ​ Other comprehensive income, net of tax ​ ​ 2,951 ​ ​ 2,382 Comprehensive income ​ $ 8,618 ​ $ 8,366 ​ See accompanying notes to the consolidated financial statements ​ ​ 7 Table of Contents First United Corporation and Subsidiaries Consolidated Statements of Changes in Shareholders’ Equity (In thousands, except per share data, unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ ​ ​ Surplus ​ ​ ​ Retained Earnings ​ ​ ​ Accumulated Other Comprehensive Loss, Net of Tax ​ ​ ​ Total Shareholders' Equity Balance at January 1, 2026 ​ $ 65 ​ $ 21,551 ​ $ 207,284 ​ $ ( 25,266 ) ​ $ 203,634 Net income ​ ​ ​ ​ ​ ​ ​ ​ 6,663 ​ ​ ​ ​ ​ 6,663 Other comprehensive loss ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 1,151 ) ​ ​ ( 1,151 ) Stock based compensation, net of forfeitures ​ ​ ​ ​ ​ ( 109 ) ​ ​ ​ ​ ​ ​ ​ ​ ( 109 ) Common stock issued - 7,841 shares ​ ​ ​ ​ ​ 89 ​ ​ ​ ​ ​ ​ ​ ​ 89 Common stock repurchased - 60,600 shares ​ ​ ( 1 ) ​ ​ ( 2,171 ) ​ ​ ​ ​ ​ ​ ​ ​ ( 2,172 ) Common stock dividend declared - $ 0.26 per share ​ ​ ​ ​ ​ ​ ​ ​ ( 1,692 ) ​ ​ ​ ​ ​ ( 1,692 ) Balance at March 31, 2026 ​ $ 64 ​ $ 19,360 ​ $ 212,255 ​ $ ( 26,417 ) ​ $ 205,262 Net income ​ ​ ​ ​ ​ ​ ​ ​ 5,667 ​ ​ ​ ​ ​ 5,667 Other comprehensive income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2,951 ​ ​ 2,951 Stock based compensation, net of forfeitures ​ ​ 1 ​ ​ 433 ​ ​ ​ ​ ​ ​ ​ ​ 434 Common stock issued - 17,119 shares ​ ​ ​ ​ ​ 91 ​ ​ ​ ​ ​ ​ ​ ​ 91 Common stock repurchased - 10,000 shares ​ ​ ( 1 ) ​ ​ ( 370 ) ​ ​ ​ ​ ​ ​ ​ ​ ( 371 ) Common stock dividend declared - $ 0.26 per share ​ ​ ​ ​ ​ ​ ​ ​ ( 1,660 ) ​ ​ ​ ​ ​ ( 1,660 ) Balance at June 30, 2026 ​ $ 64 ​ $ 19,514 ​ $ 216,262 ​ $ ( 23,466 ) ​ $ 212,374 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ ​ ​ Surplus ​ ​ ​ Retained Earnings ​ ​ ​ Accumulated Other Comprehensive Loss, Net of Tax ​ ​ ​ Total Shareholders' Equity Balance at January 1, 2025 ​ $ 65 ​ $ 20,476 ​ $ 189,002 ​ $ ( 30,248 ) ​ $ 179,295 Net income ​ ​ ​ ​ ​ ​ ​ ​ 5,806 ​ ​ ​ ​ ​ 5,806 Other comprehensive loss ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 111 ) ​ ​ ( 111 ) Stock based compensation, net of forfeitures ​ ​ ​ ​ ​ 55 ​ ​ ​ ​ ​ ​ ​ ​ 55 Common stock issued - 7,538 shares ​ ​ ​ ​ ​ 75 ​ ​ ​ ​ ​ ​ ​ ​ 75 Common stock dividend declared - $ 0.22 per share ​ ​ ​ ​ ​ ​ ​ ​ ( 1,426 ) ​ ​ ​ ​ ​ ( 1,426 ) Balance at March 31, 2025 ​ $ 65 ​ $ 20,606 ​ $ 193,382 ​ $ ( 30,359 ) ​ $ 183,694 Net income ​ ​ ​ ​ ​ ​ ​ ​ 5,984 ​ ​ ​ ​ ​ 5,984 Other comprehensive income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2,382 ​ ​ 2,382 Stock based compensation, net of forfeitures ​ ​ ​ ​ ​ 440 ​ ​ ​ ​ ​ ​ ​ ​ 440 Common stock issued - 15,977 shares ​ ​ ​ ​ ​ 75 ​ ​ ​ ​ ​ ​ ​ ​ 75 Common stock dividend declared - $ 0.22 per share ​ ​ ​ ​ ​ ​ ​ ​ ( 1,428 ) ​ ​ ​ ​ ​ ( 1,428 ) Balance at June 30, 2025 ​ $ 65 ​ $ 21,121 ​ $ 197,938 ​ $ ( 27,977 ) ​ $ 191,147 ​ See accompanying notes to the consolidated financial statements ​ ​ ​ 8 Table of Contents First United Corporation and Subsidiaries Consolidated Statements of Cash Flows (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ June 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ (unaudited) Operating activities ​ ​ ​ ​ ​ ​ Net income ​ $ 12,330 ​ $ 11,790 Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ Provision for credit losses ​ ​ 1,660 ​ ​ 1,516 Depreciation ​ ​ 1,215 ​ ​ 1,311 Stock based compensation, net of forfeitures ​ ​ 325 ​ ​ 495 Gains on sales of other real estate owned, net ​ ​ ( 5 ) ​ ​ — Write-downs of other real estate owned, net ​ ​ — ​ ​ 27 Originations of loans held for sale ​ ​ ( 1,690 ) ​ ​ ( 3,172 ) Proceeds from sales of loans held for sale ​ ​ 1,945 ​ ​ 4,106 Gains from sales of loans held for sale ​ ​ ( 125 ) ​ ​ ( 238 ) Gains on disposal of fixed assets ​ ​ ( 46 ) ​ ​ — Net increase in equity securities with readily determinable fair values ​ ​ ( 15 ) ​ ​ — Net accretion of investment securities discounts and premiums- AFS ​ ​ ( 167 ) ​ ​ ( 94 ) Net accretion of investment securities discounts and premiums- HTM ​ ​ ( 284 ) ​ ​ ( 271 ) Amortization of intangible assets ​ ​ 165 ​ ​ 164 Earnings on bank owned life insurance ​ ​ ( 916 ) ​ ​ ( 690 ) Amortization of deferred loan fees, net ​ ​ ( 68 ) ​ ​ ( 78 ) Amortization of operating lease right of use asset ​ ​ 153 ​ ​ 146 Decrease/(Increase) in accrued interest receivable and other assets ​ ​ 4,903 ​ ​ ( 4,370 ) Deferred tax expense /(benefit) ​ ​ 658 ​ ​ ( 32 ) Amortization of operating lease liability ​ ​ ( 171 ) ​ ​ ( 153 ) Decrease in accrued interest payable and other liabilities ​ ​ ( 1,143 ) ​ ​ ( 2,497 ) Net cash provided by operating activities ​ ​ 18,724 ​ ​ 7,960 Investing activities ​ ​ ​ ​ ​ ​ Proceeds from prepayments/calls and maturities of investment securities - AFS ​ ​ 5,271 ​ ​ 2,576 Proceeds from prepayments and maturities of investment securities - HTM ​ ​ 4,090 ​ ​ 3,169 Purchases of investment securities - AFS ​ ​ ( 6,317 ) ​ ​ ( 8,832 ) Purchases of investment securities - HTM ​ ​ ( 2,704 ) ​ ​ ( 2,352 ) Purchase of equity securities with readily determinable fair values ​ ​ — ​ ​ ( 1,008 ) Proceeds from sale of other repossessed assets ​ ​ 110 ​ ​ — Proceeds from sale of other real estate owned ​ ​ 1,137 ​ ​ — Proceeds from BOLI death benefit ​ ​ 775 ​ ​ — Net decrease/(increase) in restricted stock ​ ​ 3,009 ​ ​ ( 47 ) Net increase in loans ​ ​ ( 41,913 ) ​ ​ ( 22,030 ) Purchase of consumer loan pool ​ ​ ( 8,761 ) ​ ​ — Purchases of premises and equipment, net ​ ​ ( 1,054 ) ​ ​ ( 874 ) Net cash used in investing activities ​ ​ ( 46,357 ) ​ ​ ( 29,398 ) Financing activities ​ ​ ​ ​ ​ ​ Net increase in deposits ​ ​ 364 ​ ​ 39,378 Issuance of common stock ​ ​ 180 ​ ​ 150 Cash dividends paid on common stock ​ ​ ( 3,364 ) ​ ​ ( 2,849 ) Net increase/(decrease) in short-term borrowings ​ ​ 51,572 ​ ​ ( 14,455 ) Common stock repurchases ​ ​ ( 2,543 ) ​ ​ — Payments of long-term borrowings ​ ​ ( 65,000 ) ​ ​ — Net cash (used in)/provided by financing activities ​ ​ ( 18,791 ) ​ ​ 22,224 (Decrease)/increase in cash and cash equivalents ​ ​ ( 46,424 ) ​ ​ 786 Cash and cash equivalents at beginning of the year ​ ​ 131,612 ​ ​ 78,327 Cash and cash equivalents at end of period ​ $ 85,188 ​ $ 79,113 Supplemental information ​ ​ ​ ​ ​ ​ Interest paid ​ $ 15,274 ​ $ 15,761 Taxes paid ​ $ 4,034 ​ $ 3,668 Non-cash investing activities: ​ ​ ​ ​ ​ ​ Transfers from loans to other repossessed assets ​ $ 88 ​ $ — ​ See accompanying notes to the consolidated financial statements 9 Table of Contents FIRST UNITED CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1 – Basis of Presentation The financial information is presented in accordance with generally accepted accounting principles and general practice for financial institutions in the United States of America (“GAAP”). 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 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. 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. In the opinion of management, all adjustments (all of which are of a normal recurring nature) that are necessary for a fair statement are reflected in the unaudited condensed consolidated financial statements. Principles of Consolidation The consolidated financial statements include the accounts of First United Corporation, First United Bank & Trust (the “Bank”), First United Statutory Trust I, First United Statutory Trust II, OakFirst Loan Center, LLC, OakFirst Loan Center, Inc. and First OREO Trust. All significant inter-company accounts and transactions have been eliminated. 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 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): Disaggregation of Income Statement Expenses.” ASU No. 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. ASU No. 2024-03 requires new financial statement disclosures in tabular format, disaggregating information about prescribed categories underlying any relevant income statement expense caption. The prescribed categories include, among other things, employee compensation, depreciation, and intangible asset amortization. Additionally, entities must disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. ASU No. 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. ASU No. 2024-03 is not expected to have a material impact on our financial statements. ​ In September 2025, FASB issued ASU No. 2025-06, “Intangibles- Goodwill and Other Internal Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” ASU No. 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: (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed 10 Table of Contents and the software will be used to perform the function intended. ASU No. 2025-06 is effective on a prospective basis for annual periods beginning after December 15, 2027, though early adoption and retroactive application is permitted. ASU No. 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. ASU No. 2025-08 is effective on a prospective basis for annual periods beginning after December 15, 2026, though early adoption is permitted. ASU No. 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. ASU No. 2025-09 is effective on a prospective basis for annual periods beginning after December 15, 2026, though early adoption and retroactive application is permitted. ASU No. 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. ASU No. 2025-11 is effective on a prospective basis for annual periods beginning after December 15, 2027, though early adoption and retroactive application is permitted. ASU No. 2025-11 is not expected to have a material impact on our financial statements. ​ Note 3 – Earnings Per Share Basic earnings per share is derived by dividing net income available to shareholders by the weighted-average number of common shares outstanding during the period and does not include the effect of any potentially dilutive common stock equivalents. 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 June 30, 2026 or 2025. ​ 11 Table of Contents 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, ​ ​ 2026 ​ 2025 ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ Per Share ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ Per Share (in thousands, except for per share amount) ​ Income ​ Shares ​ Amount ​ Income ​ Shares ​ Amount Basic Earnings Per Share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 12,330 ​ 6,467 ​ $ 1.91 ​ $ 11,790 ​ 6,482 ​ $ 1.82 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted Earnings Per Share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restricted stock units ​ ​ ​ ​ 11 ​ ​ ​ ​ ​ ​ ​ 16 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 12,330 ​ 6,478 ​ $ 1.90 ​ $ 11,790 ​ 6,498 ​ $ 1.81 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ ​ 2026 ​ 2025 ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ Average ​ Per Share ​ ​ ​ ​ Average ​ Per Share (in thousands, except for per share amount) ​ Income ​ Shares ​ Amount ​ Income ​ Shares ​ Amount Basic Earnings Per Share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 5,667 ​ 6,451 ​ $ 0.88 ​ $ 5,984 ​ 6,489 ​ $ 0.92 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted Earnings Per Share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restricted stock units ​ ​ ​ ​ 10 ​ ​ ​ ​ ​ ​ ​ 17 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 5,667 ​ 6,461 ​ $ 0.88 ​ $ 5,984 ​ 6,506 ​ $ 0.92 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Note 4 – Investments 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) ​ ​ ​ Amortized Cost ​ ​ ​ Gross Unrealized Gains ​ ​ ​ Gross Unrealized Losses ​ ​ ​ Allowance for Credit Losses ​ ​ ​ Estimated Fair Value June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for Sale: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government agencies ​ $ 2,000 ​ $ — ​ $ 624 ​ $ — ​ $ 1,376 Residential mortgage-backed agencies ​ ​ 24,601 ​ ​ 6 ​ ​ 3,220 ​ ​ — ​ ​ 21,387 Commercial mortgage-backed agencies ​ ​ 40,901 ​ ​ — ​ ​ 8,230 ​ ​ — ​ ​ 32,671 Collateralized mortgage obligations ​ ​ 28,387 ​ ​ — ​ ​ 2,720 ​ ​ — ​ ​ 25,667 Obligations of states and political subdivisions ​ ​ 10,968 ​ ​ 55 ​ ​ 139 ​ ​ — ​ ​ 10,884 Corporate bonds ​ ​ 1,000 ​ ​ — ​ ​ 46 ​ ​ — ​ ​ 954 Collateralized debt obligations ​ ​ 17,204 ​ ​ — ​ ​ 2,146 ​ ​ — ​ ​ 15,058 Total available for sale ​ $ 125,061 ​ $ 61 ​ $ 17,125 ​ $ — ​ $ 107,997 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 12 Table of Contents (in thousands) ​ ​ ​ Amortized Cost ​ ​ ​ Gross Unrecognized Gains ​ ​ ​ Gross Unrecognized Losses ​ ​ ​ Estimated Fair Value ​ ​ ​ Allowance for Credit Losses June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Held to Maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government agencies ​ $ 68,744 ​ $ — ​ $ 8,250 ​ $ 60,494 ​ $ — Residential mortgage-backed agencies ​ ​ 33,243 ​ ​ 56 ​ ​ 2,785 ​ ​ 30,514 ​ ​ — Commercial mortgage-backed agencies ​ ​ 20,536 ​ ​ — ​ ​ 5,157 ​ ​ 15,379 ​ ​ — Collateralized mortgage obligations ​ ​ 43,593 ​ ​ — ​ ​ 7,402 ​ ​ 36,191 ​ ​ — Obligations of states and political subdivisions ​ ​ 4,245 ​ ​ 72 ​ ​ 527 ​ ​ 3,790 ​ ​ 102 Total held to maturity ​ $ 170,361 ​ $ 128 ​ $ 24,121 ​ $ 146,368 ​ $ 102 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ Amortized Cost ​ ​ ​ Gross Unrealized Gains ​ ​ ​ Gross Unrealized Losses ​ ​ ​ Allowance for Credit Losses ​ ​ ​ Estimated Fair Value December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for Sale: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government agencies ​ $ 2,000 ​ $ — ​ $ 596 ​ $ — ​ $ 1,404 Residential mortgage-backed agencies ​ ​ 25,891 ​ ​ 40 ​ ​ 3,076 ​ ​ — ​ ​ 22,855 Commercial mortgage-backed agencies ​ ​ 37,805 ​ ​ 1 ​ ​ 7,738 ​ ​ — ​ ​ 30,068 Collateralized mortgage obligations ​ ​ 29,795 ​ ​ 40 ​ ​ 2,445 ​ ​ — ​ ​ 27,390 Obligations of states and political subdivisions ​ ​ 8,557 ​ ​ 35 ​ ​ 67 ​ ​ — ​ ​ 8,525 Corporate bonds ​ ​ 1,000 ​ ​ — ​ ​ 93 ​ ​ — ​ ​ 907 Collateralized debt obligations ​ ​ 18,802 ​ ​ — ​ ​ 2,807 ​ ​ — ​ ​ 15,995 Total available for sale ​ $ 123,850 ​ $ 116 ​ $ 16,822 ​ $ — ​ $ 107,144 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ Amortized Cost ​ ​ ​ Gross Unrecognized Gains ​ ​ ​ Gross Unrecognized Losses ​ ​ ​ Estimated Fair Value ​ ​ ​ Allowance for Credit Losses December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Held to Maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government agencies ​ $ 68,595 ​ $ — ​ $ 7,721 ​ $ 60,874 ​ $ — Residential mortgage-backed agencies ​ ​ 32,084 ​ ​ 138 ​ ​ 2,474 ​ ​ 29,748 ​ ​ — Commercial mortgage-backed agencies ​ ​ 20,947 ​ ​ — ​ ​ 5,180 ​ ​ 15,767 ​ ​ — Collateralized mortgage obligations ​ ​ 45,447 ​ ​ — ​ ​ 7,056 ​ ​ 38,391 ​ ​ — Obligations of states and political subdivisions ​ ​ 4,390 ​ ​ 206 ​ ​ 487 ​ ​ 4,109 ​ ​ 102 Total held to maturity ​ $ 171,463 ​ $ 344 ​ $ 22,918 ​ $ 148,889 ​ $ 102 ​ 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. If either criterion regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. 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 13 Table of Contents 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. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses (“ACL”) is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through the ACL is recorded in other comprehensive income (“OCI”). The Corporation adopted ASC Topic 326 using the prospective transition approach for debt securities for which other than temporary impairment (“OTTI”) had been recognized prior to January 1, 2023, such as AFS collateralized debt obligations. 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 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. The ACL on HTM securities is a contra-asset valuation account, calculated in accordance with ASC Topic 326. 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. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management classifies the HTM portfolio into the following major security types: (i) securities issued or guaranteed by U.S. government agencies (including U.S. treasuries, agency bonds, and U.S. guaranteed residential mortgage-backed securities, commercial mortgage-backed securities, and collateralized mortgage obligations); (ii) rated municipal securities; and (iii) unrated municipal securities. 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 basis of the securities, as such securities are backed by the full faith and credit of and/or guaranteed by the U.S. government. Accordingly, no ACL has been recorded on these securities. With regard to securities issued by states and political subdivisions, management considers (x) issuer bond ratings, (y) historical loss rates for given bond ratings, and (z) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. Non-rated securities are evaluated internally based on financial performance and expected future cash flows. 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. ​ ​ 14 Table of Contents 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 ​ 12 months or more (in thousands) ​ ​ ​ Fair Value ​ ​ ​ Unrealized Losses ​ ​ ​ Number of Investments ​ ​ ​ Fair Value ​ ​ ​ Unrealized Losses ​ ​ ​ Number of Investments June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for Sale: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government agencies ​ $ — ​ $ — ​ — ​ $ 1,376 ​ $ 624 ​ 1 Residential mortgage-backed agencies ​ ​ — ​ ​ — ​ — ​ ​ 18,710 ​ ​ 3,220 ​ 6 Commercial mortgage-backed agencies ​ ​ — ​ ​ — ​ — ​ ​ 32,671 ​ ​ 8,230 ​ 13 Collateralized mortgage obligations ​ ​ — ​ ​ — ​ — ​ ​ 25,667 ​ ​ 2,720 ​ 12 Obligations of states and political subdivisions ​ ​ — ​ ​ — ​ — ​ ​ 4,158 ​ ​ 139 ​ 11 Corporate bonds ​ ​ — ​ ​ — ​ — ​ ​ 954 ​ ​ 46 ​ 1 Collateralized debt obligations ​ ​ — ​ ​ — ​ — ​ ​ 15,058 ​ ​ 2,146 ​ 8 Total available for sale ​ $ — ​ $ — ​ — ​ $ 98,594 ​ $ 17,125 ​ 52 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or more (in thousands) ​ ​ ​ Fair Value ​ ​ ​ Unrecognized Losses ​ ​ ​ Number of Investments ​ ​ ​ Fair Value ​ ​ ​ Unrecognized Losses ​ ​ ​ Number of Investments June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Held to Maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government agencies ​ $ 12,369 ​ $ 131 ​ 1 ​ $ 48,125 ​ $ 8,119 ​ 8 Residential mortgage-backed agencies ​ ​ — ​ ​ — ​ — ​ ​ 26,805 ​ ​ 2,785 ​ 44 Commercial mortgage-backed agencies ​ ​ — ​ ​ — ​ — ​ ​ 15,379 ​ ​ 5,157 ​ 2 Collateralized mortgage obligations ​ ​ — ​ ​ — ​ — ​ ​ 36,191 ​ ​ 7,402 ​ 8 Obligations of states and political subdivisions ​ ​ — ​ ​ — ​ — ​ ​ 2,308 ​ ​ 527 ​ 2 Total held to maturity ​ $ 12,369 ​ $ 131 ​ 1 ​ $ 128,808 ​ $ 23,990 ​ 64 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 15 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or more (in thousands) ​ ​ ​ Fair Value ​ ​ ​ Unrealized Losses ​ ​ ​ Number of Investments ​ ​ ​ Fair Value ​ ​ ​ Unrealized Losses ​ ​ ​ Number of Investments December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for Sale: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government agencies ​ $ — ​ $ — ​ — ​ $ 1,404 ​ $ 596 ​ 1 Residential mortgage-backed agencies ​ ​ — ​ ​ — ​ — ​ ​ 17,405 ​ ​ 3,076 ​ 3 Commercial mortgage-backed agencies ​ ​ — ​ ​ — ​ — ​ ​ 28,623 ​ ​ 7,738 ​ 9 Collateralized mortgage obligations ​ ​ 8,811 ​ ​ 100 ​ 1 ​ ​ 14,160 ​ ​ 2,345 ​ 9 Obligations of states and political subdivisions ​ ​ — ​ ​ — ​ — ​ ​ 3,332 ​ ​ 67 ​ 2 Corporate Bonds ​ ​ — ​ ​ — ​ — ​ ​ 907 ​ ​ 93 ​ 1 Collateralized debt obligations ​ ​ — ​ ​ — ​ — ​ ​ 15,995 ​ ​ 2,807 ​ 9 Total available for sale ​ $ 8,811 ​ $ 100 ​ 1 ​ $ 81,826 ​ $ 16,722 ​ 34 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or more (in thousands) ​ ​ ​ Fair Value ​ ​ ​ Unrecognized Losses ​ ​ ​ Number of Investments ​ ​ ​ Fair Value ​ ​ ​ Unrecognized Losses ​ ​ ​ Number of Investments December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Held to Maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government agencies ​ $ — ​ $ — ​ — ​ $ 60,874 ​ $ 7,721 ​ 9 Residential mortgage-backed agencies ​ ​ — ​ ​ — ​ — ​ ​ 19,434 ​ ​ 2,474 ​ 35 Commercial mortgage-backed agencies ​ ​ — ​ ​ — ​ — ​ ​ 15,767 ​ ​ 5,180 ​ 2 Collateralized mortgage obligations ​ ​ — ​ ​ — ​ — ​ ​ 38,391 ​ ​ 7,056 ​ 8 Obligations of states and political subdivisions ​ ​ — ​ ​ — ​ — ​ ​ 2,364 ​ ​ 487 ​ 1 Total held to maturity ​ $ — ​ $ — ​ — ​ $ 136,830 ​ $ 22,918 ​ 55 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 16 Table of Contents 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 (in thousands) ​ ​ ​ Amortized Cost ​ ​ ​ Fair Value Contractual Maturity ​ ​ ​ ​ ​ ​ Available for Sale: ​ ​ ​ ​ ​ ​ Due after one year through five years ​ $ 495 ​ $ 495 Due after five years through ten years ​ ​ 16,499 ​ ​ 14,920 Due after ten years ​ ​ 14,178 ​ ​ 12,857 ​ ​ ​ 31,172 ​ ​ 28,272 Residential mortgage-backed agencies ​ ​ 24,601 ​ ​ 21,387 Commercial mortgage-backed agencies ​ ​ 40,901 ​ ​ 32,671 Collateralized mortgage obligations ​ ​ 28,387 ​ ​ 25,667 Total available for sale ​ $ 125,061 ​ $ 107,997 Held to Maturity: ​ ​ ​ ​ ​ ​ Due in one year or less ​ $ 12,500 ​ $ 12,369 Due after one year through five years ​ ​ 4,550 ​ ​ 4,271 Due after five years through ten years ​ ​ 45,396 ​ ​ 39,575 Due after ten years ​ ​ 10,543 ​ ​ 8,069 ​ ​ ​ 72,989 ​ ​ 64,284 Residential mortgage-backed agencies ​ ​ 33,243 ​ ​ 30,514 Commercial mortgage-backed agencies ​ ​ 20,536 ​ ​ 15,379 Collateralized mortgage obligations ​ ​ 43,593 ​ ​ 36,191 Total held to maturity ​ $ 170,361 ​ $ 146,368 ​ ​ ​ 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 June 30, 2026 and December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ Commercial Real Estate ​ ​ ​ Acquisition and Development ​ ​ ​ Commercial and Industrial ​ ​ ​ Residential Mortgage ​ ​ ​ Consumer ​ ​ ​ Total June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Individually evaluated for impairment ​ $ 1,255 ​ $ — ​ $ 5,636 ​ $ 1,521 ​ $ — ​ $ 8,412 Collectively evaluated for impairment ​ ​ 624,566 ​ ​ 102,211 ​ ​ 236,377 ​ ​ 545,597 ​ ​ 54,968 ​ ​ 1,563,719 Total loans ​ $ 625,821 ​ $ 102,211 ​ $ 242,013 ​ $ 547,118 ​ $ 54,968 ​ $ 1,572,131 December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Individually evaluated for impairment ​ $ 617 ​ $ — ​ $ 17,142 ​ $ 1,927 ​ $ — ​ $ 19,686 Collectively evaluated for impairment ​ ​ 570,191 ​ ​ 90,272 ​ ​ 259,892 ​ ​ 534,985 ​ ​ 46,678 ​ ​ 1,502,018 Total loans ​ $ 570,808 ​ $ 90,272 ​ $ 277,034 ​ $ 536,912 ​ $ 46,678 ​ $ 1,521,704 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 17 Table of Contents 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) ​ ​ ​ Current ​ ​ ​ 30-59 Days Past Due ​ ​ ​ 60-89 Days Past Due ​ ​ ​ 90 Days+ Past Due ​ ​ ​ Total Past Due and Accruing ​ ​ ​ Non- Accrual ​ ​ ​ Total Loans June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner-occupied ​ $ 350,537 ​ $ 3,530 ​ $ — ​ $ — ​ $ 3,530 ​ $ — ​ $ 354,067 All other CRE ​ ​ 269,511 ​ ​ 880 ​ ​ — ​ ​ — ​ ​ 880 ​ ​ 1,363 ​ ​ 271,754 Acquisition and development: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential construction ​ ​ 24,388 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 24,388 All other A&D ​ ​ 77,823 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 77,823 Commercial and industrial ​ ​ 240,273 ​ ​ 702 ​ ​ 85 ​ ​ — ​ ​ 787 ​ ​ 953 ​ ​ 242,013 Residential mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential mortgage - term ​ ​ 471,505 ​ ​ 46 ​ ​ 1,155 ​ ​ 375 ​ ​ 1,576 ​ ​ 2,041 ​ ​ 475,122 Residential mortgage - home equity ​ ​ 71,362 ​ ​ 355 ​ ​ 113 ​ ​ 16 ​ ​ 484 ​ ​ 150 ​ ​ 71,996 Consumer ​ ​ 54,424 ​ ​ 484 ​ ​ 53 ​ ​ — ​ ​ 537 ​ ​ 7 ​ ​ 54,968 Total ​ $ 1,559,823 ​ $ 5,997 ​ $ 1,406 ​ $ 391 ​ $ 7,794 ​ $ 4,514 ​ $ 1,572,131 December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner-occupied ​ $ 334,581 ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 102 ​ $ 334,683 All other CRE ​ ​ 234,459 ​ ​ 769 ​ ​ 304 ​ ​ — ​ ​ 1,073 ​ ​ 593 ​ ​ 236,125 Acquisition and development: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential construction ​ ​ 15,369 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 15,369 All other A&D ​ ​ 74,903 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 74,903 Commercial and industrial ​ ​ 275,826 ​ ​ 112 ​ ​ 28 ​ ​ — ​ ​ 140 ​ ​ 1,068 ​ ​ 277,034 Residential mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential mortgage - term ​ ​ 464,294 ​ ​ 150 ​ ​ 2,146 ​ ​ 244 ​ ​ 2,540 ​ ​ 2,223 ​ ​ 469,057 Residential mortgage - home equity ​ ​ 67,154 ​ ​ 256 ​ ​ 86 ​ ​ 188 ​ ​ 530 ​ ​ 171 ​ ​ 67,855 Consumer ​ ​ 46,100 ​ ​ 252 ​ ​ 246 ​ ​ 45 ​ ​ 543 ​ ​ 35 ​ ​ 46,678 Total ​ $ 1,512,686 ​ $ 1,539 ​ $ 2,810 ​ $ 477 ​ $ 4,826 ​ $ 4,192 ​ $ 1,521,704 ​ 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 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 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: (i) commercial real estate; (ii) acquisition and development; (iii) commercial and industrial; (iv) residential mortgage; and (v) consumer. The 18 Table of Contents 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. Commercial Real Estate- loans are secured by commercial purpose real estate, including both owner-occupied properties and properties obtained for investment purposes, such as hotels, strip malls and apartments. Operations of the individual projects as well as global cash flows of the debtors are the primary source of repayment of these loans. The condition of the local economy is an important indicator of risk, but there are more specific risks depending on the collateral type as well as the business. Acquisition and Development- loans include both commercial and consumer. Commercial loans are made to finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. While the risk of these loans is generally confined to the construction period, if there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the type of project and the experience and resources of the developer. Consumer loans are made for the construction of residential homes for which a binding sales contract exists and generally are for a period of time sufficient to complete construction. Residential construction loans to individuals generally provide for the payment of interest only during the construction phase. Credit risk for residential real estate construction loans can arise from construction delays, cost overruns, failure of the contractor to complete the project to specifications and economic conditions that could impact demand for supply of the property being constructed. Commercial and Industrial- loans are made to operating companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. Cash flow from the operations of the borrower is the primary source of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the industry of the borrower. The collateral for these types of loans often does not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt. These loans are also made to local municipalities for various purposes including refinancing existing obligations, infrastructure up fit and expansion, or to purchase new equipment. The primary repayment source for local municipalities includes the tax base of the municipality, specific revenue streams related to the infrastructure financed, and other business operations of the municipal authority. 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 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. The primary source of repayment for these loans is the income of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The state of the local housing market can also have a significant impact on this segment because low demand and/or declining home values can limit the ability of borrowers to sell a property and satisfy debt. Consumer- loans are made to individuals and may be either secured by assets other than real estate or unsecured. This segment includes automobile loans and unsecured loans and lines of credit. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The value of the collateral, if there is any, is less likely to be a source of repayment due to less certain collateral values. 19 Table of Contents The following tables present the amortized cost basis of loans on a nonaccrual status at June 30, 2026 and December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ Nonaccrual Loans With No Allowance for Credit Loss ​ ​ ​ Nonaccrual Loans With Allowance for Credit Loss ​ ​ ​ Total Nonaccrual Loans June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate ​ ​ ​ ​ ​ ​ ​ ​ ​ All other CRE ​ $ 1,255 ​ $ 108 ​ $ 1,363 Commercial and industrial ​ ​ 953 ​ ​ — ​ ​ 953 Residential mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential mortgage - term ​ ​ 1,521 ​ ​ 520 ​ ​ 2,041 Residential mortgage – home equity ​ ​ — ​ ​ 150 ​ ​ 150 Consumer ​ ​ — ​ ​ 7 ​ ​ 7 Total ​ $ 3,729 ​ $ 785 ​ $ 4,514 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (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 ​ $ 102 ​ $ — ​ $ 102 All other CRE ​ ​ 515 ​ ​ 78 ​ ​ 593 Commercial and industrial ​ ​ 978 ​ ​ 90 ​ ​ 1,068 Residential mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential mortgage - term ​ ​ 1,823 ​ ​ 400 ​ ​ 2,223 Residential mortgage – home equity ​ ​ 104 ​ ​ 67 ​ ​ 171 Consumer ​ ​ — ​ ​ 35 ​ ​ 35 Total ​ $ 3,522 ​ $ 670 ​ $ 4,192 ​ 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) ​ ​ ​ Commercial Real Estate ​ ​ ​ Acquisition and Development ​ ​ ​ Commercial and Industrial ​ ​ ​ Residential Mortgage ​ ​ ​ Consumer ​ ​ ​ Total June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Individually evaluated for impairment ​ $ — ​ $ — ​ $ 123 ​ $ — ​ $ — ​ $ 123 Collectively evaluated for impairment ​ ​ 5,805 ​ ​ 1,563 ​ ​ 3,645 ​ ​ 8,399 ​ ​ 1,056 ​ ​ 20,468 Total ACL ​ $ 5,805 ​ $ 1,563 ​ $ 3,768 ​ $ 8,399 ​ $ 1,056 ​ $ 20,591 December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Individually evaluated for impairment ​ $ — ​ $ — ​ $ 417 ​ $ — ​ $ — ​ $ 417 Collectively evaluated for impairment ​ ​ 4,644 ​ ​ 1,278 ​ ​ 4,056 ​ ​ 8,272 ​ ​ 803 ​ ​ 19,053 Total ACL ​ $ 4,644 ​ $ 1,278 ​ $ 4,473 ​ $ 8,272 ​ $ 803 ​ $ 19,470 ​ Changes in the fair value of the types of collateral for individually evaluated loans are reported as provision for credit loss in the period of change. 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. 20 Table of Contents 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) ​ ​ ​ Real Estate ​ ​ Other Collateral ​ Non-Accrual Loans with No Allowance for Credit Loss Commercial real estate ​ $ 1,255 ​ $ — ​ $ 1,255 Commercial and industrial ​ ​ — ​ ​ 953 ​ ​ 953 Residential mortgage ​ ​ 1,521 ​ ​ — ​ ​ 1,521 Total Loans ​ $ 2,776 ​ $ 953 ​ $ 3,729 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 (in thousands) ​ ​ ​ Real Estate ​ ​ Other Collateral ​ Non-Accrual Loans with No Allowance for Credit Loss Commercial real estate ​ $ 617 ​ $ — ​ $ 617 Commercial and industrial ​ ​ — ​ ​ 978 ​ ​ 978 Residential mortgage ​ ​ 1,927 ​ ​ — ​ ​ 1,927 Total Loans ​ $ 2,544 ​ $ 978 ​ $ 3,522 ​ The following tables present the activity in the ACL for the six- and three-month periods ended June 30, 2026 and 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ Commercial Real Estate ​ ​ ​ Acquisition and Development ​ ​ ​ Commercial and Industrial ​ ​ ​ Residential Mortgage ​ ​ ​ Consumer ​ ​ ​ Total Beginning balance at January 1, 2026 ​ $ 4,644 ​ $ 1,278 ​ $ 4,473 ​ $ 8,272 ​ $ 803 ​ $ 19,470 Loan charge-offs ​ ​ — ​ ​ — ​ ​ ( 134 ) ​ ​ ( 4 ) ​ ​ ( 326 ) ​ ​ ( 464 ) Recoveries collected ​ ​ — ​ ​ 13 ​ ​ 10 ​ ​ 40 ​ ​ 107 ​ ​ 170 Credit loss expense/(credit) ​ ​ 1,161 ​ ​ 272 ​ ​ ( 581 ) ​ ​ 91 ​ ​ 472 ​ ​ 1,415 ACL balance at June 30, 2026 ​ $ 5,805 ​ $ 1,563 ​ $ 3,768 ​ $ 8,399 ​ $ 1,056 ​ $ 20,591 Beginning balance at January 1, 2025 ​ $ 5,272 ​ $ 909 ​ $ 4,205 ​ $ 7,010 ​ $ 774 ​ $ 18,170 Loan charge-offs ​ ​ — ​ ​ ( 9 ) ​ ​ ( 370 ) ​ ​ — ​ ​ ( 399 ) ​ ​ ( 778 ) Recoveries collected ​ ​ — ​ ​ 71 ​ ​ 13 ​ ​ 29 ​ ​ 154 ​ ​ 267 Credit loss expense/(credit) ​ ​ 894 ​ ​ 72 ​ ​ 378 ​ ​ ( 137 ) ​ ​ 178 ​ ​ 1,385 ACL balance at June 30, 2025 ​ $ 6,166 ​ $ 1,043 ​ $ 4,226 ​ $ 6,902 ​ $ 707 ​ $ 19,044 ​ ​ 21 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended (in thousands) ​ Commercial Real Estate ​ Acquisition and Development ​ Commercial and Industrial ​ Residential Mortgage ​ Consumer ​ Total ACL balance at April 1, 2026 ​ $ 5,638 ​ ​ 1,446 ​ ​ 4,050 ​ ​ 7,974 ​ ​ 843 ​ $ 19,951 Loan charge-offs ​ ​ — ​ ​ — ​ ​ ( 63 ) ​ ​ — ​ ​ ( 128 ) ​ ​ ( 191 ) Recoveries collected ​ ​ — ​ ​ 6 ​ ​ 8 ​ ​ 30 ​ ​ 51 ​ ​ 95 Credit loss expense/(credit) ​ ​ 167 ​ ​ 111 ​ ​ ( 227 ) ​ ​ 395 ​ ​ 290 ​ ​ 736 ACL balance at June 30, 2026 ​ $ 5,805 ​ $ 1,563 ​ $ 3,768 ​ $ 8,399 ​ $ 1,056 ​ $ 20,591 ACL balance at April 1, 2025 ​ $ 5,670 ​ $ 940 ​ $ 4,334 ​ $ 6,723 ​ $ 800 ​ $ 18,467 Loan charge-offs ​ ​ — ​ ​ ( 6 ) ​ ​ ( 15 ) ​ ​ — ​ ​ ( 215 ) ​ ​ ( 236 ) Recoveries collected ​ ​ — ​ ​ 7 ​ ​ 11 ​ ​ 13 ​ ​ 54 ​ ​ 85 Credit loss expense/(credit) ​ ​ 496 ​ ​ 102 ​ ​ ( 104 ) ​ ​ 166 ​ ​ 68 ​ ​ 728 ACL balance at June 30, 2025 ​ $ 6,166 ​ $ 1,043 ​ $ 4,226 ​ $ 6,902 ​ $ 707 ​ $ 19,044 ​ The Corporation’s methodology for estimating the ACL includes: Segmentation. The Corporation’s loan portfolio is segmented by homogeneous loan types that behave similarly to economic cycles. Specific Analysis. A specific reserve analysis is applied to certain individually evaluated loans. 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. A charge-off is recognized when the loss is quantifiable. Individually evaluated loans not specifically analyzed, reside in the quantitative analysis. Quantitative Analysis. The Corporation has elected to use discounted cash flows. Economic forecasts include but are not limited to unemployment, the Consumer Price Index, the Housing Affordability Index, and Gross State Product. These forecasts are assumed to revert to the long-term average and are utilized in the model to estimate the probability of default and the loss given default is the estimated loss rate, which varies over time. 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 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. Qualitative Analysis. Based on management’s review and analysis of internal, external and model risks, management may adjust the model output. Management reviews the peaks and troughs of the model’s calibrations, taking into account economic forecasts to develop guardrails that serve as the basis for determining the reasonableness of the model’s output and makes adjustments as necessary. This process challenges unexpected variability resulting from outputs beyond the model’s calibrations that appear to be unreasonable. Management also enhances the calculation through the use of Moody’s economic forecast data in its calculation. Additionally, management may adjust the economic forecast if it is incompatible with known market conditions based on management’s experience and perspective. The ACL is based on estimates, and actual losses may vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ACL that is representative of the risk found in the components of the portfolio at any given date. 22 Table of Contents Credit Quality Indicators: The Corporation’s portfolio grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Corporation’s internal credit risk grading system is based on debt service coverage, collateral values and other subjective factors. Mortgage and consumer loans are defaulted to pass grade until a loan migrates to past due status. The Corporation has a loan review policy and annual scope report that details the level of loan review for loans in a given year. The annual loan review provides the Credit Risk Committee with an independent analysis of the following: (i) credit quality of the loan portfolio; (ii) compliance with loan policy; (iii) adequacy of documentation in credit files; and (iv) validity of risk ratings. The Corporation’s internally assigned grades are as follows: Pass - The Corporation uses six grades of pass, including its watch rating. 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 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. Assets so classified have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. Such assets are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. 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 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. The ability of borrowers to repay commercial loans is dependent upon the success of their business and general economic conditions. Due to the greater potential for loss within our commercial portfolio, we monitor the commercial loan portfolio through an internal risk rating system. Loan risk ratings are assigned based upon the creditworthiness of the borrower and are reviewed on an ongoing basis according to our internal policies. Loans rated special mention or substandard have potential or well-defined weaknesses not generally found in high quality, performing loans, and require attention from management to limit loss. ​ 23 Table of Contents The following tables present loan balances by year of origination and internally assigned risk rating for our portfolio segments for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ 2022 ​ ​ ​ 2021 and Prior ​ ​ ​ Revolving ​ ​ ​ Total Portfolio Loans June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner-occupied ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 25,243 ​ $ 35,811 ​ $ 22,565 ​ $ 46,783 ​ $ 75,669 ​ $ 136,630 ​ $ 9,583 ​ $ 352,284 Special Mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,783 ​ ​ — ​ ​ 1,783 Total non-owner occupied ​ ​ 25,243 ​ ​ 35,811 ​ ​ 22,565 ​ ​ 46,783 ​ ​ 75,669 ​ ​ 138,413 ​ ​ 9,583 ​ ​ 354,067 Current period gross charge-offs ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — All other CRE ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 41,161 ​ ​ 24,490 ​ ​ 56,576 ​ ​ 29,929 ​ ​ 20,676 ​ ​ 87,906 ​ ​ 2,331 ​ ​ 263,069 Special Mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ — ​ ​ 904 ​ ​ 769 ​ ​ — ​ ​ 6,412 ​ ​ 600 ​ ​ 8,685 Total all other CRE ​ ​ 41,161 ​ ​ 24,490 ​ ​ 57,480 ​ ​ 30,698 ​ ​ 20,676 ​ ​ 94,318 ​ ​ 2,931 ​ ​ 271,754 Current period gross charge-offs ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Acquisition and development: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential construction ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 5,234 ​ ​ 13,012 ​ ​ 3,181 ​ ​ 208 ​ ​ — ​ ​ — ​ ​ 2,753 ​ ​ 24,388 Special Mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total acquisition and development ​ ​ 5,234 ​ ​ 13,012 ​ ​ 3,181 ​ ​ 208 ​ ​ — ​ ​ — ​ ​ 2,753 ​ ​ 24,388 Current period gross charge-offs ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — All other A&D ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 9,048 ​ ​ 12,110 ​ ​ 16,130 ​ ​ 2,650 ​ ​ 3,640 ​ ​ 8,979 ​ ​ 24,975 ​ ​ 77,532 Special Mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ 291 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 291 Total all other A&D ​ ​ 9,048 ​ ​ 12,401 ​ ​ 16,130 ​ ​ 2,650 ​ ​ 3,640 ​ ​ 8,979 ​ ​ 24,975 ​ ​ 77,823 Current period gross charge-offs ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Commercial and industrial: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 21,380 ​ ​ 36,843 ​ ​ 15,192 ​ ​ 20,117 ​ ​ 25,392 ​ ​ 15,179 ​ ​ 61,191 ​ ​ 195,294 Special Mention ​ ​ — ​ ​ — ​ ​ 4,250 ​ ​ 18,902 ​ ​ 3,500 ​ ​ — ​ ​ 500 ​ ​ 27,152 Substandard ​ ​ — ​ ​ — ​ ​ 135 ​ ​ 224 ​ ​ 1,101 ​ ​ 7,544 ​ ​ 10,563 ​ ​ 19,567 Total commercial and industrial ​ ​ 21,380 ​ ​ 36,843 ​ ​ 19,577 ​ ​ 39,243 ​ ​ 29,993 ​ ​ 22,723 ​ ​ 72,254 ​ ​ 242,013 Current period gross charge-offs ​ ​ — ​ ​ 37 ​ ​ — ​ ​ 19 ​ ​ 28 ​ ​ 50 ​ ​ — ​ ​ 134 Residential mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential mortgage - term ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 37,057 ​ ​ 46,886 ​ ​ 43,165 ​ ​ 60,314 ​ ​ 80,093 ​ ​ 198,835 ​ ​ 2,035 ​ ​ 468,385 Special Mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 840 ​ ​ 5,875 ​ ​ 22 ​ ​ 6,737 Total residential mortgage - term ​ ​ 37,057 ​ ​ 46,886 ​ ​ 43,165 ​ ​ 60,314 ​ ​ 80,933 ​ ​ 204,710 ​ ​ 2,057 ​ ​ 475,122 Current period gross charge-offs ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 4 ​ ​ — ​ ​ 4 Residential mortgage - home equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 471 ​ ​ 481 ​ ​ 57 ​ ​ 523 ​ ​ 2,924 ​ ​ 1,274 ​ ​ 65,297 ​ ​ 71,027 Special Mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 7 ​ ​ 962 ​ ​ 969 Total residential mortgage - home equity ​ ​ 471 ​ ​ 481 ​ ​ 57 ​ ​ 523 ​ ​ 2,924 ​ ​ 1,281 ​ ​ 66,259 ​ ​ 71,996 Current period gross charge-offs ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Consumer: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 16,108 ​ ​ 7,650 ​ ​ 4,548 ​ ​ 4,677 ​ ​ 2,271 ​ ​ 15,313 ​ ​ 4,154 ​ ​ 54,721 Special Mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ 10 ​ ​ 107 ​ ​ 62 ​ ​ 41 ​ ​ 19 ​ ​ 8 ​ ​ 247 Total consumer ​ ​ 16,108 ​ ​ 7,660 ​ ​ 4,655 ​ ​ 4,739 ​ ​ 2,312 ​ ​ 15,332 ​ ​ 4,162 ​ ​ 54,968 Current period gross charge-offs ​ ​ 87 ​ ​ 85 ​ ​ 66 ​ ​ 38 ​ ​ 6 ​ ​ 44 ​ ​ — ​ ​ 326 Total Portfolio Loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 155,702 ​ ​ 177,283 ​ ​ 161,414 ​ ​ 165,201 ​ ​ 210,665 ​ ​ 464,116 ​ ​ 172,319 ​ ​ 1,506,700 Special Mention ​ ​ — ​ ​ — ​ ​ 4,250 ​ ​ 18,902 ​ ​ 3,500 ​ ​ — ​ ​ 500 ​ ​ 27,152 Substandard ​ ​ — ​ ​ 301 ​ ​ 1,146 ​ ​ 1,055 ​ ​ 1,982 ​ ​ 21,640 ​ ​ 12,155 ​ ​ 38,279 Total Portfolio Loans ​ $ 155,702 ​ $ 177,584 ​ $ 166,810 ​ $ 185,158 ​ $ 216,147 ​ $ 485,756 ​ $ 184,974 ​ $ 1,572,131 Current YTD Period: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current period gross charge-offs ​ $ 87 ​ $ 122 ​ $ 66 ​ $ 57 ​ $ 34 ​ $ 98 ​ $ — ​ $ 464 ​ ​ 24 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ 2022 ​ ​ ​ 2021 ​ ​ ​ 2020 and Prior ​ ​ ​ Revolving ​ ​ ​ Total Portfolio Loans December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner-occupied ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 33,245 ​ $ 22,810 ​ $ 40,375 ​ $ 78,385 ​ $ 25,911 ​ $ 123,082 ​ $ 8,917 ​ $ 332,725 Substandard ​ ​ — ​ ​ — ​ ​ 102 ​ ​ — ​ ​ — ​ ​ 1,856 ​ ​ — ​ ​ 1,958 Total non-owner occupied ​ ​ 33,245 ​ ​ 22,810 ​ ​ 40,477 ​ ​ 78,385 ​ ​ 25,911 ​ ​ 124,938 ​ ​ 8,917 ​ ​ 334,683 Current period gross charge-offs ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — All other CRE ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 24,612 ​ ​ 50,485 ​ ​ 31,650 ​ ​ 22,273 ​ ​ 20,617 ​ ​ 75,235 ​ ​ 3,240 ​ ​ 228,112 Special Mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 864 ​ ​ — ​ ​ — ​ ​ 864 Substandard ​ ​ — ​ ​ 915 ​ ​ — ​ ​ — ​ ​ 1,712 ​ ​ 3,922 ​ ​ 600 ​ ​ 7,149 Total all other CRE ​ ​ 24,612 ​ ​ 51,400 ​ ​ 31,650 ​ ​ 22,273 ​ ​ 23,193 ​ ​ 79,157 ​ ​ 3,840 ​ ​ 236,125 Current period gross charge-offs ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Acquisition and development: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential construction ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 11,783 ​ ​ 91 ​ ​ 980 ​ ​ — ​ ​ — ​ ​ — ​ ​ 2,515 ​ ​ 15,369 Total acquisition and development ​ ​ 11,783 ​ ​ 91 ​ ​ 980 ​ ​ — ​ ​ — ​ ​ — ​ ​ 2,515 ​ ​ 15,369 Current period gross charge-offs ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — All other A&D ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 13,267 ​ ​ 24,703 ​ ​ 8,852 ​ ​ 3,988 ​ ​ 1,582 ​ ​ 8,840 ​ ​ 13,374 ​ ​ 74,606 Substandard ​ ​ 297 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 297 Total all other A&D ​ ​ 13,564 ​ ​ 24,703 ​ ​ 8,852 ​ ​ 3,988 ​ ​ 1,582 ​ ​ 8,840 ​ ​ 13,374 ​ ​ 74,903 Current period gross charge-offs ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 9 ​ ​ — ​ ​ 9 Commercial and industrial: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 37,145 ​ ​ 17,406 ​ ​ 17,629 ​ ​ 45,513 ​ ​ 11,060 ​ ​ 13,892 ​ ​ 71,139 ​ ​ 213,784 Special Mention ​ ​ — ​ ​ 4,250 ​ ​ 19,112 ​ ​ 3,638 ​ ​ 32 ​ ​ — ​ ​ 4,963 ​ ​ 31,995 Substandard ​ ​ 22 ​ ​ 100 ​ ​ 235 ​ ​ 1,008 ​ ​ 106 ​ ​ 8,015 ​ ​ 21,769 ​ ​ 31,255 Total commercial and industrial ​ ​ 37,167 ​ ​ 21,756 ​ ​ 36,976 ​ ​ 50,159 ​ ​ 11,198 ​ ​ 21,907 ​ ​ 97,871 ​ ​ 277,034 Current period gross charge-offs ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 570 ​ ​ 441 ​ ​ — ​ ​ 1,011 Residential mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential mortgage - term ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 44,643 ​ ​ 47,862 ​ ​ 63,667 ​ ​ 86,508 ​ ​ 69,335 ​ ​ 148,527 ​ ​ 1,057 ​ ​ 461,599 Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ 857 ​ ​ 1,173 ​ ​ 5,405 ​ ​ 23 ​ ​ 7,458 Total residential mortgage - term ​ ​ 44,643 ​ ​ 47,862 ​ ​ 63,667 ​ ​ 87,365 ​ ​ 70,508 ​ ​ 153,932 ​ ​ 1,080 ​ ​ 469,057 Current period gross charge-offs ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Residential mortgage - home equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 558 ​ ​ 59 ​ ​ 567 ​ ​ 3,180 ​ ​ 557 ​ ​ 866 ​ ​ 61,070 ​ ​ 66,857 Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 9 ​ ​ 989 ​ ​ 998 Total residential mortgage - home equity ​ ​ 558 ​ ​ 59 ​ ​ 567 ​ ​ 3,180 ​ ​ 557 ​ ​ 875 ​ ​ 62,059 ​ ​ 67,855 Current period gross charge-offs ​ ​ — ​ ​ — ​ ​ 15 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 15 Consumer: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 9,849 ​ ​ 6,814 ​ ​ 6,369 ​ ​ 3,372 ​ ​ 1,593 ​ ​ 15,573 ​ ​ 2,789 ​ ​ 46,359 Substandard ​ ​ 60 ​ ​ 94 ​ ​ 82 ​ ​ 49 ​ ​ 7 ​ ​ 15 ​ ​ 12 ​ ​ 319 Total consumer ​ ​ 9,909 ​ ​ 6,908 ​ ​ 6,451 ​ ​ 3,421 ​ ​ 1,600 ​ ​ 15,588 ​ ​ 2,801 ​ ​ 46,678 Current period gross charge-offs ​ ​ 275 ​ ​ 92 ​ ​ 172 ​ ​ 18 ​ ​ 104 ​ ​ 54 ​ ​ — ​ ​ 715 Total Portfolio Loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 175,102 ​ ​ 170,230 ​ ​ 170,089 ​ ​ 243,219 ​ ​ 130,655 ​ ​ 386,015 ​ ​ 164,101 ​ ​ 1,439,411 Special Mention ​ ​ — ​ ​ 4,250 ​ ​ 19,112 ​ ​ 3,638 ​ ​ 896 ​ ​ — ​ ​ 4,963 ​ ​ 32,859 Substandard ​ ​ 379 ​ ​ 1,109 ​ ​ 419 ​ ​ 1,914 ​ ​ 2,998 ​ ​ 19,222 ​ ​ 23,393 ​ ​ 49,434 Total Portfolio Loans ​ $ 175,481 ​ $ 175,589 ​ $ 189,620 ​ $ 248,771 ​ $ 134,549 ​ $ 405,237 ​ $ 192,457 ​ $ 1,521,704 Current YTD Period: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current period gross charge-offs ​ $ 275 ​ $ 92 ​ $ 187 ​ $ 18 ​ $ 674 ​ $ 504 ​ $ — ​ $ 1,750 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past. ​ ​ 25 Table of Contents The following tables present loan balances by year of origination segregated by performing and non-performing loans for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ 2022 ​ ​ ​ 2021 and Prior ​ ​ ​ Revolving ​ ​ ​ Total Portfolio Loans June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner-occupied ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ $ 25,243 ​ $ 35,811 ​ $ 22,565 ​ $ 46,783 ​ $ 75,669 ​ $ 138,413 ​ $ 9,583 ​ $ 354,067 Nonperforming ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total non-owner occupied ​ ​ 25,243 ​ ​ 35,811 ​ ​ 22,565 ​ ​ 46,783 ​ ​ 75,669 ​ ​ 138,413 ​ ​ 9,583 ​ ​ 354,067 All other CRE ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ ​ 41,161 ​ ​ 24,490 ​ ​ 57,480 ​ ​ 29,929 ​ ​ 20,676 ​ ​ 93,724 ​ ​ 2,931 ​ ​ 270,391 Nonperforming ​ ​ — ​ ​ — ​ ​ — ​ ​ 769 ​ ​ — ​ ​ 594 ​ ​ — ​ ​ 1,363 Total all other CRE ​ ​ 41,161 ​ ​ 24,490 ​ ​ 57,480 ​ ​ 30,698 ​ ​ 20,676 ​ ​ 94,318 ​ ​ 2,931 ​ ​ 271,754 Acquisition and development: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential construction ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ ​ 5,234 ​ ​ 13,012 ​ ​ 3,181 ​ ​ 208 ​ ​ — ​ ​ — ​ ​ 2,753 ​ ​ 24,388 Total acquisition and development ​ ​ 5,234 ​ ​ 13,012 ​ ​ 3,181 ​ ​ 208 ​ ​ — ​ ​ — ​ ​ 2,753 ​ ​ 24,388 All other A&D ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ ​ 9,048 ​ ​ 12,401 ​ ​ 16,130 ​ ​ 2,650 ​ ​ 3,640 ​ ​ 8,979 ​ ​ 24,975 ​ ​ 77,823 Total all other A&D ​ ​ 9,048 ​ ​ 12,401 ​ ​ 16,130 ​ ​ 2,650 ​ ​ 3,640 ​ ​ 8,979 ​ ​ 24,975 ​ ​ 77,823 Commercial and industrial: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ ​ 21,380 ​ ​ 36,843 ​ ​ 19,577 ​ ​ 39,243 ​ ​ 29,040 ​ ​ 22,723 ​ ​ 72,254 ​ ​ 241,060 Nonperforming ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 953 ​ ​ — ​ ​ — ​ ​ 953 Total commercial and industrial ​ ​ 21,380 ​ ​ 36,843 ​ ​ 19,577 ​ ​ 39,243 ​ ​ 29,993 ​ ​ 22,723 ​ ​ 72,254 ​ ​ 242,013 Residential mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential mortgage - term ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ ​ 37,057 ​ ​ 46,886 ​ ​ 43,165 ​ ​ 60,314 ​ ​ 80,739 ​ ​ 202,488 ​ ​ 2,057 ​ ​ 472,706 Nonperforming ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 194 ​ ​ 2,222 ​ ​ — ​ ​ 2,416 Total residential mortgage - term ​ ​ 37,057 ​ ​ 46,886 ​ ​ 43,165 ​ ​ 60,314 ​ ​ 80,933 ​ ​ 204,710 ​ ​ 2,057 ​ ​ 475,122 Residential mortgage - home equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ ​ 471 ​ ​ 481 ​ ​ 57 ​ ​ 523 ​ ​ 2,924 ​ ​ 1,281 ​ ​ 66,093 ​ ​ 71,830 Nonperforming ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 166 ​ ​ 166 Total residential mortgage - home equity ​ ​ 471 ​ ​ 481 ​ ​ 57 ​ ​ 523 ​ ​ 2,924 ​ ​ 1,281 ​ ​ 66,259 ​ ​ 71,996 Consumer: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ ​ 16,108 ​ ​ 7,660 ​ ​ 4,655 ​ ​ 4,732 ​ ​ 2,312 ​ ​ 15,332 ​ ​ 4,162 ​ ​ 54,961 Nonperforming ​ ​ — ​ ​ — ​ ​ — ​ ​ 7 ​ ​ — ​ ​ — ​ ​ — ​ ​ 7 Total consumer ​ ​ 16,108 ​ ​ 7,660 ​ ​ 4,655 ​ ​ 4,739 ​ ​ 2,312 ​ ​ 15,332 ​ ​ 4,162 ​ ​ 54,968 Total Portfolio Loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ ​ 155,702 ​ ​ 177,584 ​ ​ 166,810 ​ ​ 184,382 ​ ​ 215,000 ​ ​ 482,940 ​ ​ 184,808 ​ ​ 1,567,226 Nonperforming ​ ​ — ​ ​ — ​ ​ — ​ ​ 776 ​ ​ 1,147 ​ ​ 2,816 ​ ​ 166 ​ ​ 4,905 Total Portfolio Loans ​ $ 155,702 ​ $ 177,584 ​ $ 166,810 ​ $ 185,158 ​ $ 216,147 ​ $ 485,756 ​ $ 184,974 ​ $ 1,572,131 ​ ​ 26 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ 2022 ​ ​ ​ 2021 ​ ​ ​ 2020 and Prior ​ ​ ​ Revolving ​ ​ ​ Total Portfolio Loans December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner-occupied ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ $ 33,245 ​ $ 22,810 ​ $ 40,375 ​ $ 78,385 ​ $ 25,911 ​ $ 124,938 ​ $ 8,917 ​ $ 334,581 Nonperforming ​ ​ — ​ ​ — ​ ​ 102 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 102 Total non-owner occupied ​ ​ 33,245 ​ ​ 22,810 ​ ​ 40,477 ​ ​ 78,385 ​ ​ 25,911 ​ ​ 124,938 ​ ​ 8,917 ​ ​ 334,683 All other CRE ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ ​ 24,612 ​ ​ 51,400 ​ ​ 31,650 ​ ​ 22,273 ​ ​ 23,193 ​ ​ 78,564 ​ ​ 3,840 ​ ​ 235,532 Nonperforming ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 593 ​ ​ — ​ ​ 593 Total all other CRE ​ ​ 24,612 ​ ​ 51,400 ​ ​ 31,650 ​ ​ 22,273 ​ ​ 23,193 ​ ​ 79,157 ​ ​ 3,840 ​ ​ 236,125 Acquisition and development: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential construction ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ ​ 11,783 ​ ​ 91 ​ ​ 980 ​ ​ — ​ ​ — ​ ​ — ​ ​ 2,515 ​ ​ 15,369 Nonperforming ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total acquisition and development ​ ​ 11,783 ​ ​ 91 ​ ​ 980 ​ ​ — ​ ​ — ​ ​ — ​ ​ 2,515 ​ ​ 15,369 All other A&D ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ ​ 13,564 ​ ​ 24,703 ​ ​ 8,852 ​ ​ 3,988 ​ ​ 1,582 ​ ​ 8,840 ​ ​ 13,374 ​ ​ 74,903 Nonperforming ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total all other A&D ​ ​ 13,564 ​ ​ 24,703 ​ ​ 8,852 ​ ​ 3,988 ​ ​ 1,582 ​ ​ 8,840 ​ ​ 13,374 ​ ​ 74,903 Commercial and industrial: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ ​ 37,167 ​ ​ 21,756 ​ ​ 36,976 ​ ​ 49,181 ​ ​ 11,108 ​ ​ 21,907 ​ ​ 97,871 ​ ​ 275,966 Nonperforming ​ ​ — ​ ​ — ​ ​ — ​ ​ 978 ​ ​ 90 ​ ​ — ​ ​ — ​ ​ 1,068 Total commercial and industrial ​ ​ 37,167 ​ ​ 21,756 ​ ​ 36,976 ​ ​ 50,159 ​ ​ 11,198 ​ ​ 21,907 ​ ​ 97,871 ​ ​ 277,034 Residential mortgage: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential mortgage - term ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ ​ 44,643 ​ ​ 47,862 ​ ​ 63,667 ​ ​ 87,365 ​ ​ 70,127 ​ ​ 151,846 ​ ​ 1,080 ​ ​ 466,590 Nonperforming ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 381 ​ ​ 2,086 ​ ​ — ​ ​ 2,467 Total residential mortgage - term ​ ​ 44,643 ​ ​ 47,862 ​ ​ 63,667 ​ ​ 87,365 ​ ​ 70,508 ​ ​ 153,932 ​ ​ 1,080 ​ ​ 469,057 Residential mortgage - home equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ ​ 558 ​ ​ 59 ​ ​ 567 ​ ​ 3,180 ​ ​ 557 ​ ​ 875 ​ ​ 61,700 ​ ​ 67,496 Nonperforming ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 359 ​ ​ 359 Total residential mortgage - home equity ​ ​ 558 ​ ​ 59 ​ ​ 567 ​ ​ 3,180 ​ ​ 557 ​ ​ 875 ​ ​ 62,059 ​ ​ 67,855 Consumer: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ ​ 9,909 ​ ​ 6,891 ​ ​ 6,416 ​ ​ 3,409 ​ ​ 1,600 ​ ​ 15,572 ​ ​ 2,801 ​ ​ 46,598 Nonperforming ​ ​ — ​ ​ 17 ​ ​ 35 ​ ​ 12 ​ ​ — ​ ​ 16 ​ ​ — ​ ​ 80 Total consumer ​ ​ 9,909 ​ ​ 6,908 ​ ​ 6,451 ​ ​ 3,421 ​ ​ 1,600 ​ ​ 15,588 ​ ​ 2,801 ​ ​ 46,678 Total Portfolio Loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performing ​ ​ 175,481 ​ ​ 175,572 ​ ​ 189,483 ​ ​ 247,781 ​ ​ 134,078 ​ ​ 402,542 ​ ​ 192,098 ​ ​ 1,517,035 Nonperforming ​ ​ — ​ ​ 17 ​ ​ 137 ​ ​ 990 ​ ​ 471 ​ ​ 2,695 ​ ​ 359 ​ ​ 4,669 Total Portfolio Loans ​ $ 175,481 ​ $ 175,589 ​ $ 189,620 ​ $ 248,771 ​ $ 134,549 ​ $ 405,237 ​ $ 192,457 ​ $ 1,521,704 ​ Loan Modifications for Borrowers Experiencing Financial Difficulty ​ The Corporation evaluates all loan modifications according to the accounting guidance in ASU No. 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. 27 Table of Contents The Corporation may offer various types of modifications when restructuring a loan. Commercial and industrial loans modified in a loan restructuring often involve temporary interest-only payments, term extensions, and converting credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested. ​ Commercial mortgage and construction loans modified in a loan restructuring often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a new borrower or guarantor. Construction loans modified in a loan restructuring may also involve extending the interest-only payment period. ​ Loans modified in a loan restructuring for the Corporation may have the financial effect of increasing the specific allowance associated with the loan. An allowance for loans that have been modified in a loan restructuring is measured based on the present value of expected cash flows discounted at the loan’s effective interest rate or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. ​ Commercial and consumer loans modified in a loan restructuring are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a loan restructuring subsequently default, the Corporation evaluates the loan for possible further loss. 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 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) ​ Term Extension Percentage of Total Loan Type Weighted Average Term and Principal Payment Extension Six months ended June 30, 2026 ​ ​ ​ ​ ​ Owner-occupied commercial real estate ​ $ 857 0.32 % 12 months Commercial and industrial ​ ​ 18 0.01 % 4 months Total ​ $ 875 ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ Term Extension Percentage of Total Loan Type Weighted Average Term and Principal Payment Extension Six months ended June 30, 2025 ​ ​ ​ ​ ​ Owner-occupied commercial real estate ​ $ 874 0.38 % 12 months Commercial and industrial ​ ​ 24 0.01 % 60 months Total ​ $ 898 ​ ​ ​ ​ 28 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ (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 $ 18 ​ ​ 0.01 % ​ 4 months ​ $ 18 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (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 $ 874 ​ ​ 0.38 % ​ 12 months ​ $ 874 ​ ​ ​ ​ ​ ​ 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 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. 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. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL is adjusted by the same amount. ​ 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 . The fair value of an asset or liability is the price to sell an asset or to transfer a liability in an orderly transaction between willing market participants as of the measurement date. In estimating fair value, the Corporation utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. 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: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities. This level is the most reliable source of valuation. Level 2: Quoted prices that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield curves at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). It also includes inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs). Several sources are utilized for valuing these assets, including a contracted valuation service, Standard & Poor’s (“S&P”) evaluations and pricing services, and other valuation matrices. Level 3: Prices or valuation techniques that require inputs that are both significant to the valuation assumptions and not readily observable in the market (i.e. supported with little or no market activity). Level 3 instruments are valued based on the best available data, some of which is internally developed, and consider risk premiums that a market participant would require. 29 Table of Contents The level established within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Transfers in and out of Level 1, 2 or 3 are recorded at fair value at the beginning of the reporting period. Investments – The investment portfolio is classified and accounted for based on the guidance of ASC Topic 320, Investments – Debt and Equity Securities . The fair value of investments available-for-sale is determined using a market approach. 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 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. 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. 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 Topic 326 in ASU No. 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 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. These assets are included as Level 3 fair values based upon the lowest level of input that is significant to the fair value measurements. Other real estate owned (“OREO”) – OREO included in the table below are recorded with specific write-downs. Fair value of other real estate owned was based on independent third-party appraisals of the properties. These values were determined based on the sales prices of similar properties in the approximate geographic area. These assets are included as Level 3 fair values based upon the lowest level of input that is significant to the fair value measurements. ​ 30 Table of Contents 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 June 30, 2026 Using ​ ​ ​ ​ Quoted ​ ​ ​ ​ ​ ​ ​ ​ ​ Prices in ​ Significant ​ ​ ​ ​ ​ Assets ​ Active Markets ​ Other ​ Significant ​ ​ Measured at ​ for Identical ​ Observable ​ Unobservable ​ ​ Fair Value ​ Assets ​ Inputs ​ Inputs (in thousands) ​ ​ ​ 6/30/2026 ​ ​ ​ (Level 1) ​ ​ ​ (Level 2) ​ ​ ​ (Level 3) Recurring: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment securities available-for-sale: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government agencies ​ $ 1,376 ​ ​ ​ ​ $ 1,376 ​ ​ ​ Residential mortgage-backed agencies ​ ​ 21,387 ​ ​ ​ ​ ​ 21,387 ​ ​ ​ Commercial mortgage-backed agencies ​ ​ 32,671 ​ ​ ​ ​ ​ 32,671 ​ ​ ​ Collateralized mortgage obligations ​ ​ 25,667 ​ ​ ​ ​ ​ 25,667 ​ ​ ​ Obligations of states and political subdivisions ​ ​ 10,884 ​ ​ ​ ​ ​ 10,884 ​ ​ ​ Corporate bonds ​ ​ 954 ​ ​ ​ ​ ​ 954 ​ ​ ​ Collateralized debt obligations ​ ​ 15,058 ​ ​ ​ ​ ​ ​ ​ $ 15,058 Equity investments not held for trading with readily determinable fair values ​ ​ 1,044 ​ $ 1,044 ​ ​ ​ ​ ​ ​ Non-recurring: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Collateral dependent loans ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at December 31, 2025 Using ​ ​ ​ ​ Quoted ​ ​ ​ ​ ​ ​ ​ ​ Prices in ​ Significant ​ ​ ​ ​ Assets/(liabilities) ​ Active Markets ​ Other ​ Significant ​ ​ Measured at ​ for Identical ​ Observable ​ Unobservable ​ ​ Fair Value ​ Assets ​ Inputs ​ Inputs (in thousands) ​ ​ ​ 12/31/25 ​ ​ ​ (Level 1) ​ ​ ​ (Level 2) ​ ​ ​ (Level 3) Recurring: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment securities available-for-sale: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government agencies ​ $ 1,404 ​ ​ ​ ​ $ 1,404 ​ ​ ​ Residential mortgage-backed agencies ​ ​ 22,855 ​ ​ ​ ​ ​ 22,855 ​ ​ ​ Commercial mortgage-backed agencies ​ ​ 30,068 ​ ​ ​ ​ ​ 30,068 ​ ​ ​ Collateralized mortgage obligations ​ ​ 27,390 ​ ​ ​ ​ ​ 27,390 ​ ​ ​ Obligations of states and political subdivisions ​ ​ 8,525 ​ ​ ​ ​ ​ 8,525 ​ ​ ​ Corporate bonds ​ ​ 907 ​ ​ ​ ​ ​ 907 ​ ​ ​ Collateralized debt obligations ​ ​ 15,995 ​ ​ ​ ​ ​ ​ ​ $ 15,995 Equity investments not held for trading with readily determinable fair values ​ ​ 1,029 ​ $ 1,029 ​ ​ ​ ​ ​ ​ Financial derivatives ​ ​ 76 ​ ​ ​ ​ ​ 76 ​ ​ ​ Non-recurring: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Collateral dependent loans ​ ​ 266 ​ ​ ​ ​ ​ ​ ​ ​ 266 Other real estate owned ​ ​ 853 ​ ​ ​ ​ ​ ​ ​ ​ 853 ​ 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. ​ 31 Table of Contents 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) ​ ​ ​ Fair Value at June 30, 2026 ​ ​ ​ Valuation Technique ​ ​ ​ Significant Unobservable Inputs ​ ​ ​ Significant Unobservable Input Value Recurring: ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment securities – available for sale -CDO ​ $ 15,058 ​ Discounted Cash Flow ​ Discount Margin ​ Range of mid to upper 400 bps ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ Fair Value at December 31, 2025 ​ ​ ​ Valuation Technique ​ ​ ​ Significant Unobservable Inputs ​ ​ ​ Significant Unobservable Input Value Recurring: ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment securities – available for sale -CDO ​ $ 15,995 ​ Discounted Cash Flow ​ Discount Margin ​ Range of upper 200 to upper 400 bps ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-recurring: ​ ​ ​ ​ ​ ​ ​ ​ ​ Collateral dependent loans ​ $ 266 ​ Market Comparable Properties ​ Marketability Discount ​ N/A ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other real estate owned ​ $ 853 ​ Market Comparable Properties ​ Marketability Discount ​ 15.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 32 Table of Contents 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 six- and three-month periods ended June 30, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements ​ ​ Using Significant Unobservable Inputs ​ ​ (Level 3) ​ ​ Investment Securities (in thousands) ​ ​ ​ Available for Sale Beginning balance January 1, 2026 ​ $ 15,995 Total gains realized/unrealized: ​ ​ ​ Included in other comprehensive income ​ ​ 752 Total reductions due to call of investment ​ ​ ( 1,689 ) Ending balance June 30, 2026 ​ $ 15,058 ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements ​ ​ Using Significant Unobservable Inputs ​ ​ (Level 3) ​ ​ Investment Securities (in thousands) ​ ​ ​ Available for Sale Beginning balance January 1, 2025 ​ $ 14,718 Total gains realized/unrealized: ​ ​ ​ Included in other comprehensive income ​ ​ 523 Ending balance June 30, 2025 ​ $ 15,241 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands) ​ Investment Securities Available for Sale Beginning balance April 1, 2026 ​ $ 16,229 Total gains realized/unrealized: ​ ​ ​ Included in other comprehensive income ​ ​ 518 Total reductions due to call of investment ​ ​ ( 1,689 ) Ending balance June 30, 2026 ​ $ 15,058 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands) ​ Investment Securities Available for Sale Beginning balance April 1, 2025 ​ $ 14,697 Total gains realized/unrealized: ​ ​ ​ Included in other comprehensive income ​ ​ 544 Ending balance June 30, 2025 ​ $ 15,241 ​ 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. The derived fair values are subjective in nature and involve uncertainties and significant judgment. Therefore, they cannot be determined with precision. Changes in the assumptions could significantly impact the derived estimates of fair value. Disclosure of non-financial assets such as buildings, as well as certain financial instruments such as leases is not required. Accordingly, the aggregate fair values presented do not represent the underlying value of the Corporation. 33 Table of Contents The following tables present fair value information about financial instruments, whether or not recognized in the Consolidated Statement of Financial Condition, for which it is practicable to estimate that value. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 ​ Fair Value Measurements ​ ​ ​ ​ ​ ​ Quoted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Prices in ​ Significant ​ ​ ​ ​ ​ ​ ​ ​ Active Markets ​ Other ​ Significant ​ ​ ​ ​ ​ ​ for Identical ​ Observable ​ Unobservable ​ ​ Carrying ​ Fair ​ Assets ​ Inputs ​ Inputs (in thousands) ​ ​ ​ Amount ​ ​ ​ Value ​ ​ ​ (Level 1) ​ ​ ​ (Level 2) ​ ​ ​ (Level 3) Financial Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and due from banks ​ $ 84,195 ​ $ 84,195 ​ $ 84,195 ​ ​ ​ ​ ​ ​ Interest bearing deposits in banks ​ ​ 993 ​ ​ 993 ​ ​ 993 ​ ​ ​ ​ ​ ​ Investment securities - AFS ​ ​ 107,997 ​ ​ 107,997 ​ ​ ​ ​ $ 92,939 ​ $ 15,058 Investment securities - HTM ​ ​ 170,259 ​ ​ 146,368 ​ ​ ​ ​ ​ 144,886 ​ ​ 1,482 Equity securities not held for trading with readily determinable fair values ​ ​ 1,044 ​ ​ 1,044 ​ ​ 1,044 ​ ​ ​ ​ ​ ​ Restricted bank stock ​ ​ 1,621 ​ ​ N/A ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans, net ​ ​ 1,550,948 ​ ​ 1,518,149 ​ ​ ​ ​ ​ ​ ​ ​ 1,518,149 Accrued interest receivable ​ ​ 7,602 ​ ​ 7,602 ​ ​ ​ ​ ​ 938 ​ ​ 6,664 Financial Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deposits - non-maturity ​ ​ 1,563,455 ​ ​ 1,563,455 ​ ​ ​ ​ ​ 1,563,455 ​ ​ ​ Deposits - time deposits ​ ​ 172,058 ​ ​ 170,511 ​ ​ ​ ​ ​ 170,511 ​ ​ ​ Short-term borrowed funds ​ ​ 69,233 ​ ​ 69,233 ​ ​ ​ ​ ​ 69,233 ​ ​ ​ Long-term borrowed funds ​ ​ 30,929 ​ ​ 30,986 ​ ​ ​ ​ ​ 30,986 ​ ​ ​ Accrued interest payable ​ ​ 844 ​ ​ 844 ​ ​ ​ ​ ​ 844 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ Fair Value Measurements ​ ​ ​ ​ ​ ​ Quoted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Prices in ​ Significant ​ ​ ​ ​ ​ ​ ​ ​ Active Markets ​ Other ​ Significant ​ ​ ​ ​ ​ ​ for Identical ​ Observable ​ Unobservable ​ ​ Carrying ​ Fair ​ Assets ​ Inputs ​ Inputs (in thousands) ​ ​ ​ Amount ​ ​ ​ Value ​ ​ ​ (Level 1) ​ ​ ​ (Level 2) ​ ​ ​ (Level 3) Financial Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and due from banks ​ $ 129,830 ​ $ 129,830 ​ $ 129,830 ​ ​ ​ ​ ​ ​ Interest bearing deposits in banks ​ ​ 1,782 ​ ​ 1,782 ​ ​ 1,782 ​ ​ ​ ​ ​ ​ Investment securities - AFS ​ ​ 107,144 ​ ​ 107,144 ​ ​ ​ ​ $ 91,149 ​ $ 15,995 Investment securities - HTM ​ ​ 171,361 ​ ​ 148,889 ​ ​ ​ ​ ​ 147,144 ​ ​ 1,745 Equity investments not held for trading with readily determinable fair values ​ ​ 1,029 ​ ​ 1,029 ​ ​ 1,029 ​ ​ ​ ​ ​ ​ Restricted bank stock ​ ​ 4,630 ​ ​ N/A ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans, net ​ ​ 1,501,758 ​ ​ 1,469,463 ​ ​ ​ ​ ​ ​ ​ ​ 1,469,463 Financial derivative ​ ​ 76 ​ ​ 76 ​ ​ ​ ​ ​ 76 ​ ​ ​ Accrued interest receivable ​ ​ 7,904 ​ ​ 7,904 ​ ​ ​ ​ ​ 895 ​ ​ 7,009 Financial Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deposits - non-maturity ​ ​ 1,534,191 ​ ​ 1,534,191 ​ ​ ​ ​ ​ 1,534,191 ​ ​ ​ Deposits - time deposits ​ ​ 200,958 ​ ​ 199,967 ​ ​ ​ ​ ​ 199,967 ​ ​ ​ Short-term borrowed funds ​ ​ 17,661 ​ ​ 17,661 ​ ​ ​ ​ ​ 17,661 ​ ​ ​ Long-term borrowed funds ​ ​ 95,929 ​ ​ 95,775 ​ ​ ​ ​ ​ 95,775 ​ ​ ​ Accrued interest payable ​ ​ 953 ​ ​ 953 ​ ​ ​ ​ ​ 953 ​ ​ ​ ​ 34 Table of Contents Note 7 – Accumulated Other Comprehensive Loss 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ securities- ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ with credit ​ Investment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ related ​ securities- ​ Investment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ impairment ​ all other ​ securities- ​ Cash Flow ​ Pension ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ AFS ​ ​ ​ AFS ​ ​ ​ HTM ​ ​ ​ Hedge ​ ​ ​ Plan ​ ​ ​ SERP ​ ​ ​ Total Accumulated OCL, net: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance - January 1, 2026 ​ $ ( 2,377 ) ​ $ ( 10,383 ) ​ $ ( 4,212 ) ​ $ 73 ​ $ ( 8,246 ) ​ $ ( 121 ) ​ $ ( 25,266 ) Other comprehensive income/(loss) before reclassifications ​ ​ 162 ​ ​ ( 527 ) ​ ​ — ​ ​ ( 60 ) ​ ​ ( 877 ) ​ ​ — ​ ​ ( 1,302 ) Amounts reclassified from accumulated other comprehensive income ​ ​ ( 36 ) ​ ​ — ​ ​ 116 ​ ​ — ​ ​ 71 ​ ​ — ​ ​ 151 Balance - March 31, 2026 ​ $ ( 2,251 ) ​ $ ( 10,910 ) ​ $ ( 4,096 ) ​ $ 13 ​ $ ( 9,052 ) ​ $ ( 121 ) ​ $ ( 26,417 ) Other comprehensive income/(loss) before reclassifications ​ ​ 144 ​ ​ 32 ​ ​ — ​ ​ — ​ ​ 2,624 ​ ​ — ​ ​ 2,800 Amounts reclassified from accumulated other comprehensive income ​ ​ ( 38 ) ​ ​ — ​ ​ 118 ​ ​ — ​ ​ 71 ​ ​ — ​ ​ 151 Balance - June 30, 2026 ​ $ ( 2,145 ) ​ $ ( 10,878 ) ​ $ ( 3,978 ) ​ $ 13 ​ $ ( 6,357 ) ​ $ ( 121 ) ​ $ ( 23,466 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ securities- ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ with credit ​ Investment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ related ​ securities- ​ Investment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ impairment ​ all other ​ securities- ​ Cash Flow ​ Pension ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ AFS ​ ​ ​ AFS ​ ​ ​ HTM ​ ​ ​ Hedge ​ ​ ​ Plan ​ ​ ​ SERP ​ ​ ​ Total Balance - January 1, 2025 ​ $ ( 2,592 ) ​ $ ( 13,792 ) ​ $ ( 4,696 ) ​ $ 372 ​ $ ( 9,723 ) ​ $ 183 ​ $ ( 30,248 ) Other comprehensive income/(loss) before reclassifications ​ ​ 6 ​ ​ 1,357 ​ ​ — ​ ​ ( 85 ) ​ ​ ( 1,562 ) ​ ​ — ​ ​ ( 284 ) Amounts reclassified from accumulated other comprehensive income ​ ​ ( 37 ) ​ ​ — ​ ​ 113 ​ ​ — ​ ​ 97 ​ ​ — ​ ​ 173 Balance - March 31, 2025 ​ $ ( 2,623 ) ​ $ ( 12,435 ) ​ $ ( 4,583 ) ​ $ 287 ​ $ ( 11,188 ) ​ $ 183 ​ $ ( 30,359 ) Other comprehensive income/(loss)before reclassifications ​ ​ 365 ​ ​ 356 ​ ​ — ​ ​ ( 64 ) ​ ​ 1,545 ​ ​ — ​ ​ 2,202 Amounts reclassified from accumulated other comprehensive loss ​ ​ ( 37 ) ​ ​ — ​ ​ 120 ​ ​ — ​ ​ 97 ​ ​ — ​ ​ 180 Balance - June 30, 2025 ​ $ ( 2,295 ) ​ $ ( 12,079 ) ​ $ ( 4,463 ) ​ $ 223 ​ $ ( 9,546 ) ​ $ 183 ​ $ ( 27,977 ) ​ ​ 35 Table of Contents The following tables present the components of other comprehensive loss for the six- and three-month periods ended June 30, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Before ​ Tax ​ ​ Components of Other Comprehensive Income ​ Tax ​ (Expense) ​ ​ (in thousands) ​ ​ ​ Amount ​ ​ ​ Benefit ​ ​ ​ Net For the six months ended June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for sale (AFS) securities with credit related impairment: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gains ​ $ 417 ​ $ ( 111 ) ​ $ 306 Less: accretable yield recognized in income ​ ​ 101 ​ ​ ( 27 ) ​ ​ 74 Net unrealized gains on investments with credit related impairment ​ ​ 316 ​ ​ ( 84 ) ​ ​ 232 Available for sale securities – all other: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding losses ​ ​ ( 673 ) ​ ​ 178 ​ ​ ( 495 ) Net unrealized losses on all other AFS securities ​ ​ ( 673 ) ​ ​ 178 ​ ​ ( 495 ) Held to maturity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Less: amortization recognized in income ​ ​ ( 319 ) ​ ​ 85 ​ ​ ( 234 ) Net unrealized gains on HTM securities ​ ​ 319 ​ ​ ( 85 ) ​ ​ 234 Cash flow hedges: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding losses ​ ​ ( 76 ) ​ ​ 16 ​ ​ ( 60 ) Pension Plan: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized net actuarial gains ​ ​ 2,378 ​ ​ ( 631 ) ​ ​ 1,747 Less: amortization of unrecognized losses ​ ​ ( 194 ) ​ ​ 52 ​ ​ ( 142 ) Net pension plan asset adjustment ​ ​ 2,572 ​ ​ ( 683 ) ​ ​ 1,889 Other comprehensive income ​ $ 2,458 ​ $ ( 658 ) ​ $ 1,800 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Before ​ Tax ​ ​ Components of Other Comprehensive Income ​ Tax ​ (Expense) ​ ​ (in thousands) ​ ​ ​ Amount ​ ​ ​ Benefit ​ ​ ​ Net For the six months ended June 30, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for sale (AFS) securities with credit related impairment: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gains ​ $ 506 ​ $ ( 135 ) ​ $ 371 Less: accretable yield recognized in income ​ ​ 101 ​ ​ ( 27 ) ​ ​ 74 Net unrealized gains on investments with credit related impairment ​ ​ 405 ​ ​ ( 108 ) ​ ​ 297 Available for sale securities – all other: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gains ​ ​ 2,334 ​ ​ ( 621 ) ​ ​ 1,713 Net unrealized gains on all other AFS securities ​ ​ 2,334 ​ ​ ( 621 ) ​ ​ 1,713 Held to maturity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Less: amortization recognized in income ​ ​ ( 317 ) ​ ​ 84 ​ ​ ( 233 ) Net unrealized gains on HTM securities ​ ​ 317 ​ ​ ( 84 ) ​ ​ 233 Cash flow hedges: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding losses ​ ​ ( 189 ) ​ ​ 40 ​ ​ ( 149 ) Pension Plan: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized net actuarial losses ​ ​ ( 23 ) ​ ​ 6 ​ ​ ( 17 ) Less: amortization of unrecognized losses ​ ​ ( 265 ) ​ ​ 71 ​ ​ ( 194 ) Net pension plan asset adjustment ​ ​ 242 ​ ​ ( 65 ) ​ ​ 177 Other comprehensive income ​ $ 3,109 ​ $ ( 838 ) ​ $ 2,271 ​ ​ 36 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Components of Other Comprehensive Income (in thousands) ​ Before Tax Amount ​ Tax (Expense) Benefit ​ Net For the three months ended June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for sale (AFS) securities with credit related impairment: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gains ​ $ 197 ​ $ ( 53 ) ​ $ 144 Less: accretable yield recognized in income ​ ​ 50 ​ ​ ( 12 ) ​ ​ 38 Net unrealized gains on investments with credit related impairment ​ ​ 147 ​ ​ ( 41 ) ​ ​ 106 Available for sale securities – all other: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gains ​ ​ 44 ​ ​ ( 12 ) ​ ​ 32 Net unrealized gains on all other AFS securities ​ ​ 44 ​ ​ ( 12 ) ​ ​ 32 Held to maturity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Less: amortization recognized in income ​ ​ ( 161 ) ​ ​ 43 ​ ​ ( 118 ) Net unrealized gains on HTM securities ​ ​ 161 ​ ​ ( 43 ) ​ ​ 118 Pension Plan: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized net actuarial gains ​ ​ 3,571 ​ ​ ( 947 ) ​ ​ 2,624 Less: amortization of unrecognized loss ​ ​ ( 97 ) ​ ​ 26 ​ ​ ( 71 ) Net pension plan asset adjustment ​ ​ 3,668 ​ ​ ( 973 ) ​ ​ 2,695 Other comprehensive income ​ $ 4,020 ​ $ ( 1,069 ) ​ $ 2,951 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Components of Other Comprehensive Income (in thousands) ​ Before Tax Amount ​ Tax (Expense) Benefit ​ Net For the three months ended June 30, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for sale (AFS) securities with credit related impairment: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gains ​ $ 498 ​ $ ( 133 ) ​ $ 365 Less: accretable yield recognized in income ​ ​ 51 ​ ​ ( 14 ) ​ ​ 37 Net unrealized gains on investments with credit related impairment ​ ​ 447 ​ ​ ( 119 ) ​ ​ 328 Available for sale securities – all other: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gains ​ ​ 485 ​ ​ ( 129 ) ​ ​ 356 Net unrealized gains on all other AFS securities ​ ​ 485 ​ ​ ( 129 ) ​ ​ 356 Held to maturity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Less: amortization recognized in income ​ ​ ( 163 ) ​ ​ 43 ​ ​ ( 120 ) Net unrealized gains on HTM securities ​ ​ 163 ​ ​ ( 43 ) ​ ​ 120 Cash flow hedges: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding losses ​ ​ ( 81 ) ​ ​ 17 ​ ​ ( 64 ) Pension Plan: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized net actuarial gains ​ ​ 2,105 ​ ​ ( 560 ) ​ ​ 1,545 Less: amortization of unrecognized losses ​ ​ ( 133 ) ​ ​ 36 ​ ​ ( 97 ) Net pension plan asset adjustment ​ ​ 2,238 ​ ​ ( 596 ) ​ ​ 1,642 Other comprehensive income ​ $ 3,252 ​ $ ( 870 ) ​ $ 2,382 ​ ​ 37 Table of Contents 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 ​ Six months ended ​ ​ Accumulated Other Comprehensive Loss ​ June 30, ​ Affected Line Item in the Statement (in thousands) ​ ​ ​ 2026 ​ ​ 2025 Where Net Income is Presented Net unrealized gains on available for sale investment securities with credit related impairment: ​ ​ ​ ​ ​ ​ ​ ​ Accretable yield ​ $ 101 ​ $ 101 ​ Interest income on taxable investment securities Taxes ​ ​ ( 27 ) ​ ​ ( 27 ) ​ Provision for income tax expense ​ ​ $ 74 ​ $ 74 ​ Net of tax Net unrealized gains on held to maturity securities: ​ ​ ​ ​ ​ ​ ​ ​ Amortization ​ $ ( 319 ) ​ $ ( 317 ) ​ Interest income on taxable investment securities Taxes ​ ​ 85 ​ ​ 84 ​ Credit for income tax expense ​ ​ $ ( 234 ) ​ $ ( 233 ) ​ Net of tax Net pension plan asset adjustment: ​ ​ ​ ​ ​ ​ ​ ​ Amortization of unrecognized losses ​ $ ( 194 ) ​ $ ( 265 ) ​ Other Operating Expenses Taxes ​ ​ 52 ​ ​ 71 ​ Credit for income tax expense ​ ​ $ ( 142 ) ​ $ ( 194 ) ​ Net of tax Total reclassifications for the period ​ $ ( 302 ) ​ $ ( 353 ) ​ Net of tax ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts Reclassified from ​ Three Months Ended ​ ​ Accumulated Other Comprehensive Loss ​ June 30, ​ Affected Line Item in the Statement (in thousands) ​ 2026 ​ 2025 ​ Where Net Income is Presented Net unrealized gains on available for sale investment securities with credit related impairment: ​ ​ ​ ​ ​ ​ ​ ​ Accretable yield ​ $ 50 ​ $ 51 ​ Interest income on taxable investment securities Taxes ​ ​ ( 12 ) ​ ​ ( 14 ) ​ Provision for income tax expense ​ ​ $ 38 ​ $ 37 ​ Net of tax Net unrealized gains on held to maturity securities: ​ ​ ​ ​ ​ ​ ​ ​ Amortization ​ $ ( 161 ) ​ $ ( 163 ) ​ Interest income on taxable investment securities Taxes ​ ​ 43 ​ ​ 43 ​ Credit for income tax expense ​ ​ $ ( 118 ) ​ $ ( 120 ) ​ Net of tax Net pension plan asset adjustment: ​ ​ ​ ​ ​ ​ ​ ​ Amortization of unrecognized losses ​ $ ( 97 ) ​ $ ( 133 ) ​ Other Operating Expenses Taxes ​ ​ 26 ​ ​ 36 ​ Credit for income tax expense ​ ​ $ ( 71 ) ​ $ ( 97 ) ​ Net of tax Total reclassifications for the period ​ $ ( 151 ) ​ $ ( 180 ) ​ Net of tax ​ ​ ​ ​ ​ ​ ​ 38 Table of Contents ​ ​ ​ ​ ​ ​ 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. The Corporation complies with the provisions of ASC Topic 718, Compensation - Stock Compensation , in measuring and disclosing stock compensation cost. The measurement objective in ASC Paragraph 718-10-30-6 requires public companies to measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The cost is recognized in expense over the period in which an employee is required to provide service in exchange for the award (the vesting period). Pursuant to First United Corporation’s director compensation policy, each director receives an annual retainer of 1,000 shares of First United Corporation common stock, plus $ 15,000 to be paid, at the director’s election, in cash or additional shares of common stock. 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. 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 On March 26, 2020, pursuant to the Corporation’s Long Term Incentive Plan (the "LTIP"), which is a sub-plan of the Equity Plan, the Compensation Committee of First United Corporation’s Board of Directors (the "Compensation Committee") granted RSUs to the Corporation’s principal executive officer, its principal financial officer, and certain of its other executive officers. An RSU contemplates the issuance of shares of common stock of First United Corporation if and when the RSU vests. The RSUs granted to each of the foregoing officers consist of (i) a performance-vesting award for a three-year performance period and (ii) a time-vesting award that will vest ratably over a three-year period. Target performance levels were set based on the annual budget which supports the Corporation’s long-term objective of achieving high performance as compared to peers. Threshold performance is the minimum level of acceptable performance as defined by the Compensation Committee and maximum performance represented a level potentially achievable under ideal circumstances. Achievement of all threshold performance levels would result in each executive participant earning a payout at 50 % of his or her respective target award opportunity. Achievement of all target performance levels would result in the executive participant earning the target award. Achievement at or above all maximum performance levels would result in the executive participant earning 150 % of the target opportunity. Actual results for any goal that falls between performance levels would be interpolated to calculate a proportionate award. 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 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. The performance period for the performance-vesting RSUs was the three-year period ended December 31, 2024. The time-vesting RSUs vested ratably over a three-year period that began on March 9, 2022. 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 39 Table of Contents 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 $ 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 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. 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 $ 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. The performance period for the performance-vesting RSUs is the three-year period ending December 31, 2026. The time-vesting RSUs will vest ratably over a three-year period that began on May 20, 2024. On May 20, 2025, 2,219 shares of the 6,662 time-vesting RSUs were issued to participants. 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. 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 that began on February 25, 2025. On February 25, 2026, 1,599 shares underlying the time-vesting RSUs were issued to participants. 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. 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 As a part of managing interest rate risk, the Corporation entered into interest rate swap agreements to modify the re-pricing characteristics of certain interest-bearing liabilities. The Corporation has designated its interest rate swap agreements as cash flow hedges under the guidance of ASC Subtopic 815-30, Derivatives and Hedging – Cash Flow Hedges . Cash flow hedges have the effective portion of changes in the fair value of the derivative, net of taxes, recorded in net accumulated other comprehensive income. 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 40 Table of Contents $ 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of gain or ​ ​ ​ ​ ​ ​ ​ ​ (loss) recognized in ​ ​ Amount of loss ​ Amount of gain or ​ income or derivative ​ ​ recognized in ​ (loss) reclassified from ​ (ineffective portion ​ ​ OCI on derivative ​ accumulated OCI into ​ and amount excluded ​ ​ (effective portion), ​ income (effective ​ from effectiveness (in thousands) ​ ​ ​ net of tax ​ ​ ​ portion) (a) ​ ​ ​ testing) (b) Interest rate contracts: ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 ​ $ ( 60 ) ​ $ — ​ $ — June 30, 2025 ​ ​ ( 149 ) ​ ​ — ​ ​ — Three months ended: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 ​ $ — ​ $ — ​ $ — June 30, 2025 ​ ​ ( 64 ) ​ ​ — ​ ​ — Notes: (a) Reported as interest expense (b) Reported as other income Note 10 – Regulatory Capital Requirements The following table presents the Bank’s capital ratios as of June 30, 2026 and December 31, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 ​ ​ ​ December 31, 2025 ​ ​ ​ Required for Capital Adequacy Purposes ​ ​ ​ Required to be Well Capitalized Total Capital (to risk-weighted assets) ​ 15.22 % 15.19 % 8.00 % 10.00 % Tier 1 Capital (to risk-weighted assets) ​ 13.96 % 13.94 % 6.00 % 8.00 % Common Equity Tier 1 Capital (to risk-weighted assets) ​ 13.96 % 13.94 % 4.50 % 6.50 % Tier 1 Capital (to average assets) ​ 11.56 % 11.01 % 4.00 % 5.00 % ​ As of June 30, 2026 and December 31, 2025, the Bank was considered “well capitalized” under the regulatory framework for prompt corrective action. ​ 41 Table of Contents Note 11 – Deposits The following table summarizes deposits at June 30, 2026 and December 31, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ June 30, 2026 ​ ​ ​ December 31, 2025 ​ ​ ​ Balance ​ Percent ​ ​ Balance ​ Percent Non-Interest-bearing deposits: ​ $ 441,365 ​ ​ ​ 25 % ​ $ 453,036 ​ 26 % Interest-bearing deposits: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Demand ​ ​ 406,118 ​ 24 % ​ ​ 392,823 ​ 23 % Money market-retail ​ ​ 557,110 ​ 33 % ​ ​ 529,870 ​ 30 % Money market- brokered ​ ​ 1 ​ 0 % ​ ​ 1 ​ 0 % Savings deposits ​ ​ 158,861 ​ 9 % ​ ​ 158,461 ​ 9 % Time deposits- retail ​ ​ 147,058 ​ 8 % ​ ​ 150,958 ​ 9 % Time deposits- brokered ​ ​ 25,000 ​ 1 % ​ ​ 50,000 ​ 3 % Total Deposits ​ $ 1,735,513 ​ 100 % ​ $ 1,735,149 ​ 100 % ​ ​ Note 12 – Borrowed Funds The following is a summary of borrowings at June 30, 2026 and December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ June 30, 2026 ​ December 31, 2025 Short-term borrowings: ​ ​ ​ ​ ​ ​ Securities sold under agreements to repurchase: ​ ​ ​ ​ ​ ​ Outstanding at end of period ​ $ 19,233 ​ $ 17,661 Weighted average interest rate at end of period ​ ​ 0.22 % ​ ​ 0.22 % Maximum amount outstanding as of any month end ​ $ 25,874 ​ $ 26,756 Average amount outstanding ​ $ 19,281 ​ $ 19,565 Approximate weighted average rate during the period ​ ​ 0.19 % ​ ​ 0.22 % Overnight borrowings, weighted average interest rate of 3.75 % at June 30, 2026 ​ $ 50,000 ​ $ — Long-term borrowings: ​ ​ ​ ​ ​ ​ FHLB advances, bearing fixed interest rate of 3.84 % at December 31, 2025 ​ $ — ​ $ 65,000 Junior subordinated debt, bearing variable interest rate of 6.68 % at June 30, 2026 and 6.72 % at December 31, 2025 ​ ​ 30,929 ​ ​ 30,929 Total borrowings outstanding ​ $ 100,162 ​ $ 113,590 ​ ​ ​ ​ ​ ​ ​ ​ 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 June 30, 2026 and December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 ​ December 31, 2025 (in thousands) ​ Fixed Rate ​ Floating Rate ​ Total ​ Fixed Rate ​ Floating Rate ​ Total Due in 2026 ​ $ — ​ $ — ​ $ — ​ $ 65,000 ​ $ — ​ $ 65,000 Due in 2027 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Thereafter ​ ​ — ​ ​ 30,929 ​ ​ 30,929 ​ ​ — ​ ​ 30,929 ​ ​ 30,929 Total long-term debt ​ $ — ​ $ 30,929 ​ $ 30,929 ​ $ 65,000 ​ $ 30,929 ​ $ 95,929 ​ ​ ​ 42 Table of Contents Note 13 – Segment Reporting The Corporation is managed under an organizational structure that conducts business in two primary operating segments; (i) Community Banking and (ii) Wealth Management. The Corporation is primarily managed based on the line of business structure. In that regard, the Corporation provides the same lines of business, which have the same product and service offerings, have similar types and classes of customers and utilize similar service delivery methods across our entire geographic footprint. Pricing guidelines for products and services are across all regions. 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: Community Banking : The Community Banking segment is conducted through the Bank and involves delivering a broad range of financial products and services, including various loan and deposit products, to consumer, business, and not-for-profit customers. Parent company income and assets are included in the Community Banking segment, as the majority of parent company functions are related to this segment. Major revenue sources include net interest income, gains on sales of mortgage loans, and service charges on deposit accounts. Expenses include salaries and employee benefits, occupancy, data processing, FDIC premiums, marketing, equipment, and other expenses. Wealth Management : 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 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. 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 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 $ 1.9 billion at June 30, 2026 and $ 1.8 billion at December 31, 2025. ​ 43 Table of Contents 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Community ​ Wealth ​ ​ ​ (in thousands) ​ ​ Banking ​ ​ ​ Management ​ ​ ​ Total Interest income ​ ​ $ 51,880 ​ $ — ​ $ 51,880 Interest expense ​ ​ ​ 15,220 ​ ​ — ​ ​ 15,220 Net interest income ​ ​ ​ 36,660 ​ ​ — ​ ​ 36,660 Credit loss expense ​ ​ ​ 1,660 ​ ​ — ​ ​ 1,660 Net interest income after credit loss expense ​ ​ ​ 35,000 ​ ​ — ​ ​ 35,000 Other operating income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net gains on sales of residential mortgages ​ ​ ​ 125 ​ ​ — ​ ​ 125 Service charges on deposit accounts ​ ​ ​ 1,115 ​ ​ — ​ ​ 1,115 Other service charges ​ ​ ​ 393 ​ ​ — ​ ​ 393 Trust department income ​ ​ ​ — ​ ​ 5,238 ​ ​ 5,238 Debit card income ​ ​ ​ 1,977 ​ ​ — ​ ​ 1,977 Brokerage commissions ​ ​ ​ — ​ ​ 770 ​ ​ 770 Other segment income (1) ​ ​ ​ 1,080 ​ ​ — ​ ​ 1,080 Total other operating income ​ ​ ​ 4,690 ​ ​ 6,008 ​ ​ 10,698 Other operating expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Salaries and employee benefits ​ ​ ​ 13,764 ​ ​ 2,594 ​ ​ 16,358 Equipment and occupancy ​ ​ ​ 2,416 ​ ​ 45 ​ ​ 2,461 Data processing ​ ​ ​ 3,179 ​ ​ 224 ​ ​ 3,403 FDIC premiums ​ ​ ​ 553 ​ ​ — ​ ​ 553 Other segment expenses (2) ​ ​ ​ 6,459 ​ ​ 224 ​ ​ 6,683 Total operating expenses ​ ​ ​ 26,371 ​ ​ 3,087 ​ ​ 29,458 Income before income taxes and intercompany fees ​ ​ ​ 13,319 ​ ​ 2,921 ​ ​ 16,240 Intercompany management fee income/(expense) ​ ​ ​ 6 ​ ​ ( 6 ) ​ ​ — Income before income taxes ​ ​ ​ 13,325 ​ ​ 2,915 ​ ​ 16,240 Income tax expense ​ ​ ​ 3,297 ​ ​ 613 ​ ​ 3,910 Net income ​ ​ $ 10,028 ​ $ 2,302 ​ $ 12,330 Significant noncash items ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit loss expense ​ ​ $ 1,660 ​ $ — ​ $ 1,660 Depreciation ​ ​ ​ 1,207 ​ ​ 8 ​ ​ 1,215 Amortization of intangible assets ​ ​ ​ 60 ​ ​ 105 ​ ​ 165 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill and other intangibles ​ ​ $ 11,174 ​ $ 105 ​ $ 11,279 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets ​ ​ $ 2,081,949 ​ $ 143 ​ $ 2,082,092 ​ (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. ​ 44 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended ​ ​ ​ ​ June 30, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Community ​ Wealth ​ ​ ​ (in thousands) ​ ​ Banking ​ ​ ​ Management ​ ​ ​ Total Interest income ​ ​ $ 48,933 ​ $ — ​ $ 48,933 Interest expense ​ ​ ​ 16,210 ​ ​ — ​ ​ 16,210 Net interest income ​ ​ ​ 32,723 ​ ​ — ​ ​ 32,723 Credit loss expense ​ ​ ​ 1,516 ​ ​ — ​ ​ 1,516 Net interest income after credit loss expense ​ ​ ​ 31,207 ​ ​ — ​ ​ 31,207 Other operating income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net gains on sales of residential mortgages ​ ​ ​ 238 ​ ​ — ​ ​ 238 Service charges on deposit accounts ​ ​ ​ 1,124 ​ ​ — ​ ​ 1,124 Other service charges ​ ​ ​ 420 ​ ​ — ​ ​ 420 Trust department income ​ ​ ​ — ​ ​ 4,709 ​ ​ 4,709 Debit card income ​ ​ ​ 1,904 ​ ​ — ​ ​ 1,904 Brokerage commissions ​ ​ ​ — ​ ​ 791 ​ ​ 791 Other segment income (1) ​ ​ ​ 814 ​ ​ — ​ ​ 814 Total other operating income ​ ​ ​ 4,500 ​ ​ 5,500 ​ ​ 10,000 Other operating expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Salaries and employee benefits ​ ​ ​ 12,397 ​ ​ 2,253 ​ ​ 14,650 Equipment and occupancy ​ ​ ​ 2,457 ​ ​ 50 ​ ​ 2,507 Data processing ​ ​ ​ 2,908 ​ ​ 195 ​ ​ 3,103 FDIC premiums ​ ​ ​ 512 ​ ​ — ​ ​ 512 Other segment expenses (2) ​ ​ ​ 4,540 ​ ​ 238 ​ ​ 4,778 Total operating expenses ​ ​ ​ 22,814 ​ ​ 2,736 ​ ​ 25,550 Income before income taxes and intercompany fees ​ ​ ​ 12,893 ​ ​ 2,764 ​ ​ 15,657 Intercompany management fee income/(expense) ​ ​ ​ 6 ​ ​ ( 6 ) ​ ​ — Income before income taxes ​ ​ ​ 12,899 ​ ​ 2,758 ​ ​ 15,657 Income tax expense ​ ​ ​ 3,287 ​ ​ 580 ​ ​ 3,867 Net income ​ ​ $ 9,612 ​ $ 2,178 ​ $ 11,790 Significant noncash items ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit loss expense ​ ​ $ 1,516 ​ $ — ​ $ 1,516 Depreciation ​ ​ ​ 1,302 ​ ​ 9 ​ ​ 1,311 Amortization of intangible assets ​ ​ ​ 60 ​ ​ 104 ​ ​ 164 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill and other intangibles ​ ​ $ 11,295 ​ $ 314 ​ $ 11,609 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets ​ ​ $ 2,007,120 ​ $ 351 ​ $ 2,007,471 ​ ​ (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. ​ ​ 45 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended ​ ​ ​ ​ June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Community ​ Wealth ​ ​ ​ (in thousands) ​ ​ Banking ​ ​ ​ Management ​ ​ ​ Total Interest income ​ ​ $ 26,169 ​ $ — ​ $ 26,169 Interest expense ​ ​ ​ 7,583 ​ ​ — ​ ​ 7,583 Net interest income ​ ​ ​ 18,586 ​ ​ — ​ ​ 18,586 Credit loss expense ​ ​ ​ 781 ​ ​ — ​ ​ 781 Net interest income after credit loss expense ​ ​ ​ 17,805 ​ ​ — ​ ​ 17,805 Other operating income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net gains on sales of residential mortgages ​ ​ ​ 39 ​ ​ — ​ ​ 39 Service charges on deposit accounts ​ ​ ​ 568 ​ ​ — ​ ​ 568 Other service charges ​ ​ ​ 204 ​ ​ — ​ ​ 204 Trust department income ​ ​ ​ — ​ ​ 2,684 ​ ​ 2,684 Debit card income ​ ​ ​ 1,046 ​ ​ — ​ ​ 1,046 Brokerage commissions ​ ​ ​ — ​ ​ 388 ​ ​ 388 Other segment income (1) ​ ​ ​ 429 ​ ​ — ​ ​ 429 Total other operating income ​ ​ ​ 2,286 ​ ​ 3,072 ​ ​ 5,358 Other operating expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Salaries and employee benefits ​ ​ ​ 6,803 ​ ​ 1,354 ​ ​ 8,157 Equipment and occupancy ​ ​ ​ 1,196 ​ ​ 19 ​ ​ 1,215 Data processing ​ ​ ​ 1,622 ​ ​ 117 ​ ​ 1,739 FDIC premiums ​ ​ ​ 274 ​ ​ — ​ ​ 274 Other segment expenses (2) ​ ​ ​ 4,252 ​ ​ 128 ​ ​ 4,380 Total operating expenses ​ ​ ​ 14,147 ​ ​ 1,618 ​ ​ 15,765 Income before income taxes and intercompany fees ​ ​ ​ 5,944 ​ ​ 1,454 ​ ​ 7,398 Intercompany management fee income/(expense) ​ ​ ​ 3 ​ ​ ( 3 ) ​ ​ — Income before income taxes ​ ​ ​ 5,947 ​ ​ 1,451 ​ ​ 7,398 Income tax expense ​ ​ ​ 1,426 ​ ​ 305 ​ ​ 1,731 Net income ​ ​ $ 4,521 ​ $ 1,146 ​ $ 5,667 Significant noncash items: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit loss expense ​ ​ $ 781 ​ $ — ​ $ 781 Depreciation ​ ​ ​ 611 ​ ​ 5 ​ ​ 616 Amortization of intangible assets ​ ​ ​ 29 ​ ​ 53 ​ ​ 82 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill and other intangibles ​ ​ $ 11,174 ​ $ 105 ​ $ 11,279 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets ​ ​ $ 2,081,949 ​ $ 143 ​ $ 2,082,092 ​ (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. ​ ​ ​ ​ ​ ​ ​ ​ ​ 46 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended ​ ​ ​ ​ June 30, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Community ​ Wealth ​ ​ ​ (in thousands) ​ ​ Banking ​ ​ ​ Management ​ ​ ​ Total Interest income ​ ​ $ 24,871 ​ $ — ​ $ 24,871 Interest expense ​ ​ ​ 8,164 ​ ​ — ​ ​ 8,164 Net interest income ​ ​ ​ 16,707 ​ ​ — ​ ​ 16,707 Credit loss expense ​ ​ ​ 860 ​ ​ — ​ ​ 860 Net interest income after credit loss expense ​ ​ ​ 15,847 ​ ​ — ​ ​ 15,847 Other operating income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net gains on sales of residential mortgages ​ ​ ​ 146 ​ ​ — ​ ​ 146 Service charges on deposit accounts ​ ​ ​ 577 ​ ​ — ​ ​ 577 Other service charges ​ ​ ​ 214 ​ ​ — ​ ​ 214 Trust department income ​ ​ ​ — ​ ​ 2,386 ​ ​ 2,386 Debit card income ​ ​ ​ 983 ​ ​ — ​ ​ 983 Brokerage commissions ​ ​ ​ — ​ ​ 370 ​ ​ 370 Other segment income (1) ​ ​ ​ 410 ​ ​ — ​ ​ 410 Total other operating income ​ ​ ​ 2,330 ​ ​ 2,756 ​ ​ 5,086 Other operating expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Salaries and employee benefits ​ ​ ​ 6,150 ​ ​ 1,169 ​ ​ 7,319 Equipment and occupancy ​ ​ ​ 1,215 ​ ​ 25 ​ ​ 1,240 Data processing ​ ​ ​ 1,500 ​ ​ 100 ​ ​ 1,600 FDIC premiums ​ ​ ​ 267 ​ ​ — ​ ​ 267 Other segment expenses (2) ​ ​ ​ 2,437 ​ ​ 111 ​ ​ 2,548 Total operating expenses ​ ​ ​ 11,569 ​ ​ 1,405 ​ ​ 12,974 Income before income taxes and intercompany fees ​ ​ ​ 6,608 ​ ​ 1,351 ​ ​ 7,959 Intercompany management fee income/(expense) ​ ​ ​ 3 ​ ​ ( 3 ) ​ ​ — Income before income taxes ​ ​ ​ 6,611 ​ ​ 1,348 ​ ​ 7,959 Income tax expense ​ ​ ​ 1,692 ​ ​ 283 ​ ​ 1,975 Net income ​ ​ $ 4,919 ​ $ 1,065 ​ $ 5,984 Significant noncash items: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit loss expense ​ ​ $ 860 ​ $ — ​ $ 860 Depreciation ​ ​ ​ 646 ​ ​ 9 ​ ​ 655 Amortization of intangible assets ​ ​ ​ 30 ​ ​ 52 ​ ​ 82 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill and other intangibles ​ ​ $ 11,295 ​ $ 314 ​ $ 11,609 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets ​ ​ $ 2,007,120 ​ $ 351 ​ $ 2,007,471 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (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. ​ ​ ​ ​ ​ ​