What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-07 compared with 2025-11-06 · 398 added, 575 removed, 433 unchanged (69% of the section changed)

61 unchanged sentences

The Company defines reporting units as a level below each of its operating segments for which there is discrete financial information that is regularly reviewed.

As of September 30 , 2025, the Company had one reporting unit to which goodwill has been allocated – the Bank.

As of March 31, 2026 , the Company had one reporting unit to which goodwill has been allocated – the Bank.

If the fair value of a reporting unit exceeds its carrying value, then no impairment is recorded.

1 unchanged sentence

Intangible assets that are not amortized are tested for impairment at least annually by comparing the fair values of those assets to their carrying values.

At September 30 , 2025, goodwill consisted of $5.4 million at the Bank reporting unit, which included goodwill of $4.2 million that was recorded during 2016 related to the acquisition of 12 branches and the assumption of related deposits in the St.

At March 31, 2026 , goodwill consisted of $5.4 million at the Bank reporting unit, which included goodwill of $4.2 million that was recorded during 2016 related to the acquisition of 12 branches and the assumption of related deposits in the St.

Louis market.

Other identifiable deposit intangible assets that are subject to amortization are amortized on a straight-line basis and are now fully amortized.

In April 2022, the Company, through its subsidiary Great Southern Bank, entered into a naming rights agreement with Missouri State University related to the main arena on the university’s campus in Springfield, Missouri.

Other identifiable deposit intangible assets that were subject to amortization were amortized on a straight-line basis over a period of seven years and have been fully amortized.

In April 2022, the Company, through its subsidiary Great Southern Bank, entered into a naming rights agreement with Missouri State University related to the main arena on its campus in Springfield, Missouri.

The terms of the agreement provide the naming rights to Great Southern Bank for a total cost of $5.5 million, to be paid over a period of seven years.

The Company expects to amortize the naming rights intangible assets through non-interest expense over a period not to exceed 15 years.

At September 30 , 2025, the amortizable intangible assets included the arena naming rights of $4.4 million, which are reflected in the table below.

The Company has been amortizing the naming rights intangible assets through non-interest expense over a period not to exceed 15 years.

At March 31, 2026, the amortizable intangible assets included the arena naming rights of $4.2 million, which are reflected in the table below.

These amortizable intangible assets are reviewed for impairment if circumstances indicate their value may not be recoverable based on a comparison of fair value.

During both the three months ended March 31, 2026 and the three months ended March 31, 2025, the amortization expense of the arena naming rights was $108,000.

For purposes of testing goodwill for impairment, the Company uses a market approach to value its reporting unit.

2 unchanged sentences

This judgment may include developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables and incorporating general economic and market conditions.

Our regular annual impairment assessment occurs in the third quarter of each year.

The Company performed this annual review as of September 30, 2025 and concluded that no impairment of its goodwill or other intangible assets had occurred as of that date.

While management believes no impairment existed as of September 30, 2025, different conditions or assumptions used to measure fair value of the reporting unit, or changes in cash flows or profitability, if significantly negative or unfavorable, could have a material adverse effect on the outcome of the Company’s impairment evaluation in the future.

Management does not believe any of the Company’s goodwill or other intangible assets were impaired as of March 31, 2026.

While management believes no impairment existed as of March 31, 2026, different conditions or assumptions used to measure fair value of the reporting unit, or changes in cash flows or profitability, if significantly negative or unfavorable, could have a material adverse effect on the outcome of the Company’s impairment evaluation in the future.

A summary of goodwill and intangible assets as of the dates indicated is as follows:

September 30,

(In Thousands)

2 unchanged sentences

Current Economic Conditions

Changes in economic conditions could cause the values of assets and liabilities recorded in the Company’s financial statements to change rapidly, resulting in material future adjustments to asset values, the allowance for credit losses, or capital that could negatively affect the Company’s ability to meet regulatory capital requirements and maintain sufficient liquidity.

Changes in economic conditions could cause the values of assets and liabilities recorded in the Company’s financial statements to fluctuate rapidly, resulting in material future adjustments to asset values, the allowance for credit losses, or capital that could negatively affect the Company’s ability to meet regulatory capital requirements and maintain sufficient liquidity.

Following the housing and mortgage crisis and correction beginning in mid-2007, the United States entered an economic downturn.

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Purchases of Treasury and agency mortgage-backed securities totaling $120 billion each month by the Federal Reserve commenced shortly after the pandemic began.

In November 2021, the Federal Reserve began to taper its quantitative easing (QE), winding down its bond purchases with its final open market purchase conducted on March 9, 2022.

In November 2021, the Federal Reserve began to taper its quantitative easing (QE), winding down its bond purchases with its final open market purchase

conducted on March 9, 2022.

The federal government deficit was $2.8 trillion in fiscal 2021, close to $1.4 trillion in fiscal 2022, and $1.7 trillion in fiscal 2023.

The Federal Reserve aggressively raised the federal funds interest rates from early 2022 through mid - 2023, pushing the federal funds rate to more than 5.50%, its highest level in 22 years.The federal funds rate range was 5.25% to 5.50% until mid-September 2024.The range has steadily lowered since the high in mid-2023.The target range in 2025 until mid-September was 4.25% to 4.50%, at which point it was lowered to 4.00% to 4.25%.

In late October 2025, the target range was lowered again, to 3.75% to 4.00%.

The Federal Reserve aggressively raised the federal funds interest rates from early 2022 through mid - 2023, pushing the federal funds rate to more than 5.50%, its highest level in 22 years.

The Federal Reserve’s actions were motivated by surging inflation in 2021 caused by pandemic-fueled spending, which outpaced the ability of producers to supply goods and services after having been impacted by COVID-related shutdowns and clogged transportation systems.

The Federal Reserve made some headway in its attempt to force inflation down.

The federal funds rate range was between 5.25% to 5.50% until mid-September 2024.

The target range decreased in December 2025 to 3.50%-3.75%, which carried over to the first quarter of 2026.

The personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation, eased from its peak of 7.1% in June 2022 to 2.9% in December 2023.

At September 30, 2025, Core PCE, which excludes food and energy prices, rose 3.0% from one year ago, above the Federal Reserve’s target of 2%.

At March 31, 2026, Core PCE, which excludes food and energy prices, rose 3.2% from one year ago;

the Federal Reserve’s target is 2%.

Based on Moody’s U.S.

Baseline Outlook and Alternative Scenarios Analysis dated September 2025, real GDP in 2025 is projected to rise 1.8% on an annual average basis;

this is an increase to prior GDP forecasts for 2025, which anticipated growth of 1.1%.

The new outlook on GDP growth for 2026 and 2027 is 1.4% and 1.7%, respectively, which is a slight decrease from the previous projection of 1.4% and 1.8%.

The national unemployment rate increased slightly to 4.3% for August 2025 compared to June 2025 at 4.1%.The number of unemployed individuals was 7.4 million as of August 2025.

In August 2025, healthcare, social assistance, and nonfarm payroll employment contributed 69,000 of total job gains.

As of August 2025, the labor force participation rate (the share of working-age Americans employed or actively looking for a job) remained stable at 62.3%.

The unemployment rate for the Midwest, where the Company conducts most of its business, was unchanged from the quarter ended June 2025 to the month ended August 2025 at 4.2%.Unemployment rates for August 2025 in the states where the Company has a branch or a loan production office were:

Arizona at 4.1%, Arkansas at 3.8%, Colorado at 4.2%, Georgia at 3.4%, Illinois at 4.4%, Iowa at 3.8%, Kansas at 3.8%, Minnesota at 3.6%, Missouri at 4.1%, Nebraska at 3.0%, North Carolina at 3.7%, and Texas at 4.1%.

These rates were relatively unchanged for a majority of the states compared to June 2025.

Baseline Outlook and Alternative Scenarios Analysis dated April 2026, real GDP grew in the fourth quarter of 2025 by 0.7% annualized.

The new April outlook on GDP growth for 2026 and 2027 is 2.3% and 1.7%, respectively, which is a decrease for 2026 from January’s projection of 2.6% and an increase for 2027, which was 1.5%.

The national unemployment rate decreased slightly to 4.3% for March 2026 compared to February 2026 at 4.4%.

The number of unemployed individuals was 7.2 million as of March 2026.

Healthcare, construction, social assistance, transportation and warehousing contributed 137,000 of the total job gains in March 2026.

As of March 2026, the labor force participation rate (the share of working-age Americans employed or actively looking for a job) remained stable at 61.9%.

The unemployment rate for the Midwest, where the Company conducts most of its business, increased from 4.2% for February 2026 to a preliminary 4.6% for March 2026.

Unemployment rates for March 2026 in the states where the Company has a branch or a loan production office were Arizona at 4.7%, Arkansas at 4.7%, Colorado at 3.9%, Georgia at 3.5%, Illinois at 5.1%, Iowa at 3.3%, Kansas at 3.9%, Minnesota at 4.5%, Missouri at 3.9%, Nebraska at 3.1%, North Carolina at 3.7%, and Texas at 4.3%.

These rates are relatively unchanged for a majority of the states compared to February 2026.

Single Family Housing

Existing-home sales increased 1.5% in September 2025, compared to August 2025, to a seasonally adjusted annual rate of 4.06 million;

year-over-year existing home sales increased 4.1%.

In the Midwest, existing-home sales slowed to 2.1% in September 2025 at an annual rate of 940,000, up 2.2% from one year earlier.

The median existing-home sales price rose 2.1% from September 2024 to $415,200 in September 2025.

The median price in the Midwest was $320,800, up 4.7% from September 2024.

All regions reported median price increases when compared to the prior year.

Total housing inventory registered at the end of September 2025 was 1.55 million units, up 1.3% from August 2025 and 14.0% from one year ago.

Unsold inventory sat at a 4.6-month supply at the end of September 2025, no change from August 2025, and up from 4.2 months at the end of September 2024.

Existing-home sales decreased 3.6% in March 2026, compared to February 2026, to a seasonally adjusted annual rate of 3.98 million;

year-over-year existing home sales decreased 1.0%.

In the Midwest, existing-home sales slowed by 4.2% in March 2026 to an annual rate of $920,000, down 3.2% from one year earlier.

The median existing-home sales price rose 1.4% from March 2025 to $408,800 in March 2026.

The median price in the Midwest was $315,500, up 4.9% from March 2025.

The South region reported a median price increase when compared to the prior year of 0.8% and the West region reported a median price decrease when compared to the prior year of 1.3%.

Total housing inventory registered at the end of March 2026 was 1.36 million units, up 3.0% from February 2026 and up 2.3% from one year ago.

Unsold inventory sat at a 4.1-month supply at the end of March 2026, up from 3.8 months at the end of February 2026 and up from 4.0 months at the end of March 2025.

New home construction dropped precipitously after the financial crisis of 2007-2008 and has yet to fully recover.

Issues contributing to the country’s current housing shortage include increasing labor and materials costs, availability of building materials, increased interest rates and tighter lending underwriting standards.

Single-family housing starts in August 2025 were at a rate of 890,000, 7% below the revised figure for July 2025 of $957,000 but 11.7% below August 2024.

Sales of new single‐family houses in August 2025 were at a seasonally adjusted annual rate of 800,000 according to the U.S.

Single-family housing starts in March 2026 were at an annual rate of 1,032,000, 9.7% above the revised figure for February 2026 of 941,000.

Sales of new single‐family houses in March 2026 were at a seasonally adjusted annual rate of 682,000 according to the U.S.

Census Bureau and the Department of Housing and Urban Development.

This was 20.5% above the July 2025 rate of 664,000 and 15.4% above the August 2024 rate of 693,000.

The median sales price of new houses sold in August 2025 was $413,500, which is 4.7% above the July 2025 median price of $395,100.

The seasonally‐adjusted estimate of new houses for sale at the end of August 2025 represented a supply of 7.4 months at the current sales rate.

According to Freddie Mac, the average commitment rate for a 30-year, fixed-rate mortgage was 6.19% as of October 23, 2025, down from 6.54% one year ago.

This was 7.4% above the February 2026 rate of 635,000 and 3.3% above the March 2025 rate of 660,000.

The median sales price of new houses sold in March 2026 was $387,400, 5.3% below the median price of $409,000 in February 2026.

The seasonally adjusted estimate of new houses for sale at the end of March 2026 represented a supply of 8.5 months at the current sales rate.

According to Freddie Mac, the average commitment rate for a 30-year, fixed-rate mortgage was 6.30% as of April 21, 2026, down from 6.83% one year ago.

Other Residential (Multi-Family) Housing and Commercial Real Estate

According to CoStar, the U.S.

apartment market’s supply-demand balance is ready for a rebalancing.

Annual absorption is projected to exceed net deliveries over the next year, for the first time since Q1 2022.

This turning point in the supply/absorption balance should accelerate overall vacancy declines, supported by a shrinking construction pipeline and robust renter demand.

However, vacancy compression appears to have stalled in 2025, with vacancy holding steady at its current rate of 8.2% since the beginning of the year.

This stability reflects rising vacancy of lower quality segments offsetting declines in the higher quality, 4- and 5-Star apartment segment, where absorption has outpaced supply.

As a result, vacancy for 4- and 5-Star apartments has declined from a peak of 11.8% to 10.9%, and is forecasted to continue falling through year-end.Large markets in the South and Southwest, such as Dallas and Atlanta, were absorption leaders.Absorption increases are also fueled by generational transitions – older members of Gen Z as well as Baby Boomers are making their way to rental properties rather than home ownership.

Absorption in upcoming quarters is expected to gradually chip away at the nation’s elevated overall vacancy rate, which is forecasted to fall to 8.1% by year-end and below 7.9% by the fourth quarter of 2026.

Quarterly net deliveries have fallen approximately 25% over the year to approximately 140,000 units in the third quarter of 2025.

Fewer apartments are projected to reach completion over the remainder of the year, with the forecast expected to fall below 75,000 units by the fourth quarter of 2025 based on a thinning construction pipeline.

Construction starts have fallen to a decade-plus low due to extended lease-up periods, higher capital costs, and stricter lending.

While overall vacancy is expected to decline, stabilized vacancy is forecasted to increase through 2027, reflecting ongoing efforts to absorb the supply overhang built up over the past two years.

While vacancies have surged in the South and Southwest due to oversupply, most Midwest and Northeast markets have seen only moderate supply increases, leading to more favorable prospects for rent growth in those regions.

In contrast, rents have fallen in markets across states in the South, Arizona, and Texas.

Among the 50 largest markets, vacancy is highest in Memphis, Austin, and San Antonio.

This variance of declining overall vacancy alongside persistently elevated stabilized vacancy suggests rent growth improvement will be gradual.

Recent lease-up activity has helped reduce vacancy among 4- and 5-Star buildings, reinforcing the recovery in this segment.

However, stabilized vacancy is projected to end the year above its starting point – in the upper 6% range – pointing to slow but stable rent growth, in line with the second quarter’s 0.5%.

In contrast to the high-end building segment, vacancies in mid and lower-quality buildings remain more limited.

wage growth running above average, there is room for rents to increase by 0.6% in 3 Star buildings and by 1.3% year-over-year in 1- and 2-Star buildings, both outpacing the overall average.

Rent growth across all quality segments is forecasted to reach the mid-1% range by mid-year 2026 as vacancies continue to tighten.

Our market areas reflected the following apartment vacancy levels as of September 2025:

apartment market’s supply-demand is ready for a rebalancing.

Net deliveries are projected to marginally exceed absorption later in 2026, resulting in vacancy leveling out across the year.

Vacancy rates decreased among quality segments, to 10.9% for 4- and 5-star buildings as absorption outpaced deliveries in this segment.

However, 3 Star buildings reported an increase in vacancy to 8.3%, compared to 6.3% for 1- and 2-Star buildings.

Absorption in upcoming quarters is expected to be offset by deliveries and lingering supply overhang from prior years.

While overall vacancy is expected to plateau in 2026, stabilized vacancy is forecast to inch upward through the second quarter of 2027, reflecting ongoing efforts to absorb the supply overhang built up over the past two years.

This separation, with stable overall vacancy alongside continually elevated stabilized vacancy, suggests rent growth improvement may be gradual, with its pace tempered by softness in stabilized communities.

Per CoStar, developers pushed supply to a 40-year high in 2024, with annual net deliveries peaking above 690,000 units in the fourth quarter of that year.

Annual supply fell by 24% by year-end 2025, to approximately 529,000 units, and is projected to decline by more than 36% in 2026 to approximately 333,000 units, the lowest level since 2014.

The effect of the slowdown is uneven across the nation.

Phoenix, Denver, and Austin are forecasting significant delivery/supply cuts.

Under-construction volumes also fell sharply in the fourth quarter of 2025, including declines of nearly 1,700 units in Phoenix, and notable reductions in Austin.

Conversely, 11 of the 50 largest markets are projected to post year-over-year increases in deliveries in 2025 when these numbers are released, with Los Angeles, Boston, Columbus, and San Diego expected to be among the markets with rising supply.

Miami and Charlotte lead nationally, with more than 8% of existing inventory under construction as of December 31, 2025, the highest ratios in the country per CoStar.

Sale transaction activity rose 31% in the first quarter of 2026 based on the trailing four-quarters.

This rebound reflects a convergence of easing credit conditions, improved liquidity, and investor expectations after three Federal Reserve rate cuts in 2025.

Private investors accounted for more than half of acquisitions in 2025, while institutional managers represented roughly one-quarter.

This mixture of buyers illustrates a market where private capital is abundant and the most likely to execute value-add and opportunistic strategies, while institutional funding remains selective, favoring cash-flowing strategies in supply constrained submarkets.

However, the level of optimism seen in 2025 may be moderating.

Our market areas reflected the following apartment vacancy levels as of March 2026:

Springfield, Missouri at 7.6%, St.

Louis at 10.6%, Kansas City at 8.7%, Minneapolis at 6.6%, Dallas-Fort Worth at 11.8%, Chicago at 4.6%, Atlanta at 11.8%, Phoenix at 12.4%, Denver at 11.6% and Charlotte, North Carolina at 12.1%.

An uncertain economic outlook dampened the office sector’s momentum through the first nine months of 2025.The national vacancy rate remained at its all-time high at 14.1% at September 30, 2025.On an encouraging note, supply growth has diminished to a historically low level.

Also, positive absorption in the third quarter of 2025 and the re-entry of institutional buyers into the market suggest that a turning point may be near.

Louis 10.5%, Kansas City 8.9%, Minneapolis at 6.6%, Dallas-Fort Worth 12.3%, Chicago 5.1%, Atlanta 11.6%, Phoenix 11.7%, Denver 11.7% and Charlotte, North Carolina 12.9%.

The office sector saw low net deliveries and a demand rebound in the second half of 2025.

However, the geographic unevenness of demand and stagnant hiring suggests that downside risks persist in 2026.

The national vacancy rate fell to 14.0% as of March 31, 2026 from a record high of 14.2% at midyear 2025.

Net absorption turned positive in each of the final two quarters of 2025, offsetting occupancy losses earlier in the year.

Given the overall improvement in performance, the forecast anticipates a continued high level of vacancy through 2026, followed by a gradual decrease, driven primarily by an ongoing supply-side adjustment.

Dallas and Houston outperformed in absorption, reflecting strong population and economic growth, while Chicago posted occupancy losses exceeding 4 million square feet.

Rent growth is expected to remain stagnant in 2026.

The demand recovery is complex and variable both across and within the country’s major cities according to CoStar.

Only about half of major metro areas have posted occupancy gains in the past 12 months, a historically unique occurrence which indicates the fragmented nature of the market.

One impediment to recovery is the stalling out of office-using job growth.

The hiring slowdown has been mitigated somewhat by a meaningful increase in office attendance.

One obstacle to recovery is the stalling out of office using job growth.

The hiring slowdown has been mitigated somewhat by a meaningful increase in office attendance in some parts of the country.

However, much return-to-office momentum seems to be driven by an increase in in-office work by “hybrid” employees.

These attendance and employment trends are now interacting with a lack of desirable new supply in many markets to bring availability meaningfully down.

The overall availability rate for space is about 80 basis points below its peak at 16.5% in early 2024.

Availability at four- and five-star buildings is down even more, with the current rate of 23.4% about 120 basis points below peak.

The slowdown in construction means that tenants looking for large blocks of space have fewer options.

CoStar reported that office asking rents have remained flat for nearly five years.

A looming lack of available space in premium new buildings and an ongoing minimal amount of sublease inventory is expected to keep office asking rent growth nominally positive for the near future.

Through the first nine months of 2025, investment activity was up by approximately 36% from the same period last year.

The acceleration was not just evident in sales volume.

The number of office deals that traded during the first nine months of 2025 were 16% above last year’s pace.

Even as fundamentals remain fluid, investors are monitoring a potential change in leasing demand.

The third quarter of 2025 posted the first positive net absorption since 2021, just as the national vacancy rate appears to be reaching its projected peak.

With approximately $6 billion in acquisitions year-to-date, institutional capital has been more active in the first nine months of 2025 than what was observed in the same period of the prior two years.

The next several quarters may prove to be a pivotal time for restoring confidence in the office market.

If current projections play out, the market could witness the convergence of peaking vacancies, steady leasing activity, a trough in rent growth, and accelerating capital flows.

At the same time, the climb in CMBS delinquency rates in recent years suggests that an office recovery may be in its early stages and require a multi-year period of incremental progress to fully regain its footing.

As of September 2025, national office vacancy rates remained stable at 14.1%, while our market areas reflected the following vacancy levels:

Slowing construction is a major factor, and one result is that there are now approximately 60 fewer Class A buildings in major markets able to accommodate requirements of 100,000 square feet than there were at the start of 2025.

CoStar reported office asking rents have risen little for approximately the past five years.

Going forward, a lack of new supply is expected to counterbalance generally average demand, allowing overall rent growth to stay nominally positive in 2026 before accelerating to a pace that exceeds inflation by 2028.

First quarter 2026 sales volume posted its strongest performance in four years with more than $13 billion in transactions.

After five years of negative net absorption, demand was positive in each of the last three quarters as new construction ground to a halt and headline vacancy ticked slightly lower.

As of March 2026, national office vacancy rates remained stable at 14.0%, while our market areas reflected the following vacancy levels:

Springfield, Missouri at 4.3%, St.

Louis at 10.1%, Kansas City at 10.8%, Minneapolis at 11.7%, Dallas-Fort Worth at 17.8%, Chicago at 16.6%, Atlanta at 16.9%, Denver at 17.7%, Phoenix at 16.3% and Charlotte, North Carolina at 14.3%.

In 2025, the U.S.

retail market has witnessed the highest level of store closures and bankruptcy filings since 2020.

Significant competition from e-commerce retailers, rising costs, restricted access to capital and multiple years of below-average closures, have all contributed to the uptick in store closures.

Bankruptcy filings are correlated to low home sales, which have weighed heavily on furniture, retail, appliance, and home improvement sales.

While store closures weigh on net demand formation, they also provide much-needed supply for those tenants looking to expand.

Market participants reported exceptionally strong demand to backfill spaces as they go dark, with some able to secure rent increases of 40% or more.

Over half of the leases signed during the first half of the year were for spaces on the market for less than ten months, while 30% of leased spaces were on the market for less than five months.

Increased competition for space has been largely driven by the limited amount of space developed across the U.S.

From 2000 to 2009, approximately 300 million square feet of retail space was delivered annually, of which nearly 40% was available for lease.Just 85 million square feet of new retail space has been delivered annually since the start of 2020, with the vast majority comprised of build-to-suit projects.

This has left minimal second-generation space for tenants looking to expand.Per CoStar, most tenants and brokerage reps continue to report substantial competition for quality available space, resulting in availabilities backfilling at the fastest pace in nearly 15 years.

During the third quarter of 2025, national retail vacancy rates remained steady at 4.3% while our market areas reflected the following vacancy levels:

Louis at 10.8%, Kansas City 10.0%, Minneapolis 11.7%, Dallas-Fort Worth at 17.8%, Chicago at 17.2%, Atlanta at 16.6%, Denver at 18.1%, Phoenix at 16.4% and Charlotte, North Carolina at 14.2%.

retail market reported a modest softening in the first quarter of 2026 with net absorption turning negative, reflecting a typical first quarter increase in move-outs that was augmented by several larger batch closures.

While discretionary spending has slowed and operating costs have risen, the impact on overall market health has been contained.

Strong backfill demand and limited new supply helped keep availability stable, emphasizing the sector’s ongoing supply-constrained nature.

Leasing activity remained a key point of strength in 2025 and early 2026.

Estimated leasing volume exceeded 54 million SF in the first quarter of 2026, marking the strongest pace recorded since early 2024 and reinforcing the depth of tenant demand for well-located space.

CoStar market participants reported exceptionally strong backfill demand for spaces as they became available, with landlords reporting strong interest and competitive leasing dynamics.

Leasing continues to be dominated by smaller-format, freestanding, and in-line spaces.

Spaces under 2,500 SF continue to account for a disproportionate share of transactions, reflecting ongoing demand from service-oriented and experience-driven tenants, including food service, fitness, personal care, and wellness concepts.

Value-oriented retailers and national fitness operators remain among the most active tenant groups, supporting steady leasing velocity even as broader demand formation becomes more selective.

Retailers are prioritizing fewer, higher-quality locations, reinforcing the divergence between top-performing assets and older, less competitive inventory.

Retail rent growth continued to moderate through the first quarter of 2026, with the national average asking rent rising just 2.0% year-over year.

While near term rent growth has slowed, longer term spreads remain elevated, providing landlords with meaningful rent roll-up on lease resets.

Rent performance continues to vary widely across markets.

Several Sun Belt metros, including Phoenix, Orlando, Atlanta, and Charlotte continue to post annual rent gains of 3-5%.

This is supported by population growth as well as tenant demand.

Simultaneously, multiple Midwestern markets have emerged as relative outperformers, posting above-average gains as rent growth broadens geographically.

In contrast, high-cost coastal markets, including Los Angeles and San Francisco, are flat to modestly negative year-over-year.

These high-cost coastal markets are also contending with elevated pass-through costs and slower demand formation, contributing to a performance gap.

Looking ahead, rent growth is expected to remain restrained, but stable, over the next several quarters.

However, much of this space is expected to backfill quickly given the persistent shortage of quality inventory and minimal new construction.

As a result, rent growth is forecast to remain in line with recent historical averages.

Smaller, well-located spaces and fast-growing metros are expected to continue outperforming, while assets in slower-growth markets face ongoing challenges.

During the first quarter of 2026, national retail vacancy rates remained steady at 4.4% while our market areas reflected the following vacancy levels:

Springfield, Missouri at 2.4%, St.

Louis at 4%, Kansas City at 4.6%, Minneapolis at 2.8%, Dallas-Fort Worth at 5.1%, Chicago at 4.9%, Atlanta at 4.4%, Phoenix at 4.6%, Denver at 4.5%, and Charlotte, North Carolina at 3.4%.

industrial market performance continues to favor the tenant, reporting a decade-long high vacancy rate of 7.5%.Deliveries continued to outpace net absorption in 2025 and impending supply additions should push vacancy higher, in conjunction with pressure from ongoing concerns regarding consumer spending.Industrial market weakness is directly impacted by 12-year lows in home sales, which lowered sales of furniture, building materials, and appliances, leading to large distribution center closures by tenants including Big Lots, Ashley Furniture, and Home Depot.The forecast is for weaker absorption and higher near-term vacancy reflecting a projected slowdown in U.S.

retail spending growth, which Oxford Economics expects to remain positive but slow considerably in the remainder of 2025.

industrial market may be nearing the end of a record development surge.

Quarterly net supply additions are on pace to fall below the pre-pandemic three-year average in 2025 and continue declining into 2026 when supply growth is projected to hit an 11-year low.

The gradual but persistent decline in speculative development completions has been underway for about 12 months.

While new deliveries have peaked, several Sunbelt and Midwest markets with fewer constraints on new development are still in the midst of a record supply wave that could take tenants more than two years to fully absorb.

Austin, Indianapolis, Phoenix, and San Antonio stand out as markets with risks of prolonged higher availability rates, particularly among logistics properties between 100,000 and 500,000 square feet.

Most speculative construction has consisted of projects in this size range in recent years and these properties also face competition from projects larger than 500,000 square feet that can demise their space to broaden their list of potential tenants.

Due to elevated vacancy and spaces leasing at a slower pace, year-over-year rent growth has slowed to 1.4%, its lowest rate since 2012.

Nevertheless, due to the record rent growth during the pandemic, many leases are still renewing at higher rates after being marked to market.

This is much more easily achieved in the small bay industrial market, where, thanks to minimal recent development, vacancy remains near pre-pandemic record lows of 5%.

In contrast, the stock of logistics buildings from 100,000 square feet to 500,000 square feet has grown by more than 14% over the past four years, and the vacancy rate among them stands at around 10%, hitting its highest level in over a decade.

Per CoStar, third-quarter 2025 transaction volume held steady compared to the previous quarter and the same period in 2024, suggesting a pause in momentum as investors digest the implications of the second quarter’s negative net absorption for the first time since 2010.

On the investment side, yields for stabilized, multi-tenant warehouses above $10 million bottomed in 2021 around the mid-4% range.

Since then, cap rates have expanded roughly 150 basis points and now typically hover near 6%.

Single-tenant deals, offering durable contractual income, may garner more attention from investors in the near term given the recent slowdown in leasing momentum.

Looking ahead, pricing risk remains as the market will need to see an increase in leasing momentum and sales velocity to gain confidence about the near-term outlook.

Once the current stint of uncertainty fades, capital should continue to favor industrial assets, supported by the sector’s historically strong rent growth and predictable capital expenditures compared to other property types.

For the third quarter of 2025, national industrial vacancy was 7.5%.

Our market areas reflected the following industrial vacancy levels for the third quarter of 2025:

industrial market performance continues to favor the tenant, reporting a decade-long high vacancy rate of 7.5% in March 2026.

Deliveries continued to outpace net absorption in 2025 and impending supply additions will pressure vacancy higher, in conjunction with pressure from ongoing concerns regarding consumer spending.

Assuming the economy continues to expand, although at a reduced pace, vacancy is forecast to increase through 2026, peaking below 8%, and begin declining into 2027 as deliveries moderate.

The forecast for moderate absorption and slightly higher near-term vacancy reflects a projected slowdown in U.S.

retail spending growth, which Oxford Economics expects to remain positive but slow in 2026.

Annual net absorption has slowed, measuring 123 million SF over the last 12 months;

however, it strengthened in the second half of 2025.

Tariffs present a risk to demand for logistics buildings, particularly in major West Coast port-dependent markets, as import traffic and U.S.

consumer spending could slow.

While industrial building deliveries are set to moderate further as the construction pipeline thins, supply growth will still likely outpace net absorption in upcoming quarters.

Industrial tenants remain active, but the pace of new available space listings hitting the market continues to rise, outpacing leasing and raising the U.S.

industrial availability rate, which, included under construction supply.

Availability increased in most markets across the country.

However, smaller spaces continue to lease relatively quickly.

Spaces under 50,000 SF had a median month to lease of under 5 months in 2025, compared to 6.2 months for 50,000 to 100,000-SF spaces, and over 8 months for spaces over 100,000 SF.

Rents for big-box logistics buildings have declined, while rent growth for small bay buildings remained positive.

Rent growth has slowed down from a record gain of over 10% in 2022, diminishing further in 2025 to 1.7% from a 3.5% increase at the end of 2024.

Nevertheless, due to the record rent growth achieved from 2021 through 2023, owners in many markets are still able to increase in-place rents when their tenants’ long-term leases expire.

While concessions were almost nonexistent when the market was booming during 2021 and 2022, three months of free rent are increasingly attainable on 5-to 7-year leases and property owners are increasingly offering concessions to secure large leases.

Elevated vacancy levels will likely continue to restrict landlords’ ability to raise rents on large buildings, while weak economic conditions and large rent increases recorded in recent years limit smaller tenants’ ability to absorb further sharp increases in rent.

Rent growth in 2026 will likely moderate for a third consecutive year due to elevated vacancy, even if net absorption increases gradually.

Per CoStar, there is potential for rent growth to accelerate given the limited amount of new supply underway, though downside risks to demand from trade disruption and a potential slowdown in U.S.

retail spending weigh on the forecast.

For the first quarter of 2026, national industrial vacancy was 7.5% while our market areas reflected the following industrial vacancy:

Springfield, Missouri at 1.4%, St.

Louis at 4.6%, Kansas City at 5.9%, Minneapolis at 3.8%, Dallas-Fort Worth at 9.0%, Chicago at 5.9%, Atlanta at 8.7%, Phoenix at 12.2%, Denver at 8.5% and Charlotte, North Carolina at 9.9%.

Louis at 5.3%, Kansas City at 5.7%, Minneapolis 4.3%, Dallas-Fort Worth at 8.5%, Chicago at 5.4%, Atlanta at 8.4%, Phoenix at 11.5%, Denver at 9.4% and Charlotte, North Carolina at 10.4%.

Our management will continue to monitor regional, national, and global economic indicators such as unemployment, GDP, housing starts and prices, consumer sentiment, commercial real estate price index and commercial real estate occupancy, absorption and rental rates, as these could significantly affect customers in each of our market areas.

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When interest-earning assets approximate or exceed interest-bearing liabilities, any positive interest rate spread will generate net interest income.

Great Southern’s total assets decreased $243.8 million, or 4.1%, from $5.98 billion at December 31, 2024, to $5.74 billion at September 30, 2025.

Details of the current period changes in total assets are provided below, under “Comparison of Financial Condition at September 30, 2025 and December 31, 2024.”

Net outstanding loans decreased $222.7 million from December 31, 2024, to $4.47 billion at September 30, 2025.

The decrease was primarily in construction loans, other residential (multi-family) loans, one- to four- family residential loans and commercial real estate loans.

Great Southern’s total assets increased $88.7 million, or 1.6%, from $5.60 billion at December 31, 2025, to $5.69 billion at March 31, 2026.

Details of the current period changes in total assets are provided below, under “Comparison of Financial Condition at March 31, 2026 and December 31, 2025.”

Net outstanding loans increased $99.8 million from December 31, 2025, to $4.46 billion at March 31, 2026.

The increase was primarily in construction loans and commercial real estate loans, partially offset by a decrease in other residential (multi-family) loans.

As loan demand is affected by a variety of factors, including general economic conditions, and because of the competition we face and our focus on pricing discipline and credit quality, no assurance can be given that our loan growth will match or exceed the average level of growth achieved in prior years.

The Company’s strategy continues to be focused on maintaining credit risk and interest rate risk at appropriate levels.

Over the past several years, growth has occurred in some loan types and in most of Great Southern’s primary lending locations, including Springfield, St.

Until 2025, the Company had experienced total loans receivable balances that were stable to growing over the past few years.

Total commercial real estate and commercial construction balances were fairly stable over the past five years.

One- to four-family loan totals increased in 2022 and have since decreased each year.

Recent significant growth occurred in other residential (multi-family) loans up until 2025;

however, other residential (multi-family) loan balances decreased in 2025.

In the first three months of 2026, total loans receivable balances returned to growth.

Most of Great Southern’s loans are generated in its primary lending locations, including Springfield, St.

Louis, Kansas City, Des Moines and Minneapolis, as well as our loan production offices in Atlanta, Charlotte, Chicago, Dallas, Denver, Omaha, and Phoenix.

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Generally, the Company considers commercial construction, consumer, other residential (multi-family) and commercial real estate loans to involve a higher degree of risk compared to some other types of loans, such as first mortgage loans on one- to four-family, owner-occupied residential properties.

For other residential (multi-family), commercial real estate, commercial business and construction loans, the credits are subject to an analysis of the borrower’s and guarantor’s financial condition, credit history, verification of liquid assets, collateral, market analysis and repayment ability.

history, verification of liquid assets, collateral, market analysis and repayment ability.

It has been, and continues to be, Great Southern’s practice to verify information from potential borrowers regarding assets, income or payment ability and credit ratings as applicable and as required by the authority approving the loan.

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We consider these lending practices to be consistent with or more conservative than what we believe to be the norm for banks our size.

At both September 30, 2025 and December 31, 2024, 0.2% of our owner occupied one- to four-family residential loans had loan-to-value ratios above 100% at origination.

At both September 30, 2025 and December 31, 2024, 0.4% of our non-owner occupied one- to four-family residential loans had loan-to-value ratios above 100% at origination.

At both March 31, 2026 and December 31, 2025, 0.2% of our owner occupied one- to four-family residential loans had loan-to-value ratios above 100% at origination.

At March 31, 2026 and December 31, 2025, 0.2% and 0.4% of our non-owner occupied one- to four-family residential loans had loan-to-value ratios above 100% at origination, respectively.

The level of non-performing loans and foreclosed assets affects our net interest income and net income.

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Available-for-sale Securities.

In the nine months ended September 30, 2025, available-for-sale securities decreased $2.0 million, or 0.4%, from $533.3 million at December 31, 2024, to $531.3 million at September 30, 2025 due to monthly principal payments on investment securities, partially offset by purchases of investment securities and increases in market value of the available-for-sale securities.

In the three months ended March 31, 2026, available-for-sale securities decreased $10.0 million, or 1.9%, from $523.8 million at December 31, 2025, to $513.8 million at March 31, 2026 due to monthly principal payments on investment securities and decreases in market value of the available-for-sale securities.

For further information on investment securities, see Note 5 to the accompanying financial statements contained in this Report.

Held-to-maturity Securities.

In the nine months ended September 30, 2025, held-to-maturity securities decreased $6.1 million, or 3.3%, from $187.4 million at December 31, 2024, to $181.3 million at September 30, 2025, due to principal payments on mortgage-backed securities and collateralized mortgage obligations.

In the three months ended March 31, 2026, held-to-maturity securities decreased $1.6 million, or 0.9%, from $179.2 million at December 31, 2025, to $177.6 million at March 31, 2026, due to principal payments on mortgage-backed securities and collateralized mortgage obligations.

The Company attracts deposit accounts through its retail branch network, correspondent banking and corporate services areas, internet channels and brokered deposits.

The Company then utilizes these deposit funds, along with FHLBank advances and other borrowings, to meet loan demand or otherwise fund its activities.

In the nine months ended September 30, 2025, total deposit balances decreased $77.5 million, or 1.7%.

Compared to December 31, 2024, transaction account balances increased $66.7 million, or 2.2%, to $3.12 billion at September 30, 2025, and retail certificates of deposit decreased $52.1 million, or 6.7%, to $723.7 million at September 30, 2025.

The increase in transaction accounts was primarily a result of an increase in various money market accounts.

In the three months ended March 31, 2026, total deposit balances decreased $37.6 million, or 0.8%.

Compared to December 31, 2025, transaction account balances decreased $9.1 million, or 0.3%, to $3.12 billion at March 31, 2026, and retail certificates of deposit decreased $17.0 million, or 2.5%, to $671.4 million at March 31, 2026.

The decrease in transaction accounts was primarily a result of a decrease in various money market accounts, as non-interest-bearing checking accounts increased $15.8 million.

Retail time deposits decreased due to a decrease in retail certificates generated or maintained through the banking center network.

Competition for time deposits has been, and remains, significant in many of our markets.

Brokered deposits, including IntraFi program purchased funds, were $680.0 million and $772.1 million at September 30, 2025 and December 31, 2024, respectively.

Competition for time deposits has been, and remains, significant in most of our markets.

Brokered deposits, including IntraFi program purchased funds, were $652.0 million and $663.4 million at March 31, 2026 and December 31, 2025, respectively.

The Company uses brokered deposits of select maturities from time to time to supplement its various funding channels and to manage interest rate risk.

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Our ability to fund growth in future periods may also depend on our ability to continue to access brokered deposits and FHLBank advances.

In times when our loan demand has outpaced our generation of new deposits, we have utilized brokered deposits and FHLBank advances to fund these loans.

In times when loan demand has outpaced our generation of new deposits, we have utilized brokered deposits and FHLBank advances to fund these loans.

These funding sources have been attractive to us because we can create either fixed or variable rate funding, as desired, which more closely matches the interest rate nature of much of our loan portfolio.

It also gives us greater flexibility in increasing or decreasing the duration of our funding.

While we do not currently anticipate that our ability to access these sources will be reduced or eliminated in future periods, if this should happen, the limitation on our ability to fund additional loans could have a material adverse effect on our business, financial condition and results of operations.

See “Results of Operations and Comparison for the Three and Nine Months Ended September 30 , 2025 and 2024 – Liquidity” below for further information on funding sources.

could have a material adverse effect on our business, financial condition and results of operations.

See “Results of Operations and Comparison for the Three Months Ended March 31 , 2026 and 2025 – Liquidity” below for further information on funding sources.

Securities sold under reverse repurchase agreements with customers.

Securities sold under reverse repurchase agreements with customers decreased $21.8 million from $64.4 million at December 31, 2024 to $42.6 million at September 30, 2025.

Securities sold under reverse repurchase agreements with customers decreased $11.3 million from $48.5 million at December 31, 2025 to $37.2 million at March 31, 2026.

These balances fluctuate over time based on customer demand for this product.

Short-term borrowings and other interest-bearing liabilities .

Short term borrowings and other interest-bearing liabilities decreased $88.3 million from $514.2 million at December 31, 2024 to $425.9 million at September 30, 2025, primarily due to the repayment of borrowings under the Federal Reserve Bank BTFP funding program and the Company’s utilization of brokered deposits as an alternative source of funding.

The Company may, from time to time, utilize overnight borrowings, short-term FHLBank advances, and borrowings from the Federal Reserve Bank of St.

Louis (FRBSTL), depending on relative interest rates.

The Company’s FHLBank term advances were $-0- at both September 30, 2025 and December 31, 2024.

At September 30, 2025 and December 31, 2024, there was $425.0 million and $333.0 million, respectively, in overnight borrowings from the FHLBank, which were included in short term borrowings.

In January 2024, the Bank borrowed $180.0 million under the Federal Reserve Bank’s Bank Term Funding Program (BTFP).

The borrowing, which had a fixed interest rate of 4.83% and was secured primarily by the Bank’s held-to-maturity investment securities, was repaid in full upon maturity in January 2025.

Short term borrowings and other interest-bearing liabilities increased $139.8 million from $330.9 million at December 31, 2025 to $470.7 million at March 31, 2026.

The Company’s FHLBank term advances were $-0- at both March 31, 2026 and December 31, 2025.

At March 31, 2026 and December 31, 2025, there was $470.0 million and $330.0 million, respectively, in overnight borrowings from the FHLBank, which were included in short term borrowings.

Net Interest Income and Interest Rate Risk Management.

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The current level and shape of the interest rate yield curve poses challenges for interest rate risk management.

Prior to its increase of 0.25% on December 16, 2015, the FRB had last changed interest rates on December 16, 2008.

Prior to its increase of 0.25% in December 2015, the FRB had last changed interest rates in December 2008.

This was the first rate increase since September 2006.

The FRB also implemented rate increases of 0.25% on eight additional occasions from December 14, 2016 through December 31, 2018, with the Federal Funds rate reaching as high as 2.50%.

The FRB also implemented rate increases of 0.25% on eight additional occasions beginning in December 2016 through December 2018, with the Federal Funds rate reaching as high as 2.50%.

After December 2018, the FRB paused its rate increases and, in July, September and October 2019, implemented rate decreases of 0.25% on each of those occasions.

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At December 31, 2024, the Federal Funds rate was 4.50%.

In 2025, the FRB implemented a rate decrease of 0.25% in September, which brought the Federal Funds rate to 4.25% at September 30, 2025, and another rate decrease of 0.25% in October.

Great Southern’s loan portfolio includes loans ($1.54 billion at September 30, 2025) tied to various SOFR indexes that will be subject to adjustment at least once within 90 days after September 30, 2025.

All of these loans have interest rate floors at various rates.

Great Southern also has a portfolio of loans ($666.4 million at September 30, 2025) tied to a “prime rate” of interest that will adjust immediately or within 90 days of a change to the “prime rate” of interest.

All of these loans had interest rate floors at various rates.

In addition, Great Southern has a portfolio of loans ($10.6 million at September 30, 2025) tied to an AMERIBOR index that will adjust immediately or within 90 days of a change to the rate of interest on this index.

All of these loans had interest rate floors at various rates.

At September 30, 2025, nearly all of these SOFR, “prime rate” and AMERIBOR loans had fully-indexed rates that were at or above their floor rate and so are expected to move fully with future market interest rate increases, and most are expected to move fully with future market interest rate decreases as many of these loans have floor rates well below their current index rate.

A rate cut by the FRB generally would be expected to have an immediate negative impact on the Company’s interest income on loans due to the large total balance of loans tied to the SOFR indexes or the “prime rate” index and will be subject to adjustment at least once within 90 days or loans which generally adjust immediately as the Federal Funds rate adjusts.

In 2025, the FRB implemented a rate decrease of 0.25% in each of September, October, and December 2025, respectively.

At December 31, 2025, the Federal Funds rate was 3.75%.

During the first three months of 2026, there were no changes to the Federal Funds rate.

The Federal Funds rate remained at 3.75% at March 31, 2026.

Financial markets currently expect the possibility of further decreases in Federal Funds interest rates in 2026 to be mixed, if any, with financial markets now pricing in zero to one potential cut of only 0.25% for the remainder of 2026.

Great Southern’s loan portfolio includes loans ($1.71 billion at March 31, 2026) tied to various SOFR indexes that will be subject to adjustment at least once within 90 days after March 31, 2026.

Nearly all of these loans have interest rate floors at various rates.

Great Southern also has a portfolio of loans ($601.8 million at March 31, 2026) tied to a “prime rate” of interest that will adjust immediately or within 90 days of a change to the “prime rate” of interest.

Nearly all of these loans had interest rate floors at various rates.

At March 31, 2026, nearly all of these SOFR, and “prime rate” loans had fully-indexed rates that were at or above their floor rate and in most cases well above the floor rate.

A rate cut by the FRB generally would be expected to have an immediate negative impact on the Company’s interest income on loans due to the large total balance of loans tied to the SOFR indexes or the “prime rate” index that will be subject to adjustment at least once within 90 days or loans which generally adjust immediately as the Federal Funds rate adjusts.

Interest rate floors may at least partially mitigate the negative impact of interest rate decreases.

Loans at their floor rates are, however, subject to the risk that borrowers will seek to refinance elsewhere at the lower market rate.

This negative impact may partially be offset by the Company’s ability to lower its funding costs in response to an FRB rate cut.

However, the Company may be unable to significantly lower its funding costs due to a highly competitive rate environment for deposits.

Conversely, market interest rate increases would normally result in increased interest rates on our SOFR-based, prime rate-based and AMERIBOR-based loans.

As of September 30 , 2025, Great Southern’s interest rate risk models indicate that, generally, rising interest rates are expected to have a modestly positive impact on the Company’s net interest income, while declining interest rates are expected to have a mostly neutral impact on net interest income.

There may also be a negative impact on the Company’s net interest income if the Company is unable to significantly lower its funding costs due to a highly competitive rate environment for deposits, although interest rates on assets may decline further.

Conversely, market interest rate increases would normally result in increased interest rates on our SOFR-based and prime-based loans.

As of March 31 , 2026, Great Southern’s interest rate risk models indicate that, generally, rising interest rates are expected to have a modestly positive impact on the Company’s net interest income, while declining interest rates are expected to have a mostly neutral impact on net interest income.

Any negative impact of a falling Federal Funds rate and other market interest rates also falling could be more pronounced if we are not able to decrease non-maturity deposit rates accordingly.

We model various interest rate scenarios for rising and falling rates, including both parallel and non-parallel shifts in rates.

The results of our modeling indicate that net interest income is not likely to be significantly affected either positively or negatively in the first twelve months following relatively minor changes in interest rates because our portfolios are relatively well matched in a twelve-month horizon.

The results of our modeling indicate that net interest

income is not likely to be significantly affected either positively or negatively in the first twelve months following relatively minor changes in interest rates because our portfolios are relatively well matched in a twelve-month horizon.

In a situation where market interest rates increase significantly in a short period of time, our net interest margin increase may be more pronounced in the very near term (first one to three months), due to fairly rapid increases in SOFR interest rates and “prime” interest rates.

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This has been especially true since early March 2023.

Deposit and other funding costs moderated a bit in late 2024 as the FRB cut the federal funds rate, but competition for deposits remains significant in 2025.

Deposit and other funding costs moderated a bit in late 2024 as the FRB cut the federal funds rate.

Deposit and other funding costs further moderated in late 2025 as the FRB cut the federal funds rate three times, but competition for deposits remained significant into the first three months of 2026.

For further discussion of the processes used to manage our exposure to interest rate risk, see “Item 3.

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Operating expenses consist primarily of salaries and employee benefits, occupancy-related expenses, expenses related to foreclosed assets, postage, FDIC deposit insurance, advertising and public relations, telephone, professional fees, office expenses and other general operating expenses.

Details of the current period changes in non-interest income and non-interest expense are provided below, under “Results of Operations and Comparison for the Three and Nine Months Ended September 30 , 2025 and 2024.”

Details of the current period changes in non-interest income and non-interest expense are provided below, under “Results of Operations and Comparison for the Three Months Ended March 31 , 2026 and 2025.”

Effect of Federal Laws and Regulations

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In particular, the capital requirements and operations of regulated banking organizations such as the Company and the Bank have been and will be subject to changes in applicable statutes and regulations from time to time, which changes could, under certain circumstances, adversely affect the Company or the Bank.

Dodd-Frank Act.

In 2010, sweeping financial regulatory reform legislation entitled the “Dodd-Frank Wall Street Reform and Consumer Protection Act” (the “Dodd-Frank Act”) was signed into law.

The Dodd-Frank Act implemented far-reaching changes across the financial regulatory landscape.

Certain aspects of the Dodd-Frank Act have been affected by the more recently enacted Economic Growth Act, as defined and discussed below under “Economic Growth Act.”

Capital Rules.

The federal banking agencies have adopted regulatory capital rules that substantially amend the risk-based capital rules applicable to the Bank and the Company.

The rules implement the “Basel III” regulatory capital reforms and changes required by the Dodd-Frank Act.

“Basel III” refers to various documents released by the Basel Committee on Banking Supervision.

For the Company and the Bank, the general effective date of the rules was January 1, 2015, and, for certain provisions, various phase-in periods and later effective dates apply.

The chief features of these rules are summarized below.

The rules refine the definitions of what constitutes regulatory capital and add a new regulatory capital element, common equity Tier 1 capital.

The minimum capital ratios are (i) a common equity Tier 1 (“CET1”) risk-based capital ratio of 4.5%;

(ii) a Tier 1 risk-based capital ratio of 6%;

(iii) a total risk-based capital ratio of 8%;

and (iv) a Tier 1 leverage ratio of 4%.

In addition to the minimum capital ratios, the rules include a capital conservation buffer, under which a banking organization must have CET1 more than 2.5% above each of its minimum risk-based capital ratios in order to avoid restrictions on paying dividends, repurchasing shares, and paying certain discretionary bonuses.

The capital conservation buffer became fully implemented on January 1, 2019.

These rules also revised the prompt corrective action framework, which is designed to place restrictions on insured depository institutions if their capital levels show signs of weakness.

Under the revised prompt corrective action requirements, insured depository institutions are required to meet the following in order to qualify as “well capitalized:” (i) a common equity Tier 1 risk-based capital ratio of at least 6.5%, (ii) a Tier 1 risk-based capital ratio of at least 8%, (iii) a total risk-based capital ratio of at least 10% and (iv) a Tier 1 leverage ratio of 5%, and must not be subject to an order, agreement or directive mandating a specific capital level.

Economic Growth Act.

In May 2018, the Economic Growth, Regulatory Relief, and Consumer Protection Act (the “Economic Growth Act”), was enacted to modify or eliminate certain financial reform rules and regulations, including some implemented under the Dodd-Frank Act.

While the Economic Growth Act maintains most of the regulatory structure established by the Dodd-Frank Act, it amends certain aspects of the regulatory framework for small depository institutions with assets of less than $10 billion and for large banks with assets of more than $50 billion.

Many of these amendments could result in meaningful regulatory changes.

The Economic Growth Act, among other matters, expands the definition of qualified mortgages which may be held by a financial institution and simplifies the regulatory capital rules for financial institutions and their holding companies with total consolidated assets of less than $10 billion by instructing the federal banking regulators to establish a single “Community Bank Leverage Ratio” (“CBLR”) of between 8 and 10 percent.

Upon election, any qualifying depository institution or its holding company that exceeds the CBLR will be considered to have met generally applicable leverage and risk-based regulatory capital requirements and any qualifying depository institution that exceeds the CBLR will be considered “well-capitalized” under the prompt corrective action rules.

Currently, the CBLR is 9.0%.

To date, the Company and the Bank have chosen to not utilize the CBLR due to the Company’s size and complexity, including its commercial real estate and construction lending concentrations and significant off-balance sheet funding commitments.

In addition, the Economic Growth Act includes regulatory relief in the areas of examination cycles, call reports, mortgage disclosures and risk weights for certain high-risk commercial real estate loans.

One Big Beautiful Bill Act .

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S.

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

We are currently assessing its expected impact on our consolidated financial statements.

For additional information, see “Item 1.

Business—Government Supervision and Regulation” in our Annual Report on Form 10-K for the year ended December 31, 2025.

Business Initiatives

Technology initiatives and advancements continue with the Company’s current core provider.Projects to improve customer-facing online services and deliver a full overhaul of the Company’s treasury management services platform have moved, or are soon scheduled to move, to the trial phase, while foundational projects focused on fostering system efforts and innovations have launched.

Construction of the Company’s new banking center at 723 N.

Benton in Springfield, Mo., is complete, with a grand opening held in late October 2025.

The new facility, designed as a next-generation banking center to replace a facility previously existing at that location, features customer-centered designs, tools and technology, and will allow the Company to test new processes and innovations.

The location is one of 12 banking centers the Company operates in Springfield, in addition to a drive-thru Express Center.

The Company maintains its focus on technology initiatives and advancements with its current core provider.

These investments in both foundational projects and a heightened customer experience continue to foster an organizational emphasis on innovation and forward progress.

The Company’s banking centers and loan production offices are continually reviewed to measure performance and ensure responsiveness to changing customer needs and preferences.

As such, the Company may open banking centers and loan production offices and invest resources where customer demand leads, and from time to time, consolidate offices or even exit markets when conditions dictate.

The Company transitioned its banking center located at 4700 Mid Rivers Mall Dr.

in Cottleville, Mo., to its second drive-thru Express Center location in April 2026.

This is the Company’s first Express Center in the St.

Louis, Mo., area.

In addition to the Cottleville location, the Company operates 17 other locations in the St.

Louis metro region.

Headquartered in Springfield, Missouri, Great Southern offers a broad range of banking services to customers.

The Company operates 89 retail banking centers in Missouri, Iowa, Kansas, Minnesota, Arkansas and Nebraska and commercial lending offices in Atlanta, Charlotte, Chicago, Dallas, Denver, Omaha, and Phoenix.

The Company operates 87 retail banking centers in Missouri, Iowa, Kansas, Minnesota, Arkansas and Nebraska and commercial lending offices in Atlanta,

Charlotte, Chicago, Dallas, Denver, Omaha, and Phoenix.

The common stock of Great Southern Bancorp, Inc.

is listed on the Nasdaq Global Select Market under the symbol “GSBC.”

Comparison of Financial Condition at September 30, 2025 and December 31, 2024

During the nine months ended September 30, 2025, the Company’s total assets decreased by $243.8 million to $5.74 billion.

The decrease was primarily due to a decrease in net loans.

Cash and cash equivalents were $196.2 million at September 30, 2025, an increase of $479,000, or 0.2%, from $195.8 million at December 31, 2024.

Comparison of Financial Condition at March 31, 2026 and December 31, 2025

During the three months ended March 31, 2026, the Company’s total assets increased by $88.7 million to $5.69 billion.

The increase was primarily due to an increase in net loans.

Cash and cash equivalents were $187.4 million at March 31, 2026, a decrease of $2.2 million, or 1.1%, from $189.6 million at December 31, 2025.

The Company’s available-for-sale securities decreased $10.0 million, or 1.9%, compared to December 31, 2025.

This decrease is related to monthly principal payments on investment securities, partially offset by purchases of investment securities and increases in market value of the available-for-sale securities.

The available-for-sale securities portfolio was 9.3% of total assets at September 30, 2025 and 8.9% of total assets at December 31, 2024.

This decrease is related to monthly principal payments on investment securities and decreases in market value of the available-for-sale securities.

The available-for-sale securities portfolio was 9.0% of total assets at March 31, 2026 and 9.4% of total assets at December 31, 2025.

The Company’s held-to-maturity securities decreased $1.6 million, or 0.9%, compared to December 31, 2025.

This decrease was primarily due to normal monthly payments received related to the portfolio of mortgage-backed securities and collateralized mortgage obligations.

The held-to-maturity securities portfolio was 3.2% of total assets at September 30, 2025 and 3.1% of total assets at December 31, 2024.

Net loans decreased $222.7 million from December 31, 2024, to $4.47 billion at September 30, 2025.

This decrease was primarily in construction loans ($122.7 million decrease), other residential (multi-family) loans ($63.7 million decrease), one- to four-family residential loans ($36.6 million decrease) and commercial real estate loans ($12.8 million decrease).

The decrease in construction loans primarily related to the completion of projects, with the loans then being paid off or retained by the Bank and moved to other loan categories.

This decrease was primarily due to monthly payments received related to the portfolio of mortgage-backed securities and collateralized mortgage obligations.

The held-to-maturity securities portfolio was 3.1% of total assets at March 31, 2026 and 3.2% of total assets at December 31, 2025.

Net loans increased $99.8 million from December 31, 2025, to $4.46 billion at March 31, 2026.

This increase was primarily in construction loans ($83.0 million increase) and commercial real estate loans ($27.0 million increase), partially offset by a decrease in other residential (multi-family) loans ($18.1 million decrease).

The increase in construction loans primarily related to draws to fund work in progress on existing multi-family and commercial real estate projects.

The decrease in other residential (multi-family) loans was primarily related to a few large loan payoffs in 2026.

The pipeline of the unfunded portion of loans and formal loan commitments remained strong at September 30, 2025, with the largest portion of these unfunded balances represented by the unfunded portion of outstanding construction loans ($582.4 million).

Total liabilities decreased $277.1 million from December 31, 2024, to $5.10 billion at September 30, 2025.

This decrease was primarily due to the repayment of the BTFP borrowings in January 2025, the repayment of subordinated notes in June 2025, and a decrease in the balance of time deposits, partially offset by an increase in transaction account deposits.

Total deposits decreased $77.5 million, or 1.7%, from $4.61 billion at December 31, 2024 to $4.53 billion at September 30, 2025.

Transaction account balances increased $66.7 million, from $3.06 billion at December 31, 2024 to $3.12 billion at September 30, 2025.

Total interest-bearing checking accounts and non-interest-bearing checking accounts increased $54.3 million and $12.4 million, respectively.

Retail certificates of deposit decreased $52.1 million compared to December 31, 2024, to $723.7 million at September 30, 2025, due to competition for these types of deposits.

Brokered deposits decreased $92.1 million to $680.0 million at September 30, 2025, compared to $772.1 million at December 31, 2024.

Brokered deposits were utilized to offset reductions in other deposit categories and to repay BTFP borrowings.

The pipeline of the unfunded portion of loans and formal loan commitments remained strong at March 31, 2026, with the largest portion of these unfunded balances represented by the unfunded portion of outstanding construction loans ($529.2 million).

Total liabilities increased $91.2 million from December 31, 2025, to $5.05 billion at March 31, 2026.

This increase was primarily due to an increase in overnight borrowings from the Federal Home Loan Bank, partially offset by a decrease in the balance of time deposits and transaction account deposits.

Total deposits decreased $37.6 million, or 0.8%, from $4.48 billion at December 31, 2025 to $4.45 billion at March 31, 2026.

Transaction account balances decreased $9.1 million, from $3.13 billion at December 31, 2025 to $3.12 billion at March 31, 2026.

Total interest-bearing checking accounts decreased $25.0 million and total non-interest-bearing checking accounts increased $15.8 million.

Retail certificates of deposit decreased $17.0 million compared to December 31, 2025, to $671.4 million at March 31, 2026, due to increased competition for these types of deposits.

Brokered deposits decreased $11.4 million to $652.0 million at March 31, 2026, compared to $663.4 million at December 31, 2025.

The Company elected to utilize FHLBank borrowings as interest rates on new brokered deposits increased because of a high level of competition for those funds.

The Company has the capacity to further expand its use of brokered deposits if it chooses to do so.

Of the total brokered deposits at September 30, 2025, $300.0 million were floating rate deposits, which adjust daily, based on the effective federal funds rate index.

The Company also utilized brokered deposits with maturities within six months as part of its interest rate risk management strategies.

The Company’s term FHLBank advances were $-0- at both September 30, 2025 and December 31, 2024.

At September 30, 2025 and December 31, 2024, there were no borrowings from the FHLBank, other than overnight borrowings, which are included in the short-term borrowings category.

Of the total brokered deposits at March 31, 2026, $300.0 million were floating rate deposits, which adjust daily, based on the effective federal funds rate index.

The Company has also utilized brokered deposits with maturities within six months as part of its interest rate risk management strategies.

The Company’s term FHLBank advances were $-0- at both March 31, 2026 and December 31, 2025.

At March 31, 2026 and December 31, 2025, there were no borrowings from the FHLBank, other than overnight borrowings, which are included in the short-term borrowings category.

The Company may utilize both overnight borrowings and short-term FHLBank advances depending on relative interest rates.

Short-term borrowings and other interest-bearing liabilities decreased $88.3 million from $514.2 million at December 31, 2024 to $425.9 million at September 30, 2025.

At September 30, 2025, $425.0 million of this total was in overnight borrowings from the FHLBank, which were used to purchase investment securities and to offset decreases in time deposits and brokered deposits, compared to $333.0 million of overnight borrowings from the FHLBank at December 31, 2024.

At September 30, 2025 and December 31, 2024, there was $-0- and $180.0 million, respectively, in BTFP borrowings.

The BTFP borrowing, which had a fixed interest rate of 4.83%, was repaid in full upon maturity in January 2025.

Securities sold under reverse repurchase agreements with customers decreased $21.8 million, or 33.8%, from $64.4 million at December 31, 2024 to $42.6 million at September 30, 2025.

Short-term borrowings and other interest-bearing liabilities increased $139.8 million from $330.9 million at December 31, 2025 to $470.7 million at March 31, 2026.

At March 31, 2026, $470.0 million of this total represented overnight borrowings from the FHLBank, which were used to fund loans and to offset decreases in time deposits and brokered deposits, compared to $330.0 million of overnight borrowings from the FHLBank at December 31, 2025.

Securities sold under reverse repurchase agreements with customers decreased $11.3 million, or 23.3%, from $48.5 million at December 31, 2025 to $37.2 million at March 31, 2026.

These balances fluctuate over time based on customer demand for this product.

Total stockholders’ equity increased $33.3 million, or 5.6%, from $599.6 million at December 31, 2024 to $632.9 million at September 30, 2025.

Stockholders’ equity increased due to net income of $54.7 million for the nine months ended September 30, 2025 and rose by $4.2 million due to stock option exercises during the period.

Additionally, accumulated other comprehensive loss (a reduction in equity) decreased $18.5 million during the nine months ended September 30, 2025 (thereby increasing total stockholders’ equity), primarily due to increases in the fair value of available-for-sale investment securities and the fair value of cash flow hedges, as a result of decreased market interest rates.

Partially offsetting these changes were repurchases of the Company’s common stock totaling $30.0 million and dividends declared on common stock of $14.0 million.

Comparison of Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024

Net income was $17.8 million for the three months ended September 30, 2025 compared to $16.5 million for the three months ended September 30, 2024.

This increase of $1.3 million, or 7.7%, was primarily due to an increase in net interest income of $2.8 million, or 5.8%, a decrease in provisions for credit losses on loans and unfunded commitments of $1.5 million, or 133.3%, and an increase in non-interest income of $70,000, or 1.0%, partially offset by an increase in non-interest expense of $2.4 million, or 7.1%, and an increase in income tax expense of $723,000, or 20.0%.

Net income was $54.7 million for the nine months ended September 30, 2025 compared to $46.9 million for the nine months ended September 30, 2024.

This increase of $7.8 million, or 16.7%, was primarily due to an increase in net interest income of $11.5 million, or 8.2%, and decreases in provisions for credit losses on loans and unfunded commitments of $2.0 million, or 172.2%, partially offset by an increase in income tax expense of $2.5 million, or 23.3%, an increase in non-interest expense of $1.4 million, or 1.3%, and a decrease in non-interest income of $1.8 million, or 7.5%.

Total stockholders’ equity decreased $2.5 million, or 0.4%, from $636.1 million at December 31, 2025 to $633.6 million at March 31, 2026.

Stockholders’ equity decreased due to repurchases of the Company’s common stock totaling $16.9 million and dividends declared on common stock of $4.7 million.

Additionally, accumulated other comprehensive loss (a reduction in equity) increased $2.9 million during the three months ended March 31, 2026 (thereby decreasing total stockholders’ equity), primarily due to decreases in the fair value of available-for-sale investment securities and the fair value of cash flow hedges, as a result of increased market interest rates.

Partially offsetting these changes were net income of $17.5 million for the three months ended March 31, 2026 and a $4.6 million increase in stockholders’ equity due to stock option exercises during the period.

Comparison of Results of Operations for the Three Months Ended March 31, 2026 and 2025

Net income was $17.5 million for the three months ended March 31, 2026 compared to $17.2 million for the three months ended March 31, 2025.

This increase of $316,000, or 1.8%, was primarily due to an increase in negative provision for credit losses on unfunded commitments of $583,000, or 167.5%, an increase in non-interest income of $439,000, or 6.7%, a decrease in income tax expense of $270,000, or 6.3%, and a decrease in non-interest expense of $30,000, or 0.1%, partially offset by a decrease in net interest income of $1.0 million, or 2.0%.

Total Interest Income

Total interest income decreased $4.7 million, or 5.6%, during the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

The decrease was due to a $4.4 million, or 5.8%, decrease in interest income on loans and a $320,000, or 4.3%, decrease in interest income on investment securities and other interest-earning assets.

Interest income from loans decreased during the three months ended September 30, 2025 compared to the same period in 2024 due to lower average balances and average rates of interest.

Interest income from investment securities and other interest-earning assets decreased during the three months ended September 30, 2025 compared to the same period in 2024 primarily due to lower average balances.

Total interest income decreased $1.8 million, or 0.8%, during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

The decrease was due to a $2.9 million, or 1.3%, decrease in interest income on loans, partially offset by a $1.1 million, or 5.2%, increase in interest income on investment securities and other interest-earning assets.

Interest income from loans decreased during the nine months ended September 30, 2025 compared to the same period in 2024 primarily due to lower average rates of interest.

Interest income from investment securities increased during the nine months ended September 30, 2025 compared to the same period in 2024 due to both higher average rates of interest and higher average balances.

Interest income from other interest-earning assets decreased during the nine months ended September 30, 2025 compared to the same period in 2024 primarily due to lower average rates of interest.

Total interest income decreased $9.1 million, or 11.3%, during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

The decrease was due to an $8.4 million, or 11.5%, decrease in interest income on loans and a $667,000, or 9.3%, decrease in interest income on investment securities and other interest-earning assets.

Interest income from loans, investment securities and other interest-earning assets decreased during the three months ended March 31, 2026 compared to the same period in 2025 due to lower average balances and average rates of interest.

Interest Income – Loans

During the three months ended September 30, 2025 compared to the three months ended September 30, 2024, interest income on loans decreased $4.4 million.

Of the $4.4 million decrease in interest income on loans, $2.5 million was due to a decrease in average yield on loans, from 6.44% during the three months ended September 30, 2024 to 6.21% during the three months ended September 30, 2025.

This decrease was primarily due to a reduction in the federal funds rate in the latter portion of 2024.

The remaining decrease in interest income on loans of $1.9 million was due to lower average loan balances, which fell from $4.72 billion during the three months ended September 30, 2024, to $4.60 billion during the three months ended September 30, 2025.

Since the end of 2022, loan originations and net loan growth have been muted;

however, some loan growth has come as a result of the funding of previously approved but unfunded balances on construction loans.

Loan payoffs increased in the second and third quarters of 2025.

During the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, interest income on loans decreased $2.9 million.

Interest income on loans decreased $3.0 million due to a decrease in average interest rates on loans from 6.31% during the nine months ended September 30, 2024, to 6.23% during the nine months ended September 30, 2025.

Partially offsetting that decrease, interest income on loans increased $101,000 due to higher average loan balances, which grew from $4.69 billion during the nine months ended September 30, 2024, to $4.70 billion during the nine months ended September 30, 2025.

In October 2018, the Company entered into an interest rate swap transaction which was terminated in March 2020.

During the three months ended March 31, 2026 compared to the three months ended March 31, 2025, interest income on loans decreased $8.4 million.

Of the $8.4 million decrease in interest income on loans, $4.2 million was due to a decrease in average yield on loans, from 6.23% during the three months ended March 31, 2025 to 5.86% during the three months ended March 31, 2026.

This decrease was primarily because of a reduction in the federal funds rate in the latter portion of 2025.

The remaining decrease in interest income on loans of $4.2 million was due to lower average loan balances, which fell from $4.76 billion during the three months ended March 31, 2025, to $4.47 billion during the three months ended March 31, 2026.

In 2025, loan originations were somewhat muted, and net loan payoffs were significantly higher, resulting in a much lower average balance of loans receivable since the three months ended March 31, 2025.

In 2026, some loan growth has resumed as a result of the funding of previously approved but unfunded balances on construction loans, new loan originations, and much lower net loan payoffs compared to the average loan payoff in 2025.

In October 2018, the Company entered into an interest rate swap transaction, which was terminated early, at the Company’s election, in March 2020.

Upon termination, the Company received $45.9 million, inclusive of accrued but unpaid interest, from its swap counterparty.

The net amount, after deducting accrued interest and deferred income taxes, was accreted to interest income on loans monthly until the originally scheduled termination date of October 6, 2025.

After this date, the Company no longer has the benefit of that income from the terminated swap.

The Company recorded interest income related to the interest rate swap of $2.0 million in each of the three months ended September 30, 2025 and 2024.

The Company recorded interest income related to the interest rate swap of $6.1 million in each of the nine months ended September 30, 2025 and 2024, respectively.

In March 2022, the Company entered into another interest rate swap transaction as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans.

The notional amount of the swap was $300 million, with a contractual termination date of March 1, 2024.

Under the terms of the swap, the Company received a fixed rate of interest of 1.6725% and paid a floating rate of interest equal to one-month USD-LIBOR (or the equivalent replacement USD-SOFR rate once the USD-LIBOR rate ceased to be available).

The floating rate was reset monthly and net settlements of interest due to/from the counterparty also occurred monthly.

To the extent that the fixed rate exceeded one-month USD-LIBOR/SOFR, the Company received net interest settlements, which were recorded as loan interest income.

If one-month USD-LIBOR/SOFR exceeded the fixed rate of interest, the Company paid net settlements to the counterparty and recorded those net payments as a reduction of interest income on loans.

The Company recorded a reduction of loan interest income related to this swap transaction of $1.9 million in the nine months ended September 30, 2024.

Since reaching its contractual termination date on March 1, 2024, there has been no further interest income impact related to this swap.

The net amount, after deducting accrued interest and deferred income taxes, was accreted to interest income on loans monthly until the originally scheduled termination date of October 6, 2025, at which point these accretions ceased.

There was no further interest income impact related to this swap after that date.

The Company recorded interest income related to the interest rate swap of $2.0 million in the three months ended March 31, 2025.

In July 2022, the Company entered into two additional interest rate swap transactions as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans.

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If the floating rate of interest exceeds the fixed rate of interest, the Company pays net settlements to the counterparty and records those net payments as a reduction of interest income on loans.

The Company recorded a reduction of loan interest income related to these swap transactions of $1.8 million and $2.7 million in the three months ended September 30, 2025 and 2024, respectively.

The Company recorded a reduction of loan interest income related to these swap transactions of $5.3 million and $8.3 million in the nine months ended September 30, 2025 and 2024, respectively.

At September 30, 2025, the USD-Prime rate was 7.25% and the one-month USD-SOFR OIS rate was 4.30757%.

The Company recorded a reduction of loan interest income related to these swap transactions of $1.0 million and $1.7 million in the three months ended March 31, 2026 and 2025, respectively.

At March 31, 2026, the USD-Prime rate was 6.75% and the one-month USD-SOFR OIS rate was 3.65221%.

If market interest rates remain near or above their current levels, the Company’s interest rate swaps will continue to have a negative impact on net interest income.

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Interest Income – Investments and Other Interest-earning Assets

Interest income on investments decreased $11,000 in the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

Average balances decreased from $758.8 million during the three months ended September 30, 2024, to $722.9 million during the three months ended September 30, 2025, reducing interest income by $216,000.

Interest income on investments decreased $342,000 in the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

Average balances decreased from $738.1 million during the three months ended March 31, 2025, to $722.9 million during the three months ended March 31, 2026, reducing interest income by $124,000.

Average balances of securities decreased primarily due to normal monthly payments received related to the portfolio of U.S.

Government agency mortgage-backed securities and collateralized mortgage obligations.

Interest income on investments increased $205,000 as a result of higher average interest rates, from 3.19% during the three months ended September 30, 2024, to 3.34% during the three months ended September 30, 2025.

Securities purchased in 2024 and 2025 had higher interest rates than the average rates for the portfolio.

Interest income on investments increased $1.8 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Interest income on investments increased $1.3 million as a result of higher average interest rates, from 3.10% during the nine months ended September 30, 2024, to 3.35% during the nine months ended September 30, 2025.

Average balances increased from $708.4 million during the nine months ended September 30, 2024, to $729.4 million during the nine months ended September 30, 2025, increasing interest income by $493,000.

Average balances of securities increased primarily due to investment securities purchases in 2024 and 2025, partially offset by normal monthly payments received related to the portfolio of U.S.

Government agency mortgage-backed securities and collateralized mortgage obligations.

Interest income on other interest-earning assets decreased $309,000 in the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Average interest rates decreased from 5.27% during the three months ended September 30, 2024, to 4.14% during the three months ended September 30, 2025, reducing interest income by $263,000.

The decline in the average interest rate was directly attributable to the decrease in the federal funds rate in the latter portion of 2024 and during the three months ended September 30, 2025.

Interest income decreased $46,000 as a result of a decrease in average balances from $96.6 million during the three months ended September 30, 2024, to $93.0 million during the three months ended September 30, 2025.

Interest income on other interest-earning assets decreased $753,000 in the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Average interest rates fell from 5.26% during the nine months ended September 30, 2024, to 4.23% during the nine months ended September 30, 2025, resulting in a decrease of $766,000 in interest income.

Partially offsetting this decrease, interest income increased $13,000 as a result of an increase in average balances, from $98.2 million during the nine months ended September 30, 2024, to $98.5 million during the nine months ended September 30, 2025.

Interest income on investments decreased $218,000 as a result of lower average interest rates, from 3.34% during the three months ended March 31, 2025, to 3.22% during the three months ended March 31, 2026.

The decrease in the average rate was due to decreases in market interest rates compared to the prior year period.

Interest income on other interest-earning assets decreased $325,000 in the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

Average interest rates decreased from 4.23% during the three months ended March 31, 2025, to 3.50% during the three months ended March 31, 2026, reducing interest income by $173,000.

The decline in the average interest rate was directly attributable to the decrease in the federal funds rate in the latter portion of 2025.

Interest income decreased $152,000 as a result of a decrease in average balances from $105.3 million during the three months ended March 31, 2025, to $89.5 million during the three months ended March 31, 2026, due mainly to the Company’s maintaining modestly lower average balances in its account at the Federal Reserve Bank.

Total Interest Expense

Total interest expense decreased $7.5 million, or 21.0%, during the three months ended September 30, 2025, when compared with the three months ended September 30, 2024.

Interest expense on deposits decreased $4.5 million, or 15.8%, interest expense on short-term borrowings decreased $1.8 million, or 32.9%, interest expense on subordinated notes decreased $1.1 million, or 100.0%, interest expense on securities sold under reverse repurchase agreements decreased $88,000, or 22.9%, and interest expense on subordinated debentures issued to capital trusts decreased $49,000, or 10.7%.

Total interest expense decreased $13.3 million, or 13.0%, during the nine months ended September 30, 2025, when compared with the nine months ended September 30, 2024.

Interest expense on deposits decreased $11.0 million, or 13.1%, interest expense on subordinated notes decreased $1.3 million, or 39.3%, interest expense on short-term borrowings decreased $763,000, or 6.0%, interest expense on subordinated debentures issued to capital trusts decreased $186,000, or 13.6%, and interest expense on securities sold under reverse repurchase agreements decreased $72,000, or 6.5%.

Total interest expense decreased $8.1 million, or 26.1%, during the three months ended March 31, 2026, when compared with the three months ended March 31, 2025.

Interest expense on deposits decreased $6.3 million, or 25.5%, interest expense on short-term borrowings decreased $388,000, or 8.7%, interest expense on securities sold under reverse repurchase agreements decreased $275,000, or 74.1%, and interest expense on subordinated debentures issued to capital trusts decreased $40,000, or 10.5%.

In addition, interest expense on subordinated notes decreased $1.1 million, or 100.0%, as the notes were fully redeemed in June 2025.

Interest Expense – Deposits

Interest expense on demand and savings deposits decreased $1.7 million during the three months ended September 30, 2025, when compared to the three months ended September 30, 2024.

Average rates of interest decreased from 1.80% in the three months ended September 30, 2024 to 1.46% in the three months ended September 30, 2025, resulting in a $1.9 million decrease in interest expense.

Interest rates paid on demand deposits were lower in the 2025 period due to the Company strategically lowering rates throughout the second half of 2024 and all of 2025, as market rates decreased.

Partially offsetting this decrease, the average balances of demand and savings deposits increased from $2.21 billion in the three months ended September 30, 2024 to $2.26 billion in the three months ended September 30, 2025, resulting in an increase in interest expense on demand and savings deposits of $215,000.

Interest expense on demand and savings deposits decreased $5.4 million during the nine months ended September 30, 2025 when compared to the nine months ended September 30, 2024.

The average rates of interest decreased from 1.76% in the nine months ended September 30, 2024 to 1.43% in the nine months ended September 30, 2025, resulting in a $5.6 million decrease in interest expense.

Partially offsetting this decrease, the average balances of demand and savings deposits increased from $2.22 billion in the nine months ended September 30, 2024, to $2.24 billion in the nine months ended September 30, 2025, resulting in an increase of $161,000 in interest expense.

Interest expense on time deposits decreased $2.4 million during the three months ended September 30, 2025 when compared to the three months ended September 30, 2024.

The average balances of time deposits decreased from $856.4 million during the three months ended September 30, 2024 to $746.5 million in the three months ended September 30, 2025, resulting in a decrease in interest expense of $1.0 million.

The average rates of interest on time deposits decreased from 4.02% in the three months ended September 30, 2024, to 3.34% in the three months ended September 30, 2025, resulting in a decrease in interest expense of $1.3 million.

Interest expense on demand and savings deposits decreased $1.1 million during the three months ended March 31, 2026, when compared to the three months ended March 31, 2025.

Average rates of interest decreased from 1.42% in the three months ended March 31, 2025 to 1.21% in the three months ended March 31, 2026, resulting in a $1.2 million decrease in interest expense.

Interest rates paid on demand deposits were lower in the 2026 period due to the Company strategically lowering rates throughout the second half of 2025, as market rates decreased.

Partially offsetting this decrease, the average balance of demand and savings deposits increased from $2.22 billion in the three months ended March 31, 2025 to $2.25 billion in the three months ended March 31, 2026, resulting in an increase in interest expense on demand and savings deposits of $105,000.

Interest expense on time deposits decreased $1.6 million during the three months ended March 31, 2026 when compared to the three months ended March 31, 2025.

The average rates of interest on time deposits decreased from 3.53% in the three months ended March 31, 2025, to 3.01% in the three months ended March 31, 2026, resulting in a decrease in interest expense of $929,000.

The average balances of time deposits decreased from $772.1 million during the three months ended March 31, 2025 to $687.2 million in the three months ended March 31, 2026, resulting in a decrease in interest expense of $691,000.

A large portion of the Company’s certificate of deposit portfolio matures within six months and therefore reprices fairly quickly;

this is consistent with the portfolio term over the past several years.

Market interest rates decreased in the second half of 2024 and into 2025 as the FOMC reduced the federal funds rate.

Competition for time deposits remains significant in our market areas, and upon maturity, a portion of these deposits may be redeemed by customers.

Interest expense on time deposits decreased $7.4 million during the nine months ended September 30, 2025 when compared to the nine months ended September 30, 2024.

The average balances of time deposits decreased from $896.1 million during the nine months ended September 30, 2024 to $758.6 million in the nine months ended September 30, 2025, resulting in a decrease in interest expense of $3.8 million during the period.

Interest expense on time deposits decreased $3.5 million as a result of a decrease in average rates of interest from 4.01% in the nine months ended September 30, 2024, to 3.44% in the nine months ended September 30, 2025.

As noted above, a large portion of the Company’s certificate of deposit portfolio matures within six months and therefore reprices fairly quickly.

Older certificates of deposit that renewed or were replaced with new deposits generally resulted in the Company paying a lower rate of interest compared to the year-ago period.

Interest expense on brokered deposits decreased $406,000 during the three months ended September 30, 2025 when compared to the three months ended September 30, 2024.

Interest expense on brokered deposits decreased $1.9 million due to average rates of interest that decreased from 5.23% in the three months ended September 30, 2024 to 4.51% in the three months ended September 30, 2025.

Brokered deposits added in the second half of 2024 and throughout 2025 were at lower market rates than brokered deposits previously issued.

Interest expense on brokered deposits decreased $3.6 million during the three months ended March 31, 2026 when compared to the three months ended March 31, 2025.

The average balance of brokered deposits decreased from $892.6 million during the three months ended March 31, 2025 to $681.0 million during the three months ended March 31, 2026, resulting in a decrease in interest expense of $2.2 million during the period.

The Company elected to utilize FHLBank borrowings as interest rates on new brokered deposits increased because of a high level of competition for those funds.

Interest expense on brokered deposits decreased $1.4 million due to average rates of interest that decreased from 4.58% in the three months ended March 31, 2025 to 3.88% in the three months ended March 31, 2026.

The Company uses brokered deposits of select maturities and interest rate structures from time to time to supplement its various funding channels and to manage interest rate risk.

A portion of the Company’s brokered deposits are floating rate, and the rate resets with changes to the effective federal funds rate.

Partially offsetting this decrease, the average balance of brokered deposits increased from $745.4 million during the three months ended September 30, 2024 to $826.0 million during the three months ended September 30, 2025, resulting in an increase in interest expense of $1.5 million during the period.

Interest expense on brokered deposits increased $1.8 million during the nine months ended September 30, 2025 when compared to the nine months ended September 30, 2024.

Interest expense on brokered deposits increased $4.3 million due to an increase in average balances from $706.0 million during the nine months ended September 30, 2024 to $871.1 million during the nine months ended September 30, 2025.

Partially offsetting this increase, interest expense on brokered deposits decreased $2.5 million due to average rates of interest that decreased from 5.24% in the nine months ended September 30, 2024 to 4.53% in the nine months ended September 30, 2025.

As noted above, brokered deposits added during 2024 and 2025 were at lower market rates than brokered deposits previously issued.

Interest Expense – FHLBank Advances;

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Subordinated Debentures Issued to Capital Trusts and Subordinated Notes

FHLBank term advances were not utilized during the three or nine months ended September 30, 2025 and 2024.

Interest expense on reverse repurchase agreements decreased $88,000 during the three months ended September 30, 2025 when compared to the three months ended September 30, 2024.

The average balance of repurchase agreements decreased from $76.6 million in the three months ended September 30, 2024 to $56.8 million in the three months ended September 30, 2025, due to fluctuations in customers’ desire for this product, resulting in a decrease in interest expense of $103,000 during the period.

Interest expense on reverse repurchase agreements increased $15,000 due to higher average interest rates during the three months ended September 30, 2025 when compared to the three months ended September 30, 2024.

The average rate of interest was 2.00% for the three months ended September 30, 2024 compared to 2.08% for the three months ended September 30, 2025, due to changes in the mix of customer balances in these products.

Interest expense on reverse repurchase agreements decreased $72,000 during the nine months ended September 30, 2025 when compared to the nine months ended September 30, 2024.

The average balance of repurchase agreements decreased from $76.0 million in the nine months ended September 30, 2024 to $68.2 million in the nine months ended September 30, 2025, due to fluctuations in customers’ desire for this product, resulting in a decrease in interest expense of $422,000.

Interest expense on reverse repurchase agreements increased $350,000 due to higher average interest rates during the nine months ended September 30, 2025 when compared to the nine months ended September 30, 2024.

The average rate of interest was 1.95% for the nine months ended September 30, 2024 compared to 2.04% for the nine months ended September 30, 2025, due to changes in the mix of customer balances in these products.

Interest expense on short-term borrowings (including overnight borrowings from the FHLBank and BTFP borrowings from FRBSTL) and other interest-bearing liabilities decreased $1.8 million during the three months ended September 30, 2025 when compared to the three months ended September 30, 2024.

Interest expense on short-term borrowings (including overnight borrowings from the FHLBank and BTFP borrowings from FRBSTL) and other interest-bearing liabilities decreased $1.1 million due to lower average balances during the three months ended September 30, 2025 when compared to the three months ended September 30, 2024.

The average balance of short-term borrowings and other interest-bearing liabilities decreased from $408.7 million in the three months ended September 30, 2024 to $315.4 million in the three months ended September 30, 2025.

The Company chose to utilize more brokered deposits versus short-term borrowings in the 2025 period.

The average rate of interest on short-term borrowings and other interest-bearing liabilities decreased from 5.24% for the three months ended September 30, 2024 to 4.55% for the three months ended September 30, 2025, resulting in a decrease in interest expense of $649,000 during the period.

Interest rates on borrowings decreased after the federal funds rate was cut by 100 basis points from September to December 2024 and 25 basis points in September 2025.

Interest expense on short-term borrowings (including overnight borrowings from the FHLBank and BTFP borrowings from FRBSTL) and other interest-bearing liabilities decreased $763,000 during the nine months ended September 30, 2025 when compared to the nine months ended September 30, 2024.

Interest expense on short-term borrowings and other interest-bearing liabilities decreased $1.7 million due to lower average rates of interest during the nine months ended September 30, 2025 when compared to the nine months ended September 30, 2024.

The average rate of interest was 5.18% for the nine months ended September 30, 2024, compared to 4.58% for the nine months ended September 30, 2025.

The average balance of short-term borrowings and other interest-bearing liabilities increased from $330.2 million in the nine months ended September 30, 2024 to $351.5 million in the nine months ended September 30, 2025, resulting in an increase in interest expense of $963,000 during the period.

During the three months ended September 30, 2025, compared to the three months ended September 30, 2024, interest expense on subordinated debentures issued to capital trusts decreased $49,000 due to lower average interest rates.

The average interest rate was 7.04% in the three months ended September 30, 2024, compared to 6.26% in the three months ended September 30, 2025.

The subordinated debentures are variable-rate debentures, which bear interest at an average rate of three-month SOFR (originally LIBOR), plus 1.60%, adjusted quarterly, which was 6.16% at September 30, 2025.

FHLBank term advances were not utilized during the three months ended March 31, 2026 and 2025.

FHLBank overnight borrowings were utilized in the three months ended March 31, 2026 and 2025 and are included in short-term borrowings.

Interest expense on reverse repurchase agreements decreased $275,000 during the three months ended March 31, 2026 when compared to the three months ended March 31, 2025.

The average balance of repurchase agreements decreased from $82.4 million in the three months ended March 31, 2025 to $38.2 million in the three months ended March 31, 2026, due to fluctuations in customers’ desire for this product, resulting in a decrease in interest expense of $151,000 during the period.

Interest expense on reverse repurchase agreements decreased $124,000 due to lower average interest rates during the three months ended March 31, 2026 when compared to the three months ended March 31, 2025.

The average rate of interest was 1.83% for the three months ended March 31, 2025 compared to 1.02% for the three months ended March 31, 2026, due to changes in the mix of customer balances in these products and overall reductions in market interest rates.

Interest expense on short-term borrowings (including overnight borrowings from the FHLBank) and other interest-bearing liabilities decreased $388,000 during the three months ended March 31, 2026 when compared to the three months ended March 31, 2025.

Interest expense on short-term borrowings (including overnight borrowings from the FHLBank) and other interest-bearing liabilities decreased $726,000 due to lower average rates of interest.

The average rate of interest on short-term borrowings and other interest-bearing liabilities decreased from 4.60% for the three months ended March 31, 2025 to 3.93% for the three months ended March 31, 2026.

Interest rates on borrowings decreased after the federal funds rate was cut by 75 basis points from September to December 2025.

Partially offsetting this decrease, interest expense on short-term borrowings (including overnight borrowings from the FHLBank) and other interest-bearing liabilities increased $338,000 due to higher average balances during the three months ended March 31, 2026 when compared to the three months ended March 31, 2025.

The average balance of short-term borrowings and other interest-bearing liabilities increased from $392.6 million in the three months ended March 31, 2025 to $419.2 million in the three months ended March 31, 2026.

The Company chose to utilize more short-term borrowings versus brokered deposits in the 2026 period.

During the three months ended March 31, 2026, compared to the three months ended March 31, 2025, interest expense on subordinated debentures issued to capital trusts decreased $40,000 due to lower average interest rates.

The average interest rate was 6.01% in the three months ended March 31, 2025, compared to 5.38% in the three months ended March 31, 2026.

The subordinated debentures are variable-rate debentures bearing interest at a rate of three-month SOFR (originally LIBOR), plus 1.60%, adjusted quarterly, which was 5.53% at March 31, 2026.

There was no change in the average balance of the subordinated debentures between the 2025 and 2026 three-month periods.

During the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, interest expense on subordinated debentures issued to capital trusts decreased $186,000 due to lower average interest rates.

The average interest rate was 7.07% in the nine months ended September 30, 2024 compared to 6.11% in the nine months ended September 30, 2025.

The subordinated debentures are variable-rate debentures, as stated above.

There was no change in the average balance of the subordinated debentures between the 2024 and 2025 nine-month periods.

In June 2020, the Company issued $75.0 million of 5.50% fixed-to-floating rate subordinated notes due June 15, 2030.

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On June 15, 2025, the Company redeemed all $75.0 million aggregate principal amount of these subordinated notes.

Interest expense on subordinated notes decreased $1.1 million and $1.3 million, respectively, when compared to the prior-year three- and nine-month periods, due to the redemption of the subordinated notes.

Interest expense on subordinated notes decreased $1.1 million, when compared to the prior-year three-month periods, due to the redemption of the subordinated notes.

Net Interest Income

Net interest income for the three months ended September 30, 2025 increased $2.8 million to $50.8 million, compared to $48.0 million for the three months ended September 30, 2024.

Net interest margin was 3.72% in the three months ended September 30, 2025, compared to 3.42% in the three months ended September 30, 2024, an increase of 30 basis points, or 8.8%.

The Company experienced decreases in all interest income and interest expense categories, with the total decreases in interest expense outpacing the declines in interest income, primarily due to decreases in market interest rates.

Net interest income for the nine months ended September 30, 2025 increased $11.5 million to $151.1 million, compared to $139.6 million for the nine months ended September 30, 2024.

Net interest margin was 3.66% in the nine months ended September 30, 2025, compared to 3.39% in the nine months ended September 30, 2024, an increase of 27 basis points, or 8.0%.

The Company experienced an increase in interest income on investment securities and a decrease in interest income on loans.

In the nine-month period, the Company experienced decreases in all interest expense categories, with the total decreases in interest expense outpacing the declines in interest income, primarily due to decreases in market interest rates.

The Company’s overall average interest rate spread increased 39 basis points, or 14.2%, from 2.74% during the three months ended September 30, 2024 to 3.13% during the three months ended September 30, 2025, due to a 58 basis point decrease in the weighted average rate paid on interest-bearing liabilities, partially offset by a 19 basis point decrease in the weighted average yield earned on interest-earning assets.

In comparing the two periods, the yield on loans decreased 23 basis points, the yield on investment securities increased 15 basis points and the yield on other interest-earning assets decreased 113 basis points.

The rate paid on deposits decreased 49 basis points, the rate paid on reverse repurchase agreements increased 8 basis points, the rate paid on short-term borrowings and other interest-bearing liabilities decreased 69 basis points and the rate paid on subordinated debentures issued to capital trust decreased 78 basis points.

Net interest income for the three months ended March 31, 2026 decreased $1.0 million to $48.3 million, compared to $49.3 million for the three months ended March 31, 2025.

Net interest margin was 3.71% in the three months ended March 31, 2026, compared to 3.57% in the three months ended March 31, 2025, an increase of 14 basis points, or 3.9%.

The Company experienced decreases in all interest income and interest expense categories, with the decreases in interest income outpacing the declines in interest expense, primarily due to decreases in market interest rates.

Interest income also decreased $2.0 million due to the terminated interest rate swap income, which impacted interest income positively in the 2025 period but did not impact the 2026 period.

The Company’s overall average interest rate spread increased 20 basis points, or 6.7%, from 3.00% during the three months ended March 31, 2025 to 3.20% during the three months ended March 31, 2026, due to a 55 basis point decrease in the weighted average rate paid on interest-bearing liabilities, partially offset by a 35 basis point decrease in the weighted average yield earned on interest-earning assets.

In comparing the two periods, the yield on loans decreased 37 basis points, the yield on investment securities decreased 12 basis points and the yield on other interest-earning assets decreased 73 basis points.

The rate paid on deposits decreased 52 basis points, the rate paid on reverse repurchase agreements decreased 81 basis points, the rate paid on short-term borrowings and other interest-bearing liabilities decreased 67 basis points and the rate paid on subordinated debentures issued to capital trust decreased 63

basis points.

Average interest rates earned on loans and paid on deposits are affected by the mix of the loan and deposit portfolios, the duration of loans and time deposits, the amount of fixed-rate and variable-rate loans and other repricing characteristics.

In 2023, overall competition for deposits intensified as a few banks experienced significant liquidity issues in March and April 2023 and market rates moved higher more rapidly.

Overall competition for deposits remained elevated in 2024 and market interest rates were higher in 2024, until the federal funds rate was reduced in late 2024.

This resulted in lower market interest rates into 2025.

The federal funds rate was further reduced by 0.25% in September 2025 and by 0.25% in October 2025.

The Company’s overall average interest rate spread increased 36 basis points, or 13.2%, from 2.72% during the nine months ended September 30, 2024 to 3.08% during the nine months ended September 30, 2025.

The increase was due to a 42 basis point decrease in the weighted average rate paid on interest-bearing liabilities, partially offset by a six basis point decrease in the weighted average yield earned on interest-earning assets.

In comparing the two periods, the yield on loans decreased 8 basis points, the yield on investment securities increased 25 basis points and the yield on other interest-earning assets decreased 103 basis points.

The rate paid on deposits decreased 41 basis points, the rate paid on reverse repurchase agreements increased 9 basis points, the rate paid on short-term borrowings and other interest-bearing liabilities decreased 60 basis points and the rate paid on subordinated debentures issued to capital trust decreased 96 basis points.

For additional information on net interest income components, refer to the “Average Balances, Interest Rates and Yields” tables in this Quarterly Report on Form 10-Q.

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Management determines which loans are non-homogeneous or collateral-dependent, evaluates risk of loss and makes additional provisions to expense, if necessary, to maintain the allowance at a satisfactory level.

During the three months ended September 30, 2025, the Company did not record a provision expense on its portfolio of outstanding loans, compared to a provision expense of $1.2 million recorded during the three months ended September 30, 2024 on its portfolio of outstanding loans.During the nine months ended September 30, 2025, the Company did not record a provision expense on its portfolio of outstanding loans, compared to a provision expense of $1.7 million during the nine months ended September 30, 2024 on its portfolio of outstanding loans.

Net charge-offs were $66,000 for the three months ended September 30, 2025, compared to net charge-offs of $1.5 million in the three months ended September 30, 2024.

Net charge-offs were $11,000 for the nine months ended September 30, 2025, compared to net charge-offs of $1.5 million in the nine months ended September 30, 2024.

The provision for losses on unfunded commitments for the three months ended September 30, 2025 was a negative provision of $379,000, compared to a negative provision of $63,000 for the three months ended September 30, 2024.

The provision for losses on unfunded commitments for the nine months ended September 30, 2025 was a negative provision of $837,000, compared to a negative provision of $540,000 for the nine months ended September 30, 2024.

During the three months ended March 31, 2026 and 2025, the Company did not record a provision expense on its portfolio of outstanding loans.

Net recoveries were $13,000 for the three months ended March 31, 2026, compared to net charge-offs of $56,000 in the three months ended March 31, 2025.

The provision for losses on unfunded commitments for the three months ended March 31, 2026 was a negative provision of $931,000, compared to a negative provision of $348,000 for the three months ended March 31, 2025.

General market conditions and unique circumstances related to specific industries and individual projects contribute to the determination of the levels of provisions and charge-offs in each period.

The Bank’s allowance for credit losses as a percentage of total loans was 1.43% and 1.36% at September 30, 2025 and December 31, 2024, respectively.

Management considers the allowance for credit losses adequate to cover losses inherent in the Bank’s loan portfolio at September 30, 2025, based on recent reviews of the Bank’s loan portfolio and current economic conditions.

However, if challenging economic conditions persist or worsen, or if management’s assessment of the loan portfolio changes, additional provisions for credit loss may be required, which could adversely impact the Company’s future results of operations and financial condition.

The Bank’s allowance for credit losses as a percentage of total loans was 1.43% and 1.46% at March 31, 2026 and December 31, 2025, respectively.

Management considers the allowance for credit losses adequate to cover losses inherent in the Bank’s loan portfolio at March 31, 2026, based on recent reviews of the Bank’s loan portfolio and current economic conditions.

If challenging economic conditions were to last longer than anticipated or deteriorate further or management’s assessment of the loan portfolio were to change, additional credit loss provisions could be required, thereby adversely affecting the Company’s future results of operations and financial condition.

Non-performing Assets

As a result of changes in loan portfolio composition, changes in economic and market conditions and other factors specific to a borrower’s circumstances, the level of non-performing assets will fluctuate.

At September 30, 2025, non-performing assets were $7.8 million, a decrease of $1.8 million from $9.6 million at December 31, 2024.

Non-performing assets as a percentage of total assets were 0.14% and 0.16% at September 30, 2025 and December 31, 2024, respectively.

Compared to December 31, 2024, non-performing loans decreased $1.8 million, to $1.7 million at September 30, 2025.

Compared to December 31, 2024, foreclosed assets increased $90,000 to $6.1 million at September 30, 2025.

At March 31, 2026, non-performing assets were $10.1 million, an increase of $2.0 million from $8.1 million at December 31, 2025.

Non-performing assets as a percentage of total assets were 0.18% and 0.15% at March 31, 2026 and December 31, 2025, respectively.

Compared to December 31, 2025, non-performing loans increased $1.4 million, to $3.5 million at March 31, 2026.

Compared to December 31, 2025, foreclosed assets increased $579,000 to $6.6 million at March 31, 2026.

Non-performing Loans .

Activity in the non-performing loans category during the nine months ended September 30, 2025 was as follows:

Activity in the non-performing loans category during the three months ended March 31, 2026 was as follows:

Repossessions

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Total non-performing loans

At September 30, 2025, the non-performing one- to four-family residential category included six loans, two of which were added in the nine months ended September 30, 2025.

The largest relationship in the category totaled $614,000, or 36.0% of the category at September 30, 2025.

This relationship was added to non-performing loans in 2024 and is collateralized by a single-family residential property in the Sarasota, Florida area.

During the nine months ended September 30, 2025, non-performing one- to four-family residential loans experienced four loan pay-offs totaling $1.4 million.

Additionally, the only loan in the non-performing land development category at the beginning of the period paid off.

The non-performing consumer category included four loans at September 30, 2025.

At March 31, 2026, the non-performing one- to four-family residential category included five loans, one of which was added in the three months ended March 31, 2026.

The largest relationship in the one- to four-family residential category totaled $386,000, or 54.9% of the category, at March 31, 2026.

This relationship was added to non-performing loans in 2024 and is collateralized by a single-family residential property in southern Iowa.

During the three months ended March 31, 2026, non-performing one- to four-family residential loans experienced a loan pay-off of $821,000 and one relationship totaling $643,000 was transferred to foreclosed assets.

At March 31, 2026, the non-performing other residential (multi-family) category consisted of one loan, which was added during the three months ended March 31, 2026, and is collateralized by an apartment building in eastern Iowa.

Scheduled monthly payments have not been made recently, causing the loan to become delinquent.

The guarantor is involved in legal issues, not related to the subject property, that are causing stress on the financial condition of the guarantor.

Subsequent to March 31, 2026, the Company acquired this apartment property through a deed in lieu of foreclosure.

The Company expects that an updated valuation of the asset will be completed soon.

The non-performing consumer category included three loans at March 31, 2026.

Potential Problem Loans.

Potential problem loans decreased $5.7 million, to $1.4 million at September 30, 2025 from $7.1 million at December 31, 2024.

Potential problem loans decreased $152,000, to $1.2 million at March 31, 2026 from $1.4 million at December 31, 2025.

Potential problem loans are loans which management has identified through routine internal review procedures as having possible credit problems that may cause the borrowers difficulty in complying with the current repayment terms.

These loans are not reflected in non-performing assets.

Activity in the potential problem loans category during the nine months ended September 30, 2025 was as follows:

Activity in the potential problem loans category during the three months ended March 31, 2026 was as follows:

Repossessions

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Total potential problem loans

At September 30, 2025, the one- to four-family residential category of potential problem loans included 13 loans, six of which were added to potential problem loans in the nine months ended September 30, 2025.

At March 31, 2026, the one- to four-family residential category of potential problem loans included 12 loans, two of which were added to potential problem loans in the three months ended March 31, 2026.

The largest relationship in this category totaled $259,000, or 27.5% of the total category.

During the nine months ended September 30, 2025, one loan relationship in the one- to four-family category ($963,000), which was reclassified from the consumer category earlier in 2025, was upgraded from the substandard category to non-classified, removing it from the potential problem loan list.

This relationship is collateralized by multiple single-family residential properties in Indiana and Florida.

During the nine months ended September 30, 2025, one loan relationship in the commercial real estate ($4.3 million) and consumer ($784,000) categories was upgraded from the substandard category to the special mention category, removing it from the potential problem loan list.

This relationship is collateralized by three nursing care facilities located in southwest Missouri.

The consumer category of potential problem loans included 14 loans, seven of which were added during the nine months ended September 30, 2025.

The consumer category of potential problem loans included 16 loans, four of which were added during the three months ended March 31, 2026.

Other Real Estate Owned and Repossessions.

All of the $6.1 million of other real estate owned and repossessions at September 30, 2025 were acquired through foreclosure.

Activity in foreclosed assets and repossessions during the nine months ended September 30, 2025 was as follows:

All of the $6.6 million of other real estate owned and repossessions at March 31, 2026 were acquired through foreclosure.

Activity in foreclosed assets and repossessions during the three months ended March 31, 2026 was as follows:

(In Thousands)

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Total foreclosed assets and repossessions

At September 30, 2025, the commercial real estate category of foreclosed assets consisted of two foreclosed properties, the largest of which, totaling $6.0 million, was an office building located in Clayton, Missouri.

This asset was foreclosed upon in the fourth quarter of 2024.

At March 31, 2026, the commercial real estate category of foreclosed assets consisted of one foreclosed property totaling $6.0 million, which is an office building located in Clayton, Missouri and was foreclosed upon in the fourth quarter of 2024.

Recently, a portion of the building was vacated by tenants whose leases expired, and the Bank initiated an independent appraisal to determine the current condition value and an estimated value upon completion of proposed significant improvements.

Such improvements are expected to cost approximately $3 million and take several months to complete.

The majority of this expenditure represents the addition of fire suppression sprinklers throughout the building and other significant improvements.

Based on the independent valuation (which utilized sales and current market rents in the area for similarly improved buildings), Bank management does not currently anticipate any loss on this asset and decided to move forward with implementing these improvements.

Costs for these improvements are expected to be capitalized over the remainder of 2026 and will increase the carrying value of this foreclosed asset, with approximately $800,000 of expenditures expected to be incurred during the second quarter of 2026.

At March 31, 2026, the one- to four-family residential category, totaling $643,000, consisted of one relationship that was transferred from non-performing loans in the three months ended March 31, 2026.

This asset consisted of a condominium in the Sarasota, Fla.

The borrower was no longer in compliance with their loan agreement and, ultimately, the property was placed into foreclosure.

Subsequent to March 31, 2026, the Bank entered into a contract to sell the property at a sales price that will result in no material loss to the Bank.

The additions and sales in the consumer category were due to the volume of repossessions of automobiles, which generally are subject to a shorter repossession process.

Loans Classified “Watch” and “Special Mention”

Loans Categorized as “Watch” and “Special Mention”

The Company reviews the credit quality of its loan portfolio using an internal grading system that classifies loans as “Satisfactory,” “Watch,” “Special Mention,” “Substandard” and “Doubtful.” Multiple loan reviews take place on a continuous basis by credit risk and lending management.

Reviews are focused on financial performance, occupancy trends, delinquency status, covenant compliance, collateral support, economic considerations and various other factors.

See Note 6 for further discussion of the Company’s loan grading system.

Loans classified as “Watch” are being monitored due to indications of potential weaknesses or deficiencies that may require future reclassification as special mention or substandard.

Loans classified as “Watch” increased $9.5 million, from $15.9 million at December 31, 2024 to $25.4 million at September 30, 2025, primarily due to the addition of one loan totaling $10.5 million that is secured by a nursing care facility located in southwest Florida.

The loan was downgraded due to the borrower’s financial performance and delinquent taxes (which have since been paid).

While loans classified as “Special Mention” are not adversely classified, they are deserving of management’s close attention to ensure repayment prospects and that the credit positions of the assets do not deteriorate and expose the institution to elevated risk, which might warrant adverse classification at a future date.

In the nine months ended September 30, 2025, loans classified as “Special Mention” increased $3.7 million, to $5.2 million, primarily due to one loan relationship, totaling $5.2 million, being upgraded from substandard, partially offset by the repayment in full of two loans totaling $1.4 million.

See Note 6 “Loans and Allowance for Credit Losses” in the Notes to Consolidated Financial Statements included in this report for further discussion of the Company’s loan grading system.

Loans classified as “Watch” decreased due to net payments totaling $599,000, from $20.5 million at December 31, 2025 to $19.9 million at March 31, 2026.

Of the total loans included in the “Watch” category, the largest relationship totaled $10.1 million and is collateralized by a senior residential healthcare facility in Florida.

While loans classified as “Special Mention” are not adversely classified, they are deserving of management’s close attention to ensure repayment prospects or the credit position of the assets do not deteriorate and expose the institution to elevated risk to warrant adverse classification at a future date.

In the three months ended March 31, 2026, loans classified as “Special Mention” increased $7.0 million, to $41.8 million, primarily due to the repurchase of one participated loan relationship after a significant payment was made by the borrower.

The Company now holds the entire relationship balance of $31.5 million.

This relationship is collateralized by a multi-family housing project in Denver, Colorado.

Non-interest Income

For the three months ended September 30, 2025, non-interest income increased $70,000, to $7.1 million, when compared to the three months ended September 30, 2024.

The largest individual change in the various non-interest income categories in comparing the two periods was an increase of $206,000 in commission income.

For the nine months ended September 30, 2025, non-interest income decreased $1.8 million, to $21.9 million, when compared to the nine months ended September 30, 2024, primarily as a result of the following items:

Other income :

Other income decreased $1.7 million, or 31.2%, compared to the prior-year period.

In the 2024 nine-month period, the Company recorded $2.7 million of other income, net of expenses and write-offs, related to the termination of the master agreement between the Company and a third-party software vendor for the intended conversion of the Company’s core banking platform.

Separately, in the nine months ended September 30, 2025, the Company recorded income of $1.1 million related to exits from, and other activities of, its investments in tax credit partnerships.

Net gains on loan sales :

Net gains on loan sales decreased $470,000, or 16.3%, compared to the prior-year period.

The decrease was due to a decrease in balance of fixed-rate single-family mortgage loans originated and sold during the 2025 period compared to the 2024 period.

Fixed rate single-family mortgage loans originated are generally subsequently sold in the secondary market.

Late charges and fees on loans :

Late charges and fees on loans increased $392,000 compared to the prior-year period.

This increase was primarily due to prepayment fees on a few large commercial real estate loans which paid off in the 2025 period.

For the three months ended March 31, 2026, non-interest income increased $439,000, to $7.0 million, compared to the three months ended March 31, 2025, primarily as a result of the following item:

Commissions :

Commissions income increased $353,000, or 134.7%, from the prior-year period.

The increase was due to annuity sales that were approximately 160% higher in the 2026 period compared to the 2025 period.

Some customers have recently had a preference for this product, but it is unknown if this trend will continue throughout the remainder of 2026.

Non-interest Expense

For the three months ended September 30, 2025, non-interest expense increased $2.4 million, to $36.1 million, when compared to the three months ended September 30, 2024, primarily as a result of the following items:

Net occupancy and equipment expenses :

Net occupancy and equipment expenses increased $735,000, or 9.0%, from the prior-year period.

This was mainly due to a collective increase of $637,000 in various components of computer license and support expenses related to upgrades of core systems capabilities and disaster recovery site.

Salaries and employee benefits :

Salaries and employee benefits increased $636,000, or 3.3%, from the prior-year period.

Much of this increase related to annual merit increases in various lending and operations areas.

For the three months ended March 31, 2026, non-interest expense decreased $30,000, to $34.8 million, compared to the three months ended March 31, 2025, primarily as a result of the following items:

Legal, audit and other professional fees :

Legal, audit and other professional fees increased $439,000, or 54.3%, from the prior-year period, to $1.2 million.

Of this total, legal fees increased $355,000 compared to the prior year period.

In the three months ended September 30, 2025, the Company incurred increased legal expenses related to certain corporate matters along with loan collection activities.

Expense (income) on other real estate owned :

Expenses on other real estate owned increased $394,000, or 73.5%, from the prior-year period.

In the three months ended September 30, 2024, the Company recorded gains on sales of other real estate owned totaling $452,000, with no such gains in the 2025 period.

In the three months ended September 30, 2025, the Company recorded a total of $133,000 in rental income in excess of expense from other real estate owned, compared to $76,000 in the three months ended September 30, 2024.

The increase in rental income in the 2025 period related to the $6.0 million office building that was added to other real estate owned in the fourth quarter of 2024.

For the nine months ended September 30, 2025, non-interest expense increased $1.4 million, to $105.9 million, when compared to the nine months ended September 30, 2024, primarily as a result of the following items:

Legal, audit and other professional fees decreased $348,000, or 33.5%, from the prior-year period, to $690,000.

In the three months ended March 31, 2026, the Company recovered $261,000 in previously expensed legal fees pursuant to an insurance reimbursement, related to a multi-family residential loan.

Net occupancy and equipment expenses :

Net occupancy and equipment expenses increased $2.0 million, or 8.5%, from the prior-year period.

This increase was primarily related to various components of computer license and support expenses in connection with upgrades of core systems capabilities and collectively increased by $1.3 million in the nine months ended September 30, 2025 compared to the same period in 2024.

In addition, parking lot maintenance expenses, primarily related to above-normal snow removal activity, collectively increased by $242,000 in the nine months ended September 30, 2025 compared to the same period in 2024.

Salaries and employee benefits :

Salaries and employee benefits increased $1.2 million, or 2.1%, in the nine months ended September 30, 2025 compared to the prior-year period.

Much of this increase related to annual merit increases in various lending and operations areas.

Other operating expenses :

Other operating expenses decreased $442,000, or 7.1%, from the prior-year period.

In the 2024 period, the Company recorded expenses totaling $600,000 related to the resolution of compliance matters, with no similar expenses recorded in the current-year period.

Legal, audit and other professional fees :

Legal, audit and other professional fees decreased $1.2 million, or 26.9%, from the prior-year period, to $3.2 million.

In the 2024 period, the Company expensed a total of $2.0 million related to training and implementation costs for the intended core systems conversion and professional fees to consultants engaged to support the Company’s proposed transition of core and ancillary software and information technology systems, compared to $105,000 expensed in the 2025 period.

This decrease in expense was partially offset by an increase in legal fees related to certain corporate matters along with loan collection activities.

The Company’s efficiency ratio for the three months ended September 30, 2025, was 62.45% compared to 61.34% for the same period in 2024.

The Company’s efficiency ratio for the nine months ended September 30, 2025, was 61.26% compared to 64.05% for the same period in 2024.

The Company’s ratio of non-interest expense to average assets was 2.50% and 2.40% for the three- and nine-months ended September 30, 2025, respectively, compared to 2.27% and 2.38% for the three- and nine-months ended September 30, 2024, respectively.

Average assets for the three months ended September 30, 2025, decreased $185.3 million, or 3.1%, compared to the three months ended September 30, 2024, and average assets for the nine months ended September 30, 2025, increased $32.5 million, or 0.6%, compared to the nine months ended September 30, 2024.

The decrease in average assets in the three months ended September 30, 2025, was primarily due to a net decrease in average balances of outstanding loans.

The small increase in average assets in the nine months ended September 30, 2025, was primarily due to a small increase in average balances of investment securities, along with no material change in average balances of outstanding loans.

Net occupancy and equipment expenses increased $331,000, or 3.9%, from the prior-year period.

Various components of computer license and support expenses, primarily related to upgrades of core systems capabilities and the Company’s disaster recovery site, collectively increased by $339,000 in the 2026 period compared to the 2025 period.

The Company’s efficiency ratio for the three months ended March 31, 2026, was 62.85% compared to 62.27% for the same period in 2025.

The Company’s ratio of non-interest expense to average assets was 2.47% for the three months ended March 31, 2026, compared to 2.34% for the three months ended March 31, 2025.

Average assets for the three months ended March 31, 2026, decreased $332.9 million, or 5.6%, compared to the three months ended March 31, 2025, primarily due to the decline in the average balance of net loans.

Provision for Income Taxes

For the three months ended September 30, 2025 and 2024, the Company’s effective tax rate was 19.7% and 18.0%, respectively.

For the nine months ended September 30, 2025 and 2024, the Company’s effective tax rate was 19.4% and 18.5%, respectively.

For the three months ended March 31, 2026 and 2025, the Company’s effective tax rate was 18.7% and 20.0%, respectively.

These effective rates were below the statutory federal tax rate of 21.0%, due primarily to the utilization of certain investment tax credits and the Company’s tax-exempt investments and tax-exempt loans.

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Average Balances, Interest Rates and Yields

The following tables present, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin.

The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin.

Average balances of loans receivable include the average balances of nonaccrual loans for each period.

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Interest income on loans also includes the amortization of net loan fees, which were deferred in accordance with accounting standards.

Net loan fees included in interest income were $1.0 and $1.1 million for the three months ended September 30, 2025 and 2024, respectively.

Net loan fees included in interest income were $3.1 million and $3.4 million for the nine months ended September 30, 2025 and 2024, respectively.

Net loan fees included in interest income were $879,000 and $970,000 for the three months ended March 31, 2026 and 2025, respectively.

Tax-exempt income was not calculated on a tax equivalent basis.

The tables do not reflect any effect of income taxes.

September 30,

Three Months Ended

September 30, 2025

September 30, 2024

(Dollars in Thousands)

Interest-earning assets:

Loans receivable:

One- to four-family residential

Other residential (multi-family)

Commercial real estate

Commercial business(1)

Total loans receivable

Investment securities(1)

Interest-earning deposits in other banks

Total interest-earning assets

Non-interest-earning assets:

Cash and cash equivalents

Other non-earning assets

Interest-bearing liabilities:

Interest-bearing demand and savings

Time deposits

Brokered deposits

Total deposits

Securities sold under reverse repurchase agreements

Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities

Subordinated debentures issued to capital trusts

Subordinated notes

Total interest-bearing liabilities

Non-interest-bearing liabilities:

Demand deposits

Other liabilities

Total liabilities

Stockholders’ equity

Total liabilities and stockholders’ equity

Net interest income:

Interest rate spread

Net interest margin*

Average interest-earning assets to average interest-bearing liabilities

* Defined as the Company’s net interest income divided by total average interest-earning assets.

Of the total average balances of investment securities, average tax-exempt investment securities were $51.7 million and $57.0 million for the three months ended September 30, 2025 and 2024, respectively.

In addition, average tax-exempt loans and industrial revenue bonds were $9.6 million and $10.4 million for the three months ended September 30, 2025 and 2024, respectively.

Interest income on tax-exempt assets included in this table was $544,000 and $463,000 for the three months ended September 30, 2025 and 2024, respectively.

September 30,

Nine Months Ended

September 30, 2025

September 30, 2024

March 31, 2026

March 31, 2025

(Dollars in Thousands)

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* Defined as the Company’s net interest income divided by total average interest-earning assets.

Of the total average balances of investment securities, average tax-exempt investment securities were $52.9 million and $56.9 million for the nine months ended September 30, 2025 and 2024, respectively.

In addition, average tax-exempt loans and industrial revenue bonds were $9.8 million and $10.8 million for the nine months ended September 30, 2025 and 2024, respectively.

Interest income on tax-exempt assets included in this table was $1.6 million for both the nine months ended September 30, 2025 and 2024, respectively.

Of the total average balances of investment securities, average tax-exempt investment securities were $51.7 million and $55.0 million for the three months ended March 31, 2026 and 2025, respectively.

In addition, average tax-exempt loans and industrial revenue bonds were $9.3 million and $10.0 million for the three months ended March 31, 2026 and 2025, respectively.

Interest income on tax-exempt assets included in this table was $505,000 and $547,000 for the three months ended March 31, 2026 and 2025, respectively.

Interest income net of disallowed interest expense related to tax-exempt assets was $248,000 and $458,000 for the three months ended March 31, 2026 and 2025, respectively.

Rate/Volume Analysis

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Tax-exempt income was not calculated on a tax equivalent basis.

Three Months Ended September 30,

Increase (Decrease)

(Dollars in Thousands)

Interest-earning assets:

Loans receivable

Investment securities

Interest-earning deposits in other banks

Total interest-earning assets

Interest-bearing liabilities:

Demand deposits

Time deposits

Brokered deposits

Total deposits

Securities sold under reverse repurchase agreements

Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities

Subordinated debentures issued to capital trust

Subordinated notes

Total interest-bearing liabilities

Net interest income

Nine Months Ended September 30,

Three Months Ended March 31,

Increase (Decrease)

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Liquid assets include cash, interest-bearing deposits with financial institutions and certain investment securities and loans.

As a result of the Company’s ability to generate liquidity primarily through liability funding, management believes that the Company maintains overall liquidity sufficient to satisfy its depositors’ requirements and meet its borrowers’ credit needs.

At September 30, 2025, the Company had commitments of approximately $16.9 million to fund loan originations, $1.09 billion of unused lines of credit and unadvanced loans, and $16.2 million of outstanding letters of credit.

As a result of the Company’s ability to generate liquidity primarily through liability funding, management believes that the Company maintains overall liquidity sufficient to satisfy its depositors’ withdrawals and meet its borrowers’ credit needs.

At March 31, 2026, the Company had commitments of approximately $33.2 million to fund loan originations, $1.06 billion of unused lines of credit and unadvanced loans, and $13.9 million of outstanding letters of credit.

Loan commitments and the unfunded portion of loans at the dates indicated were as follows (In Thousands):

September 30,

Closed non-construction loans with unused available lines

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The Company has from time to time chosen not to pay rates on deposits as high as the rates paid by certain of its competitors and, when believed to be appropriate, supplements deposits with less expensive alternative sources of funds.

In mid-2022, the Company steadily began increasing the interest rates it paid on many deposit products until September 2024 when the Company decreased the interest rates it paid on certain deposit products.

The Company has also utilized both fixed-rate and floating-rate brokered deposits of varying terms, as well as overnight FHLBank borrowings.

At September 30, 2025 and December 31, 2024, the Company had the following available secured lines and on-balance sheet liquidity:

September 30,

At March 31, 2026 and December 31, 2025, the Company had the following available secured lines and on-balance sheet liquidity:

Federal Home Loan Bank line

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Statements of Cash Flows.

The Company had positive cash flows from operating activities during the nine months ended September 30, 2025 and 2024.

The Company had positive cash flows from investing activities during the nine months ended September 30, 2025, and negative cash flows from investing activities during the nine months ended September 30, 2024.The Company had negative cash flows from financing activities during the nine months ended September 30, 2025, and positive cash flows from financing activities during the nine months ended September 30, 2024.

Cash flows from operating activities for the periods covered by the Statements of Cash Flows have been primarily related to changes in accrued and deferred assets, credits and other liabilities, the provision for credit losses, depreciation and amortization, realized gains on sales of loans and the amortization of deferred loan origination fees and discounts (premiums) on loans and investments, all of which are non-cash or non-operating adjustments to operating cash flows.

Net income adjusted for non-cash and non-operating items and the origination and sale of loans held for sale were the primary source of cash flows from operating activities.

Operating activities provided cash of $59.9 million and $34.3 million during the nine months ended September 30, 2025 and 2024, respectively.

During the nine months ended September 30, 2025 and 2024, investing activities provided cash of $239.6 million and used cash of $191.5 million, respectively.

Investing activities in the 2025 period provided cash primarily due to net decreases in outstanding loan balances and principal payments received on investment securities.

Investing activities in the 2024 period used cash primarily due to net increases in outstanding loan balances and purchases of investment securities.

The Company had positive cash flows from operating activities during the three months ended March 31, 2026 and 2025.

The Company had negative cash flows from investing activities during the three months ended March 31, 2026, and positive cash flows from investing activities during the three months ended March 31, 2025.

The Company had positive cash flows from financing activities during the three months ended March 31, 2026, and negative cash flows from financing activities during the three months ended March 31, 2025.

Cash flows from operating activities for the periods covered by the Statements of Cash Flows were primarily related to changes in accrued and deferred assets, credits and other liabilities, the provision for credit losses, depreciation and amortization, realized gains on sales of loans and the amortization of deferred loan origination fees and discounts (premiums) on loans and investments, all of which are non-cash or non-operating adjustments to operating cash flows.

Net income adjusted for non-cash and non-operating items and the sale of loans originated for sale were the primary sources of cash flows from operating activities.

Operating activities provided cash of $21.2 million and $15.0 million during the three months ended March 31, 2026 and 2025, respectively.

During the three months ended March 31, 2026 and 2025, investing activities used cash of $99.8 million and provided cash of $9.4 million, respectively.

Investing activities in the 2026 period used cash primarily due to net originations of loans and the purchase of Federal Home Loan Bank stock, partially offset by principal payments received on investment securities.

Investing activities in the 2025 period provided cash primarily due to principal payments received on investment securities.

Changes in cash flows from financing activities during the periods covered by the Statements of Cash Flows were due primarily to changes in deposits after interest credited and changes in short-term borrowings, as well as advances from borrowers for taxes and insurance, dividend payments to stockholders and repurchases of the Company’s common stock.

During the nine months ended September 30, 2025 and 2024, financing activities used cash of $299.0 million and provided cash of $154.3 million, respectively.

In the 2025 period, financing activities used cash primarily as a result of repayments of FRB borrowings and the redemption of all of the Company’s subordinated notes, net decreases in time deposits, repurchases of the Company’s common stock and dividends paid to stockholders, partially offset by increases in checking deposits and short-term borrowings.

In the 2024 period, financing activities provided cash primarily as a result of increases in FRB borrowings and net increases in short-term borrowings, partially offset by repurchases of the Company’s common stock, dividends paid to stockholders and net decreases in checking and time deposits.

During the three months ended March 31, 2026 and 2025, financing activities provided cash of $76.5 million and used cash of $3.0 million, respectively.

In the 2026 period, financing activities provided cash primarily as a result of net increases in short-term borrowings, partially offset by decreases in checking, time, and brokered deposits, repurchases of the Company’s common stock and dividends paid to stockholders.

2025 period, financing activities used cash primarily as a result of repayments of FRB borrowings, repurchases of the Company’s common stock and dividends paid to stockholders, partially offset by net increases in brokered deposits and checking and savings deposits and net increases in short-term borrowings.

Capital Resources

Management continuously reviews the capital position of the Company and the Bank to ensure compliance with minimum regulatory requirements, as well as to explore ways to increase capital either by retained earnings or other means.

At September 30, 2025, the Company’s total stockholders’ equity was $632.9 million, or 11.0% of total assets, equivalent to a book value of $56.18 per common share.

At March 31, 2026, the Company’s total stockholders’ equity was $633.6 million, or 11.1% of total assets, equivalent to a book value of $58.27 per common share.

As of December 31, 2025, total stockholders’ equity was $636.1 million, or 11.4% of total assets, equivalent to a book value of $57.50 per common share.

At September 30, 2025, the Company’s tangible common equity to tangible assets ratio was 10.9%, compared to 9.9% at December 31, 2024 (See Non-GAAP Financial Measures below).

Included in stockholders’ equity at September 30, 2025 and December 31, 2024, were unrealized losses (net of taxes) on the Company’s available-for-sale investment securities totaling $30.6 million and $46.1 million, respectively.

This change in net unrealized losses primarily resulted from decreased intermediate-term market interest rates in the nine months ended September 30, 2025, which generally increased the fair value of the Company’s investment securities.

In addition, included in stockholders’ equity at September 30, 2025, were realized gains (net of taxes) on the Company’s terminated cash flow hedge (interest rate swap), totaling $113,000.

This amount, plus associated deferred taxes, was accreted to interest income over the remaining term of the original interest rate swap contract, which ended on October 6, 2025.

Also included in stockholders’ equity at September 30, 2025, was an unrealized loss (net of taxes) on the Company’s two outstanding cash flow hedges (interest rate swaps) totaling $5.0 million.

Increases in market interest rates since the inception of these hedges have caused their fair values to decrease.

The unrealized loss position on these swaps improved substantially in the nine months ended September 30, 2025, due to a decline in market interest rates in that period.

As noted above, total stockholders’ equity increased $33.3 million, from $599.6 million at December 31, 2024 to $632.9 million at September 30, 2025.

Total stockholders’ equity increased due to net income of $54.7 million in the nine months ended September 30, 2025, a $4.2 million increase in stockholders’ equity during that period due to stock option exercises and a decrease in accumulated other comprehensive loss of $18.5 million during that period primarily due to increases in the fair value of cash flow hedges and available-for-sale investment securities mainly because of a decrease in market interest rates during 2025.

Partially offsetting these changes were repurchases of the Company’s common stock during the nine months ended September 30, 2025 totaling $30.0 million and dividends declared on common stock during that period of $14.0 million.

The Company had unrealized losses on its portfolio of held-to-maturity investment securities, which totaled $17.7 million and $24.7 million at September 30, 2025 and December 31, 2024 respectively, that were not included in its total capital balance.

If held-to-maturity unrealized losses were included in capital (net of taxes), at September 30, 2025 and December 31, 2024, they would have decreased total stockholder’s equity at those dates by $13.4 million and $18.6 million, respectively.

These amounts were equal to 2.1% of total stockholders’ equity of $632.9 million at September 30, 2025, compared to 3.1% of total stockholders’ equity of $599.6 million at December 31, 2024.

At March 31, 2026, the Company’s tangible common equity to tangible assets ratio was 11.0%, compared to 11.2% at December 31, 2025 (See Non-GAAP Financial Measures below).

Included in stockholders’ equity at March 31, 2026 and December 31, 2025, were unrealized losses (net of taxes) on the Company’s available-for-sale investment securities totaling $29.1 million and $27.6 million, respectively.

This change in net unrealized losses primarily resulted from increases in short-term market interest rates during the three months ended March 31, 2026, which generally decreased the fair value of the Company’s investment securities.

Also included in stockholders’ equity at March 31, 2026, was an unrealized loss (net of taxes) on the Company’s two outstanding cash flow hedges (interest rate swaps) totaling $5.6 million.

This change in net unrealized losses during the three months ended March 31, 2026, primarily resulted from increased short-term market interest rates, which generally decrease the fair value of these cash flow hedges.

As noted above, total stockholders’ equity decreased $2.5 million, from $636.1 million at December 31, 2025 to $633.6 million at March 31, 2026.

Total stockholders’ equity decreased due to repurchases of the Company’s common stock during the three months ended March 31, 2026 totaling $16.9 million and dividends declared on common stock during that period of $4.7 million.

Stockholders’ equity also decreased due to an increase in accumulated other comprehensive loss of $2.9 million primarily due to decreases in the fair value of cash flow hedges and available-for-sale investment securities mainly because of an increase in market interest rates during the 2026 period.

Partially offsetting these decreases were net income of $17.5 million in the three months ended March 31, 2026 and a $4.6 million increase in stockholders’ equity during that period due to stock option exercises.

The Company had unrealized losses on its portfolio of held-to-maturity investment securities, which totaled $17.1 million and $16.6 million at March 31, 2026 and December 31, 2025 respectively, that were not included in its total capital balance.

If held-to-maturity unrealized losses were included in capital (net of taxes), at March 31, 2026 and December 31, 2025, they would have decreased total stockholder’s equity at those dates by $12.9 million and $12.5 million, respectively.

These amounts were equal to 2.0% of total stockholders’ equity of $633.6 million at March 31, 2026 and $636.1 million at December 31, 2025.

Banks are required to maintain minimum risk-based capital ratios.

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To be considered “well capitalized,” banks must have a minimum common equity Tier 1 capital ratio of 6.50%, a minimum Tier 1 risk-based capital ratio of 8.00%, a minimum total risk-based capital ratio of 10.00%, and a minimum Tier 1 leverage ratio of 5.00%.

On September 30, 2025, the Bank’s common equity Tier 1 capital ratio was 13.4%, its Tier 1 risk-based capital ratio was 13.4%, its total risk-based capital ratio was 14.6% and its Tier 1 leverage ratio was 11.5%.

As a result, as of September 30, 2025, the Bank was well capitalized, with capital ratios in excess of those required to qualify as such.

On March 31, 2026, the Bank’s common equity Tier 1 capital ratio was 13.0%, its Tier 1 risk-based capital ratio was 13.0%, its total risk-based capital ratio was 14.2% and its Tier 1 leverage ratio was 11.3%.

As a result, as of March 31, 2026, the Bank was well capitalized, with capital ratios in excess of those required to qualify as such.

On December 31, 2025, the Bank’s common equity Tier 1 capital ratio was 13.0%, its Tier 1 capital ratio was 13.0%, its total capital ratio was 14.3% and its Tier 1 leverage ratio was 11.3%.

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The FRB has established capital regulations for bank holding companies that generally parallel the capital regulations for banks.

On September 30, 2025, the Company’s common equity Tier 1 capital ratio was 13.3%, its Tier 1 capital ratio was 13.8%, its total capital ratio was 15.1% and its Tier 1 leverage ratio was 11.9%.

On March 31, 2026, the Company’s common equity Tier 1 capital ratio was 13.5%, its Tier 1 capital ratio was 14.0%, its total capital ratio was 15.2% and its Tier 1 leverage ratio was 12.2%.

On December 31, 2025, the Company’s common equity Tier 1 capital ratio was 13.6%, its Tier 1 capital ratio was 14.1%, its total capital ratio was 15.3% and its Tier 1 leverage ratio was 12.2%.

In addition to the minimum common equity Tier 1 capital ratio, Tier 1 risk-based capital ratio and total risk-based capital ratio, the Company and the Bank have to maintain a capital conservation buffer consisting of additional common equity Tier 1 capital greater than 2.5% of risk-weighted assets above the required minimum levels in order to avoid limitations on paying dividends, repurchasing shares, and paying discretionary bonuses.

At September 30, 2025 and December 31, 2024, both the Company and the Bank had a capital conservation buffer that exceeded the required minimum levels.

On June 15, 2025, the Company redeemed all of its outstanding 5.50% fixed-to-floating rate subordinated notes due June 15, 2030, with an aggregate principal balance of $75 million.

The total redemption price was 100% of the aggregate principal balance of the subordinated notes plus accrued and unpaid interest.

The Company utilized FHLB overnight borrowings to replace the funds used by the Company for the redemption payment.

The annual combined interest expense and amortization of deferred issuance costs on the subordinated notes had been approximately $4.4 million.

During the three months ended September 30, 2025, the Company declared a common stock cash dividend of $0.43 per share, or 28% of net income per diluted common share for that three-month period, and paid a common stock cash dividend of $0.40 per share (which was declared in June 2025).

During the three months ended September 30, 2024, the Company declared a common stock cash dividend of $0.40 per share, or 28% of net income per diluted common share for that three-month period, and paid a common stock cash dividend of $0.40 per share (which was declared in June 2024).

During the nine months ended September 30, 2025, the Company declared common stock cash dividends totaling $1.23 per share, or 26% of net income per diluted common share for that nine-month period, and paid common stock cash dividends totaling $1.20 per share.

During the nine months ended September 30, 2024, the Company declared common stock cash dividends totaling $1.20 per share, or 30% of net income per diluted common share for that nine-month period, and paid common stock cash dividends totaling $1.20 per share.

shares, and paying discretionary bonuses.

At March 31, 2026 and December 31, 2025, both the Company and the Bank had a capital conservation buffer that exceeded the required minimum levels.

During the three months ended March 31, 2026, the Company declared a common stock cash dividend of $0.43 per share, or 27% of net income per diluted common share for that three-month period and paid a common stock cash dividend of $0.43 per share (which was declared in December 2025).

During the three months ended March 31, 2025, the Company declared a common stock cash dividend of $0.40 per share, or 27% of net income per diluted common share for that three-month period and paid a common stock cash dividend of $0.40 per share (which was declared in December 2024).

The Board of Directors meets regularly to consider the level and timing of dividend payments.

The $0.43 per share dividend declared but unpaid as of September 30, 2025, was paid to stockholders in October 2025.

The $0.43 per share dividend declared but unpaid as of March 31, 2026, was paid to stockholders in April 2026.

Common Stock Repurchases and Issuances .

The Company has been in various buy-back programs since May 1990.

During the three months ended September 30, 2025, the Company repurchased 165,116 shares of its common stock at an average price of $60.33 per share and issued 34,520 shares of common stock at an average price of $52.29 per share to cover stock option exercises.

During the three months ended September 30, 2024, the Company repurchased 2,971 shares of its common stock at an average price of $53.04 per share and issued 101,333 shares of common stock at an average price of $50.07 per share to cover stock option exercises.

During the nine months ended September 30, 2025, the Company repurchased 514,458 shares of its common stock at an average price of $57.89 per share and issued 56,847 shares of common stock at an average price of $50.36 per share to cover stock option exercises.

During the nine months ended September 30, 2024, the Company repurchased 239,933 shares of its common stock at an average price of $51.69 per share and issued 116,471 shares of common stock at an average price of $48.39 per share to cover stock option exercises.

In April 2025, the Company’s Board of Directors approved a new stock repurchase program to purchase shares of the Company’s outstanding common stock.

The new stock repurchase program authorizes the purchase, from time to time in open market or privately negotiated transactions, of up to one million additional shares of the Company’s common stock.

During the three months ended March 31, 2026, the Company repurchased 268,664 shares of its common stock at an average price of $62.55 per share and issued 80,259 shares of common stock at an average price of $50.90 per share to cover stock option exercises.

During the three months ended March 31, 2025, the Company repurchased 173,344 shares of its common stock at an average price of $58.38 per share and issued 15,007 shares of common stock at an average price of $48.22 per share to cover stock option exercises.

In April 2025, the Company’s Board of Directors approved a new program to repurchase shares of the Company’s outstanding common stock.

The stock repurchase program authorizes the purchase, from time to time in open market or privately negotiated transactions, of up to one million additional shares of the Company’s common stock.

This program does not have an expiration date.

The authorization of this program became effective in August 2025 upon completion of the previous repurchase program (authorized in November 2022).

At September 30, 2025, approximately 929,000 shares remained available under the latest stock repurchase authorization.

Management has historically utilized stock buy-back programs from time to time as long as management believed that repurchasing the Company’s common stock would contribute to the overall growth of stockholder value.

At March 31, 2026, approximately 419,000 shares remained available under the latest stock repurchase authorization.

Management has utilized stock buy-back programs from time to time when it believed that doing so would contribute to the overall growth of stockholder value.

The number of shares that will be repurchased at any particular time and the prices that will be paid are subject to many factors, several of which are outside of the control of the Company.

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Non-GAAP Financial Measures

This document contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (“GAAP”).

This non-GAAP financial information includes the tangible common equity to tangible assets ratio.

This document contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (“GAAP”), specifically, the ratio of tangible common equity to tangible assets.

In calculating the ratio of tangible common equity to tangible assets, we subtract period-end intangible assets from common equity and from total assets.

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Ratio of Tangible Common Equity to Tangible Assets

September 30,

(Dollars in Thousands)

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis