What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-07 compared with 2026-05-07 · 549 added, 349 removed, 482 unchanged (65% of the section changed)

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

As of June 30, 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.

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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 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.

At June 30, 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.

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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.

At June 30, 2026, the amortizable intangible assets included the arena naming rights of $4.0 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.

During both the three months ended June 30, 2026 and 2025, the amortization expense of the arena naming rights was $108,000.

During both the six months ended June 30, 2026 and 2025, the amortization expense of the arena naming rights was $217,000.

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

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

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.

Management does not believe any of the Company’s goodwill or other intangible assets were impaired as of June 30, 2026.

While management believes no impairment existed as of June 30, 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:

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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.

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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 target range decreased in December 2025 to 3.50%-3.75%, which carried over to the first half 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 March 31, 2026, Core PCE, which excludes food and energy prices, rose 3.2% from one year ago;

At June 30, 2026, Core PCE, which excludes food and energy prices, rose to 3.3% from 2.6% one year ago;

the Federal Reserve’s target is 2%.

Based on Moody’s U.S.

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.

Baseline Outlook and Alternative Scenarios Analysis dated July 2026, real GDP grew in the first quarter of 2026 by 2.1% based on the third estimate from the Bureau of Economic Analysis.

The July 2026 outlook on GDP growth for 2026 and 2027 is 2.2% and 1.9%, respectively, compared to April 2026’s report of 2.3% for 2026 and 1.7% for 2027.

The national unemployment rate changed minimally to 4.2% for June 2026 compared to 4.3% for May 2026.

The number of unemployed individuals was 7.1 million as of June 2026.

Leisure and hospitality employment declined by 61,000 in June 2026, reflecting weaker than usual seasonal hiring, but employment continued to trend up in professional and business services, social assistance, and health care.

As of June 2026, the labor force participation rate (the share of working-age Americans employed or actively looking for a job) decreased by 0.3% to 61.5%.

The unemployment rate for the Midwest, where the Company conducts most of its business, decreased from March 2026 at 4.2% to June 2026 at 4.0%.

Unemployment rates for June 2026 in the states where the Company has a branch or a loan production office were as follows:

Arizona at 4.9%, Arkansas at 4.1%, Colorado at 3.9%, Georgia at 3.4%, Illinois at 5.1%, Iowa at 3.2%, Kansas at 3.8%, Minnesota at 4.4%, Missouri at 3.7%, Nebraska at 2.9%, North Carolina at 3.6%, and Texas at 4.4%.

These rates are relatively unchanged for a majority of those states compared to March 2026.

Single Family Housing

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

Existing-home sales decreased 2.4% in June 2026, compared to May 2026, to a seasonally adjusted annual rate of 4.09 million;

year-over-year existing home sales decreased 2.8%.

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.

In the Midwest, existing-home sales decreased to 3.0% in June 2026 at an annual rate of $980,000, up 2.1% from one year earlier.

The median existing-home sales price rose 1.8% from June 2025 to $432,700 in June 2026.

The median price in the Midwest in June 2026 was $346,600, up 2.7% from June 2025.

The South region reported a median price increase when compared to the prior year of 0.9% and the West region reported a median price increase when compared to the prior year of 0.9%.

Total housing inventory registered at the end of June 2026 was 1.56 million units, down 0.6% from May 2026 and up 1.3% from one year ago.

Unsold inventory sat at a 4.6-month supply at the end of June 2026, up from 4.5 months in May 2026 and up 4.6 months from one year ago.

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 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.

Single-family housing starts in June 2026 were at an annual rate of 895,000, 0.2% below the revised figure for May 2026 of 897,000.

Sales of new single‐family houses in June 2026 were at a seasonally adjusted annual rate of 628,000 according to the U.S.

Census Bureau and the Department of Housing and Urban Development.

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.

This was 1.6% above the May 2026 rate of 618,000 and 5.6% below the June 2025 rate of 665,000.

The median sales price of new houses sold in June 2026 was $398,300, which was 3.3% below the May 2026 median of $412,000.

The seasonally adjusted estimate of new houses for sale at the end of June 2026 represented a supply of 9.3 months at the current sales rate.

According to Freddie Mac, the average commitment rate for a 30-year, fixed-rate mortgage was 6.55% as of July 22, 2026, down from 6.75% one year ago.

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

According to CoStar, the U.S.

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.

apartment market is moving toward improved supply-demand balance, but conditions remain soft.

Net deliveries in the second quarter of 2026 slowed to 113,000 units, which is down 25% from a year earlier.

Construction starts have dropped to their lowest level in more than a decade, reflecting declining rent trends, longer lease-up timelines, higher capital costs, and tighter lending standards.

Deliveries are reducing from their peak, yet supply is still projected to run above normal absorption, pushing vacancy higher through the second half of 2026.

Vacancy rates overall decreased to 8.1% in the second quarter of 2026, with vacancy of 10.1% for 4- & 5-star buildings, at 8.1% among 3-star buildings, and 6.2% for 1- & 2-star buildings.

Geographic variation remains a distinguishing feature of multifamily performance.

Vacancies are rising most in the South and Mountain regions, where new supply has been concentrated, while Midwest and Northeast markets remain more balanced.

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

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 the year.

Annual supply fell by 24% by year-end 2025, to approximately 529,000 units, and is projected to decline by more than 27% in 2026 to approximately 385,000 units at year-end 2026, the lowest level since 2019.

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:

Under-construction volumes also fell sharply in the first half of 2026, including declines of more than 6,700 units in Dallas-Fort Worth, 4,200 units in Houston, and notable reductions in Charlotte as well.

If sustained, this pullback in new supply would support excess inventory absorption in overbuilt Sun Belt markets, helping stabilize vacancy and support a return to stronger rent growth by early 2027.

Sale transaction activity continued to expand in the second quarter of 2026, albeit slower than the first quarter of 2026, at 3,600 transactions versus 18,000 properties in the first quarter.

The change in pace stems from a combination of meager rent growth and a modest repricing of interest rate expectations.

Activity remains concentrated in large, liquid markets where asset quality is consistent.

Those markets include Atlanta, Chicago, and Phoenix to name a few.

Cap rates have also stabilized for 4- and 5-star assets, between 5% and 5.5%, with premier assets occasionally dipping into the upper 4% territory.

Comparatively, 3-Star properties are more likely to trade between 5.75% to 6.25%.

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

Springfield, Missouri at 8.7%, St.

Louis 10.0%, Kansas City 8.5%, Minneapolis at 6.1%, Dallas-Fort Worth 11.6%, Chicago 5.2%, Atlanta 10.9%, Phoenix 11.2%, Denver 10.3% and Charlotte, North Carolina 11.7%.

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 office sector continued to see demand rebound in the first half of 2026, with growth in the last four consecutive quarters.

The national vacancy rate fell to 13.9% as of June 30, 2026 from a record high of 14.2% at midyear 2025.

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

This has all occurred despite an overall lack of hiring by firms in the traditional office-using powerhouse industries of information, finance, and professional services.

Collectively, organizations in these knowledge-based economic sectors have shed roughly 675,000 jobs since early 2023.

The long-term projections are still uncertain on how much recovery the office market will see.

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 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.

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:

Leasing volumes remain depressed in many markets, including Atlanta, Chicago, Los Angeles, Seattle, and Washington, DC.

Furthermore, the composition of tenants in the market has shifted.

The number of lease deals executed in the first half of 2026 was the most in a decade.

However, per CoStar, the average size remains roughly 15% smaller than in the late 2010s, a geographically broad trend that has persisted for the past two years.

Office asking rents have risen little since early 2020, while effective rents have fallen significantly.

Class A prime location rents have increased sharply in some submarkets, with demand concentrating in premium buildings.

Meanwhile, Class A buildings in non-premium buildings have struggled until recently to maintain steady rents.

Constricting availability has helped to stabilize rents in this tier of buildings in some markets, but not all.

In certain submarkets, highly amenitized and/or transit-oriented areas, asking rents have resumed growth at or above the rate of inflation.

Second quarter 2026 sales volume dipped slightly from the first quarter of 2026.

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

While the overall fundamental picture for office space remains persistent in the near term, the acceleration in trades suggests capital is increasingly positioning ahead of what could be a turning point for the sector.

The broadening of buyer activity continues to support improving liquidity, even as underwriting practices remain tempered and business plans rely more on asset-level execution than market-driven rent growth.

If absorption continues to improve as it has done in the last four quarters and pricing momentum continues, transaction activity is likely to remain on an upward path.

As of June 2026, national office vacancy rates remained stable at 13.9%, while our market areas reflected the following vacancy levels:

Springfield, Missouri at 3.9%, St.

Louis at 11%, Kansas City 9.9%, Minneapolis 12.5%, Dallas-Fort Worth at 17.4%, Chicago at 17.0%, Atlanta at 16.4%, Denver at 18.5%, Phoenix at 15.8% and Charlotte, North Carolina at 13.1%.

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.

retail market leveled out in the second quarter of 2026.

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 downside risks remain, including renewed closure pressure tied to discretionary spending, refinancing challenges for mid-tier retailers and broader macro uncertainty amid higher energy prices, the market’s low supply base positions the retail sector to remain in relative balance through the remainder of 2026.

Leasing activity remained a key point of strength in 2025 and in the first half of 2026.

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

Market participants continue to report rapid backfilling of second-generation vacancies, particularly in centers with strong traffic and visibility.

The median time to lease remains near historic lows, and the share of available space leased each quarter continues to run above historical norms, reflecting sustained competition for high-quality inventory.

Retail rent growth continued to moderate through the second quarter of 2026, with the national average asking rent hovering around 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.

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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.

As a result, rent growth is forecast to remain subdued but stable over the next several quarters.

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:

During the second quarter of 2026, national retail vacancy rates remained steady at 4.3% while our market areas reflected the following vacancy levels:

Springfield, Missouri at 2.5%, St.

Louis at 3.9%, Kansas City at 4.7%, Minneapolis at 2.6%, Dallas-Fort Worth at 5.1%, Chicago at 4.9%, Atlanta at 4.4%, Phoenix at 4.8%, Denver at 4.4%, and Charlotte, North Carolina at 3.3%.

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:

industrial market performance continues to favor the tenant, reporting a decade-long high vacancy rate of 7.4% at June 30, 2026.

While net absorption has recovered from soft activity, a supply overhang remains.

Assuming the economy continues to expand, albeit at a reduced sub-2% real GDP growth rate, according to Oxford Economics, vacancy is forecast to increase through the remainder of 2026, peaking below 8%, and to begin declining in 2027 as deliveries moderate.

Going forward, continued trade uncertainty remains a drag on demand, specifically for national and regional logistics distribution hubs.

Consumer spending on goods could weaken due to inflationary shocks and a reduction in real household incomes.

Due to elevated vacancy rates and slower leasing, year-over-year rent growth slowed to 1.2% for June 2026, its lowest rate since 2012.

Annual asking rent growth has pulled back across various size groups, declining roughly 2.7% for spaces larger than 50,000 square feet, remaining flat for leases between 25,000 and 50,000 square feet, and rising less than 1% for smaller spaces.

Competitive lease-up of new supply and elevated availability in older buildings continue to pressure landlord pricing power.

While small-bay space remains the most liquid segment of the market, rising availability across most size ranges points to continued near-term softness in rent growth across markets and property types.

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

In the near term, rents for big-box logistics buildings of up to 500,000 SF are likely to remain soft due to elevated supply availability in most markets.

Large industrial buildings in markets with the most saturated speculative development, such as Austin, Indianapolis, Phoenix, and San Antonio, are most at risk.

Sales volume increased to approximately $26 billion in the second quarter of 2026.

This drive was carried forward from 2025, when total sales surpassed $80 billion, making it the third strongest year on record.

Deal flow continues to skew toward the extremes.

Transactions under $10 million remain the most active segment, while the $10 million to $50 million range has not progressed as far.

Meanwhile, institutional capital has returned to the high end of the market, with sales over $50 million gaining share and showing renewed traction.

Cap rates have expanded roughly 150 basis points and now typically hover in the mid-5% to 6% range.

Pricing risk remains level as construction deliveries continue to slow.

For the second quarter of 2026, national industrial vacancy was 7.4% while our market areas reflected the following industrial vacancy levels:

Springfield, Missouri at 1.5%, St.

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For discussion of the risk factors associated with multi-family and commercial real estate loans, see “Risk Factors – Risks Relating to Lending Activities – Our loan portfolio possesses increased risk due to our relatively high concentration of commercial and residential construction, commercial real estate, other residential (multi-family) and other commercial loans” and “Risk Factors – Risks Relating to Regulation – We currently exceed thresholds defined in interagency guidance on commercial real estate concentrations, and as such, we may incur additional expense or slow the growth of certain categories of commercial real estate lending” in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.

The profitability of the Company and, more specifically, the profitability of its primary subsidiary, the Bank, depends primarily on its net interest income, as well as provisions for credit losses and the level of non-interest income and non-interest expense.

The profitability of the Company and, more specifically, the profitability of its primary subsidiary, the Bank, depends primarily on net interest income, as well as provisions for credit losses and the level of non-interest income and non-interest expense.

Net interest income is the difference between the interest income the Bank earns on its loans and investment securities, and the interest it pays on interest-bearing liabilities, which consists mainly of interest paid on deposits and borrowings.

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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 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.

Great Southern’s total assets decreased $75.8 million, or 1.4%, from $5.60 billion at December 31, 2025, to $5.52 billion at June 30, 2026.

Details of the current period changes in total assets are provided below, under “Comparison of Financial Condition at June 30, 2026 and December 31, 2025.”

Net outstanding loans decreased $49.1 million from December 31, 2025, to $4.31 billion at June 30, 2026.

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

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.

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

Total commercial real estate and commercial construction balances were fairly stable over the preceding 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.

however, other residential (multi-family) loan balances decreased in 2025 and in the first six months of 2026.

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.

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

Certain minimum underwriting standards and monitoring help assure the Company’s portfolio quality.

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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.

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

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.

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.

To minimize construction risk, projects are monitored as construction draws are requested by comparison to budget and with progress verified through property inspections.

To minimize construction risk, projects are monitored as construction draws are requested by comparison to budget and with progress

verified through property inspections.

The geographic and product diversity of collateral, equity requirements and limitations on speculative construction projects help to mitigate overall risk in these loans.

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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 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.

At both June 30, 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 June 30, 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 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.

In the six months ended June 30, 2026, available-for-sale securities decreased $20.0 million, or 3.8%, from $523.8 million at December 31, 2025, to $503.8 million at June 30, 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 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.

In the six months ended June 30, 2026, held-to-maturity securities decreased $3.9 million, or 2.2%, from $179.2 million at December 31, 2025, to $175.3 million at June 30, 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 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.

In the six months ended June 30, 2026, total deposit balances decreased $180.7 million, or 4.0%.

Compared to December 31, 2025, brokered deposits decreased $87.8 million, transaction account balances decreased $56.0 million, or 1.8%, to $3.07 billion, and retail certificates of deposit decreased $36.9 million, or 5.4%, to $651.5 million at June 30, 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 $35.8 million.

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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.

Brokered deposits, including IntraFi program purchased funds, were $575.6 million and $663.4 million at June 30, 2026 and December 31, 2025, respectively.

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.

Our deposit balances may fluctuate depending on customer preferences and our relative need for funding.

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

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.

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 Six Months Ended June 30 , 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 $11.3 million from $48.5 million at December 31, 2025 to $37.2 million at March 31, 2026.

Securities sold under reverse repurchase agreements with customers decreased $8.6 million from $48.5 million at December 31, 2025 to $39.9 million at June 30, 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 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.

Short term borrowings and other interest-bearing liabilities increased $114.7 million from $330.9 million at December 31, 2025 to $445.6 million at June 30, 2026.

The Company’s FHLBank term advances were $-0- at both June 30, 2026 and December 31, 2025.

At June 30, 2026 and December 31, 2025, there were $445.0 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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This was the first rate increase since September 2006.

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%.

The FRB also implemented rate increases of 0.25% on eight additional occasions between December 2016 and 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 each of September, October, and December 2025, respectively.

In 2025, the FRB implemented rate decreases 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.

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

The Federal Funds rate remained at 3.75% at June 30, 2026.

Financial markets no longer expect further decreases in Federal Funds interest rates in 2026, and now expect the Federal Funds interest rate to remain steady or to increase modestly by the end of 2026.

Great Southern’s loan portfolio includes loans ($1.68 billion at June 30, 2026) tied to various SOFR indexes that will be subject to adjustment at least once within 90 days after June 30, 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.

Great Southern also has a portfolio of loans ($614.3 million at June 30, 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.

At June 30, 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.

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

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.

In the event of an FRB rate cut, the Company may be limited in its ability to significantly lower its funding costs due to a highly competitive rate environment, 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, although funding costs may also increase.

As of June 30 , 2026, Great Southern’s interest rate risk models indicated that, generally, rising interest rates would be expected to have a modestly positive impact on the Company’s net interest income, while declining interest rates would be 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.

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.

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 decrease significantly in a short period of time, as they did in March 2020, our net interest margin decrease may be more pronounced in the very near term (first one to three months), due to fairly rapid decreases in SOFR interest rates and “prime” interest rates.

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In 2023, market interest rate increases moderated and loan yield increases moderated in line with market rates.

However, there has been increased competition for deposits and other sources of funding, resulting in higher costs for those funds.

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.

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.

However, there has been increased competition for deposits and other sources of funding since March 2023, resulting in higher costs for those funds.

Deposit and other funding costs moderated some 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 six 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 Months Ended March 31 , 2026 and 2025.”

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 Six Months Ended June 30 , 2026 and 2025.”

Effect of Federal Laws and Regulations

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Business Initiatives

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

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

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.

Great Southern launched a partnership with Greenlight, a debit card and financial learning app for kids and teens, in April 2026.

The partnership offers a free Greenlight membership to Great Southern customers and is part of the Company’s ongoing efforts to expand both technology and family banking offerings.

Also in April 2026, the Company’s fully redesigned website www.GreatSouthernBank.com, launched.

The website, representative of Great Southern’s continued technology investments, offers customers and interested parties an improved online experience with up-to-date content, improved navigation, easier access to financial education information and more.

In June 2026, the Company decided, as part of its regular operational reviews, to consolidate nine banking centers into other existing Great Southern locations and to eliminate a total of 66 staff positions across various Company divisions, including those at the impacted banking centers.

These decisions were part of routine business maintenance as the organization evaluated products, services and workforce to align with changing market dynamics.

Of the nine consolidating banking centers, one is in Arkansas, one is in Kansas, two are in Iowa and five are in Missouri (three in the Springfield metro area).

Affected banking centers are scheduled to close October 1, 2026, except for the Arkansas location, which is scheduled to close September 25, 2026.

All staff positions to be eliminated outside of the nine banking centers have an anticipated effective date of September 30, 2026.

As a result of these decisions, some related expenses were required to be recorded in the 2026 second quarter financial statements.

A list of the affected banking center locations is available on our website www.GreatSouthernBank.com.

The banking center consolidations and the workforce reductions are expected to result in approximately $2.3 - $2.7 million in annual pre-tax income improvement, beginning in the fourth quarter of 2026.

This estimate incorporates compensation, facility and other non-interest expense savings, expected to be $4.4 - $4.8 million annually.

These expense savings are expected to be partially offset by anticipated customer deposit attrition over time related to the branch closures, resulting in additional interest expense for alternative funding sources along with reduced non-interest income generated from these deposit accounts.

If deposit account attrition is ultimately greater than our estimates, it may negatively impact our anticipated annual pre-tax income improvement.

At June 30, 2026, total demand deposits at the nine impacted banking centers were approximately $170 million and retail time deposit balances were approximately $25 million.

Also, as part of the organizational evaluation of products and services, Great Southern continues to expand its Live Teller ATM network with four new locations, including its first installations in the Des Moines, Iowa market and a new Great Southern Express-branded location in Ozark, Mo.

The banking center located at 3839 Indian Hills Dr.

in Sioux City, Iowa, temporarily closed July 3, 2026, for a complete remodel.

This reinvestment will bring a fully refreshed banking center to the Bank’s Sioux City customers, including updated and brightened interiors, updated technology, and the installation of a drive-thru Live Teller ATM offering extended banking hours for customer convenience.

During the temporary closure, customers are served by six additional banking centers in the greater Sioux City area, and 15 ATM locations.

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

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 Company currently operates 87 retail banking centers in Missouri, Iowa, Kansas, Minnesota, Arkansas and Nebraska and commercial lending offices in Atlanta, Charlotte, Chicago, Dallas, Denver 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 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.

Comparison of Financial Condition at June 30, 2026 and December 31, 2025

During the six months ended June 30, 2026, the Company’s total assets decreased by $75.8 million to $5.52 billion.

The decrease was primarily due to a decreases in net loans and investment securities.

Cash and cash equivalents were $180.0 million at June 30, 2026, a decrease of $9.6 million, or 5.1%, from $189.6 million at December 31, 2025.

The Company’s available-for-sale securities decreased $20.0 million, or 3.8%, compared to December 31, 2025.

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.

This decrease was 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 9.1% of total assets at June 30, 2026 and 9.4% of total assets at December 31, 2025.

The Company’s held-to-maturity securities decreased $3.9 million, or 2.2%, compared to December 31, 2025.

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 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 held-to-maturity securities portfolio was 3.2% of total assets at June 30, 2026 and December 31, 2025.

Net loans decreased $49.1 million from December 31, 2025, to $4.31 billion at June 30, 2026.

This decrease was primarily in commercial real estate loans ($73.3 million decrease) and other residential (multi-family) loans ($39.9 million decrease), partially offset by an increase in construction loans ($53.2 million increase).

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

The net decrease in other residential (multi-family) loans and commercial real estate loans was primarily related to a few large loan prepayments in 2026.

The pipeline of the unfunded portion of loans and formal loan commitments remained strong at June 30, 2026, with the largest portion of these unfunded balances represented by the unfunded portion of outstanding construction loans ($531.5 million).

Total liabilities decreased $81.3 million from December 31, 2025, to $4.88 billion at June 30, 2026.

This decrease was primarily due to a decrease in the balance of brokered deposits and interest-bearing transaction deposit accounts, partially offset by an increase in overnight borrowings from the Federal Home Loan Bank.

Total deposits decreased $180.7 million, or 4.0%, from $4.48 billion at December 31, 2025 to $4.30 billion at June 30, 2026.

Transaction account balances decreased $56.0 million, from $3.13 billion at December 31, 2025 to $3.07 billion at June 30, 2026.

Total interest-bearing checking accounts decreased $91.8 million while total non-interest-bearing checking accounts increased $35.8 million.

Retail certificates of deposit decreased $36.9 million compared to December 31, 2025, to $651.5 million at June 30, 2026, due to increased competition for these types of deposits.

Brokered deposits decreased $87.8 million to $575.6 million at June 30, 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 March 31, 2026, $300.0 million were floating rate deposits, which adjust daily, based on the effective federal funds rate index.

Of the total brokered deposits at June 30, 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’s term FHLBank advances were $-0- at both June 30, 2026 and December 31, 2025.

At June 30, 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 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.

Short-term borrowings and other interest-bearing liabilities increased $114.7 million from $330.9 million at December 31, 2025 to $445.6 million at June 30, 2026.

At June 30, 2026, $445.0 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 $8.6 million, or 17.6%, from $48.5 million at December 31, 2025 to $39.9 million at June 30, 2026.

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

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 stockholders’ equity increased $5.5 million, or 0.9%, from $636.1 million at December 31, 2025 to $641.6 million at June 30, 2026.

Stockholders’ equity increased due to net income of $33.3 million for the six months ended June 30, 2026 and an $11.9 million increase in stockholders’ equity due to stock option exercises during the period.

Partially offsetting these changes were repurchases of the Company’s common stock totaling $24.8 million and dividends declared on common stock of $9.4 million.

Additionally, accumulated other comprehensive loss (a reduction in equity) increased $5.5 million during the six months ended June 30, 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.

Comparison of Results of Operations for the Three and Six Months Ended June 30, 2026 and 2025

Net income was $15.8 million for the three months ended June 30, 2026 compared to $19.8 million for the three months ended June 30, 2025.

This decrease of $4.0 million, or 20.2%, was primarily due to an increase in non-interest expense of $3.2 million, or 9.2%, a decrease in net interest income of $1.5 million, or 2.9%, a decrease in non-interest income of $837,000, or 10.2%, and an increase in provision for credit losses on unfunded commitments of $118,000, or 107.3%, partially offset by a decrease in income tax expense of $1.7 million, or 36.7%.

Net income was $33.3 million for the six months ended June 30, 2026 compared to $36.9 million for the six months ended June 30, 2025.

This decrease of $3.6 million, or 9.9%, was primarily due to an increase in non-interest expense of $3.2 million, or 4.6%, a decrease in net interest income of $2.5 million, or 2.5%, and a decrease in non-interest income of $398,000, or 2.7%, partially offset by an increase in negative provision for credit losses on unfunded commitments of $465,000, or 101.5%, and a decrease in income tax expense of $1.9 million, or 21.9%.

The 2026 results were negatively impacted by non-recurring expenses recorded in the three months ended June 30, 2026, related to the consolidation of nine banking centers and other operational areas.

In June 2026, the Company decided to consolidate operations of nine banking centers into other nearby Great Southern banking center locations.

See “Business Initiatives” above.

Accounting rules require that related costs and expected losses be recorded immediately, while any expected gains are not recorded until realized.

Upon evaluating the carrying value and estimated market value of each affected location (all of which are owned facilities), a valuation allowance of $1.4 million was recognized in the three months ended June 30, 2026 related to four of the locations.

The Company currently does not expect to ultimately realize losses on the sale of the other five properties and expects the eventual aggregate selling price of all affected properties will exceed the combined carrying value of the affected locations (approximately $12.6 million at June 30, 2026).

In addition to the valuation allowance, severance expense of $234,000 was recognized in the three months ended June 30, 2026 related to the termination of 39 employees due to the closure of the nine banking centers.

The Company also announced a limited number of other operational workforce reductions, including the closure of two commercial lending locations.

These reductions resulted in the recognition of $327,000 in severance costs related to 27 employees along with $163,000 in remaining lease expense associated with one of the commercial lending locations.

The $2.1 million of expenses outlined above are included in the Consolidated Statements of Income under “Noninterest Expense – Net Occupancy and Equipment Expense” and “Noninterest Expenses – Salaries and employee benefits,” respectively.

For the three months ended June 30, 2026, the Company reported that annualized return on average common equity was 9.83%, annualized return on average assets was 1.12%, annualized net interest margin was 3.76% and the efficiency ratio was 67.21%, compared to 12.81%, 1.34%, 3.68% and 59.16%, respectively, for the quarter ended June 30, 2025.

Excluding the non-recurring expenses referenced above, for the three months ended June 30, 2026, net income was $17.4 million, earnings per diluted common share were $1.57, annualized return on average common equity was 10.82%, annualized return on average assets was 1.24%, and the efficiency ratio was 63.47%.

A reconciliation of these non-GAAP calculations is detailed in “Non-GAAP Financial Measures” below.

Total Interest Income

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.

Total interest income decreased $8.5 million, or 10.5%, during the three months ended June 30, 2026 compared to the three months ended June 30, 2025.

The decrease was due to an $8.1 million, or 11.0%, decrease in interest income on loans and a $370,000, or 5.2%, 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 from loans, investment securities and other interest-earning assets decreased during the three months ended June 30, 2026 compared to the same period in 2025 due to lower average balances and average rates of interest.

Total interest income decreased $17.6 million, or 10.9%, during the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

The decrease was due to a $16.6 million, or 11.3%, decrease in interest income on loans and a $1.0 million, or 7.2%, 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 six months ended June 30, 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 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.

During the three months ended June 30, 2026 compared to the three months ended June 30, 2025, interest income on loans decreased $8.1 million.

Of the $8.1 million decrease in interest income on loans, $4.2 million was due to a decrease in average yield on loans, from 6.26% during the three months ended June 30, 2025 to 5.89% during the three months ended June 30, 2026.

This decrease was primarily because of a reduction in the federal funds rate in the latter portion of 2025, along with the completion of recognition of income from a terminated interest rate swap.

The remaining decrease in interest income on loans of $3.9 million was due to lower average loan balances, which fell from $4.73 billion during the three months ended June 30, 2025, to $4.47 billion during the three months ended June 30, 2026.

In the first half of 2026, loan originations were somewhat muted, and since June 30, 2025, net loan payoffs were elevated, resulting in a lower average balance of loans receivable compared to the three months ended June 30, 2025.

During the six months ended June 30, 2026 compared to the six months ended June 30, 2025, interest income on loans decreased $16.6 million.

Of the $16.6 million decrease in interest income on loans, $8.4 million was due to a decrease in average yield on loans, from 6.24% during the six months ended June 30, 2025 to 5.88% during the six months ended June 30, 2026.

This decrease was primarily because of a reduction in the federal funds rate in the latter portion of 2025, along with the completion of recognition of income from a terminated interest rate swap.

The remaining decrease in interest income on loans of $8.1 million was due to lower average loan balances, which fell from $4.74 billion during the six months ended June 30, 2025, to $4.47 billion during the six months ended June 30, 2026.

The reasons for this decrease are the same as those noted above.

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

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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.

The Company recorded interest income related to the interest rate swap of $2.0 million and $4.0 million in the three and six months ended June 30, 2025, respectively.

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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In each case, the floating rate resets monthly and net settlements of interest due to/from the counterparty also occur monthly.

To the extent the fixed rate of interest exceeds the floating rate of interest, the Company receives net interest settlements, which are recorded as loan interest income.

To the extent the fixed rate of interest

exceeds the floating rate of interest, the Company receives net interest settlements, which are recorded as loan interest income.

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 $1.0 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%.

The Company recorded a reduction of loan interest income related to these swap transactions of $1.0 million and $1.8 million in the three months ended June 30, 2026 and 2025, respectively.

The Company recorded a reduction of loan interest income related to these swap transactions of $2.1 million and $3.5 million in the six months ended June 30, 2026 and 2025, respectively.

At June 30, 2026, the USD-Prime rate was 6.75% and the one-month USD-SOFR OIS rate was 3.63179%.

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 $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.

Interest income on investments decreased $122,000 in the three months ended June 30, 2026 compared to the three months ended June 30, 2025.

The decrease in interest income on investments was primarily due to a $155,000 decrease in average balances from $727.3 million during the three months ended June 30, 2025, to $709.0 million during the three months ended June 30, 2026.

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 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.

Partially offsetting this decrease, interest income on investments increased $33,000 as a result of slightly higher average interest rates, from 3.36% during the three months ended June 30, 2025, to 3.38% during the three months ended June 30, 2026.

Interest income on investments decreased $464,000 in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

Of the $464,000 decrease in interest income on investments, $277,000 was due to a decrease in average balances from $732.7 million during the six months ended June 30, 2025, to $715.9 million during the six months ended June 30, 2026.

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.

Additionally, interest income on investments decreased $187,000 as a result of slightly lower average interest rates, from 3.35% during the six months ended June 30, 2025, to 3.30% during the six months ended June 30, 2026.

Interest income on other interest-earning assets decreased $248,000 in the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Of the $248,000 decrease, $186,000 was due to a decrease in average interest rates from 4.30% during the three months ended June 30, 2025, to 3.50% during the three months ended June 30, 2026.

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.

Additionally, interest income decreased $62,000 as a result of a decrease in average balances from $97.5 million during the three months ended June 30, 2025, to $91.4 million during the three months ended June 30, 2026, mainly due to the Company’s maintaining modestly lower average balances in its account at the Federal Reserve Bank.

Interest income on other interest-earning assets decreased $573,000 in the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Of the $573,000 decrease in interest income on other interest-earnings assets, $360,000 was due to a decrease in average interest rates from 4.27% during the six months ended June 30, 2025, to 3.50% during the six months ended June 30, 2026.

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

Additionally, interest income decreased $213,000 as a result of a decrease in average balances from $101.2 million during the six months ended June 30, 2025, to $90.4 million during the six months ended June 30, 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 $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.

Total interest expense decreased $7.0 million, or 23.5%, during the three months ended June 30, 2026, when compared with the three months ended June 30, 2025.

Interest expense on deposits decreased $6.5 million, or 26.7%, interest expense on securities sold under reverse repurchase agreements decreased $239,000, or 64.2%, and interest expense on subordinated debentures issued to capital trusts decreased $35,000, or 9.0%.

In addition, interest expense on subordinated notes decreased $909,000, or 100.0%, as the notes were fully redeemed in June 2025.

Partially offsetting these decreases, interest expense on short-term borrowings increased $646,000, or 16.3%.

Total interest expense decreased $15.1 million, or 24.8%, during the six months ended June 30, 2026, when compared with the six months ended June 30, 2025.

Interest expense on deposits decreased $12.8 million, or 26.1%, interest expense on securities sold under reverse repurchase agreements decreased $514,000, or 69.2%, and interest expense on subordinated debentures issued to capital trusts decreased $75,000, or 9.7%.

In addition, interest expense on subordinated notes decreased $2.0 million, or 100.0%, as the notes were

fully redeemed in June 2025.

Partially offsetting these decreases, interest expense on short-term borrowings increased $258,000, or 3.1%.

Interest Expense – Deposits

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.

Interest expense on demand and savings deposits decreased $1.4 million during the three months ended June 30, 2026, when compared to the three months ended June 30, 2025.

Of the $1.4 million decrease in interest expense on demand and savings deposits, $1.2 million was due to a decrease in average rates of interest from 1.40% in the three months ended June 30, 2025 to 1.18% in the three months ended June 30, 2026.

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

Additionally, the average balance of demand and savings deposits decreased from $2.23 billion in the three months ended June 30, 2025 to $2.18 billion in the three months ended June 30, 2026, resulting in a decrease in interest expense on demand and savings deposits of $149,000.

Interest expense on demand and savings deposits decreased $2.4 million during the six months ended June 30, 2026, when compared to the six months ended June 30, 2025.

Average rates of interest decreased from 1.41% in the six months ended June 30, 2025 to 1.20% in the six months ended June 30, 2026, resulting in a $2.4 million decrease in interest expense.

In addition, the average balance of demand and savings deposits ($2.22 billion) decreased $7.2 million in the six months ended June 30, 2025 compared to the six months ended June 30, 2026, resulting in a decrease in interest expense on demand and savings deposits of $50,000.

Interest expense on time deposits decreased $1.7 million during the three months ended June 30, 2026 when compared to the three months ended June 30, 2025.

Of the $1.7 million decrease in interest expense on time deposits, $936,000 was due to the decrease in average rate from 3.45% in the three months ended June 30, 2025, to 2.92% in the three months ended June 30, 2026.

Time deposits renewed or originated at lower rates in 2026 due to decreases in market interest rates in the latter portion of 2025.

The average balance of time deposits decreased from $757.6 million during the three months ended June 30, 2025 to $659.7 million in the three months ended June 30, 2026, resulting in a decrease in interest expense of $783,000.

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

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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 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.

Interest expense on time deposits decreased $3.3 million during the six months ended June 30, 2026 when compared to the six months ended June 30, 2025.

The average rate of interest on time deposits decreased from 3.49% in the six months ended June 30, 2025, to 2.96% in the six months ended June 30, 2026, resulting in a decrease in interest expense of $1.9 million.

The average balance of time deposits decreased from $764.8 million during the six months ended June 30, 2025 to $673.4 million in the six months ended June 30, 2026, resulting in a decrease in interest expense of $1.5 million.

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 $3.4 million during the three months ended June 30, 2026 when compared to the three months ended June 30, 2025.

The average balance of brokered deposits decreased from $895.3 million during the three months ended June 30, 2025 to $684.5 million during the three months ended June 30, 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.

Interest expense on brokered deposits decreased $1.3 million due to average rates of interest that decreased from 4.50% in the three months ended June 30, 2025 to 3.89% in the three months ended June 30, 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.

Interest expense on brokered deposits decreased $7.0 million during the six months ended June 30, 2026 when compared to the six months ended June 30, 2025.

The average balance of brokered deposits decreased from $894.0 million during the six months ended June 30, 2025 to $682.8 million during the six months ended June 30, 2026, resulting in a decrease in interest expense of $4.3 million during the period.

Interest expense on brokered deposits decreased $2.7 million due to average rates of interest that decreased from 4.54% in the six months ended June 30, 2025 to 3.88% in the six months ended June 30, 2026.

Brokered deposits added in the second half of 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 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.

FHLBank term advances were not utilized during the three or six months ended June 30, 2026 and 2025.

FHLBank overnight borrowings were utilized in both the three and six months ended June 30, 2026 and 2025 and are included in short-term borrowings.

Interest expense on reverse repurchase agreements decreased $239,000 during the three months ended June 30, 2026 when compared to the three months ended June 30, 2025.

The average balance of repurchase agreements decreased from $65.6 million in the three months ended June 30, 2025 to $34.9 million in the three months ended June 30, 2026, due to lower interest rates on this product and fluctuations in customers’ desire for this product, resulting in a decrease in interest expense of $141,000 during the period.

Interest expense on reverse repurchase agreements decreased $98,000 due to lower average interest rates during the three months ended June 30, 2026 when compared to the three months ended June 30, 2025.

The average rate of interest was 2.27% for the three months ended June 30, 2025 compared to 1.53% for the three months ended June 30, 2026, due to changes in the mix of customer balances in these products and overall reductions in market interest rates.

Interest expense on reverse repurchase agreements decreased $514,000 during the six months ended June 30, 2026 when compared to the six months ended June 30, 2025.

Interest expense on reverse repurchase agreements decreased $306,000 due to lower average interest rates during the six months ended June 30, 2026 when compared to the six months ended June 30, 2025.

The average rate of interest was 2.03% for the six months ended June 30, 2025 compared to 1.26% for the six months ended June 30, 2026, due to changes in the mix of customer balances in these products and overall reductions in market interest rates.

The average balance of repurchase agreements decreased from $74.0 million in the six months ended June 30, 2025 to $36.5 million in the six months ended June 30, 2026, due to fluctuations in customers’ desire for this product, resulting in a decrease in interest expense of $208,000 during the period.

Interest expense on short-term borrowings (including overnight borrowings from the FHLBank) and other interest-bearing liabilities increased $646,000 during the three months ended June 30, 2026 when compared to the three months ended June 30, 2025.

Interest expense on short-term borrowings (including overnight borrowings from the FHLBank) and other interest-bearing liabilities increased $1.1 million due to a higher average balance during the three months ended June 30, 2026 when compared to the three months ended June 30, 2025.

The average balance of short-term borrowings and other interest-bearing liabilities increased from $347.3 million in the three months ended June 30, 2025 to $472.6 million in the three months ended June 30, 2026.

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

Partially offsetting this increase, interest expense on short-term borrowings (including overnight borrowings from the FHLBank) and other interest-bearing liabilities decreased $437,000 due to lower average rates of interest.

The average rate of interest on short-term borrowings and other interest-bearing liabilities decreased from 4.59% for the three months ended June 30, 2025 to 3.92% for the three months ended June 30, 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.

Interest expense on short-term borrowings (including overnight borrowings from the FHLBank) and other interest-bearing liabilities increased $258,000 during the six months ended June 30, 2026 when compared to the six months ended June 30, 2025.

Interest expense on short-term borrowings (including overnight borrowings from the FHLBank) and other interest-bearing liabilities increased $877,000 due to a higher average balance during the six months ended June 30, 2026 when compared to the six months ended June 30, 2025.

The average balance of short-term borrowings and other interest-bearing liabilities increased from $369.8 million in the six months ended June 30, 2025 to $446.0 million in the six months ended June 30, 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.

The average rate of interest on short-term borrowings and other interest-bearing liabilities decreased from 4.59% for the six months ended June 30, 2025 to 3.93% for the six months ended June 30, 2026, primarily due to reductions in the federal funds rate noted above.

During the three months ended June 30, 2026, compared to the three months ended June 30, 2025, interest expense on subordinated debentures issued to capital trusts decreased $35,000 due to lower average interest rates.

The average interest rate was 6.05% in the three months ended June 30, 2025, compared to 5.51% in the three months ended June 30, 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 5.52% at June 30, 2026.

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

During the six months ended June 30, 2026, compared to the six months ended June 30, 2025, interest expense on subordinated debentures issued to capital trusts decreased $75,000 due to lower average interest rates.

The average interest rate was 6.03% in the six months ended June 30, 2025, compared to 5.45% in the six months ended June 30, 2026.

The subordinated debentures are variable-

rate debentures, as stated above.

There was no change in the average balance of the subordinated debentures between the 2025 and 2026 six-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, when compared to the prior-year three-month periods, due to the redemption of the subordinated notes.

Interest expense on subordinated notes decreased $909,000 and $2.0 million, when compared to the prior-year three- and six-month periods, respectively, due to the redemption of the subordinated notes.

Net Interest Income

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.

Net interest income for the three months ended June 30, 2026 decreased $1.5 million to $49.5 million, compared to $51.0 million for the three months ended June 30, 2025.

Net interest margin was 3.76% in the three months ended June 30, 2026, compared to 3.68% in the three months ended June 30, 2025, an increase of eight basis points, or 2.2%.

The Company experienced decreases in nearly all interest income and interest expense categories as market interest rates decreased compared to the prior period.

Interest income primarily 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.

Net interest income for the six months ended June 30, 2026 decreased $2.5 million to $97.8 million, compared to $100.3 million for the six months ended June 30, 2025.

Net interest margin was 3.74% in the six months ended June 30, 2026, compared to 3.63% in the six months ended June 30, 2025, an increase of 11 basis points, or 3.0%.

The Company experienced decreases in nearly all interest income and interest expense categories as market interest rates decreased compared to the prior year period.

Interest income primarily decreased $4.0 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 15 basis points, or 5.0%, from 3.09% during the three months ended June 30, 2025 to 3.24% during the three months ended June 30, 2026, due to a 48 basis point decrease in the weighted average rate paid on interest-bearing liabilities, partially offset by a 33 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 increased two basis points and the yield on other interest-earning assets decreased 80 basis points.

The rate paid on deposits decreased 49 basis points, the rate paid on reverse repurchase agreements decreased 74 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 54 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.

The Company’s overall average interest rate spread increased 17 basis points, or 5.7%, from 3.05% during the six months ended June 30, 2025 to 3.22% during the six months ended June 30, 2026, due to a 52 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 36 basis points, the yield on investment securities decreased five basis points and the yield on other interest-earning assets decreased 77 basis points.

The rate paid on deposits decreased 50 basis points, the rate paid on reverse repurchase agreements decreased 77 basis points, the rate paid on short-term borrowings and other interest-bearing liabilities decreased 66 basis points and the rate paid on subordinated debentures issued to capital trust decreased 58 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 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.

During each of the three and six months ended June 30, 2026 and 2025, the Company did not record a provision expense on its portfolio of outstanding loans.

Total net charge offs were $819,000 for the three months ended June 30, 2026, compared to total net recoveries of $111,000 in the three months ended June 30, 2025.

Total net charge offs were $806,000 for the six months ended June 30, 2026, compared to total net recoveries of $55,000 in the six months ended June 30, 2025.

The provision for losses on unfunded commitments for the three months ended June 30, 2026 was a provision of $8,000, compared to a negative provision of $110,000 for the three months ended June 30, 2025.

The provision for losses on unfunded commitments for the six months ended June 30, 2026 was a negative provision of $923,000, compared to a negative provision of $458,000 for the six months ended June 30, 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 1.46% 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.

The Bank’s allowance for credit losses as a percentage of total loans was 1.46% at both June 30, 2026 and December 31, 2025.

Management considers the allowance for credit losses adequate to cover losses inherent in the Bank’s loan portfolio at June 30, 2026, 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 financial performance.

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 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.

At June 30, 2026, non-performing assets were $9.4 million, an increase of $1.3 million from $8.1 million at December 31, 2025.

Non-performing assets as a percentage of total assets were 0.17% and 0.15% at June 30, 2026 and December 31, 2025, respectively.

Compared to December 31, 2025, non-performing loans decreased $1.1 million, to $1.0 million at June 30, 2026.

Compared to December 31, 2025, foreclosed assets increased $2.4 million to $8.4 million at June 30, 2026.

Non-performing Loans .

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

Activity in the non-performing loans category during the six months ended June 30, 2026 was as follows:

Repossessions

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Total non-performing loans

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.

At June 30, 2026, the non-performing one- to four-family residential category included seven loans, five of which were added in the six months ended June 30, 2026.

The largest relationship in the one- to four-family residential category totaled $386,000, or 39.0% of the category, at June 30, 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.

During the six months ended June 30, 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.

During the six months ended June 30, 2026, a single loan totaling $1.8 million which had been collateralized by an apartment in eastern Iowa was also transferred from the non-performing other residential (multi-family) category to foreclosed assets.

Prior to the transfer to foreclosed assets, the Company recorded a loan charge-off of $909,000, based upon an updated independent appraisal of the asset.

The non-performing consumer category included two loans at June 30, 2026.

Potential Problem Loans.

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 decreased $233,000, to $1.2 million at June 30, 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 three months ended March 31, 2026 was as follows:

Activity in the potential problem loans category during the six months ended June 30, 2026 was as follows:

Repossessions

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Total potential problem loans

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.

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

At June 30, 2026, the one- to four-family residential category of potential problem loans included 12 loans, three of which were added to potential problem loans in the six months ended June 30, 2026.

The largest relationship in this category totaled $256,000, or 29.9% of the total category, and is collateralized by a single-family residential property in the St.

The consumer category of potential problem loans included 18 loans, eight of which were added during the six months ended June 30, 2026.

Other Real Estate Owned and Repossessions.

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:

All of the $8.4 million of other real estate owned and repossessions at June 30, 2026 were acquired through foreclosure.

Activity in foreclosed assets and repossessions during the six months ended June 30, 2026 was as follows:

(In Thousands)

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Total foreclosed assets and repossessions

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.

At June 30, 2026, the commercial real estate category of foreclosed assets consisted of one foreclosed property totaling $6.5 million, which is an office building located in Clayton, Missouri and was foreclosed upon in the fourth quarter of 2024.

In the six months ended June 30, 2026, the Company capitalized $582,000 in improvements to the property.

As mentioned in previous filings, the Company reported that it expected such improvements to ultimately cost approximately $3 million and take several months to complete.

It is expected that these additional costs will be incurred and capitalized on this asset during the remainder of 2026.

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.

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

At June 30, 2026, the other residential (multi-family) category, totaling $1.8 million, consisted of one relationship that was transferred from non-performing loans in the current period.

This asset, mentioned above in the non-performing loans discussion, consisted of an apartment complex in eastern Iowa.

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 Company expects that it will make significant repairs and improvements to this property.

The improvements are expected to cost approximately $800,000 and take several months to complete.

The Company expects to capitalize these expenditures, which were contemplated as part of the charge-off analysis when the asset was transferred to foreclosed assets.

The one- to four-family residential category of foreclosed assets previously included one property consisting of a condominium in the Sarasota, Fla.

area, which was added during the three months ended March 31, 2026.

This property was sold in the three months ended June 30, 2026, with the Company realizing a small gain on the sale.

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.

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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” 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.

Loans classified as “Watch” increased $178,000, from $20.5 million at December 31, 2025 to $20.6 million at June 30, 2026, primarily due to the addition of one loan totaling $3.9 million that is secured by a retail facility located in northeastern Ohio.

The loan was downgraded due to vacancies in the facility.

This increase was partially offset by the repayment in full of a loan relationship totaling $3.1 million.

Of the total loans included in the “Watch” category at June 30, 2026, 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.

In the six months ended June 30, 2026, loans classified as “Special Mention” increased $1.5 million, to $36.3 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.

This increase was partially offset by the repayment in full of a loan relationship totaling $5.2 million.

Non-interest Income

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:

For the three months ended June 30, 2026, non-interest income decreased $837,000, to $7.4 million, compared to the three months ended June 30, 2025, primarily as a result of the following items:

Other income :

Other income decreased $897,000, or 47.6%, compared to the prior-year period.

In the three months ended June 30, 2025, the Company recorded income of $1.1 million related to exits from, and other activities of, its investments in tax credit partnerships, which was not repeated in the 2026 period.

Commissions :

Commissions income increased $230,000, or 56.0%, 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.

The increase was due to annuity sales that were 94% higher in the 2026 period compared to the 2025 period.

Yields on these products have been attractive to many of our customers.

For the six months ended June 30, 2026, non-interest income decreased $398,000, to $14.4 million, compared to the six months ended June 30, 2025, primarily as a result of the following items:

Other income :

Other income decreased $727,000, or 24.7%, compared to the prior-year period, for the same reasons noted above.

Commissions :

Commissions income increased $583,000, or 86.6%, from the prior-year period.

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

Non-interest Expense

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 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.

For the three months ended June 30, 2026, non-interest expense increased $3.2 million, to $38.2 million, compared to the three months ended June 30, 2025, primarily as a result of the following items:

Net occupancy and equipment expenses :

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.

Net occupancy and equipment expenses increased $2.2 million, or 26.7%, from the prior-year period.

In June 2026, the Company decided to consolidate operations of nine banking centers into other nearby Great Southern banking center locations and close one leased facility which served as the Company’s Omaha, Neb.

loan production office.

The Company evaluated the carrying value of the affected owned premises (totaling approximately $12.6 million) to determine if any impairment of the value of these premises was warranted and recorded a valuation allowance of $1.4 million related to certain affected premises, furniture, fixtures and equipment of the owned locations at June 30, 2026.

During the three months ended June 30, 2026, the Company also recorded expenses totaling $163,000 related to contractual future lease payments for the Omaha leased lending facility.

For additional information on these consolidations, see “Business Initiatives.”

Additionally, various components of computer license and support expenses, related to upgrades of core systems capabilities and disaster recovery site, collectively increased by $333,000 in the three months ended June 30, 2026 compared to the 2025 period.

Salaries and employee benefits :

Salaries and employee benefits increased $686,000, or 3.4%, from the prior-year period.

The increase was primarily due to the Company recording $561,000 in expenses related to severance pay for employees affected by the consolidations in banking centers and other operational areas.

See “Business Initiatives.”

For the six months ended June 30, 2026, non-interest expense increased $3.2 million, to $73.0 million, compared to the six months ended June 30, 2025, primarily as a result of the following items:

Net occupancy and equipment expenses :

Net occupancy and equipment expenses increased $2.6 million, or 15.2%, from the prior-year period.

This increase was primarly due to the decision to consolidate operations of nine banking centers discussed above.

Additionally, various components of computer license and support expenses, related to upgrades of core systems capabilities and disaster recovery site, collectively increased by $673,000 in the six months ended June 30, 2026 compared to the same period in 2025.

Salaries and employee benefits :

Salaries and employee benefits increased $628,000, or 1.6%, from the prior-year period, for the same reasons noted above.

Legal, audit and other professional fees :

Legal, audit and other professional fees decreased $310,000, or 15.8%, from the prior-year period, to $1.7 million.

In the six months ended June 30, 2026, the Company recovered $261,000 in previously expensed legal fees pursuant to an insurance reimbursement related to a multi-family residential loan.

The Company’s efficiency ratio for the three months ended June 30, 2026, was 67.21% compared to 59.16% for the same period in 2025.

The Company’s efficiency ratio for the six months ended June 30, 2026, was 65.06% compared to 60.67% for the same period in 2025.

The Company’s ratio of non-interest expense to average assets was 2.72% and 2.60% for the three and six months ended June 30, 2026, respectively, compared to 2.37% and 2.35% for the three and six months ended June 30, 2025, respectively.

Average assets for the three months ended June 30, 2026, decreased $298.6 million, or 5.0%, compared to the three months ended June 30, 2025, primarily due to the decline in the average balance of net loans.

Provision for Income Taxes

For the three months ended March 31, 2026 and 2025, the Company’s effective tax rate was 18.7% and 20.0%, respectively.

For the three months ended June 30, 2026 and 2025, the Company’s effective tax rate was 15.3% and 18.5%, respectively.

For the six months ended June 30, 2026 and 2025, the Company’s effective tax rate was 17.1% and 19.2%, 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.

The effective rates in the 2026 periods also decreased due to a higher-than-normal level of deductions related to the significant amount of stock option exercises by the Company’s employees.

The Company’s effective tax rate may fluctuate in future periods as it is impacted by the level and timing of the Company’s utilization of tax credits, the level of tax-exempt investments and loans, the amount of taxable income in various state jurisdictions and the overall level of pre-tax income.

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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 $879,000 and $970,000 for the three months ended March 31, 2026 and 2025, respectively.

Net loan fees included in interest income were $1.2 million and $1.1 million for the three months ended June 30, 2026 and 2025, respectively.

Net loan fees included in interest income were $2.0 million and $2.1 million for the six months ended June 30, 2026 and 2025, respectively.

Tax-exempt income was not calculated on a tax equivalent basis.

2 unchanged sentences

Three Months Ended

March 31, 2026

March 31, 2025

June 30, 2026

June 30, 2025

(Dollars in Thousands)

33 unchanged sentences

* 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 $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.

Of the total average balances of investment securities, average tax-exempt investment securities were $51.0 million and $51.9 million for the three months ended June 30, 2026 and 2025, respectively.

In addition, average tax-exempt loans and industrial revenue bonds were $8.9 million and $9.7 million for the three months ended June 30, 2026 and 2025, respectively.

Interest income on tax-exempt assets included in this table was $511,000 and $610,000 for the three months ended June 30, 2026 and 2025, respectively.

Interest income net of disallowed interest expense related to tax-exempt assets was $248,000 and $523,000 for the three months ended June 30, 2026 and 2025, respectively.

Six Months Ended

June 30, 2026

June 30, 2025

(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 $51.4 million and $53.5 million for the six months ended June 30, 2026 and 2025, respectively.

In addition, average tax-exempt loans and industrial revenue bonds were $9.1 million and $9.8 million for the six months ended June 30, 2026 and 2025, respectively.

Interest income on tax-exempt assets included in this table was $1.0 million and $1.2 million for the six months ended June 30, 2026 and 2025, respectively.

Interest income net of disallowed interest expense related to tax-exempt assets was $496,000 and $981,000 for the six months ended June 30, 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 March 31,

Three Months Ended June 30,

Increase (Decrease)

16 unchanged sentences

Net interest income

Six Months Ended June 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

Liquidity is a measure of the Company’s ability to generate sufficient cash to meet present and future financial obligations in a timely manner through either the sale or maturity of existing assets or the acquisition of additional funds through liability management.

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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.

At June 30, 2026, the Company had commitments of approximately $66.1 million to fund loan originations, $1.06 billion of unused lines of credit and unadvanced loans, and $19.0 million of outstanding letters of credit.

Loan commitments and the unfunded portion of loans at the dates indicated were as follows (In Thousands):

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The Company has also utilized both fixed-rate and floating-rate brokered deposits of varying terms, as well as overnight FHLBank borrowings.

At March 31, 2026 and December 31, 2025, the Company had the following available secured lines and on-balance sheet liquidity:

At June 30, 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 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.

During the six months ended June 30, 2026 and 2025, the Company had positive cash flows from operating activities, positive cash flows from investing activities and negative cash flows from financing activities.

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.

Operating activities provided cash of $27.3 million and $54.3 million during the six months ended June 30, 2026 and 2025, respectively.

During the six months ended June 30, 2026 and 2025, investing activities provided cash of $56.6 million and $170.9 million, respectively.

Investing activities in the 2026 period provided cash primarily due to net decreases in outstanding loan balances and principal payments received on investment securities, partially offset by the redemption of Federal Home Loan Bank stock.

Investing activities in the 2025 period provided cash primarily due to net decreases in outstanding loan balances and 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 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.

During the six months ended June 30, 2026 and 2025, financing activities used cash of $93.5 million and $175.1 million, respectively.

In the 2026 period, financing activities used cash primarily as a result of net decreases in checking, time, and brokered deposits, repurchases of the Company’s common stock and dividends paid to stockholders, partially offset by net increases in short-term borrowings and stock options exercised.

In the 2025 period, financing activities used cash primarily as a result of repayments of FRB borrowings and subordinated notes, repurchases of the Company’s common stock and dividends paid to stockholders, partially offset by net increases in time deposits, checking deposits and 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 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.

At June 30, 2026, the Company’s total stockholders’ equity was $641.6 million, or 11.6% of total assets, equivalent to a book value of $58.95 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 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.

At June 30, 2026, the Company’s tangible common equity to tangible assets ratio was 11.5%, compared to 11.2% at December 31, 2025 (See Non-GAAP Financial Measures below).

Included in stockholders’ equity at June 30, 2026 and December 31, 2025, were unrealized losses (net of taxes) on the Company’s available-for-sale investment securities totaling $30.3 million and $27.6 million, respectively.

This change in net unrealized losses primarily resulted from increases in short-term market interest rates during the six months ended June 30, 2026, which generally decreased the fair value of the Company’s investment securities.

Also included in stockholders’ equity at June 30, 2026 and December 31, 2025, were unrealized loss (net of taxes) on the Company’s two outstanding cash flow hedges (interest rate swaps) totaling $7.0 million and $4.2 million, respectively.

This change in net unrealized losses during the six months ended June 30, 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 increased $5.5 million, from $636.1 million at December 31, 2025 to $641.6 million at June 30, 2026.

Total stockholders’ equity increased due to net income of $33.3 million in the six months ended June 30, 2026 and an $11.9 million increase in stockholders’ equity during that period due to stock option exercises.

Partially offsetting these items were repurchases of the Company’s common stock during the six months ended June 30, 2026 totaling $24.8 million and dividends declared on common stock during that period of $9.4 million.

Stockholders’ equity also decreased due to an increase in accumulated other comprehensive loss of $5.5 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.

The Company had unrealized losses on its portfolio of held-to-maturity investment securities, which totaled $17.4 million and $16.6 million at June 30, 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 June 30, 2026 and December 31, 2025, they would have decreased total stockholder’s equity at those dates by $13.1 million and $12.5 million, respectively.

These amounts were equal to 2.0% of total stockholders’ equity of $641.6 million at June 30, 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 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%.

At June 30, 2026, the Bank’s common equity Tier 1 capital ratio was 13.3%, its Tier 1 risk-based capital ratio was 13.3%, its total risk-based capital ratio was 14.6% and its Tier 1 leverage ratio was 11.3%.

As a result, as of June 30, 2026, the Bank was well capitalized, with capital ratios in excess of those

required to qualify as such.

At 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%.

As a result, as of December 31, 2025, the Bank was well capitalized, with capital ratios in excess of those required to qualify as such.

The FRB has established capital regulations for bank holding companies that generally parallel the capital regulations for banks.

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 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).

At June 30, 2026, the Company’s common equity Tier 1 capital ratio was 14.0%, its Tier 1 capital ratio was 14.6%, its total capital ratio was 15.8% and its Tier 1 leverage ratio was 12.4%.

At 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%.

At June 30, 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 June 30, 2026, the Company declared a common stock cash dividend of $0.43 per share, or 30% 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 March 2026).

During the three months ended June 30, 2025, the Company declared a common stock cash dividend of $0.40 per share, or 23% 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 March 2025).

During the six months ended June 30, 2026, the Company declared common stock cash dividends totaling $0.86 per share, or 29% of net income per diluted common share for that six-month period and paid common stock cash dividends totaling $0.86 per share.

During the six months ended June 30, 2025, the Company declared common stock cash dividends totaling $0.80 per share, or 25% of net income per diluted common share for that six-month period and paid common stock cash dividends totaling $0.80 per share.

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 March 31, 2026, was paid to stockholders in April 2026.

The $0.43 per share dividend declared but unpaid as of June 30, 2026, was paid to stockholders in July 2026.

Common Stock Repurchases and Issuances .

The Company has been in various buy-back programs since May 1990.

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.

During the three months ended June 30, 2026, the Company repurchased 114,624 shares of its common stock at an average price of $68.39 per share and issued 125,221 shares of common stock at an average price of $54.17 per share to cover stock option exercises.

During the three months ended June 30, 2025, the Company repurchased 175,998 shares of its common stock at an average price of $55.11 per share and issued 7,320 shares of common stock at an average price of $45.67 per share to cover stock option exercises.

During the six months ended June 30, 2026, the Company repurchased 383,288 shares of its common stock at an average price of $64.29 per share and issued 205,480 shares of common stock at an average price of $52.89 per share to cover stock option exercises.

During the six months ended June 30, 2025, the Company repurchased 349,342 shares of its common stock at an average price of $56.73 per share and issued 22,327 shares of common stock at an average price of $47.38 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.

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This program does not have an expiration date.

At March 31, 2026, approximately 419,000 shares remained available under the latest stock repurchase authorization.

At June 30, 2026, approximately 304,000 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.

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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”), including the ratio of tangible common equity to tangible assets and information excluding one-time branch consolidation and severance costs, specifically, net income, earnings per diluted common share, annualized return on average common equity, annualized return on average assets and efficiency ratio.

In calculating the ratio of tangible common equity to tangible assets, we subtract period-end intangible assets from common equity and from total assets.

Management believes that the presentation of this measure excluding the impact of intangible assets provides useful supplemental information that is helpful in understanding our financial condition and results of operations, as it provides a method to assess management’s success in utilizing our tangible capital as well as our capital strength.

Management believes that the presentation of this measure excluding the impact of intangible assets provides

useful supplemental information that is helpful in understanding our financial condition and results of operations, as it provides a method to assess management’s success in utilizing our tangible capital as well as our capital strength.

Management also believes that providing a measure that excludes balances of intangible assets, which are subjective components of valuation, facilitates the comparison of our performance with the performance of our peers.

In addition, management believes that this is a standard financial measure used in the banking industry to evaluate performance.

This non-GAAP financial measurement is supplemental and is not a substitute for any analysis based on GAAP financial measures.

Management believes that the presentation of certain measures excluding one-time branch consolidation and severance costs provides useful supplemental information that is helpful in understanding our core operating performance when comparing periods.

These non-GAAP financial measurements are supplemental and not a substitute for any analysis based on GAAP financial measures.

Because not all companies use the same calculation of non-GAAP measures, this presentation may not be comparable to other similarly titled measures as calculated by other companies.

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Tangible common equity to tangible assets (a) / (b)

Non-GAAP Reconciliation:

Exclusion of One-Time Branch Consolidation and Severance Costs

Three Months Ended

June 30, 2026

(Dollars in thousands)

Reported net income at period end

One-time consolidation and severance costs

Tax adjustment related to consolidation and severance costs

Non-GAAP net income

Reported non-interest expense

One-time consolidation and severance costs

Non-GAAP non-interest expense

Non-GAAP annualized return on average common equity

Non-GAAP net income (annualized) divided by average common equity

Non-GAAP annualized return on average assets

Non-GAAP net income (annualized) divided by average total assets

Non-GAAP efficiency ratio

Non-GAAP non-interest expense divided by the sum of net interest income and non-interest income

Non-GAAP earnings per common diluted share

Non-GAAP net income divided by average diluted shares outstanding

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