ISABELLA BANK CORP 10-Q

Item 1. Financial Statements. INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) (unaudited) March 31 2026 December 31 2025 ASSETS Cash and demand deposits due from banks $ 23,896 $ 22,935 Federal funds sold and interest bearing balances due from banks 26,209 3,106 Total cash and cash equivalents 50,105 26,041 Marketable securities AFS (amortized cost of $ 503,366 and $ 507,689 , respectively) 492,744 497,791 Mortgage loans HFS 360 423 Loans held for investment 1,558,941 1,536,364 Allowance for credit losses ( 14,014 ) ( 13,727 ) Loans, net 1,544,927 1,522,637 FHLB stock, at cost 5,600 5,600 Premises and equipment 29,064 29,000 Cash surrender value of BOLI 46,173 46,133 Goodwill and other intangible assets 48,282 48,282 Other assets 34,701 33,541 Total assets $ 2,251,956 $ 2,209,448 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities Noninterest bearing demand deposits $ 411,216 $ 426,342 Interest bearing demand deposits 263,954 266,187 Money market deposits 477,544 436,631 Savings 300,732 280,429 Certificates of deposit 406,399 410,065 Total deposits 1,859,845 1,819,654 Short-term borrowings 113,530 68,000 FHLB advances — 45,000 Subordinated debt, net of unamortized issuance costs 29,537 29,514 Other liabilities 15,083 15,884 Total liabilities 2,017,995 1,978,052 Shareholders’ equity Common stock — no par value, 15,000,000 shares authorized: issued and outstanding 7,333,319 shares at March 31, 2026 and 7,322,207 shares at December 31, 2025 123,251 123,204 Shares to be issued for deferred compensation obligations 2,522 2,366 Retained earnings 116,790 113,849 Accumulated other comprehensive loss ( 8,602 ) ( 8,023 ) Total shareholders’ equity 233,961 231,396 Total liabilities and shareholders’ equity $ 2,251,956 $ 2,209,448 See notes to interim condensed consolidated financial statements (unaudited). 4 Table of Contents INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands except per share amounts) Three Months Ended March 31 2026 2025 Interest income Loans, including fees $ 21,464 $ 19,348 AFS securities Taxable 2,489 2,103 Nontaxable 499 540 FHLB stock 75 160 Federal funds sold and other 602 482 Total interest income 25,129 22,633 Interest expense Deposits 7,112 7,463 Short-term borrowings 736 341 FHLB advances 133 38 Subordinated debt 266 266 Total interest expense 8,247 8,108 Net interest income 16,882 14,525 Provision for (reversal of) credit losses 604 ( 107 ) Net interest income after provision for credit losses 16,278 14,632 Noninterest income Service charges and fees 2,372 1,974 Wealth management fees 1,108 979 Increase in the cash surrender value of BOLI 448 372 Net gain on sale of mortgage loans 33 30 Other 400 173 Total noninterest income 4,361 3,528 Noninterest expenses Compensation and benefits 7,928 7,383 Occupancy and equipment 2,840 2,600 Other professional services 1,015 711 ATM and debit card fees 558 486 Marketing 506 459 FDIC insurance premiums 306 303 Other 1,509 1,357 Total noninterest expenses 14,662 13,299 Income before income tax expense 5,977 4,861 Income tax expense 985 912 Net income $ 4,992 $ 3,949 Earnings per common share Basic $ 0.68 $ 0.53 Diluted 0.68 0.53 Cash dividends per common share 0.28 0.28 See notes to interim condensed consolidated financial statements (unaudited). 5 Table of Contents INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Dollars in thousands) Three Months Ended March 31 2026 2025 Net income $ 4,992 $ 3,949 Unrealized gains (losses) on AFS securities ( 724 ) 5,014 Tax effect (1) 145 ( 1,098 ) Unrealized gains (losses) on AFS securities, net of tax ( 579 ) 3,916 Comprehensive income $ 4,413 $ 7,865 (1) See “Note 6 – Capital Ratios and Shareholders' Equity” of these consolidated financial statements for tax effect reconciliation. See notes to interim condensed consolidated financial statements (unaudited). 6 Table of Contents INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) (Dollars in thousands except per share amounts) Common Stock Common Shares Outstanding Amount Common Shares to be Issued for Deferred Compensation Obligations Retained Earnings Accumulated Other Comprehensive Income (Loss) Totals December 31, 2024 7,424,893 $ 126,224 $ 2,383 $ 103,024 $ ( 21,355 ) $ 210,276 Comprehensive income (loss) — — — 3,949 3,916 7,865 Issuance of common stock 17,332 419 — — — 419 Common stock issued for deferred compensation under the RSP 11,367 — — — — — Common stock transferred from the Rabbi Trust to satisfy deferred compensation obligations — 42 ( 42 ) — — — Share-based payment awards under the Directors Plan — — 167 — — 167 Share-based compensation expense recognized in earnings under the RSP — 7 — — — 7 Common stock repurchased ( 45,582 ) ( 1,145 ) — — — ( 1,145 ) Cash dividends paid ($ 0.28 per common share) — — — ( 2,033 ) — ( 2,033 ) March 31, 2025 7,408,010 $ 125,547 $ 2,508 $ 104,940 $ ( 17,439 ) $ 215,556 December 31, 2025 7,322,207 $ 123,204 $ 2,366 $ 113,849 $ ( 8,023 ) $ 231,396 Comprehensive income (loss) — — — 4,992 ( 579 ) 4,413 Issuance of common stock 9,682 433 — — — 433 Common stock issued for deferred compensation under the RSP 9,492 — — — — — Share-based payment awards under the Directors Plan — — 156 — — 156 Share-based compensation expense recognized in earnings under the RSP — 16 — — — 16 Common stock repurchased ( 8,062 ) ( 402 ) — — — ( 402 ) Cash dividends paid ($ 0.28 per common share) — — — ( 2,051 ) — ( 2,051 ) March 31, 2026 7,333,319 $ 123,251 $ 2,522 $ 116,790 $ ( 8,602 ) $ 233,961 See notes to interim condensed consolidated financial statements (unaudited). 7 Table of Contents INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands) Three Months Ended March 31 2026 2025 Operating activities Net income $ 4,992 $ 3,949 Reconciliation of net income to net cash provided by operating activities Provision for (reversal of) credit losses 604 ( 107 ) Depreciation 562 535 Net amortization of AFS securities 188 307 Net gain on sale of mortgage loans ( 33 ) ( 30 ) Increase in the cash surrender value of BOLI, net of expenses ( 444 ) ( 368 ) Gains from redemption of BOLI policies ( 131 ) — Share-based payment awards 172 174 Origination of loans HFS ( 1,575 ) ( 1,043 ) Proceeds from loan sales 1,671 1,188 Net changes in: Other assets ( 1,450 ) ( 200 ) Other liabilities ( 778 ) 241 Net cash provided by (used in) operating activities 3,778 4,646 Investing activities Proceeds from maturities, calls and prepayments of AFS securities 53,053 21,058 Purchases of AFS securities ( 48,918 ) ( 40,362 ) Net change in loans HFI ( 22,924 ) 55,576 Purchases of premises and equipment ( 536 ) ( 984 ) Purchases of BOLI policies — ( 10,583 ) Proceeds from redemption of BOLI policies 535 — Proceeds from sale of FHLB stock — 7,162 Proceeds from sales of foreclosed assets 375 58 Low income housing tax credit investments — ( 3,767 ) Net cash provided by (used in) investing activities ( 18,415 ) 28,158 Financing activities Net increase (decrease) in deposits 40,191 50,849 Net increase (decrease) in short-term borrowings 45,530 ( 6,257 ) Net increase (decrease) in FHLB advances ( 45,000 ) ( 30,000 ) Cash dividends paid on common stock ( 2,051 ) ( 2,033 ) Proceeds from issuance of common stock 433 419 Common stock repurchased ( 402 ) ( 1,145 ) Net cash provided by (used in) financing activities 38,701 11,833 Increase (decrease) in cash and cash equivalents 24,064 44,637 Cash and cash equivalents at beginning of period 26,041 24,542 Cash and cash equivalents at end of period $ 50,105 $ 69,179 8 Table of Contents INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (continued) (Dollars in thousands) Supplemental cash flows information Interest paid $ 8,121 $ 7,919 Federal income taxes paid — — Supplemental noncash information Transfers of loans to foreclosed assets 30 218 Transfers of foreclosed assets to premises and equipment 90 — See notes to interim condensed consolidated financial statements (unaudited). 9 Table of Contents NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Dollars in thousands except per share amounts and ratios, unless otherwise noted) Note 1 – Significant Accounting Policies Basis of Presentation and Consolidation The consolidated financial statements include the accounts of Isabella Bank Corporation, a registered financial holding company, and its wholly owned banking subsidiary, Isabella Bank. All intercompany balances and accounts have been eliminated in consolidation. References to “we,” “our,” “us,” and “the Corporation” refer to Isabella Bank Corporation, a Michigan corporation and registered financial holding company, our wholly-owned banking subsidiary, Isabella Bank, and our other consolidated subsidiaries. References to “the Bank” refer to Isabella Bank. The accompanying unaudited interim condensed consolidated financial statements in this Form 10-Q have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments considered necessary for a fair presentation have been included. Operating results for the three-month period ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. For further information, refer to our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 13, 2026 (the “2025 Annual Report on Form 10-K”). All financial data presented in these notes, as well as in Management’s Discussion and Analysis of Financial Condition and Results of Operations of this Form 10-Q, including financial data presented in the tables and explanations thereof, are expressed in thousands except per share amounts and ratios and unless otherwise noted. Operating Segments Segment information is prepared on the same basis that our Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”), manages our segments, evaluates financial results, and makes key operating decisions. While the CODM monitors the revenue streams of our various products and services, operations are managed, and financial performance is evaluated on a corporate-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the banking-related operations are considered by management to be aggregated in one reportable operating segment. The segment is also distinguished by the level of information provided to the CODM, who uses such information to review performance of various components of the business, which are then aggregated if operating performance, products and services, and geographical regions are similar. The CODM will evaluate the financial performance of our business components by evaluating revenue streams, significant expenses, and budget to actual results in assessing our reportable segment and in the determination of allocating resources. Further, the CODM uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. Consolidated net income is used to benchmark our results against our competitors. Benchmarking and monitoring of budget to actual results are used in assessing performance and in establishing compensation. Revenue from banking operations consists primarily of loan and investment interest, deposit related fees, and wealth fees. Interest expense, provision for credit losses, compensation, and occupancy and equipment costs provide the significant expenses in our banking operations. All operations are domestic. Changes in Significant Accounting Policies Our accounting policies are materially the same as those discussed in Note 1 to the Consolidated Financial Statements included in our 2025 Annual Report on Form 10-K. Subsequent Events We evaluated subsequent events after March 31, 2026 through the date our interim condensed consolidated financial statements were issued for potential recognition and disclosure. Management determined that no subsequent events require financial statement recognition or disclosure between March 31, 2026 and the date our interim condensed consolidated financial statements were issued. 10 Table of Contents Pending Accounting Standards ASU No. 2024-03: “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” In November 2024, ASU No. 2024-03 was issued to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, selling general and administrative expense, and research and development). The new authoritative guidance is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, as clarified in ASU No. 2025-01 issued in January 2025. The new authoritative guidance under ASU No. 2024-03 is not expected to have a significant impact on our operations or financial statement disclosures. Note 2 – AFS Securities The amortized cost and fair value of AFS securities, with gross unrealized gains and losses, are as follows as of the dates indicated: March 31, 2026 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury $ 160,172 $ — $ 1,809 $ 158,363 States and political subdivisions 69,332 28 3,026 66,334 Auction rate money market preferred 3,200 — 820 2,380 Agency mortgage-backed securities 22,074 — 1,161 20,913 Agency collateralized mortgage obligations 242,138 699 4,021 238,816 Corporate 6,450 — 512 5,938 Total $ 503,366 $ 727 $ 11,349 $ 492,744 December 31, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury $ 200,327 $ — $ 2,793 $ 197,534 States and political subdivisions 71,857 45 2,697 69,205 Auction rate money market preferred 3,200 — 787 2,413 Agency mortgage-backed securities 23,373 — 1,121 22,252 Agency collateralized mortgage obligations 202,482 1,149 3,165 200,466 Corporate 6,450 — 529 5,921 Total $ 507,689 $ 1,194 $ 11,092 $ 497,791 We made an accounting policy election to exclude accrued interest receivable on AFS securities from the amortized cost basis of AFS securities, as displayed above. Accrued interest receivable on AFS securities was $ 2,251 and $ 1,723 at March 31, 2026 and December 31, 2025, respectively, which is included in other assets on the consolidated balance sheets. Additional policy information related to AFS securities are discussed in detail in Note 1, Significant Accounting Policies in the consolidated financial statements included within the 2025 Annual Report on Form 10-K. 11 Table of Contents The amortized cost and fair value of AFS securities by contractual maturity as of March 31, 2026 are as follows: Maturing Securities with Variable Monthly Payments or Noncontractual Maturities Due in One Year or Less After One Year But Within Five Years After Five Years But Within Ten Years After Ten Years Total U.S. Treasury $ 160,172 $ — $ — $ — $ — $ 160,172 States and political subdivisions 10,294 17,366 19,985 21,687 — 69,332 Auction rate money market preferred — — — — 3,200 3,200 Agency mortgage-backed securities — — — — 22,074 22,074 Agency collateralized mortgage obligations — — — — 242,138 242,138 Corporate — — 6,450 — — 6,450 Total amortized cost $ 170,466 $ 17,366 $ 26,435 $ 21,687 $ 267,412 $ 503,366 Fair value $ 168,655 $ 17,236 $ 24,480 $ 20,264 $ 262,109 $ 492,744 Expected maturities for government sponsored enterprises and states and political subdivisions may differ from contractual maturities as issuers may have the right to call or prepay obligations. As the auction rate money market preferred investments have continual call dates, they are not reported by a specific maturity group. Because of their variable monthly payments, agency mortgage-backed securities and collateralized mortgage obligations are not reported by a specific maturity group. The information in the following tables pertains to AFS securities with gross unrealized losses as of March 31, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous loss position for which an allowance for credit losses has not been recorded. March 31, 2026 Less Than Twelve Months Twelve Months or More Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Total Unrealized Losses U.S. Treasury $ — $ — $ 1,809 $ 158,363 $ 1,809 States and political subdivisions 265 13,426 2,761 30,338 3,026 Auction rate money market preferred — — 820 2,380 820 Agency mortgage-backed securities — — 1,161 20,913 1,161 Agency collateralized mortgage obligations 521 66,333 3,500 110,791 4,021 Corporate — — 512 5,938 512 Total $ 786 $ 79,759 $ 10,563 $ 328,723 $ 11,349 Number of securities in an unrealized loss position: 57 156 213 December 31, 2025 Less Than Twelve Months Twelve Months or More Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Total Unrealized Losses U.S. Treasury $ — $ — $ 2,793 $ 197,534 $ 2,793 States and political subdivisions 993 13,446 1,704 24,823 2,697 Auction rate money market preferred — — 787 2,413 787 Agency mortgage-backed securities — — 1,121 22,252 1,121 Agency collateralized mortgage obligations 39 9,042 3,126 120,016 3,165 Corporate — — 529 5,921 529 Total $ 1,032 $ 22,488 $ 10,060 $ 372,959 $ 11,092 Number of securities in an unrealized loss position: 38 138 176 12 Table of Contents As of March 31, 2026, no ACL has been recognized on AFS securities in an unrealized loss position, as management does not believe any of the securities are impaired due to reasons of credit quality. This is based on our analysis of the underlying risk characteristics, including credit ratings, and other qualitative factors related to our AFS securities and consideration of our historical credit loss experience and internal forecasts. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. Management does not currently intend to sell any of the securities classified as AFS in the table above, and believes it is more likely than not that we will not have to sell any such securities before a recovery of cost. Unrealized losses are generally due to a continued elevated market interest rate environment compared to the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their respective maturity date or repricing date, or if the market yields for such investments decline. Note 3 – Loans and ACL Loan Composition The following table provides a detailed listing of our loan portfolio, excluding loans HFS, as of the dates indicated: March 31, 2026 December 31, 2025 Balance Percent of Total Balance Percent of Total Commercial and industrial Secured $ 191,139 12.26 % $ 189,071 12.31 % Unsecured 34,230 2.20 % 31,379 2.04 % Total commercial and industrial 225,369 14.46 % 220,450 14.35 % Commercial real estate Commercial mortgage owner occupied 240,433 15.42 % 229,906 14.96 % Commercial mortgage non-owner occupied 226,465 14.53 % 223,984 14.58 % Commercial mortgage 1-4 family investor 104,504 6.70 % 101,400 6.60 % Commercial mortgage multifamily 89,241 5.73 % 84,468 5.50 % Total commercial real estate 660,643 42.38 % 639,758 41.64 % Advances to mortgage brokers 72,083 4.62 % 76,676 4.99 % Agricultural Agricultural mortgage 68,540 4.40 % 69,769 4.54 % Agricultural other 28,429 1.82 % 32,340 2.11 % Total agricultural 96,969 6.22 % 102,109 6.65 % Residential real estate Senior lien 380,867 24.43 % 372,287 24.23 % Junior lien 11,021 0.71 % 10,970 0.71 % Home equity lines of credit 46,445 2.98 % 44,623 2.91 % Total residential real estate 438,333 28.12 % 427,880 27.85 % Consumer Secured - direct 27,698 1.78 % 28,648 1.86 % Secured - indirect 34,524 2.21 % 37,456 2.44 % Unsecured 3,322 0.21 % 3,387 0.22 % Total consumer 65,544 4.20 % 69,491 4.52 % Total $ 1,558,941 100.00 % $ 1,536,364 100.00 % We grant commercial, agricultural, residential real estate, and consumer loans to customers primarily in Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw counties in Michigan. The ability of borrowers to honor their repayment obligations is often dependent upon the real estate, agricultural, manufacturing, retail, gaming, tourism, health care, higher education, and general economic conditions of this region. Substantially all of our consumer and residential real estate loans are secured by various items of property, while commercial loans are secured primarily by real estate, business assets, and personal guarantees. A portion of loans are unsecured. 13 Table of Contents Loans that we have the intent and ability to hold in our portfolio are reported at their outstanding principal balance adjusted for any charge-offs, the ACL, and deferred fees or costs. Unless a loan has a nonaccrual status, interest income is accrued over the term of the loan based on the principal amount outstanding. We made an accounting policy election to exclude accrued interest receivable on loans from the amortized cost basis of loans. Accrued interest receivable on loans was $ 7,111 and $ 6,666 at March 31, 2026 and December 31, 2025, respectively, which is included in other assets on the consolidated balance sheets. Loan origination fees and certain direct loan origination costs are capitalized and recognized as a component of interest income over the term of the loan using the interest method. Net unamortized deferred loan costs were $ 2,929 and $ 2,989 as of March 31, 2026 and December 31, 2025, respectively. Commercial and agricultural loans include loans for commercial real estate, commercial operating loans, advances to mortgage brokers, farmland and agricultural production, and loans to states and political subdivisions. Repayment of these loans is dependent upon the successful operation and management of a business. We minimize our risk by limiting the amount of direct credit exposure to any one borrower to $ 18,000 . Borrowers with direct credit needs of more than $ 18,000 may be serviced through the use of loan participations with other commercial banks. Commercial and agricultural real estate loans commonly require loan-to-value limits of 80 % or less. Depending upon the type of loan, past credit history, and current operating results, we may require the borrower to pledge accounts receivable, inventory, property, or equipment. Government agency guarantees may be required. Personal guarantees and/or life insurance beneficiary assignments are generally required from the owners of closely held corporations, partnerships, and sole proprietorships. In addition, we may require annual financial statements, prepare cash flow analyses, and review credit reports of our borrowers. We offer adjustable-rate mortgages, construction loans, and fixed rate residential real estate loans which have amortization periods up to a maximum of 30 years. We consider the anticipated direction of interest rates, balance sheet duration, the sensitivity of our balance sheet to changes in interest rates, our liquidity needs, and overall loan demand to determine whether or not to sell fixed rate loans to Freddie Mac. Our lending policies generally limit the maximum loan-to-value ratio on residential real estate loans to 100 % of the lower of the appraised value of the property or the purchase price. Private mortgage insurance is typically required on loans with loan-to-value ratios in excess of 80 % unless the loan qualifies for government guarantees. Underwriting criteria for originated residential real estate loans generally include: • Evaluation of the borrower’s ability to make monthly payments. • Evaluation of the value of the property securing the loan. • Ensuring the payment of principal, interest, taxes, and hazard insurance generally does not exceed 28 % of a borrower’s gross income. • Ensuring all debt servicing does not exceed 40 % of income. • Verification of acceptable credit reports. • Verification of employment, income, and financial information. Appraisals are performed by independent appraisers and are reviewed for appropriateness. Generally, mortgage loan requests are reviewed by our mortgage loan committee or through a secondary market underwriting system. Loans in excess of $ 1,000 require the approval of one or more of the following Bank committees: Internal Loan Committee, the Executive Loan Committee, or the Board of Directors. Consumer loans include secured and unsecured personal loans. Loans are amortized for a period of up to 15 years based on the age and value of the underlying collateral. The underwriting emphasis is on a borrower’s perceived intent and ability to pay rather than collateral value. No consumer loans are sold to the secondary market. 14 Table of Contents Nonaccrual and Past Due Loans Nonaccrual loan policies, including a description of nonaccrual loans, are discussed in detail in Note 1, Significant Accounting Policies, and Note 3, Loans and ACL, in the consolidated financial statements included within the 2025 Annual Report on Form 10-K. The following table summarizes nonaccrual loan data by class of loans as of the dates indicated: March 31, 2026 December 31, 2025 Total Nonaccrual Loans Nonaccrual Loans with No ACL Total Nonaccrual Loans Nonaccrual Loans with No ACL Commercial and industrial Secured $ 508 $ 75 $ 442 $ — Commercial real estate Commercial mortgage owner occupied 743 — 766 — Commercial mortgage 1-4 family investor 3,000 3,000 3,000 3,000 Residential real estate Senior lien 167 167 370 370 Total $ 4,418 $ 3,242 $ 4,578 $ 3,370 The following tables summarize the past due and current loans for the entire loan portfolio as of the dates indicated: March 31, 2026 Past Due: Accruing Loans 90 or More Days Past Due 30-59 Days 60-89 Days 90 Days or More Current Total Commercial and industrial Secured $ 114 $ 5 $ 508 $ 190,512 $ 191,139 $ — Unsecured 23 — — 34,207 34,230 — Total commercial and industrial 137 5 508 224,719 225,369 — Commercial real estate Commercial mortgage owner occupied — 154 743 239,536 240,433 — Commercial mortgage non-owner occupied — — — 226,465 226,465 — Commercial mortgage 1-4 family investor 245 — 3,000 101,259 104,504 — Commercial mortgage multifamily — — — 89,241 89,241 — Total commercial real estate 245 154 3,743 656,501 660,643 — Advances to mortgage brokers — — — 72,083 72,083 — Agricultural Agricultural mortgage — — — 68,540 68,540 — Agricultural other — — — 28,429 28,429 — Total agricultural — — — 96,969 96,969 — Residential real estate Senior lien 4,980 — 85 375,802 380,867 — Junior lien — — — 11,021 11,021 — Home equity lines of credit — — — 46,445 46,445 — Total residential real estate 4,980 — 85 433,268 438,333 — Consumer Secured - direct 8 — — 27,690 27,698 — Secured - indirect 221 26 — 34,277 34,524 — Unsecured 10 — — 3,312 3,322 — Total consumer 239 26 — 65,279 65,544 — Total $ 5,601 $ 185 $ 4,336 $ 1,548,819 $ 1,558,941 $ — 15 Table of Contents December 31, 2025 Past Due: Accruing Loans 90 or More Days Past Due 30-59 Days 60-89 Days 90 Days or More Current Total Commercial and industrial Secured $ 121 $ 443 $ — $ 188,507 $ 189,071 $ — Unsecured — — — 31,379 31,379 — Total commercial and industrial 121 443 — 219,886 220,450 — Commercial real estate Commercial mortgage owner occupied — 766 — 229,140 229,906 — Commercial mortgage non-owner occupied 839 — — 223,145 223,984 — Commercial mortgage 1-4 family investor 67 — 3,000 98,333 101,400 — Commercial mortgage multifamily — — — 84,468 84,468 — Total commercial real estate 906 766 3,000 635,086 639,758 — Advances to mortgage brokers — — — 76,676 76,676 — Agricultural Agricultural mortgage — — — 69,769 69,769 — Agricultural other 60 — — 32,280 32,340 — Total agricultural 60 — — 102,049 102,109 — Residential real estate Senior lien 5,012 385 — 366,890 372,287 — Junior lien 12 — — 10,958 10,970 — Home equity lines of credit 115 — — 44,508 44,623 — Total residential real estate 5,139 385 — 422,356 427,880 — Consumer Secured - direct 21 — — 28,627 28,648 — Secured - indirect 284 30 — 37,142 37,456 — Unsecured 1 5 — 3,381 3,387 — Total consumer 306 35 — 69,150 69,491 — Total $ 6,532 $ 1,629 $ 3,000 $ 1,525,203 $ 1,536,364 $ — 16 Table of Contents Credit Quality Ratings and Indicators We have certain lending policies and procedures in place designed to maximize loan income within an acceptable level of risk. The Board of Directors reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management and the Board of Directors with frequent reports related to loan production, loan quality, and concentration of credit, loan delinquencies, nonperforming loans and potential problem loans. We seek to diversify the loan portfolio as a means of managing risk associated with fluctuations in economic conditions. Internally assigned credit risk ratings are reviewed, at a minimum, when loans are renewed or when management has knowledge of improvements or deterioration of the credit quality of individual credits . Descriptions of the internally assigned credit risk ratings for commercial and agricultural loans are discussed in detail in Note 3, Loans and ACL, in the consolidated financial statements included within the 2025 Annual Report on Form 10-K. The following tables display commercial and agricultural loans by credit risk ratings and year of origination as of the dates indicated: March 31, 2026 2026 2025 2024 2023 2022 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and industrial: Secured Risk ratings 1-3 $ 2,545 $ 239 $ 10,105 $ 8,000 $ 1,492 $ 5,646 $ 37,932 $ — $ 65,959 Risk rating 4 11,583 18,767 16,063 12,148 5,040 4,718 31,652 — 99,971 Risk rating 5 — 1,162 2,236 125 15,092 28 2,826 — 21,469 Risk rating 6 — 96 70 19 — 41 3,006 — 3,232 Risk rating 7 — 22 433 — — — 53 — 508 Risk rating 8 — — — — — — — — — Risk rating 9 — — — — — — — — — Total $ 14,128 $ 20,286 $ 28,907 $ 20,292 $ 21,624 $ 10,433 $ 75,469 $ — $ 191,139 2026 year-to-date gross charge-offs $ — $ 2 $ — $ — $ — $ — $ 1 $ — $ 3 Commercial and industrial: Unsecured Risk ratings 1-3 $ 51 $ 800 $ 25 $ 2,241 $ 347 $ 288 $ 3,254 $ — $ 7,006 Risk rating 4 3,255 9,444 719 627 586 257 10,209 — 25,097 Risk rating 5 — 1 — 60 — 463 1,524 — 2,048 Risk rating 6 — — 79 — — — — — 79 Risk rating 7 — — — — — — — — — Risk rating 8 — — — — — — — — — Risk rating 9 — — — — — — — — — Total $ 3,306 $ 10,245 $ 823 $ 2,928 $ 933 $ 1,008 $ 14,987 $ — $ 34,230 2026 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Owner occupied Risk ratings 1-3 $ 86 $ 5,270 $ 4,045 $ 8,402 $ 1,361 $ 32,910 $ 1,756 $ — $ 53,830 Risk rating 4 9,341 36,272 32,180 19,881 27,003 48,248 3,395 — 176,320 Risk rating 5 — 1,830 962 543 1,007 3,267 387 — 7,996 Risk rating 6 — — 1,319 154 — 71 — — 1,544 Risk rating 7 — — 743 — — — — — 743 Risk rating 8 — — — — — — — — — Risk rating 9 — — — — — — — — — Total $ 9,427 $ 43,372 $ 39,249 $ 28,980 $ 29,371 $ 84,496 $ 5,538 $ — $ 240,433 2026 year-to-date gross charge-offs $ — $ — $ — $ 154 $ — $ — $ — $ — $ 154 17 Table of Contents March 31, 2026 2026 2025 2024 2023 2022 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial real estate: Non-owner occupied Risk ratings 1-3 $ — $ 3,324 $ 263 $ 4,963 $ 5,839 $ 12,328 $ 102 $ — $ 26,819 Risk rating 4 2,466 26,841 7,138 21,148 44,033 56,803 3,808 — 162,237 Risk rating 5 — 248 9,875 7,756 10,091 7,936 486 — 36,392 Risk rating 6 — — — 974 — 43 — — 1,017 Risk rating 7 — — — — — — — — — Risk rating 8 — — — — — — — — — Risk rating 9 — — — — — — — — — Total $ 2,466 $ 30,413 $ 17,276 $ 34,841 $ 59,963 $ 77,110 $ 4,396 $ — $ 226,465 2026 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: 1-4 family investor Risk ratings 1-3 $ 316 $ 741 $ 718 $ 223 $ 2,583 $ 2,420 $ 5,277 $ — $ 12,278 Risk rating 4 2,819 15,596 9,057 6,452 7,478 38,321 7,853 — 87,576 Risk rating 5 — 293 — 135 213 121 339 — 1,101 Risk rating 6 — — — 509 — 40 — — 549 Risk rating 7 — — — 3,000 — — — — 3,000 Risk rating 8 — — — — — — — — — Risk rating 9 — — — — — — — — — Total $ 3,135 $ 16,630 $ 9,775 $ 10,319 $ 10,274 $ 40,902 $ 13,469 $ — $ 104,504 2026 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Multifamily Risk ratings 1-3 $ — $ — $ 877 $ — $ 1,579 $ 1,861 $ 246 $ — $ 4,563 Risk rating 4 5,512 21,365 5,020 940 18,603 28,841 220 — 80,501 Risk rating 5 — — 478 907 — 2,792 — — 4,177 Risk rating 6 — — — — — — — — — Risk rating 7 — — — — — — — — — Risk rating 8 — — — — — — — — — Risk rating 9 — — — — — — — — — Total $ 5,512 $ 21,365 $ 6,375 $ 1,847 $ 20,182 $ 33,494 $ 466 $ — $ 89,241 2026 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Advances to mortgage brokers Risk ratings 1-3 $ 72,083 $ — $ — $ — $ — $ — $ — $ — $ 72,083 2026 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Agricultural mortgage Risk ratings 1-3 $ — $ 2,590 $ 884 $ 546 $ 3,292 $ 5,296 $ 37 $ — $ 12,645 Risk rating 4 628 4,330 3,875 3,225 10,532 17,000 1,329 — 40,919 Risk rating 5 153 1,384 267 1,119 448 6,593 1,363 — 11,327 Risk rating 6 — — — — 2,068 1,581 — — 3,649 Risk rating 7 — — — — — — — — — Risk rating 8 — — — — — — — — — Risk rating 9 — — — — — — — — — Total $ 781 $ 8,304 $ 5,026 $ 4,890 $ 16,340 $ 30,470 $ 2,729 $ — $ 68,540 2026 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 18 Table of Contents March 31, 2026 2026 2025 2024 2023 2022 Prior Revolving Loans Revolving Loans Converted to Term Total Agricultural other Risk ratings 1-3 $ 206 $ 859 $ 376 $ 345 $ 609 $ 450 $ 2,891 $ — $ 5,736 Risk rating 4 722 1,836 594 679 540 434 9,323 — 14,128 Risk rating 5 15 881 51 107 13 1,322 2,541 — 4,930 Risk rating 6 — 3,476 — 72 — — 87 — 3,635 Risk rating 7 — — — — — — — — — Risk rating 8 — — — — — — — — — Risk rating 9 — — — — — — — — — Total $ 943 $ 7,052 $ 1,021 $ 1,203 $ 1,162 $ 2,206 $ 14,842 $ — $ 28,429 2026 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — December 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and industrial: Secured Risk ratings 1-3 $ 257 $ 10,256 $ 8,605 $ 1,841 $ 3,660 $ 2,471 $ 36,713 $ — $ 63,803 Risk rating 4 20,722 19,606 13,553 5,939 5,653 1,278 30,804 — 97,555 Risk rating 5 2,271 2,290 139 15,215 45 — 4,085 — 24,045 Risk rating 6 81 75 19 — 30 6 3,015 — 3,226 Risk rating 7 — 442 — — — — — — 442 Risk rating 8 — — — — — — — — — Risk rating 9 — — — — — — — — — Total $ 23,331 $ 32,669 $ 22,316 $ 22,995 $ 9,388 $ 3,755 $ 74,617 $ — $ 189,071 2025 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial: Unsecured Risk ratings 1-3 $ 867 $ 25 $ 2,165 $ 156 $ 10 $ 312 $ 3,302 $ — $ 6,837 Risk rating 4 11,882 955 813 1,240 188 274 7,080 — 22,432 Risk rating 5 2 — 61 — 476 — 1,488 — 2,027 Risk rating 6 — 83 — — — — — — 83 Risk rating 7 — — — — — — — — — Risk rating 8 — — — — — — — — — Risk rating 9 — — — — — — — — — Total $ 12,751 $ 1,063 $ 3,039 $ 1,396 $ 674 $ 586 $ 11,870 $ — $ 31,379 2025 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Owner occupied Risk ratings 1-3 $ 5,021 $ 4,101 $ 8,467 $ 1,385 $ 17,482 $ 16,095 $ 1,419 $ — $ 53,970 Risk rating 4 33,004 33,403 20,559 27,541 26,605 23,021 2,380 — 166,513 Risk rating 5 1,687 192 557 1,149 131 2,866 372 — 6,954 Risk rating 6 — 1,327 304 — 72 — — — 1,703 Risk rating 7 — 766 — — — — — — 766 Risk rating 8 — — — — — — — — — Risk rating 9 — — — — — — — — — Total $ 39,712 $ 39,789 $ 29,887 $ 30,075 $ 44,290 $ 41,982 $ 4,171 $ — $ 229,906 2025 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 19 Table of Contents December 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial real estate: Non-owner occupied Risk ratings 1-3 $ 3,346 $ 273 $ 4,996 $ 5,910 $ 9,132 $ 3,360 $ 102 $ — $ 27,119 Risk rating 4 26,715 7,300 21,512 44,632 31,180 26,464 1,595 — 159,398 Risk rating 5 249 9,938 7,641 10,192 1,612 6,343 466 — 36,441 Risk rating 6 — — 982 — — 44 — — 1,026 Risk rating 7 — — — — — — — — — Risk rating 8 — — — — — — — — — Risk rating 9 — — — — — — — — — Total $ 30,310 $ 17,511 $ 35,131 $ 60,734 $ 41,924 $ 36,211 $ 2,163 $ — $ 223,984 2025 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: 1-4 family investor Risk ratings 1-3 $ 615 $ 764 $ 225 $ 2,631 $ 1,445 $ 1,126 $ 3,068 $ — $ 9,874 Risk rating 4 15,675 9,486 7,180 7,873 26,081 13,609 6,983 — 86,887 Risk rating 5 269 — 137 216 — 122 338 — 1,082 Risk rating 6 — — 515 — — 42 — — 557 Risk rating 7 — — 3,000 — — — — — 3,000 Risk rating 8 — — — — — — — — — Risk rating 9 — — — — — — — — — Total $ 16,559 $ 10,250 $ 11,057 $ 10,720 $ 27,526 $ 14,899 $ 10,389 $ — $ 101,400 2025 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Multifamily Risk ratings 1-3 $ — $ 885 $ 363 $ 1,603 $ 852 $ 1,099 $ 288 $ — $ 5,090 Risk rating 4 20,842 5,030 957 18,892 10,087 19,158 220 — 75,186 Risk rating 5 — 480 914 — — 2,798 — — 4,192 Risk rating 6 — — — — — — — — — Risk rating 7 — — — — — — — — — Risk rating 8 — — — — — — — — — Risk rating 9 — — — — — — — — — Total $ 20,842 $ 6,395 $ 2,234 $ 20,495 $ 10,939 $ 23,055 $ 508 $ — $ 84,468 2025 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Advances to mortgage brokers Risk ratings 1-3 $ 76,676 $ — $ — $ — $ — $ — $ — $ — $ 76,676 2025 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Agricultural mortgage Risk ratings 1-3 $ 2,647 $ 714 $ 419 $ 2,993 $ 1,990 $ 3,945 $ 338 $ — $ 13,046 Risk rating 4 4,426 4,098 3,449 11,231 5,864 11,802 1,642 — 42,512 Risk rating 5 852 269 1,083 418 5,829 622 952 — 10,025 Risk rating 6 535 — — 2,068 69 1,514 — — 4,186 Risk rating 7 — — — — — — — — — Risk rating 8 — — — — — — — — — Risk rating 9 — — — — — — — — — Total $ 8,460 $ 5,081 $ 4,951 $ 16,710 $ 13,752 $ 17,883 $ 2,932 $ — $ 69,769 2025 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 20 Table of Contents December 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving Loans Converted to Term Total Agricultural other Risk ratings 1-3 $ 860 $ 503 $ 434 $ 671 $ 221 $ 277 $ 4,054 $ — $ 7,020 Risk rating 4 2,055 801 738 610 483 62 11,202 — 15,951 Risk rating 5 881 55 133 17 889 391 2,308 — 4,674 Risk rating 6 3,476 — 88 — 61 — 1,070 — 4,695 Risk rating 7 — — — — — — — — — Risk rating 8 — — — — — — — — — Risk rating 9 — — — — — — — — — Total $ 7,272 $ 1,359 $ 1,393 $ 1,298 $ 1,654 $ 730 $ 18,634 $ — $ 32,340 2025 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Our primary credit quality indicator for residential real estate and consumer loans is the individual loan’s past due status. The following tables display loans by payment status and year of origination as of the dates indicated: March 31, 2026 2026 2025 2024 2023 2022 Prior Revolving Loans Revolving Loans Converted to Term Total Residential real estate: Senior lien Current $ 16,893 $ 74,061 $ 52,807 $ 33,821 $ 40,765 $ 153,614 $ — $ 3,759 $ 375,720 Past due 30-89 days — 440 105 720 523 3,192 — — 4,980 Past due 90 or more days — — — — — — — — — Nonaccrual — — 85 — — 82 — — 167 Total $ 16,893 $ 74,501 $ 52,997 $ 34,541 $ 41,288 $ 156,888 $ — $ 3,759 $ 380,867 2026 year-to-date gross charge-offs $ — $ — $ 1 $ — $ — $ — $ — $ — $ 1 Residential real estate: Junior lien Current $ 517 $ 4,578 $ 3,163 $ 1,972 $ 483 $ 308 $ — $ — $ 11,021 Past due 30-89 days — — — — — — — — — Past due 90 or more days — — — — — — — — — Nonaccrual — — — — — — — — — Total $ 517 $ 4,578 $ 3,163 $ 1,972 $ 483 $ 308 $ — $ — $ 11,021 2026 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate: Home equity lines of credit Current $ — $ — $ — $ — $ — $ — $ 46,445 $ — $ 46,445 Past due 30-89 days — — — — — — — — — Past due 90 or more days — — — — — — — — — Nonaccrual — — — — — — — — — Total $ — $ — $ — $ — $ — $ — $ 46,445 $ — $ 46,445 2026 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Secured - direct Current $ 2,878 $ 6,500 $ 5,622 $ 4,805 $ 3,585 $ 4,300 $ — $ — $ 27,690 Past due 30-89 days — — 8 — — — — — 8 Past due 90 or more days — — — — — — — — — Nonaccrual — — — — — — — — — Total $ 2,878 $ 6,500 $ 5,630 $ 4,805 $ 3,585 $ 4,300 $ — $ — $ 27,698 2026 year-to-date gross charge-offs $ — $ — $ 23 $ — $ — $ — $ — $ — $ 23 21 Table of Contents March 31, 2026 2026 2025 2024 2023 2022 Prior Revolving Loans Revolving Loans Converted to Term Total Consumer: Secured - indirect Current $ 765 $ 3,946 $ 4,176 $ 12,918 $ 4,449 $ 8,023 $ — $ — $ 34,277 Past due 30-89 days — 86 — 111 — 50 — — 247 Past due 90 or more days — — — — — — — — — Nonaccrual — — — — — — — — — Total $ 765 $ 4,032 $ 4,176 $ 13,029 $ 4,449 $ 8,073 $ — $ — $ 34,524 2026 year-to-date gross charge-offs $ — $ — $ — $ 50 $ — $ 16 $ — $ — $ 66 Consumer: Unsecured Current $ 480 $ 1,356 $ 510 $ 99 $ 28 $ 2 $ 837 $ — $ 3,312 Past due 30-89 days — 6 4 — — — — — 10 Past due 90 or more days — — — — — — — — — Nonaccrual — — — — — — — — — Total $ 480 $ 1,362 $ 514 $ 99 $ 28 $ 2 $ 837 $ — $ 3,322 2026 year-to-date gross charge-offs $ 83 $ 14 $ 2 $ — $ — $ 1 $ 3 $ — $ 103 December 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving Loans Converted to Term Total Residential real estate: Senior lien Current $ 72,854 $ 43,102 $ 35,251 $ 42,022 $ 65,769 $ 93,563 $ — $ 14,223 $ 366,784 Past due 30-89 days 112 284 633 774 830 2,500 — — 5,133 Past due 90 or more days — — — — — — — — — Nonaccrual — — — — 179 191 — — 370 Total $ 72,966 $ 43,386 $ 35,884 $ 42,796 $ 66,778 $ 96,254 $ — $ 14,223 $ 372,287 2025 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ 1 $ — $ — $ 1 Residential real estate: Junior lien Current $ 4,786 $ 3,252 $ 2,075 $ 507 $ 67 $ 271 $ — $ — $ 10,958 Past due 30-89 days — 12 — — — — — — 12 Past due 90 or more days — — — — — — — — — Nonaccrual — — — — — — — — — Total $ 4,786 $ 3,264 $ 2,075 $ 507 $ 67 $ 271 $ — $ — $ 10,970 2025 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate: Home equity lines of credit Current $ — $ — $ — $ — $ — $ — $ 44,467 $ 41 $ 44,508 Past due 30-89 days — — — — — — 115 — 115 Past due 90 or more days — — — — — — — — — Nonaccrual — — — — — — — — — Total $ — $ — $ — $ — $ — $ — $ 44,582 $ 41 $ 44,623 2025 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 22 Table of Contents December 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving Loans Converted to Term Total Consumer: Secured - direct Current $ 7,870 $ 6,374 $ 5,501 $ 4,088 $ 2,238 $ 2,556 $ — $ — $ 28,627 Past due 30-89 days — — 11 9 — 1 — — 21 Past due 90 or more days — — — — — — — — — Nonaccrual — — — — — — — — — Total $ 7,870 $ 6,374 $ 5,512 $ 4,097 $ 2,238 $ 2,557 $ — $ — $ 28,648 2025 year-to-date gross charge-offs $ — $ 1 $ 19 $ 36 $ — $ 12 $ — $ — $ 68 Consumer: Secured - indirect Current $ 4,327 $ 4,457 $ 14,532 $ 5,133 $ 3,609 $ 5,084 $ — $ — $ 37,142 Past due 30-89 days — 82 198 — — 34 — — 314 Past due 90 or more days — — — — — — — — — Nonaccrual — — — — — — — — — Total $ 4,327 $ 4,539 $ 14,730 $ 5,133 $ 3,609 $ 5,118 $ — $ — $ 37,456 2025 year-to-date gross charge-offs $ — $ — $ — $ — $ — $ 13 $ — $ — $ 13 Consumer: Unsecured Current $ 1,686 $ 689 $ 171 $ 34 $ 5 $ — $ 796 $ — $ 3,381 Past due 30-89 days 5 — — — — — 1 — 6 Past due 90 or more days — — — — — — — — — Nonaccrual — — — — — — — — — Total $ 1,691 $ 689 $ 171 $ 34 $ 5 $ — $ 797 $ — $ 3,387 2025 year-to-date gross charge-offs $ 80 $ 1 $ 9 $ — $ — $ — $ — $ — $ 90 23 Table of Contents Loan Modifications A loan modification includes terms outside of normal lending practices to a borrower experiencing financial difficulty. Typical modifications granted include, but are not limited to: • Agreeing to interest rates below prevailing market rates for debt with similar risk characteristics. • Extending the maturity date or amortization period beyond typical lending guidelines for loans with similar risk characteristics. • Agreeing to an interest-only payment structure, delaying principal payments, or delaying payments. • Forgiving principal. To determine if a borrower is experiencing financial difficulty, factors we consider include: • The borrower is currently in default on any debt. • The borrower would likely default on any debt if the concession is not granted. • The borrower’s cash flow is insufficient to service all debt if the concession is not granted. • The borrower has declared, or is in the process of declaring, bankruptcy. • The borrower is unlikely to continue as a going concern (if the entity is a business). The following is a summary of the amortized cost basis of loan modifications granted to borrowers experiencing financial difficulty for the periods indicated: Three Months Ended March 31, 2026 Interest Rate Reduction Other-Than-Insignificant Payment Delay Term Extension Other-Than-Insignificant Payment Delay and Term Extension Amortized Cost Basis % of Total Class of Financial Receivable Amortized Cost Basis % of Total Class of Financial Receivable Amortized Cost Basis % of Total Class of Financial Receivable Amortized Cost Basis % of Total Class of Financial Receivable Commercial and industrial Secured $ — 0.00 % $ — 0.00 % $ 10 0.01 % $ — 0.00 % Commercial real estate Commercial mortgage owner occupied 154 0.06 % 2,044 0.85 % — 0.00 % — 0.00 % Agricultural Agricultural other — 0.00 % — 0.00 % — 0.00 % 2,700 9.50 % Total $ 154 $ 2,044 $ 10 $ 2,700 Three Months Ended March 31, 2025 Term Extension Amortized Cost Basis % of Total Class of Financial Receivable Commercial and industrial Secured $ 532 0.24 % Commercial real estate Commercial mortgage owner occupied 1,524 0.83 % Total $ 2,056 We do not modify any loans by forgiving principal or accrued interest. We had committed to advance $ 0 and $ 221 in additional funds to be disbursed in connection with modified loans as of March 31, 2026 and December 31, 2025, respectively, as displayed in the tables above. 24 Table of Contents The following is a summary of the financial effect of the modifications granted to borrowers experiencing financial difficulty for the periods indicated: Three Months Ended March 31 2026 2025 Weighted-Average Interest Rate Reduction Payment Delay Term Weighted-Average Term Extension (Years) Weighted-Average Term Extension (Years) Commercial and industrial Secured N/A N/A 3.25 4.4 Commercial real estate Commercial mortgage owner occupied 4.00 % 6 months N/A 15.0 Agricultural Agricultural other N/A 5 months 0.47 N/A We closely monitor the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of our modification efforts. The following tables summarize the amortized cost basis of loans that have been modified within the 12 months prior to the dates indicated: March 31, 2026 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Commercial and industrial Secured $ 2,691 $ — $ — $ 433 $ 3,124 Commercial real estate Commercial mortgage owner occupied 2,044 — 154 — 2,198 Agricultural Agricultural mortgage 1,389 — — — 1,389 Agricultural other 3,476 — — — 3,476 Residential real estate Senior lien — — — 85 85 Total $ 9,600 $ — $ 154 $ 518 $ 10,272 March 31, 2025 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Commercial and industrial Secured $ 2,168 $ — $ — $ — $ 2,168 Commercial real estate Commercial mortgage owner occupied 2,872 — — — 2,872 Agricultural Agricultural mortgage 1,584 — — — 1,584 Agricultural other 924 — — — 924 Total $ 7,548 $ — $ — $ — $ 7,548 25 Table of Contents The following table summarizes the amortized cost basis of loans that defaulted in the three-month period ended March 31, 2026 and were modified within 12 months prior to the default date. There were none that defaulted in the three-month period ended March 31, 2025 and were modified within 12 months prior to the default date. March 31, 2026 Other-Than-Insignificant Payment Delay Other-Than-Insignificant Payment Delay and Term Extension Commercial and industrial Secured $ — $ 433 Residential real estate Senior lien 85 — Total $ 85 $ 433 ACL - Loans The credit quality of our loan portfolio is continuously monitored and is reflected within the ACL for loans. The ACL is an estimate of expected losses inherent within our loan portfolio. The ACL is adjusted by a credit loss expense, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries. The ACL is evaluated on a regular basis for appropriateness. Our periodic review of the collectability of a loan considers historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The primary factors behind the determination of the level of the ACL are specific allocations for loans individually evaluated, historical loss percentages, delinquency status, and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense in those future periods. The methodology for estimating the amount of expected credit losses reported in the ACL is described within Note 3, Loans and ACL, in the consolidated financial statements included within the 2025 Annual Report on Form 10-K. A summary of activity in the ACL for loans, excluding unfunded commitments, by portfolio segment and the recorded investment in loans by segments follows for the periods indicated: Three Months Ended March 31, 2026 Commercial and Industrial Commercial Real Estate Agricultural Residential Real Estate Consumer Total December 31, 2025 $ 1,136 $ 5,949 $ 327 $ 5,059 $ 1,256 $ 13,727 Charge-offs ( 3 ) ( 154 ) — ( 1 ) ( 192 ) ( 350 ) Recoveries 4 21 — 15 57 97 Provision for (reversal of) credit losses 9 406 ( 27 ) 75 77 540 March 31, 2026 $ 1,146 $ 6,222 $ 300 $ 5,148 $ 1,198 $ 14,014 Three Months Ended March 31, 2025 Commercial and Industrial Commercial Real Estate Agricultural Residential Real Estate Consumer Total December 31, 2024 $ 1,316 $ 5,171 $ 287 $ 4,521 $ 1,600 $ 12,895 Charge-offs — — — ( 1 ) ( 171 ) ( 172 ) Recoveries 80 2 — 14 128 224 Provision for (reversal of) credit losses ( 157 ) 1 ( 21 ) 66 ( 101 ) ( 212 ) March 31, 2025 $ 1,239 $ 5,174 $ 266 $ 4,600 $ 1,456 $ 12,735 26 Table of Contents The following table illustrates the components of the ACL as of the dates indicated: March 31 2026 December 31 2025 September 30 2025 June 30 2025 March 31 2025 ACL Individually evaluated $ 227 $ 259 $ — $ — $ — Collectively evaluated 13,787 13,468 13,149 12,977 12,735 Total $ 14,014 $ 13,727 $ 13,149 $ 12,977 $ 12,735 ACL to loans Individually evaluated 0.01 % 0.02 % 0.00 % 0.00 % 0.00 % Collectively evaluated 0.89 % 0.87 % 0.92 % 0.93 % 0.93 % Total 0.90 % 0.89 % 0.92 % 0.93 % 0.93 % The following table presents loans that were evaluated for expected credit losses on an individual basis and the related specific allocations, by loan segment as of the dates indicated: March 31, 2026 December 31, 2025 Loan Balance Specific Allocation Loan Balance Specific Allocation Commercial and industrial $ 433 $ 84 $ 442 $ 95 Commercial real estate 3,743 143 3,766 164 Agricultural — — — — Residential real estate 167 — 370 — Consumer — — — — Total $ 4,343 $ 227 $ 4,578 $ 259 We have designated loans classified as collateral dependent for which we apply the practical expedient to measure the ACL based on the fair value of the collateral less cost to sell when the repayment is expected to be provided substantially by the sale or operation of the collateral and the borrower is experiencing financial difficulty. The fair value of the collateral is based on appraisals, which may be adjusted due to their age, and the type, location, and condition of the property or area or general market conditions to reflect the expected change in value between the effective date of the appraisal and the measurement date. Appraisals are updated every one to two years depending on the type of loan and the total exposure of the borrower. Loans evaluated for expected credit losses on an individual basis as of March 31, 2026 include $ 4,343 in collateral dependent loans secured by commercial real estate, commercial equipment, and residential real estate of $ 3,743 , $ 433 , and $ 167 , respectively. 27 Table of Contents Note 4 – Borrowed Funds Short-term borrowings Short-term borrowings include securities sold under repurchase agreements without stated maturity dates, federal funds purchased, and FRB Discount Window advances, which all generally mature within one to three days from the transaction date. A summary of short-term borrowed funds without stated maturity dates was as follows for the periods indicated: Three Months Ended March 31 2026 2025 Maximum Month End Balance Average Balance Weighted Average Interest Rate During the Period Maximum Month End Balance Average Balance Weighted Average Interest Rate During the Period Securities sold under agreements to repurchase without stated maturity dates $ 115,582 $ 86,658 3.41 % $ 47,310 $ 43,513 3.21 % Federal funds purchased — 2 4.71 % — 21 5.43 % FRB Discount Window 3,700 225 2.41 % — 29 4.51 % Securities sold under agreements to repurchase are classified as secured borrowings and are reflected at the amount of cash received in connection with the transaction. The securities underlying the agreements have a carrying value and a fair value of $ 139,962 and $ 87,752 as of March 31, 2026 and December 31, 2025, respectively. Such securities remain under our control. We may be required to provide additional collateral based on changes to the fair value of underlying securities. Securities sold under repurchase agreements without stated maturity dates were as follows as of the dates indicated: March 31, 2026 December 31, 2025 Amount Rate Amount Rate Securities sold under agreements to repurchase without stated maturity dates $ 113,530 3.50 % $ 68,000 3.45 % We had pledged AFS securities and 1-4 family residential real estate loans in the following amounts as of the dates indicated: March 31 2026 December 31 2025 Pledged to secure borrowed funds $ 306,092 $ 424,163 Pledged to secure repurchase agreements 139,962 87,752 Pledged for public deposits and for other purposes necessary or required by law 69,632 69,337 Total $ 515,686 $ 581,252 AFS securities pledged to repurchase agreements consisted of the following as of the dates indicated: March 31 2026 December 31 2025 U.S. Treasury $ 59,387 $ 78,992 Agency mortgage-backed securities 6,569 6,928 Agency collateralized mortgage obligations 74,006 1,832 Total $ 139,962 $ 87,752 AFS securities pledged to repurchase agreements are monitored to ensure the appropriate level is collateralized. In the event of maturities, calls, significant principal repayments, or significant decline in market values, we have an adequate level of AFS securities to pledge to satisfy collateral requirements. As of March 31, 2026, we had the ability to borrow up to an additional $ 397,670 without pledging additional collateral. 28 Table of Contents FHLB advances FHLB advances are collateralized by a blanket lien on all qualified 1-4 family residential real estate loans, specific AFS securities, and FHLB stock. The following table lists the maturities and weighted average interest rates of FHLB advances as of the dates indicated: March 31, 2026 December 31, 2025 Amount Rate Amount Rate Fixed rate due 2026 $ — N/A $ 45,000 3.92 % Subordinated notes We have $ 30,000 in aggregate principal amount of 3.25 % Fixed-to-Floating Rate Subordinated Notes due 2031 (the "Notes"). The Notes initially bear a fixed interest rate of 3.25 % until June 15, 2026, after which time and until maturity on June 15, 2031, the interest rate will reset quarterly to an annual floating rate equal to the then-current 3-month SOFR plus 256 basis points. The Notes are redeemable by us at any time at our option, in whole or in part, on or after June 15, 2026. The Notes are not subject to redemption at the option of the holders. Additionally, the Notes are intended to qualify for Tier 2 capital treatment, subject to regulatory limitations. The following table summarizes our outstanding subordinated notes as of the dates indicated: March 31, 2026 December 31, 2025 Amount Rate Amount Rate Fixed rate at 3.25 % to floating, due 2031 $ 30,000 3.25 % $ 30,000 3.25 % Unamortized issuance costs ( 463 ) ( 486 ) Total subordinated debt, net $ 29,537 $ 29,514 Note 5 – Computation of Earnings Per Common Share Basic earnings per common share represents income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued relate solely to outstanding shares in the Directors Plan, grant awards under the RSP, and purchase options under the ESPP. Earnings per common share have been computed based on the following for the periods indicated: Three Months Ended March 31 2026 2025 Average number of common shares outstanding for basic calculation 7,325,789 7,419,739 Dilutive effect of stock compensation, awards, and options 3,269 12,423 Average number of common shares outstanding used to calculate diluted earnings per common share 7,329,058 7,432,162 Net income $ 4,992 $ 3,949 Earnings per common share Basic $ 0.68 $ 0.53 Diluted 0.68 0.53 29 Table of Contents Note 6 – Capital Ratios and Shareholders' Equity As of March 31, 2026 and December 31, 2025, the most recent notifications from the FRB and the FDIC categorized us as “well capitalized” under the FDIC's regulatory framework for prompt corrective action and the Basel III capital guidelines. To be categorized as “well capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1, and Tier 1 leverage ratios as set forth in the following tables. The minimum requirements presented below include the minimum required capital levels based on the Basel III capital guidelines. Capital requirements to be considered “well capitalized” are based upon the FDIC's prompt corrective action regulations, as amended to reflect the changes under the Basel III capital guidelines. There were no conditions or events since the notifications that we believe have changed our categorizations. The following tables set forth these capital requirements and our ratios, both on a bank-only and on a consolidated basis, as of the dates indicated: March 31, 2026 Actual Minimum Capital Required Plus Capital Conservation Buffer Minimum Capital Required To Be Considered Well Capitalized (1) Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 capital to risk weighted assets Isabella Bank $ 187,870 11.36 % $ 115,800 7.00 % $ 107,528 6.50 % Consolidated 194,281 11.71 % 116,144 7.00 % N/A N/A Tier 1 capital to risk weighted assets Isabella Bank 187,870 11.36 % 140,614 8.50 % 132,342 8.00 % Consolidated 194,281 11.71 % 141,032 8.50 % N/A N/A Total capital to risk weighted assets Isabella Bank 202,442 12.24 % 173,699 10.50 % 165,428 10.00 % Consolidated 232,482 14.01 % 174,216 10.50 % N/A N/A Tier 1 capital to average assets Isabella Bank 187,870 8.62 % 87,188 4.00 % 108,985 5.00 % Consolidated 194,281 8.89 % 87,410 4.00 % N/A N/A December 31, 2025 Actual Minimum Capital Required Plus Capital Conservation Buffer Minimum Capital Required To Be Considered Well Capitalized (1) Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 capital to risk weighted assets Isabella Bank $ 182,116 11.20 % $ 113,783 7.00 % $ 105,656 6.50 % Consolidated 191,137 11.73 % 114,114 7.00 % N/A N/A Tier 1 capital to risk weighted assets Isabella Bank 182,116 11.20 % 138,165 8.50 % 130,038 8.00 % Consolidated 191,137 11.73 % 138,568 8.50 % N/A N/A Total capital to risk weighted assets Isabella Bank 196,336 12.08 % 170,675 10.50 % 162,547 10.00 % Consolidated 234,871 14.41 % 171,172 10.50 % N/A N/A Tier 1 capital to average assets Isabella Bank 182,116 8.45 % 86,170 4.00 % 107,713 5.00 % Consolidated 191,137 8.84 % 86,476 4.00 % N/A N/A (1) “Well-capitalized” minimum Common Equity Tier 1 to Risk-Weighted and Leverage Ratio are not formally defined under applicable regulations for bank holding companies. Total capital includes Tier 1 capital and Tier 2 capital. Tier 2 capital includes a permissible portion of the allowances for credit losses and outstanding subordinated debt, net of unamortized issuance costs. There are no significant regulatory constraints placed on our capital. As of March 31, 2026, the Bank exceeded all minimum Basel III risk-based capital requirements with the capital conservation buffer. 30 Table of Contents State banking regulations place certain restrictions on dividends paid by banks to their shareholders. Dividends paid by the Corporation’s bank subsidiary would be prohibited if the effect thereof would cause the bank subsidiary’s capital to be reduced below applicable minimum capital requirements. The following table summarizes the changes in AOCI by component for the periods indicated: Three Months Ended March 31 2026 2025 Unrealized Gains (Losses) on AFS Securities Defined Benefit Pension Plan Total Unrealized Gains (Losses) on AFS Securities Defined Benefit Pension Plan Total Balance, December 31 $ ( 7,985 ) $ ( 38 ) $ ( 8,023 ) $ ( 20,958 ) $ ( 397 ) $ ( 21,355 ) OCI before reclassifications ( 724 ) — ( 724 ) 5,014 — 5,014 Tax effect 145 — 145 ( 1,098 ) — ( 1,098 ) OCI, net of tax ( 579 ) — ( 579 ) 3,916 — 3,916 Balance, March 31 $ ( 8,564 ) $ ( 38 ) $ ( 8,602 ) $ ( 17,042 ) $ ( 397 ) $ ( 17,439 ) Included in OCI for the three-month periods ended March 31, 2026 and 2025 are changes in unrealized gains and losses related to certain auction rate money market preferred stocks. These investments, for federal income tax purposes, have no deferred federal income taxes related to unrealized gains or losses given the nature of the investments. A summary of the components of unrealized gains on AFS securities included in OCI follows for the periods indicated: Three Months Ended March 31 2026 2025 Auction Rate Money Market Preferred All Other AFS Securities Total Auction Rate Money Market Preferred All Other AFS Securities Total Unrealized gains (losses) arising during the period $ ( 33 ) $ ( 691 ) $ ( 724 ) $ ( 215 ) $ 5,229 $ 5,014 Tax effect — 145 145 — ( 1,098 ) ( 1,098 ) Unrealized gains (losses), net of tax $ ( 33 ) $ ( 546 ) $ ( 579 ) $ ( 215 ) $ 4,131 $ 3,916 31 Table of Contents Note 7 – Fair Value Under fair value measurement and disclosure authoritative guidance, we group assets and liabilities measured at fair value into three levels, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine fair value, based on the prioritization of inputs in the valuation techniques. These levels are: Level 1: Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2: Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3: Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. Transfers between measurement levels are recognized at the end of reporting periods. Fair value measurement requires the use of an exit price notion which may differ from entrance pricing. Generally, we believe our assets and liabilities classified as Level 1 or Level 2 approximate an exit price notion. Following is a description of the valuation methodologies, key inputs, and an indication of the level of the fair value hierarchy in which the assets or liabilities are classified. AFS securities: AFS securities are recorded at fair value on a recurring basis. Level 1 fair value measurement is based upon quoted prices for identical instruments. Level 2 fair value measurement is based upon quoted prices for similar instruments. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss and liquidity assumptions. The values for Level 1 and Level 2 investment securities are generally obtained from an independent third party. On a quarterly basis, we compare the values provided to alternative pricing sources. Loans held for investment: We do not record loans at fair value on a recurring basis. However, some loans are individually evaluated for ACL purposes, and a specific ACL may be established. To measure reserve, the fair value of the loan is estimated using the fair value of the collateral, less costs to sell if foreclosure is probable, or the present value of expected future cash flows discounted at the loan’s effective interest rate. Loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. We review the net realizable values of the underlying collateral for collateral dependent loans on at least a quarterly basis for all loan types. To determine the collateral value, we utilize independent appraisals, broker price opinions, or internal evaluations. We review these valuations to determine whether an additional discount should be applied given the age of market information that may have been considered as well as other factors such as costs to sell an asset if it is determined that the collateral will be liquidated in connection with the ultimate settlement of the loan. We use these valuations to determine if any specific reserves or charge-offs are necessary. We may obtain new valuations in certain circumstances, including when there has been significant deterioration in the condition of the collateral, if the foreclosure process has begun, or if the existing valuation is deemed to be outdated. 32 Table of Contents The following tables list the quantitative information about loans measured at fair value on a nonrecurring basis as of the dates indicated: March 31, 2026 Valuation Technique Fair Value Unobservable Input Actual Range Weighted Average Collateral Dependent Loans Discount applied to collateral: Discounted value $ 4,116 Real Estate 20 % - 25 % 20 % Liquor license 75 % 75 % Furniture, fixtures & equipment 40 % 40 % December 31, 2025 Valuation Technique Fair Value Unobservable Input Actual Range Weighted Average Collateral Dependent Loans Discount applied to collateral: Discounted value $ 4,319 Real Estate 20 % - 25 % 20 % Liquor license 75 % 75 % Furniture, fixtures & equipment 40 % 40 % Collateral discount rates may have ranges to accommodate differences in the age of the independent appraisal, broker price opinion, or internal evaluation. OMSR: OMSR (which are included in other assets) are subject to impairment testing. To test for impairment, we utilize a discounted cash flow analysis using interest rates and prepayment speed assumptions currently quoted for comparable instruments and discount rates. If the valuation model reflects a value less than the carrying value, OMSR are adjusted to fair value through a valuation allowance as determined by the model. As such, we classify OMSR subject to nonrecurring fair value adjustments as Level 3. The following table lists the quantitative information about OMSR fair value measurement as of the dates indicated: March 31, 2026 Valuation Technique Fair Value Unobservable Input Rate Discounted cash flow $ 2,207 Constant prepayment rate 7 % Discount rate 11 % December 31, 2025 Valuation Technique Fair Value Unobservable Input Rate Discounted cash flow $ 2,090 Constant prepayment rate 7 % Discount rate 11 % The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Although we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement. Estimated Fair Values of Financial Instruments Not Recorded at Fair Value in their Entirety on a Recurring Basis Disclosure of the estimated fair values of financial instruments, which differ from carrying values, often requires the use of estimates. In cases where quoted market values in an active market are not available, we use present value techniques and other valuation methods to estimate the fair values of our financial instruments. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used. 33 Table of Contents The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis were as follows as of the dates indicated: March 31, 2026 Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 ASSETS Cash and cash equivalents $ 50,105 $ 50,105 $ 50,105 $ — $ — Mortgage loans HFS 360 366 — 366 — Loans, net 1,544,927 1,509,640 — — 1,509,640 FHLB stock (1) 5,600 N/A — — — Accrued interest receivable 9,486 9,486 9,486 — — Equity securities without readily determinable fair values (1) 3,086 N/A — — — LIABILITIES Deposits without stated maturities 1,453,446 1,453,446 1,453,446 — — Deposits with stated maturities 406,399 404,939 — 404,939 — Short-term borrowings 113,530 109,883 — 109,883 — FHLB advances — — — — — Subordinated debt, net of unamortized issuance costs 29,537 29,452 — 29,452 — Accrued interest payable 942 942 942 — — December 31, 2025 Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 ASSETS Cash and cash equivalents $ 26,041 $ 26,041 $ 26,041 $ — $ — Mortgage loans HFS 423 429 — 429 — Loans, net 1,522,637 1,488,282 — — 1,488,282 FHLB stock (1) 5,600 N/A — — — Accrued interest receivable 8,397 8,397 8,397 — — Equity securities without readily determinable fair values (1) 3,086 N/A — — — LIABILITIES Deposits without stated maturities 1,409,589 1,409,589 1,409,589 — — Deposits with stated maturities 410,065 409,191 — 409,191 — Short-term borrowings 68,000 66,355 — 66,355 — FHLB advances 45,000 45,004 — 45,004 — Subordinated debt, net of unamortized issuance costs 29,514 29,095 — 29,095 — Accrued interest payable 1,059 1,059 1,059 — — (1) Due to the characteristics of equity securities without readily determinable fair values, they are not disclosed under a specific fair value hierarchy. When an impairment or write-down related to these securities is recorded, such amount would be classified as a nonrecurring Level 3 fair value adjustment. 34 Table of Contents Financial Instruments Recorded at Fair Value The table below presents the recorded amount of assets and liabilities measured at fair value on the dates indicated: March 31, 2026 December 31, 2025 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Recurring items AFS securities U.S. Treasury $ 158,363 $ — $ 158,363 $ — $ 197,534 $ — $ 197,534 $ — States and political subdivisions 66,334 — 66,334 — 69,205 — 69,205 — Auction rate money market preferred 2,380 — 2,380 — 2,413 — 2,413 — Agency mortgage-backed securities 20,913 — 20,913 — 22,252 — 22,252 — Agency collateralized mortgage obligations 238,816 — 238,816 — 200,466 — 200,466 — Corporate 5,938 — 5,938 — 5,921 — 5,921 — Total AFS securities 492,744 — 492,744 — 497,791 — 497,791 — Nonrecurring items Collateral dependent loans (net of ACL) 4,116 — — 4,116 4,319 — — 4,319 Foreclosed assets 573 — — 573 938 — — 938 Total $ 497,433 $ — $ 492,744 $ 4,689 $ 503,048 $ — $ 497,791 $ 5,257 Percent of assets and liabilities measured at fair value 0.00 % 99.06 % 0.94 % 0.00 % 98.95 % 1.05 % We recorded impairments related to foreclosed assets of $ 0 and $ 63 for the three month periods ended March 31, 2026 and 2025, respectively. We had no other assets or liabilities recorded at fair value with changes in fair value recognized through earnings, on a recurring basis or nonrecurring basis, as of March 31, 2026. Further, we had no unrealized gains and losses included in OCI for recurring Level 3 fair value measurements held at the end of the reporting period. 35 Table of Contents