What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-06 compared with 2026-05-08 · 650 added, 331 removed, 1875 unchanged (34% of the section changed)

3 unchanged sentences

(Amounts in thousands, except share data)

March 31, 2026

June 30, 2026

December 31, 2025

51 unchanged sentences

6.5 % Series A Non-Cumulative Perpetual Convertible Preferred Stock;

32,500 shares ($ 1,000 liquidation preference) issued and outstanding at March 31, 2026 and December 31, 2025

32,500 shares ($ 1,000 liquidation preference) issued and outstanding at June 30, 2026 and December 31, 2025

30,353 30,353

1 unchanged sentence

40,000,000 shares authorized;

13,741,225 and 9,798,948 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

13,777,385 and 9,798,948 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively

246,033 146,133

11 unchanged sentences

(Amounts in thousands, except per share data)

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

INTEREST INCOME

Interest and fees on loans

$ 47,954 $ 30,552

Interest on investment securities:

1 unchanged sentence

Total interest income

53,204 34,434

INTEREST EXPENSE

Interest on deposits

18,710 14,640

Interest on borrowings

Total interest expense

20,544 16,089

Net interest income

32,660 18,345

Reversal of credit losses

( 2,108 ) ( 3,596 )

Net interest income after reversal of credit losses

34,768 21,941

Provision for (reversal of) credit losses

Net interest income after provision for (reversal of) credit losses

NONINTEREST INCOME

Service charges on deposit accounts

Loss on sale or disposition of fixed assets, net

Loss on sale of other real estate owned, net

Gain on call or sale of investment securities, net

Loss on sale or disposition of bank premises and equipment, net

Gain (loss) on sale of other real estate owned, net

Gain on sale of loans

12 unchanged sentences

Total noninterest expense

22,839 16,238

Income before income tax expense

2 unchanged sentences

Net income available to common shareholders

$ 11,496 $ 6,293

EARNINGS PER COMMON SHARE

Basic earnings per common share

$ 0.84 $ 0.64

Diluted earnings per common share

3 unchanged sentences

(Amounts in thousands)

Three months ended March 31,

$ 12,024 $ 6,293

Three months ended June 30,

Six months ended June 30,

Other comprehensive (loss) income:

1 unchanged sentence

Unrealized (loss) gain, available for sale, net of tax (benefit) expense of ($188), $339, ($565) and $1,821, respectively

( 1,388 ) 5,478

Reclassification of realized gain, available for sale, net of tax expense of $3, $0, $3 and $0, respectively

Total other comprehensive (loss) income

( 1,388 ) 5,478

Total comprehensive income

$ 10,636 $ 11,771

See accompanying notes to the consolidated financial statements.

6 unchanged sentences

Total Stockholders’ Equity

Three months ended March 31, 2026:

Three months ended June 30, 2026:

Balance, March 31, 2026

$ 30,353 $ 13,741 $ 247,156 $ 160,494 $ ( 37,110 ) $ 414,634

Common stock issued in acquisition of Wichita Falls Bancshares, Inc., net of issuance costs

— — ( 24 ) — — ( 24 )

Surrendered shares

— ( 30 ) ( 787 ) — — ( 817 )

Preferred stock dividends declared, $ 16.25 per share

— — — ( 528 ) — ( 528 )

Common stock dividends declared, $ 0.12 per share

— — — ( 1,654 ) — ( 1,654 )

Stock-based compensation

— 94 423 — — 517

Shares repurchased

— ( 28 ) ( 735 ) — — ( 763 )

— — — 9,472 — 9,472

Other comprehensive loss, net

— — — — ( 705 ) ( 705 )

Balance, June 30, 2026

$ 30,353 $ 13,777 $ 246,033 $ 167,784 $ ( 37,815 ) $ 420,132

Retained Earnings

Accumulated Other Comprehensive (Loss) Income

Total Stockholders’ Equity

Three months ended June 30, 2025:

Balance, March 31, 2025

$ 9,821 $ 146,598 $ 138,197 $ ( 42,879 ) $ 251,737

Surrendered shares

( 24 ) ( 391 ) — — ( 415 )

Options exercised

Common stock dividends declared, $ 0.11 per share

— — ( 1,083 ) — ( 1,083 )

Stock-based compensation

75 439 — — 514

Shares repurchased

( 36 ) ( 598 ) — — ( 634 )

— — 4,494 — 4,494

Other comprehensive income, net

— — — 1,253 1,253

Balance, June 30, 2025

$ 9,840 $ 146,107 $ 141,608 $ ( 41,626 ) $ 255,929

See accompanying notes to the consolidated financial statements.

INVESTAR HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS ’ EQUITY, CONTINUED

(Amounts in thousands, except per share data)

Preferred Stock

Retained Earnings

Accumulated Other Comprehensive Loss

Total Stockholders’ Equity

Six months ended June 30, 2026:

Balance, December 31, 2025

17 unchanged sentences

— — — — ( 2,093 ) ( 2,093 )

Balance, March 31, 2026

Balance, June 30, 2026

$ 30,353 $ 13,777 $ 246,033 $ 167,784 $ ( 37,815 ) $ 420,132

2 unchanged sentences

Total Stockholders’ Equity

Three months ended March 31, 2025:

Six months ended June 30, 2025:

Balance, December 31, 2024

13 unchanged sentences

— — — 6,731 6,731

Balance, March 31, 2025

Balance, June 30, 2025

$ 9,840 $ 146,107 $ 141,608 $ ( 41,626 ) $ 255,929

3 unchanged sentences

(Amounts in thousands)

Three months ended March 31,

Six months ended June 30,

$ 21,496 $ 10,787

4 unchanged sentences

Net (accretion) amortization of purchase accounting adjustments

Provision for other real estate owned

Net accretion of securities

( 827 ) ( 200 )

Loss on sale or disposition of fixed assets, net

Loss on sale of other real estate owned, net

Gain on call or sale of investment securities, net

Loss on sale or disposition of bank premises and equipment, net

Loss (gain) on sale of other real estate owned, net

Gain on sale of loans

10 unchanged sentences

( 3,023 ) ( 585 )

( 1,773 ) 416

Accrued taxes and other liabilities

1,217 ( 923 )

Net cash provided by operating activities

Cash flows from investing activities:

Proceeds from sales of investment securities available for sale

Purchases of securities available for sale

Proceeds from sales of investment securities AFS

Purchases of securities AFS

( 225,270 ) ( 39,610 )

Proceeds from maturities, prepayments and calls of investment securities available for sale

Proceeds from maturities, prepayments and calls of investment securities held to maturity

Proceeds from maturities, prepayments and calls of investment securities AFS

183,375 23,777

Proceeds from maturities, prepayments and calls of investment securities HTM

Proceeds from redemption or sale of nonmarketable equity securities

5 unchanged sentences

Proceeds from sales of other real estate owned

Purchases of fixed assets

Purchases of bank premises and equipment

( 1,198 ) ( 431 )

1 unchanged sentence

( 102 ) ( 80 )

Distributions from investments

Distributions from other investments

Cash acquired from acquisition of Wichita Falls Bancshares, Inc., net of cash paid

4 unchanged sentences

(Amounts in thousands)

Six months ended June 30,

Cash flows from financing activities:

Net (decrease) increase in customer deposits

Net decrease in customer deposits

( 159,161 ) ( 7,752 )

Net increase in repurchase agreements

Net decrease in short-term FHLB advances

Net increase in short-term FHLB advances

Proceeds from long-term FHLB advances

6 unchanged sentences

( 2,310 ) ( 1,283 )

Advanced proceeds from preferred stock offering

Repayment of long-term debt

Net cash used in financing activities

Payments of stock issuance costs

Net cash (used in) provided by financing activities

( 148,752 ) 11,731

7 unchanged sentences

Transfer from loans to other real estate owned

$ 2,367 $ 951

Common stock dividends payable

5 unchanged sentences

Nature of Operations

The Company is a financial holding company, headquartered in Baton Rouge, Louisiana that provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, National Association, a national bank, primarily to meet the needs of individuals, professionals and small to me dium-sized businesses.

The Company’s primary markets are in south Louisiana, Texas and Alabama.

March 31, 2026

, the Company operated 20 full service branches located in Louisiana, ten full service branches located in Texas and six full service branches located in Alabama and ha d 431 full-time e quivalent employees.

June 30, 2026 , the Company operated

20 full service branches located in Louisiana,

ten full service branches located in Texas and

six full service branches located in Alabama and had

421 full-time equivalent employees.

Basis of Presentation

2 unchanged sentences

However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the financial statements have been included.

The results of operations for the three month period ended March 31, 2026 are not necessarily indicative of the results that may be expected for the entire fiscal year.

The results of operations for the three and six month periods ended June 30, 2026 are not necessarily indicative of the results that may be expected for the entire fiscal year.

These statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2025 , including the notes thereto, which were included as part of the Company’s Annual Report.

55 unchanged sentences

BUSINESS COMBINATIONS

On January 1, 2026, the Company completed the acquisition of WFB and its wholly-owned subsidiary, FNB, headquartered in Wichita Falls, Texas, with six additional branches serving the surrounding areas.

On January 1, 2026, the Company completed the acquisition of WFB and its wholly-owned subsidiary, FNB, headquartered in Wichita Falls, Texas, with seven branches (including the headquarters) serving the surrounding areas.

All of the issued and outstanding shares of WFB common stock were converted into aggregate merger consideration consisting of $ 7.2 million in cash and 3,955,272 shares of Company common stock for an aggregate transaction value of $ 112.9 million.

After fair value adjustments, the acquisition added $ 1.15 billion in total assets, including $ 950.2 million in net loans, and $ 1.02 billion in deposits.

After fair value adjustments, including total adjustments of ($ 0.2 million) to the fair value of total assets, recorded in the three months ended June 30, 2026, the acquisition added $ 1.15 billion in total assets, including $ 950.2 million in net loans, and $ 1.02 billion in deposits.

As consideration paid was in excess of the net fair value of acquired assets, the Company recorded $ 18.2 million of goodwill, none of which is anticipated to be deductible for tax purposes.

Goodwill resulted from a combination of synergies and cost savings, and further expansion into Texas.

The table below shows the allocation of the consideration paid for WFB’s common equity to the acquired identifiable assets and liabilities assumed and the goodwill generated from the transaction (dollars in thousands).

The fair values listed below are subject to refinement for up to one year after the closing date of the acquisition as additional information becomes available.

31 unchanged sentences

Acquisition Expense

Acquisition related costs of $ 1.7 million and $ 0.2 million are included in acquisition expenses in the accompanying consolidated statements of income for the three months ended March 31, 2026 and 2025 , respectively.

Acquisition related costs of $ 2.6 million and $ 4.3 million are included in “Acquisition expense” in the accompanying consolidated statements of income for the three and six months ended June 30, 2026 , respectively, and $ 0.2 million and $ 0.3 million for the three and six months ended June 30, 2025 , respectively.

These costs include system conversion and integrating operations charges and legal and consulting expenses.

4 unchanged sentences

Diluted earnings per common share is computed by using net income available to common shareholders plus dividends declared on dilutive convertible preferred stock, divided by the sum of 1 ) the weighted average number of shares determined for the basic earnings per common share computation, 2 ) the dilutive effect of stock-based compensation using the treasury stock method, and 3 ) the dilutive effect of convertible preferred stock using the if-converted method.

The following is a summary of the information used in the computation of basic and diluted earnings per common share for the three months ended March 31, 2026 and 2025 (in thousands, except share and per share data).

Three months ended March 31,

The following is a summary of the information used in the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2026 and 2025 (in thousands, except share and per share data).

Three months ended June 30,

Six months ended June 30,

$ 9,472 $ 4,494 $ 21,496 $ 10,787

preferred stock dividends declared

528 — 1,056 —

Net income available to common shareholders

5 unchanged sentences

Dilutive effect of Series A Preferred Stock

1,547,603 — 1,547,603 —

Weighted average diluted shares outstanding

5 unchanged sentences

The weighted average shares that have an antidilutive effect in the calculation of diluted earnings per common share and have been excluded from the computations above are shown below.

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

Stock options

— 4,206 — 4,167

— 265 315 446

INVESTAR HOLDING CORPORATION

4 unchanged sentences

Amortized Cost

March 31, 2026

Gross Unrealized Gains

Gross Unrealized Losses

June 30, 2026

Obligations of the U.S.

12 unchanged sentences

Amortized Cost

Gross Unrealized Gains

Gross Unrealized Losses

December 31, 2025

13 unchanged sentences

The Company calculates realized gains and losses on sales of debt securities under the specific identification method.

Shortly after the acquisition of WFB, substantially all of the securities from the acquired portfolio were sold at carrying value, resulting in net proceeds of approximately $ 50.5 million.

Shortly after the acquisition of WFB on January 1, 2026, substantially all of the securities from the acquired portfolio were sold at carrying value, resulting in net proceeds of approximately $ 50.5 million.

Procee ds from sales of investment securities classified as AFS and gross gains and losses are summarized below for the periods presented (dollars in thousands).

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

Proceeds from sales

$ — $ — $ 50,481 $ —

The amortized cost and approximate fair value of investment securities classified as HTM are summarized below as of the dates presented (dollars in thousands).

Amortized Cost

March 31, 2026

Gross Unrealized Gains

Gross Unrealized Losses

June 30, 2026

Obligations of state and political subdivisions

4 unchanged sentences

Amortized Cost

Gross Unrealized Gains

Gross Unrealized Losses

December 31, 2025

5 unchanged sentences

Securities are classified in the consolidated balance sheets according to management’s intent.

The Company had no securities classified as trading as of March 31, 2026 or December 31, 2025 .

The Company had no securities classified as trading as of June 30, 2026 or December 31, 2025 .

INVESTAR HOLDING CORPORATION

3 unchanged sentences

12 Months or More

March 31, 2026

Unrealized Losses

June 30, 2026

Obligations of the U.S.

13 unchanged sentences

12 Months or More

Unrealized Losses

December 31, 2025

12 unchanged sentences

$ 30,685 $ ( 217 ) $ 265,528 $ ( 46,197 ) $ 296,213 $ ( 46,414 )

At March 31, 2026 , 737 of the Company’s AFS debt securities had unrealized losses totaling 12.0 % of the individual securities’ amortized cost basis and 10.4 % of the Company’s total amortized cost basis of the AFS investment securities portfolio.

At June 30, 2026 , 774 of the Company’s AFS debt securities had unrealized losses totaling 12.0 % of the individual securities’ amortized cost basis and 10.6 % of the Company’s total amortized cost basis of the AFS investment securities portfolio.

At such date, 597 of the 774 securities had been in a continuous loss position for over 12 months.

2 unchanged sentences

12 Months or More

March 31, 2026

Unrealized Losses

June 30, 2026

Obligations of state and political subdivisions

5 unchanged sentences

12 Months or More

Unrealized Losses

December 31, 2025

12 unchanged sentences

government or by a government sponsored enterprise and are generally considered to be risk-free.

Due to the nature of the investments, current market prices, and the current interest rate environment, the Company determined that these declines were not attributable to credit losses at March 31, 2026 or December 31, 2025 .

INVESTAR HOLDING CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The amortized cost and approximate fair value of investment debt securities, by contractual maturity, are shown below as of March 31, 2026 (dollars in thousands).

The amortized cost and approximate fair value of investment debt securities, by contractual maturity, are shown below as of June 30, 2026 (dollars in thousands).

Actual maturities may differ from contractual maturities due to mortgage-backed securities whereby borrowers may have the right to call or prepay obligations with or without call or prepayment penalties and certain callable bonds whereby the issuer has the option to call the bonds prior to contractual maturity.

1 unchanged sentence

Held to Maturity

March 31, 2026

Amortized Cost

June 30, 2026

Due within one year

8 unchanged sentences

$ 459,375 $ 411,326 $ 47,217 $ 49,450

Accrued interest receivable on the Company ’ s investment securities was $ 2.8 million and $ 2.2 million at March 31, 2026 and December 31, 2025 , respectively, and is included in “ Accrued interest receivable ” on the accompanying consolidated balance sheets.

At March 31, 2026 , securities with a carrying value of $ 134.8 million were pledged to secure certain deposits, borrowings, and other liabilities, compared to $ 75.6 million in pledged securities at December 31, 2025 .

Accrued interest receivable on the Company ’ s investment securities was $ 2.6 million and $ 2.2 million at June 30, 2026 and December 31, 2025 , respectively, and is included in “ Accrued interest receivable ” on the accompanying consolidated balance sheets.

At June 30, 2026 , securities with a carrying value of $ 125.2 million were pledged to secure certain deposits, borrowings, and other liabilities, compared to $ 75.6 million in pledged securities at December 31, 2025 .

Equity Securities

Equity securities at fair value include marketable securities in corporate stocks and mutual funds and totaled $ 3.5 million and $ 3.4 million at March 31, 2026 and December 31, 2025 , respectively.

Equity securities at fair value include marketable securities in corporate stocks and mutual funds and totaled $ 4.1 million and $ 3.4 million at June 30, 2026 and December 31, 2025 , respectively.

Nonmarketable equity securities primarily consist of FHLB stock and FRB stock.

4 unchanged sentences

These investments are carried at cost which approximates fair value.

The balance of nonmarketable equity securities at March 31, 2026 and December 31, 2025 was $ 21.4 million and $ 17.0 million, respectively.

The balance of nonmarketable equity securities at June 30, 2026 and December 31, 2025 was $ 23.8 million and $ 17.0 million, respectively.

INVESTAR HOLDING CORPORATION

2 unchanged sentences

The Company’s loan portfolio consists of the following categories of loans as of the dates presented (dollars in thousands).

March 31, 2026

June 30, 2026

December 31, 2025

12 unchanged sentences

Loan origination fees, net of direct loan origination costs and commitment fees, are deferred and amortized as an adjustment to yield over the life of the loan, or over the commitment period, as applicable.

Unamortized premiums and discounts on loans, included in the total loans balances above, were $ 19.5 million and $ 0.1 million at March 31, 2026 and December 31, 2025 , respectively, and unearned income, or deferred fees, on loans was $ 1.5 million and $ 1.6 million at March 31, 2026 and December 31, 2025 , respectively, and is also included in the total loans balance in the table above.

The tables below provide an analysis of the aging of loans as of March 31, 2026 and December 31, 2025 (dollars in thousands).

March 31, 2026

Unamortized premiums and discounts on loans, included in the total loans balances above, were $ 17.0 million and $ 0.1 million at June 30, 2026 and December 31, 2025 , respectively, and unearned income, or deferred fees, on loans was $ 1.5 million and $ 1.6 million at June 30, 2026 and December 31, 2025 , respectively, and is also included in the total loans balance in the table above.

The tables below provide an analysis of the aging of loans as of June 30, 2026 and December 31, 2025 (dollars in thousands).

June 30, 2026

30 - 59 Days Past Due

35 unchanged sentences

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The tables below provide an analysis of nonaccrual loans as of March 31, 2026 and December 31, 2025 (dollars in thousands).

March 31, 2026

The tables below provide an analysis of nonaccrual loans as of June 30, 2026 and December 31, 2025 (dollars in thousands).

June 30, 2026

Nonaccrual with No Allowance for Credit Loss

32 unchanged sentences

A loan may be returned to accrual status when all the principal and interest amounts contractually due are brought current and payment of future principal and interest amounts contractually due are reasonably assured, which is typically evidenced by a sustained period (at least six months) of repayment performance by the borrower.

No material interest income was recognized in the consolidated statements of income on nonaccrual loans for the three months ended March 31, 2026 and 2025 .

No material interest income was recognized in the consolidated statements of income on nonaccrual loans for the six months ended June 30, 2026 and 2025 .

Collateral Dependent Loans

4 unchanged sentences

When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell.

The Company ’ s collateral dependent loans include all nonaccrual loans shown in the tables above at March 31, 2026 and December 31, 2025 .

The Company ’ s collateral dependent loans include all nonaccrual loans shown in the tables above at June 30, 2026 and December 31, 2025 .

The types of collateral that secure collateral dependent loans are discussed under “Portfolio Segment Risk Factors” below.

71 unchanged sentences

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The tables below present the Company’s loan portfolio by year of origination, category, and credit quality indicator as of March 31, 2026 and December 31, 2025 (dollars in thousands).

The tables below present the Company’s loan portfolio by year of origination, category, and credit quality indicator as of June 30, 2026 and December 31, 2025 (dollars in thousands).

Loans acquired are shown in the table by origination year.

The Company had an immaterial amount of revolving loans converted to term loans at March 31, 2026 and December 31, 2025 .

March 31, 2026

The Company had an immaterial amount of revolving loans converted to term loans at June 30, 2026 and December 31, 2025 .

June 30, 2026

Revolving Loans

137 unchanged sentences

$ ( 71 ) $ ( 34 ) $ ( 90 ) $ ( 65 ) $ ( 41 ) $ ( 24 ) $ ( 134 ) $ ( 459 )

The Company had no loans that were classified as Loss at March 31, 2026 and no loans that were classified as Doubtful or Loss at December 31, 2025 .

The Company had no loans that were classified as Loss at June 30, 2026 and no loans that were classified as Doubtful or Loss at December 31, 2025 .

INVESTAR HOLDING CORPORATION

1 unchanged sentence

Loan Participations and Sold Loans

Loan participations and whole loans sold to and serviced for others are not included in the accompanying consolidated balance sheets, the balances of which were $ 47.9 million and $ 44.7 million at March 31, 2026 and December 31, 2025 , respectively.

The total unpaid principal balances of loans where participating interests have been sold were a pproximate ly $ 229.6 million and $ 239.2 million at March 31, 2026 and December 31, 2025 , respectively.

Loan participations and whole loans sold to and serviced for others are not included in the accompanying consolidated balance sheets, the balances of which were $ 47.3 million and $ 44.7 million at June 30, 2026 and December 31, 2025 , respectively.

The total unpaid principal balances of loans where participating interests have been sold were a pproximate ly $ 237.8 million and $ 239.2 million at June 30, 2026 and December 31, 2025 , respectively.

Loans to Related Parties

In the ordinary course of business, the Company makes loans to related parties including its executive officers, principal stockholders, directors and their immediate family members, as well as to companies of which these individuals are principal owners.

Loans outstanding to such related party borrowers amounted to approximately $ 34.3 million and $ 34.7 million as of March 31, 2026 and December 31, 2025 , respectively.

No related party loans were classified as nonperforming or nonaccrual at March 31, 2026 or December 31, 2025 .

Loans outstanding to such related party borrowers amounted to approximately $ 33.8 million and $ 34.7 million as of June 30, 2026 and December 31, 2025 , respectively.

No related party loans were classified as nonperforming or nonaccrual at June 30, 2026 or December 31, 2025 .

The table below shows the aggregate principal balance of loans to such related parties as of the dates presented (dollars in thousands).

March 31, 2026

June 30, 2026

December 31, 2025

23 unchanged sentences

The Company made the accounting policy election to exclude accrued interest receivable from the amortized cost of loans and the estimate of the ACL.

Accrued interest receivable on the Company’s loan s was $ 16.7 million and $ 12.1 million a t March 31, 2026 and December 31, 2025 , respectively, and is included in “ Accrued interest receivable ” on the accompanying consolidated balance sheets.

The table below shows a summary of the activity in the ACL for the three months ended March 31, 2026 and 2025 (dollars in thousands).

Three months ended March 31,

Accrued interest receivable on the Company’s loan s was $ 16.2 million and $ 12.1 million a t June 30, 2026 and December 31, 2025 , respectively, and is included in “ Accrued interest receivable ” on the accompanying consolidated balance sheets.

The table below shows a summary of the activity in the ACL for the three and six months ended June 30, 2026 and 2025 (dollars in thousands).

Three months ended June 30,

Six months ended June 30,

Balance, beginning of period

2 unchanged sentences

ACL on PSL loans at acquisition

Reversal of credit losses on loans (1)

Provision for (reversal of) credit losses on loans (1)

374 172 ( 1,428 ) ( 3,523 )

( 229 ) ( 131 ) ( 596 ) ( 258 )

121 144 224 3,680

Balance, end of period

$ 36,251 $ 26,620 $ 36,251 $ 26,620

For the three months ended March 31, 2026 , the $ 2.1 million reversal of credit losses on the consolidated statement of income includes a $ 1.8 million reversal of credit losses on loans and a $ 0.3 million reversal of credit losses on unfunded loan commitments.

For the three months ended March 31, 2025 , the $ 3.6 million reversal of credit losses on the consolidated statement of income includes a $ 3.7 million reversal of credit losses on loans and a $ 0.1 million provision for credit losses on unfunded loan commitments.

The reversal of credit losses on loans for the three months ended March 31, 2026 was primarily due t o a decrease in total loans during the quarter, changes in the economic forecast and the completion of our CECL allowance model recalibration.

The reversal of credit losses on loans for the three months ended March 31, 2025 was primarily due to net recoveries on one loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida.

For the three months ended June 30, 2026 , the $ 0.3 million provision for credit losses on the consolidated statement of income includes a $ 0.4 million provision for credit losses on loans and a $ 0.1 million reversal of credit losses on unfunded loan commitments.

For the six months ended June 30, 2026 , the $ 1.8 million reversal of credit losses on the consolidated statement of income includes a $ 1.4 million reversal of credit losses on loans and a $ 0.4 million reversal of credit losses on unfunded loan commitments.

For the three months ended June 30, 2025 , the $ 0.1 million provision for credit losses on the consolidated statement of income includes a $ 0.2 million provision for credit losses on loans and a $ 31,000 reversal of credit losses on unfunded loan commitments.

For the six months ended June 30, 2025 , the $ 3.5 million reversal of credit losses on the consolidated statement of income includes a $ 3.5 million reversal of credit losses on loans and a $ 68,000 provision for credit losses on unfunded loan commitments.

The provision for credit losses on loans for the three months ended June 30, 2026 was primarily due t o adjustments to qualitative factors, partially offset by a decrease in total loans.

The reversal of credit losses on loans for the six months ended June 30, 2026 was primarily due t o a decrease in total loans during the period, changes in the economic forecast and the completion of the CECL allowance model recalibration.

The provision for credit losses on loans for the three months ended June 30, 2025 was primarily due to changes in the economic forecast and loan mix.

The reversal of credit losses on loans for the six months ended June 30, 2025 was primarily due to a $ 3.3 million recovery during the first quarter of 2025 of loans previously charged off as a result of a property insurance settlement related to one loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida.

INVESTAR HOLDING CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The following tables outline the activity in the ACL by collateral type for the three months ended March 31, 2026 and 2025 , and show both the allowance and portfolio balances for loans individually and collectively evaluated for impairment as of March 31, 2026 and 2025 (dollars in thousands).

Three months ended March 31, 2026

The following tables outline the activity in the ACL by collateral type for the three and six months ended June 30, 2026 and 2025 , and show both the allowance and portfolio balances for loans individually and collectively evaluated for impairment as of June 30, 2026 and 2025 (dollars in thousands).

Three months ended June 30, 2026

Construction & Development

4 unchanged sentences

$ 1,355 $ 15,922 $ 1,146 $ 8 $ 9,045 $ 8,358 $ 151 $ 35,985

Provision for (reversal of) credit losses on loans

254 241 40 2 95 ( 264 ) 6 374

— ( 39 ) — — ( 123 ) ( 28 ) ( 39 ) ( 229 )

— 2 — — — 116 3 121

Ending balance

$ 1,609 $ 16,126 $ 1,186 $ 10 $ 9,017 $ 8,182 $ 121 $ 36,251

Three months ended June 30, 2025

Construction & Development

Commercial Real Estate

Commercial & Industrial

Allowance for credit losses:

Beginning balance

$ 1,258 $ 6,552 $ 1,497 $ 8 $ 12,018 $ 5,002 $ 100 $ 26,435

Provision for (reversal of) credit losses on loans

55 ( 198 ) ( 3 ) ( 4 ) ( 14 ) 325 11 172

— — — — — ( 102 ) ( 29 ) ( 131 )

— 80 — 1 8 38 17 144

Ending balance

$ 1,313 $ 6,434 $ 1,494 $ 5 $ 12,012 $ 5,263 $ 99 $ 26,620

Six months ended June 30, 2026

Construction & Development

Commercial Real Estate

Commercial & Industrial

Allowance for credit losses:

Beginning balance

$ 1,327 $ 6,053 $ 1,814 $ 6 $ 11,388 $ 5,680 $ 81 $ 26,349

ACL on PCD loans at acquisition

2 unchanged sentences

455 9,344 51 2 874 783 50 11,559

Provision for (reversal of) credit losses on loans

(Reversal of) provision for credit losses on loans

( 173 ) 716 ( 679 ) 2 ( 3,122 ) 1,787 41 ( 1,428 )

14 unchanged sentences

$ 261,799 $ 907,385 $ 144,234 $ 9,850 $ 1,020,728 $ 703,279 $ 12,612 $ 3,059,887

Three months ended March 31, 2025

Six months ended June 30, 2025

Construction & Development

26 unchanged sentences

Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off.

During the three months ended March 31, 2026 and 2025 , the Company did not provide any modifications under these circumstances to borrowers experiencing financial difficulty.

During the six months ended June 30, 2026 and 2025 , the Company did not provide any modifications under these circumstances to borrowers experiencing financial difficulty.

INVESTAR HOLDING CORPORATION

2 unchanged sentences

The Company’s intangible assets consist of goodwill, core deposit intangible assets arising from acquisitions, and a trademark intangible.

At March 31, 2026 and December 31, 2025 , “Goodwill and other intangible assets, net” in the accompanying consolidated balance sheets totaled $ 72.1 million and $ 41.2 million, respectively, and included no accumulated impairment losses.

The carrying amount of goodwill at March 31, 2026 and December 31, 2025 was $ 58.1 million and $ 40.1 million, respectively.

At June 30, 2026 and December 31, 2025 , “Goodwill and other intangible assets, net” in the accompanying consolidated balance sheets totaled $ 71.7 million and $ 41.2 million, respectively, and included no accumulated impairment losses.

The carrying amount of goodwill at June 30, 2026 and December 31, 2025 was $ 58.3 million and $ 40.1 million, respectively.

The Company recorded $ 18.2 million of goodwill during 2026, related to the acquisition of WFB.

2 unchanged sentences

The table below shows a summary of goodwill activity for the periods presented (dollars in thousands).

March 31, 2026

June 30, 2026

December 31, 2025

7 unchanged sentences

The table below shows a summary of the core deposit intangible assets as of the dates presented (dollars in thousands).

March 31, 2026

June 30, 2026

December 31, 2025

5 unchanged sentences

$ 13,337 $ 996

Amortization expense for the core deposit intangible assets recorded in “Depreciation and amortization” in the accompanying consolidated statements of income totaled approximately $ 0.6 million and $ 0.1 million for the three months ended March 31, 2026 and 2025 , respectively.

Amortization expense for the core deposit intangible assets recorded in “Depreciation and amortization” in the accompanying consolidated statements of income totaled approximately $ 0.6 million and $ 1.2 million for the three and six months ended June 30, 2026 , respectively, and $0.1 million and $ 0.3 million for the three and six months ended June 30, 2025 , respectively.

The estimated remaining amortization expense for the Company’s core deposit intangible assets is displayed in the table below (dollars in thousands).

1 unchanged sentence

Remainder of 2026

The trademark intangible had a carrying value of $0.1 million at March 31, 2026 and December 31, 2025 .

The trademark intangible had a carrying value of $ 0.1 million at June 30, 2026 and December 31, 2025 .

INVESTAR HOLDING CORPORATION

2 unchanged sentences

Accumulated Other Comprehensive (Loss) Income

Activity within the balances in accumulated other comprehensive (loss) income, net is shown in the table below (dollars in thousands).

Activity within the balances in accumulated other comprehensive (loss) income, net is shown in the tables below (dollars in thousands).

Three months ended June 30, 2026

AFS Securities

Three months ended March 31, 2026:

Balance at beginning of period

Unrealized loss, net

Reclassification of realized gain, net

Balance at end of period

Three months ended June 30, 2025

AFS Securities

Three months ended March 31, 2025:

Balance at beginning of period

1 unchanged sentence

Balance at end of period

Six months ended June 30, 2026

AFS Securities

Balance at beginning of period

Unrealized loss, net

Reclassification of realized gain, net

Balance at end of period

Six months ended June 30, 2025

AFS Securities

Balance at beginning of period

Unrealized gain, net

Balance at end of period

INVESTAR HOLDING CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

STOCK-BASED COMPENSATION

Equity Incentive Plan .

The Company’s Second Amended and Restated 2017 Long-Term Incentive Compensation Plan (the “Plan”) authorizes the grant of various types of equity awards, such as restricted stock, RSUs, stock options and stock appreciation rights to eligible participants, which include all of the Company’s employees, non-employee directors, and consultants.

Under the Plan, a total of 1,800,000 shares of common stock are reserved, 600,000 of which were authorized in 2021 and 600,000 of which were authorized in 2026, for issuance to eligible participants pursuant to equity awards under the Plan.

The Plan is administered by the Compensation Committee of the Board, which determines, within the provisions of the Plan, those eligible employees to whom, and the times at which, equity awards will be granted.

The Compensation Committee, in its discretion, may delegate its authority and duties under the Plan to specified officers;

however, only the Compensation Committee may approve the terms of equity awards to the Company’s executive officers and directors.

At June 30, 2026 , approximately 718,429 shares remain available for grant under the Plan.

Stock Options

The Company grants stock options to key personnel that vest in one - fifth increments on each of the first five anniversaries of the grant date, and the maximum option term cannot exceed ten years measured from the grant date.

The Company uses a Black-Scholes option pricing model to estimate the fair value of stock-based awards.

The Black-Scholes option pricing model incorporates various subjective assumptions, including expected term and expected volatility.

Expected volatility was determined based on the historical volatilities of the Company’s common stock.

The Company did not grant any stock options during the six months ended June 30, 2026 and 2025 .

Stock option expense of $ 24,000 and $ 0.1 million is included in “Salaries and employee benefits” in the accompanying consolidated statements of income for the three and six months ended June 30, 2026 , respectively, and $ 32,000 and $ 0.1 million for the three and six months ended June 30, 2025 , respectively.

At June 30, 2026 , there was $ 0.2 million of unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 2.2 years.

The table below summarizes the Company’s stock option activity for the periods presented.

Six months ended June 30,

Number of Options

Weighted Average Exercise Price

Number of Options

Weighted Average Exercise Price

Outstanding, beginning of period

226,602 $ 18.77 260,602 $ 18.37

( 29,070 ) 14.28 ( 34,000 ) 15.74

Outstanding, end of period

197,532 $ 19.43 226,602 $ 18.77

Exercisable, end of period

161,249 $ 20.25 168,786 $ 19.64

INVESTAR HOLDING CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Restricted Stock and RSUs

Under the Plan, the Company may grant restricted stock, RSUs, and other stock-based awards to Plan participants, subject to forfeiture upon the occurrence of certain events until the vesting dates specified in the participant’s award agreement.

Historically, the Company granted restricted stock awards to Plan participants.

Beginning in 2019, the Company began granting time-vesting RSUs to its non-employee directors and certain officers of the Company, with vesting terms ranging from two years to five years.

The RSUs do not have voting rights and do not receive dividends or dividend equivalents.

As of May 1, 2023, all of the previously granted shares of restricted stock had vested, and only outstanding RSUs remained.

Compensation expense for RSUs, which is calculated based on the market price of the Company’s common stock at the grant date applied to the total number of units granted, is recognized on a straight-line basis over the requisite service period of generally five years for employees and non-employee directors.

Upon vesting of RSUs, the benefit of tax deductions in excess of recognized compensation expense is reflected as an income tax benefit in the consolidated statements of income.

Compensation expense related to RSUs of $ 0.5 million and $ 0.9 million is included in the accompanying consolidated statements of income for the three and six months ended June 30, 2026 , respectively, and $ 0.5 million and $ 0.9 million for the three and six months ended June 30, 2025 , respectively.

The unearned compensation related to these awards is amortized to compensation expense over the vesting period.

As of June 30, 2026 , unearned stock-based compensation cost associated with these awards totaled approximately $ 5.9 million and is expected to be recognized over a weighted average period of 3.7 years.

The following table summarizes the RSU activity for the periods presented.

Six months ended June 30,

Weighted Average Grant Date Fair Value

Balance, beginning of period

337,735 $ 16.81 323,820 $ 16.65

96,558 27.59 134,182 17.76

( 1,461 ) 18.47 ( 4,760 ) 16.37

Earned and issued

( 107,507 ) 17.09 ( 104,377 ) 17.65

Balance, end of period

325,325 $ 19.91 348,865 $ 16.78

INVESTAR HOLDING CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

5 unchanged sentences

however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC Topic 820 “Fair Value Measurement” (“ASC 820” ).

The Company did not recognize any gains or losses in other operating income resulting from fair value adjustments of these swap agreements during the three months ended March 31, 2026 and 2025 .

The table below presents the notional amounts and fair values of the Company’s derivative financial instruments as well as their classification on the accompanying consolidated balance sheets at March 31, 2026 and December 31, 2025 (dollars in thousands).

The Company did not recognize any gains or losses in other operating income resulting from fair value adjustments of these swap agreements during the three and six months ended June 30, 2026 and 2025 .

The table below presents the notional amounts and fair values of the Company’s derivative financial instruments as well as their classification on the accompanying consolidated balance sheets at June 30, 2026 and December 31, 2025 (dollars in thousands).

Derivative Assets (2)

Derivative Liabilities (2)

March 31, 2026

June 30, 2026

Interest rate swaps

3 unchanged sentences

$ 361,564 $ 11,660 $ 11,660

( 1 ) At March 31, 2026 the Company had notional amounts of $ 162.8 million in interest rate swap contracts with customers and $ 162.8 million in offsetting interest rate swap contracts with other financial institutions.

( 1 ) At June 30, 2026 the Company had notional amounts of $ 158.3 million in interest rate swap contracts with customers and $ 158.3 million in offsetting interest rate swap contracts with other financial institutions.

At December 31, 2025 the Company had notional amounts of $ 180.8 million in interest rate swap contracts with customers and $ 180.8 million in offsetting interest rate swap contracts with other financial institutions.

( 2 ) Derivative assets and liabilities are reported at fair value in “Other assets” and “Accrued taxes and other liabilities,” respectively, in the accompanying consolidated balance sheets.

The table below presents the gross presentation, the effects of offsetting, and a net presentation of the Company’s derivative financial instruments and securities sold under agreements to repurchase at March 31, 2026 and December 31, 2025 (dollars in thousands).

The table below presents the gross presentation, the effects of offsetting, and a net presentation of the Company’s derivative financial instruments and securities sold under agreements to repurchase at June 30, 2026 and December 31, 2025 (dollars in thousands).

Gross Amounts Not Offset in the Consolidated Balance Sheets

4 unchanged sentences

Cash Collateral (1)

March 31, 2026

June 30, 2026

Financial assets:

19 unchanged sentences

$ 22,843 $ — $ 22,843 $ ( 11,183 ) $ — $ 11,660

( 1 ) The Company had no collateral posted with counterparties at March 31, 2026 and December 31, 2025 .

( 1 ) The Company had no collateral posted with counterparties at June 30, 2026 and December 31, 2025 .

Collateral received from counterparties is included in “Interest-bearing deposits” in the accompanying consolidated balance sheets.

13 unchanged sentences

In accordance with ASC 820, these investments are measured at fair value using the net asset value practical expedient and are not required to be classified in the fair value hierarchy.

At March 31, 2026 and December 31, 2025 , the fair values of these investments were $ 3.6 million and $ 3.5 million, respectively, and are included in “Other assets” in the accompanying consolidated balance sheets.

At each of June 30, 2026 and December 31, 2025 , the fair values of these investments were $ 3.5 million and are included in “Other assets” in the accompanying consolidated balance sheets.

Fair Value Hierarchy

21 unchanged sentences

as well as other reference data.

At March 31, 2026 and December 31, 2025 , all of the Company’s level 3 investments were obligations of state and political subdivisions.

At June 30, 2026 and December 31, 2025 , all of the Company’s level 3 investments were obligations of state and political subdivisions.

The Company estimated the fair value of these level 3 investments using discounted cash flow models, the key inputs of which are the coupon rate, current spreads to the yield curves, and expected repayment dates, adjusted for illiquidity of the local municipal market and sinking funds, if applicable.

6 unchanged sentences

Estimated Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs

March 31, 2026

June 30, 2026

Obligations of the U.S.

41 unchanged sentences

Changes in the Company’s ability to observe inputs to the valuation may cause reclassification of certain assets or liabilities within the fair value hierarchy.

The tables below provide a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs, or level 3 inputs, for the three months ended March 31, 2026 and 2025 (dollars in thousands).

The tables below provide a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs, or level 3 inputs, for the six months ended June 30, 2026 and 2025 (dollars in thousands).

Obligations of State and Political Subdivisions

Balance at December 31, 2025

Realized gain (loss) included in earnings

Unrealized gain included in other comprehensive income

Unrealized gain included in other comprehensive loss

Maturities, prepayments, and calls

Transfers into level 3

Transfers out of level 3

Balance at March 31, 2026

Balance at June 30, 2026

Obligations of State and Political Subdivisions

2 unchanged sentences

$ 4,317 $ 494

Realized gain (loss) included in earnings

Unrealized gain included in other comprehensive income

Maturities, prepayments, and calls

Transfers into level 3

Transfers out of level 3

Balance at March 31, 2025

( 917 ) ( 500 )

There were no liabilities measured at fair value on a recurring basis using level 3 inputs at March 31, 2026 and December 31, 2025 .

For the three months ended March 31, 2026 and 2025 , there were no gains or losses included in earnings related to the change in fair value of the assets measured on a recurring basis using significant unobservable inputs held at the end of the period.

The following table provides quantitative information about significant unobservable inputs used in fair value measurements of level 3 assets measured at fair value on a recurring basis at March 31, 2026 and December 31, 2025 (dollars in thousands).

Balance at June 30, 2025

There were no liabilities measured at fair value on a recurring basis using level 3 inputs at June 30, 2026 and December 31, 2025 .

For the six months ended June 30, 2026 and 2025 , there were no gains or losses included in earnings related to the change in fair value of the assets measured on a recurring basis using significant unobservable inputs held at the end of the period.

The following table provides quantitative information about significant unobservable inputs used in fair value measurements of level 3 assets measured at fair value on a recurring basis at June 30, 2026 and December 31, 2025 (dollars in thousands).

Estimated Fair Value

3 unchanged sentences

Weighted Average Discount (1)

March 31, 2026

June 30, 2026

Obligations of state and political subdivisions

25 unchanged sentences

Accordingly, values for other real estate owned are classified as level 3.

Quantitative information about assets measured at fair value on a nonrecurring basis based on significant unobservable inputs (level 3 ) is summarized below as of March 31, 2026 and December 31, 2025 .

There were no liabilities measured on a nonrecurring basis at March 31, 2026 or December 31, 2025 (dollars in thousands).

Quantitative information about assets measured at fair value on a nonrecurring basis based on significant unobservable inputs (level 3 ) is summarized below as of June 30, 2026 and December 31, 2025 .

There were no liabilities measured on a nonrecurring basis at June 30, 2026 or December 31, 2025 (dollars in thousands).

Estimated Fair Value

3 unchanged sentences

Weighted Average Discount (1)

March 31, 2026

June 30, 2026

Loans individually evaluated for impairment (2)

2 unchanged sentences

Collateral discounts and estimated costs to sell

Other real estate owned (3)

700 Underlying collateral value, third party appraisals

Collateral discounts and discount rates

December 31, 2025

7 unchanged sentences

( 1 ) Weighted by relative fair value.

( 2 ) Loan s individually evaluated for impairment that were re-measured during the period had a carrying val ue of $ 3.1 million and $ 3.6 million at March 31, 2026 and December 31, 2025 , respectively, with related ACL of $ 0.4 million and $ 0.3 million, respectively, as o f s uch dates.

( 2 ) Loan s individually evaluated for impairment that were re-measured during the period had a carrying val ue of $ 3.4 million and $ 3.6 million at June 30, 2026 and December 31, 2025 , respectively, with related ACL of $ 0.4 million and $ 0.3 million, respectively, as o f s uch dates.

( 3 ) Other real estate owned that was re-measured during the period had a carrying value of $ 0.7 million at June 30, 2026 .

During the six months ended June 30, 2026 , the Company recorded a $ 0.1 million write-down of other real estate owned which is included as part of “Other operating expenses” in noninterest expense on the accompanying consolidated statement of income.

Other real estate owned that was re-measured during the period had a carrying value of $ 2.0 million at December 31, 2025 .

During the six months ended June 30, 2025 , the Company recorded a $ 0.3 million write-down of other real estate owned which is included as part of “Other operating expenses” in noninterest expense on the accompanying consolidated statement of income.

INVESTAR HOLDING CORPORATION

17 unchanged sentences

The estimated fair values of the Company’s financial instruments are summarized in the tables below as of the dates indicated (dollars in thousands).

March 31, 2026

June 30, 2026

Carrying Amount

60 unchanged sentences

The income tax expense and the effective tax rate included in the consolidated statements of income are shown in the table below for the periods presented (dollars in thousands).

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

Income tax expense

2 unchanged sentences

18.4 % 17.2 % 18.9 % 17.9 %

For the three months ended March 31, 2026 and 2025 , the effective tax rate differed from the statutory tax rate of 21% primarily due to tax-exempt interest income earned on certain loans and investment securities and income from BOLI.

For the three and six months ended June 30, 2026 and 2025 , the effective tax rate differed from the statutory tax rate of 21 % primarily due to tax-exempt interest income earned on certain loans and investment securities and income from BOLI.

COMMITMENTS AND CONTINGENCIES

9 unchanged sentences

The table below shows the approximate amounts of the Company’s commitments to extend credit as of the dates presented (dollars in thousands).

March 31, 2026

June 30, 2026

December 31, 2025

4 unchanged sentences

The table below shows a summary of the activity in the ACL on unfunded loan commitments for the periods presented (dollars in thousands).

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

Balance, beginning of period

$ 331 $ 141 $ 425 $ 42

ACL on unfunded loan commitments at acquisition

(Reversal of) provision for credit losses on unfunded loan commitments

( 99 ) ( 31 ) ( 405 ) 68

Balance, end of period

Additionally, at March 31, 2026 , the Company had unfunded commitments of $ 1.4 million for its investments in SBIC qualified funds and other investment funds.

$ 232 $ 110 $ 232 $ 110

Additionally, at June 30, 2026 , the Company had unfunded commitments of $ 1.4 million for its investments in SBIC qualified funds and other investment funds.

INVESTAR HOLDING CORPORATION

5 unchanged sentences

The Company has lease agreements with lease and non-lease components, which the Company has elected to account for separately, as the non-lease component amounts are readily determinable.

Quantitative information regarding the Company’s operating leases is presented below as of and for the three months ended March 31, 2026 and 2025 (dollars in thousands).

Quantitative information regarding the Company’s operating leases is presented below as of and for the six months ended June 30, 2026 and 2025 (dollars in thousands).

Total operating lease cost (1)

2 unchanged sentences

( 1 ) Short-term lease cost was immaterial for the periods presented.

At March 31, 2026 and December 31, 2025 , the Company’s operating lease ROU assets were $ 2.7 million and $ 1.8 million, respectively, and the Company’s related operating lease liabilities were $ 2.8 million and $ 1.9 million, respectively.

The Company’s operating leases have remaining terms ranging from approximately one to six years, including extension options if the Company is reasonably certain they will be exercised.

Future obligations due under non-cancelable operating leases at March 31, 2026 are presented below (dollars in thousands).

At June 30, 2026 and December 31, 2025 , the Company’s operating lease ROU assets wer e $ 2.6 million and $ 1.8 million, respectively, and the Company’s related operating lease liabilities were $ 2.7 million and $ 1.9 million, respectively.

The Company’s operating leases have remaining terms ranging from approximately one to five years, including extension options if the Company is reasonably certain they will be exercised.

Future obligations due under non-cancelable operating leases at June 30, 2026 are presented below (dollars in thousands).

Remainder of 2026

2 unchanged sentences

Total lease obligations

At March 31, 2026 , the Company had not entered into any material leases that have not yet commenced.

At June 30, 2026 , the Company had not entered into any material leases that have not yet commenced.

The Bank owns its corporate headquarters building, the first floor of which is occupied by multiple tenants.

1 unchanged sentence

All tenant leases are operating leases.

The Bank, as lessor, recognized lease income of $ 0.1 million for the three month periods ended March 31, 2026 and 2025 .

The Bank, as lessor, recognized lease income of $ 0.1 million and $ 0.2 million for the three and six month periods ended June 30, 2026 and 2025 , respectively.

MANAGEMENT ’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

58 unchanged sentences

and Alabama, including York and Oxford and their surrounding areas.

At March 31, 2026 , we operated 36 full service branches comprised of 20 full service branches in Louisiana, ten full service branches in Texas, and six full service branches in Alabama.

At June 30, 2026, we operated 36 full service branches comprised of 20 full service branches in Louisiana, ten full service branches in Texas, and six full service branches in Alabama.

Our strategy focuses on consistent, quality earnings through the optimization of our balance sheet.

26 unchanged sentences

During 2025, beginning in September 2025, the Federal Reserve reduced the federal funds target rate three times by 75 basis points on a cumulative basis to 3.50% to 3.75%.

Accordingly, the prevailing federal funds target rate for the three months ended March 31, 2026 was lower than for the three months ended March 31, 2025.

Accordingly, the prevailing federal funds target rate for the three and six months ended June 30, 2026 was lower than for the three and six months ended June 30, 2025.

Hurricane Ida.

3 unchanged sentences

Overview of Financial Condition and Results of Operations

Total assets increased $1.04 billion, or 36.8% , to $3.88 billion at March 31, 2026 , compared to $2.83 billion at December 31, 2025 .

The acquisition of WFB increased total assets $1.15 billion on January 1, 2026.

For the three months ended March 31, 2026 , net income available to common shareholders was $11.5 million, or $0.77 per diluted common share, compared to net income available to common shareholders of $6.3 million, or $0.63 per diluted common share, for the three months ended March 31, 2025 .

At March 31, 2026 , the Company and Bank each were in compliance with all regulatory capital requirements, and the Bank was considered “well-capitalized” under the FDIC’s prompt corrective action regulations.

Key components of our performance for the three months ended March 31, 2026 are summarized below.

Total loans increased $891.8 million, or 41.0% , to $3.07 billion at March 31, 2026 , compared to $2.18 billion at December 31, 2025 .

Total deposits increased $882.6 million, or 37.6% , to $3.23 billion at March 31, 2026 , compared to $2.35 billion at December 31, 2025 .

No ninterest-bearing deposits increased $194.1 million, or 43.5% , to $640.1 million at March 31, 2026 , compared to $446.0 million at December 31, 2025 .

As of March 31, 2026 , estimated uninsured deposits represented approximately 36% of our total deposits.

Net interest income for the three months ended March 31, 2026 was $32.7 million, an increase of $14.3 million, or 78.0% , compared to $18.3 million for the three months ended March 31, 2025 , which was the result of an $18.8 million increase in interest income partially offset by a $4.5 million decrease in interest expense.

We experienced margin expansion as our yield on interest-earning assets increased and our cost of funds decreased for the respective periods.

During the three months ended March 31, 2026 , our net interest margin was 3.59% , compared to 2.87% for the three months ended March 31, 2025 .

For the three months ended March 31, 2026 , we recorded a reversal of credit losses of $2.1 million compared to a reversal of credit losses of $3.6 million f or the three months ended March 31, 2025 .

Noninterest income increased $1.0 million, or 48.2% , to $3.0 million for the three months ended March 31, 2026 , compared to $2.0 million for the three months ended March 31, 2025 .

Noninterest expense increased $6.6 million, or 40.7%, to $22.8 million for the three months ended March 31, 2026 , compared to $16.2 million for the three months ended March 31, 2025 .

Nonperforming loans were 0.66% of total loans at March 31, 2026 , compared to 0.43% at December 31, 2025 .

Return on average assets increased to 1.25% for the three months ended March 31, 2026 , compared to 0.94% for the three months ended March 31, 2025 .

Return on average common equity was 12.12% for the three months ended March 31, 2026 , compared to 10.31% for the three months ended March 31, 2025 .

Book value per common share reached a record high of $27.97 at March 31, 2026, compared to $27.63 at December 31, 2025 .

During the three months ended March 31, 2026 , we paid $1.5 million to repur chase 53,420 shares of common stock compared to $0.6 million to repurchase 34,992 shares of common stock during the three months ended March 31, 2025 .

Stockholders’ equity increased $113.6 million, or 37.7%, to $414.6 million at March 31, 2026 compared to December 31, 2025 .

Total assets increased $1.03 billion, or 36.3% , to $3.86 billion at June 30, 2026 , compared to $2.83 billion at December 31, 2025 .

The acquisition of WFB increased total assets by $1.15 billion on January 1, 2026.

For the three months ended June 30, 2026 , net income available to common shareholders was $8.9 million, or $0.61 per diluted common share, compared to net income available to common shareholders of $4.5 million, or $0.46 per diluted common share, for the three months ended June 30, 2025 .

For the six months ended June 30, 2026 , net income available to common shareholders was $20.4 million, or $1.38 per diluted common share, compared to net income available to common shareholders of $10.8 million, or $1.09 per diluted common share, for the six months ended June 30, 2025 .

At June 30, 2026, the Company and Bank each were in compliance with all regulatory capital requirements, and the Bank was considered “well-capitalized” under the FDIC’s prompt corrective action regulations.

Key components of our performance for the three and six months ended June 30, 2026 are summarized below.

Total loans increased $883.9 million, or 40.6% , to $3.06 billion at June 30, 2026 , compared to $2.18 billion at December 31, 2025 .

Total deposits increased $863.6 million, or 36.7% , to $3.21 billion at June 30, 2026 , compared to $2.35 billion at December 31, 2025 .

No ninterest-bearing deposits increased $175.9 million, or 39.4% , to $621.9 million at June 30, 2026 , compared to $446.0 million at December 31, 2025 .

As of June 30, 2026 , estimated uninsured deposits represented approximately 34% of our total deposits.

Net interest income for the three months ended June 30, 2026 was $33.4 million, an increase of $13.8 million, or 70.3% , compared to $19.6 million for the three months ended June 30, 2025 , which was the result of a $17.8 million increase in interest income partially offset by a $4.0 million increase in interest expense.

Net interest income for the six months ended June 30, 2026 was $66.1 million, an increase of $28.1 million, or 74.0%, compared to $38.0 million for the six months ended June 30, 2025 , which was the result of a $36.6 million increase in interest income partially offset by an $8.5 million increase in interest expense.

During the three months ended June 30, 2026 , our net interest margin was 3.67%, compared to 3.03% for the three months ended June 30, 2025 .

During the six months ended June 30, 2026 , our net interest margin was 3.63% , compared to 2.95% for the six months ended June 30, 2025 .

We experienced margin expansion as our yield on interest-earning assets increased and our overall cost of funds decreased for the respective periods.

For the three months ended June 30, 2026 , we recorded a provision for credit losses of $0.3 million compared to a provision for credit losses of $0.1 million f or the three months ended June 30, 2025 .

For the six months ended June 30, 2026 , we recorded a reversal of credit losses of $1.8 million compared to a reversal of credit losses of $3.5 million for the six months ended June 30, 2025 .

Noninterest income increased $0.5 million, or 18.0% , to $3.1 million for the three months ended June 30, 2026 , compared to $2.6 million for the three months ended June 30, 2025 .

Noninterest income increased $1.4 million, or 31.1% , to $6.1 million for the six months ended June 30, 2026 , compared to $4.6 million for the six months ended June 30, 2025 .

Noninterest expense increased $8.0 million, or 47.7%, to $24.7 million for the three months ended June 30, 2026, compared to $16.7 million for the three months ended June 30, 2025.

Noninterest expense increased $14.6 million, or 44.2%, to $47.5 million for the six months ended June 30, 2026, compared to $32.9 million for the six months ended June 30, 2025.

Nonperforming loans were 0.63% of total loans at June 30, 2026 , compared to 0.43% at December 31, 2025 .

Return on average assets increased to 0.98% for the three months ended June 30, 2026 , compared to 0.66% for the three months ended June 30, 2025 .

Return on average assets increased to 1.11% for the six months ended June 30, 2026 , compared to 0.80% for the six months ended June 30, 2025 .

Return on average common equity was 9.19% for the three months ended June 30, 2026 , compared to 7.07% for the three months ended June 30, 2025 .

Return on average common equity was 10.64% for the six months ended June 30, 2026 , compared to 8.66% for the six months ended June 30, 2025 .

Book value per common share reached a record high of $28.29 at June 30, 2026, compared to $27.63 at December 31, 2025 .

During the three months ended June 30, 2026 , we paid $0.8 million to repur chase 27,235 shares of common stock compared to $0.6 million to repurchase 36,065 shares of common stock during the t hree months ended June 30, 2025 .

During the six months ended June 30, 2026 , we paid $2.3 million to repur chase 80,655 shares of common stock compared to $1.3 million to repurchase 71,057 shares of common stock during the six months ended June 30, 2025 .

Stockholders’ equity increased $119.1 million, or 39.5%, to $420.1 million at June 30, 2026 compared to $301.1 million at December 31, 2025.

Discussion and Analysis of Financial Condition

Loans constitute our most significant asset, comprising 79.2% and 76.8% of our total assets at March 31, 2026 and December 31, 2025 , respectively.

Total loans increased $891.8 million, or 41.0% , to $3.07 billion at March 31, 2026 , compared to $2.18 billion at December 31, 2025 .

Loans constitute our most significant asset, comprising 79.2% and 76.8% of our total assets at June 30, 2026 and December 31, 2025, respectively.

Total loans increased $883.9 million, or 40.6%, to $3.06 billion at June 30, 2026, compared to $2.18 billion at December 31, 2025.

The increase in loans was primarily the result of the acquisition of WFB, which increased total loans $961.9 million on January 1, 2026.

We are emphasizing the origination of high margin loans that promote long-term profitability and proactively exiting credit relationships that do not fit this strategy.

Our variable-rate loans as a percentage of total loans increased to 49% at March 31, 2026 compared to 38% at December 31, 2025.

Included in variable-rate loans as of March 31, 2026 are adjustable-rate mortgage loans we acquired in connection with our acquisition of WFB.

Our variable-rate loans as a percentage of total loans increased to 50% at June 30, 2026 compared to 38% at December 31, 2025.

Included in variable-rate loans as of June 30, 2026 are adjustable-rate mortgage loans we acquired in connection with our acquisition of WFB.

The table below sets forth the balance of loans outstanding by loan type as of the dates presented, and the percentage of each loan type to total loans (dollars in thousands).

March 31, 2026

June 30, 2026

December 31, 2025

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The Company’s business lending portfolio consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans.

At March 31, 2026 , the Company’s business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $1.17 billion, an increase of $112.3 million, or 10.6% , compared to $1.06 billion at December 31, 2025 .

The increase in the business lending portfolio was primarily driven by the acquisition of WFB, partially offset by loan amortization.

Construction and development loans totaled $318.9 million at March 31, 2026, an increase of $170.9 million, or 115.5%, compared to $148.0 million at December 31, 2025.

The increase in construction and development loans was primarily due to the acquisition of WFB.

1-4 Family loans totaled $920.5 million at March 31, 2026, an increase of $544.2 million, or 144.7%, compared to $376.2 million at December 31, 2025.

At June 30, 2026, the Company’s business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $1.21 billion, an increase of $156.1 million, or 14.8%, compared to $1.06 billion at December 31, 2025.

The increase in the business lending portfolio was primarily driven by the acquisition of WFB and increased commercial and industrial loan production, partially offset by loan amortization.

Construction and development loans totaled $261.8 million at June 30, 2026, an increase of $113.8 million, or 76.9%, compared to $148.0 million at December 31, 2025.

The increase in construction and development loans was primarily due to the acquisition of WFB, partially offset by planned run off of loans acquired from WFB, consisting of consumer mortgage and nonowner-occupied construction loans, and conversions to permanent loans upon completion of construction.

1-4 Family loans totaled $907.4 million at June 30, 2026, an increase of $531.1 million, or 141.2%, compared to $376.2 million at December 31, 2025.

The increase in 1-4 family loans was primarily due to the acquisition of WFB.

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We will continue our strategy to allow the consumer mortgage portfolio to amortize, including those loans acquired through our acquisition of WFB.

The consumer mortgage portfolio was approximately $879.8 million a nd $224.5 million at March 31, 2026 and December 31, 2025, respectively.

The consumer mortgage portfolio was approximately $849.0 million a nd $224.5 million at June 30, 2026 and December 31, 2025, respectively.

The increase was due to the acquisition of WFB.

Our consumer mortgage portfolio is included in the 1-4 family and construction and development categories.

At March 31, 2026 , the remaining loans in the construction and development category consisted primarily of commercial properties, and t he remaining loans in the 1-4 family category consisted primarily of second mortgages, home equity loans, home equity lines of credit, and business purpose loans secured by 1-4 family residential real estate.

Nonowner-occupied loans totaled $504.8 million at March 31, 2026, an increase of $52.6 million, or 11.6%, compared to $452.1 million at December 31, 2025.

The increase in nonowner-occupied loans was primarily due to the acquisition of WFB, partially offset by loan amortization and payoffs that aligned with our continued strategy to optimize and de-risk the mix of the portfolio.

At June 30, 2026 , the remaining loans in the construction and development category consisted primarily of commercial properties, and t he remaining loans in the 1-4 family category consisted primarily of second mortgages, home equity loans, home equity lines of credit, and business purpose loans secured by 1-4 family residential real estate.

Nonowner-occupied loans totaled $512.5 million at June 30, 2026, an increase of $60.3 million, or 13.3%, compared to $452.1 million at December 31, 2025.

The increase in nonowner-occupied loans was primarily due to the acquisition of WFB, organic growth and conversions of construction and development loans to nonowner-occupied loans upon completion of construction, partially offset by loan amortization.

Loan Concentrations .

Loan concentrations are considered to exist when there are amounts loaned to multiple borrowers engaged in similar activities that would cause them to be similarly impacted by economic or other conditions.

At March 31, 2026 and December 31, 2025 , we had no concentrations of loans exceeding 10% of total loans other than loans in the categories listed in the table above.

At June 30, 2026 and December 31, 2025, we had no concentrations of loans exceeding 10% of total loans other than loans in the categories listed in the table above.

The table below sets forth the balance of owner-occupied loans by industry based on NAICS code and nonowner-occupied loans by property type as of the dates presented (dollars in thousands).

March 31, 2026

June 30, 2026

December 31, 2025

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No individual category within “All other” represents more than 4% of total owner-occupied loans.

The following table reflects contractual loan maturities of loans in our loan portfolio and the amount of such loans with fixed and variable interest rates in each maturity range at March 31, 2026 (dollars in thousands).

Adjustable-rate mortgage loans that we acquired in connection with our acquisition of WFB are reflected in the “Loans with variable rates ” portion of the table;

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We also use investment securities as collateral for certain deposits and other types of borrowings.

Investment securities represented 12% of our total assets and totaled $460.6 million at March 31, 2026, an increase of $41.8 million, or 10.0% , from $418.8 million at December 31, 2025 .

The increase in investment securities at March 31, 2026 compared to December 31, 2025 was driven primarily by a $17.7 million increase in obligations of the U.S.

Investment securities represented 11.9% of our total assets and totaled $458.5 million at June 30, 2026, an increase of $39.7 million, or 9.5% , from $418.8 million at December 31, 2025 .

The increase in investment securities at June 30, 2026 compared to December 31, 2025 was driven primarily by a $16.7 million increase in obligations of the U.S.

Treasury and U.S.

government agencies and corporations, a $14.4 million increase in residential mortgage-backed securities and a $9.0 million increase in commercial mortgage-backed securities .

Due in large part to higher interest rates and market volatility, net unrealized losses in our AFS investment securities portfolio totaled $47.2 million at March 31, 2026, compared to $45.4 million at December 31, 2025.

Due in large part to higher interest rates and market volatility, net unrealized losses in our AFS investment securities portfolio totaled $48.0 million at June 30, 2026, compared to $45.4 million at December 31, 2025.

For additional information, see Note 4.

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The table below shows the carrying value of our investment securities portfolio by investment type and the percentage that such investment type comprises of our entire portfolio as of the dates indicated (dollars in thousands).

March 31, 2026

June 30, 2026

December 31, 2025

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Securities not classified as HTM are classified as AFS and are stated at fair value.

As of March 31, 2026 , AFS securities comprised 90% of our total investment securities.

Due to the nature of the investments, current market prices, and the current interest rate environment, we determined that the declines in the fair values of the AFS and HTM securities portfolio were not attributable to credit losses at March 31, 2026 and December 31, 2025 .

The carrying values of our AFS securities are adjusted for unrealized gains or losses not attributable to credit losses as valuation allowances, and any gains or losses are reported on an after-tax basis as a component of other comprehensive (loss) income.

As of June 30, 2026, AFS securities comprised 90% of our total investment securities.

We perform a quarterly assessment to develop an estimate of expected credit losses on the investment portfolio, which considers the nature of the investments, credit ratings, current interest rate environment, the financial health of the issuer, ratings changes and outlook, explicit and implicit guarantees, and insurance programs, among other factors.

The unrealized losses in obligations of state and political subdivisions were caused by interest rate changes.

These securities generally benefit from stable, dedicated revenue sources and a legal framework that prioritizes bondholder payments, which significantly mitigates credit risk.

The unrealized losses in mortgage-backed securities were caused by interest rate changes.

These securities are either guaranteed by the U.S.

government or by a government sponsored enterprise and are generally considered to be risk-free.

We intend to hold these securities either until maturity or a forecasted recovery, and it is more likely than not that the Company will not have to sell the securities before the recovery of their amortized cost basis.

We determined that the declines in the fair values of the AFS and HTM securities portfolio were not attributable to credit losses at June 30, 2026 and December 31, 2025 .

Accordingly, no ACL was recorded related to our investment securities.

The table below sets forth the stated maturities and weighted average yields of our investment debt securities based on the amortized cost of our investment portfolio at March 31, 2026 (dollars in thousands).

The table below sets forth the stated maturities and weighted average yields of our investment debt securities based on the amortized cost of our investment portfolio at June 30, 2026 (dollars in thousands).

One Year or Less

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Weighted average yields on tax-exempt securities are calculated based on amortized cost on a fully tax equivalent basis assuming a federal tax rate of 21%, when applicable.

The following table sets forth the composition of our deposits and the percentage of each deposit type to total deposits at March 31, 2026 and December 31, 2025 (dollars in thousands).

March 31, 2026

The following table sets forth the composition of our deposits and the percentage of each deposit type to total deposits at June 30, 2026 and December 31, 2025 (dollars in thousands).

June 30, 2026

December 31, 2025

9 unchanged sentences

Total deposits

Total deposits were $3.23 billion at March 31, 2026, an increase of $882.6 million, or 37.6%, compared to $2.35 billion at December 31, 2025 .

Total deposits were $3.21 billion at June 30, 2026, an increase of $863.6 million, or 36.7%, compared to $2.35 billion at December 31, 2025 .

The increase in deposits was primarily the result of the acquisition of WFB, which increased total deposits $1.02 billion on January 1, 2026, consisting of $187.9 million and $835.5 million of noninterest-bearing deposits and interest-bearing deposits, respectively.

The increase in noninterest-bearing demand deposits, interest-bearing demand deposits, and money market deposits at March 31, 2026 compared to December 31, 2025 was primarily the result of the acquisition of WFB and organic growth.

The increase in time deposits at March 31, 2026 compared to December 31, 2025 was primarily the result of the acquisition of WFB, partially offset by the run-off of higher yielding time deposits.

Brokered time deposits decreased to $101.2 million at March 31, 2026 from $204.1 million at December 31, 2025.

We utilize brokered time deposits, entirely in denominations of less than $250,000, to secure fixed cost funding and reduce short-term borrowings.

At March 31, 2026, the balance of brokered time deposits remained below 10% of total assets, and the remaining weighted average duration was approximate ly five months with a weighted average rate o f 3.94%.

At March 31, 2026, our estimated uninsured deposits were $1.16 billion, or approximately 36% of total deposits, compared to $793.2 million, or approximately 34% of our total deposits at December 31, 2025.

The increase in noninterest-bearing demand deposits, interest-bearing demand deposits, and money market deposits at June 30, 2026 compared to December 31, 2025 was primarily the result of the acquisition of WFB and organic growth.

The increase in time deposits at June 30, 2026 compared to December 31, 2025 was primarily the result of the acquisition of WFB, partially offset by the run-off of higher yielding time deposits.

Brokered time deposits decreased to $62.9 million at June 30, 2026 from $204.1 million at December 31, 2025.

We utilize brokered time deposits, entirely in denomi nations of less than $250,000, to secure fixed cost funding and reduce short-term borrowings.

At June 30, 2026 , the balance of brokered time deposits remained below 10% of total assets, and the remaining weighted average duration was approximately four months with a weighted average rate of 3.78%.

At June 30, 2026, our estimated uninsured deposits were $1.10 billion, or approximately 34% of total deposits, compared to $793.2 million, or approximately 34% of our total deposits at December 31, 2025.

The estimates are based on the same methodologies and assumptions used for our regulatory reporting requirements.

The insured deposit data does not reflect an evaluation of all of the account ownership category distinctions that would determine the availability of deposit insurance to individual accounts based on FDIC regulations.

The following table shows scheduled maturities of time deposits in excess of the FDIC insurance limit of $250,000 at March 31, 2026 and December 31, 2025 (dollars in thousands).

March 31, 2026

The following table shows scheduled maturities of time deposits in excess of the FDIC insurance limit of $250,000 at June 30, 2026 and December 31, 2025 (dollars in thousands).

June 30, 2026

December 31, 2025

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Over twelve months

At March 31, 2026 , total borrowings included securities s old under agreements to repurchase, FHLB advances, subordinated debt issued in 2022, an d junior subordinated debentures assumed through acquisitions.

We had $18.4 million of securities sold under agreements to repurchase at March 31, 2026 and $11.2 million at December 31, 2025 .

Our advances from the FHLB were $136.0 million at March 31, 2026 , an increase of $20.0 million compared to FHLB advances of $116.0 million at December 31, 2025 .

Based on original maturities, at March 31, 2026 , $36.0 million were short-term and $100.0 million were long-term FHLB advances , compared to $36.0 million short-term and $80.0 million long-term FHLB advances at December 31, 2025 .

At June 30, 2026, total borrowings included securities s old under agreements to repurchase, FHLB advances, subordinated debt issued in 2022, an d junior subordinated debentures assumed through acquisitions.

We had $18.6 million of securities sold under agreements to repurchase at June 30, 2026 and $11.2 million at December 31, 2025.

Our advances from the FHLB were $136.0 million at June 30, 2026, an increase of $20.0 million compared to FHLB advances of $116.0 million at December 31, 2025.

Based on original maturities, at June 30, 2026, $36.0 million were short-term and $100.0 million were long-term FHLB advances , compared to $36.0 million short-term and $80.0 million long-term FHLB advances at December 31, 2025 .

FHLB advances are used to fund new loan and investment activity that is not funded by deposits or other borrowings.

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The rate charged for advances from the FHLB is directly tied to the Federal Reserve’s federal funds target rate.

As of March 31, 2026, the federal funds target rate was 3.50% to 3.75%.

The average balances and cost of short-term borrowings for the three months ended March 31, 2026 and 2025 are summarized in the table below (dollars in thousands).

As of June 30, 2026, the federal funds target rate was 3.50% to 3.75%.

The average balances and cost of short-term borrowings for the three and six months ended June 30, 2026 and 2025 are summarized in the table below (dollars in thousands).

Average Balances

Cost of Short-term Borrowings

Three months ended March 31,

Short-term FHLB advances

Three months ended June 30,

Six months ended June 30,

Three months ended June 30,

Six months ended June 30,

Federal funds purchased and short-term FHLB advances

Repurchase agreements

Total short-term borrowings

The following table sets forth certain information regarding securities sold under agreements to repurchase for the three months ended March 31, 2026 and 2025 (dollars in thousands).

Three months ended March 31,

The following table sets forth certain information regarding securities sold under agreements to repurchase for the three and six months ended June 30, 2026 and 2025 (dollars in thousands).

Three months ended June 30,

Six months ended June 30,

Repurchase agreements:

4 unchanged sentences

Weighted-average interest rate during period

The carrying value of the subordinated debt, which consists entirely of our 2032 Notes, was $16.7 million at March 31, 2026 and December 31, 2025 .

The $23.0 million and $8.8 million in junior subordinated debt at March 31, 2026 and December 31, 2025 , respectively, represented the junior subordinated debentures that we assumed through acquisitions.

The carrying value of the subordinated debt, which consists entirely of our 2032 Notes, was $16.8 million and $16.7 million at June 30, 2026 and December 31, 2025, respectively.

The $23.0 million and $8.8 million in junior subordinated debt at June 30, 2026 and December 31, 2025 , respectively, represented the junior subordinated debentures that we assumed through acquisitions.

The increase in junior subordinated debt was due to the acquisition of WFB and consisted of $9.2 million of unsecured debt obligations due to trusts and a $5.0 million loan, which matures in October 2029, related to our Southlake corporate office.

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Stockholders ’ Equity

Stockholders’ equity was $414.6 million at March 31, 2026, an increase of $113.6 million compared to December 31, 2025.

The increase was primarily attributable to the acquisition of WFB, $12.0 million of net income for the three months ended March 31, 2026, partially offset by $1.5 million for share repurchases, a $1.4 million increase in accumulated other comprehensive loss due to a decrease in the fair value of the Bank’s AFS securities portfolio, $1.5 million in dividends declared on common stock, and $0.5 million in dividends declared on the Series A Preferred Stock.

Stockholders’ equity was $420.1 million at June 30, 2026, an increase of $119.1 million compared to December 31, 2025.

The increase was primarily attributable to the acquisition of WFB, $21.5 million of net income for the six months ended June 30, 2026, partially offset by $3.2 million in dividends declared on common stock, $2.3 million for share repurchases, a $2.1 million increase in accumulated other comprehensive loss due to a decrease in the fair value of the Bank’s AFS securities portfolio, and $1.1 million in dividends declared on the Series A Preferred Stock.

Results of Operations

Performance Summary

As of and for the three months ended March 31,

Three months ended June 30,

Six months ended June 30,

Net income available to common shareholders

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The Federal Reserve Board sets various benchmark rates, including the federal funds target rate, and thereby influences the general market rates of interest, including the deposit and loan rates offered by financial institutions.

During 2025, beginning in September, the Federal Reserve reduced the federal funds target rate three times by 75 basis points on a cumulative basis to 3.50% to 3.75%, where it remained as of May 8, 2026.

Accordingly, the prevailing federal funds target rate during the three months ended March 31, 2026 was lower than during the three months ended March 31, 2025.

Accordingly, the prevailing federal funds target rate during the three and six months ended June 30, 2026 was lower than during the three and six months ended June 30, 2025.

For additional discussion, see Certain Events That Affect Period-over-Period Comparability – Changing Inflation and Interest Rates.

Three months ended March 31, 2026 vs.

three months ended March 31, 2025 .

Net interest income increased 78.0% to $32.7 million for the three months ended March 31, 2026 compared to $18.3 million for the same period in 2025.

Three months ended June 30, 2026 vs.

three months ended June 30, 2025 .

Net interest income increased 70.3% to $33.4 million for the three months ended June 30, 2026 compared to $19.6 million for the same period in 2025.

The increase was primarily due to a higher average balance of, and an increase in the yield on, the loan portfolio, partially offset by an increase in the average balance of interest-bearing demand deposits and time deposits.

Average loans increased by $987.0 million for the three months ended March 31, 2026 primarily due to the acquisition of WFB, which, in addition to higher loan yields, resulted in a $17.4 million increase in interest income on loans compared to the same period in 2025.

Average brokered time deposits were $152.3 million for the three months ended March 31, 2026 compared to $252.3 million during the three months ended March 31, 2025, which along with lower rates paid, resulted in a $1.5 million decrease in interest expense compared to the three months ended March 31, 2025.

Average interest-bearing demand deposits increased by $517.9 million, which, combined with an increase in rates, resulted in a $3.6 million increase in interest expense in the first quarter of 2026 compared to the same period in 2025.

Average loans increased by $945.4 million for the three months ended June 30, 2026 primarily due to the acquisition of WFB, which, in addition to higher loan yields, resulted in a $16.6 million increase in interest income on loans compared to the same period in 2025.

Average brokered time deposits were $73.5 million for the three months ended June 30, 2026 compared to $255.4 million during the three months ended June 30, 2025, which along with lower rates paid, resulted in a $2.3 million decrease in interest expense for the three months ended June 30, 2026 compared to the same period in 2025.

Average interest-bearing demand deposits increased by $526.2 million, which, combined with an increase in rates, resulted in a $3.3 million increase in interest expense in the second quarter of 2026 compared to the same period in 2025.

A higher average balance of time deposits partially offset by a decrease in rates paid on time deposits resulted in a $2.0 million increase in interest expense compared to the same period in 2025.

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Rates paid on interest-bearing liabilities decreased primarily as a result of the overall decrease in prevailing interest rates.

Interest income was $53.2 million for the three months ended March 31, 2026, compared to $34.4 million for the same period in 2025.

Loan interest income made up substantially all of our interest income for the three months ended March 31, 2026 and 2025, although interest on investment securities contributed 7.7% of interest income during the first quarter of 2026 compared to 9.7% during the first quarter of 2025.

The overall yield on interest-earning assets was 5.86% and 5.39% for the three months ended March 31, 2026 and 2025, respectively.

The loan portfolio yielded 6.28% and 5.88% for the three months ended March 31, 2026 and 2025, respectively, while the yield on the investment portfolio was 3.44% for the three months ended March 31, 2026 compared to 3.10% for the three months ended March 31, 2025.

The overall yield on interest-earning assets increased 47 basis points for the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025 and was primarily driven by a 40 basis point increase in the yield on the loan portfolio and a 34 b asis point increase in the yield on the investment securities portfolio.

Interest expense was $20.5 million for the three months ended March 31, 2026, an increase of $4.5 million compared to interest expense of $16.1 million for the three months ended March 31, 2025.

Interest income was $53.2 million for the three months ended June 30, 2026, compared to $35.4 million for the same period in 2025.

Loan interest income made up substantially all of our interest income for the three months ended June 30, 2026 and 2025, although interest on investment securities contributed 8.5% of interest income during the second quarter of 2026 compared to 10.3% during the second quarter of 2025.

The overall yield on interest-earning assets was 5.83% and 5.45% for the three months ended June 30, 2026 and 2025, respectively.

The loan portfolio yielded 6.28% and 5.94% for the three months ended June 30, 2026 and 2025, respectively, while the yield on the investment portfolio was 3.52% for the three months ended June 30, 2026 compared to 3.22% for the three months ended June 30, 2025.

The overall yield on interest-earning assets increased 38 basis points for the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025 and was primarily driven by a 34 basis point increase in the yield on the loan portfolio and a 30 b asis point increase in the yield on the investment securities portfolio.

Interest expense was $19.8 million for the three months ended June 30, 2026, an increase of $4.0 million compared to interest expense of $15.7 million for the three months ended June 30, 2025.

An increase in interest expense of $4.9 million resulted from an increase in the volume of interest-bearing liabilities, primarily interest-bearing demand deposits and time deposits.

A decrease of $0.8 million resulted from the decrease in the cost of interest-bearing liabilities, primarily time deposits and brokered time deposits.

Average interest-bearing liabilities increased by $789.9 million for the three months ended June 30, 2026 compared to the same period in 2025, while average interest-bearing deposits increased by $682.3 million, primarily due to an increase in average interest-bearing demand deposits and average time deposits.

We increased rates on our interest-bearing demand deposits during the second quarter of 2026 compared to the second quarter of 2025 to attract and retain lower cost deposits relative to higher cost short-term borrowings and brokered time deposits, and the interest-bearing demand deposits acquired from WFB had a higher rate than legacy interest-bearing demand deposits.

Average time deposits increased due to the acquisition of WFB;

however, we reduced rates on our time deposits during the second quarter of 2026 compared to the second quarter of 2025 due to lower prevailing market interest rates .

The cost of interest-bearing deposits decreased 34 basis points to 2.72% for the three months ended June 30, 2026 compared to 3.06% for the three months ended June 30, 2025 primarily as a result of a lower average balance of, and a decrease in rates paid on, brokered time deposits and a decrease in rates paid on time deposits, partially offset by a higher average balance of time deposits and a higher average balance of, and an increase in the rates paid on, interest-bearing demand deposits.

The cost of interest-bearing liabilities decreased 31 basis points to 2.82% for the three months ended June 30, 2026 compared to 3.13% for the same period in 2025.

Net interest margin was 3.67% for the three months ended June 30, 2026, an increase of 64 basis points from 3.03% for the three months ended June 30, 2025.

The increase in net interest margin was primarily driven by a 38 basis point increase in the yield on interest-earning assets and a 31 basis point decrease in the cost of interest-bearing liabilities .

Average Balances and Yields .

The following table sets forth average balance sheet data, including all major categories of interest-earning assets and interest-bearing liabilities, together with the interest earned or paid and the average yield or rate paid on each such category for the three months ended June 30, 2026 and 2025.

Averages presented in the table below are daily averages (dollars in thousands).

Three months ended June 30,

Yield/ Rate (1)

Interest-earning assets:

Interest-earning balances with banks

Total interest-earning assets

Cash and due from banks

Intangible assets

Allowance for credit losses

Liabilities and stockholders’ equity

Interest-bearing liabilities:

Interest-bearing demand deposits

Brokered demand deposits

Savings deposits

Brokered time deposits

Time deposits

Total interest-bearing deposits

Short-term borrowings (2)

Long-term debt

Total interest-bearing liabilities

Noninterest-bearing deposits

Other liabilities

Stockholders’ equity

Total liabilities and stockholders’ equity

Net interest income/net interest margin

Interest income and net interest margin are expressed as a percentage of average interest-earning assets outstanding for the indicated periods and are not presented on a tax equivalent basis.

Interest expense is expressed as a percentage of average interest-bearing liabilities for the indicated periods.

For additional information, see Discussion and Analysis of Financial Condition – Borrowings.

Three months ended June 30, 2026 vs.

Three months ended June 30, 2025

Interest income:

Interest-earning balances with banks

Total interest-earning assets

Interest expense:

Interest-bearing demand deposits

Brokered demand deposits

Savings deposits

Brokered time deposits

Time deposits

Short-term borrowings

Long-term debt

Total interest-bearing liabilities

Change in net interest income

Changes in interest due to both volume and rate have been allocated entirely to rate.

Six months ended June 30, 2026 vs.

six months ended June 30, 2025 .

Net interest income increased 74.0% to $66.1 million for the six months ended June 30, 2026 compared to $38.0 million for the same period in 2025.

Average loans increased by $966.1 million for the six months ended June 30, 2026 primarily due to the acquisition of WFB, which, in addition to higher loan yields, resulted in a $34.0 million increase in interest income on loans compared to the same period in 2025.

Average brokered time deposits were $112.7 million for the six months ended June 30, 2026 compared to $253.8 million during the six months ended June 30, 2025, which along with lower rates paid, resulted in a $3.8 million decrease in interest expense for the six months ended June 30, 2026 compared to the same period in 2025.

Average interest-bearing demand deposits increased by $522.1 million, which, combined with an increase in rates, resulted in a $6.9 million increase in interest expense in the six months ended June 30, 2026 compared to the same period in 2025.

A higher average balance of time deposits partially offset by a decrease in rates paid on time deposits resulted in a $4.1 million increase in interest expense compared to the same period in 2025.

Average noninterest-bearing deposits increased by $191.1 million.

Our yield on interest-earning assets increased primarily due to an increase in the average balance of, and the yield on, the loan portfolio.

Rates paid on interest-bearing liabilities decreased primarily as a result of the overall decrease in prevailing interest rates.

Interest income was $106.4 million for the six months ended June 30, 2026, compared to $69.8 million for the same period in 2025.

Loan interest income made up substantially all of our interest income for the six months ended June 30, 2026 and 2025, although interest on investment securities contributed 8.1% of interest income during the six months ended June 30, 2026 compared to 10.0% during the six months ended June 30, 2025.

The overall yield on interest-earning assets was 5.85% and 5.42% for the six months ended June 30, 2026 and 2025, respectively.

The loan portfolio yielded 6.28% and 5.91% for the six months ended June 30, 2026 and 2025, respectively, while the yield on the investment portfolio was 3.48% for the six months ended June 30, 2026 compared to 3.16% for the six months ended June 30, 2025.

The overall yield on interest-earning assets increased 43 basis points for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 and was primarily driven by a 37 basis point increase in the yield on the loan portfolio and a 32 b asis point increase in the yield on the investment securities portfolio.

Interest expense was $40.3 million for the six months ended June 30, 2026, an increase of $8.5 million compared to interest expense of $31.8 million for the six months ended June 30, 2025.

An increase in interest expense of $10.1 million resulted from an increase in the volume of interest-bearing liabilities, primarily interest-bearing deposits and time deposits.

A decrease of $1.6 million resulted from the decrease in the cost of interest-bearing liabilities, primarily time deposits and brokered time deposits.

Average interest-bearing liabilities increased by $812.8 million for the three months ended March 31, 2026 compared to the same period in 2025, while average interest-bearing deposits increased by $774.9 million, primarily due to an increase in average interest-bearing demand deposits and average time deposits.

We increased rates on our interest-bearing demand deposits during the first quarter of 2026 compared to the first quarter of 2025 to attract and retain lower cost deposits relative to higher cost short-term borrowings and brokered time deposits, and the interest-bearing demand deposits acquired from WFB had a higher rate than legacy interest-bearing demand deposits.

Average interest-bearing liabilities increased by $801.3 million for the six months ended June 30, 2026 compared to the same period in 2025, while average interest-bearing deposits increased by $728.4 million, primarily due to an increase in average interest-bearing demand deposits and average time deposits.

We increased rates on our interest-bearing demand deposits during the six months ended June 30, 2026 compared to the six months ended June 30, 2025 to attract and retain lower cost deposits relative to higher cost short-term borrowings and brokered time deposits, and the interest-bearing demand deposits acquired from WFB had a higher rate than legacy interest-bearing demand deposits.

Average time deposits increased due to the acquisition of WFB;

however, we reduced rates on our time deposits during the first quarter of 2026 compared to the first quarter of 2025 due to lower prevailing market interest rates .

The cost of deposits decreased 30 basis points to 2.85% for the three months ended March 31, 2026 compared to 3.15% for the three months ended March 31, 2025 primarily as a result of a lower average balance of, and a decrease in rates paid on, brokered time deposits and a decrease in rates paid on time deposits, partially offset by a higher average balance of time deposits and a higher average balance of, and an increase in the rates paid on, interest-bearing demand deposits.

The cost of interest-bearing liabilities decreased 28 basis points to 2.94% for the three months ended March 31, 2026 compared to 3.22% for the same period in 2025.

Net interest margin was 3.59% for the three months ended March 31, 2026, an increase of 72 basis points from 2.87% for the three months ended March 31, 2025.

however, we reduced rates on our time deposits during the six months ended June 30, 2026 compared to the six months ended June 30, 2025 due to lower prevailing market interest rates .

The cost of interest-bearing deposits decreased 31 basis points to 2.79% for the six months ended June 30, 2026 compared to 3.10% for the six months ended June 30, 2025 primarily as a result of a lower average balance of, and a decrease in rates paid on, brokered time deposits and a decrease in rates paid on time deposits, partially offset by a higher average balance of time deposits and a higher average balance of, and an increase in the rates paid on, interest-bearing demand deposits.

The cost of interest-bearing liabilities decreased 30 basis points to 2.88% for the six months ended June 30, 2026 compared to 3.18% for the same period in 2025.

Net interest margin was 3.63% for the six months ended June 30, 2026, an increase of 68 basis points from 2.95% for the six months ended June 30, 2025.

The increase in net interest margin was primarily driven by a 43 basis point increase in the yield on interest-earning assets and a 30 basis point decrease in the cost of interest-bearing liabilities .

Average Balances and Yields .

Averages presented in the table below are daily averages (dollars in thousands).

Three months ended March 31,

Six months ended June 30,

Yield/ Rate (1)

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For additional information, see Discussion and Analysis of Financial Condition – Borrowings.

Three months ended March 31, 2026 vs.

Three months ended March 31, 2025

Six months ended June 30, 2026 vs.

Six months ended June 30, 2025

Interest income:

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We expect to continue to develop new products that generate noninterest income, and enhance our existing products, in order to diversify our revenue sources.

The following table illustrates the primary components of noninterest income for the three months ended March 31, 2026, compared to the three months ended March 31, 2025 (dollars in thousands).

Three months ended March 31,

The following table illustrates the primary components of noninterest income for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025 (dollars in thousands).

Three months ended June 30,

Increase (Decrease)

Six months ended June 30,

Increase (Decrease)

Noninterest income:

Service charges on deposit accounts

Loss on sale or disposition of fixed assets, net

Loss on sale of other real estate owned, net

Gain on call or sale of investment securities, net

Loss on sale or disposition of bank premises and equipment, net

Gain (loss) on sale of other real estate owned, net

Gain on sale of loans

4 unchanged sentences

Total noninterest income

Three months ended March 31, 2026 vs.

three months ended March 31, 2025 .

Total noninterest income increased $1.0 million, or 48.2% , to $3.0 million for the three months ended March 31, 2026 compared to $2.0 million for the three months ended March 31, 2025 .

The increase in noninterest income was primarily attributable to a $0.2 million increase in interchange fees, a $0.2 million increase in income from BOLI, a $0.2 million increase in service charges on deposit accounts, a $0.2 million increase in change in fair value of equity securities, and a $0.3 million increase in other operating income, partially offset by a $0.1 million increase in loss on sale of other real estate owned.

The increase in other operating income was primarily attributable to a $0.1 million increase in distributions from other investments and a $0.1 million increase in wealth management income.

Three months ended June 30, 2026 vs.

three months ended June 30, 2025 .

Total noninterest income increased $0.5 million, or 18.0%, to $3.1 million for the three months ended June 30, 2026 compared to $2.6 million for the three months ended June 30, 2025.

The increase in noninterest income was primarily attributable to a $0.2 million increase in income from BOLI, a $0.1 million increase in interchange fees, a $0.1 million increase in service charges on deposit accounts, a $0.1 million increase in change in fair value of equity securities, partially offset by a $0.1 million decrease in other operating income.

The increases were primarily related to the acquisition of WFB on January 1, 2026.

The decrease in other operating income was primarily attributable to $0.3 million of income from insurance proceeds received for damages to a property recorded in other real estate owned in the second quarter of 2025, partially offset by a $0.1 million increase in distributions from other investments and a $0.1 million increase in wealth management income.

Six months ended June 30, 2026 vs.

six months ended June 30, 2025 .

Total noninterest income increased $1.4 million, or 31.1%, to $6.1 million for the six months ended June 30, 2026 compared to $4.6 million for the six months ended June 30, 2025.

The increase in noninterest income was primarily attributable to a $0.4 million increase in income from BOLI, a $0.3 million increase in interchange fees, a $0.3 million increase in service charges on deposit accounts, a $0.3 million increase in change in fair value of equity securities and a $0.1 million increase in other operating income.

The increases were primarily related to the acquisition of WFB on January 1, 2026.

The increase in other operating income was primarily attributable to a $0.2 million increase in distributions from other investments and a $0.2 million increase in wealth management income, partially offset by $0.3 million of income from insurance proceeds received for damages to a property recorded in other real estate owned in the second quarter of 2025.

Noninterest Expense

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Our goal is to manage our costs within the framework of our operating strategy of generating consistent, quality earnings.

The following table illustrates the primary components of noninterest expense for the three months ended March 31, 2026, compared to the three months ended March 31, 2025 (dollars in thousands).

Three months ended March 31,

The following table illustrates the primary components of noninterest expense for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025 (dollars in thousands).

Three months ended June 30,

Increase (Decrease)

Six months ended June 30,

Increase (Decrease)

Noninterest expense:

6 unchanged sentences

Total noninterest expense

Three months ended March 31, 2026 vs.

three months ended March 31, 2025 .

Total noninterest expense was $22.8 million for the three months ended March 31, 2026, an increase of $6.6 million, or 40.7%, compared to the same period in 2025.

Three months ended June 30, 2026 vs.

three months ended June 30, 2025 .

Total noninterest expense was $24.7 million for the three months ended June 30, 2026, an increase of $8.0 million, or 47.7%, compared to the same period in 2025.

The increase was primarily driven by a $3.2 million increase in salaries and employee benefits, a $2.4 million increase in acquisition expense, a $0.6 million increase in depreciation and amortization, a $0.5 million increase in professional fees, a $0.3 million increase in occupancy, a $0.3 million increase in data processing and a $0.7 million increase in other operating expense.

The increases were primarily related to the acquisition of WFB on January 1, 2026.

The increase in other operating expense was primarily attributable to a $0.4 million increase in branch services, a $0.2 million increase in FDIC assessments, a $0.2 million increase in software expense and a $0.1 million increase in telecommunications expense, partially offset by a $0.2 million decrease in other real estate expense and a $0.1 million decrease in bank shares taxes.

Six months ended June 30, 2026 vs.

six months ended June 30, 2025 .

Total noninterest expense was $47.5 million for the six months ended June 30, 2026, an increase of $14.6 million, or 44.2%, compared to the same period in 2025.

The increase was primarily driven by a $6.5 million increase in salaries and employee benefits, a $4.0 million increase in acquisition expense, a $1.2 million increase in depreciation and amortization, a $0.6 million increase in occupancy, a $0.6 million increase in data processing and a $0.9 million increase in other operating expense.

The increases were primarily related to the acquisition of WFB on January 1, 2026.

The increase in other operating expense was primarily attributable to a $0.2 million increase in FDIC assessments.

The increase in other operating expense was primarily attributable to a $0.4 million increase in FDIC assessments, a $0.3 million increase in software expense, a $0.2 million increase in telecommunications expense and $0.2 million increase in office supplies and postage, partially offset by a $0.2 million decrease in bank shares taxes.

Income Tax Expense

Income tax expense for the three months ended March 31, 2026 and 2025 was $2.9 million and $1.4 million, respectively.

The effective tax rate for the three months ended March 31, 2026 and 2025 was 19.4% and 18.4%, respectively.

Income tax expense for the three months ended June 30, 2026 and 2025 was $2.1 million and $0.9 million, respectively.

The effective tax rate for the three months ended June 30, 2026 and 2025 was 18.4% and 17.2%, respectively.

Income tax expense for the six months ended June 30, 2026 and 2025 was $5.0 million and $2.4 million, respectively.

The effective tax rate for the six months ended June 30, 2026 and 2025 was 18.9% and 17.9%, respectively.

For the three months and six months ended June 30, 2026 and 2025, the effective tax rate differed from the statutory tax rate of 21% primarily due to tax-exempt interest income earned on certain loans and investment securities and income from BOLI.

Risk Management

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Although some value may be recovered on such a loan, it is not significant in relation to the amount borrowed.

At March 31, 2026 and December 31, 2025, there were no loans classified as Loss, while there were $24,000 and no loans, respectively, classified as Doubtful, $43.0 million and $38.1 million, respectively, of loans classified as Substandard, and $9.2 million and $9.7 million, respectively, of loans classified as Special Mention.

At June 30, 2026 and December 31, 2025 , there were no loans classified as Loss, while there were $23,000 and no loans, respectively, classified as Doubtful, $51.1 million and $38.1 million, respectively, of loans classified as Substandard, and $9.2 million and $9.7 million, respectively, of loans classified as Special Mention.

An independent loan review is conducted annually, whether internally or externally, on at least 40% of commercial loans utilizing a risk-based approach designed to maximize the effectiveness of the review.

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The CECL methodology requires that lifetime expected credit losses be recorded at the time the financial asset is originated or acquired and be adjusted each period through a provision for credit losses for changes in the expected lifetime credit losses.

The ACL was $36.0 million and $26.3 million at March 31, 2026 and December 31, 2025 , respectively.

The ACL was $36.3 million and $26.3 million at June 30, 2026 and December 31, 2025, respectively.

On January 1, 2026, we recorded an $11.7 million ACL due to the acquisition of WFB.

1 unchanged sentence

The ACL is generally increased by the provision for credit losses and decreased by charge-offs, net of recoveries.

The reversal of credit losses for the three months ended March 31, 2026 was primarily due to a decrease in total loans during the quarter, changes in the economic forecast and the completion of our CECL allowance model recalibration .

The reversal of credit losses for the three months ended March 31, 2025 was primarily due to net recoveries on one loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida.

The provision for credit losses for the three months ended June 30, 2026 was primarily due to adjustments to qualitative factors, partially offset by a decrease in total loans.

The reversal of credit losses for the six months ended June 30, 2026 was primarily due to a decrease in total loans during the period, changes in the economic forecast and the completion of our CECL allowance model recalibration .

The provision for credit losses for the three months ended June 30, 2025 was primarily due to changes in the economic forecast and loan mix.

The reversal of credit losses for the six months ended June 30, 2025 was primarily due to a $3.3 million recovery during the first quarter of 2025 of loans previously charged off as a result of a property insurance settlement related to one loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida.

Periodically, we complete a CECL allowance model recalibration.

This process, which was completed in the first quarter of 2026, includes peer group analysis, updates to our probability of default and loss-given default models, including prepayment and curtailment assumptions, and qualitative factor scorecard ranges, as needed.

The changes resulting from the model recalibration reduced the ACL by approximately $3.0 million and $0.5 million during the three months ended March 31, 2026 and 2025, respectively.

The changes resulting from the model recalibration reduced the ACL by approximately $3.0 million and $0.5 million during the six months ended June 30, 2026 and 2025, respectively.

Refer to Note 1.

1 unchanged sentence

The following table presents the allocation of the ACL by loan category and the percentage of loans in each loan category to total loans as of the dates indicated (dollars in thousands).

March 31, 2026

June 30, 2026

December 31, 2025

8 unchanged sentences

The following table presents the amount of the ACL allocated to each loan category as a percentage of total loans as of the dates indicated.

March 31, 2026

June 30, 2026

December 31, 2025

7 unchanged sentences

The table below reflects the activity in the ACL and key ratios for the periods indicated (dollars in thousands).

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

Allowance at beginning of period

1 unchanged sentence

ACL on PSL loans at acquisition

Reversal of credit losses on loans (1)

Provision for (reversal of) credit losses on loans (1)

Net (charge-offs) recoveries

5 unchanged sentences

Nonaccrual loans to total loans - period end

For the three months ended March 31, 2026, the $2.1 million reversal of credit losses on the consolidated statement of income includes a $1.8 million reversal of credit losses on loans and a $0.3 million reversal of credit losses on unfunded loan commitments.

For the three months ended March 31, 2025, the $3.6 million reversal of credit losses on the consolidated statement of income includes a $3.7 million reversal of credit losses on loans and a $0.1 million provision for credit losses on unfunded loan commitments.

The ACL to total loans decreased to 1.17% at March 31, 2026 compared to 1.25% at March 31, 2025 , and the ACL to nonaccrual loans ratio decreased to 177.0% at March 31, 2026 compared to 473.3% at March 31, 2025 .

The decrease in the ACL to total loans compared to March 31, 2025 was primarily due to the completion of our CECL allowance model recalibration and changes in the economic forecast.

The decrease in ACL to nonaccrual loans compared to March 31, 2025 was primarily due to an increase in nonaccrual loans.

Nonaccrual loans were $20.3 million, or 0.66% of total loans, at March 31, 2026 , an increase of $14.7 million compared to $5.6 million, or 0.27% of total loans, at March 31, 2025 .

The increase in nonaccrual loans was primarily a ttributable to one primarily owner-occupied commercial real estate relationship totaling $6.6 million and nonperforming loans acquired from WFB totaling $3.2 million.

For the three months ended June 30, 2026, the $0.3 million provision for credit losses on the consolidated statement of income includes a $0.4 million provision for credit losses on loans and a $0.1 million reversal of credit losses on unfunded loan commitments.

For the six months ended June 30, 2026, the $1.8 million reversal of credit losses on the consolidated statement of income includes a $1.4 million reversal of credit losses on loans and a $0.4 million reversal of credit losses on unfunded loan commitments.

For the three months ended June 30, 2025, the $0.1 million provision for credit losses on the consolidated statement of income includes a $0.2 million provision for credit losses on loans and a $31,000 reversal of credit losses on unfunded loan commitments.

For the six months ended June 30, 2025, the $3.5 million reversal of credit losses on the consolidated statement of income includes a $3.5 million reversal of credit losses on loans and a $68,000 provision for credit losses on unfunded loan commitments.

The ACL to total loans decreased to 1.18% at June 30, 2026 compared to 1.26% at June 30, 2025, and the ACL to nonaccrual loans ratio decreased to 196.4% at June 30, 2026 compared to 357.2% at June 30, 2025.

The decrease in the ACL to total loans compared to June 30, 2025 was primarily due to the completion of our CECL allowance model recalibration and changes in the economic forecast.

The decrease in ACL to nonaccrual loans compared to June 30, 2025 was primarily due to an increase in nonaccrual loans.

Nonaccrual loans were $18.5 million, or 0.60% of total loans, at June 30, 2026, an increase of $11.0 million compared to $7.5 million, or 0.35% of total loans, at June 30, 2025.

The increase in nonaccrual loans was primarily attributable to the downgrade of one primarily owner-occupied commercial real estate relationship totaling $6.6 million, one construction and development relationship totaling $1.6 million and loans acquired from WFB totaling $1.2 million.

The following table presents the allocation of net (charge-offs) recoveries by loan category for the periods indicated (dollars in thousands).

Three months ended March 31,

Three months ended June 30,

Net Recoveries (Charge-offs)

8 unchanged sentences

Commercial and industrial

Six months ended June 30,

Net Recoveries (Charge-offs)

Average Balance

Ratio of Net Charge-offs (Recoveries) to Average Loans

Net Recoveries (Charge-offs)

Average Balance

Ratio of Net Charge-offs (Recoveries) to Average Loans

Mortgage loans on real estate:

Construction and development

Commercial real estate

Commercial and industrial

Charge-offs reflect the realization of losses in the portfolio that were recognized previously through the provision for credit losses on loans.

Net charge-offs include recoveries of amounts previously charged off.

For the three months ended March 31, 2026, net charge-offs were $0.3 million, or 0.01%, of the average loan balance for the period.

Net charge-offs during the three months ended March 31, 2026 were primarily attributable to commercial and industrial loans .

Net recoveries for the three months ended March 31, 2025 were $3.4 million , or 0.16%, of the average loan balance for the period.

Net recoveries during the three months ended March 31, 2025 were primarily the result of a property insurance settlement related to a loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida.

Management believes the ACL at March 31, 2026 is sufficient to provide adequate protection against losses in our portfolio.

For the three months ended June 30, 2026, net charge-offs were $0.1 million, or less than 0.01%, of the average loan balance for the period.

For the six months ended June 30, 2026, net charge-offs were $0.4 million, or 0.01%, of the average loan balance for the period.

For the three months ended June 30, 2025, net recoveries were $13,000 , or less than 0.01%, of the average loan balance for the period.

For the six months ended June 30, 2025, net recoveries were $3.4 million, or 0.16%, of the average loan balance for the period.

Net recoveries during the six months ended June 30, 2025 were primarily the result of a property insurance settlement related to a loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida.

Management believes the ACL at June 30, 2026 is sufficient to provide adequate protection against losses in our portfolio.

However, there can be no assurance that this allowance will prove to be adequate over time to cover ultimate losses in connection with our loans.

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A loan may be returned to accrual status when all the principal and interest amounts contractually due are brought current and future principal and interest amounts contractually due are reasonably assured, which is typically evidenced by a sustained period of repayment performance by the borrower.

Nonperforming loans were $20.4 million, or 0.66% of total loans, at March 31, 2026, an increase of $11.1 million compared to $9.3 million, or 0.43% of total loans, at December 31, 2025.

The increase in nonperforming loans compared to December 31, 2025 was primarily a ttributable to one primarily owner-occupied commercial real estate relationship totaling $6.6 million and nonperforming loans acquired from WFB totaling $3.2 million.

Nonperforming loans were $19.4 million, or 0.63% of total loans, at June 30, 2026, an increase of $10.1 million compared to $9.3 million, or 0.43% of total loans, at December 31, 2025.

The increase in nonperforming loans compared to December 31, 2025 was primarily a ttributable to the downgrade of one primarily owner-occupied commercial real estate relationship totaling $6.6 million, one construction and development relationship totaling $1.6 million and loans acquired from WFB totaling $1.2 million.

Loan Modifications to Borrowers Experiencing Financial Difficulty.

2 unchanged sentences

Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off.

During the three months ended March 31, 2026 and 2025 , we did not provide any modifications under these circumstances to borrowers experiencing financial difficulty.

During the six months ended June 30, 2026 and 2025 , we did not provide any modifications under these circumstances to borrowers experiencing financial difficulty.

Other Real Estate Owned.

2 unchanged sentences

Real property no longer used in the Bank’s business operations is recorded at the lower of its net book value or fair value at the date of transfer to other real estate owned.

For the three months ended March 31, 2026, additions to other real estate owned were $0.8 million, which were driven by transfers of 1-4 family loans to other real estate owned.

Other real estate owned with a cost basis of $0.7 million was sold during the three months ended March 31, 2026 resulting in a loss of $0.1 million.

No other real estate owned was sold during the three months ended March 31, 2025 .

At March 31, 2026, approximately $4.5 million of loans secured by 1-4 family residential property were in the process of foreclosure.

For the six months ended June 30, 2026 , additions to other real estate owned were $2.4 million, which were driven by transfers of a $1.3 million owner-occupied commercial real estate loan and 1-4 family loans to other real estate owned.

Other real estate owned with a cost basis of $0.2 million and $0.9 million was sold during the three and six months ended June 30, 2026 , respectively, resulting in a gain of $4,000 and a loss of $0.1 million for the respective periods.

Other real estate owned with a cost basis of $0.2 million wa s sold during the three and six months ended June 30, 2025, resulting in a gain of $29,000 for the periods.

During the three and six months ended June 30, 2026, we recorded a $0.1 million write-down of other real estate owned related to a former branch location based on a third-party appraisal.

During the three and six months ended June 30, 2025, we recorded $0.3 million of write-downs of other real estate owned related to a property that was part of the loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida and a former branch location based on a third-party appraisal.

At June 30, 2026, approximatel y $2.1 million of loans secured by 1-4 family residential property were in the process of foreclosure.

The table below provides details of our other real estate owned as of the dates indicated (dollars in thousands).

March 31, 2026

June 30, 2026

December 31, 2025

2 unchanged sentences

Changes in our other real estate owned are summarized in the table below for the periods indicated (dollars in thousands).

Three months ended March 31,

Six months ended June 30,

Balance, beginning of period

8 unchanged sentences

however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings.

The Company did not recognize any net impact in other income resulting from fair value adjustments during the three months ended March 31, 2026 and 2025 .

At March 31, 2026 and December 31, 2025 , we had notional amo unts of $162.8 million and $180.8 million, respectively, in interest rate swap contracts with customers and $162.8 million and $180.8 million, respectively, in offsetting interest rate swap contracts with other financial institutions.

At March 31, 2026 and December 31, 2025 , the fair value of the swap contracts consisted of gross assets of $11.4 million and $11.7 million, respectively, and gross liabilities of $11.4 million and $11.7 million, respectively, record ed in “Other assets” and “Accrued taxes and other liabilities,” respectively, in the accompanying consolidated balance sheets.

The Company did not recognize any net impact in other income resulting from fair value adjustments during the three and six months ended June 30, 2026 and 2025 .

At June 30, 2026 and December 31, 2025 , we had notional amo unts of $158.3 million and $180.8 million, respectively, in interest rate swap contracts with customers and $158.3 million and $180.8 million, respectively, in offsetting interest rate swap contracts with other financial institutions.

At June 30, 2026 and December 31, 2025 , the fair value of the swap contracts consisted of gross assets of $11.5 million and $11.7 million, respectively, and gross liabilities of $11.5 million and $11.7 million, respectively, record ed in “Other assets” and “Accrued taxes and other liabilities,” respectively, in the accompanying consolidated balance sheets.

For additional information, see Note 9.

32 unchanged sentences

The goal of our asset/liability management is for the Bank to maintain a net interest income at risk in an up or down 100 basis point environment at less than (5)%.

At March 31, 2026 , the Bank was within the policy guidelines for asset/liability management.

The table below de picts the estimated impact on net interest income of immediate changes in interest rates at the specified levels.

As of March 31, 2026

At June 30, 2026, the Bank was within the policy guidelines for asset/liability management.

The table below depicts the estimated impact on net interest income of immediate changes in interest rates at the specified levels.

As of June 30, 2026

Changes in Interest Rates (in basis points)

19 unchanged sentences

Maintaining the ability to acquire these funds as needed in a variety of markets, and within ALCO compliance targets, is essential to ensuring our liquidity.

At March 31, 2026 and December 31, 2025 , 66% and 68%, respectively, of our total assets were funded by core deposits.

At June 30, 2026 and December 31, 2025 , 71% and 68%, respectively, of our total assets were funded by core deposits.

Our investment portfolio is another alternative for meeting our cash flow requirements.

Investment securities generate cash flow through interest payments, principal payments and maturities, and they generally have readily available markets that allow for their conversion to cash.

At March 31, 2026, 90% of our investment securities portfolio was classified as AFS, and we had gross unrealized losses in our AFS investment securities portfolio of $47.9 million and gross unrealized gains of $0.7 million.

At June 30, 2026, 90% of our investment securities portfolio was classified as AFS, and we had gross unrealized losses in our AFS investment securities portfolio of $48.6 million and gross unrealized gains of $0.6 million.

The sale of securities in a loss position would cause us to record a loss on sale of investment securities in noninterest income in the period during which the securities were sold.

Some securities are pledged to secure certain deposit types or short-term borrowings, such as FHLB advances, which impacts their liquidity.

At March 31, 2026, securities with a carrying value of $134.8 million were pledged to secure certain deposits, borrowings, and other liabilities, compared to $75.6 million i n pledged securities at December 31, 2025.

Other sources available for meeting liquidity needs include advances from the FHLB, repurchase agreements and other borrowings.

At June 30, 2026, securities with a carrying value of $125.2 million were pledged to secure certain deposits, borrowings, and other liabilities, compared to $75.6 million i n pledged securities at December 31, 2025.

Oth er sources available for meeting liquidity needs include advances from the FHLB, repurchase agreements and other borrowings.

FHLB advances may be used to meet day to day liquidity needs, particularly if the prevailing interest rate on an FHLB advance compares favorably to the rates that we would be required to pay to attract deposits.

At March 31, 2026 , the balanc e of our outstanding advances with the FHLB was $136.0 million, consisting of $36.0 million short-term and $100.0 million long-term advances based on original maturities , an increase of $20.0 million, compared to $116.0 million, consisting of $36.0 million short-term and $80.0 million long-term advances based on original maturities, at December 31, 2025.

The total amount of remaining credit available to us from the FHLB at March 31, 2026 was $619.6 million .

At March 31, 2026 , our FHLB borrowings were collateralized by a blanket pledge of certain loans totaling approximately $927.6 million .

At June 30, 2026 , the balanc e of our outstanding advances with the FHLB was $136.0 million, consisting of $36.0 million short-term and $100.0 million long-term advances based on original maturities , an increase of $20.0 million, compared to $116.0 million, consisting of $36.0 million short-term and $80.0 million long-term advances based on original maturities, at December 31, 2025 .

The total amount of remaining credit available to us from the FHLB at June 30, 2026 was $1.06 billion .

At June 30, 2026 , our FHLB borrowings were collateralized by a blanket pledge of certain loans totaling approximately $1.35 billion .

Repurchase agreements are contracts for the sale of securities which we own with a corresponding agreement to repurchase those securities at an agreed upon price and date.

Our policies limit the use of repurchase agreements to those collateralized by investment securities.

We had $18.4 milli on of repurchase agreements outstanding at March 31, 2026 and $11.2 million at December 31, 2025.

We maintain unsecured lines of credit with First National Bankers Bank and The Independent Bankers Bank totaling $60.0 million.

We had $18.6 milli on of repurchase agreements outstanding at June 30, 2026 and $11.2 million at December 31, 2025.

We maintain unsecured lines of credit with correspondent banks totaling $75.0 million.

These lines of credit are federal funds lines of credit and are used for overnight borrowing only.

The lines of credit mature at various times within the next year.

There were no outstanding balances on our unsecured lines of credit at March 31, 2026 and December 31, 2025.

At March 31, 2026 , we held $79.6 million of cash and cash equivalents and maintained approximate l y $619.6 million of available funding from FHLB advances and maintained $60.0 million in unsecured lines of credit with correspondent banks.

Cash and cash equivalents and available funding represent 65% of uninsured deposits of $1.16 billion at March 31, 2026 .

There were no outstanding balances on our unsecured lines of credit at June 30, 2026 and December 31, 2025.

At June 30, 2026 , we held $72.3 million of cash and cash equivalents and maintained approximately $1.06 billion of available funding from FHLB advances and maintained $75.0 million in unsecured lines of credit with correspondent banks.

Cash and cash equivalents and available funding represent 110% of uninsured deposits of $1.10 billion at June 30, 2026 .

We maintain an effective shelf registration statement with the SEC, which can be utilized to meet liquidity needs.

The shelf registration statement allows us to raise capital of up to $150 million from time to time through the sale of debt securities, common stock, preferred stock, depositary shares, warrants, subscription rights and units, or a combination thereof, subject to market conditions.

In addition, at March 31, 2026 and December 31, 2025, we had $17.0 million in aggregate principal amount of subordinated debt outstanding, consisting entirely of our 2032 Notes.

In addition, at June 30, 2026 and December 31, 2025, we had $17.0 million in aggregate principal amount of subordinated debt outstanding, consisting entirely of our 2032 Notes.

For additional information on our 2032 Notes, see our Annual Report, Part II.

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In recent periods, the proportion of our deposits represented by noninterest-bearing deposits has declined primarily due to rising market interest rates as customers have migrated to higher yielding alternatives.

At March 31, 2026, we held $101.2 million of brokered time deposits and no brokered demand deposits as defined for federal regulatory purposes.

At June 30, 2026, we held $62.9 million of brokered time deposits and no brokered demand deposits as defined for federal regulatory purposes.

At December 31, 2025, we held $204.1 million of brokered time deposits and de minimis brokered demand deposits as defined for federal regulatory purposes.

2 unchanged sentences

We hold QwickRate® deposits, included in our time deposit balances, which we obtain through a qualified network, to address liquidity needs when rates on such deposits compare favorably with deposit rates in our markets.

We held $11.3 million of QwickRate® deposits at March 31, 2026 and December 31, 2025.

The following table presents, by type, our funding sources, which consist of total average deposits and borrowed funds, as a percentage of total funds and the total cost of each funding source for the three months ended March 31, 2026 and 2025.

We held $11.0 million and $11.3 million of QwickRate® deposits at June 30, 2026 and December 31, 2025, respectively.

Percentage of Total Average Deposits and Borrowed Funds

Cost of Funds

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

Three months ended June 30,

Six months ended June 30,

Noninterest-bearing demand deposits

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We used the net proceeds from the offering to support the acquisition of WFB and for general corporate purposes, including organic growth and other potential acquisitions.

During the three months ended March 31, 2026 and 2025, we paid $1.1 m illion and $1.0 million in dividends on our common stock, respectively.

We declared dividends on our common stock of $0.11 per share during the three months ended March 31, 2026 compared to dividends of $0.105 per share during the three months ended March 31, 2025.

During the three months ended March 31, 2026, we paid $0.5 m illion in dividends on our Series A Preferred Stock compared to none during the three months ended March 31, 2025.

We declared dividends on our Series A Preferred Stock of $16.25 per share during the three months ended March 31, 2026 compared to none during the three months ended March 31, 2025.

Our Board has authorized a share repurchase program, and at March 31, 2026, we had 327,976 shar es of our common stock remaining authorized for repurchase under the program.

During the three months ended March 31, 2026, we paid $1.5 million to repurchas e 53,420 s hares of our common stock, compared to paying $0.6 million to repurchas e 34,992 s hares of our common stock during the three months ended March 31, 2025 .

During the three and six months ended June 30, 2026, we paid $1.5 million and $2.6 m illion, respectively, i n dividends on our common stock compared to $1.0 million and $2.1 million, for the three and six months ended June 30, 2025 , respectively .

We declared dividends on our common stock of $0.12 and $0.23 per common share during the three and six months ended June 30, 2026, respectively, compared to dividends of $0.11 and $0.215 per common share during the three and six months ended June 30, 2025, respectively.

During the three and six months ended June 30, 2026, we paid $0.5 million and $1.1 m illion, respectively, in dividends on our Series A Preferred Stock compared to none during the three and six months ended June 30, 2025.

We declared dividends on our Series A Preferred Stock of $16.25 and $32.50 per share during the three and six months ended June 30, 2026, respectively, compared to none during the three and six months ended June 30, 2025.

Our Board has authorized a share repurchase program, and at June 30, 2026, we had 300,741 shar es of our common stock remaining authorized for repurchase under the program.

The aggregate purchase price does not include the effect of excise tax incurred on net share repurchases.

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Pursuant to regulatory capital rules, the Company has made an election not to include unrealized gains and losses in the investment securities portfolio for purposes of calculating “Tier 1” capital and “Tier 2” capital.

The Company and the Bank each were in compliance with all regulatory capital requirements at March 31, 2026 and December 31, 2025 .

The Company and the Bank each were in compliance with all regulatory capital requirements at June 30, 2026 and December 31, 2025.

The Bank also was considered “well-capitalized” under the OCC’s prompt corrective action regulations as of these dates.

The following table presents the actual capital amounts and regulatory capital ratios for the Company and the Bank as of the dates presented (dollars in thousands).

The following table pre sents the actual capital amounts and regulatory capital ratios for the Company and the Bank as of the dates presented (dollars in thousands).

Minimum Capital Requirement for Bank to be Well Capitalized Under Prompt Corrective Action Rules

March 31, 2026

June 30, 2026

Investar Holding Corporation:

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The credit risk associated with these commitments is evaluated in a manner similar to the ACL.

The ACL on unfunded loan commitments is included in “Accrued taxes and other liabilities” in the accompanying consolidated balance sheets and was $0.3 million and $0.4 million at March 31, 2026 and December 31, 2025, respectively.

The ACL on unfunded loan commitments is included in “Accrued taxes and other liabilities” in the accompanying consolidated balance sheets and was $0.2 million and $0.4 million at June 30, 2026 and December 31, 2025, respectively.

Loan commitments and standby letters of credit do not necessarily represent future cash requirements, in that while the customer typically has the ability to draw upon these commitments at any time, these commitments often expire without being drawn upon in full or at all.

1 unchanged sentence

Our unfunded loan commitments and standby letters of credit outstanding are summarized below as of the dates indicated (dollars in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

3 unchanged sentences

The Company intends to continue this process as new commitments are entered into or existing commitments are renewed.

Additionally, at March 31, 2026, the Company had unfunded commitments of $1.4 million for its investment in SBIC qualified funds and other investment funds.

For the three months ended March 31, 2026 and for the year ended December 31, 2025, except as disclosed herein and in the Company’s Annual Report, we engaged in no off-balance sheet transactions that we believe are reasonably likely to have a material effect on our financial condition, results of operations, or cash flows.

Additionally, at June 30, 2026, the Company had unfunded commitments of $1.4 million for its investment in SBIC qualified funds and other investment funds.

For the six months ended June 30, 2026 and for the year ended December 31, 2025, except as disclosed herein and in the Company’s Annual Report, we engaged in no off-balance sheet transactions that we believe are reasonably likely to have a material effect on our financial condition, results of operations, or cash flows.

Lease Obligations

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The Company does not lease equipment under operating leases, nor does it have leases designated as finance leases.

The following table presents, as of March 31, 2026, contractually obligated lease payments due under non-cancelable operating leases by payment date (dollars in thousands).

The following table presents, as of June 30, 2026, contractually obligated lease payments due under non-cancelable operating leases by payment date (dollars in thousands).

Less than one year

11 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements