What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-04-29 compared with 2025-10-29 · 261 added, 327 removed, 961 unchanged (38% of the section changed)

1 unchanged sentence

CONSOLIDATED BALANCE SHEETS (dollars in thousands, except share data)

September 30,

2026 December 31,

21 unchanged sentences

Long-term advance 1,200 1,200

Other borrowings 17,000 13,000

Total borrowings 68,200 184,200

5 unchanged sentences

90,000,000 shares authorized, no par value

26,023,644 shares issued and 25,528,732 outstanding as of September 30, 2025

26,062,063 shares issued and 24,929,650 outstanding as of March 31, 2026

26,023,644 shares issued and 25,219,634 outstanding as of December 31, 2025

2 unchanged sentences

Accumulated other comprehensive income (loss) ( 135,622 ) ( 127,137 )

Treasury stock at cost ( 494,912 shares as of September 30, 2025, 469,239 shares as of December 31, 2024)

Treasury stock at cost ( 1,132,413 shares as of March 31, 2026, 804,010 shares as of December 31, 2025)

( 55,020 ) ( 35,770 )

6 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

NET INTEREST INCOME

12 unchanged sentences

Provision for credit losses

2,000 3,059 11,800 13,059

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 54,773 46,075

5 unchanged sentences

Merchant and interchange fee income

892 898 2,568 2,653

Bank owned life insurance income 976 322

1 unchanged sentence

Mortgage banking income (loss) 81 ( 51 )

Net securities gains (losses)

Net gain (loss) on Visa shares

0 ( 15 ) 0 8,996

Other income 730 858

19 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited - dollars in thousands)

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

Three months ended March 31,

Net income $ 26,478 $ 20,085

Other comprehensive income

Other comprehensive income (loss)

Change in available-for-sale and transferred securities:

Unrealized holding gain on securities available-for-sale arising during the period 25,345 40,411 31,149 20,031

Unrealized holding gain (loss) on securities available-for-sale arising during the period ( 11,245 ) 2,815

Reclassification adjustment for amortization of unrealized losses on securities transferred to held-to-maturity 489 490

Reclassification adjustment for (gains) losses included in net income 0 0 0 46

Net securities gain (loss) activity during the period ( 10,756 ) 3,305

6 unchanged sentences

Net of tax amount 12 10

Total other comprehensive income, net of tax 20,418 32,322 25,797 17,059

Total other comprehensive income (loss), net of tax ( 8,485 ) 2,621

Comprehensive income $ 17,993 $ 22,706

8 unchanged sentences

Interest Total

Balance at July 1, 2024

25,503,744 $ 126,871 $ 713,541 $ ( 170,458 ) $ ( 15,453 ) $ 654,501 $ 89 $ 654,590

Comprehensive income:

Net income 23,338 23,338 23,338

Other comprehensive income, net of tax 32,322 32,322 32,322

Cash dividends declared and paid, $ 0.48 per share

( 12,329 ) ( 12,329 ) ( 12,329 )

Treasury shares purchased under deferred directors' plan ( 3,510 ) 215 ( 215 ) 0 0

Stock activity under equity compensation plans 5,850 0 0 0

Stock based compensation expense 1,260 1,260 1,260

Balance at September 30, 2024

25,506,084 $ 128,346 $ 724,550 $ ( 138,136 ) $ ( 15,668 ) $ 699,092 $ 89 $ 699,181

Balance at July 1, 2025

25,525,105 $ 130,664 $ 757,739 $ ( 161,121 ) $ ( 17,384 ) $ 709,898 $ 89 $ 709,987

Comprehensive income:

Net income 26,404 26,404 26,404

Other comprehensive income, net of tax 20,418 20,418 20,418

Cash dividends declared and paid, $ 0.50 per share

( 12,852 ) ( 12,852 ) ( 12,852 )

Treasury shares purchased under deferred directors' plan ( 3,523 ) 224 ( 224 ) 0 0

Stock activity under equity compensation plans 7,150 0 0 0

Stock based compensation expense 3,546 3,546 3,546

Balance at September 30, 2025

25,528,732 $ 134,434 $ 771,291 $ ( 140,703 ) $ ( 17,608 ) $ 747,414 $ 89 $ 747,503

The accompanying notes are an integral part of these consolidated financial statements.

Nine Months Ended

Common Stock Retained

Earnings Accumulated Other Comprehensive

Income (Loss) Treasury

Stock Total Stockholders’

Equity Noncontrolling

Interest Total

Balance at January 1, 2025

25,509,592 $ 129,664 $ 736,412 $ ( 166,500 ) $ ( 15,754 ) $ 683,822 $ 89 $ 683,911

Impact of ASU 2023-02 adoption, net of tax ( 532 ) ( 532 ) ( 532 )

Adjusted balance January 1, 2024

25,430,566 127,692 692,228 ( 155,195 ) ( 15,553 ) 649,172 89 649,261

Comprehensive income:

Net income 20,085 20,085 20,085

Other comprehensive income, net of tax 17,059 17,059 17,059

Other comprehensive income (loss), net of tax 2,621 2,621 2,621

Cash dividends declared and paid, $ 0.50 per share

4 unchanged sentences

Stock based compensation expense 2,232 2,232 2,232

Balance at September 30, 2024

Balance at March 31, 2025

25,556,904 $ 130,243 $ 743,650 $ ( 163,879 ) $ ( 15,594 ) $ 694,420 $ 89 $ 694,509

3 unchanged sentences

Net income 26,478 26,478 26,478

Other comprehensive income, net of tax 25,797 25,797 25,797

Other comprehensive income (loss), net of tax ( 8,485 ) ( 8,485 ) ( 8,485 )

Cash dividends declared and paid, $ 0.52 per share

5 unchanged sentences

Stock based compensation expense 2,375 2,375 2,375

Balance at September 30, 2025

Balance at March 31, 2026

24,929,650 $ 137,929 $ 801,617 $ ( 135,622 ) $ ( 55,020 ) $ 748,904 $ 89 $ 748,993

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited - in thousands)

Nine Months Ended September 30, 2025 2024

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited - dollars in thousands)

Three Months Ended March 31, 2026 2025

Cash flows from operating activities:

7 unchanged sentences

Proceeds from sale of loans, including participations 4,822 2,986

Net gain on Visa shares 0 ( 8,996 )

Net (gain) loss on sales of premises and equipment 29 74

Net (gain) loss on sales and calls of securities available-for-sale 0 46

Net securities amortization 870 1,000

2 unchanged sentences

Gain on life insurance ( 171 ) 0

Tax expense (benefit) of stock award issuances 136 ( 208 )

Tax expense of stock award issuances 71 136

Interest receivable and other assets ( 5,616 ) ( 2,754 )

3 unchanged sentences

Cash flows from investing activities:

Proceeds from sale of securities available-for-sale 0 7,136

Proceeds from sale of Visa shares 0 8,996

Proceeds from maturities, calls and principal paydowns of securities available-for-sale 18,120 14,655

2 unchanged sentences

Net (increase) decrease in total loans ( 100,090 ) ( 105,600 )

Proceeds from sales of land, premises and equipment 1 8

Purchases of land, premises and equipment ( 4,715 ) ( 1,787 )

Proceeds from life insurance 0 536

Net cash from investing activities ( 91,822 ) ( 115,153 )

1 unchanged sentence

Net increase (decrease) in total deposits 216,910 59,228

Net increase (decrease) in short-term borrowings 0 30,000

Proceeds from short-term FHLB borrowings 55,000 0

Net increase (decrease) in other borrowings 4,000 0

Net proceeds from (payments on) short-term FHLB borrowings ( 120,000 ) 107,000

Proceeds from long-term FHLB borrowings 0 1,200

Net payments on short-term FHLB borrowings 0 ( 50,000 )

Common dividends paid ( 13,206 ) ( 12,847 )

Preferred dividends paid ( 13 ) ( 13 )

Payments related to equity incentive plans ( 1,292 ) ( 1,493 )

15 unchanged sentences

("LCB Investments"), which manages the Bank’s investment securities portfolio.

LCB Investments owns LCB Funding, Inc.

LCB Investments II, Inc.

owns LCB Funding, Inc.

("LCB Funding"), a real estate investment trust.

4 unchanged sentences

In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair presentation have been included.

Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for any subsequent reporting periods, including the year ending December 31, 2025.

Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for any subsequent reporting periods, including the year ending December 31, 2026.

The Company’s 2025 Annual Report on Form 10-K should be read in conjunction with these statements.

8 unchanged sentences

Significant expenses of the Company include salaries and employee benefits, net occupancy expense, equipment costs, data processing fees and supplies and professional fees.

Adoption of New Accounting Standards

On December 13, 2023, the FASB issued ASU 2023-08, "Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60):

Accounting for and Disclosure of Crypto Assets" , to provide improved accounting and disclosure guidance for crypto assets.

Stakeholders stated that current accounting guidance, except as provided in GAAP for certain specialized industries, surrounding crypto asset holdings as indefinite-lived intangible assets fails to provide financial statement users with decision-useful information.

To remedy these shortcomings, the amendments in this update require an entity present (1) crypto assets measured at fair value separately from other intangible assets reported in the balance sheet and (2) changes from the remeasurement of crypto assets separately from changes in the carrying amounts of other intangible assets in the income statement.

While the amendments in the update do not otherwise change the presentation requirements for the statement of cash flows, they do require specific presentation of cash receipts arising from crypto assets that are received as noncash consideration in the ordinary course of business and are converted nearly immediately into cash.

The amendments in the update also provide for several enhancements related to disclosure of an entity's crypto asset holdings.

For annual and interim reporting periods, the amendments in the update require an entity disclose the following information:

(1) the name, cost basis, fair value, and number of units for each significant crypto asset holding and aggregate fair values and costs bases of the crypto asset holdings that are not individually significant;

and (2) for crypto assets that are subject to contractual sale restrictions, the fair value of those crypto assets, the nature and remaining duration of the restriction(s), and the circumstances that could cause the restriction(s) to lapse.

For annual reporting periods, the amendments in the update require an entity disclose the following information:

(1) a rollforward, in the aggregate, of activity in the reporting period for crypto asset holdings, including additions (with a description of the activities that resulted in the additions), dispositions, gains, and losses;

(2) for any dispositions for crypto assets in the reporting period, the difference between the disposal price and the cost basis and a description of the activities that resulted in the dispositions;

(3) if gains and losses are not presented separately, the income statement line item in which those gains and losses are recognized;

and (4) the method for determining the cost basis of crypto assets.

The amendments in this update are effective for public business entities for annual periods beginning after December 15, 2024, including interim periods within those fiscal years.

Early adoption is permitted for both interim and annual financial statements that have not yet been issued (or made available for issuance).

If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period.

The amendments in this update require a cumulative-effect adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets) as of the beginning of the annual reporting period in which an entity adopts the amendments.

This standard did not have an impact on the consolidated financial statements based upon the nature of the Company's current operations.

On March 18, 2025, the FASB issued ASU 2025-02, "Liabilities (Topic 405):

Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No.

122" , which provided amendments to SEC paragraphs pursuant to Staff Accounting Bulletin 122.

This amendment removed text related to "Accounting for Obligations to Safeguard Crypto-Assets an Entity Holds for Its Platform Users" from ASU 405-10-S99-1, as Staff Accounting Bulletin 122 rescinded the topic.

Newly Issued But Not Yet Effective Accounting Standards

3 unchanged sentences

Given the variety of Topics amended, a broad range of entities may be affected by one or more of the amendments provided in the update.

The Company evaluated the amendments provided in the update and believes certain of the disclosure improvements are applicable to the Company's interim or annual disclosures.

The Company evaluated the amendments provided in the update and believes certain of the disclosure improvements could be applicable to the Company's interim or annual disclosures.

Subtopic 230-10, as amended, requires disclosure within the accounting policy in annual periods of where cash flows associated with derivative instruments and their related gains and losses are presented within the statement of cash flows.

5 unchanged sentences

If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment in the update will be removed from the Codification and will not become effective.

On December 14, 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740):

Improvements to Income Tax Disclosures" , to address investor requests for greater transparency in regards to income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information.

The amendments are designed to enhance transparency surrounding income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation;

and (2) income taxes paid disaggregation by taxing jurisdiction, which will allow investors to better assess, in their capital allocation decisions, how an entity's operations and related tax risks and tax planning and operational opportunities affect its income tax rate and prospects for future cash flows.

Other amendments in this update are designed to improve the effectiveness and comparability of disclosures by (1) adding disclosures of pretax income (loss) and income tax expense (benefit) to be consistent with the SEC's Regulation S-X 210.4-08(h), Rules of General Application-General Notes to Financial Statements:

Income Tax Expense;

and (2) removing disclosures that are no longer considered cost beneficial or relevant.

The amendments in this update are effective for public business entities for annual periods beginning after December 31, 2024.

Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance.

The amendments in this update should be applied on a prospective basis, however retrospective application is permitted.

The Company is currently evaluating the impact of this update on its disclosures, however does not expect the adoption of this update to have a material impact on the year-end consolidated financial statements and related footnotes.

On November 8, 2024, the FASB issued ASU 2024-03, "Income Statement—Reporting Comprehensive Income— Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses" , to improve the disclosures surrounding a public business entity's expenses and address requests from investors for more detailed information

about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, SG&A, and research and development).

Disaggregation of Income Statement Expenses" , to improve the disclosures surrounding a public business entity's expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, SG&A, and research and development).

The amendments in this update require disclosure, in the notes to the financial statements, of specified information about certain costs and expenses.

The amendments require that at each interim and annual reporting period an entity (1) Disclose the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization and (e) depreciation, depletion and amortization recognized as part of oil- and gas-producing activities (DD&A) (or other amounts of depletion expense) included in each relevant expense caption.

A relevant expense caption is an is an expense caption presented on the face of the income statement within continuing operations that contains any of the following expense categories listed in (a)-(e);

A relevant expense caption is an expense caption presented on the face of the income statement within continuing operations that contains any of the following expense categories listed in (a)-(e);

(2) Include certain amounts that are already required to be disclosed under current GAAP in the same disclosure as other disaggregation requirements;

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(1) Management has authorized and committed to funding the software project and (2) It is probable that the project will be completed and the software will be used to perform the function intended (referred to as the "probable-to-complete recognition threshold").

In evaluating the probable-to-complete recognition threshold, an entity is required to consider whether there is significant uncertainty associated with the development activities of the software (referred to as "significant development uncertainty".) The two factors to consider in determining whether the re is significant development uncertainty are whether:

In evaluating the probable-to-complete recognition threshold, an entity is required to consider whether there is significant uncertainty associated with the development activities of the software (referred to as "significant development uncertainty".) The two factors to consider in determining whether there is significant development uncertainty are whether:

(1) The software being developed has technological innovations or novel, unique, or unproven functions or features, and the uncertainty related to those technological innovations, functions, or features, if identified, has not been resolved through coding and testing and (2) The entity has determined what it needs the software to do, including whether the entity has identified or continues to substantially revise the software's significant performance requirements.

5 unchanged sentences

The Company is currently evaluating the impact of this update on its disclosures, however does not expect the adoption of this update to have a material impact on the consolidated financial statements.

On November 12, 2025, the FASB issued ASU 2025-08, "Financial Instruments - Credit Losses (Topic 326):

Purchased Loans" , to expand the population of acquired financial assets subject to the gross-up approach in Topic 326.

In accordance with the amendments in this update, loans (excluding credit cards) acquired without credit deterioration and deemed "seasoned" are purchased seasoned loans and are accounted for using the gross-up approach at acquisition.

Specifically, after

an entity determines that a loan is a non-purchased financial asset with credit deterioration ("PCD") asset based on its assessment of credit deterioration experienced since origination, the entity should apply the guidance described in the amendments to determine whether the loan is seasoned and, therefore, should be accounted for using the gross-up approach.

All non-PCD loans (excluding credit cards) that are acquired in a business combination are deemed seasoned.

Other non-PCD loans (excluding credit cards) are seasoned if they were purchased at least 90 days after origination and the acquirer was not involved in the origination of the loans.

The amendments in this update are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual periods.

The amendments in this update should be applied prospectively to loans that are acquired on or after the initial application date.

Early adoption is permitted in an interim or annual reporting period in which the financial statements have not yet been issued or made available for issuance.

If an entity adopts the amendments in an interim reporting period, it should apply the amendments as of the beginning of that interim reporting period or the beginning of the annual reporting period that includes that interim reporting period.

The Company does not anticipate this standard will have an impact on the Company's financial statements based upon the nature of the Company's current operations.

On December 8, 2025, the FASB issued ASU 2025-11, "Interim Reporting (Topic 270):

Narrow Scope Improvements" , to improve the guidance in Topic 270, by clarifying interim disclosure requirements and the applicability of Topic 270.

The amendments in this update result in a comprehensive list of interim disclosures that are required by GAAP.

In developing the list of disclosures required by other Topics, the FASB board focused on identifying the interim disclosures that are currently required under GAAP.

The objective of the amendments is to provide clarity about the current requirements, rather than evaluate whether to expand or reduce interim disclosure requirements.

The amendments in this update also include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity.

The intent of the disclosure principle, which is modeled after a previous SEC disclosure requirement, is to help entities determine whether disclosures not specified in Topic 270 should be provided in interim reporting periods.

The amendments in this update also clarify the applicability of Topic 270, the types of interim reporting, and the form and content of interim financial statements in accordance with GAAP.

The FASB board expects these clarifications will enhance consistency in interim financial reporting in interim for all entities and considers the amendments to be necessary to reflect the development of interim reporting over time.

The amendments in this update are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, for public business entities and for interim reporting periods within annual reporting periods beginning after December 15, 2027, for entities other than public business entities.

Early adoption is permitted for all entities, and can be applied either (1) prospectively or (2) retrospectively to any or all prior periods presented in the financial statements.

The Company is currently evaluating the impact of this update on its financial disclosures, however does not expect the adoption of this update to have a material impact on the consolidated financial statements.

On December 17, 2025, the FASB issued ASU 2025-12, "Codification Improvements" .

The amendments in this update represent changes that (1) clarify, (2) correct errors or (3) make minor improvements to the Codification.

The amendments are intended to make the Codification easier to understand and apply.

The amendments in this update are varied in nature and may affect the application of guidance in cases in which the original guidance may have been unclear.

The amendments in this update are effective for all entities for annual reporting beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.

Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance.

If an entity adopts the amendments in this update in an interim period, it must adopt them as of the beginning of the annual reporting period that includes the interim period.

An entity may elect to early adopt the amendments on an issue-by-issue basis.

For example, an entity may decide to early adopt certain amendments and adopt the remaining amendments at the effective date.

An entity may also elect the transition method on an issue-by-issue basis.

For example, it may apply certain amendments prospectively while applying others retrospectively.

The Company is currently evaluating the impact of the update on its financial disclosures, however does not expect the adoption of this update to have a material impact on the consolidated financial statements.

Debt securities purchased with the intent and ability to hold to their maturity are classified as held-to-maturity securities.

4 unchanged sentences

Cost Gross Unrealized Gain Gross Unrealized Losses Allowance for Credit Losses Fair Value

September 30, 2025

March 31, 2026

Treasury securities $ 15,185 $ 0 $ ( 81 ) $ 0 $ 15,104

5 unchanged sentences

December 31, 2025

Treasury securities $ 10,117 $ 2 $ 0 $ 0 $ 10,119

government sponsored agencies 136,772 82 ( 21,164 ) 0 115,690

7 unchanged sentences

Cost Gross Unrealized Gain Gross Unrealized Losses Allowance for Credit Losses Fair Value

September 30, 2025

March 31, 2026

State and municipal securities $ 133,617 $ 0 $ ( 19,376 ) $ 0 $ 114,241

4 unchanged sentences

The net unrealized gain or loss on the transferred securities was recorded as a component of accumulated other comprehensive income (loss) at the time of the transfer and is amortized over the remaining life of the underlying securities as an adjustment to the yield on those securities.

The net amount of the unamortized unrealized loss on the transferred securities included in accumulated other comprehensive income (loss) was $ 17.5 million ($ 13.8 million, net of tax) at September 30, 2025.

Information regarding the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by maturity as of September 30, 2025 is presented below.

The net amount of the unamortized unrealized loss on the transferred securities included in accumulated other comprehensive income (loss) was $ 16.5 million ($ 13.1 million, net of tax) at March 31, 2026.

Information regarding the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by maturity as of March 31, 2026 is presented below.

Maturity information is based on contractual maturity for all securities other than mortgage-backed securities.

10 unchanged sentences

Total debt securities $ 1,181,491 $ 1,026,991 $ 133,617 $ 114,241

Available-for-sale securities proceeds, gross gains and gross losses are presented below.

Three Months Ended September 30, Nine Months Ended September 30,

(dollars in thousands) 2025 2024 2025 2024

Sales of securities available-for-sale

Proceeds $ 0 $ 0 $ 0 $ 7,136

Gross gains 0 0 0 0

Gross losses 0 0 0 ( 46 )

Number of securities 0 0 0 15

In accordance with ASU No.

2017-8, purchase premiums for callable securities are amortized to the earliest call date and premiums on non-callable securities as well as discounts are recognized in interest income using the interest method over the terms of the securities or over the estimated lives of mortgage-backed securities.

Gains and losses on sales are based on the amortized cost of the security sold and recorded on the trade date.

Securities with fair values of $ 547.7 million and $ 560.2 million were pledged as of September 30, 2025 and December 31, 2024, respectively, as collateral for borrowings from the Federal Home Loan Bank ("FHLB") and Federal Reserve Bank and for other purposes as permitted or required by law.

There were no sales of available-for-sale securities during the three months ended March 31, 2026 and 2025 .

Securities with fair values of $ 535.2 million and $ 546.8 million were pledged as of March 31, 2026 and December 31, 2025, respectively, as collateral for borrowings from the Federal Home Loan Bank ("FHLB") and Federal Reserve Bank and for other purposes as permitted or required by law.

Unrealized Loss Analysis on Available-for-Sale and Held-to-Maturity Securities

Information regarding available-for-sale securities with unrealized losses as of September 30, 2025 and December 31, 2024 is presented on the following page.

Information regarding available-for-sale securities with unrealized losses as of March 31, 2026 and December 31, 2025 is presented below.

The table divides the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more.

4 unchanged sentences

Value Unrealized

September 30, 2025

March 31, 2026

Treasury securities $ 15,104 $ 81 $ 0 $ 0 $ 15,104 $ 81

5 unchanged sentences

December 31, 2025

Treasury securities $ 5,107 $ 0 $ 0 $ 0 $ 5,107 $ 0

government sponsored agencies 0 0 105,609 21,164 105,609 21,164

3 unchanged sentences

Total available-for-sale $ 33,311 $ 130 $ 920,927 $ 144,232 $ 954,238 $ 144,362

Information regarding held-to-maturity securities with unrealized losses as of September 30, 2025 and December 31, 2024 is presented below.

Information regarding held-to-maturity securities with unrealized losses as of March 31, 2026 and December 31, 2025 is presented on the next page.

The table divides the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more.

4 unchanged sentences

Value Unrealized

September 30, 2025

March 31, 2026

State and municipal securities $ 0 $ 0 $ 114,241 $ 19,376 $ 114,241 $ 19,376

1 unchanged sentence

State and municipal securities $ 0 $ 0 $ 117,510 $ 15,698 $ 117,510 $ 15,698

The total number of securities with unrealized losses as of September 30, 2025 and December 31, 2024 is presented below.

The total number of securities with unrealized losses as of March 31, 2026 and December 31, 2025 is presented below.

Available-for-Sale Held-to-Maturity

3 unchanged sentences

or more Total

September 30, 2025

March 31, 2026

Treasury securities 3 0 3 0 0 0

5 unchanged sentences

December 31, 2025

Treasury securities 1 0 1 0 0 0

government sponsored agencies 0 17 17 0 0 0

6 unchanged sentences

If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through the consolidated income statement.

For available-for-sale debt securities that do not

meet the above criteria and for held-to-maturity securities, management evaluates whether the decline in fair value has resulted from credit losses or other factors.

For available-for-sale debt securities that do not meet the above criteria and for held-to-maturity securities, management evaluates whether the decline in fair value has resulted from credit losses or other factors.

In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security and the issuer, among other factors.

2 unchanged sentences

For available-for-sale debt securities, any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss), net of applicable taxes.

No allowance for credit losses for available-for-sale or held-to-maturity debt securities was recorded at September 30, 2025 or December 31, 2024.

Accrued interest receivable on securities totaled $ 7.1 million and $ 7.5 million at September 30, 2025 and December 31, 2024, respectively, and is excluded from the estimate of credit losses.

No allowance for credit losses for available-for-sale or held-to-maturity debt securities was recorded at March 31, 2026 or December 31, 2025.

Accrued interest receivable on securities totaled $ 7.1 million and $ 7.8 million at March 31, 2026 and December 31, 2025, respectively, and is excluded from the estimate of credit losses.

Treasury, U.S.

3 unchanged sentences

State and municipal securities credit losses are benchmarked against highly rated municipal securities of similar duration, as published by Moody's, resulting in an immaterial allowance for credit losses.

(dollars in thousands) September 30,

(dollars in thousands) March 31,

2026 December 31,

26 unchanged sentences

Loans, net $ 5,404,444 $ 5,306,354

The recorded investment in loans does not include accrued interest, which totaled $ 21.0 million and $ 20.3 million as of September 30, 2025 and December 31, 2024, respectively.

The Company h ad $ 1.2 million and $ 424,000 in residential real estate loans in the process of foreclosure as of September 30, 2025 and December 31, 2024, respectively.

The recorded investment in loans does not include accrued interest, which totaled $ 22.1 million and $ 20.7 million as of March 31, 2026 and December 31, 2025, respectively.

The Company h ad $ 1.0 million and $ 1.5 million in residential real estate loans in the process of foreclosure as of March 31, 2026 and December 31, 2025, respectively.

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

16 unchanged sentences

With respect to pools of similar loans, an appropriate level of general allowance is determined by portfolio segment using a probability of default-loss given default ("PD/LGD") model, subject to a floor.

A default can be triggered by one of several different asset quality factors, including past due status, nonaccrual status, material modification status or if the loan has had a charge-off.

This PD is then combined with a LGD derived from historical charge-off data to construct a default rate.

This loss rate is then supplemented with adjustments for reasonable and supportable forecasts of relevant economic indicators, particularly the unemployment rate forecast from the Federal Open Market Committee’s Summary of Economic Projections, and other environmental factors based on the risks present for each portfolio segment.

A default can be triggered by one of several different asset quality factors, including past due status, nonaccrual status, material modification to a borrower experiencing financial difficulty status or if the loan has had a charge-off.

This PD is then combined with a LGD derived from historical charge-off data to construct a loss rate.

This loss rate is then supplemented with adjustments for reasonable and supportable forecasts of relevant economic indicators, particularly the unemployment rate forecast from the Federal Open Market Committee's Summary of Economic Projections, as well as portfolio trends based on the risks present for each portfolio segment.

These environmental factors include consideration of the following:

9 unchanged sentences

All of these factors are susceptible to change, which may be significant.

As a result of this detailed process, the allowance results in two forms of allocations, specific and general.

These two components represent the total allowance for credit losses deemed adequate to cover probable losses inherent in the loan portfolio.

As a result of this detailed process, the allowance results in two forms of allocations, specific and pooled.

These two components represent the total allowance for credit losses deemed adequate to cover expected losses within the loan portfolio.

Commercial loans are subject to a dual standardized grading process administered by the credit administration function.

These grade assignments are performed independent of each other and a consensus is reached by credit administration and the loan officer.

Specific allowances are established in cases where management has identified significant conditions or circumstances related to an individual credit that indicate it should be evaluated on an individual basis.

Considerations with respect to specific allocations for these individual credits include, but are not limited to, the following:

Individual allowances are established in cases where management has identified significant conditions or circumstances related to a specific credit that indicate it should be analyzed on an individual basis.

Considerations with respect to allocations for these individually analyzed credits include, but are not limited to, the following:

(a) the sufficiency of the customer's cash flow or net worth to repay the loan;

11 unchanged sentences

and consumer 1-4 family mortgage and other consumer loans.

General allocations of the allowance are determined by a historical loss rate based on the calculation of each pool’s probability of default-loss given default, subject to a floor.

Pooled allocations of the allowance are determined by a historical loss rate based on the calculation of each pool's probability of default-loss given default, subject to a floor.

The length of the historical period for each pool is based on the average life of the pool, which is updated at least annually.

The historical loss rates are supplemented with consideration of economic conditions and portfolio trends.

The historical loss rates are all supplemented with consideration of economic conditions and portfolio trends.

Due to the imprecise nature of estimating the allowance for credit losses, the Company's allowance for credit losses includes an immaterial unallocated component.

2 unchanged sentences

Additionally, when a loan is placed on non-accrual, interest payments are reversed through interest income.

For off balance sheet credit exposures outlined in the ASU at 326-20-30-11, it is the Company’s position that nearly all of the unfunded amounts on lines of credit are unconditionally cancellable, and therefore not subject to having a liability recorded.

For off balance sheet credit exposures outlined in the ASC at 326-20-30-11, it is the Company's position that nearly all of the unfunded amounts on lines of credit are unconditionally cancellable, and therefore not subject to having a liability recorded.

The following tables present the activity in the allowance for credit losses by portfolio segment for the periods shown:

(dollars in thousands) Commercial and Industrial Commercial Real Estate and Multifamily Residential Agri-business and Agricultural Other Commercial Consumer 1-4 Family Mortgage Other Consumer Unallocated Total

Three Months Ended September 30, 2025

Beginning balance, July 1 $ 25,882 $ 31,082 $ 3,299 $ 720 $ 3,590 $ 1,579 $ 400 $ 66,552

Provision for credit losses 1,447 ( 197 ) ( 80 ) ( 29 ) 460 428 ( 29 ) 2,000

Loans charged-off ( 222 ) 0 0 0 ( 4 ) ( 347 ) 0 ( 573 )

Recoveries 42 27 0 0 16 104 0 189

Net loans (charged-off) recovered ( 180 ) 27 0 0 12 ( 243 ) 0 ( 384 )

Ending balance $ 27,149 $ 30,912 $ 3,219 $ 691 $ 4,062 $ 1,764 $ 371 $ 68,168

Three Months Ended September 30, 2024

Beginning balance, July 1 $ 39,161 $ 31,687 $ 3,668 $ 820 $ 3,586 $ 1,390 $ 399 $ 80,711

Provision for credit losses 3,498 ( 355 ) ( 254 ) ( 86 ) ( 16 ) 308 ( 36 ) 3,059

Loans charged-off ( 72 ) 0 0 0 ( 3 ) ( 156 ) 0 ( 231 )

Recoveries 18 26 0 0 4 40 0 88

Net loans (charged-off) recovered ( 54 ) 26 0 0 1 ( 116 ) 0 ( 143 )

Ending balance $ 42,605 $ 31,358 $ 3,414 $ 734 $ 3,571 $ 1,582 $ 363 $ 83,627

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Beginning balance, January 1 $ 28,436 $ 30,163 $ 3,315 $ 1,041 $ 3,996 $ 1,719 $ 325 $ 68,995

5 unchanged sentences

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Beginning balance, January 1 $ 45,539 $ 30,865 $ 3,541 $ 743 $ 3,358 $ 1,531 $ 383 $ 85,960

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Loans listed as Not Rated are consumer loans or commercial loans with consumer characteristics included in groups of homogenous loans which are analyzed for credit quality indicators utilizing delinquency status.

The following table summarizes the risk category of loans by loan segment and year of origination as of September 30, 2025:

The following table summarizes the risk category of loans by loan segment and year of origination as of March 31, 2026:

(dollars in thousands) 2026 2025 2024 2023 2022 Prior Term Total Revolving Total

4 unchanged sentences

Substandard 0 300 97 2,057 922 377 3,753 27,258 31,011

Doubtful 0 0 0 0 0 0 0 0 0

Total 0 1,296 2,349 2,057 977 1,667 8,346 734,043 742,389

24 unchanged sentences

Current period gross write offs 0 0 0 0 0 0 0 0 0

Nonowner occupied loans:

Pass 64,830 186,611 110,685 107,868 124,997 227,096 822,087 124,372 946,459

(dollars in thousands) 2026 2025 2024 2023 2022 Prior Term Total Revolving Total

Nonowner occupied loans (continued):

Pass 85,779 131,308 109,516 138,120 100,613 166,703 732,039 116,959 848,998

Special Mention 0 0 0 11,223 58 0 11,281 0 11,281

Substandard 0 0 0 0 0 0 0 1,958 1,958

Total 64,830 186,611 110,685 119,091 125,055 227,096 833,368 126,330 959,698

18 unchanged sentences

Special Mention 0 0 0 643 251 0 894 6,323 7,217

Substandard 0 0 0 13 0 0 13 0 13

Total 745 5,216 12,421 6,961 18,328 13,436 57,107 139,249 196,356

3 unchanged sentences

Pass 3,091 10,737 1,033 12,968 24,259 14,582 66,670 28,897 95,567

Special Mention 0 0 0 0 0 1,783 1,783 0 1,783

Total 3,091 10,737 1,033 12,968 24,259 14,582 66,670 28,897 95,567

1 unchanged sentence

Current period gross write offs 0 0 0 0 0 0 0 0 0

(dollars in thousands) 2025 2024 2023 2022 2021 Prior Term Total Revolving Total

Consumer 1-4 family mortgage loans (continued):

Consumer 1-4 family mortgage loans:

Closed end first mortgage loans:

1 unchanged sentence

Special Mention 0 188 118 212 154 60 732 0 732

(dollars in thousands) 2026 2025 2024 2023 2022 Prior Term Total Revolving Total

Closed end first mortgage loans (continued):

Substandard 0 24 0 226 429 573 1,252 0 1,252

Doubtful 0 0 0 0 0 0 0 0 0

Not Rated 14,691 36,025 22,699 48,765 42,307 55,223 219,710 0 219,710

17 unchanged sentences

Pass 4 373 0 930 104 14 1,425 40,179 41,604

Special Mention 0 0 0 475 0 26 501 0 501

Substandard 0 0 28 230 82 61 401 0 401

12 unchanged sentences

Substandard 300 0 2,057 924 211 230 3,722 27,759 31,481

Doubtful 0 3,090 39,994 0 0 0 43,084 0 43,084

Total 6,163 1,405 2,076 987 1,277 564 12,472 699,043 711,515

24 unchanged sentences

Current period gross write offs 0 0 0 0 0 0 0 0 0

Nonowner occupied loans:

Pass 184,183 114,323 108,411 128,867 93,880 154,390 784,054 125,655 909,709

(dollars in thousands) 2025 2024 2023 2022 2021 Prior Term Total Revolving Total

Nonowner occupied loans (continued):

Pass 152,963 118,517 168,387 101,064 119,612 77,497 738,040 110,441 848,481

Special Mention 0 0 11,321 59 0 0 11,380 0 11,380

Substandard 0 0 0 0 0 0 0 1,957 1,957

Total 184,183 114,323 119,732 128,926 93,880 154,390 795,434 127,612 923,046

53 unchanged sentences

Pass 384 0 939 120 22 0 1,465 37,683 39,148

Special Mention 0 0 475 0 157 0 632 0 632

Substandard 0 35 273 91 6 11 416 0 416

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Loans may be returned to accrual status when all the principal and interest amounts contractually due are brought current, remain current for a prescribed period, and future payments are reasonably assured.

The following table presents the aging of the amortized cost basis in past due loans as of September 30, 2025 by class of loans and loans past due 90 days or more and still accruing by class of loan:

The following table presents the aging of the amortized cost basis in past due loans as of March 31, 2026 by class of loans and loans past due 90 days or more and still accruing by class of loan:

(dollars in thousands) Loans Not Past Due 30-89 Days Past Due Greater than 89 Days Past Due and Accruing Total Accruing Total Nonaccrual Nonaccrual With No Allowance For Credit Loss Total

17 unchanged sentences

Total $ 5,445,003 $ 7,406 $ 7 $ 5,452,416 $ 20,942 $ 2,604 $ 5,473,358

An insignificant amount of interest income was recognized on nonaccrual loans during the three and nine month periods ended September 30, 2025.

An insignificant amount of interest income was recognized on nonaccrual loans during the three month periods ended March 31, 2026.

The following table presents the aging of the amortized cost basis in past due loans as of December 31, 2025 by class of loans and loans past due 90 days or more and still accruing by class of loan:

24 unchanged sentences

The following tables present the amortized cost basis of collateral dependent loans by class of loan as of:

September 30, 2025

March 31, 2026

(dollars in thousands) Real Estate General

5 unchanged sentences

Owner occupied loans 473 1,716 0 2,189

Nonowner occupied loans 1,958 0 0 1,958

Agri-business and agricultural loans:

13 unchanged sentences

Owner occupied loans 476 1,726 0 2,202

Nonowner occupied loans 1,958 0 0 1,958

Agri-business and agricultural loans:

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In the event forgiveness of principal is provided, the amount of the forgiveness is charged off against the allowance for credit losses.

The following table presents the amortized cost basis at the end of the reporting period of loans that were experiencing financial difficulty and received a modification of terms during the three and nine months ended September 30, 2025, by class and type of modification.

The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivables at the end of the reporting period is also presented below:

(dollars in thousands) Combination Principal Forgiveness and Interest Rate Reduction Total Modifications Total Class of Financing Receivable

Three and Nine Months Ended September 30, 2025

Consumer 1-4 family mortgage loans:

Open end and junior lien loans $ 1,994 $ 1,994 0.82 %

Total consumer 1-4 family mortgage loans 1,994 1,994 0.37

Total consumer loans 1,994 1,994 0.31

Total loan modifications made to borrowers experiencing financial difficulty $ 1,994 $ 1,994 0.04 %

The Company has no material commitments to lend additional funds to borrowers included in the previous table.

During the three and nine months ended September 30, 2024, no modifications were made to loans for borrowers experiencing financial difficulty.

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty:

(dollars in thousands) Principal Forgiveness Weighted Average Interest Rate Reduction

Three and Nine Months Ended September 30, 2025

Commercial and industrial loans:

Working capital lines of credit loans (1) $ 28,607 7.00 %

Total commercial and industrial loans 28,607 7.00 %

Total commercial loans 28,607 7.00 %

Total financial effect of loan modifications made to borrowers experiencing financial difficulty $ 28,607 7.00 %

(1) Principal forgiveness of $ 28.6 million represents one $ 30.6 million working capital line of credit loan, of which $ 28.6 million was charged off.

The remaining $ 2.0 million was financed into an open end and junior lien loan with a personal guarantor of the forgiven loan.

The modified note is collateralized by several of the guarantor's commercial and residential real estate properties.

During the three months ended March 31, 2026 and 2025, there were no material modifications made to borrowers experiencing financial difficulty.

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty by reviewing the delinquency and payment default status of such loans to understand the effectiveness of its relief efforts.

At September 30, 2025, no loans receiving a modification due to borrower financial difficulty within the previous twelve months were greater than 30 days or more past due.

At March 31, 2026, no loans receiving a modification due to borrower financial difficulty within the previous twelve months were greater than 30 days or more past due or had experienced a payment default.

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

1 unchanged sentence

For the periods ended below, advances from the Federal Home Loan Bank of Indianapolis ("FHLBI") were as follows:

(dollars in thousands) September 30, 2025 December 31, 2024

Short-term fixed rate bullet advance, 4.31 %, due October 3, 2025

Long-term fixed rate bullet advance, 0.00 %, due March 12, 2035

(dollars in thousands) March 31, 2026 December 31, 2025

Short-term advance $ 50,000 $ 170,000

Long-term advance 1,200 1,200

Total $ 51,200 $ 171,200

For the period ended September 30, 2025, the Company had advances outstanding from the Federal Home Loan Bank of Indianapolis ("FHLBI") of $ 56.2 million.

The fixed rate bullet advance of $ 55.0 million due October 3, 2025 had an interest rate of 4.31 %.

The fixed rate bullet advance of $ 1.2 million due March 12, 2035 had an interest rate of 0.00 %.

The $ 1.2 million advance is a rate-subsidized Community Development Financial Institution ("CDFI") Rate Buydown Advance offered by the FHLBI.

The Company extended a low cost loan to a qualifying CDFI within its operating footprint that was then funded by the fixed rate advance from the Rate Buydown Advance program.

For the period ended December 31, 2024, the Company had no advances outstanding with the FHLBI.

There were no Federal Funds purchased outstanding at September 30, 2025 and December 31, 2024.

For the period ended March 31, 2026, the Company had advances outstanding from the FHLBI of $ 51.2 million.

The short-term advance of $ 50.0 million was a floating rate advance due June 1, 2026 and had an interest rate of 3.79 %.

The long-term advance of $ 1.2 million was a fixed rate bullet advance due March 12, 2035 and had an interest rate of 0.00 %.

This advance is a rate-subsidized Community Development Financial Institution ("CDFI") Rate Buydown Advance offered by the FHLBI that funded a low cost loan to a qualifying CDFI.

For the period ended December 31, 2025, the Company had advances outstanding with the FHLBI of $ 171.2 million.

The $ 170.0 million short-term FHLBI advance was repaid on January 8, 2026.

There were no Federal Funds purchased outstanding at March 31, 2026 and December 31, 2025.

On October 10, 2025, the Company renewed an unsecured revolving credit agreement with a financial institution allowing the Company to borrow up to $ 30.0 million.

The credit agreement has a one year term which may be amended, extended, modified or renewed.

Funds provided under the agreement can be used to repurchase shares of the Company’s common stock under the share repurchase program, which was reauthorized by the Company’s board of directors on April 8, 2025, and expires on April 30, 2027, and for general operations.

Funds provided under the agreement can be used to repurchase shares of the Company’s common stock under the share repurchase program, which was reauthorized by the Company’s board of directors on April 8, 2025, amended on March 5, 2026, and expires on April 30, 2027, and for general operations.

The credit agreement includes a negative pledge agreement whereby the Company agrees not to pledge or otherwise encumber the stock of the Bank.

There was no outstanding balance on the credit agreement at September 30, 2025 and December 31, 2024.

There was an outstanding balance on the credit agreement of $ 17.0 million at March 31, 2026 and $ 13.0 million at December 31, 2025.

The outstanding balance of the credit agreement was repaid on April 15, 2026.

FAIR VALUE DISCLOSURES

30 unchanged sentences

The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position.

The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services.

The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing

The fair value of interest rate swap derivatives is determined by pricing or valuation models using observable market data as of the measurement date (Level 2).

17 unchanged sentences

Mortgage servicing rights:

As of September 30, 2025, the value of the Company’s Level 3 servicing assets for residential mortgage loans (“MSRs”) was $ 1.7 million, carried at amortized cost and no valuation reserve.

As of March 31, 2026, the value of the Company’s Level 3 servicing assets for residential mortgage loans (“MSRs”) was $ 1.5 million, carried at amortized cost and an immaterial valuation reserve.

These residential mortgage loans have a weighted average interest rate of 4.0 %, a weighted average maturity of 20 years and are secured by homes generally within the Company’s market area of Northern Indiana and Indianapolis.

1 unchanged sentence

Impairment is estimated based on an income approach.

The inputs used include estimates of prepayment speeds, discount rate,

cost to service, escrow account earnings, contractual servicing fee income, ancillary income, late fees and float income.

The inputs used include estimates of prepayment speeds, discount rate, cost to service, escrow account earnings, contractual servicing fee income, ancillary income, late fees and float income.

The most significant assumption used to value MSRs is prepayment rate.

1 unchanged sentence

The most significant unobservable assumption is the discount rate.

At September 30, 2025, the constant prepayment speed (“PSA”) used was 163 and used a discount rate of 9.5 %.

At March 31, 2026, the constant prepayment speed (“PSA”) used was 188 and used a discount rate of 9.5 %.

At December 31, 2025, the PSA used was 168 and the discount rate used was 9.5 %.

9 unchanged sentences

The tables below present the balances of assets measured at fair value on a recurring basis:

September 30, 2025

March 31, 2026

Fair Value Measurements Using Assets

10 unchanged sentences

Total assets $ 15,104 $ 1,021,714 $ 4,581 $ 1,041,399

Mortgage banking derivative $ 0 $ 1 $ 0 $ 1

Interest rate swap derivative $ 0 $ 14,273 $ 0 $ 14,273

4 unchanged sentences

(dollars in thousands) Level 1 Level 2 Level 3

Treasury securities $ 10,119 $ 0 $ 0 $ 10,119

government sponsored agency securities 0 115,690 0 115,690

6 unchanged sentences

Total assets $ 10,119 $ 1,052,191 $ 4,501 $ 1,066,811

Mortgage banking derivative $ 0 $ 8 $ 0 $ 8

Interest rate swap derivative 0 14,634 0 14,634

2 unchanged sentences

The tables below present the balances of assets measured at fair value on a nonrecurring basis:

September 30, 2025

March 31, 2026

Fair Value Measurements Using Assets

7 unchanged sentences

Owner occupied loans 0 0 777 777

Nonowner occupied loans 0 0 1,515 1,515

Agri-business and agricultural loans:

Loans secured by farmland 0 0 16 16

Consumer 1‑4 family mortgage loans:

Open end and junior lien loans 0 0 1,541 1,541

Total collateral dependent loans 0 0 7,047 7,047

10 unchanged sentences

Owner occupied loans 0 0 811 811

Nonowner occupied loans 0 0 1,543 1,543

Agri-business and agricultural loans:

Loans secured by farmland 0 0 18 18

Consumer 1‑4 family mortgage loans:

Open end and junior lien loans 0 0 1,523 1,523

Total collateral dependent loans 0 0 7,286 7,286

Total assets $ 0 $ 0 $ 7,286 $ 7,286

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at September 30, 2025:

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at March 31, 2026:

(dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Average Range of Inputs

5 unchanged sentences

Agri-business and agricultural 16 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 65 %

Collateral dependent loans:

Consumer 1-4 family mortgage 1,541 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 10 %

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2025:

6 unchanged sentences

Agri-business and agricultural 18 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 62 %

Collateral dependent loans:

Consumer 1-4 family mortgage 1,523 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 12 %

The following tables contain the estimated fair values and the related carrying values of the Company’s financial instruments.

Items that are not financial instruments are not included.

September 30, 2025

March 31, 2026

Value Estimated Fair Value

16 unchanged sentences

Long-term advance 1,200 0 793 0 793

Mortgage banking derivative 1 0 1 0 1

Other borrowings 17,000 0 16,998 0 16,998

Interest rate swap derivative 14,273 0 14,273 0 14,273

17 unchanged sentences

All other deposits 5,222,624 5,222,624 0 0 5,222,624

Federal Home Loan Bank advances:

Short-term advance 170,000 169,998 0 0 169,998

Long-term advance 1,200 0 792 0 792

Other borrowings 13,000 0 12,997 0 12,997

Mortgage banking derivative 8 0 8 0 8

Interest rate swap derivative 14,634 0 14,634 0 14,634

2 unchanged sentences

OFFSETTING ASSETS AND LIABILITIES

The following tables summarize gross and net information about financial instruments and derivative instruments that are offset in the statement of financial position or that are subject to an enforceable master netting arrangement at September 30, 2025 and December 31, 2024.

September 30, 2025

March 31, 2026

Gross Amounts of Recognized Assets/Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Net Amount

13 unchanged sentences

If a default in performance of any obligation of a repurchase agreement occurs, each party will set-off property held in respect of transactions against obligations owing in respect of any other transactions.

EARNINGS PER SHARE

Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period, which includes shares held in treasury on behalf of participants in the Company’s Directors Fee Deferral Plan, and share repurchases.

Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock based awards and warrants, none of which were antidilutive.

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Weighted average shares outstanding for basic earnings per common share 25,703,699 25,684,407 25,708,543 25,673,275

Dilutive effect of stock based awards 117,661 83,332 95,779 81,082

Weighted average shares outstanding for diluted earnings per common share 25,821,360 25,767,739 25,804,322 25,754,357

Basic earnings per common share $ 1.03 $ 0.91 $ 2.86 $ 2.70

Diluted earnings per common share $ 1.03 $ 0.91 $ 2.85 $ 2.69

The Company leases certain office facilities under long-term operating lease agreements.

The leases expire at various dates through 2044 and some include renewal options.

Many of these leases require the payment of property taxes, insurance premiums, maintenance, utilities and other costs.

In many cases, rentals are subject to increase in relation to a cost-of-living index.

The Company accounts for lease and non-lease components together as a single lease component.

The Company determines if an arrangement is a lease at inception.

Operating leases are recorded as a right-of-use ("ROU") lease asset and are included in other assets on the consolidated balance sheet.

The Company's corresponding lease obligations are included in other liabilities on the consolidated balance sheet.

ROU lease assets represent the Company's right to use an underlying asset for the lease term and lease obligations represent the Company's obligation to make lease payments arising from the lease.

Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term.

As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.

The ROU lease asset also includes any lease payments made and excludes lease incentives.

The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Short-term leases are leases having a term of twelve months or less.

The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability for such leases, as allowed as a practical expedient of the standard.

The following is a maturity analysis of the operating lease liabilities as of March 31, 2026:

Years ending December 31, (in thousands) Operating Lease Obligation

2031 and thereafter 5,191

Total undiscounted lease payments 9,111

Less imputed interest ( 2,219 )

Lease liability $ 6,892

Right-of-use asset $ 6,892

The lease liability and right-of-use asset were $ 7.1 million and $ 7.1 million, respectively, at December 31, 2025.

Three Months Ended March 31,

(dollars in thousands) 2026 2025

Operating lease cost $ 242 $ 198

Short-term lease cost 1 1

Total lease cost $ 243 $ 199

Other information

Operating cash outflows from operating leases $ 242 $ 198

Weighted-average remaining lease term - operating leases 6.3 years 7.6 years

Weighted average discount rate - operating leases 3.9 % 3.7 %

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for the three months ended September 30, 2025 and 2024, all shown net of tax:

(dollars in thousands) Unrealized Gains and Losses on Available-

for-Sales Securities Defined Benefit Pension Items Total

Balance at July 1, 2025

$ ( 160,573 ) $ ( 548 ) $ ( 161,121 )

Other comprehensive income (loss) before reclassification 20,023 0 20,023

Amounts reclassified from accumulated other comprehensive income (loss) 385 10 395

Net current period other comprehensive income (loss) 20,408 10 20,418

Balance at September 30, 2025 $ ( 140,165 ) $ ( 538 ) $ ( 140,703 )

(dollars in thousands) Unrealized Gains and Losses on Available-

for-Sales Securities Defined Benefit Pension Items Total

Balance at July 1, 2024

$ ( 169,746 ) $ ( 712 ) $ ( 170,458 )

Other comprehensive income (loss) before reclassification 31,925 0 31,925

Amounts reclassified from accumulated other comprehensive income (loss) 385 12 397

Net current period other comprehensive income (loss) 32,310 12 32,322

Balance at September 30, 2024 $ ( 137,436 ) $ ( 700 ) $ ( 138,136 )

The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for the nine months ended September 30, 2025 and 2024, all shown net of tax:

The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for the three months ended March 31, 2026 and 2025, all shown net of tax:

(dollars in thousands) Unrealized Gains and Losses on Available-

for-Sales Securities Defined Benefit Pension Items Total

for-Sale Securities Defined Benefit Pension Items Total

Balance at January 1, 2026 $ ( 126,609 ) $ ( 528 ) $ ( 127,137 )

2 unchanged sentences

Net current period other comprehensive income (loss) ( 8,497 ) 12 ( 8,485 )

Balance at September 30, 2025

Balance at March 31, 2026

$ ( 135,106 ) $ ( 516 ) $ ( 135,622 )

(dollars in thousands) Unrealized Gains and Losses on Available-

for-Sales Securities Defined Benefit Pension Items Total

for-Sale Securities Defined Benefit Pension Items Total

Balance at January 1, 2025 $ ( 165,932 ) $ ( 568 ) $ ( 166,500 )

2 unchanged sentences

Net current period other comprehensive income (loss) 2,611 10 2,621

Balance at September 30, 2024

Balance at March 31, 2025

$ ( 163,321 ) $ ( 558 ) $ ( 163,879 )

Reclassifications out of other accumulated other comprehensive income (loss) for the three months ended September 30, 2025 are as follows:

Reclassifications out of accumulated comprehensive income (loss) for the three months ended March 31, 2026 are as follows:

Details about

8 unchanged sentences

( 387 ) Net of tax

Amortization of defined benefit pension items ( 14 ) Other expense

Amortization of defined benefit pension items ( 16 ) Salaries and employee benefits

Tax effect 4 Income tax expense

1 unchanged sentence

Total reclassifications for the period $ ( 399 ) Net income

Reclassifications out of other accumulated comprehensive income (loss) for the three months ended September 30, 2024 are as follows:

Reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2025 are as follows:

Details about

8 unchanged sentences

( 387 ) Net of tax

Amortization of defined benefit pension items ( 16 ) Other expense

Amortization of defined benefit pension items ( 13 ) Salaries and employee benefits

Tax effect 3 Income tax expense

1 unchanged sentence

Total reclassifications for the period $ ( 397 ) Net income

Reclassifications out of accumulated comprehensive income (loss) for the nine months ended September 30, 2025 are as follows:

Details about

Accumulated Other

Comprehensive

Income (Loss) Components Amount

Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item

in the Statement Where Net Income is Presented

EARNINGS PER SHARE

Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock based awards and warrants, none of which were antidilutive.

Three Months Ended March 31,

Weighted average shares outstanding for basic earnings per common share 25,344,757 25,714,818

Dilutive effect of stock based awards 149,163 88,047

Weighted average shares outstanding for diluted earnings per common share 25,493,920 25,802,865

Basic earnings per common share $ 1.04 $ 0.78

Diluted earnings per common share $ 1.04 $ 0.78

Pretax income is entirely related to domestic activities.

The Company did not have any foreign operations or foreign tax expense for the periods presented below.

Income tax expense for the three months ended March 31, 2026 consisted of the following:

(dollars in thousands) 2026

Amortization of unrealized losses on held-to-maturity securities $ ( 1,468 ) Interest income

Tax effect 309 Income tax expense

( 1,159 ) Net of tax

Amortization of defined benefit pension items ( 40 ) Other expense

Tax effect 10 Income tax expense

( 30 ) Net of tax

Total reclassifications for the period $ ( 1,189 ) Net income

Reclassifications out of accumulated other comprehensive income (loss) for the nine months ended September 30, 2024 are as follows:

Details about

Accumulated Other

Comprehensive

Income (Loss) Components Amount

Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item

in the Statement Where Net Income is Presented

Current federal $ 5,040

Deferred federal 842

Current state 853

Deferred state ( 658 )

Total income tax expense $ 6,077

For the year ended December 31, 2025, the Company adopted ASU 2023-09, " Income Taxes (Topic 740):

Improvements to Income Tax Disclosures " on a prospective basis.

Differences between financial statement tax expense and amounts computed by applying the statutory federal income tax rate of 21% to income before income taxes for the three months ended March 31, 2026 were as follows:

(dollars in thousands) 2026

Amortization of unrealized losses on held-to-maturity securities $ ( 1,473 ) Interest income

Realized gains and (losses) on available-for-sale securities ( 46 ) Net securities gains (losses)

Tax effect 320 Income tax expense

( 1,199 ) Net of tax

Amortization of defined benefit pension items ( 47 ) Other expense

Tax effect 12 Income tax expense

( 35 ) Net of tax

Total reclassifications for the period $ ( 1,234 ) Net income