What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-05 compared with 2026-04-29 · 188 added, 86 removed, 1136 unchanged (19% of the section changed)

32 unchanged sentences

90,000,000 shares authorized, no par value

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

26,063,576 shares issued and 24,858,875 outstanding as of June 30, 2026

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

2 unchanged sentences

Accumulated other comprehensive income (loss) ( 124,463 ) ( 127,137 )

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

Treasury stock at cost ( 1,204,701 shares as of June 30, 2026, 804,010 shares as of December 31, 2025)

( 59,274 ) ( 35,770 )

6 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

NET INTEREST INCOME

12 unchanged sentences

Provision for credit losses

1,708 3,000 3,708 9,800

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 56,593 51,876 111,366 97,951

5 unchanged sentences

Merchant and interchange fee income

836 854 1,613 1,676

Bank owned life insurance income 1,617 1,040 2,593 1,362

Interest rate swap fee income 0 20 701 20

Mortgage banking income (loss) 81 ( 51 )

Mortgage banking income 128 124 209 73

Other income 525 398 1,255 1,256

19 unchanged sentences

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

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Net income $ 28,440 $ 26,966 $ 54,918 $ 47,051

Other comprehensive income (loss)

Other comprehensive income

Change in available-for-sale and transferred securities:

9 unchanged sentences

Net of tax amount 12 10 24 20

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

Total other comprehensive income, net of tax 11,159 2,758 2,674 5,379

Comprehensive income $ 39,599 $ 29,724 $ 57,592 $ 52,430

8 unchanged sentences

Interest Total

Balance at April 1, 2025

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

Comprehensive income:

Net income 26,966 26,966 26,966

Other comprehensive income, net of tax 2,758 2,758 2,758

Cash dividends declared and paid, $ 0.50 per share

( 12,877 ) ( 12,877 ) ( 12,877 )

Treasury shares purchased under share repurchase plan ( 30,300 ) ( 1,705 ) ( 1,705 ) ( 1,705 )

Treasury shares purchased under deferred directors' plan ( 1,499 ) 85 ( 85 ) 0 0

Stock based compensation expense 336 336 336

Balance at June 30, 2025

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

Balance at April 1, 2026

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

Comprehensive income:

Net income 28,440 28,440 28,440

Other comprehensive income, net of tax 11,159 11,159 11,159

Cash dividends declared and paid, $ 0.52 per share

( 13,055 ) ( 13,055 ) ( 13,055 )

Treasury shares purchased under share repurchase plan ( 70,873 ) ( 4,166 ) ( 4,166 ) ( 4,166 )

Treasury shares purchased under deferred directors' plan ( 1,415 ) 88 ( 88 ) 0 0

Stock activity under equity compensation plans 1,513 ( 52 ) ( 52 ) ( 52 )

Stock based compensation expense 2,055 2,055 2,055

Balance at June 30, 2026

24,858,875 $ 140,020 $ 817,002 $ ( 124,463 ) $ ( 59,274 ) $ 773,285 $ 89 $ 773,374

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

Six Months Ended

Common Stock Retained

Earnings Accumulated Other Comprehensive

Income (Loss) Treasury

Stock Total Stockholders’

Equity Noncontrolling

Interest Total

Balance at January 1, 2025

2 unchanged sentences

Net income 47,051 47,051 47,051

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

Other comprehensive income, net of tax 5,379 5,379 5,379

Cash dividends declared and paid, $ 1.00 per share

( 25,724 ) ( 25,724 ) ( 25,724 )

Treasury shares purchased under share repurchase plan ( 30,300 ) ( 1,705 ) ( 1,705 ) ( 1,705 )

Treasury shares purchased under deferred directors' plan ( 4,594 ) 300 ( 300 ) 0 0

2 unchanged sentences

Stock based compensation expense 2,568 2,568 2,568

Balance at March 31, 2025

Balance at June 30, 2025

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

3 unchanged sentences

Net income 54,918 54,918 54,918

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

Other comprehensive income, net of tax 2,674 2,674 2,674

Cash dividends declared and paid, $ 1.04 per share

5 unchanged sentences

Stock based compensation expense 4,430 4,430 4,430

Balance at March 31, 2026

Balance at June 30, 2026

24,858,875 $ 140,020 $ 817,002 $ ( 124,463 ) $ ( 59,274 ) $ 773,285 $ 89 $ 773,374

1 unchanged sentence

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

Three Months Ended March 31, 2026 2025

Six Months Ended June 30, 2026 2025

Cash flows from operating activities:

7 unchanged sentences

Proceeds from sale of loans, including participations 9,418 8,688

Net (gain) loss on sales of premises and equipment 17 1

Net securities amortization 1,769 2,013

12 unchanged sentences

Net (increase) decrease in total loans ( 206,381 ) ( 138,087 )

Proceeds from sales of land, premises and equipment 2 0

Purchases of land, premises and equipment ( 9,961 ) ( 3,907 )

Proceeds from life insurance 524 0

Net cash from investing activities ( 198,344 ) ( 156,341 )

5 unchanged sentences

Common dividends paid ( 26,248 ) ( 25,711 )

Preferred dividends paid ( 13 ) ( 13 )

Payments related to equity incentive plans ( 1,344 ) ( 1,493 )

10 unchanged sentences

Right-of-use assets obtained in exchange for lease liabilities 0 20

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

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

BASIS OF PRESENTATION

10 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 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.

Operating results for the three and six months ended June 30, 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.

14 unchanged sentences

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.

Subtopic 260-10, as amended, requires disclosure of the methods used in the diluted earnings-per-share computation for each dilutive security and clarifies that certain disclosures should be made during interim periods.

Subtopic 470-10, as amended, requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest rate on short-term borrowings outstanding as of the date of each balance sheet presented.

The effective date for each amendment for entities subject to the SEC's existing disclosure requirements is the effective date of the removal of the related disclosure from Regulation S-X or Regulation S-K, with early adoption prohibited.

20 unchanged sentences

(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 there is significant development uncertainty are whether:

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.

8 unchanged sentences

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.

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.

35 unchanged sentences

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

March 31, 2026

June 30, 2026

Treasury securities $ 25,019 $ 10 $ ( 169 ) $ 0 $ 24,860

15 unchanged sentences

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

March 31, 2026

June 30, 2026

State and municipal securities $ 134,025 $ 0 $ ( 14,592 ) $ 0 $ 119,433

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 $ 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.

The net amount of the unamortized unrealized loss on the transferred securities included in accumulated other comprehensive income (loss) was $ 16.0 million ($ 12.7 million, net of tax) at June 30, 2026.

Information regarding the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by maturity as of June 30, 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 $ 1,176,042 $ 1,035,163 $ 134,025 $ 119,433

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.

There were no sales of available-for-sale securities during the six months ended June 30, 2026 and 2025 .

Securities with fair values of $ 535.0 million and $ 546.8 million were pledged as of June 30, 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 March 31, 2026 and December 31, 2025 is presented below.

Information regarding available-for-sale securities with unrealized losses as of June 30, 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

March 31, 2026

June 30, 2026

Treasury securities $ 20,012 $ 169 $ 0 $ 0 $ 20,012 $ 169

11 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 March 31, 2026 and December 31, 2025 is presented on the next page.

Information regarding held-to-maturity securities with unrealized losses as of June 30, 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

March 31, 2026

June 30, 2026

State and municipal securities $ 0 $ 0 $ 119,433 $ 14,592 $ 119,433 $ 14,592

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 March 31, 2026 and December 31, 2025 is presented below.

The total number of securities with unrealized losses as of June 30, 2026 and December 31, 2025 is presented below.

Available-for-Sale Held-to-Maturity

3 unchanged sentences

or more Total

March 31, 2026

June 30, 2026

Treasury securities 4 0 4 0 0 0

19 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 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.

No allowance for credit losses for available-for-sale or held-to-maturity debt securities was recorded at June 30, 2026 or December 31, 2025.

Accrued interest receivable on securities totaled $ 7.9 million and $ 7.8 million at June 30, 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) March 31,

(dollars in thousands) June 30,

2026 December 31,

26 unchanged sentences

Loans, net $ 5,509,027 $ 5,306,354

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.

The recorded investment in loans does not include accrued interest, which totaled $ 21.2 million and $ 20.7 million as of June 30, 2026 and December 31, 2025, respectively.

The Company h ad $ 1.7 million and $ 1.5 million in residential real estate loans in the process of foreclosure as of June 30, 2026 and December 31, 2025, respectively.

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

7 unchanged sentences

The level of credit loss provision is influenced by growth in the overall loan portfolio, emerging market risk, emerging concentration risk, commercial loan focus and large credit concentration, new industry lending activity, general economic conditions and historical loss analysis.

In addition, management gives consideration to changes in the facts and circumstances

of watch list credits, which includes the security position of the borrower, in determining the appropriate level of the credit loss provision.

In addition, management gives consideration to changes in the facts and circumstances of watch list credits, which includes the security position of the borrower, in determining the appropriate level of the credit loss provision.

Furthermore, management’s overall view on credit quality is a factor in the determination of the provision.

48 unchanged sentences

(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 March 31, 2026

Three Months Ended June 30, 2026

Beginning balance, April 1 $ 28,053 $ 30,618 $ 3,421 $ 815 $ 4,185 $ 1,797 $ 25 $ 68,914

Provision for credit losses 672 ( 53 ) ( 163 ) 267 129 283 573 1,708

Loans charged-off ( 94 ) 0 0 0 ( 47 ) ( 290 ) 0 ( 431 )

Recoveries 121 90 0 0 99 97 0 407

Net loans (charged-off) recovered 27 90 0 0 52 ( 193 ) 0 ( 24 )

Ending balance $ 28,752 $ 30,655 $ 3,258 $ 1,082 $ 4,366 $ 1,887 $ 598 $ 70,598

Three Months Ended June 30, 2025

Beginning balance, April 1 $ 52,302 $ 30,468 $ 3,500 $ 723 $ 3,464 $ 1,517 $ 459 $ 92,433

Provision for credit losses 2,148 588 ( 201 ) ( 3 ) 294 233 ( 59 ) 3,000

Loans charged-off ( 28,616 ) 0 0 0 ( 198 ) ( 297 ) 0 ( 29,111 )

Recoveries 48 26 0 0 30 126 0 230

Net loans (charged-off) recovered ( 28,568 ) 26 0 0 ( 168 ) ( 171 ) 0 ( 28,881 )

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

Six Months Ended June 30, 2026

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

5 unchanged sentences

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

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

19 unchanged sentences

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 March 31, 2026:

The following table summarizes the risk category of loans by loan segment and year of origination as of June 30, 2026:

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

71 unchanged sentences

Substandard 0 240 117 220 423 621 1,621 0 1,621

Doubtful 0 0 0 0 0 0 0 0 0

Not Rated 31,802 34,939 22,392 45,712 39,406 52,730 226,981 0 226,981

4 unchanged sentences

Pass 194 916 464 506 0 177 2,257 10,504 12,761

Special Mention 0 279 0 0 0 0 279 0 279

Substandard 0 1,694 0 115 70 24 1,903 603 2,506

124 unchanged sentences

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 March 31, 2026 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 June 30, 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 $ 5,556,616 $ 3,023 $ 6 $ 5,559,645 $ 19,980 $ 1,804 $ 5,579,625

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

An insignificant amount of interest income was recognized on nonaccrual loans during the three and six month periods ended June 30, 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:

March 31, 2026

June 30, 2026

(dollars in thousands) Real Estate General

37 unchanged sentences

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

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

During the three and six months ended June 30, 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 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.

At June 30, 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) March 31, 2026 December 31, 2025

(dollars in thousands) June 30, 2026 December 31, 2025

Short-term advance $ 70,000 $ 170,000

1 unchanged sentence

Total $ 71,200 $ 171,200

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 %.

For the period ended June 30, 2026, the Company had advances outstanding from the FHLBI of $ 71.2 million.

The short-term advance of $ 70.0 million was a floating rate advance due September 28, 2026 and had an interest rate of 3.78 %, and was fully repaid on July 13, 2026.

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 %.

2 unchanged sentences

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.

There were no Federal Funds purchased outstanding at June 30, 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.

2 unchanged sentences

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 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.

There was no outstanding balance on the credit agreement at June 30, 2026 and $ 13.0 million outstanding at December 31, 2025.

FAIR VALUE DISCLOSURES

50 unchanged sentences

Mortgage servicing rights:

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.

As of June 30, 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.

5 unchanged sentences

The most significant unobservable assumption is the discount rate.

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

At June 30, 2026, the constant prepayment speed (“PSA”) used was 167 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:

March 31, 2026

June 30, 2026

Fair Value Measurements Using Assets

10 unchanged sentences

Total assets $ 24,860 $ 1,021,195 $ 4,179 $ 1,050,234

Mortgage banking derivative $ 0 $ 1 $ 0 $ 1

Interest rate swap derivative $ 0 $ 14,895 $ 0 $ 14,895

18 unchanged sentences

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

March 31, 2026

June 30, 2026

Fair Value Measurements Using Assets

31 unchanged sentences

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 March 31, 2026:

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at June 30, 2026:

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

19 unchanged sentences

Items that are not financial instruments are not included.

March 31, 2026

June 30, 2026

Value Estimated Fair Value

16 unchanged sentences

Long-term advance 1,200 0 800 0 800

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

Mortgage banking derivative 1 0 1 0 1

Interest rate swap derivative 14,895 0 14,895 0 14,895

26 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 March 31, 2026 and December 31, 2025.

March 31, 2026

June 30, 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

29 unchanged sentences

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:

The following is a maturity analysis of operating lease obligations as of June 30, 2026:

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

5 unchanged sentences

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,

Three Months Ended June 30, Six Months Ended June 30,

(dollars in thousands) 2026 2025 2026 2025

4 unchanged sentences

Operating cash outflows from operating leases $ 241 $ 198 $ 483 $ 396

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

Weighted-average remaining lease term - operating leases 6.0 years 7.4 years 6.0 years 7.4 years

Weighted average discount rate - operating leases 3.9 % 3.7 % 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 March 31, 2026 and 2025, 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 June 30, 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

Balance at April 1, 2026

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

Other comprehensive income (loss) before reclassification 10,761 0 10,761

Amounts reclassified from accumulated other comprehensive income (loss) 386 12 398

Net current period other comprehensive income (loss) 11,147 12 11,159

Balance at June 30, 2026 $ ( 123,959 ) $ ( 504 ) $ ( 124,463 )

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

for-Sales Securities Defined Benefit Pension Items Total

Balance at April 1, 2025

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

Other comprehensive income (loss) before reclassification 2,361 0 2,361

Amounts reclassified from accumulated other comprehensive income (loss) 387 10 397

Net current period other comprehensive income (loss) 2,748 10 2,758

Balance at June 30, 2025 $ ( 160,573 ) $ ( 548 ) $ ( 161,121 )

The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for the six months ended June 30, 2026 and 2025, all shown net of tax:

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

for-Sale Securities Defined Benefit Pension Items Total

3 unchanged sentences

Net current period other comprehensive income (loss) 2,650 24 2,674

Balance at March 31, 2026

Balance at June 30, 2026

$ ( 123,959 ) $ ( 504 ) $ ( 124,463 )

5 unchanged sentences

Net current period other comprehensive income (loss) 5,359 20 5,379

Balance at March 31, 2025

Balance at June 30, 2025

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

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

Reclassifications out of accumulated other comprehensive income (loss) for the three months ended June 30, 2026 are as follows:

Details about

8 unchanged sentences

( 386 ) Net of tax

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

Amortization of defined benefit pension items ( 16 ) Other expense

Tax effect 4 Income tax expense

1 unchanged sentence

Total reclassifications for the period $ ( 398 ) Net income

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

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

Details about

8 unchanged sentences

( 387 ) Net of tax

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

Amortization of defined benefit pension items ( 13 ) Other expense

Tax effect 3 Income tax expense

1 unchanged sentence

Total reclassifications for the period $ ( 397 ) Net income

Reclassifications out of accumulated other comprehensive income (loss) for the six months ended June 30, 2026 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

(dollars in thousands)

Amortization of unrealized losses on held-to-maturity securities $ ( 978 ) Interest income

Tax effect 205 Income tax expense

( 773 ) Net of tax

Amortization of defined benefit pension items ( 32 ) Other expense

Tax effect 8 Income tax expense

( 24 ) Net of tax

Total reclassifications for the period $ ( 797 ) Net income

Reclassifications out of accumulated other comprehensive income (loss) for the six months ended June 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

(dollars in thousands)

Amortization of unrealized losses on held-to-maturity securities $ ( 979 ) Interest income

Tax effect 205 Income tax expense

( 774 ) Net of tax

Amortization of defined benefit pension items ( 26 ) Other expense

Tax effect 6 Income tax expense

( 20 ) Net of tax

Total reclassifications for the period $ ( 794 ) Net income

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 March 31,

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

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Weighted average shares outstanding for basic earnings per common share 25,058,539 25,707,233 25,201,252 25,711,004

4 unchanged sentences

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:

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

Income tax expense for the six months ended June 30, 2026 consisted of the following:

(dollars in thousands) 2026

6 unchanged sentences

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:

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 six months ended June 30, 2026 were as follows:

(dollars in thousands) 2026

8 unchanged sentences

Other nondeductible expenses 135 0.2

Other ( 60 ) ( 0.1 )

Total income tax expense $ 12,345 18.4 %

During the three months ended March 31, 2026, the Company paid no federal income taxes or state income taxes .

The net deferred tax asset recorded in the consolidated balance sheet at March 31, 2026 and December 31, 2025 consisted of the following:

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

During the six months ended June 30, 2026, the Company paid $ 14.0 million in federal income taxes and state income taxes .

The net deferred tax asset recorded in the consolidated balance sheet at June 30, 2026 and December 31, 2025 consisted of the following:

(dollars in thousands) June 30, 2026 December 31, 2025

Deferred tax assets:

20 unchanged sentences

Net deferred tax asset $ 15,711 $ 15,985

The Company has Indiana net operating loss carryforwards of approximately $ 39.5 million at March 31, 2026 that will expire in 2039 if not used.

The Company has Indiana net operating loss carryforwards of approximately $ 31.2 million at June 30, 2026 that will expire in 2039 if not used.

Management has concluded that the state net operating losses will be fully utilized and therefore no valuation allowance is necessary on the state operating loss.

In addition to the net deferred tax assets included above, the deferred income tax asset (liability) allocated to the unrealized gain (loss) on securities available for sale was $ 35.9 million and $ 33.7 million for March 31, 2026 and December 31, 2025, respectively.

The deferred income tax asset allocated to the pension plan and SERP included in equity was $ 171,000 and $ 175,000 at March 31, 2026 and December 31, 2025, respectively.

In addition to the net deferred tax assets included above, the deferred income tax asset (liability) allocated to the unrealized gain (loss) on securities available for sale was $ 33.0 million and $ 33.7 million for June 30, 2026 and December 31, 2025, respectively.

The deferred income tax asset allocated to the pension plan and SERP included in equity was $ 167,000 and $ 175,000 at June 30, 2026 and December 31, 2025, respectively.

The Company evaluated its deferred tax asset at year end 2025 and has concluded that it is more likely than not that it will be realized.

2 unchanged sentences

Unrecognized Tax Benefits

The Company did not have any unrecognized tax benefits at March 31, 2026 and December 31, 2025.

No interest or penalties were recorded in the income statement and no amount was accrued for interest and penalties for the three months ended March 31, 2026.

The Company did not have any unrecognized tax benefits at June 30, 2026 and December 31, 2025.

No interest or penalties were recorded in the income statement and no amount was accrued for interest and penalties for the six months ended June 30, 2026.

Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is the Company's policy to record such accruals in its income taxes accounts.

3 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