What changed in this filing

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Item 1. Financial Statements

2026-05-01 compared with 2025-10-27 · 270 added, 522 removed, 1054 unchanged (43% of the section changed)

3 unchanged sentences

Consolidated Balance Sheets

September 30,

2026 December 31,

12 unchanged sentences

Mortgage servicing rights, at fair value 28,426 27,474

Other real estate owned, net 1,036 —

Premises and equipment, net 41,728 39,692

8 unchanged sentences

Money market 197,402 195,793

Certificates of deposit less than $250,000 192,744 201,296

Certificates of deposit $250,000 and greater 207,537 217,074

Certificates of deposit 391,050 402,759

Total deposits 2,873,746 2,813,029

Borrowings 81,652 81,729

Junior subordinated debentures 10,310 10,310

Operating lease liabilities 11,857 5,941

3 unchanged sentences

Preferred stock, $ 1 par value, 2,500,000 shares authorized, none issued or outstanding

Common stock, $ 0.25 par value, 40,000,000 shares authorized, 22,090,668 and 22,072,840 issued and outstanding at September 30, 2025 and December 31, 2024, respectively

Common stock, $ 0.25 par value, 40,000,000 shares authorized, 22,244,766 and 22,111,637 issued and outstanding at March 31, 2026 and December 31, 2025, respectively

Additional paid-in capital 10,363 10,822

Retained earnings 319,660 309,575

Accumulated other comprehensive loss, net of tax ( 772 ) ( 7,024 )

Accumulated other comprehensive income, net of tax

Total shareholders' equity 335,809 326,544

3 unchanged sentences

Consolidated Statements of Income

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(In Thousands, Except Per Share Data) 2026 2025

10 unchanged sentences

Interest expense on borrowings 79 237

Interest expense on junior subordinated debentures 94 94 280 283

Interest expense on subordinated debentures 1,159 92

Total Interest Expense 10,235 10,264

Net Interest Income 34,661 31,297

Provision for credit losses

Provision (benefit) for credit losses

960 ( 1,409 )

Net Interest Income After Provision for Credit Losses

Net Interest Income After Provision (Benefit) for Credit Losses

33,701 32,706

Other Operating Income

Gain on sale by Pacific Wealth Advisors

14,211 — 14,211 —

Mortgage banking income 6,461 4,251

2 unchanged sentences

Service charges on deposit accounts 811 677

Unrealized gain on marketable equity securities

Unrealized (loss) on marketable equity securities

( 256 ) ( 50 )

6 unchanged sentences

Professional and outside services 1,159 1,115

Insurance expense 802 596 2,575 2,067

Compensation expense - Sallyport acquisition payments

600 — 1,800 —

Marketing expense 901 672

Compensation expense - Sallyport acquisition payments

Insurance expense 404 1,017

OREO expense, net rental income and gains on sale 12 3

13 unchanged sentences

Consolidated Statements of Comprehensive Income

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

Three Months Ended March 31,

(In Thousands) 2026 2025

2 unchanged sentences

Securities available for sale:

Unrealized holding gains arising during the period

Unrealized holding (losses) gains arising during the period

($ 623 ) $ 3,974

Derivatives and hedging activities:

Unrealized holding (losses) arising during the period

( 60 ) ( 488 ) ( 403 ) ( 160 )

Foreign currency translation income (loss) ( 127 ) — 23 —

Income tax expense related to net unrealized (gains)

Unrealized holding gains (losses) arising during the period

Foreign currency translation income

Income tax expense related to net unrealized losses (gains)

175 ( 1,061 )

Other comprehensive income, net of tax

Other comprehensive (loss) income, net of tax

( 394 ) 2,674

12 unchanged sentences

Exercise of stock options and vesting of restricted stock units, net 12 3 ( 20 ) — — ( 17 )

Repurchase of common stock ( 56 ) ( 14 ) ( 774 ) — — ( 788 )

Other comprehensive income, net of tax

22 unchanged sentences

Exercise of stock options and vesting of restricted stock units, net 21 5 ( 173 ) — — ( 168 )

Other comprehensive loss, net of tax

Other comprehensive income, net of tax

— — — — 1,391 1,391

12 unchanged sentences

Exercise of stock options and vesting of restricted stock units, net 133 33 ( 769 ) — — ( 736 )

Other comprehensive income, net of tax

Other comprehensive loss, net of tax

— — — — ( 394 ) ( 394 )

1 unchanged sentence

Balance as of March 31, 2026 22,245 $ 5,561 $ 10,363 $ 319,660 $ 225 $ 335,809

Cash dividend on common stock ($ 0.16 per share)

— — — ( 3,585 ) — ( 3,585 )

Stock-based compensation expense — — 327 — — 327

Exercise of stock options and vesting of restricted stock units, net 4 1 ( 13 ) — — ( 12 )

Other comprehensive income, net of tax

— — — — 1,955 1,955

Net income — — — 11,778 — 11,778

Balance as of June 30, 2025

22,087 $ 5,522 $ 9,837 $ 277,255 ($ 2,395 ) $ 290,219

Cash dividend on common stock ($ 0.16 per share)

— — — ( 3,591 ) — ( 3,591 )

Stock-based compensation expense — — 363 — — 363

Exercise of stock options and vesting of restricted stock units, net 4 1 ( 17 ) — — ( 16 )

Other comprehensive income, net of tax

— — — — 1,623 1,623

Net income — — — 27,065 — 27,065

Balance as of September 30, 2025

22,091 $ 5,523 $ 10,183 $ 300,729 ($ 772 ) $ 315,663

See notes to consolidated financial statements

1 unchanged sentence

Consolidated Statements of Cash Flows

Nine Months Ended September 30,

Three Months Ended March 31,

(In Thousands) 2026 2025

3 unchanged sentences

Depreciation and amortization of premises and equipment 855 895

Depreciation of debt issuance costs

Amortization of investment security premium, net of discount accretion ( 118 ) 50

Unrealized gain on marketable equity securities

( 108 ) ( 830 )

Unrealized loss on marketable equity securities

Deferred tax (benefit) expense 1,729 —

Stock-based compensation 310 232

9 unchanged sentences

Origination of loans held for sale ( 123,384 ) ( 108,499 )

Gain on sale of other real estate owned — ( 392 )

Gain on sale by Pacific Wealth Advisors

Net changes in assets and liabilities:

2 unchanged sentences

Decrease in other assets 5,763 2,836

Decrease in other liabilities

( 1,682 ) ( 6,808 )

Net Cash Provided (Used) by Operating Activities 104,795 ( 44,245 )

(Decrease) increase in other liabilities ( 12,174 ) 1,420

Net Cash Provided by Operating Activities 27,217 16,540

Investing Activities:

3 unchanged sentences

Purchases of FHLB stock ( 421 ) ( 7,472 )

Purchases of investment securities held to maturity ( 15,000 ) —

Proceeds from sales/calls/maturities of securities available for sale 56,693 34,631

Proceeds from calls of marketable equity securities

Proceeds from sales/calls/maturities of securities held to maturity 10,000 —

Proceeds from redemption of FHLB stock 125 7,461

(Increase) decrease in purchased receivables, net ( 34,021 ) 13,278

Increase in purchased receivables, net ( 3,383 ) ( 21,457 )

Increase in loans, net

( 63,845 ) ( 96,010 )

Proceeds from the sale of loans

Proceeds from sale of other real estate owned — 392

Sallyport Commercial Finance, LLC acquisition, net of cash received — 144

5 unchanged sentences

60,717 97,788

Increase in borrowings ( 10,129 ) ( 321 )

Repurchase of common stock — ( 788 )

Decrease in borrowings

( 112 ) ( 9,909 )

Proceeds from the issuance of common stock 483 —

Cash dividends paid ( 3,557 ) ( 3,534 )

7 unchanged sentences

Interest paid $ 9,228 $ 10,345

Noncash commitments to invest in Low Income Housing Tax Credit Partnerships $ 13,407 $ —

Transfer of loans to other real estate owned $ 1,036 $ —

Non-cash lease liability arising from obtaining right of use assets $ 6,426 $ —

4 unchanged sentences

The Company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S.

The accompanying consolidated financial statements have not been audited, and they include the accounts of the Company and it's wholly-owned subsidiaries, and the wholly owned subsidiaries of Northrim Bank (the “Bank”).

The accompanying consolidated financial statements have not been audited, and they include the accounts of the Company and its wholly-owned subsidiaries, and the wholly owned subsidiaries of Northrim Bank (the “Bank”).

Significant intercompany balances have been eliminated in consolidation.

6 unchanged sentences

The Company has evaluated subsequent events and transactions for potential recognition or disclosure.

Operating results for the interim period ended September 30, 2025 are not necessarily indicative of the results anticipated for the year ending December 31, 2025.

Operating results for the interim period ended March 31, 2026 are not necessarily indicative of the results anticipated for the year ending December 31, 2026.

These consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

The Company’s significant accounting policies are discussed in Note 1 to the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

There have been no significant changes in our application of these accounting policies in 2025.

There have been no significant changes in our application of these accounting policies in 2026, except for the addition of the following item.

Subordinated Debt:

The Company’s subordinated debt is recorded at its contractual principal amount net of unamortized debt issuance costs and original issue discounts or premiums, if any.

The debt is subordinate in right of payment to all existing and future senior indebtedness of the Company, as defined in the related indenture or credit agreement.

Debt issuance costs incurred in connection with subordinated debt are deferred and presented as a direct deduction from the carrying amount of the related debt and are amortized over the term of the debt using the effective interest method.

Interest expense related to subordinated debt includes cash interest and the amortization of debt issuance costs and is recognized in interest expense in the consolidated statements of income.

Common Stock Split

6 unchanged sentences

Accounting pronouncements to be implemented in future periods

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures (“ASU 2023-09”).

The amendments in ASU 2023-09 improve transparency of income tax disclosures related to rate reconciliation and income taxes paid disclosures by requiring consistent categories and greater disaggregation of information in rate reconciliation, and by requiring disclosure of income taxes paid disaggregated by jurisdiction.

The amendments in ASU 2023-09 allow investors to better assess, in their capital allocation decisions, how an entity's worldwide operations and related tax risks and tax planning and operations opportunities affect its income tax rate and prospects for future cash flow.

ASU 2023-09 is effective for the Company for fiscal years beginning after December 15, 2024 and may be applied on a prospective or retrospective basis.

The Company intends to adopt ASU 2023-09 prospectively and we expect the adoption to expand our disclosures around income taxes.

Business Combinations

On October 31, 2024, the Company completed the acquisition of 100 % of the equity interest in Sallyport Commercial Finance, LLC (“SCF” or “Sallyport”) in a cash transaction that is valued at approximately $ 53.9 million.

The primary reason for the acquisition was to expand the Company's presence in the specialty finance industry.

SCF provides factoring, asset based lending, and alternative working capital solutions to small and medium sized enterprises in the United States, and, to a lesser extent, in Canada and the United Kingdom through its subsidiaries.

SCF will operate as a wholly-owned subsidiary of the Bank, and is expected to complement the products currently offered by Northrim Funding Services, a factoring division of the Bank.

The consideration transferred or transferable to the former owners of SCF and the assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting and were recorded at their estimated fair values as of the October 31, 2024 acquisition date.

The Company paid $ 47.9 million in cash on October 31, 2024 when the acquisition was completed.

The Company had pre-existing loans to SCF which totaled $ 12.0 million.

The fair value of these loans approximated their carrying value, and as a result of the acquisition, the loans were effectively settled at their carrying value, resulting in no gain or loss.

The fair value of the loans were considered as part of the total purchase consideration in the transaction.

Estimated fair values recorded in the transaction are subject to change for up to one year after the closing date of the acquisition.

The application of the acquisition method of accounting resulted in the initial recognition of goodwill in the amount of $ 35.0 million.

No other intangibles were identified.

In February 2025, in accordance with the terms of the purchase agreement, the Company determined the final value of consideration transferred to the former owners of SCF.

The final value of consideration transferred decreased $ 144,000 to $ 47.7 million from $ 47.9 million, which decreased goodwill to $ 34.9 million.

The former owners of SCF (the “sellers”) will receive additional cash proceeds (the “earn-out payments”) of up to $ 6.0 million.

The earn-out payments of $ 2.0 million per year are payable on each of the first three anniversaries of the closing date.

The purchase agreement provides for the these earn-out payments to be paid to the sellers in future periods, provided that certain principal employees of SCF, including certain of the sellers, have not been terminated for cause or terminated their employment for good reason.

The earn-out payments have not been included in acquisition consideration and are being expensed as compensation expense during the periods in which they are being earned based on management's determination that payment of these amounts is probable.

A summary of the net assets acquired and the estimated fair value adjustments are presented below:

(In Thousands) October 31, 2024

Cost basis net assets $ 29,638

Cash payment made ( 47,855 )

Pre-existing debt effectively settled ( 12,000 )

Fair value adjustments:

Net loans ( 1,260 )

Net purchased receivables ( 3,524 )

Goodwill ($ 35,001 )

The $ 35.0 million of goodwill recorded in connection with the acquisition of SCF represents the excess purchase price over the estimated fair value of the net assets acquired, and resulted from the expected decrease in funding costs and, to a lesser extent, expected operational efficiencies.

All of the goodwill is expected to be deductible for tax purposes.

A summary of the assets acquired and liabilities assumed at their estimated fair values are presented below:

(In Thousands) October 31, 2024

Assets Acquired:

Cash and equivalents $ 7,197

Loans, net 9,158

Purchased receivables, net 48,034

Premises and equipment

Right-of-use assets 44

Other assets 1,642

Total assets acquired $ 66,129

Liabilities Assumed:

Borrowings $ 40,207

Lease liability 47

Other liabilities 1,021

Total liabilities assumed $ 41,275

The fair value of assets acquired and liabilities assumed approximates book value as of the acquisition date as all loans and borrowings have variable interest rates.

Purchased receivables have an average life of less than 45 days.

Some of the assets acquired exhibited evidence of credit deterioration at the acquisition date.

These assets were designated as purchased credit deteriorated (“PCD”) assets in accordance with U.S.

The following table presents PCD loan and purchased receivable activity at the date of acquisition:

(In Thousands) Loans Purchased Receivables

Unpaid principal balance $ 10,418 $ 51,558

ACL at acquisition ( 1,260 ) ( 3,524 )

Total $ 9,158 $ 48,034

Based on an evaluation in accordance with Rule 3-05 and Rule 11-01(b) of Regulations S-X, the acquisition of SCF does not meet the significance thresholds requiring separate financial statement disclosure.

The operations of SCF are included in our operating results from October 31, 2024, and added revenue of $ 2.6 million, non-interest expense of $ 1.5 million, and net income of $ 943,000 , before taxes, for the year ended December 31, 2024.

SCF’s results of operations prior to the acquisition are not included in our operating results.

Additionally, deal-related costs of $ 1.1 million for the year ended December 31, 2024 have been incurred and expensed in connection with the acquisition of Sallyport and recognized within professional and outside services expense on the Consolidated Statements of Income .

The following tables present unaudited pro forma results of operations for the three and nine-month periods ended September 30, 2024 as if the acquisition of SCF had occurred on January 1, 2024.

The proforma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2024, primarily due to the Company's lower cost of funding as compared to SCF.

(In Thousands, except per share data) Three Months Ended September 30, 2024

Pro Forma Adjustments 3

Pro Forma Combined

Net interest and other income $ 40,429 $ 4,748 $ 45,177

Net income 8,825 1,491 ( 424 ) 9,892

Earnings Per Share, Basic $ 0.40 $ 0.45

Earnings Per Share, Diluted $ 0.39 $ 0.44

Weighted Average Shares Outstanding, Basic 22,007,772 22,007,772

Weighted Average Shares Outstanding, Diluted 22,332,220 22,332,220

(In Thousands, except per share data) Nine Months Ended September 30, 2024

Pro Forma Adjustments 3

Pro Forma Combined

Net interest and other income $ 111,350 $ 14,741 $ 126,091

Net income 26,044 3,624 ( 1,030 ) 28,638

Earnings Per Share, Basic $ 1.18 $ 1.30

Earnings Per Share, Diluted $ 1.17 $ 1.28

Weighted Average Shares Outstanding, Basic 22,002,812 22,002,812

Weighted Average Shares Outstanding, Diluted 22,296,540 22,296,540

1 SCF represents unaudited results from July 1 to September 30 for 2024.

2 SCF represents unaudited results from January 1 to September 30 for 2024.

3 Proforma adjustments include a provision for income taxes using the Company's statutory rate.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (“ASU 2024-03”).

This updated mandates that public business entities provide detailed disclosures in the notes to the financial statements, breaking down specific expense categories such as purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities included in each relevant expense cation.

The objective is to enhance transparency, enabling investors to gain a clearer understanding of the nature and impact of these expenses on the Company's financial performance.

ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and may be applied on a prospective or retrospective basis.

The Company intends to adopt ASU 2024-03 prospectively and does not believe that the adoption will have a material impact on the Company's consolidated financial statements.

In November 2025, the FASB issued ASU 2025‑08, Financial Instruments—Credit Losses (Topic 326):

Purchased Loans (“ASU 2025-08”).

The amendments in ASU 2025‑08 are intended to simplify and improve the accounting for acquired loans under the Current Expected Credit Losses (“CECL”) model by expanding the use of the “gross‑up” approach currently applied only to purchased credit deteriorated (“PCD”) assets.

Under prior generally accepted accounting principles, entities were required to distinguish between PCD and non‑PCD acquired loans, resulting in differing Day 1 accounting and concerns about complexity, comparability, and perceived double‑counting of credit losses for non‑PCD loans.

ASU 2025‑08 creates a new category of “purchased seasoned loans,” defined as acquired loans—in a business combination or acquired more than 90 days after origination—other than credit cards, that meet certain criteria.

These loans must now be accounted for using the gross‑up approach.

This method requires an entity to recognize an allowance for expected credit losses at the acquisition date with a corresponding increase to the loan’s amortized cost basis, eliminating Day 1 credit loss expense while reducing subsequent interest income.

Existing guidance for PCD assets remains unchanged.

ASU 2025‑08 is effective for the Company for interim and annual reporting periods beginning after December 15, 2026 and must be applied prospectively to loans acquired after the adoption date.

Early adoption is permitted.

The Company is currently evaluating the impact of ASU 2025‑08 but does not expect the adoption to have a material effect on its consolidated financial statements.

In November 2025, FASB issued ASU 2025‑09, Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements (“ASU 2025‑09”).

The amendments in ASU 2025‑09 clarify and expand certain aspects of hedge accounting to better align financial reporting with the economics of an entity’s risk‑management activities.

The ASU addresses stakeholder feedback following the implementation of prior hedge accounting guidance and issues arising from the global transition away from LIBOR.

The amendments include targeted improvements across several areas of hedge accounting.

Among the key changes, ASU 2025‑09 (i) expands the ability to aggregate forecasted transactions with similar risk exposures in cash flow hedges, (ii) introduces a model that facilitates hedge accounting for forecasted interest payments on “choose‑your‑rate” debt instruments, (iii) broadens hedge accounting for forecasted purchases and sales of nonfinancial assets, and (iv) updates guidance related to net written options used as hedging instruments.

These improvements are intended to reduce complexity, increase consistency, and enhance the decision‑usefulness of hedge accounting outcomes.

ASU 2025‑09 is effective for the Company for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years.

Early adoption is permitted.

The Company is currently evaluating the impact of ASU 2025‑09 and does not expect the adoption to have a material effect on its consolidated financial statements.

In December 2025, the FASB issued ASU 2025‑11, Interim Reporting (Topic 270):

Narrow‑Scope Improvements (“ASU 2025‑11”).

The amendments are intended to improve the clarity and navigability of interim reporting requirements within Topic 270 by clarifying when interim reporting guidance applies, enhancing the organization of required interim disclosures, and specifying the form and content of interim financial statements.

The guidance responds to stakeholder feedback that existing interim reporting requirements were difficult to navigate because of the historical origins and accumulated amendments within Topic 270.

ASU 2025‑11 adds a disclosure principle requiring entities to disclose events that occur after the end of the most recent annual reporting period that have a material impact on the entity.

The amendments also introduce a comprehensive list of required interim disclosures drawn from various Codification topics and clarify the presentation requirements for interim financial statements, including condensed financial statements and accompanying footnotes.

Importantly, the ASU does not change the fundamental nature of interim reporting nor expand or reduce existing disclosure requirements;

rather, it improves clarity and consistency across entities that issue interim financial statements in accordance with generally accepted accounting principles.

ASU 2025‑11 is effective for the Company for interim reporting periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted, and the amendments may be applied either prospectively or retrospectively.

The Company is currently evaluating the impact of ASU 2025‑11 and does not expect the adoption to have a material effect on its consolidated financial statements.

In December 2025, the FASB issued ASU 2025‑12, Codification Improvements (“ASU 2025‑12”).

This Update is part of the FASB’s ongoing project to address stakeholder‑identified issues in the Accounting Standards Codification.

The amendments consist of technical corrections, clarifications, and other incremental improvements intended to enhance the clarity, consistency, and usability of U.S.

These Codification improvements are not expected to significantly affect current accounting practices or impose substantial costs on most entities.

The amendments span a wide range of Topics and include clarifications to diluted earnings‑per‑share calculations, updates to disclosure requirements for certain lease receivables, refinements to the calculation of reference amounts for beneficial interests, clarification of permissible methods for treasury stock retirements, and guidance regarding the transfer and measurement of receivables arising from contracts with customers.

Although the updates are largely non‑substantive, certain clarifications may affect how entities apply existing guidance where the prior Codification language was ambiguous or inconsistent.

ASU 2025‑12 is effective for the Company for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods.

Early adoption is permitted.

The Company is currently evaluating the impact of ASU 2025‑12 and does not expect the adoption to have a material effect on its consolidated financial statements.

Investment Securities

Marketable Equity Securities

The Company held marketable equity securities with fair values of $ 8.3 million at September 30, 2025 and $ 8.7 million at December 31, 2024, respectively.

The Company held marketable equity securities with fair values of $ 10.1 million at March 31, 2026 and $ 8.4 million at December 31, 2025, respectively.

The realized and unrealized gains (losses) recognized on marketable equity securities in other operating income in the Company's Consolidated Statements of Income were as follows:

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

Three Months Ended March 31,

(In Thousands) 2026 2025

Unrealized gain (loss) on marketable equity securities

Unrealized (loss) on marketable equity securities

($ 256 ) ($ 50 )

4 unchanged sentences

(In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value

September 30, 2025

March 31, 2026

Securities available for sale

4 unchanged sentences

Total securities available for sale $ 419,742 $ 961 ($ 2,256 ) $ — $ 418,447

(In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value

September 30, 2025

(In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses

March 31, 2026

Securities held to maturity

Corporate bonds $ 31,750 $ — ($ 1,066 ) $ — $ 30,684

Allowance for credit losses — — — —

Total securities held to maturity, net of ACL $ 36,750 $ 594 ($ 861 ) $ 36,483

Total securities held to maturity

$ 31,750 $ — ($ 1,066 ) $ — $ 30,684

(In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value

2 unchanged sentences

Treasury and government sponsored entities $ 389,391 $ 1,717 ($ 2,371 ) $ — $ 388,737

Agency mortgage-backed securities 4,797 1 — 4,798

Corporate bonds 5,003 — ( 51 ) — 4,952

1 unchanged sentence

Total securities available for sale $ 421,332 $ 1,751 ($ 2,422 ) $ — $ 420,661

(In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value

(In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses

December 31, 2025

1 unchanged sentence

Corporate bonds $ 26,750 $ 426 ($ 578 ) $ — $ 26,598

Allowance for credit losses — — — —

Total securities held to maturity, net of ACL $ 36,750 $ 175 ($ 1,175 ) $ 35,750

Gross unrealized losses on available for sale securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2025 and December 31, 2024 were as follows:

Total securities held to maturity

$ 26,750 $ 426 ($ 578 ) $ — $ 26,598

Gross unrealized losses on available for sale securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2026 and December 31, 2025 were as follows:

Less Than 12 Months More Than 12 Months Total

(In Thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses

September 30, 2025

March 31, 2026

Securities available for sale

11 unchanged sentences

Corporate bonds — — 4,592 ( 51 ) 4,592 ( 51 )

Collateralized loan obligations — — 4,993 ( 2 ) 4,993 ( 2 )

Total $ 19,992 ($ 8 ) $ 240,979 ($ 2,414 ) $ 260,971 ($ 2,422 )

5 unchanged sentences

Consideration is given to the extent to which the fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value.

At September 30, 2025, the Company had two available for sale securities in an unrealized loss position without an ACL that have been in a loss position for less than twelve months.

There were 30 available for sale securities without an ACL with unrealized losses at September 30, 2025 that have been in a loss position for more than twelve months.

At September 30, 2025, the Company had two held to maturity securities in an unrealized loss position without an ACL that have been in a loss position for more than twelve months.

At March 31, 2026, the Company had 16 available for sale securities in an unrealized loss position without an ACL that have been in a loss position for less than twelve months.

There were 22 available for sale securities without an ACL with unrealized losses at March 31, 2026 that have been in a loss position for more than twelve months.

At March 31, 2026, the Company had two held to maturity securities in an unrealized loss position without an ACL that have been in a loss position for more than twelve months.

There was one held to maturity security without an ACL with an unrealized loss at March 31, 2026 that had been in a loss position for less than twelve months.

Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost.

The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline.

Accordingly, as of September 30, 2025, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, primarily changes in interest rates and other market conditions, and therefore no losses have been recognized in the Company's Consolidated Statements of Income .

At September 30, 2025 and December 31, 2024, carrying amounts of $ 211.5 million and $ 177.4 million in securities were pledged for deposits and borrowings, respectively.

The amortized cost and estimated fair values of available for sale and held to maturity debt securities at September 30, 2025, are distributed by contractual maturity as shown below.

Accordingly, as of March 31, 2026, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, primarily changes in interest rates and other market conditions, and therefore no losses have been recognized in the Company's Consolidated Statements of Income .

At March 31, 2026 and December 31, 2025, carrying amounts of $ 214.9 million and $ 210.3 million in securities were pledged for deposits and borrowings, respectively.

The amortized cost and estimated fair values of available for sale and held to maturity debt securities at March 31, 2026, are distributed by contractual maturity as shown below.

Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

(In Thousands) Amortized Cost Fair Value

June 30, 2025

March 31, 2026

Treasury and government sponsored entities

4 unchanged sentences

Agency mortgage-backed securities

Over 10 years $ 4,887 $ 4,887

5-10 years $ 4,706 $ 4,708

Total $ 4,706 $ 4,708

Corporate bonds

Within 1 year $ 10,000 $ 10,015

1-5 years $ 20,001 $ 19,978

3 unchanged sentences

5-10 years $ 7,728 $ 7,739

5-10 years $ 17,825 $ 17,869

Over 10 years 19,000 19,002

Total $ 26,728 $ 26,741

There were no proceeds from sales of investment securities for the three and nine-month periods ending September 30, 2025 and 2024.

A summary of interest income for the three and nine-month periods ending September 30, 2025 and 2024, on available for sale investment securities are as follows:

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

There were no proceeds from sales of investment securities for the three-month periods ending March 31, 2026 and 2025.

A summary of interest income for the three-month periods ending March 31, 2026 and 2025, on available for sale investment securities are as follows:

Three Months Ended March 31,

(In Thousands) 2026 2025

4 unchanged sentences

Total taxable interest income $ 3,005 $ 2,952

Municipal securities $ — $ — $ — $ 3

Total tax-exempt interest income $ — $ —

2 unchanged sentences

Loans Held for Sale

Loans held for sale are comprised entirely of 1-4 family residential mortgage loans as of September 30, 2025 and December 31, 2024.

Loans held for sale are comprised entirely of 1-4 family residential mortgage loans as of March 31, 2026 and December 31, 2025.

The Company designates loans held for sale as either carried at fair value or the lower of cost or fair value at loan level at origination.

Loans Held for Investment

The following table presents amortized cost and unpaid principal balance of loans, categorized by the segments used in the Company's Current Expected Credit Losses (“CECL”) methodology to assess credit risk, for the periods indicated:

September 30, 2025 December 31, 2024

The following table presents amortized cost and unpaid principal balance of loans, categorized by the segments used in the Company's CECL methodology to assess credit risk, for the periods indicated:

March 31, 2026 December 31, 2025

(In Thousands) Amortized Cost Unpaid Principal Difference Amortized Cost Unpaid Principal Difference

15 unchanged sentences

Net loans $ 2,333,890 $ 2,368,261 ($ 9,559 ) $ 2,271,762 $ 2,305,663 ($ 10,164 )

The difference between the amortized cost and unpaid principal balance is net deferred origination fees totaling $ 9.8 million at September 30, 2025 and $ 9.2 million at December 31, 2024.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $ 9.8 million and $ 8.4 million at September 30, 2025 and December 31, 2024, respectively, and is included in other assets in the Consolidated Balance Sheets .

The difference between the amortized cost and unpaid principal balance is net deferred origination fees totaling $ 9.6 million at March 31, 2026 and $ 10.2 million at December 31, 2025.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $ 11.1 million and $ 9.6 million at March 31, 2026 and December 31, 2025, respectively, and is included in other assets in the Consolidated Balance Sheets .

Allowance for Credit Losses

The table below presents activity in the ACL related to loans held for investment for the periods indicated.

Three Months Ended September 30, Beginning Balance Credit Loss Expense (Benefit) Charge-offs Recoveries Ending Balance

(In Thousands)

Commercial & industrial loans $ 7,508 $ 1,199 ($ 1,300 ) $ 105 $ 7,512

Commercial real estate:

Owner occupied properties 2,271 92 — 30 2,393

Non-owner occupied and multifamily properties 4,183 179 — — 4,362

Residential real estate:

1-4 family residential properties secured by first liens 4,693 271 — — 4,964

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens 928 76 — 5 1,009

1-4 family residential construction loans 270 12 — — 282

Other construction, land development and raw land loans 2,308 113 — — 2,421

Obligations of states and political subdivisions in the US 135 ( 3 ) — — 132

Agricultural production, including commercial fishing 197 ( 9 ) — 1 189

Consumer loans 82 38 ( 34 ) 1 87

Other loans 10 ( 4 ) — — 6

Total $ 22,585 $ 1,964 ($ 1,334 ) $ 142 $ 23,357

Commercial & industrial loans $ 4,047 $ 153 $ — $ 104 $ 4,304

Commercial real estate:

Owner occupied properties 2,963 ( 42 ) — — 2,921

Non-owner occupied and multifamily properties 3,499 273 — — 3,772

Residential real estate:

1-4 family residential properties secured by first liens 3,489 571 — — 4,060

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens 665 62 — 6 733

1-4 family residential construction loans 180 62 — — 242

Other construction, land development and raw land loans 2,526 639 — — 3,165

Obligations of states and political subdivisions in the US 100 — — — 100

Agricultural production, including commercial fishing 157 ( 3 ) — 1 155

Consumer loans 61 25 ( 15 ) — 71

Other loans 7 ( 2 ) — — 5

Total $ 17,694 $ 1,738 ($ 15 ) $ 111 $ 19,528

Nine Months Ended September 30, Beginning Balance Credit Loss Expense (Benefit) Charge-offs Recoveries Ending Balance

Three Months Ended March 31, Beginning Balance Credit Loss Expense (Benefit) Charge-offs Recoveries Ending Balance

(In Thousands)

28 unchanged sentences

The following table shows gross charge-offs by year of loan origination for the periods indicated:

Nine Months Ended September 30,

Three Months Ended March 31,

(In Thousands) 2026 2025 2024 2023 2022 Prior Total

29 unchanged sentences

Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below.

September 30, 2025 2025 2024 2023 2022 2021 Prior Total

March 31, 2026 2026 2025 2024 2023 2022 Prior Total

(In Thousands)

116 unchanged sentences

Due Current Total Greater Than 90 Days Past Due Still Accruing

September 30, 2025

March 31, 2026

Commercial & industrial loans $ — $ 728 $ 1,020 $ 1,748 $ 461,250 $ 462,998 $ —

38 unchanged sentences

Nonaccrual loans:

Nonaccrual loans net of government guarantees totaled $ 9.6 million and $ 7.5 million at September 30, 2025 and December 31, 2024, respectively.

Nonaccrual loans net of government guarantees totaled $ 14.2 million and $ 12.0 million at March 31, 2026 and December 31, 2025, respectively.

The following table presents loans on nonaccrual status and loans on nonaccrual status for the periods presented for which there was no related ACL.

All loans with no ACL are individually evaluated for credit losses in the Company's CECL methodology.

September 30, 2025 December 31, 2024

(In Thousands) Nonaccrual Nonaccrual With No ACL Nonaccrual Nonaccrual With No ACL

March 31, 2026 December 31, 2025

(In Thousands) Nonaccrual Nonaccrual With No ACL ACL on Nonaccrual Nonaccrual Nonaccrual With No ACL ACL on Nonaccrual

Commercial & industrial loans $ 6,079 $ 2,022 $ 1,841 $ 4,251 $ 1,641 $ 1,248

1 unchanged sentence

Owner occupied properties 4,994 2,652 69 5,134 2,725 86

Non-owner occupied and multifamily properties 1,143 — 379 — — —

Residential real estate:

1-4 family residential properties secured by first liens 499 188 47 514 — 60

1-4 family residential properties secured by junior liens

and revolving secured by 1-4 family first liens 417 372 550 466

1-4 family residential construction loans — — 94 94

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens 412 372 1 415 372 1

Other construction, land development and raw land loans 1,654 1,654 — 1,654 1,654 —

Consumer loans 10 — — —

Total nonaccrual loans 14,781 6,888 2,337 11,968 6,392 1,395

1 unchanged sentence

Net nonaccrual loans $ 14,214 $ 6,321 $ 2,337 $ 11,968 $ 6,392 $ 1,395

There was no interest on nonaccrual loans reversed through interest income during the three or nine -month periods ending September 30, 2025 or September 30, 2024.

There was no interest earned on nonaccrual loans with a principal balance during the nine -month periods ending September 30, 2025 and September 30, 2024.

However, the Company recognized interest income of $ 143,000 and $ 11,000 in the three-month periods ending September 30, 2025 and 2024, respectively, and $ 230,000 and $ 246,000 in the nine -month periods ending September 30, 2025 and 2024, respectively, related to interest collected on nonaccrual loans whose principal had been paid down to zero.

There was no interest on nonaccrual loans reversed through interest income during the three-month periods ending March 31, 2026 or March 31, 2025.

There was no interest earned on nonaccrual loans with a principal balance during the three -month periods ending March 31, 2026 and March 31, 2025.

However, the Company recognized interest income of $ 68,000 and $ 42,000 in the three-month periods ending March 31, 2026 and 2025, respectively, related to interest collected on nonaccrual loans whose principal had been paid down to zero.

Loan Modifications:

5 unchanged sentences

The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below:

Three Months Ended September 30, 2025

Three Months Ended March 31, 2026

Payment Modification Term and payment modifications Total Modifications Percentage of Class of Financing Receivable

3 unchanged sentences

Total $ — $ — $ — — %

Three Months Ended September 30, 2024

Three Months Ended March 31, 2025

Payment Modification Term and payment modifications Total Modifications Percentage of Class of Financing Receivable

(In Thousands)

Commercial & industrial loans $ — $ 195 $ 195 0.05 %

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens 372 — 372 0.82 %

Total $ 372 $ 195 $ 567 0.03 %

Nine Months Ended September 30, 2025

Term Modification Term and payment modifications Total Modifications Percentage of Class of Financing Receivable

(In Thousands)

Commercial real estate:

1 unchanged sentence

Total $ — $ 3,252 $ 3,252 0.15 %

Nine Months Ended September 30, 2024

Term Modification Payment Modification Term and payment modifications Total Modifications Percentage of Class of Financing Receivable

(In Thousands)

Commercial & industrial loans $ 4,033 $ — $ 448 $ 4,481 1.08 %

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens — 372 — 372 0.82 %

Total $ 4,033 $ 372 $ 448 $ 4,853 0.24 %

The Company has no outstanding unfunded commitments to the borrowers included in the previous table.

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

Three Months Ended September 30, 2025

Three Months Ended March 31, 2026

Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (months)

2 unchanged sentences

Owner occupied properties $ — — % 0

Three Months Ended September 30, 2024

Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (months)

(In Thousands)

Commercial & industrial loans $ — — % 73

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2025

Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (months)

2 unchanged sentences

Owner occupied properties $ — — % 33

Nine Months Ended September 30, 2024

Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (months)

(In Thousands)

Commercial & industrial loans $ — 8 % 10

The following table presents the amortized cost basis of loans to borrowers experiencing financial difficulty as of the dates indicated.

These are loans that have been modified within twelve months of the dates indicated:

(In Thousands) September 30, 2025 December 31, 2024

(In Thousands) March 31, 2026 December 31, 2025

Commercial & industrial loans $ 219 $ 142

7 unchanged sentences

The following table presents the amortized cost basis of loans that had a payment default during the periods indicated and were modified in the twelve months before default to borrowers experiencing financial difficulty:

Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025

Term and payment modification Term and payment modification

Three Months Ended March 31, 2026

Term modification Term and payment modification

(In Thousands)

1 unchanged sentence

Owner occupied properties $ — $ 733

Total $ 3,230 $ 3,230

Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024

Term modification Term modification

(In Thousands)

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens 372 —

1-4 family residential construction loans — 99

Other construction, land development and raw land loans 1 —

Total $ 1,748 $ 733

Three Months Ended March 31, 2025

Term modification

(In Thousands)

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens $ —

The Company monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

The following table presents the payment performance of loans that have been modified in the last twelve months as of the date indicated:

September 30, 2025

March 31, 2026

Greater Than 89 Days Past Due Total Past Due Current

7 unchanged sentences

Total $ 1,748 $ 1,748 $ 3,390 $ 5,138

September 30, 2024

March 31, 2025

60-89 Days Past Due Greater Than 89 Days Past Due Total Past Due Current Total

5 unchanged sentences

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens — 460 460 — 460

1-4 family residential construction loans — 99 99 — 99

Other construction, land development and raw land loans — 1,490 1,490 — 1,490

5 unchanged sentences

Income on purchased receivables is accrued and recognized on the principal amount outstanding using an effective interest method except when management believes doubt exists as to the collectability of the income or principal.

There were six nonperforming purchased receivables with a balance of $ 2.3 million as of September 30, 2025 and there were four nonperforming purchased receivable with a balance of $ 3.8 million as of December 31, 2024 for which management was not accruing income.

There were no nonperforming purchased receivables as of March 31, 2026 and there was one nonperforming purchased receivable with a balance of $ 67,000 as of December 31, 2025 for which management was not accruing income.

The following table summarizes the components of net purchased receivables for the dates indicated:

(In Thousands) September 30, 2025 December 31, 2024

(In Thousands) March 31, 2026 December 31, 2025

Purchased receivables $ 105,029 $ 101,642

2 unchanged sentences

The following table sets forth information regarding changes in the ACL on purchased receivables for the periods indicated:

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

Three Months Ended March 31,

(In Thousands) 2026 2025

Balance at beginning of period $ — $ 3,649

Adjustment related to PCD collections payable to sellers 1

( 1,513 ) — ( 1,513 ) —

Charge-offs — —

3 unchanged sentences

Balance at end of period $ — $ 3,695

1 Represents a reduction in the allowance for credit losses on a purchased credit deteriorated purchased receivable acquired in 2024 in connection with the Sallyport acquisition.

Collections received during the period presented above are contractually payable to the sellers under the purchase agreement if collected within one year of the acquisition of SCF.

Accordingly, the decrease in the allowance was offset by the recognition of a liability to the sellers, and no benefit was recognized in the provision for credit losses.

Servicing Rights

Mortgage servicing rights

The following table details the activity in the Company's mortgage servicing rights (“MSR”) for the three and nine-month periods ended September 30, 2025 and 2024:

Three Months Ended September 30, 2025 Nine Months Ended September 30,

The following table details the activity in the Company's mortgage servicing rights (“MSR”) for the three-month periods ended March 31, 2026 and 2025:

Three Months Ended March 31,

(In Thousands) 2026 2025

4 unchanged sentences

( 590 ) ( 533 )

( 612 ) ( 402 ) ( 1,608 ) ( 1,036 )

Balance, end of period $ 28,426 $ 26,814

1 unchanged sentence

(2) Represents changes due to collection/realization of expected cash flows over time.

The following table details information related to our serviced mortgage loan portfolio as of September 30, 2025 and December 31, 2024:

(In Thousands) September 30, 2025 December 31, 2024

The following table details information related to our serviced mortgage loan portfolio as of March 31, 2026 and December 31, 2025:

(In Thousands) March 31, 2026 December 31, 2025

Balance of mortgage loans serviced for others $ 1,642,195 $ 1,629,528

2 unchanged sentences

MSR as a percentage of serviced loans 1.73 % 1.69 %

The Company recognized servicing fees of $ 1.5 million and $ 1.1 million during the three-month periods ending September 30, 2025 and 2024, respectively, and $ 4.4 million and $ 3.2 million during the nine -month periods ending September 30, 2025 and 2024, respectively, which includes contractually specified servicing fees and ancillary fees as a component of other noninterest income in the Company's Consolidated Statements of Income.

The Company recognized servicing fees of $ 1.6 million and $ 1.5 million during the three-month periods ending March 31, 2026 and 2025, respectively, which includes contractually specified servicing fees and ancillary fees as a component of other noninterest income in the Company's Consolidated Statements of Income.

The following table outlines the weighted average key assumptions used in measuring the fair value of MSRs and the sensitivity of the current fair value of MSRs to immediate adverse changes in those assumptions as of the dates indicated.

1 unchanged sentence

(In Thousands)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Fair value of MSRs

25 unchanged sentences

Commercial servicing rights

The commercial servicing rights asset (“CSR”) has a carrying value of $ 2.4 million at September 30, 2025 and $ 2.2 million at December 31, 2024, respectively, and is included in other assets and carried at fair value on the Company's Consolidated Balance Sheets .

Total commercial loans serviced for others were $ 302.6 million and $ 279.7 million at September 30, 2025 and December 31, 2024, respectively.

Key assumptions used in measuring the fair value of the CSR as of September 30, 2025 and December 31, 2024 include a constant prepayment rate of 11.38 % and a discount rate of 12.00 %.

The commercial servicing rights asset (“CSR”) has a carrying value of $ 2.4 million at March 31, 2026 and $ 2.3 million at December 31, 2025, respectively, and is included in other assets and carried at fair value on the Company's Consolidated Balance Sheets .

Total commercial loans serviced for others were $ 298.4 million and $ 296.2 million at March 31, 2026 and December 31, 2025, respectively.

Key assumptions used in measuring the fair value of the CSR as of March 31, 2026 and December 31, 2025 include a constant prepayment rate of 11.71 % and a discount rate of 12.00 %.

The Company's lease commitments consist primarily of agreements to lease land and office facilities that it occupies to operate several of its retail branch locations that are classified as operating leases and are recognized on the balance sheet as right-of-use (“ROU”) assets and lease liabilities.

As of September 30, 2025, the Company has operating lease ROU assets of $ 6.5 million and operating lease liabilities of $ 6.6 million.

As of March 31, 2026, the Company has operating lease ROU assets of $ 11.7 million and operating lease liabilities of $ 11.9 million.

As of December 31, 2025, the Company had operating lease ROU assets of $ 5.9 million and operating lease liabilities of $ 5.9 million.

The Company did not have any agreements that are classified as finance leases as of September 30, 2025 or December 31, 2024.

The Company did not have any agreements that are classified as finance leases as of March 31, 2026 or December 31, 2025.

The Company entered into a new seven year lease for the headquarters building for Residential Mortgage in the first quarter of 2026.

Upon commencement, the operating lease ROU assets increased $ 6.3 million and the operating lease liabilities increased $ 6.4 million.

The following table presents additional information about the Company's operating leases for the periods indicated:

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

Three Months Ended March 31,

(In Thousands) 2026 2025

Operating lease cost (1)

$ 795 $ 743 $ 2,264 $ 2,225

Short term lease cost (1)

7 unchanged sentences

(In Thousands) Operating Leases

2025 (Three months) $ 675

2026 (Nine months) $ 1,605

Thereafter 5,834

3 unchanged sentences

Derivatives swaps related to community banking activities:

I nterest rate swaps

The Company enters into commercial loan interest rate swap agreements with commercial banking customers which are offset with a corresponding swap agreement with a third party financial institution (“counterparty”).

2 unchanged sentences

Similarly, the Company could be required to settle its obligations under the agreement if specific regulatory events occur, such as if the Company were issued a prompt corrective action directive or a cease and desist order, or if certain regulatory ratios fall below specified levels.

The Company pledged $ 592,000 as of September 30, 2025 and $ 579,000 as of December 31, 2024, in available for sale securities to collateralize fair value shortfalls on interest rate swap agreements.

The Company had interest rate swaps related to commercial loans with an aggregate notional amount of $ 319.8 million and $ 309.0 million at September 30, 2025 and December 31, 2024, respectively.

At September 30, 2025, the notional amount of interest rate swaps is made up of 26 variable to fixed rate swaps to commercial loan customers totaling $ 159.9 million, and 26 fixed to variable rate swaps with a counterparty totaling $ 159.9 million.

Changes in fair value from these 26 interest rate swaps offset each other in the three-month periods ending September 30, 2025.

The Company recognized zero and $ 287,000 in fee income related to interest rate swaps in the three-month periods ending September 30, 2025 and 2024, respectively, and $ 129,000 and $ 361,000 in fee income related to interest rate swaps in the nine-month periods ending September 30, 2025 and 2024, respectively.

The Company pledged $ 598,000 as of March 31, 2026 and $ 596,000 as of December 31, 2025, in available for sale securities to collateralize fair value shortfalls on interest rate swap agreements.

At March 31, 2026, the notional amount of interest rate swaps is made up of 27 variable to fixed rate swaps to commercial loan customers totaling $ 178.0 million with a fair value of negative $ 8.1 million and 27 fixed to variable rate swaps with a counterparty totaling $ 178.0 million with a fair value of $ 8.1 million.

Changes in fair value from these 27 interest rate swaps offset each other in the three-month periods ending March 31, 2026.

The Company recognized zero and $ 129,000 in fee income related to interest rate swaps in the three-month periods ending March 31, 2026 and 2025, respectively.

Interest rate swap income is recorded in other operating income on the Consolidated Statements of Income .

None of these interest rate swaps are designated as hedging instruments.

The Company has an interest rate swap to hedge the variability in cash flows arising out of its junior subordinated debentures, which is floating rate debt, by swapping the cash flows with an interest rate swap which receives floating and pays fixed.

The Company has an interest rate swap to hedge the variability in cash flows arising out of a portion of its junior subordinated debentures, which is floating rate debt, by swapping the cash flows with an interest rate swap which receives floating and pays fixed.

The Company has designated this interest rate swap as a hedging instrument.

1 unchanged sentence

The floating rate that the dealer pays is equal to the three month CME SOFR plus tenor spread adjustment 0.26 % plus 1.37 %, which reprices quarterly on the payment date.

This rate was 5.67 % as of September 30, 2025.

The Company pledged $ 130,000 in cash to collateralize initial margin and fair value exposure of our counterparty on this interest rate swap as of September 30, 2025 and December 31, 2024.

This rate was 5.31 % as of March 31, 2026.

The Company pledged $ 130,000 in cash to collateralize initial margin and fair value exposure of our counterparty on this interest rate swap as of March 31, 2026 and December 31, 2025.

The fair value of this interest rate swap was $ 1.4 million as of both March 31, 2026 and December 31, 2025, which is included in other assets on the Consolidated Balance Sheet.

Changes in the fair value of this interest rate swap are reported in other comprehensive income on the Consolidated Statements of Income .

The unrealized gain, net of tax on this interest rate swap was $ 1.0 million as of September 30, 2025 and the unrealized gain, net of tax was $ 1.3 million as of December 31, 2024.

The unrealized gain, net of tax on this interest rate swap was $ 1.0 million as of March 31, 2026 and December 31, 2025.

Derivatives related to home mortgage banking activities:

Interest rate lock commitments and retail interest rate contracts

The Company also uses derivatives to hedge the risk of changes in the fair values of interest rate lock commitments.

3 unchanged sentences

Market risk with respect to commitments to originate loans arises from changes in the value of contractual positions due to changes in interest rates.

Residential Mortgage, LLC (“RML”) had commitments to originate mortgage loans held for sale totaling $ 74.0 million and $ 32.3 million at September 30, 2025 and December 31, 2024, respectively.

Residential Mortgage, LLC (“RML”) had commitments to originate mortgage loans held for sale totaling $ 85.8 million and $ 45.7 million at March 31, 2026 and December 31, 2025, respectively.

The fair value of these interest rate lock commitments was $ 1.6 million and $ 923,000 at March 31, 2026 and December 31, 2025, respectively.

Changes in the value of RML's interest rate derivatives are recorded in mortgage banking income on the Consolidated Statements of Income .

None of these derivatives are designated as hedging instruments.

The following table presents the fair value of derivatives not designated as hedging instruments at September 30, 2025 and December 31, 2024:

The following table presents the fair value of derivatives not designated as hedging instruments at March 31, 2026 and December 31, 2025:

(In Thousands) Asset Derivatives

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Balance Sheet Location Fair Value Fair Value

4 unchanged sentences

(In Thousands) Liability Derivatives

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Balance Sheet Location Fair Value Fair Value

3 unchanged sentences

The following table presents the net gains (losses) of derivatives not designated as hedging instruments for periods indicated below:

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

Three Months Ended March 31,

(In Thousands) Income Statement Location 2026 2025

5 unchanged sentences

We do not offset such financial instruments for financial reporting purposes.

The following table summarizes the derivatives that have a right of offset as of September 30, 2025 and December 31, 2024:

September 30, 2025 Gross amounts not offset in the Statement of Financial Position

The following table summarizes the derivatives that have a right of offset as of March 31, 2026 and December 31, 2025:

March 31, 2026 Gross amounts not offset in the Statement of Financial Position

(In Thousands) Gross amounts of recognized assets and liabilities Gross amounts offset in the Statement of Financial Position Net amounts of assets and liabilities presented in the Statement of Financial Position Financial Instruments Collateral Posted Net Amount

1 unchanged sentence

Interest rate swaps $ 8,057 $ — $ 8,057 $ — $ — $ 8,057

Retail interest rate contracts 58 — 58 — — 58

Liability Derivatives

Interest rate swaps $ 8,057 $ — $ 8,057 $ — $ 8,057 $ —

Retail interest rate contracts 44 — 44 — — 44

December 31, 2025 Gross amounts not offset in the Statement of Financial Position

2 unchanged sentences

Interest rate swaps $ 7,999 $ — $ 7,999 $ — $ — $ 7,999

Retail interest rate contracts 49 — 49 — — 49

Liability Derivatives

Interest rate swaps $ 7,999 $ — $ 7,999 $ — $ 7,999 $ —

Retail interest rate contracts 50 — 50 — — 50

Subordinated Debt

Junior Subordinated Debentures

In December of 2005, the Company formed a wholly-owned Connecticut statutory business trust subsidiary, Northrim Statutory Trust 2 (the “Trust 2”), which issued $ 10 million of guaranteed undivided beneficial interests in the Company’s Junior Subordinated Deferrable Interest Debentures (“Trust Preferred Securities 2”).

These debentures qualify as Tier 1 capital under Federal Reserve Board guidelines.

All of the common securities of Trust 2 are owned by the Company.

The proceeds from the issuance of the common securities and the Trust Preferred Securities 2 were used by Trust 2 to purchase $ 10.3 million of junior subordinated debentures of the Company.

Trust 2 is not consolidated in the Company’s financial statements in accordance with GAAP;

therefore, the Company has recorded its investment in Trust 2 as an other asset and the subordinated debentures as a liability.

The debentures, which represent the sole asset of Trust 2, accrue and pay distributions quarterly at a variable rate of 90-day CME SOFR plus tenor spread adjustment 0.26 % plus 1.37 % per annum, adjusted quarterly, of the stated liquidation value of $ 1,000 per capital security as of December 31, 2024.

The interest rate on these debentures was 5.31 % at March 31, 2026 compared to 5.35 % at December 31, 2025.

The interest cost to the Company on these debentures was $ 138,000 and $ 154,000 in the first quarters of 2026, and 2025, respectively.

The Company has entered into contractual arrangements which, taken collectively, fully and unconditionally guarantee payment of:

(i) accrued and unpaid distributions required to be paid on the Trust Preferred Securities 2;

(ii) the redemption price with respect to any Trust Preferred Securities 2 called for redemption by Trust 2;

and (iii) payments due upon a voluntary or involuntary dissolution, winding up or liquidation of Trust 2.

The Trust Preferred Securities 2 are mandatorily redeemable upon maturity of the debentures on March 15, 2036, or upon earlier redemption as provided in the indenture.

The Company has the right to redeem the debentures purchased by Trust 2 in whole or in part, on or after March 15, 2011.

As specified in the indenture, if the debentures are redeemed prior to maturity, the redemption price will be the principal amount and any accrued but unpaid interest.

Subordinated Debentures

In November of 2025, the Company issued and sold $ 60.0 million in aggregate principal amount of its 6.875 % Fixed-to-Floating Rate Subordinated Notes due 2035 (the “Subordinated Notes”).

The Subordinated Notes were issued by the Company to the Purchasers at a price equal to 100 % of their face amount.

The Subordinated Notes mature on December 1, 2035 and bear interest at a fixed rate of 6.875 % per year, from November 26, 2025 to, but excluding, December 1, 2030 or the date of earlier redemption, payable semi-annually in arrears.

From and including December 1, 2030 to, but excluding, the maturity date or earlier redemption date, the interest rate will reset quarterly at a variable rate equal to the then current three-month SOFR, plus 3.48 % per annum, payable quarterly in arrears.

As provided in the Subordinated Notes, the interest rate on the Subordinated Notes during the applicable floating rate period may be determined based on a rate other than three-month term SOFR.

The interest cost to the Company on these debentures was $ 1.0 million in the first quarter of 2026.

The Company incurred debt issuance costs of $ 1.4 million which will amortize through December 1, 2035.

The amortization expense amounted to $ 35,000 in the first quarter of 2026.

Prior to December 1, 2030, the Company may redeem the Subordinated Notes, in whole but not in part, only under certain limited circumstances set forth in the indenture governing the Subordinated Notes.

On or after December 1, 2030, the Company may redeem the Subordinated Notes, in whole or in part, at its option, on any interest payment date.

Any redemption by the Company would be at a redemption price equal to 100 % of the principal amount of the Subordinated Notes being redeemed, together with any accrued and unpaid interest on the Subordinated Notes being redeemed to, but excluding, the date of redemption.

The Subordinated Notes are not subject to redemption at the option of the holder.

Principal and interest on the Subordinated Notes are subject to acceleration only in limited circumstances in the case of certain bankruptcy and insolvency-related events with respect to the Company.

The Subordinated Notes are unsecured, subordinated obligations of the Company, are not obligations of, and are not guaranteed by, any subsidiary of the Company, and rank junior in right of payment to the Company’s current and future senior indebtedness.

The Subordinated Notes are intended to qualify as Tier 2 capital of the Company for regulatory capital purposes.

Fair Value Measurements

7 unchanged sentences

In order to determine the fair value of MSR and CSR, the present value of net expected future cash flows is estimated.

Assumptions used include market discount rates, anticipated prepayment speeds, escrow calculations, delinquency rates, and ancillary fee income net of servicing costs.

Derivative instruments:

Assumptions used include market discount rates,

Interest rate swaps:

The fair value of the interest rate swap agreements is determined using standard valuation models that calculate the present value of expected future cash flows.

These valuation models incorporate observable market inputs, including contractual terms, interest rate yield curves, forward interest rates, and credit risk adjustments.

The Company classifies its interest rate swaps within Level 2 of the fair value hierarchy.

Interest rate lock commitments:

The fair value of the interest rate lock commitments are estimated using quoted or published market prices for similar instruments, adjusted for factors such as pull-through rate assumptions based on historical information, where appropriate.

1 unchanged sentence

as such, the interest rate lock commitment derivatives are classified as Level 3.

Interest rate contracts are valued in a model, which uses as its basis a discounted cash flow technique incorporating credit valuation adjustments to reflect nonperformance risk in the measurement of fair value.

Although the Company has determined that the

majority of inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties.

However, as of September 30, 2025, the Company has assessed the significance of the impact of these adjustments on the overall valuation of its interest rate positions and has determined that they are not significant to the overall valuation of its interest rate derivatives.

As a result, the Company has classified its interest rate derivative valuations in Level 2 of the fair value hierarchy.

Retail interest rate contracts:

Retail interest rate contracts are valued in a model, which uses as its basis a discounted cash flow technique incorporating credit valuation adjustments to reflect nonperformance risk in the measurement of fair value.

Although the Company has determined that the majority of inputs used to value its retail interest rate contracts fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties.

However, as of March 31, 2026, the Company has assessed the significance of the impact of these adjustments on the overall valuation of its retail interest rate contracts and has determined that they are not significant to the overall valuation.

As a result, the Company has classified its retail interest rate contract valuations in Level 2 of the fair value hierarchy.

Commitments to extend credit and standby letters of credit :

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Changes in assumptions could significantly affect the estimates.

Estimated fair values as of the periods indicated are as follows:

September 30, 2025 December 31, 2024

Estimated fair values as of the periods indicated, whether or not recognized or recorded at fair value on a recurring basis in the Consolidated Balance Sheets, are as follows:

March 31, 2026 December 31, 2025

(In Thousands) Carrying Amount Fair Value Carrying Amount Fair Value

8 unchanged sentences

Interest rate swaps 8,057 8,057 7,999 7,999

Interest rate swap - junior subordinated debt

1,442 1,442 1,437 1,437

Retail interest rate contracts

Level 3 inputs:

7 unchanged sentences

Level 2 inputs:

Deposits $ 2,906,463 $ 2,908,470 $ 2,680,189 $ 2,683,029

Time deposits $ 391,050 $ 392,932 $ 402,759 $ 405,317

Borrowings 12,693 10,153 12,805 10,361

Interest rate swaps 8,057 8,057 7,999 7,999

Retail interest rate contracts

Level 3 inputs:

Junior subordinated debentures

10,310 10,720 10,310 10,950

Subordinated debentures

58,649 57,801 58,614 58,614

The following table sets forth the balances as of the periods indicated of assets and liabilities measured at fair value on a recurring basis:

(In Thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)

September 30, 2025

March 31, 2026

Available for sale securities

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Total marketable equity securities $ 10,145 $ 10,145 $ — $ —

Loans held for sale

$ 81,179 $ — $ 81,179 $ —

Interest rate swaps 9,499 — 9,499 —

2 unchanged sentences

Commercial servicing rights 2,359 — — 2,359

Retail interest rate contracts 58 — 58 —

Total other assets $ 123,101 $ — $ 90,736 $ 32,365

Interest rate swaps $ 8,057 $ — $ 8,057 $ —

Retail interest rate contracts 44 — 44 —

Total other liabilities $ 8,057 $ — $ 8,057 $ —

2 unchanged sentences

Treasury and government sponsored entities $ 388,737 $ 201,412 $ 187,325 $ —

Municipal securities — — — —

Agency mortgage-backed securities 4,798 — 4,798 —

Corporate bonds 4,952 4,952 — —

3 unchanged sentences

Total marketable securities $ 8,392 $ 8,392 $ — $ —

Loans held for sale

$ 100,323 $ — $ 100,323 $ —

Interest rate swaps 9,436 — 9,436 —

2 unchanged sentences

Commercial servicing rights 2,342 — — 2,342

Retail interest rate contracts 49 — 49 —

Total other assets $ 140,498 $ — $ 109,759 $ 30,739

Interest rate swaps $ 7,999 $ — $ 7,999 $ —

Retail interest rate contracts 50 — 50 —

Total other liabilities $ 8,049 $ — $ 8,049 $ —

The following tables provide a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine-month periods ended September 30, 2025 and 2024:

(In Thousands) Beginning balance Change included in earnings Purchases and issuances Sales and settlements Ending balance Net change in unrealized gains (losses) relating to items held at end of period

Three Months Ended September 30, 2025

Interest rate lock commitments $ 1,296 ($ 592 ) $ 4,880 ($ 4,053 ) $ 1,531 $ 1,531

Mortgage servicing rights 27,506 ( 1,250 ) 1,540 — 27,796 —

Commercial servicing rights 2,400 ( 64 ) 38 — 2,374 —

Total $ 31,202 ($ 1,906 ) $ 6,458 ($ 4,053 ) $ 31,701 $ 1,531

Three Months Ended September 30, 2024

Interest rate lock commitments $ 1,059 ($ 647 ) $ 5,173 ($ 4,258 ) $ 1,327 $ 1,327

Mortgage servicing rights 21,077 ( 968 ) 1,461 — 21,570 —

Commercial servicing rights 2,116 ( 10 ) 30 — 2,136 —

Total $ 24,252 ($ 1,625 ) $ 6,664 ($ 4,258 ) $ 25,033 $ 1,327

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Interest rate lock commitments $ 923 ($ 529 ) $ 4,255 ($ 3,069 ) $ 1,580 $ 1,580

2 unchanged sentences

Total $ 30,739 ($ 658 ) $ 5,353 ($ 3,069 ) $ 32,365 $ 1,580

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Interest rate lock commitments $ 465 ($ 226 ) $ 1,996 ($ 846 ) $ 1,389 $ 1,389

2 unchanged sentences

Total $ 29,098 ($ 1,154 ) $ 3,422 ($ 846 ) $ 30,520 $ 1,389

There were no changes in unrealized gains and losses for the three and nine-month periods ending September 30, 2025 and 2024 included in other comprehensive income for recurring Level 3 fair value measurements.

As of and for the periods ending September 30, 2025 and December 31, 2024, except for certain assets as shown in the following table, no impairment or valuation adjustment was recognized for assets recognized at fair value on a nonrecurring basis.

There were no changes in unrealized gains and losses for the three-month periods ending March 31, 2026 and 2025 included in other comprehensive income for recurring Level 3 fair value measurements and there were no transfers between levels during the three-month periods ending March 31, 2026 and 2025.

As of and for the periods ending March 31, 2026 and December 31, 2025, except for certain assets as shown in the following table, no impairment or valuation adjustment was recognized for assets recognized at fair value on a nonrecurring basis.

For loans individually measured for credit losses, the Company classifies fair value measurements using observable inputs, such as external appraisals, as Level 2 valuations in the fair value hierarchy, and unobservable inputs, such as in-house evaluations, as Level 3 valuations in the fair value hierarchy.

(In Thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)

September 30, 2025

March 31, 2026

Loans individually measured for credit losses $ 4,226 $ — $ — $ 4,226

3 unchanged sentences

Total $ 2,729 $ — $ — $ 2,729

The following table presents the (gains) losses resulting from nonrecurring fair value adjustments for the three and nine-month periods ended September 30, 2025 and 2024:

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

The following table presents the (gains) losses resulting from nonrecurring fair value adjustments for the three-month periods ended March 31, 2026 and 2025:

Three Months Ended March 31, Three Months Ended March 31,

(In Thousands) 2026 2025 2026 2025

Loans individually measured for credit losses $ 783 $ — $ 783 $ —

Other real estate owned — — — —

Total loss from nonrecurring measurements $ 783 $ — $ 783 $ —

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

The following tables provide a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at September 30, 2025 and December 31, 2024:

Financial Instrument Valuation Technique - Recurring Basis

Unobservable Input Weighted Average Rate Range

September 30, 2025

Loans individually measured for credit losses Discounted cash flow Discount rate 0.43 %

March 31, 2026

Interest rate lock commitment External pricing model Pull through rate 92.1 %

9 unchanged sentences

Discount rate 12.00 %

Financial Instrument Valuation Technique - Nonrecurring Basis Unobservable Input Weighted Average Rate Range

March 31, 2026

Loans individually measured for credit losses Discounted cash flow Discount rate 10.00 % - 100.00 %

December 31, 2025

Loans individually measured for credit losses Discounted cash flow Discount rate 10.00 %

Segment Information

1 unchanged sentence

Community Banking, Home Mortgage Lending, and Specialty Finance.

The Company reevaluated our reportable operating segments in the fourth quarter of 2024 concurrent with the acquisition of SCF, which resulted in the addition of the Specialty Finance segment.

The Company reevaluated our reportable operating segments in the fourth quarter of 2024 concurrent with the acquisition of Sallyport Commercial Finance, LLC (“SCF”), which resulted in the addition of the Specialty Finance segment.

The Community Banking segment's principal business focus is the offering of loan and deposit products to business and consumer customers in its primary market areas.

As of September 30, 2025, the Community Banking segment operated 20 branches throughout Alaska.

As of March 31, 2026, the Community Banking segment operated 20 branches throughout Alaska.

The Home Mortgage Lending segment's principal business focus is the origination and sale of mortgage loans for 1-4 family residential properties, mortgage loan servicing for a portion of mortgage loans sold, and investment in certain 1-4 family residential mortgage loans on our balance sheet.

11 unchanged sentences

Summarized financial information for the Company's reportable segments and the reconciliation to the consolidated financial results for the periods presented is shown in the following tables:

Three Months Ended September 30, 2025

Three Months Ended March 31, 2026

(In Thousands) Community Banking Home Mortgage Lending Specialty Finance Consolidated

30 unchanged sentences

Net income $ 10,500 $ 1,086 $ 2,089 $ 13,675

Three Months Ended September 30, 2025

Three Months Ended March 31, 2026

(In Thousands) Community Banking Home Mortgage Lending Specialty Finance Consolidated

48 unchanged sentences

miscellaneous operating costs related to specialty finance activities.

Three Months Ended September 30, 2024

(In Thousands) Community Banking Home Mortgage Lending Specialty Finance Consolidated

Interest income $ 34,862 $ 4,396 $ 158 $ 39,416

Interest expense 8,934 1,455 185 10,574

Net interest income 25,928 2,941 ( 27 ) 28,842

Provision (benefit) for credit losses

1,492 571 — 2,063

Net interest income after provision for credit losses 24,436 2,370 ( 27 ) 26,779

Net realized gains on mortgage loans sold — 5,079 — 5,079

Change in fair value of mortgage loan commitments, net — 60 — 60

Total production revenue — 5,139 — 5,139

Mortgage servicing revenue — 2,583 — 2,583

Change in fair value of mortgage servicing rights:

Due to changes in model inputs of assumptions — ( 566 ) — ( 566 )

Other — ( 402 ) — ( 402 )

Total mortgage servicing revenue, net — 1,615 — 1,615

Other mortgage banking revenue — 293 — 293

Total mortgage banking revenue — 7,047 — 7,047

Purchased receivable income — — 1,033 1,033

Other operating income 3,507 — — 3,507

Total other operating income 3,507 7,047 1,033 11,587

Salaries and other personnel expense 11,422 5,858 269 17,549

Data processing expense 2,342 273 3 2,618

Occupancy expense 1,380 500 31 1,911

Professional and outside services 657 224 22 903

Marketing expense 738 122 — 860

Insurance expense 573 23 — 596

Other operating expense 1,611 643 37 2,291

Total other operating expense 18,723 7,643 362 26,728

Income before provision for income taxes 9,220 1,774 644 11,638

Provision (benefit) for income taxes 2,133 497 183 2,813

Net income $ 7,087 $ 1,277 $ 461 $ 8,825

Three Months Ended September 30, 2024

(In Thousands) Community Banking Home Mortgage Lending Specialty Finance Consolidated

Interest income

$ 34,862 $ 4,396 $ 158 $ 39,416

Mortgage banking income - external revenue

— 7,047 — 7,047

Mortgage banking income - intersegment revenues

— 1,275 — 1,275

Purchased receivable income

— — 1,033 1,033

Other operating income

3,507 — — 3,507

38,369 12,718 1,191 52,278

Reconciliation of revenue

Elimination of intersegment revenues

— ( 1,275 ) — ( 1,275 )

Total consolidated revenues

$ 38,369 $ 11,443 $ 1,191 $ 51,003

Interest expense

8,934 1,455 185 10,574

Provision (benefit) for credit losses

1,492 571 — 2,063

Segment gross profit

27,943 9,417 1,006 38,366

Salaries and other personnel expense $ 11,422 $ 5,858 $ 269 $ 17,549

Data processing expense 2,342 273 3 2,618

Occupancy expense 1,380 500 31 1,911

Professional and outside services 657 224 22 903

Marketing expense 738 122 — 860

Insurance expense 573 23 — 596

Intersegment expense

1,275 — — 1,275

Other segment items (2)

1,611 643 37 2,291

Segment expense

19,998 7,643 362 28,003

Reconciliation of expense

Elimination of intersegment expense

($ 1,275 ) $ — $ — ( 1,275 )

Total consolidated expense

$ 18,723 $ 7,643 $ 362 $ 26,728

Income before provision for income taxes

$ 9,220 $ 1,774 $ 644 $ 11,638

1 The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.

All expenses are allocated to a segment.

2 Other segment items for each reportable segment include:

Community Banking:

OREO (income) expense, net of rental income and gains on sale, director fees, operational charge offs net of recoveries, loan collection and collateral costs, and other miscellaneous operating costs related to community banking activities.

Home Mortgage Lending:

OREO (income) expense, net of rental income and gains on sale related home mortgage loans, director fees related at RML, loan collection and collateral costs related to home mortgage loans, and other miscellaneous operating costs related to home mortgage lending activities.

Specialty Finance:

miscellaneous operating costs related to specialty finance activities.

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2025

(In Thousands) Community Banking Home Mortgage Lending Specialty Finance Consolidated

28 unchanged sentences

Income before provision for income taxes 14,041 1,114 2,420 17,575

Provision for income taxes 11,300 1,762 2,683 15,745

Provision (benefit) for income taxes 3,253 310 688 4,251

Net income $ 10,788 $ 804 $ 1,732 $ 13,324

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2025

(In Thousands) Community Banking Home Mortgage Lending Specialty Finance Consolidated

4 unchanged sentences

Mortgage banking income - intersegment revenues

— 1,883 — 1,883

Purchased receivable income

21 unchanged sentences

Compensation expense - Sallyport acquisition payments

— — 1,800 1,800

Intersegment expense

1,883 — — 1,883

Other segment items (2)

18 unchanged sentences

miscellaneous operating costs related to specialty finance activities.

Nine Months Ended September 30, 2024

(In Thousands) Community Banking Home Mortgage Lending Specialty Finance Consolidated

Interest income $ 99,895 $ 11,697 $ 541 $ 112,133

Interest expense 25,434 3,749 608 29,791

Net interest income 74,461 7,948 ( 67 ) 82,342

Provision (benefit) for credit losses

1,505 587 — 2,092

Net interest income after provision for credit losses 72,956 7,361 ( 67 ) 80,250

Net realized gains on mortgage loans sold — 10,247 — 10,247

Change in fair value of mortgage loan commitments, net — 837 — 837

Total production revenue — 11,084 — 11,084

Mortgage servicing revenue — 6,308 — 6,308

Change in fair value of mortgage servicing rights:

Due to changes in model inputs of assumptions — ( 38 ) — ( 38 )

Other — ( 1,036 ) — ( 1,036 )

Total mortgage servicing revenue, net — 5,234 — 5,234

Other mortgage banking revenue — 644 — 644

Total mortgage banking revenue — 16,962 — 16,962

Purchased receivable income — — 3,620 3,620

Other operating income 8,426 — — 8,426

Total other operating income 8,426 16,962 3,620 29,008

Salaries and other personnel expense 33,259 15,501 833 49,593

Data processing expense 7,135 721 22 7,878

Occupancy expense 4,176 1,447 93 5,716

Professional and outside services 1,715 608 61 2,384

Marketing expense 1,689 368 6 2,063

Insurance expense 1,986 81 — 2,067

Other operating expense 4,010 1,700 149 5,859

Total other operating expense 53,970 20,426 1,164 75,560

Income before provision for income taxes 27,412 3,897 2,389 33,698

Provision for income taxes 5,885 1,092 677 7,654

Net income $ 21,527 $ 2,805 $ 1,712 $ 26,044

Nine Months Ended September 30, 2024

(In Thousands) Community Banking Home Mortgage Lending Specialty Finance Consolidated

Interest income

$ 99,895 $ 11,697 $ 541 $ 112,133

Mortgage banking income - external revenue

— 16,962 — 16,962

Mortgage banking income - intersegment revenues

— 2,805 — 2,805

Purchased receivable income

— — 3,620 3,620

Other operating income

8,426 — — 8,426

108,321 31,464 4,161 143,946

Reconciliation of revenue

Elimination of intersegment revenues

— ( 2,805 ) — ( 2,805 )

Total consolidated revenues

$ 108,321 $ 28,659 $ 4,161 $ 141,141

Interest expense

25,434 3,749 608 29,791

Provision (benefit) for credit losses

1,505 587 — 2,092

Segment gross profit

81,382 24,323 3,553 109,258

Salaries and other personnel expense $ 33,259 $ 15,501 $ 833 $ 49,593

Data processing expense 7,135 721 22 7,878

Occupancy expense 4,176 1,447 93 5,716

Professional and outside services 1,715 608 61 2,384

Marketing expense 1,689 368 6 2,063

Insurance expense 1,986 81 — 2,067

Intersegment expense

2,805 — — 2,805

Other segment items (2)

4,010 1,700 149 5,859

Segment expense

56,775 20,426 1,164 78,365

Reconciliation of expense

Elimination of intersegment expense

($ 2,805 ) $ — $ — ( 2,805 )

Total consolidated expense

$ 53,970 $ 20,426 $ 1,164 $ 75,560

Income before provision for income taxes

$ 27,412 $ 3,897 $ 2,389 $ 33,698

1 The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.

All expenses are allocated to a segment.

2 Other segment items for each reportable segment include:

Community Banking:

Home Mortgage Lending:

Specialty Finance:

miscellaneous operating costs related to specialty finance activities.

September 30, 2025

March 31, 2026

(In Thousands) Community Banking Home Mortgage Lending Specialty Finance Consolidated

1 unchanged sentence

Loans held for sale $ — $ 81,179 $ — $ 81,179

1-4 family residential properties secured by first liens $ — $ 216,598 $ — $ 216,598

$ 2,081,912 $ 264,662 $ 12,128 $ 2,358,702

Purchased receivables, net $ — $ — $ 105,029 $ 105,029

4 unchanged sentences

Loans held for sale $ — $ 100,323 $ — $ 100,323

1-4 family residential properties secured by first liens $ — $ 270,966 $ — $ 270,966

$ 2,034,834 $ 243,167 $ 17,498 $ 2,295,499

Purchased receivables, net $ — $ — $ 101,642 $ 101,642

1 unchanged sentence

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