SHORE BANCSHARES INC 10-Q

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Unless the context clearly suggests otherwise, references to “the Company,” “we,” “our” and “us” in the remainder of this Quarterly Report on Form 10-Q are to Shore Bancshares, Inc. and its consolidated subsidiaries. FORWARD-LOOKING INFORMATION This Quarterly Report on Form 10-Q contains forward-looking statements. The statements contained herein that are not historical facts are forward-looking statements (as defined by the Private Securities Litigation Reform Act of 1995) based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. These statements are evidenced by terms such as “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” and similar expressions, or future or conditional verbs such as “should,” “could,” or “may.” Although forward-looking statements reflect management’s good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. These forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: • the strength of the United States (“U.S.”) economy and general economic conditions, (including the interest rate environment, government economic and monetary policies, the strength of global financial markets and inflation/deflation and supply chain issues), whether national or regional, and conditions in the lending markets in which we participate that may have an adverse effect on the demand for our loans and other products, our credit quality and related levels of nonperforming assets and loan losses, and the value and salability of the real estate that we own or that is the collateral for our loans; • the ability to effectively manage the information technology systems, including third-party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches, and risk related to the development and use of artificial intelligence; • the ability to develop and use technologies to provide products and services that will satisfy customer demands; • results of examinations of us by our regulators, including the possibility that our regulators may, among other things, require us to increase our reserve for loan losses or to write-down assets; • changing bank regulatory conditions, policies or programs, whether arising as new legislation or regulatory initiatives, which could lead to restrictions on activities of banks generally, or our subsidiary bank in particular, more restrictive regulatory capital requirements, increased costs, including deposit insurance premiums, regulation or prohibition of certain income producing activities or changes in the secondary market for loans and other products; • changes in market rates and prices may adversely impact the value of securities, loans, deposits and other financial instruments and the interest rate sensitivity of our balance sheet; • our liquidity requirements could be adversely affected by changes in our assets and liabilities; • our ability to prudently manage our growth and execute our strategy; • impairment of our goodwill and intangible assets; • competitive factors among financial services organizations, including product and pricing pressures and our ability to attract, develop and retain qualified banking professionals; • the effect of acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations; • the growth and profitability of noninterest or fee income being less than expected; • the effect of legislative or regulatory developments, including changes in laws concerning taxes, banking, securities, insurance and other aspects of the financial services industry; • the effect of any change in federal government enforcement of federal laws affecting the cannabis industry; • the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board, the U.S. Securities and Exchange Commission (the “SEC”), the Public Company Accounting Oversight Board and other regulatory agencies; 39 Table of Contents • changes in U.S. trade policies, including the implementation of tariffs and other protectionist trade policies; • the impact of governmental efforts to restructure or adjust the U.S. financial regulatory system; • the impact of recent or future changes in Federal Deposit Insurance Corporation (the “FDIC”) insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount, including any special assessments; • the effects of federal government shutdowns, debt ceiling standoff, or other uncertainty regarding fiscal and governmental policies of the U.S. federal government; • climate change and other catastrophic events or disasters; • geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts of terrorism, and/or military conflicts, which could impact business and economic conditions in the United States and abroad; • and other factors that may affect our future results. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”) filed with SEC and available at the SEC’s website (www.sec.gov). The Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments. INTRODUCTION The following management’s discussion and analysis of financial condition and results of operations is intended as a review of significant factors affecting the Company’s financial condition and results of operations for the periods indicated. This discussion and analysis should be read in conjunction with the unaudited consolidated financial statements and related notes presented elsewhere in this report, as well as the audited consolidated financial statements and related notes included in the 2024 Annual Report. Shore Bancshares, Inc. is headquartered on the Eastern Shore of Maryland. It is the parent company of Shore United Bank, N.A. (the “Bank”). The Bank currently operates 40 full-service branches in Maryland, Delaware and Virginia. The Company, through Wye Financial Partners, a division of the Bank, offers full-service investment, insurance and financial planning services through our broker/dealer, LPL Financial. The Company, through Wye Trust, a division of the Bank, offers wealth management, corporate trustee services and trust administration to customers within our market areas and nationwide. The Company offered title services through its wholly-owned subsidiary, Mid-Maryland Title Company, Inc. (the “Title Company”), which engaged in residential and commercial real estate settlement activities and offered title insurance policies, title search and lien satisfaction services. The Title Company ceased conducting real estate closings effective March 31, 2025. The shares of common stock of Shore Bancshares, Inc. are listed on the NASDAQ Global Select Market under the symbol “SHBI.” Shore Bancshares, Inc. maintains an Internet site at www.shorebancshares.com on which it makes available free of charge its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments to the foregoing as soon as reasonably practicable after these reports are electronically filed with, or furnished to, the SEC. 40 Table of Contents CRITICAL ACCOUNTING POLICIES The Company’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and follow general practices within the industries in which it operates. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements could reflect different estimates, assumptions, and judgments. Certain policies inherently have a greater reliance on the use of estimates, assumptions, and judgments and as such have a greater possibility of producing results that could be materially different than originally reported. The Company’s most significant accounting policies are presented in Note 1 – “Summary of Significant Accounting Policies” in the “Notes to Consolidated Financial Statements” included in Part II, Item 8. of the 2024 Annual Report. These policies, along with the disclosures presented in the notes to consolidated financial statements and in this management’s discussion and analysis of financial condition and results of operations, provide information on how significant assets and liabilities are valued in the financial statements and how those values are determined. Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions, and estimates underlying those amounts, management has determined that the accounting policy for the allowance for credit losses (“ACL”) on loans is a critical accounting policy. This policy is considered critical because it relates to an accounting area that requires the most subjective or complex judgments, and, as such, could be most subject to revision as new information becomes available. Allowance for Credit Losses on Loans The ACL represents management’s best estimate of expected lifetime credit losses within the Company’s loan portfolio as of the balance sheet date. The ACL is established through a provision for credit losses and is increased by recoveries of loans previously charged off. Loan losses are charged against the allowance when management’s assessments confirm that the Company will not collect the full amortized cost basis of a loan. The calculation of expected credit losses is determined using a cash flow methodology, and includes considerations of historical experience, current conditions, and reasonable and supportable economic forecasts that may affect collection of the recorded balances. The Company assesses an ACL to groups of loans which share similar risk characteristics or on an individual basis, as deemed appropriate. Changes in the ACL on loans and the related provision for credit losses can materially affect financial results. Although the overall balance is determined based on specific portfolio segments and individually assessed assets, the entire balance is available to absorb credit losses for loans in the portfolio. The determination of the appropriate level of the ACL on loans inherently involves a high degree of subjectivity and requires the Company to make significant judgments concerning credit risks and trends using quantitative and qualitative information, as well as reasonable and supportable forecasts of future economic conditions, all of which may undergo frequent and significant changes. Changes in conditions, including unforeseen events, changes in asset-specific risk characteristics, and other economic factors, both within and outside the Company’s control, may indicate the need for an increase or decrease in the ACL on loans. While management makes every effort to utilize the best information available in making its assessment of the ACL estimate, the estimation process is inherently challenging as potential changes in any one factor or input may occur at different rates and/or impact pools of loans in different ways. Further, changes in factors and inputs may also be directionally inconsistent, such that improvement in one factor may offset deterioration in others. The Company’s management reviews the adequacy of the ACL on loans on at least a quarterly basis. Refer to Note 1 – “Summary of Significant Accounting Policies” in the “Notes to Consolidated Financial Statements” included in Part II, Item 8. of the 2024 Annual Report for additional details concerning the determination of the ACL on loans. 41 Table of Contents OVERVIEW The Company’s net income for the third quarter of 2025 was $14.3 million, or $0.43 per diluted common share, compared to $15.5 million, or $0.46 per diluted common share, for the second quarter of 2025. The Company had net income of $11.2 million, or $0.34 per diluted common share, for the third quarter of 2024. Third Quarter 2025 Highlights • Return on Average Assets (“ROAA”) – The Company reported ROAA of 0.95% for the third quarter of 2025, compared to 1.03% for the second quarter of 2025 and 0.77% for the third quarter of 2024. Non-U.S. generally accepted accounting principles (“GAAP”) ROAA (1) was 1.05% for the third quarter of 2025, compared to 1.15% for the second quarter of 2025 and 0.90% for the third quarter of 2024. • Net Income – Net income for the third quarter of 2025 decreased $1.2 million to $14.3 million from $15.5 million in the second quarter of 2025. Net income decreased primarily due to lower noninterest income of $1.6 million driven by reduced mortgage banking activity and a higher provision for loan losses of $1.5 million due to a large marine loan write-off, partially offset by an increase in net interest income of $1.4 million. Net income for the nine months ended September 30, 2025 was $43.6 million, compared to $30.6 million for the nine months ended September 30, 2024. The increase was primarily driven by an increase in net interest income due to loans repricing favorably coupled with a lower cost of deposits during the period. • Net Interest Margin (“NIM”) – Net interest income for the third quarter of 2025 increased $1.4 million to $48.7 million from $47.3 million for the second quarter of 2025. NIM increased 7 basis points (“bps”) to 3.42% during the third quarter of 2025 from 3.35% in the second quarter of 2025. NIM excluding accretion (1) increased for the comparable periods from 3.10% to 3.22%. Excluding accretion interest, loan yields increased 6 bps and funding costs decreased 6 bps for the comparable periods. Net interest income increased due to modest loan growth coupled with a lower cost of deposits. These favorable changes were partially offset by a lower yield on investments and lower average deposits with other institutions. • Book Value per Share – Book value per share increased to $17.27 at September 30, 2025 from $16.94 at June 30, 2025 and $16.00 at September 30, 2024. • Asset Quality – Nonperforming assets to total assets were 0.45% at September 30, 2025, an increase from 0.33% at June 30, 2025 and 0.27% at September 30, 2024. Classified assets to total assets were 0.83% at September 30, 2025, an increase when compared to 0.37% at June 30, 2025 and 0.39% at September 30, 2024. The allowance for credit losses (“ACL”) was $59.6 million at September 30, 2025, compared to $57.9 million at December 31, 2024 and $58.7 million at September 30, 2024. The ACL as a percentage of loans increased to 1.22% at September 30, 2025 compared to 1.21% at December 31, 2024, and decreased compared to 1.24% at September 30, 2024. • Operating Leverage – The efficiency ratio for the third quarter of 2025 was 61.00% compared to 60.83% in the second quarter of 2025 and 67.49% for the third quarter of 2024. The non-GAAP efficiency ratio (1) , which excludes amortization, was 57.30% for the third quarter of 2025, compared to 56.73% for the second quarter of 2025 and 62.10% for the third quarter of 2024. Management anticipates ongoing expense management of professional services and technology investments will result in continued improvements in operating leverage over time. ____________________________________ (1) See the Reconciliation of GAAP and non-GAAP Measures tables. 42 Table of Contents SUMMARY OF OPERATING RESULTS A comparison of the results of operations for the three and nine months ended September 30, 2025 and 2024 is presented below. Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2025 2024 2025 2024 OPERATING DATA Total interest income $ 77,187 $ 74,689 $ 229,871 $ 218,934 Total interest expense 28,532 31,426 87,935 92,396 Net interest income 48,655 43,263 141,936 126,538 Provision for credit losses 2,992 1,470 5,548 3,958 NII after provision for credit losses 45,663 41,793 136,388 122,580 Total noninterest income 7,701 7,287 24,021 22,294 Total noninterest expense 34,379 34,114 102,536 104,311 Income before income taxes 18,985 14,966 57,873 40,563 Income tax expense 4,637 3,777 14,254 9,956 Net income $ 14,348 $ 11,189 $ 43,619 $ 30,607 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 KEY OPERATING RATIOS ROAA – GAAP 0.95 % 0.77 % 0.96 % 0.70 % Adjusted ROAA – non-GAAP (1) 1.05 0.90 1.07 0.91 Return on average common equity (“ROACE”) – GAAP 9.96 8.41 10.43 7.84 Return on average tangible common equity (“ROATCE”) – non-GAAP (2) 11.98 10.50 12.65 9.88 Average total equity to average total assets 9.49 9.11 9.23 8.98 2.46 2.06 2.38 2.18 Interest rate spread 3.42 3.17 3.34 3.12 Efficiency ratio – GAAP (3) 61.00 67.49 61.78 70.09 Efficiency ratio – non-GAAP (4) 57.30 62.10 57.73 61.83 Noninterest income to average assets 0.51 0.50 0.53 0.51 Noninterest expense to average assets 2.27 2.34 2.26 2.40 Net operating expense to average assets – GAAP (5) 1.76 1.84 1.73 1.89 COMMON SHARE DATA Basic net income per common share $ 0.43 $ 0.34 $ 1.31 $ 0.92 Diluted net income per common share $ 0.43 $ 0.34 $ 1.31 $ 0.92 Cash dividends paid per common share $ 0.12 $ 0.12 $ 0.36 $ 0.36 Common dividend payout ratio 27.91 % 35.29 % 27.48 % 39.13 % ____________________________________ (1) ROAA – non-GAAP is computed by dividing i) net income excluding net of tax adjustments for the amortization of other intangible assets, credit card fraud losses and the sale and fair value of held for sale assets by ii) average assets. (2) ROATCE is computed by dividing net earnings applicable to common stockholders by average tangible common equity. ROATCE is a non-GAAP measure and may not be comparable to similar non-GAAP measures used by other companies. Refer to Use of Non-GAAP Financial Measures for additional details. (3) Efficiency ratio – GAAP is computed by dividing i) noninterest expense by ii) the sum of net interest income and noninterest income. (4) Efficiency ratio – non-GAAP is computed by dividing i) noninterest expense less amortization of other intangible assets and credit card fraud losses by ii) the sum of taxable-equivalent net interest income and noninterest income less the sale and the fair value of held for sale assets. (5) Net operating expense is the sum of noninterest expense offset by noninterest income. 43 Table of Contents RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 Summary of Financial Results The Company reported net income for the three months ended September 30, 2025 of $14.3 million, or $0.43 diluted earnings per common share, compared to $11.2 million, or diluted earnings per common share of $0.34, for the three months ended September 30, 2024. The following table presents selected consolidated statement of operations data for each of the periods indicated. Three Months Ended September 30, ($ in thousands) 2025 2024 $ Change % Change Interest and dividend income $ 77,187 $ 74,689 $ 2,498 3.3 % Interest expense 28,532 31,426 (2,894) (9.2) Net interest income 48,655 43,263 5,392 12.5 Provision for credit losses 2,992 1,470 1,522 103.5 Noninterest income 7,701 7,287 414 5.7 Noninterest expense 34,379 34,114 265 0.8 Income before income taxes 18,985 14,966 4,019 26.9 Income tax expense 4,637 3,777 860 22.8 Net income $ 14,348 $ 11,189 $ 3,159 28.2 Net Interest Income Tax-equivalent NII is NII adjusted for the tax-favored status of income from certain loans and investments. As shown in the table below, tax-equivalent NII was $48.7 million for the third quarter of 2025 and $43.3 million for the third quarter of 2024. The increase was primarily due to increases in interest and fees on loans of $1.8 million and interest on deposits at other banks of $651 thousand, coupled with a decrease in interest expense on deposits of $2.4 million and borrowings of $512 thousand. Three Months Ended September 30, ($ in thousands) 2025 2024 $ Change % Change Interest and dividend income Loans, including fees $ 70,930 $ 69,157 $ 1,773 2.6 % Interest and dividends on investment securities 5,042 4,968 74 1.5 Interest on deposits with banks 1,215 564 651 115.4 Total interest and dividend income $ 77,187 $ 74,689 $ 2,498 3.3 Interest expense Deposits $ 26,474 $ 28,856 $ (2,382) (8.3) % Short-term borrowings 640 491 149 30.3 Long-term borrowings 1,418 2,079 (661) (31.8) Total interest expense $ 28,532 $ 31,426 $ (2,894) (9.2) Taxable-equivalent adjustment $ 83 $ 82 $ 1 1.2 % Tax-equivalent net interest income $ 48,738 $ 43,345 $ 5,393 12.4 % 44 Table of Contents Average Balances and Yields The following table presents the distribution of the average consolidated balance sheets, interest income, interest expense and annualized yields earned and rates paid for the three months ended September 30, 2025 and 2024. Three Months Ended September 30, 2025 2024 ($ in thousands) Average Balance Interest Yield/Rate Average Balance Interest Yield/Rate Earning assets Loans (1), (2), (3) Commercial real estate $ 2,615,409 $ 38,077 5.78 % $ 2,522,170 $ 36,376 5.74 % Residential real estate 1,407,076 19,711 5.56 1,332,891 19,315 5.76 Construction 347,574 5,848 6.68 336,209 5,307 6.28 Commercial 219,002 3,380 6.12 212,611 3,763 7.04 Consumer 289,729 3,877 5.31 322,988 4,306 5.30 Credit cards 5,213 118 8.98 7,132 170 9.48 Total loans 4,884,003 71,011 5.77 4,734,001 69,237 5.82 Investment securities Taxable 663,884 5,036 3.03 655,718 4,962 3.03 Tax-exempt (1) 651 8 4.92 657 8 4.87 Interest-bearing deposits 110,443 1,215 4.36 44,935 564 4.99 Total earning assets 5,658,981 $ 77,270 5.42 5,435,311 $ 74,771 5.47 Cash and due from banks 49,405 46,996 Other assets 370,952 386,700 Allowance for credit losses (58,764) (58,515) Total assets $ 6,020,574 $ 5,810,492 Interest-bearing liabilities Interest-bearing checking $ 689,906 $ 5,157 2.97 % $ 581,517 $ 5,472 3.74 % Money market and savings deposits 1,714,161 9,277 2.15 1,670,210 10,420 2.48 Time deposits 1,277,403 11,935 3.71 1,229,273 12,742 4.12 Brokered deposits 10,891 105 3.82 25,829 222 3.42 Interest-bearing deposits (4) 3,692,361 26,474 2.84 3,506,829 28,856 3.27 FHLB advances 52,391 640 4.85 83,500 1,116 5.32 Subordinated debt and Guaranteed preferred beneficial interest in junior subordinated debentures (“TRUPS”) (4) 74,363 1,418 7.57 72,946 1,454 7.93 Total interest-bearing liabilities 3,819,115 28,532 2.96 3,663,275 31,426 3.41 Noninterest-bearing deposits 1,587,891 1,579,519 Accrued expenses and other liabilities 42,321 38,543 Stockholders’ equity 571,247 529,155 Total liabilities and stockholders’ equity $ 6,020,574 $ 5,810,492 Net interest income $ 48,738 $ 43,345 Net interest spread 2.46 % 2.06 % Net interest margin 3.42 3.17 Net interest margin excluding accretion (3) 3.22 2.84 Cost of funds 2.09 2.38 Cost of deposits 1.99 2.26 Cost of debt 6.44 6.54 ____________________________________ (1) All amounts are reported on a tax-equivalent basis computed using the statutory federal income tax rate of 21.0%, exclusive of nondeductible interest expense. (2) Average loan balances include nonaccrual loans. (3) Interest income on loans includes accreted loan fees, net of costs and accretion of discounts on acquired loans, which are included in the yield calculations. There were $3.3 million and $5.0 million of accretion interest on loans for the three months ended September 30, 2025 and 2024, respectively. (4) Interest expense on deposits and borrowings includes amortization of deposit discounts and amortization of borrowing fair value adjustments. There were $280 thousand and $287 thousand of amortization of deposit discounts and $232 thousand and $232 thousand of amortization of borrowing fair value adjustments for the three months ended September 30, 2025 and 2024, respectively. 45 Table of Contents Rate and Volume Analysis The following table presents changes in interest income and interest expense for the periods indicated. For each category of interest-earning asset and interest-bearing liability, information is provided on changes attributable to (1) changes in volume (changes in volume multiplied by old rate); and (2) changes in rate (changes in rate multiplied by old volume). Changes in rate-volume (changes in rate multiplied by the change in volume) have been allocated to changes due to volume. Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024 ($ in thousands) Volume Due to Rate Total Interest income from earning assets: Loans Commercial real estate $ 1,447 $ 254 $ 1,701 Residential real estate 1,068 (672) 396 Construction 202 339 541 Commercial 110 (493) (383) Consumer (437) 8 (429) Credit cards (43) (9) (52) Taxable investment securities 671 (597) 74 Interest-bearing deposits 651 — 651 Total interest income $ 3,669 $ (1,170) $ 2,499 Interest-bearing liabilities: Interest-bearing checking deposits $ 814 $ (1,129) $ (315) Money market and savings deposits 246 (1,389) (1,143) Time deposits 463 (1,270) (807) Brokered deposits (143) 26 (117) Advances from FHLB (377) (99) (476) Subordinated debt 30 (66) (36) Total interest-bearing liabilities 1,033 (3,927) (2,894) Net change in net interest income $ 2,636 $ 2,757 $ 5,393 Fluctuations in NII can result from the combination of changes in the average balances of asset and liability categories and changes in interest rates. Interest rates earned and paid are affected by general economic conditions, particularly changes in market interest rates, and by competitive factors, government policies and actions of regulatory authorities. NII was $48.7 million for the third quarter of 2025, compared to $43.3 million for the third quarter of 2024. The increase was primarily due to increases in interest and fees on loans of $1.8 million and interest on deposits at other banks of $651 thousand, as well as an increase in interest expense on short-term borrowings of $149 thousand. The Company’s NIM increased to 3.42% for the three months ended September 30, 2025, from 3.17% for the three months ended September 30, 2024 . Comparing the three months ended September 30, 2025 to the three months ended September 30, 2024 , the Company’s interest-earning asset yields decreased to 5.42% from 5.47%, while the cost of funds repriced at a faster pace, which resulted in a decrease of 29 bps basis points, from 2.38% to 2.09% for the same period. Provision for Credit Losses (“PCL”) and ACL Refer to the discussion of the Bank’s PCL and ACL in the asset quality discussion in the analysis of financial condition in this management’s discussion and analysis of financial condition and results of operations. Noninterest Income Total noninterest income for the three months ended September 30, 2025 was $7.7 million, an increase of $414 thousand from $7.3 million for the three months ended September 30, 2024. The increase was primarily due to a $101 thousand increase in mortgage banking revenue, driven by increased mortgage servicing activity, and a $147 thousand increase in interchange credits. 46 Table of Contents Noninterest Expense Total noninterest expense of $34.4 million for the three months ended September 30, 2025 increased $265 thousand when compared to the three months ended September 30, 2024 total noninterest expense of $34.1 million. The increase was primarily due to higher salaries and benefits expense of $2.1 million and higher software and data processing costs of $736 thousand, partially offset by the absence of the credit fraud loss-related expenses incurred in the third quarter 2024, lower legal and professional services of $373 thousand and lower amortization of other intangible assets of $297 thousand. Income Taxes The Company reported income tax expense of $4.6 million and $3.8 million for the three months ended September 30, 2025 and 2024, respectively. The effective tax rate was 24.4% and 25.2% for the three months ended September 30, 2025 and 2024, respectively. 47 Table of Contents RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 Summary of Financial Results The Company reported net income for the nine months ended September 30, 2025 of $43.6 million, or $1.31 diluted earnings per common share, compared to $30.6 million, or diluted earnings per share of $0.92, for the nine months ended September 30, 2024. The following table presents selected consolidated statement of operations data for each of the periods indicated. Nine Months Ended September 30, ($ in thousands) 2025 2024 $ Change % Change Interest and dividend income $ 229,871 $ 218,934 $ 10,937 5.0 % Interest expense 87,935 92,396 (4,461) (4.8) Net interest income 141,936 126,538 15,398 12.2 Provision for credit losses 5,548 3,958 1,590 40.2 Noninterest income 24,021 22,294 1,727 7.7 Noninterest expense 102,536 104,311 (1,775) (1.7) Income before income taxes 57,873 40,563 17,310 42.7 Income tax expense 14,254 9,956 4,298 43.2 Net income $ 43,619 $ 30,607 $ 13,012 42.5 Net Interest Income As shown in the table below, tax-equivalent net interest income increased $15.4 million to $142.2 million for the nine months ended September 30, 2025, compared to $126.8 million for the nine months ended September 30, 2024. The increase in net interest income was primarily due to an increase in total interest income of $10.9 million, or 5.0%, which included an increase in interest and fees on loans of $6.1 million, or 3.0%, and an increase in interest on deposits with other banks of $4.1 million, or 195.5%. The increase in interest and fees on loans was primarily due to the increase in the average balance of loans of $135.9 million, or 2.9%. The decrease in total interest expense was primarily due to a decrease in interest on deposits of $3.0 million, a decrease in interest expense on long-term borrowings of $1.1 million and a decrease in interest expense on short-term borrowings of $288 thousand. The decreases in borrowings were related to lower FHLB advances in 2025. Nine Months Ended September 30, ($ in thousands) 2025 2024 $ Change % Change Interest and dividend income Loans, including fees $ 208,273 $ 202,203 $ 6,070 3.0 % Interest and dividends on investment securities 15,386 14,629 757 5.2 Interest on deposits with banks 6,212 2,102 4,110 195.5 Total interest and dividend income $ 229,871 $ 218,934 $ 10,937 5.0 Interest expense Deposits $ 81,914 $ 84,938 $ (3,024) (3.6) % Short-term borrowings 1,843 2,131 (288) (13.5) Long-term borrowings 4,178 5,327 (1,149) (21.6) Total interest expense $ 87,935 $ 92,396 $ (4,461) (4.8) Taxable-equivalent adjustment $ 244 $ 242 $ 2 0.8 % Tax-equivalent net interest income $ 142,180 $ 126,780 $ 15,400 12.1 % 48 Table of Contents Average Balances and Yields The following table presents the distribution of the average consolidated balance sheets, interest income, interest expense and annualized yields earned and rates paid for the nine months ended September 30, 2025 and 2024. Nine Months Ended September 30, 2025 2024 ($ in thousands) Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Earning assets Loans (1), (2), (3) Commercial real estate $ 2,576,893 $ 111,244 5.77 % $ 2,521,258 $ 108,118 5.73 % Residential real estate 1,377,904 57,160 5.55 1,305,215 54,494 5.58 Construction 350,883 17,069 6.50 318,574 14,613 6.13 Commercial 225,322 10,743 6.37 217,684 11,833 7.26 Consumer 297,543 11,971 5.38 328,309 12,843 5.23 Credit cards 6,002 325 7.24 7,654 539 9.41 Total loans 4,834,547 208,512 5.77 4,698,694 202,440 5.76 Investment securities Taxable 670,304 15,368 3.06 671,875 14,611 2.90 Tax-exempt (1) 652 23 4.70 658 23 4.66 Interest-bearing deposits 188,707 6,212 4.40 56,486 2,102 4.97 Total earning assets 5,694,210 $ 230,115 5.40 5,427,713 $ 219,176 5.39 Cash and due from banks 47,752 47,211 Other assets 373,398 391,106 Allowance for credit losses (58,477) (57,877) Total assets $ 6,056,883 $ 5,808,153 Interest-bearing liabilities Interest-bearing checking $ 756,235 $ 17,879 3.16 % $ 800,258 $ 17,384 2.90 % Money market and savings deposits 1,753,594 28,872 2.20 1,676,457 30,871 2.46 Time deposits 1,248,405 34,966 3.74 1,196,324 36,116 4.03 Brokered deposits 6,911 197 3.81 16,642 567 4.55 Interest-bearing deposits (4) 3,765,145 81,914 2.91 3,689,681 84,938 3.07 FHLB advances 50,806 1,843 4.85 77,113 3,102 5.37 Subordinated debt and Guaranteed preferred beneficial interest in junior subordinated debentures (“TRUPS”) (4) 74,103 4,178 7.54 72,682 4,356 8.01 Total interest-bearing liabilities 3,890,054 87,935 3.02 3,839,476 92,396 3.21 Noninterest-bearing deposits 1,566,353 1,408,270 Accrued expenses and other liabilities 41,175 38,843 Stockholders’ equity 559,301 521,564 Total liabilities and stockholders’ equity $ 6,056,883 $ 5,808,153 Net interest income $ 142,180 $ 126,780 Net interest spread 2.38 % 2.18 % Net interest margin 3.34 3.12 Net interest margin excluding accretion (3) 3.11 2.83 Cost of funds 2.15 2.35 Cost of deposits 2.05 2.23 Cost of debt 6.44 6.65 ____________________________________ (1) All amounts are reported on a tax-equivalent basis computed using the statutory federal income tax rate of 21.0%, exclusive of nondeductible interest expense. (2) Average loan balances include nonaccrual loans. (3) Interest income on loans includes accreted loan fees, net of costs and accretion of discounts on acquired loans, which are included in the yield calculations. There were $11.3 million and $13.7 million of accretion interest on loans for the nine months ended September 30, 2025 and 2024, respectively. (4) Interest expense on deposits and borrowings includes amortization of deposit discounts and amortization of borrowing fair value adjustments. There were $1.0 million and $1.1 million of amortization of deposit discounts and $695 thousand and $695 thousand of amortization of borrowing fair value adjustments for the nine months ended September 30, 2025 and 2024, respectively. 49 Table of Contents Rate and Volume Analysis The following table presents changes in volume and rate related to interest income and interest expense for the periods indicated. Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024 ($ in thousands) Volume Due to Rate Total Interest income from earning assets: Loans Commercial real estate $ 2,372 $ 754 $ 3,126 Residential real estate 2,959 (293) 2,666 Construction 1,574 882 2,456 Commercial 359 (1,449) (1,090) Consumer (1,240) 368 (872) Credit cards (90) (124) (214) Taxable investment securities 406 351 757 Interest-bearing deposits 3,306 804 4,110 Total interest income $ 9,646 $ 1,293 $ 10,939 Interest-bearing liabilities: Interest-bearing checking deposits $ (1,061) $ 1,556 $ 495 Money market and savings deposits 1,261 (3,260) (1,999) Time deposits 1,445 (2,595) (1,150) Brokered deposits (278) (92) (370) Advances from FHLB (959) (300) (1,259) Subordinated debt 78 (256) (178) Total interest-bearing liabilities 486 (4,947) (4,461) Net change in net interest income $ 9,160 $ 6,240 $ 15,400 The Company’s NIM increased from 3.12% for the nine months ended September 30, 2024 to 3.34% for the nine months ended September 30, 2025. Margins were higher due to a $266.5 million increase in interest-earning asset balances and a 1 basis point increase in interest-earning asset yields. These positive movements were coupled with lower cost interest-bearing deposits. The increase in the average balances of interest-bearing deposits of $75.5 million was offset by a 16 basis point decrease in the associated rates paid, as well as a $26.3 million decrease in the average balance of FHLB advances and a 52 basis point decrease in the associated rates paid. Net accretion income impacted net interest margin by 23 basis points and 29 basis points for the nine months ended September 30, 2025 and 2024, respectively, which resulted in NIMs excluding accretion of 3.11% and 2.83% for the same periods. 50 Table of Contents Provision for Credit Losses and ACL Refer to the discussion of the Bank’s PCL and ACL in the asset quality discussion in the analysis of financial condition in this management’s discussion and analysis of financial condition and results of operations. Noninterest Income Total noninterest income for the nine months ended September 30, 2025 was $24.0 million, an increase of $1.7 million, or 7.7%, when compared to the same period in 2024. The increase was primarily due to a $936 thousand increase in mortgage banking revenue, a $341 thousand increase in other noninterest income and a $208 thousand increase in interchange credits. Noninterest Expense Total noninterest expense was $102.5 million for the nine months ended September 30, 2025, a decrease of $1.8 million, or 1.7%, when compared to the same period in 2024. Noninterest expense line items decreased primarily due to the absence of the $4.7 million credit card fraud event during the nine months ended September 30, 2024 and lower amortization of intangible assets of $893 thousand, which was partially offset by higher salaries and employee benefit expenses of $3.5 million and an increase of $2.0 million of software and data processing expense in the nine months ended September 30, 2025. Income Taxes The Company reported income tax expense of $14.3 million and $10.0 million for the nine months ended September 30, 2025 and 2024, respectively. The effective tax rate was 24.63% and 24.54% for the nine months ended September 30, 2025 and 2024, respectively. 51 Table of Contents LIQUIDITY Liquidity is our ability to meet cash demands as they arise. Cash needs may come from loan demand, deposit withdrawals or acquisition opportunities. Potential obligations, resulting from the issuance of standby letters of credit and commitments to fund future borrowings to our loan customers, are other factors affecting our liquidity needs. Many of these obligations and commitments are expected to expire without being drawn upon; therefore, the total commitment amounts do not necessarily represent future cash requirements affecting our liquidity position. The Company’s principal sources of liquidity are cash on hand and dividends received from the Bank. The Bank’s most liquid assets are cash, cash equivalents and federal funds sold. The levels of such assets are dependent upon the Bank’s operating, financing and investment activities at any given time. The variations in levels of cash and cash equivalents are influenced by deposit flows and anticipated future deposit flows. Customer deposits are considered the primary source of funds supporting the Bank’s lending and investment activities. Based on management’s going concern evaluation, management believes that there are no conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s or the Bank’s ability to continue as a going concern within one year of the date of the issuance of the financial statements. The Bank’s principal sources of funds for investment and operations are net income, deposits, sales of loans, borrowings, principal and interest payments on loans, principal and interest received on investment securities and proceeds from the maturity and sale of investment securities. The Bank’s principal funding commitments are for the origination or purchase of loans, the purchase of securities and the payment of maturing deposits. The Bank’s most liquid assets are cash, cash equivalents and federal funds sold. The levels of such assets are dependent on the Bank’s operating, financing and investment activities at any given time. The variations in levels of cash and cash equivalents are influenced by deposit flows and anticipated future deposit flows. Liquidity is provided by access to funding sources, which include core deposits and brokered deposits. Other sources of funds include our ability to borrow, such as purchasing federal funds from correspondent banks, sales of securities under agreements to repurchase and advances from the FHLB. The Bank uses wholesale funding (brokered deposits and other sources of funds) to supplement funding when loan growth exceeds core deposit growth and for asset-liability management purposes. The Company derives liquidity through increased customer deposits, non-reinvestment of the cash flow from the investment portfolio, loan repayments, borrowings and income from earning assets. As seen in the consolidated statements of cash flows, the net decrease in cash and cash equivalents was $43.3 million for the first nine months of 2025, compared to a net decrease of $188.8 million for the first nine months of 2024. The decrease in cash and cash equivalents in the first nine months of 2025 was mainly due to the decrease of $32.6 million in interest-bearing deposits and loan growth, partially offset by an increase of $31.4 million in noninterest-bearing deposits. To the extent that deposits are not adequate to fund customer loan demand, liquidity needs can be met in the short-term fund markets. At September 30, 2025, the Bank had approximately $1.37 billion of available liquidity, including $416.5 million in cash and cash equivalents, $294.4 million in unpledged securities and $739.6 million in secured borrowing capacity at the FHLB of Atlanta, partially offset by FHLB advances and a letter of credit of $50.0 million and $33.1 million, respectively. The Bank has arrangements with other correspondent banks whereby it has $65.0 million available in federal funds lines of credit and a reverse repurchase agreement available to meet any short-term needs which may not otherwise be funded by the Bank’s portfolio of readily marketable investments that can be converted to cash. Through the FHLB, the Bank had available lendable collateral of approximately $739.6 million and $743.6 million at September 30, 2025 and December 31, 2024, respectively. The Bank has pledged, under a blanket lien, all qualifying residential and commercial real estate loans under borrowing agreements with the FHLB of Atlanta. The following table presents the Company’s liquidity in use and liquidity available as of September 30, 2025. September 30, 2025 ($ in thousands) Liquidity in Use Liquidity Available FHLB secured borrowings (1) $ 83,100 $ 739,582 Unsecured federal fund purchase lines — 65,000 Unpledged assets Cash and cash equivalents N/A $ 416,513 Investment securities N/A 294,410 Total $ 83,100 $ 1,515,505 ____________________________________ (1) The Bank has pledged a portion of the commercial real estate and residential loan portfolio to the FHLB to secure the line of credit. 52 Table of Contents For information about risks relating to liquidity, see “Risk Factors – Risks Relating to Our Business” included in Part I, Item 1A. in the 2024 Annual Report. CAPITAL RESOURCES The Bank and the Company are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank and the Company to maintain minimum ratios of common equity Tier 1 (“CET1”), Tier 1, and total capital as a percentage of assets and off-balance sheet exposures, adjusted for risk weights ranging from 0% to 12.50%. The Bank and Company are also required to maintain capital at a minimum level based on quarterly average assets, which is known as the leverage ratio. The Bank was deemed “well-capitalized” under applicable regulatory capital requirements at September 30, 2025. The Company evaluates capital resources by the ability to maintain adequate regulatory capital ratios. The Company and the Bank annually update its strategic plan, which includes a three-year capital plan. In developing its plan, the Company considers the impact to capital of asset growth, loan concentrations, income accretion, dividends, holding company liquidity, investment in markets and people and stress testing. As of September 30, 2025, the Bank and the Company were in compliance with all applicable regulatory capital requirements to which they were subject, and the Bank was classified as “well-capitalized” for purposes of the prompt corrective action regulations. The following tables present the applicable capital ratios for the Company and the Bank as of September 30, 2025 and December 31, 2024. September 30, 2025 Tier 1 Leverage Ratio Common Equity Tier 1 Ratio Tier 1 Risk-Based Capital Ratio Total Risk-Based Capital Ratio The Company 8.86 % 10.21 % 10.82 % 12.88 % The Bank 9.41 11.49 11.49 12.75 December 31, 2024 Tier 1 Leverage Ratio Common Equity Tier 1 Ratio Tier 1 Risk-Based Capital Ratio Total Risk-Based Capital Ratio The Company 8.02 % 9.44 % 10.06 % 12.18 % The Bank 8.58 10.75 10.75 11.97 On November 3, 2025, the Company announced that its Board of Directors declared a cash dividend of $0.12 per share, payable on November 26, 2025, to holders of record of shares of common stock as of November 13, 2025. See Note 10 – “Regulatory Capital Requirements” in the “Notes to Consolidated Financial Statements” included in Part I, Item 1. of this Quarterly Report on Form 10-Q for further information about the regulatory capital positions of the Bank and the Company. 53 Table of Contents ANALYSIS OF FINANCIAL CONDITION Balance Sheet Summary Total assets were $6.28 billion at September 30, 2025, an increase of $47.7 million, or 0.8%, when compared to $6.23 billion at December 31, 2024. The aggregate increase was primarily due to an increase in the loan portfolio of $111.0 million, partially offset by a decrease in interest-bearing deposits at other banks of $61.6 million and a decrease in the investment securities portfolio of $14.8 million. The decrease in interest-bearing deposits with other institutions was primarily driven by loan growth. Total assets increased $360.8 million, or 6.1%, from $5.92 billion when compared to September 30, 2024. The ratio of the ACL as a percentage of loans was 1.22% and 1.21% at September 30, 2025 and December 31, 2024, respectively. Cash and Cash Equivalents Cash and cash equivalents totaled $416.5 million at September 30, 2025, compared to $459.9 million at December 31, 2024. Total cash and cash equivalents fluctuate due to transactions in process and other liquidity demands. Management believes liquidity needs are satisfied by the current balance of cash and cash equivalents, readily available access to traditional and wholesale funding sources, and the portions of the investment and loan portfolios that mature within one year. Investment Securities The investment portfolio includes debt and equity securities. Debt securities are classified as either AFS or HTM. AFS investment securities are stated at estimated fair value based on market prices. They represent securities which may be sold as part of the asset/liability management strategy or in response to changing interest rates. Net unrealized holding gains and losses on these securities are reported net of related income taxes as accumulated other comprehensive income (loss), a separate component of stockholders’ equity. Investment securities in the HTM category are stated at cost adjusted for amortization of premiums and accretion of discounts and the ACL. We have the intent and ability to hold such securities until maturity. At September 30, 2025, 29.5% of the portfolio of debt securities was classified as AFS and 70.5% was classified as HTM, compared to 23.7% and 76.3%, respectively, at December 31, 2024. See Note 2 – “Investment Securities” in the “Notes to Consolidated Financial Statements” included in Part I, Item 1. of this Quarterly Report on Form 10-Q for additional details on the composition of the investment portfolio. Investment securities, including restricted stock and equity securities, totaled $641.6 million at September 30, 2025, a $14.7 million, or 2.2% decrease, compared to $656.4 million at December 31, 2024. At September 30, 2025, AFS securities, carried at fair value, totaled $181.7 million, compared to $149.2 million at December 31, 2024. At September 30, 2025, AFS securities consisted of 86.1% mortgage-backed, 11.3% U.S. government agencies and 2.6% corporate bonds, compared to 82.0%, 13.5% and 4.4%, respectively, at December 31, 2024. At September 30, 2025, the accumulated other comprehensive loss was $4.8 million, compared to $7.5 million at December 31, 2024. At September 30, 2025, HTM securities, carried at amortized cost, totaled $433.4 million, compared to $481.1 million at December 31, 2024. At September 30, 2025, HTM securities consisted of 71.9% mortgage-backed, 26.5% U.S. government agencies and 1.6% other debt securities, compared to 70.0%, 27.5% and 2.5%, respectively, at December 31, 2024. At September 30, 2025 and December 31, 2024, 98.1% and 97.1%, respectively, of the Bank’s carrying value of its investment portfolio consisted of securities issued or guaranteed by U.S. government agencies or government-sponsored agencies. The Company monitors the credit quality of HTM securities through credit ratings provided by Standard & Poor’s Rating Services and Moody’s Investor Services. Credit ratings express opinions about the credit quality of a security and are updated at each quarter end. Investment grade securities are rated BBB- or higher by S&P and Baa3 or higher by Moody’s and are generally considered by the rating agencies and market participants to be of low credit risk. Conversely, securities rated below investment grade, which are labeled as speculative grade by the rating agencies, are considered to have distinctively higher credit risk than investment grade securities. There were no speculative grade HTM securities at September 30, 2025 or December 31, 2024. HTM securities that are not rated are agency mortgage-backed securities sponsored by U.S. government agencies, as well as direct obligations of the agencies, with the remainder being sub-debt of other banks. 54 Table of Contents The following table shows the amortized cost of HTM securities based on their lowest publicly available credit rating as of September 30, 2025. September 30, 2025 Investment Grade ($ in thousands) Aaa Aa1 A3 Baa1 Baa2 NR Total U.S. Treasury and government agency securities $ 5,455 $ 109,429 $ — $ — $ — $ — $ 114,884 Mortgage-backed securities 311,689 — — — — — 311,689 Other debt securities — 1,462 2,000 1,000 500 2,000 6,962 Total held to maturity securities $ 317,144 $ 110,891 $ 2,000 $ 1,000 $ 500 $ 2,000 $ 433,535 The following table shows the amortized cost of HTM securities based on their lowest publicly available credit rating as of December 31, 2024. December 31, 2024 Investment Grade ($ in thousands) Aaa Aa1 A3 Baa1 Baa2 NR Total U.S. Treasury and government agency securities $ 132,560 $ — $ — $ — $ — $ — $ 132,560 Mortgage-backed securities 336,755 — — — — — 336,755 Other debt securities — 1,465 4,000 4,000 500 2,000 11,965 Total held to maturity securities $ 469,315 $ 1,465 $ 4,000 $ 4,000 $ 500 $ 2,000 $ 481,280 Loans Held for Sale The Company originates residential mortgage loans for sale on the secondary market, which are recorded at fair value. At September 30, 2025 and December 31, 2024 , the fair value of loans held for sale amounted to $21.5 million and $19.6 million , respectively. The Bank makes certain representations to purchasers in the sale of mortgage loans related to loan ownership, loan compliance and legality, and accurate documentation. If a loan is found to be out of co mpliance with any of the representations subsequent to the date of purchase, the Bank may be required to repurchase the loan or indemnify the purchaser. During the three and nine months ended September 30, 2025, the Bank repurchased one loan valued at $523 thousand and two loans with an aggregate value of $938 thousand, respectively. No loans were repurchased during the three or nine months ended September 2024. Loans Held for Investment The following table summarizes the Company’s loan portfolio at September 30, 2025 and December 31, 2024. ($ in thousands) September 30, 2025 % of Total Loans December 31, 2024 % of Total Loans $ Change % Change Commercial real estate $ 2,642,601 54.1 % $ 2,557,806 53.6 % $ 84,795 3.3 % Residential real estate 1,383,348 28.3 1,329,406 27.9 53,942 4.1 Construction 352,116 7.2 335,999 7.0 16,117 4.8 Commercial 221,598 4.5 237,932 5.0 (16,334) (6.9) Consumer 278,242 5.7 303,746 6.4 (25,504) (8.4) Credit cards 5,064 0.1 7,099 0.2 (2,035) (28.7) Total loans 4,882,969 100.0 % 4,771,988 100.0 % 110,981 2.3 Less: allowance for credit losses (59,554) (57,910) (1,644) 2.8 Total loans, net $ 4,823,415 $ 4,714,078 $ 109,337 2.3 CRE Loan Portfolio The Company’s loan portfolio has a CRE loan concentration, which is generally defined as a combination of certain construction and CRE loans. The federal banking regulators have issued guidance for those institutions which are deemed to have concentrations in CRE lending. Pursuant to the supervisory criteria contained in the guidance for identifying institutions with a potential CRE concentration risk, institutions which have (1) total reported loans for construction, land development, and other land acquisitions which represent 100% or more of an institution’s total risk-based capital; or (2) total non-owner occupied CRE loans representing 300% or more of the institution’s total risk-based capital and the institution’s non-owner occupied CRE loan portfolio (including construction) has increased 50% or more 55 Table of Contents during the prior 36 months are identified as having potential CRE concentration risk. Institutions which are deemed to have concentrations in CRE lending are expected to employ heightened levels of risk management with respect to their CRE portfolios and may be required to hold higher levels of capital. The Bank has a concentration in CRE loans, and experienced significant growth in its CRE portfolio with its acquisition of The Community Financial Corporation and its wholly-owned subsidiary, Community Bank of the Chesapeake. Non-owner occupied CRE loans totaled $2.16 billion and $2.08 billion at September 30, 2025 and December 31, 2024, respectively, and as a percentage of the Bank’s Tier 1 Capital plus ACL were 348.42% and 359.52%, respectively. Construction loans totaled $350.9 million and $336.0 million at September 30, 2025 and December 31, 2024, respectively, and as a percentage of the Bank’s Tier 1 Capital plus ACL were 56.71% and 57.99%, respectively. The CRE portfolio has increased in the past two years. Management has extensive experience in CRE lending and has implemented and continues to maintain heightened risk management procedures, as well as strong underwriting criteria with respect to its CRE portfolio. Monitoring practices are part of the Bank’s credit and risk departments’ annual test plans and are adjusted as needed on a quarterly basis if external or internal conditions merit changes. The Bank’s CRE monitoring plans include stress testing analysis to evaluate changes in collateral values and changes in cash flow debt service coverage ratios as a result of increasing interest rates or declines in customer net operating revenues. We may be required to maintain higher levels of capital as a result of our CRE concentrations, which could require us to obtain additional capital, or be required to sell/participate portions of loans, either of which may adversely affect shareholder returns. Non-Owner Occupied CRE Loans September 30, 2025 ($ in thousands) Amount Average Loan Size % of Non-Owner Occupied CRE Loans % of Total Portfolio Loans, Gross Loan type: Retail $ 486,968 $ 2,510 22.6 % 10.0 % Office 346,285 1,461 16.1 7.1 Multifamily (5+ units) 287,016 2,412 13.3 5.9 Industrial/warehouse 211,455 1,555 9.8 4.3 1-4 family dwelling 205,805 552 9.5 4.2 Motel/hotel 204,511 4,090 9.5 4.2 Other (1) 413,845 678 19.2 8.5 Total non-owner occupied CRE loans (2) $ 2,155,885 1,254 100.0 % 44.2 % Total portfolio loans, gross (3) $ 4,882,969 ____________________________________ (1) Other non-owner occupied CRE loans include commercial - improved loans of $160.7 million, lot/land loans of $86.9 million, self-storage loans of $72.2 million and other loans of $94.0 million. (2) The balances for the non-owner occupied CRE portfolio as of September 30, 2025, as presented in this table, coincide with our internal evaluation of risk for the purpose of monitoring loan concentrations in accordance with internal and regulatory guidelines. (3) Excludes loans held for sale of $21.5 million. Owner Occupied CRE Loans September 30, 2025 ($ in thousands) Amount Average Loan Size % of Owner Occupied CRE Loans % of Total Portfolio Loans, Gross Loan type: Commercial – improved $ 206,657 $ 1,161 26.7 % 4.2 % Office 127,407 502 16.5 2.6 Industrial/warehouse 96,857 673 12.5 2.0 Retail 66,951 614 8.7 1.4 Restaurant 59,928 999 7.8 1.2 Other (1) 215,224 1,202 27.8 4.4 Total owner occupied CRE loans 773,024 837 100.0 % 15.8 % Total portfolio loans, gross (2) $ 4,882,969 ____________________________________ (1) Other owner occupied CRE loans include church loans of $60.4 million, marina/boat loans of $39.3 million, fire/EMS building loans of $38.7 million and other loans of $76.8 million. 56 Table of Contents (2) Excludes loans held for sale of $21.5 million. Office CRE Loan Portfolio The Bank’s office CRE loan portfolio, which includes owner occupied and non-owner occupied CRE loans, was $473.7 million, or 9.7% of total loans of $4.88 billion at September 30, 2025. The Bank’s office CRE loan portfolio included $129.7 million, or 27.4% of total office CRE loans, with medical tenants, and $54.0 million, or 11.4% of total office CRE loans, with government or government contractor tenants. There were 491 loans in the office CRE loan portfolio with an average and median loan size of $965 thousand and $366 thousand, respectively. Loan to Value (“LTV”) estimates are less than 50% for $156.7 million, or 33.1% of the office CRE loan portfolio, and greater than 80% for $10.2 million, or 2.2% of the office CRE loan portfolio. LTV collateral values are based on the most recent appraisal, which varies from the initial loan boarding to interim credit reviews. LTV estimates for the office CRE loan portfolio are summarized in the table below and LTV collateral values are based on the most recent appraisal, which may vary from the appraised value at loan origination. LTV Range ($ in thousands) Loan Count Loan Balance % of Office CRE Less than or equal to 50% 242 $ 156,733 33.1 % 50%-60% 78 111,682 23.6 60%-70% 92 132,631 28.0 70%-80% 63 62,485 13.2 Greater than 80% 16 10,161 2.1 Total 491 $ 473,692 100.0 % The Bank had 16 office CRE loans totaling $144.7 million that were greater than $5.0 million at September 30, 2025, compared to 18 office CRE loans totaling $164.5 million at December 31, 2024. The decrease in this portfolio segment was the result of normal amortization, the payoff of a $5.6 million loan, and the change in purpose of collateral of an $11.8 million loan from office to school . For the office CRE portfolio, at September 30, 2025, the average loan debt-service coverage ratio was 1.8x and the average LTV was 48.4%. Of the office CRE portfolio balance, 80.1% is secured by properties in rural or suburban areas with limited exposure to metropolitan cities and 96.9% are secured by properties with five stories or less. Of the office CRE loans, $5.5 million will mature and $5.4 million will reprice prior to December 31, 2025. Of the office CRE loans, $13.7 million are special mention or substandard. Maturity of Loan Portfolio The following table below sets forth the maturities and interest rate sensitivity of the loan portfolio at September 30, 2025. Demand loans, loans having no stated schedule of repayments and no stated maturity, and overdrafts are reported as maturing within one year. ($ in thousands) Maturing <1 Year Maturing 1-5 Years Maturing 5-15 Years Maturing >15 Years Total Commercial real estate $ 242,648 $ 802,339 $ 782,314 $ 815,300 $ 2,642,601 Residential real estate 39,586 130,973 119,838 1,092,951 1,383,348 Construction 236,956 76,457 34,684 4,019 352,116 Commercial 58,640 81,155 57,665 24,138 221,598 Consumer 1,838 88,192 87,203 101,009 278,242 Credit cards 2,187 2,216 661 — 5,064 Total $ 581,855 $ 1,181,332 $ 1,082,365 $ 2,037,417 $ 4,882,969 Rate Terms: Fixed-interest rate loans $ 410,107 $ 1,022,011 $ 622,665 $ 326,099 $ 2,380,882 Adjustable-interest rate loans 171,748 159,321 459,700 1,711,318 2,502,087 Total $ 581,855 $ 1,181,332 $ 1,082,365 $ 2,037,417 $ 4,882,969 Loans related to Cannabis business At September 30, 2025, loan balances were $86.2 million, or 1.77% of total gross loans. At December 31, 2024, loan balances were $82.6 million, or 1.73% of total gross loans. 57 Table of Contents Asset Quality The following table summarizes asset quality information and ratios at September 30, 2025 and December 31, 2024. ($ in thousands) September 30, 2025 December 31, 2024 ASSET QUALITY Total portfolio loans $ 4,882,969 $ 4,771,988 Special mention loans 70,997 33,519 Classified loans 48,470 24,679 Other real estate owned 120 179 Repossessed assets 3,432 3,315 Total classified assets (1) 52,022 28,173 Total classified loans and special mention loans 119,467 58,198 Allowance for credit losses on loans (59,554) (57,910) Past due loans – 31 to 89 days 5,559 8,807 Past due loans >= 90 days 153 294 Total past due (delinquency) loans 5,712 9,101 Nonaccrual loans 24,378 21,008 Past due loans >= 90 days 153 294 Other real estate owned (“OREO”) 120 179 Repossessed assets 3,432 3,315 Total nonperforming assets 28,083 24,796 Accruing borrowers experiencing financial difficulty (“BEFD”) modifications (2) 6,704 1,362 Nonaccrual loans, OREO, repossessed assets and BEFD modifications $ 34,787 $ 26,158 ($ in thousands) September 30, 2025 December 31, 2024 ASSET QUALITY RATIOS Classified assets to total assets (1) 0.83 % 0.45 % Classified assets to risk-based capital (1) 8.30 4.77 Allowance for credit losses on loans to total portfolio loans 1.22 1.21 Allowance for credit losses on loans to nonaccrual loans 244.29 275.66 Past due loans – 31 to 89 days to total portfolio loans 0.11 % 0.18 % Past due loans >=90 days and nonaccrual to total loans 0.50 0.45 Total past due (delinquency) and nonaccrual to total portfolio loans 0.62 0.63 Nonaccrual loans to total portfolio loans 0.50 % 0.44 % Nonperforming assets to total assets 0.45 0.40 ____________________________________ (1) Classified assets are substandard loans, OREO and other repossessed assets. Classified assets do not include special mention loans. (2) BEFD modification loans include both nonaccrual and accruing performing loans. All BEFD modification loans are included in the calculation of asset quality financial ratios. Nonaccrual BEFD modification loans are included in the nonaccrual balance and accruing BEFD modification loans are included in the accruing BEFD modification balance. Allowance for Credit Losses on Loans The ACL was $59.6 million at September 30, 2025, $57.9 million at December 31, 2024 and $58.7 million at September 30, 2024. There were net charge-offs of $1.8 million for the three months ended September 30, 2025, compared to net charge-offs of $1.3 million for the 58 Table of Contents three months ended September 30, 2024. There were net charge-offs of $3.0 million for the nine months ended September 30, 2025, compared to net charge-offs of $2.7 million for the nine months ended September 30, 2024. The ratio of annualized net charge-offs to average loans was 0.15% and 0.11% for the three months ended September 30, 2025 and 2024, respectively. The ratio of annualized net charge-offs to average loans was 0.08% and 0.08% for the nine months ended September 30, 2025 and 2024, respectively. Management remains focused on its efforts to dispose of problem loans and to prudently charge-off nonperforming loans to enable the Company to maintain overall credit quality. The ACL as a percentage of period-end loans was 1.22% at September 30, 2025 and December 31, 2024. The following table allocates the ACL by portfolio loan category as of the dates indicated. The allocation of the ACL to each category is not necessarily indicative of future losses and does not restrict the use of the ACL to absorb losses in any category. September 30, 2025 December 31, 2024 ($ in thousands) ACL Average Balance % (1) ACL Average Balance % (1) Commercial real estate $ 21,069 $2,615,409 0.81 % $ 22,846 $2,551,903 0.90 % Residential real estate 22,810 1,407,076 1.62 21,776 1,358,066 1.60 Construction 6,221 347,574 1.79 2,854 336,094 0.85 Commercial 3,642 219,002 1.66 3,138 229,676 1.37 Consumer 5,702 289,729 1.97 6,889 313,686 2.20 Credit cards 110 5,213 2.11 407 6,820 5.97 Total $ 59,554 $4,884,003 1.22 $ 57,910 $4,796,245 1.21 ____________________________________ (1) Percent of loans in each category to total portfolio loans. The following table presents the net charge-offs or recoveries by average loan portfolio category for the three and nine months ended September 30, 2025 and 2024. Three Months Ended September 30, 2025 September 30, 2024 ($ in thousands) Net (Charge-offs) Recoveries Average Balance (1) Net (Charge-off) Recovery % Net (Charge-offs) Recoveries Average Balance (1) Net (Charge-off) Recovery % Commercial real estate $ (109) $ 2,615,409 0.02 % $ — $ 2,522,170 — % Residential real estate 141 1,407,076 (0.04) 1 1,332,891 0.00 Construction — 347,574 — 1 336,209 — Commercial (435) 219,002 0.79 (153) 212,611 0.29 Consumer (1,328) 289,729 1.82 (927) 322,988 1.14 Credit cards (94) 5,213 7.15 (210) 7,132 11.71 Total (1,825) 4,884,003 0.15 (1,288) 4,734,001 0.11 Allowance for credit losses — (58,764) — — (58,515) — Total net charge-off and average loans $ (1,825) $ 4,825,239 0.15 $ (1,288) $ 4,675,486 0.11 ____________________________________ (1) Excludes loans held for sale. 59 Table of Contents Nine Months Ended September 30, 2025 September 30, 2024 ($ in thousands) Net (Charge-offs) Recoveries Average Balance (1) % Net (Charge-offs) Recoveries Average Balance (1) % Commercial real estate $ (31) $ 2,576,893 0.00 % $ — $ 2,521,258 — % Residential real estate 144 1,377,904 (0.01) 4 1,305,215 0.00 Construction 1 350,883 0.00 (5) 318,574 0.00 Commercial (350) 225,322 0.21 (173) 217,684 0.11 Consumer (2,267) 297,543 1.02 (2,169) 328,309 0.88 Credit cards (525) 6,002 11.69 (396) 7,654 0.00 (3,028) 4,834,547 0.08 (2,739) 4,698,694 0.08 Allowance for credit losses — (58,477) — — (57,877) — Total net charge-off and average loans $ (3,028) $ 4,776,070 0.08 $ (2,739) $ 4,640,817 0.08 Classified Assets and Special Mention Assets Classified assets increased $23.8 million to $52.0 million, or 0.8% of total assets, at September 30, 2025, from $28.2 million, or 0.5% of total assets, at December 31, 2024. Classified assets are substandard loans, repossessed assets and OREO. The increase was primarily due to several commercial non-owner occupied real estate loans, which were downgraded during the current period. All of these loans are well secured by collateral and required minimal individual reserves as of September 30, 2025. Special mention loans increased to $71.0 million at September 30, 2025 from $33.5 million at December 31, 2024. Increases in special mention loan categories were due to loans related to the multifamily commercial real estate portfolio. Management believes these assets are well collateralized and will continue to monitor the cash flow. The Company’s risk rating process for classified loans is an important input into the Company’s allowance methodology and ACL qualitative framework. Nonperforming assets were $28.1 million, or 0.5% of total assets, at September 30, 2025, compared to $24.8 million, or 0.4% of total assets, at December 31, 2024. The balance of nonperforming assets increased primarily due to an increase of nonaccrual loans of $3.4 million. Off-Balance Sheet Credit Exposure Reserve The Company’s reserve for off-balance sheet credit exposure was $2.1 million and $1.1 million at September 30, 2025 and December 31, 2024, respectively. The Company is monitoring line of credit usage and has not seen substantive increases in usage or expected usage. The Company will continue to monitor activity for potential increases in the off-balance sheet reserve in future quarters as customers use available liquidity. Deposits The following is a breakdown of the Company’s deposit portfolio at September 30, 2025 and December 31, 2024: ($ in thousands) September 30, 2025 December 31, 2024 Balance % Balance % $ Change % Change Noninterest-bearing $ 1,594,212 28.8 % $ 1,562,815 28.3 % $ 31,397 2.0 % Interest-bearing: Interest-bearing checking 851,963 15.4 978,076 17.7 (126,113) (12.9) Money market and savings 1,790,001 32.4 1,805,884 32.7 (15,883) (0.9) Time deposits 1,281,132 23.2 1,181,561 21.4 99,571 8.4 Brokered deposits 10,857 0.2 — — 10,857 * Total interest-bearing 3,933,953 71.2 3,965,521 71.7 (31,568) (0.8) Total deposits $ 5,528,165 100.0 % $ 5,528,336 100.0 % $ (171) 0.0 ____________________________________ * Not meaningful for comparative purposes 60 Table of Contents Total deposits decreased $171 thousand, to $5.5 billion at September 30, 2025 when compared to December 31, 2024. The slight decrease in total deposits was primarily due to a decrease in interest-bearing demand deposits of $126.1 million and money market and savings deposits of $15.9 million, partially offset by an increase in time deposits of $99.6 million and noninterest-bearing deposits of $31.4 million. The decrease in interest-bearing checking deposits is primarily attributable to seasonal municipal runoff. Total estimated uninsured deposits were $936.3 million, or 16.9% of total deposits, at September 30, 2025 and $905.3 million, or 16.4% of total deposits, at December 31, 2024. At September 30, 2025, there were $144.1 million included in uninsured deposits that the Bank secured using the market value of pledged collateral. The Bank’s uninsured deposits, excluding the market value of pledged collateral, at September 30, 2025 were $792.2 million, or 14.3% of total deposits. The Bank is required to monitor large deposit relationships and concentration risks in accordance with regulatory guidance. This includes monitoring deposit concentrations and maintaining fund management policies and strategies that take into account potentially volatile concentrations and significant deposits that mature simultaneously. Regulatory guidance defines a large depositor as a customer or entity that owns or controls 2% or more of the Bank’s total deposits. At September 30, 2025, the Bank had three local municipal customer deposit relationships that exceeded 2% of total deposits, totaling $538.3 million, which represented 9.7% of total deposits of $5.53 billion. At December 31, 2024, there were three customer deposit relationships that exceeded 2% of total deposits, totaling $547.4 million, which represented 9.9% of total deposits of $5.54 billion. At September 30, 2025, deposit balances related to the cannabis business were $134.3 million, or 2.43% of total deposits. At December 31, 2024, deposit balances were $151.4 million, or 2.74% of total deposits, Wholesale Funding – Short-Term Borrowings and Brokered Deposits The Company’s wholesale funding, which includes FHLB advances and brokered deposits, was $60.9 million and $50.0 million at September 30, 2025 and December 31, 2024, respectively. The $50.0 million FHLB advance was for an initial term of 18-months at a rate of 4.79%. This advance has the option to be called by FHLB at any time and matures on November 7, 2025. At September 30, 2025, the Company had $10.9 million of brokered deposits and no securities sold under agreements to repurchase or overnight borrowings from correspondent banks. At December 31, 2024, the Company had no brokered deposits or securities sold under agreements to repurchase or overnight borrowings from correspondent banks. For FDIC call reporting purposes, reciprocal deposits are classified as brokered deposits when they exceed 20% of a bank’s liabilities or $5.0 billion . Reciprocal deposits decreased $162.0 million to $1.48 billion at September 30, 2025, compared to $1.65 billion at December 31, 2024. Reciprocal deposits as a percentage of the Bank’s liabilities at September 30, 2025 and December 31, 2024 were 26.3% and 29.3%, respectively. For call reporting purposes, $367.5 million of reciprocal deposits were considered brokered at September 30, 2025, compared to $520.5 million at December 31, 2024. 61 Table of Contents Long-Term Debt The Company occasionally borrows from the FHLB to meet longer term liquidity needs, specifically to fund loan growth when liquidity from deposit growth is not sufficient. The Company had no long term borrowing with the FHLB as of September 30, 2025. In August 2020, the Company issued and sold $25.0 million in aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes due September 01, 2030. The subordinated notes bore an initial interest rate of 5.375% through September 30, 2025, after which the interest rate adjusts quarterly to an amount equal to 3-month SOFR plus 5.265%. As a result of the merger with Severn Bancorp, Inc., effective October 31, 2021, the Company assumed liability for Junior Subordinated Debt Securities due in 2035, which had an outstanding principal balance of $20.6 million. The debt balances of $18.9 million at September 30, 2025 and $18.8 million at December 31, 2024 were presented net of fair value adjustments of $1.7 million and $1.8 million, respectively. Additionally, as a result of the merger with The Community Financial Corporation in 2023 , the Company assumed liability for Junior Subordinated Debt Securities with an outstanding principal balance of $12.4 million. The debt b alance of $11.2 million at September 30, 2025 was presented net of a fair value adjustment of $1.2 million. In addition, the Company assumed liability for 4.75% fixed-to-floating rate subordinated notes with a carrying value of $19.5 million at September 30, 2025. The notes’ aggregate balance of $19.4 million at September 30, 2025 was presented net of fair value adjustment of $91 thousand. Stockholders’ Equity ($ in thousands, except per share amounts) September 30, 2025 December 31, 2024 $ Change % Change Common stock, $0.01 par value per share $ 334 $ 333 $ 1 0.3 % Additional paid in capital 359,939 358,112 1,827 0.5 Retained earnings 221,693 190,166 31,527 16.6 Accumulated other comprehensive loss (4,759) (7,545) 2,786 (36.9) Total stockholders’ equity $ 577,207 $ 541,066 $ 36,141 6.7 Total stockholders’ equity increased $36.1 million, or 6.7%, to $577.2 million at September 30, 2025 when compared to December 31, 2024, primarily due to $43.6 million of net income and a decrease in accumulated other comprehensive loss of $2.8 million, partially offset by dividends declared of $12.1 million. 62 Table of Contents USE OF NON-GAAP FINANCIAL MEASURES Statements included in the management’s discussion and analysis of financial condition and results of operations include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measures to GAAP financial measures. The Company’s management uses these non-GAAP financial measures and believes that non-GAAP financial measures provide additional useful information that allows readers to evaluate the ongoing performance of the Company. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP. See non-GAAP reconciliation schedules that immediately follow. Reconciliation of Non-GAAP Measures This Quarterly Report on Form 10-Q, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with GAAP. This financial information includes certain performance measures, which exclude intangible assets. These non-GAAP measures are included because the Company believes they may provide useful supplemental information for evaluating the underlying performance trends of the Company. ($ in thousands, except per share amounts) September 30, 2025 December 31, 2024 September 30, 2024 Total assets $ 6,278,479 $ 6,230,763 $ 5,917,704 Less: intangible assets Goodwill 63,266 63,266 63,266 Core deposit intangibles 31,722 38,311 40,609 Total intangible assets 94,988 101,577 103,875 Tangible assets $ 6,183,491 $ 6,129,186 $ 5,813,829 Total common equity $ 577,207 $ 541,066 $ 533,271 Less: intangible assets 94,988 101,577 103,875 Tangible common equity $ 482,219 $ 439,489 $ 429,396 Common shares outstanding at end of period 33,421,672 33,332,177 33,326,772 Common equity to assets 9.19 % 8.68 % 9.01 % Tangible common equity to tangible assets 7.80 7.17 7.39 Common book value per share $ 17.27 $ 16.23 $ 16.00 Tangible common book value per share 14.43 13.19 12.88 63 Table of Contents Return on Average Common Equity ROACE is a financial ratio that measures the profitability of a company in relation to the average stockholders’ equity. This financial metric is expressed in the form of a percentage which is equal to net income after tax divided by the average stockholders’ equity for a specific period of time. Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2025 2024 2025 2024 Net income $ 14,348 $ 11,189 $ 43,619 $ 30,607 Annualized net income $ 56,924 $ 44,513 $ 58,318 $ 40,884 ROACE 9.96 % 8.41 % 10.43 % 7.84 % Average stockholders’ equity $ 571,247 $ 529,155 $ 559,301 $ 521,564 Return on Average Tangible Common Equity ROATCE is computed by dividing net earnings applicable to common stockholders by average tangible common equity. Management believes that ROATCE is meaningful because it measures the performance of a business consistently, whether acquired or internally-developed. ROATCE is a non-GAAP measure and may not be comparable to similar non-GAAP measures used by other companies. Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2025 2024 2025 2024 Net income $ 14,348 $ 11,189 $ 43,619 $ 30,607 Annualized net income $ 56,924 $ 44,513 $ 58,318 $ 40,884 ROATCE 11.98 % 10.50 % 12.65 % 9.88 % Average stockholders’ equity $ 571,247 $ 529,155 $ 559,301 $ 521,564 Less: Average goodwill and core deposit intangible (96,074) (105,136) (98,260) (107,623) Average tangible common equity $ 475,173 $ 424,019 $ 461,041 $ 413,941 Efficiency Ratio – Non-GAAP Efficiency ratio – non-GAAP is computed by dividing i) noninterest expense less amortization of other intangible assets and credit card fraud losses by ii) the sum of taxable-equivalent net interest income and noninterest income less the sale and the fair value of held for sale assets, as applicable. Efficiency ratio – non-GAAP may not be comparable to similar non-GAAP measures used by other companies. 64 Table of Contents Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2025 2024 2025 2024 Noninterest expense $ 34,379 $ 34,114 $ 102,536 $ 104,311 Less: Amortization of other intangible assets (2,039) (2,336) (6,589) (7,482) Less: Credit card fraud losses — (337) — (4,660) Adjusted noninterest expense $ 32,340 $ 31,441 $ 95,947 $ 92,169 Efficiency ratio – non-GAAP 57.30 % 62.10 % 57.73 % 61.83 % Net interest income $ 48,655 $ 43,263 $ 141,936 $ 126,538 Add: Taxable-equivalent adjustment 83 82 244 242 Taxable-equivalent net interest income $ 48,738 $ 43,345 $ 142,180 $ 126,780 Noninterest income $ 7,701 $ 7,287 $ 24,021 $ 22,294 Adjusted noninterest income $ 7,701 $ 7,287 $ 24,021 $ 22,294 65 Table of Contents