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Item 1. Financial Statements

2026-08-03 compared with 2026-05-04 · 209 added, 154 removed, 920 unchanged (28% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

($ in thousands, except per share data) March 31, 2026 December 31, 2025

($ in thousands, except per share data) June 30, 2026 December 31, 2025

ASSETS (Unaudited)

3 unchanged sentences

Investment securities:

Available for sale, at fair value (amortized cost of $ 271,276 and $ 226,677 at March 31, 2026 and December 31, 2025, respectively)

Available for sale, at fair value (amortized cost of $ 295,747 and $ 226,677 at June 30, 2026 and December 31, 2025, respectively)

287,369 220,358

Held to maturity, net of allowance for credit losses of $ 81 and $ 99 (fair value of $ 356,390 and $ 378,116 at March 31, 2026 and December 31, 2025, respectively)

Held to maturity, net of allowance for credit losses of $ 76 and $ 99 (fair value of $ 328,696 and $ 378,116 at June 30, 2026 and December 31, 2025, respectively)

366,213 414,827

30 unchanged sentences

shares authorized 50,000,000 ;

shares issued and outstanding 33,451,063 and 33,413,503 at March 31, 2026 and December 31, 2025, respectively

shares issued and outstanding 33,416,336 and 33,413,503 at June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital 361,048 360,554

6 unchanged sentences

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

Three Months Ended March 31,

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

($ in thousands, except per share data) 2026 2025 2026 2025

41 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended March 31,

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

($ in thousands) 2026 2025 2026 2025

9 unchanged sentences

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited)

($ in thousands) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders’ Equity

($ in thousands, except per share data) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders’ Equity

Balances, December 31, 2025 $ 334 $ 360,554 $ 233,578 $ ( 4,593 ) $ 589,873

6 unchanged sentences

Balances, March 31, 2026 $ 335 $ 361,013 $ 246,636 $ ( 5,270 ) $ 602,714

Net income — — 18,865 — 18,865

Other comprehensive loss — — — ( 819 ) ( 819 )

Retirement of common stock ( 1 ) ( 1,059 ) — — ( 1,060 )

Common shares issued for employee stock purchase plan — 82 — — 82

Stock-based compensation — 1,012 — — 1,012

Cash dividends at $ 0.14 per common share

— — ( 4,719 ) — ( 4,719 )

Balances, June 30, 2026 $ 334 $ 361,048 $ 260,782 $ ( 6,089 ) $ 616,075

See accompanying notes to unaudited consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited) – Continued

($ in thousands) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss

Total Stockholders’ Equity

($ in thousands, except per share data) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders’ Equity

Balances, December 31, 2024 $ 333 $ 358,112 $ 190,166 $ ( 7,545 ) $ 541,066

5 unchanged sentences

Balances, March 31, 2025 $ 333 $ 358,572 $ 199,898 $ ( 6,333 ) $ 552,470

Net income — — 15,507 — 15,507

Other comprehensive income — — — 730 730

Stock-based compensation 1 491 — — 492

Cash dividends at $ 0.12 per common share

— — ( 4,005 ) — ( 4,005 )

Balances, June 30, 2025 $ 334 $ 359,063 $ 211,400 $ ( 5,603 ) $ 565,194

See accompanying notes to unaudited consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Three Months Ended March 31,

Six Months Ended June 30,

($ in thousands) 2026 2025

6 unchanged sentences

Net amortization of securities ( 201 ) 64

Amortization of and valuation adjustments on mortgage servicing rights 322 536

Amortization of debt issuance costs 139 61

Gain on mortgage loans held for sale ( 2,608 ) ( 2,291 )

Loss (gain) on other mortgage loan activity 238 ( 284 )

Gain on other mortgage loan activity ( 135 ) ( 938 )

Proceeds from sale of mortgage loans held for sale 95,830 82,070

2 unchanged sentences

Deferred income tax expense (benefit) ( 270 ) 156

Loss (gain) on sales and valuation adjustments of repossessed assets 127 94

Loss on valuation adjustments on mortgage servicing rights 159 330

Loss on sales and valuation adjustments of repossessed assets 621 123

Loss on disposal of fixed assets — 48

Loss (gain) on disposal of premises held for sale — 61

Loss (gain) on sales and valuation adjustments on other real estate owned 44 —

Loss on disposal of premises held for sale — 61

Loss on sales and valuation adjustments on other real estate owned 44 —

Fair value adjustment on equity securities 65 ( 106 )

10 unchanged sentences

Purchases of available for sale securities ( 95,397 ) ( 48,171 )

Purchases of held to maturity securities — ( 2,326 )

Purchases of equity securities ( 97 ) ( 90 )

2 unchanged sentences

Purchases of premises and equipment ( 1,654 ) ( 1,905 )

Proceeds from sales of other real estate owned 69 —

Proceeds from sales of repossessed assets 728 1,531

1 unchanged sentence

Proceeds from disposal of premises held for sale — 843

Net cash provided (used in) by investing activities $ 30,410 $ ( 18,271 )

Net cash provided by (used in) investing activities $ 7,252 $ ( 63,129 )

See accompanying notes to unaudited consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) – Continued

Three Months Ended March 31,

Six Months Ended June 30,

($ in thousands) 2026 2025

5 unchanged sentences

Common stock dividends paid ( 8,749 ) ( 8,037 )

Retirement of common stock ( 1,060 ) —

Issuance of common stock 172 —

5 unchanged sentences

Interest paid $ 50,478 $ 58,022

Income taxes paid 12,830 7,985

Recognition of lease liabilities arising from right-of-use assets — 912

Transfers from loans to repossessed assets 832 947

Transfer from loans held for sale to loans held for investment — 649

Unrealized (losses) gains on available for sale securities ( 2,059 ) 2,671

20 unchanged sentences

Recent Accounting Pronouncements

On January 2026, the Company adopted ASU 2025‑08, Financial Instruments—Credit Losses (Topic 326):

In January 2026, the Company adopted Accounting Standards Update (“ASU”) 2025‑08, Financial Instruments—Credit Losses (Topic 326):

Purchased Loans, which expanded the use of the gross‑up method beyond purchased credit‑deteriorated (“PCD”) assets to include purchased seasoned loans (“PSLs”).

1 unchanged sentence

Qualifying PSLs are recorded at acquisition at their purchase price plus an allowance for expected credit losses, with no corresponding provision for credit losses recognized at acquisition, thereby eliminating the Day 1 provision for credit losses previously required for non‑PCD acquired loans.

The early adoption of this guidance did not result in a material impact on the Bank’s/Company’s (consolidated) financial statements at the time of adoption;

The early adoption of this guidance did not result in a material impact on the Company’s (consolidated) financial statements at the time of adoption;

however, it is expected to reduce income statement volatility in future periods by eliminating Day 1 provisions for credit losses on qualifying acquired loans and improving comparability in acquisition accounting.

Note 2 – Investment Securities

The following tables provide information on the amortized cost and estimated fair values of investment securities as of March 31, 2026 and December 31, 2025.

The following tables provide information on the amortized cost and estimated fair values of investment securities as of June 30, 2026 and December 31, 2025.

($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value

Available for sale securities (1) :

March 31, 2026

June 30, 2026

Treasury and government agency securities $ 22,029 $ — $ 1,774 $ 20,255

10 unchanged sentences

____________________________________

(1) No available for sale (“AFS”) securities were sold during the three months ended March 31, 2026 and 2025.

(1) No available for sale (“AFS”) securities were sold during the three and six months ended June 30, 2026 and 2025.

(2) Other debt securities includes corporate and municipal bond obligations of state and political entities.

1 unchanged sentence

Held to maturity securities:

March 31, 2026

June 30, 2026

Treasury and government agency securities $ 74,767 $ — $ 4,384 $ 70,383 $ —

11 unchanged sentences

(1) Other debt securities includes corporate and municipal bond obligations of state and political entities.

Equity securities with aggregate fair values of $ 6.2 million as of both March 31, 2026 and December 31, 2025, respectively, are presented separately on the consolidated balance sheets.

The fair value adjustments recorded through earnings totaled gains of $ 8 thousand and $ 131 thousand for the three months ended March 31, 2026 and 2025, respectively.

Equity securities with aggregate fair values of $ 6.2 million as of both June 30, 2026 and December 31, 2025 are presented separately on the consolidated balance sheets.

The fair value adjustments recorded through earnings totaled a loss of $ 26 thousand and a gain of $ 19 thousand for the three months ended June 30, 2026 and 2025, respectively.

The fair value adjustments recorded through earnings totaled loss of $ 65 thousand and a gain of $ 106 thousand for the six months ended June 30, 2026 and 2025, respectively.

The following table summarizes the activity in the allowance for credit losses (“ACL”) on held to maturity (“HTM”) securities for the periods presented.

Three Months Ended

($ in thousands) March 31, 2026 March 31, 2025

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

($ in thousands) 2026 2025 2026 2025

Balance, beginning of period $ 81 $ 178 $ 99 $ 203

1 unchanged sentence

Balance, end of period $ 76 $ 199 $ 76 $ 199

A reversal of the provision for credit losses of $ 18 thousand and $ 25 thousand was recorded on HTM corporate and municipal bonds for the three months ended March 31, 2026 and 2025, respectively.

The following tables provide information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position as of March 31, 2026 and December 31, 2025.

A reversal of the provision for credit losses of $ 5 thousand and an additional allowance of $ 21 thousand was recorded on HTM corporate and municipal bonds for the three months ended June 30, 2026 and 2025, respectively.

A reversal of the provision for credit losses of $ 23 thousand and $ 4 thousand was recorded on HTM corporate and municipal bonds for the six months ended June 30, 2026 and 2025, respectively.

Less than 12 Months More than 12 Months Total

($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses

March 31, 2026

June 30, 2026

Available for sale securities:

1 unchanged sentence

Mortgage-backed securities 136,596 2,018 61,412 5,061 198,008 7,079

Other debt securities 13,535 215 — — 13,535 215

Total $ 152,604 $ 2,234 $ 79,138 $ 6,834 $ 231,742 $ 9,068

6 unchanged sentences

Total $ 102,954 $ 531 $ 65,683 $ 6,567 $ 168,637 $ 7,098

There were 134 AFS debt securities with a fair value below the amortized cost basis, with unrealized losses totaling $ 7.9 million as of March 31, 2026.

The Company concluded that a credit loss does not exist in its AFS securities portfolio as of March 31, 2026, and no impairment loss has been recognized based on the fact that (1) changes in fair value were primarily caused by fluctuations in interest rates, (2) securities with unrealized losses had generally high credit quality, (3) the Company intends to hold these investments in debt securities to maturity and it is more likely than not the Company will not be required to sell these investments before a recovery of its investment, and (4) issuers have continued to make timely payments of principal and interest.

There were 143 AFS debt securities with a fair value below the amortized cost basis, with unrealized losses totaling $ 9.1 million as of June 30, 2026.

The Company concluded that a credit loss did not exist in its AFS securities portfolio as of June 30, 2026, and no impairment loss has been recognized based on the fact that (1) changes in fair value were primarily caused by fluctuations in interest rates, (2) securities with unrealized losses had generally high credit quality, (3) the Company intends to hold these investments in debt securities to maturity and it is more likely than not the Company will not be required to sell these investments before a recovery of its investment, and (4) issuers have continued to make timely payments of principal and interest.

Additionally, the Company’s mortgage-backed securities are issued by either U.S.

3 unchanged sentences

government, that investors in such mortgage-backed securities will receive timely principal and interest payments.

All HTM and AFS securities were current with no securities past due or on nonaccrual as of March 31, 2026 and December 31, 2025.

All AFS and HTM securities were current with no securities past due or on nonaccrual as of June 30, 2026 and December 31, 2025.

There were 143 AFS and 164 HTM securities in an unrealized loss position at June 30, 2026.

Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost bases, which may be at maturity for debt securities, the Company considers the unrealized losses to be temporary.

There were 134 AFS and 167 HTM securities in an unrealized loss position at March 31, 2026.

There were 122 AFS and 169 HTM securities in an unrealized loss position at December 31, 2025.

Net unrealized losses with respect to the AFS securities totaled $ 7.3 million and $ 6.3 million as of March 31, 2026 and December 31, 2025, respectively.

The following table provides information on the amortized cost and estimated fair values of investment securities by contractual maturity date at March 31, 2026.

Net unrealized losses with respect to the AFS securities totaled $ 8.4 million and $ 6.3 million as of June 30, 2026 and December 31, 2025, respectively.

The following table provides information on the amortized cost and estimated fair values of investment securities by contractual maturity date at June 30, 2026.

Available for Sale Held to Maturity

10 unchanged sentences

The Company has securities that have been pledged as collateral for obligations to federal, state and local government agencies, and other purposes as required or permitted by law, or sold under agreements to repurchase.

At March 31, 2026, the aggregate carrying value of AFS and HTM pledged securities was $ 71.9 million and $ 220.6 million, respectively.

At June 30, 2026, the aggregate carrying value of AFS and HTM pledged securities was $ 87.7 million and $ 215.4 million, respectively.

The comparable amounts for December 31, 2025 were $ 69.4 million and $ 218.6 million, respectively.

The following table sets forth the amortized cost and estimated fair values of securities that have been pledged as collateral for obligations to federal, state and local government agencies, and other purposes as required or permitted by law, or sold under agreements to repurchase at March 31, 2026 and December 31, 2025.

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

($ in thousands) Amortized Cost Fair Value Amortized Cost Fair Value

1 unchanged sentence

Pledged held to maturity securities 215,410 191,781 218,556 197,146

There were no obligations of any issuer exceeding 10% of stockholders’ equity at March 31, 2026 or December 31, 2025.

There were no obligations of any issuer exceeding 10% of stockholders’ equity at June 30, 2026 or December 31, 2025.

Note 3 – Loans and Allowance for Credit Losses

The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables.

The measurement of expected credit losses under the current expected credit loss methodology promulgated by ASU 2016-13, Financial Instruments – Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments , is applicable to financial assets measured at amortized cost, including loan receivables.

For further discussion on the most significant accounting policies that the Company follows, see Note 1 – “Summary of Significant Accounting Policies” in the “Notes to Consolidated Financial Statements” included in Part II, Item 8 of the 2025 Annual Report.

The following table provides information about the principal classes of the loan portfolio at March 31, 2026 and December 31, 2025.

($ in thousands) March 31, 2026 % of Total Loans December 31, 2025 % of Total Loans

The following table provides information about the principal classes of the loan portfolio at June 30, 2026 and December 31, 2025.

($ in thousands) June 30, 2026 % of Total Loans December 31, 2025 % of Total Loans

Commercial real estate $ 2,603,014 53.37 % $ 2,643,996 53.95 %

8 unchanged sentences

Loans are stated at their principal amount outstanding, net of any purchase premiums or discounts, deferred fees, and costs.

Included in loans were deferred costs, net of fees, of $ 3.0 million and $ 3.1 million at March 31, 2026 and December 31, 2025, respectively.

At March 31, 2026 and December 31, 2025, loans included $ 1.42 billion and $ 1.49 billion, respectively, of aggregate loans that were acquired as part of the acquisitions of Severn Bancorp, Inc.

Included in loans were deferred costs, net of fees, of $ 3.1 million at both June 30, 2026 and December 31, 2025.

At June 30, 2026 and December 31, 2025, loans included $ 1.34 billion and $ 1.49 billion, respectively, of aggregate loans that were acquired as part of the acquisitions of Severn Bancorp, Inc.

(“Severn”) and The Community Financial Corporation (“TCFC”).

These balances are

presented net of the related aggregate discounts, which totaled $ 73.9 million and $ 78.2 million at March 31, 2026 and December 31, 2025, respectively.

The following tables provide information on the amortized cost basis of nonaccrual loans by loan class as of March 31, 2026 and December 31, 2025.

These balances are presented net of the related aggregate discounts, which totaled $ 70.0 million and $ 78.2 million at June 30, 2026 and December 31, 2025, respectively.

The following tables provide information on the amortized cost basis of nonaccrual loans by loan class as of June 30, 2026 and December 31, 2025.

($ in thousands) Nonaccrual With No Allowance For Credit Losses Nonaccrual With An Allowance For Credit Losses Total Nonaccrual Loans

March 31, 2026

June 30, 2026

Nonaccrual loans:

19 unchanged sentences

($ in thousands) Nonaccrual Delinquent Loans Nonaccrual Current Loans Total Nonaccrual Loans

March 31, 2026

June 30, 2026

Nonaccrual loans:

21 unchanged sentences

Credit card loans are classified as performing and are typically charged-off no later than 180 days or when, in the opinion of management, the collection of principal or interest is considered doubtful.

As of March 31, 2026, there were five credit cards that were evaluated based on economic conditions specific to the loans or borrowers, and were downgraded to substandard and nonperforming.

Loans subject to risk rating are graded on a scale of one to ten.

As of June 30, 2026, there were two credit cards that were evaluated based on economic conditions specific to the loans or borrowers, and were downgraded to substandard and nonperforming.

Loans subject to risk rating are graded on a scale of 1 to 10.

Ratings 1 through 6 – Pass – Ratings 1 through 6 have asset risks ranging from excellent-low to adequate.

21 unchanged sentences

Rating 10 – Loss – Loss assets are uncollectible or of little value.

The following table provides information on loan risk ratings as of March 31, 2026 and gross charge-offs during the three months ended March 31, 2026.

The following table provides information on loan risk ratings as of June 30, 2026 and gross charge-offs during the six months ended June 30, 2026.

Term Loans by Origination Year Revolving

1 unchanged sentence

Term Loans Total

($ in thousands) Prior 2022 2023 2024 2025 2026

March 31, 2026

($ in thousands) Prior to 2022 2022 2023 2024 2025 2026

June 30, 2026

Commercial real estate

11 unchanged sentences

Pass $ 31,094 $ 6,767 $ 15,864 $ 72,192 $ 146,213 $ 47,513 $ 17,271 $ 469 $ 337,383

Special mentions — — — — — — — — —

Substandard 155 — — — 241 — — — 396

7 unchanged sentences

Pass $ 45,221 $ 78,112 $ 32,361 $ 24,531 $ 39,041 $ 21,260 $ 737 $ — $ 241,263

Special mention — — — — — — — — —

Substandard 3 52 377 — 56 — — — 488

6 unchanged sentences

Total gross charge-offs $ ( 747 ) $ ( 417 ) $ ( 161 ) $ ( 43 ) $ ( 19 ) $ — $ ( 21 ) $ — $ ( 1,408 )

The following table presents the amortized cost of credit card loans based on performing status and gross charge-offs during the three months ended March 31, 2026.

The following table presents the amortized cost of credit card loans based on performing status and gross charge-offs during the six months ended June 30, 2026.

Nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing.

Term Loans by Origination Year Revolving Loans Revolving Converted to Term Loans Total

($ in thousands) Prior 2022 2023 2024 2025 2026

March 31, 2026

($ in thousands) Prior to 2022 2022 2023 2024 2025 2026

June 30, 2026

Performing $ — $ — $ — $ — $ — $ — $ 4,074 $ — $ 4,074

24 unchanged sentences

Pass $ 27,094 $ 7,238 $ 7,047 $ 28,868 $ 108,885 $ 151,738 $ 13,070 $ 632 $ 344,572

Special mentions — — — — — — — — —

Substandard 88 — — — — 243 — — 331

33 unchanged sentences

investment $ 1,362,664 $ 663,013 $ 987,622 $ 543,191 $ 457,635 $ 616,747 $ 238,924 $ 30,506 $ 4,900,302

The following tables provide information on the aging of the Company’s loan portfolio as of March 31, 2026 and December 31, 2025.

The following tables provide information on the aging of the Company’s loan portfolio as of June 30, 2026 and December 31, 2025.

($ in thousands) 30‑59 Days Past Due 60‑89 Days Past Due 90 Days Past Due and Still Accruing 30-89 Days Past Due and Not Accruing 90 Days Past Due and Not Accruing Total Past Due Current Accrual Loans Current Nonaccrual Loans Total

March 31, 2026

June 30, 2026

Commercial real estate $ 605 $ 334 $ — $ 1,964 $ 1,473 $ 4,376 $ 2,550,980 $ 47,658 $ 2,603,014

16 unchanged sentences

Percent of total loans 0.08 % 0.02 % 0.01 % 0.03 % 0.12 % 0.26 % 99.08 % 0.66 % 100.00 %

The following tables provide a summary of the activity in the ACL allocated by loan class for the three months ended March 31, 2026 and 2025.

The following tables provide a summary of the activity in the ACL allocated by loan class for the three and six months ended June 30, 2026 and 2025.

Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses from other loan classes.

($ in thousands) Beginning Balance Gross Charge-offs Recoveries Provisions (Reversal of Provisions) Ending Balance

Three Months Ended June 30, 2026

Commercial real estate $ 21,672 $ ( 64 ) $ — $ ( 828 ) $ 20,780

Residential real estate 22,993 ( 1 ) 8 531 23,531

Construction 4,806 — 1 1,346 6,153

Commercial 3,497 — 22 ( 142 ) 3,377

Consumer 5,415 ( 167 ) 93 ( 513 ) 4,828

Credit cards 98 ( 35 ) 20 ( 15 ) 68

$ 58,481 $ ( 267 ) $ 144 $ 379 $ 58,737

($ in thousands) Beginning Balance Gross Charge-offs Recoveries Provisions (Reversal of Provisions) Ending

Three Months Ended June 30, 2025

Commercial real estate $ 21,988 $ — $ — $ ( 1,809 ) $ 20,179

Residential real estate 22,394 — 2 807 23,203

Construction 3,842 — — 1,963 5,805

Commercial 2,854 — 81 ( 65 ) 2,870

Consumer 6,574 ( 598 ) 55 157 6,188

Credit cards 390 ( 189 ) — 37 238

$ 58,042 $ ( 787 ) $ 138 $ 1,090 $ 58,483

($ in thousands) Beginning

Balance Charge-offs Recoveries Provisions Ending

Three Months Ended March 31, 2026

Balance Gross Charge-offs Recoveries Provisions (Reversal of Provisions) Ending

Six Months Ended June 30, 2026

Commercial real estate $ 21,387 $ ( 64 ) $ — $ ( 543 ) $ 20,780

4 unchanged sentences

Credit cards 199 ( 115 ) 23 ( 39 ) 68

Total $ 58,836 $ ( 1,256 ) $ 409 $ 492 $ 58,481

($ in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending

Three Months Ended March 31, 2025

$ 58,836 $ ( 1,523 ) $ 553 $ 871 $ 58,737

($ in thousands) Beginning Balance Gross Charge-offs Recoveries Provisions (Reversal of Provisions) Ending

Six Months Ended June 30, 2025

Commercial real estate $ 22,846 $ — $ 78 $ ( 2,745 ) $ 20,179

4 unchanged sentences

Credit cards 407 ( 431 ) — 262 238

Total $ 57,910 $ ( 726 ) $ 172 $ 686 $ 58,042

The following tables present the amortized cost basis of collateral-dependent loans by loan portfolio segment as of March 31, 2026 and December 31, 2025.

March 31, 2026

$ 57,910 $ ( 1,513 ) $ 310 $ 1,776 $ 58,483

____________________________________

(1) Excludes amounts pertaining to unfunded commitments.

The following tables present the amortized cost basis of collateral-dependent loans by loan portfolio segment as of June 30, 2026 and December 31, 2025.

June 30, 2026

($ in thousands) Real Estate Collateral Other Collateral Total

17 unchanged sentences

Loan Modifications to Borrowers Experiencing Financial Difficulty

Loan modifications to borrowers experiencing financial difficulty may include interest rate reduction, principal or interest forgiveness, forbearance, term extensions and other combinations of actions intended to minimize economic loss and avoid foreclosure or repossession of collateral.

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

As of March 31, 2026, of the loans with borrowers experiencing financial difficulty that were modified during the preceding 12 months, $ 5.3 million and $ 164 thousand were classified as current accrual and current nonaccrual, respectively.

Loan modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearance, term extensions and other combinations of actions intended to minimize economic loss and avoid foreclosure or repossession of collateral.

During the three and six months ended June 30, 2026, no loan modifications were made to borrowers experiencing financial difficulty.

The following table presents details of portfolio loans that were modified during the three and six months ended June 30, 2025, by loan category.

($ in thousands) Quantity of Loans Modified Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Payment Delay and Term Extension Term Extension and Interest Rate Reduction Total % of Total Portfolio Segment

Commercial real estate 6 $ — $ — $ 1,351 $ 5,242 $ — $ — $ 6,593 0.25 %

Commercial 3 — — 72 116 — — 188 0.08

Total 9 $ — $ — $ 1,423 $ 5,358 $ — $ — $ 6,781 0.14

As of June 30, 2026, of the loans with borrowers experiencing financial difficulty that were modified during the preceding 12 months, $ 140 thousand and zero were classified as current accrual and current nonaccrual, respectively.

As of December 31, 2025, of the loans with borrowers experiencing financial difficulty that were modified during the preceding 12 months, $ 5.3 million and $ 170 thousand were classified as current accrual and current nonaccrual, respectively.

During the three months ended March 31, 2026 and 2025, there were no defaults on loan modifications made to borrowers experiencing financial difficulty in the preceding 12 months.

During the three and six months ended June 30, 2026 and 2025, there were no defaults on loan modifications made to borrowers experiencing financial difficulty in the preceding 12 months.

Foreclosure Proceedings

The Company had $ 124 thousand and $ 124 thousand of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure as of March 31, 2026 and December 31, 2025, respectively.

The Company had $ 151 thousand and $ 95 thousand of commercial real estate loans collateralized by commercial real estate that were in the process of foreclosure as of March 31, 2026 and December 31, 2025, respectively.

The Company had $ 64 thousand and $ 124 thousand of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure as of June 30, 2026 and December 31, 2025, respectively.

The Company had $ 151 thousand and $ 95 thousand of commercial real estate loans collateralized by commercial real estate that were in the process of foreclosure as of June 30, 2026 and December 31, 2025, respectively.

Other Real Estate Owned (“OREO”) and Repossessed Assets

1 unchanged sentence

Subsequently, foreclosed assets are carried at the lower of carrying value or fair value.

The Company had OREO and repossessed asset balances of $ 69 thousand and $ 3.3 million as of March 31, 2026 and $ 113 thousand and $ 2.9 million as of December 31, 2025, respectively.

The Company had OREO and repossessed asset balances of zero and $ 2.4 million as of June 30, 2026, respectively, and $ 113 thousand and $ 2.9 million as of December 31, 2025, respectively.

Mortgage Servicing Rights (“MSRs”)

2 unchanged sentences

Servicing rights are evaluated for impairment based upon fair value of the rights as compared to carrying amount.

No impairments of MSRs were recognized for the three months ended March 31, 2026 or 2025.

The Company recognized net servicing income of $ 139 thousand and a net servicing loss of $ 65 thousand for the three months ended March 31, 2026 and 2025, respectively.

At March 31, 2026, the Company was servicing $ 334.0 million in loans for the Federal National Mortgage Association and $ 101.8 million in loans for Federal Home Loan Mortgage Corporation.

The following table presents activity in MSRs for the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

No impairments of MSRs were recognized for the three and six months ended June 30, 2026 and 2025, respectively.

The Company recognized net servicing income of $ 122 thousand and $ 168 thousand during the three months ended June 30, 2026 and 2025, respectively, and net servicing income of $ 261 thousand and $ 103 thousand for the six months ended June 30, 2026 and 2025, respectively.

At June 30, 2026, the Company was servicing $ 324.2 million in loans for the Federal National Mortgage Association and $ 98.7 million in loans for Federal Home Loan Mortgage Corporation.

The following table presents activity in MSRs for the three and six months ended June 30, 2026 and 2025.

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

($ in thousands) 2026 2025 2026 2025

4 unchanged sentences

Ending balance $ 4,820 $ 5,396 $ 4,820 $ 5,396

The fair value of MSRs were determined using discount rates ranging from 9.0 % to 9.0 % at March 31, 2026 and 9.0 % to 10.0 % at December 31, 2025.

The valuation on MSRs was not material at March 31, 2026 and December 31, 2025.

Depending on the stratification of the specific mortgage servicing right, prepayment speeds ranged from 5.88 % to 8.60 % for the three months ended March 31, 2026.

The associated weighted-average default rate was 0.20 % for the three months ended March 31, 2026.

The fair value of MSRs was determined using discount rates ranging from 9.0 % to 9.0 % at June 30, 2026 and 9.0 % to 10.0 % at December 31, 2025.

The valuation on MSRs was not material at June 30, 2026 and December 31, 2025.

Depending on the stratification of the specific mortgage servicing right, prepayment speeds ranged from 5.72 % to 8.00 % and 5.84 % to 8.48 % for the three months ended June 30, 2026 and 2025, respectively, and 5.72 % to 8.60 % and 5.69 % to 8.22 % for the six months ended June 30, 2026 and 2025, respectively.

The associated weighted-average default rates were 0.21 % and 0.14 % for the three months ended June 30, 2026 and 2025, respectively, and 0.21 % and 0.14 % for the six months ended June 30, 2026 and 2025, respectively.

Note 4 – Goodwill and Other Intangible Assets

The following tables provide information on the significant components of goodwill and other acquired intangible assets as of March 31, 2026 and December 31, 2025.

March 31, 2026

The following tables provide information on the significant components of goodwill and other acquired intangible assets as of June 30, 2026 and December 31, 2025.

June 30, 2026

($ in thousands) Goodwill Core Deposit Intangible

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Net carrying amount $ 63,266 $ 29,722

The aggregate amortization expense for the core deposit intangible was $ 2.0 million and $ 2.3 million for the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, the estimated future remaining amortization for core deposit intangibles within the years ending December 31 is as follows:

The aggregate amortization expense for the core deposit intangible was $ 2.0 million and $ 2.3 million for the three months ended June 30, 2026 and 2025, respectively, and was $ 4.0 million and $ 4.5 million for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, the estimated future remaining amortization for core deposit intangibles within the years ending December 31 is as follows:

($ in thousands) Amortization Expense

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The following tables present information about the Company’s leases as of and for the periods presented.

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

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

Right-of-use assets $ 9,691 $ 10,523

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Remaining lease term – max 15.18 years 15.68 years

Three Months Ended March 31,

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

($ in thousands) 2026 2025 2026 2025

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Cash paid for amounts included in the measurement of lease liabilities $ 512 $ 479 $ 1,021 $ 946

The following table presents a maturity analysis of operating lease liabilities and a reconciliation of the undiscounted cash flows to total operating lease liabilities at March 31, 2026.

($ in thousands) March 31, 2026

The following table presents a maturity analysis of operating lease liabilities and a reconciliation of the undiscounted cash flows to total operating lease liabilities at June 30, 2026.

($ in thousands) June 30, 2026

Thereafter 4,581

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Lease liabilities $ 10,199

Total gross rental income was $ 306 thousand and $ 335 thousand for the three months ended March 31, 2026 and 2025, respectively.

Total gross rental income was $ 275 thousand and $ 280 thousand for the three months ended June 30, 2026 and 2025, respectively, and $ 581 thousand and $ 615 thousand for the six months ended June 30, 2026 and 2025, respectively.

Note 6 – Deposits

Deposits consist of the following categories as of the dates indicated:

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

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

Balance % of Total Deposits Balance % of Total Deposits

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Total deposits $ 5,399,750 100.00 % $ 5,533,864 100.00 %

The following table provides information on the approximate maturities of total time deposits at March 31, 2026.

($ in thousands) March 31, 2026

The following table provides information on the approximate maturities of total time deposits at June 30, 2026.

($ in thousands) June 30, 2026

Within one year $ 1,067,447

1 unchanged sentence

Year 3 13,118

Thereafter 113

Total $ 1,247,973

The approximate amount of certificates of deposit that exceeded the FDIC insurance limit of $250,000 or more was $ 406.7 million and $ 403.5 million at March 31, 2026 and December 31, 2025, respectively.

The approximate amount of certificates of deposit that exceeded the FDIC insurance limit of $250,000 or more was $ 398.4 million and $ 403.5 million at June 30, 2026 and December 31, 2025, respectively.

Note 7 – Borrowings

The following table summarizes certain information of the Company’s long-term debt as of March 31, 2026 and December 31, 2025.

($ in thousands) March 31, 2026 December 31, 2025 Issue Date Stated Maturity Date Earliest Call Date Interest Rate

The following table summarizes certain information of the Company’s long-term debt as of June 30, 2026 and December 31, 2025.

($ in thousands) June 30, 2026 December 31, 2025 Issue Date Stated Maturity Date Earliest Call Date Interest Rate

Subordinated Debentures due November 2035 60,000 60,000 2025 2035 2030 6.25 % through November 2030, 3-month SOFR + 2.88 % thereafter

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Total long-term debt $ 89,152 $ 89,061

At March 31, 2026, subordinated debentures consisted of $ 60.0 million of long-term debt issued by the Company in November 2025.

As of March 31, 2026, the recorded balance of subordinated debt issued by the Company, net of unamortized issuance costs and fair value discounts, was $ 58.8 million.

At June 30, 2026, subordinated debentures consisted of $ 60.0 million of long-term debt issued by the Company in November 2025.

As of June 30, 2026, the recorded balance of subordinated debt issued by the Company, net of unamortized issuance costs, was $ 58.8 million.

The Company has the option to redeem the subordinated notes in part or whole as of November 15, 2030.

As of March 31, 2026, 100 % of the subordinated debt was considered Tier 2 capital under current regulatory guidelines.

As of June 30, 2026, 100 % of the subordinated debt was considered Tier 2 capital under current regulatory guidelines.

The Company assumed trust preferred securities in the aggregate of $ 33.0 million as a result of the merger with TCFC in 2023 and the acquisition of Severn in 2021.

Trust preferred securities consisted of $ 20.6 million issued by Severn Capital Trust I, $ 7.2 million issued by Tri-County Capital Trust I and $ 5.2 million issued by Tri-County Capital Trust II.

The recorded balance of the junior subordinated debt securities of Severn Capital Trust I at March 31, 2026 was $ 19.0 million, net of the unamortized fair value adjustment of $ 1.6 million.

At March 31, 2026, the junior subordinated debt securities of Tri-County Capital Trust I and Tri-County Capital Trust II had a recorded balance of $ 6.7 million and $ 4.5 million, respectively, which are presented net of the unamortized fair value adjustments of $ 489 thousand and $ 644 thousand, respectively.

As of March 31, 2026, the entire amount of trust preferred securities debt is considered Tier 2 capital under current regulatory guidelines.

The recorded balance of the junior subordinated debt securities of Severn Capital Trust I at June 30, 2026 was $ 19.1 million, net of the unamortized fair value adjustment of $ 1.6 million.

At June 30, 2026, the junior subordinated debt securities of Tri-County Capital Trust I and Tri-County Capital Trust II had a recorded balance of $ 6.7 million and $ 4.5 million, respectively, which are presented net of the unamortized fair value adjustments of $ 474 thousand and $ 626 thousand, respectively.

As of June 30, 2026, the entire amount of trust preferred securities debt is considered Tier 2 capital under current regulatory guidelines.

The Company may periodically borrow from a correspondent federal funds line of credit arrangement, under a secured reverse repurchase agreement, or from the Federal Home Loan Bank (“FHLB”) to meet short-term liquidity needs.

The Company had no outstanding borrowings from the FHLB at March 31, 2026 and December 31, 2025.

The Company did not have any correspondent federal fund lines at March 31, 2026 and December 31, 2025.

The Company had no outstanding borrowings from the FHLB at June 30, 2026 and December 31, 2025.

The Company did not have any borrowings against correspondent federal fund lines at June 30, 2026 and December 31, 2025.

Further information on these obligations is provided in the Company’s 2025 A nnual Report.

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These assets and liabilities are included in the consolidated balance sheets in other assets and accrued expenses and other liabilities, respectively.

The following table provides information pertaining to the carrying amounts of the Company’s derivative financial instruments as of March 31, 2026 and December 31, 2025.

March 31, 2026 December 31, 2025

The following table provides information pertaining to the carrying amounts of the Company’s derivative financial instruments as of June 30, 2026 and December 31, 2025.

June 30, 2026 December 31, 2025

($ in thousands) Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value

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Liability – IRLCs

1,366 8 193 1

Liability – TBA securities

33,250 115 20,150 59

With respect to interest rate products, the Company recognized gains of $ 373 thousand and $ 654 thousand for the three months ended June 30, 2026 and 2025, respectively, and gains of $ 135 thousand and $ 938 thousand for the six months ended June 30, 2026 and 2025, respectively.

Note 9 – Accumulated Other Comprehensive Loss

The Company records unrealized holding gains (losses), net of tax, on AFS securities as accumulated other comprehensive income (loss), a separate component of stockholders’ equity.

The following table provides information on the changes in the component of accumulated other comprehensive income (loss) for the three months ended March 31, 2026 and 2025.

Three Months Ended

($ in thousands) March 31, 2026 March 31, 2025

The following table provides information on the changes in the component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2026 and 2025.

Three Months Ended Six Months Ended

($ in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Beginning of period $ ( 5,270 ) $ ( 6,333 ) $ ( 4,593 ) $ ( 7,545 )

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Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain amounts and ratios (set forth in the table below) of common equity Tier 1 (“CET1”), Tier 1 and total capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (leverage ratio).

As of March 31, 2026 and December 31, 2025, management believes that the Company and the Bank met all capital adequacy requirements to which they were subject.

As of March 31, 2026, the most recent notification from the Bank’s primary regulator categorized the Bank, as “well-capitalized” under the regulatory framework for PCA.

As of June 30, 2026 and December 31, 2025, management believes that the Company and the Bank met all capital adequacy requirements to which they were subject.

As of June 30, 2026, the most recent notification from the Bank’s primary regulator categorized the Bank, as “well-capitalized” under the regulatory framework for PCA.

There are no conditions or events since that notification that management believes would change the Bank’s classification.

To be categorized as “well-capitalized,” the Bank must maintain minimum CET1, Tier 1 risk-based and total risk-based capital ratios, and Tier 1 leverage ratios, which are outlined in the table below.

The following table presents the capital amounts and ratios for the Company and the Bank as of March 31, 2026 and December 31, 2025.

March 31, 2026

The following tables present the capital amounts and ratios for the Company and the Bank as of June 30, 2026 and December 31, 2025.

June 30, 2026

Amount Regulatory Minimum Ratio + Capital Conservation Buffer To Be Well-Capitalized Under PCA Regulation (1)

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The PCA well-capitalized threshold is defined as 5.00 %.

As of March 31, 2026, both the Company and the Bank satisfied the capital conservation buffer requirements applicable to them.

The lowest capital buffer ratio at the Company was the Tier 1 Capital to RWA, which was 5.60 % above the minimum capital conservation buffer ratio requirement, and the lowest capital buffer ratio at the Bank was the Total Capital to RWA, which was 5.43 % above the minimum capital conservation buffer ratio requirement.

As of June 30, 2026, both the Company and the Bank satisfied the capital conservation buffer requirements applicable to them.

The lowest capital buffer ratio at the Company was the Tier 1 Capital to RWA, which was 5.71 % above the minimum capital ratio requirement, and the lowest capital buffer ratio at the Bank was the Total Capital to RWA, which was 5.56 % above the minimum capital ratio requirement.

The Company is a separate legal entity from the Bank and must provide for its own liquidity.

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The amount of dividends that the Bank may declare and pay to the Company in any calendar year, without the receipt of prior approval from the OCC, cannot exceed net income for that year to date plus retained net income (as defined) for the preceding two calendar years.

As of March 31, 2026, the Bank could pay dividends to the Company to the extent of its current period earnings plus the earnings of the preceding two years, so long as it maintained required capital ratios.

As of June 30, 2026, the Bank could pay dividends to the Company to the extent of its current period earnings plus the earnings of the preceding two years, so long as it maintained required capital ratios.

Note 11 – Fair Value Measurements

4 unchanged sentences

Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as collateral-dependent loans, repossessed assets and OREO (foreclosed assets).

These non-recurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets.

These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets.

Under fair value accounting guidance, assets and liabilities are grouped at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine their fair values.

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Fair value is adjusted for the estimated probability of the loan closing with the borrower (Level 3).

March 31, 2026

June 30, 2026

($ in thousands) Fair Value Valuation Technique Unobservable Input Rate

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Average pull through rate 98 %

The following table presents activity in the IRLCs – net asset for the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

The following table presents activity in the IRLCs – net asset for the three and six months ended June 30, 2026 and 2025.

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

($ in thousands) 2026 2025 2026 2025

5 unchanged sentences

On a regular basis, the Company allocates disbursed loans to mandatory commitments with government-sponsored enterprises and private investors delivering the loans within 120 days of origination to maximize interest earnings.

For a small percentage of business, the Company enters into best efforts forward sales commitments with investors at the time it makes an IRLC to a borrower.

For a small percentage of businesses, the Company enters into best efforts forward sales commitments with investors at the time it makes an IRLC to a borrower.

Once a loan has been closed and funded, the best efforts commitments convert to mandatory forward sales commitments.

6 unchanged sentences

Additionally market assumptions such as spec pool payups may result in a significantly higher fair value measurement at time of loan allocation to specific trades.

The following tables present the recorded amounts of assets and liabilities measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025.

No assets or liabilities were transferred from one hierarchy level to another during the three months ended March 31, 2026 or 2025.

March 31, 2026

The following tables present the recorded amounts of assets and liabilities measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025.

No assets or liabilities were transferred from one hierarchy level to another during the three and six months ended June 30, 2026 and 2025.

June 30, 2026

($ in thousands) Fair Value Quoted Prices

11 unchanged sentences

Total assets at fair value $ 324,674 $ — $ 324,456 $ 218

IRLCs $ 8 $ — $ — $ 8

TBA forward trades 115 — 115 —

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Total liabilities at fair value $ 60 $ — $ 59 $ 1

Assets Measured at Fair Value on a Non-recurring Basis

Assets Measured at Fair Value on a Nonrecurring Basis

Individually Evaluated Collateral-Dependent Loans

6 unchanged sentences

The estimated fair value for foreclosed assets included in Level 3 is determined by independent market-based appraisals and other available market information, less costs to sell, that may be reduced further based on market expectations or an executed sales agreement.

If the fair value of the collateral deteriorates subsequent to the initial recognition, the Company records the foreclosed asset as a non-recurring Level 3 adjustment.

If the fair value of the collateral deteriorates subsequent to the initial recognition, the Company records the foreclosed asset as a nonrecurring Level 3 adjustment.

Valuation techniques are consistent with those techniques applied in prior periods.

Repossessed Assets

All repossessed assets are recorded at the lower of the estimated fair value of the properties, less expected selling costs, or the carrying amount of the defaulted loans.

From time to time, non-recurring fair value adjustments are recorded to reflect partial write-downs based on the current appraised value of an asset.

All repossessed assets are recorded at the lower of the estimated fair value of the assets, less expected selling costs, or the carrying amount of the defaulted loans.

From time to time, nonrecurring fair value adjustments are recorded to reflect partial write-downs based on the current appraised value of an asset.

The Company considers any valuation inputs related to repossessed assets to be Level 3 inputs.

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Fair value adjustments for these assets are recorded in other noninterest expense in the consolidated statements of income.

The following tables set forth the Company’s assets subject to fair value adjustments (impairment) on a non-recurring basis as of March 31, 2026 and December 31, 2025 that are valued at the lower of cost or market.

The following tables set forth the Company’s assets subject to fair value adjustments (impairment) on a nonrecurring basis as of June 30, 2026 and December 31, 2025 that are valued at the lower of cost or market.

The Company had no other assets subject to Level 3 fair value measurements as of June 30, 2026 and December 31, 2025.

Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

3 unchanged sentences

Range Weighted-Average

March 31, 2026

Non-recurring measurements:

June 30, 2026

Nonrecurring measurements:

Individually-evaluated collateral dependent loans:

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Liquidation expense 44 % - 74 %

Other real estate owned 69 Appraisal of collateral Appraisal adjustment N/A 0 %

Repossessed assets 2,362 Appraisal of collateral Appraisal adjustment N/A 21 %

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Certain items are specifically excluded from the financial instrument fair value disclosure requirements, including the Company’s common stock, OREO, repossessed assets, premises and equipment and other assets and liabilities.

The following tables present the carrying amounts and estimated fair values of the Company’s financial instruments as of March 31, 2026 and December 31, 2025.

Fair values for March 31, 2026 and December 31, 2025 were estimated using an exit price notion.

The following tables present the carrying amounts and estimated fair values of the Company’s financial instruments as of June 30, 2026 and December 31, 2025.

Fair values for June 30, 2026 and December 31, 2025 were estimated using an exit price notion.

Carrying Amount Fair Value Fair Value Measurements

($ in thousands) Level 1 Level 2 Level 3

March 31, 2026

June 30, 2026

Cash and cash equivalents $ 257,670 $ 257,670 $ 257,670 $ — $ —

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Accrued interest payable 2,568 2,568 — 2,568 —

IRLCs 8 8 — — 8

Carrying Amount Fair Value Fair Value Measurements

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Commitments to make loans are generally made for a period of 90 days or less.

The following table provides information on commitments outstanding as of March 31, 2026 and December 31, 2025.

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

The following table provides information on commitments outstanding as of June 30, 2026 and December 31, 2025.

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

Commitments to extend credit

7 unchanged sentences

Total commitments outstanding $ 799,663 $ 737,775

The Company had a reserve for off-balance sheet credit exposures of $ 1.7 million and $ 2.0 million as of March 31, 2026 and December 31, 2025, respectively.

The Company had a reserve for off-balance sheet credit exposures of $ 2.2 million and $ 2.0 million as of June 30, 2026 and December 31, 2025, respectively.

The reserve was estimated based on current expected credit losses to be experienced by the Company.

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Diluted earnings per common share is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents (stock-based awards).

The following table provides information relating to the calculation of earnings per common share for the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

The following table provides information relating to the calculation of earnings per common share for the three and six months ended June 30, 2026 and 2025.

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

($ in thousands, except per share data) 2026 2025 2026 2025

6 unchanged sentences

Diluted net income per common share $ 0.56 $ 0.46 $ 1.07 $ 0.88

There were zero and 6,515 anti-dilutive unvested restricted stock and performance stock unit awards excluded from the calculation of diluted earnings per common share for the three months ended March 31, 2026 and 2025, respectively.

There were zero and 3,323 anti-dilutive unvested restricted stock and performance stock unit awards excluded from the calculation of diluted earnings per common share for the three months ended June 30, 2026 and 2025, respectively.

There were 1,098 and 3,363 anti-dilutive unvested restricted stock and performance stock unit awards excluded from the calculation of diluted earnings per common share for the six months ended June 30, 2026 and 2025, respectively.

Share Repurchase Program

In May 2026, the Company’s Board of Directors authorized the repurchase of up to $ 30 million of the Company’s outstanding common stock over the next 12 months (the “Repurchase Program”).

Under the Repurchase Program, the shares may be repurchased from time to time through a combination of open market transactions at prevailing market prices, in privately negotiated transactions, through block trades and pursuant to any trading plan that may be adopted in accordance with Rules 10b5-1 and/or 10b-18 of the Exchange Act.

The actual timing, number and value of shares repurchased under the Repurchase Program will be determined by management at its discretion and will depend on a number of factors, including the market price of the Company’s stock, general market and economic conditions, applicable legal requirements, and other factors.

The Repurchase Program may be modified, amended or terminated by the Board of Directors at any time.

The following table presents information regarding the Company’s Repurchase Program for each of the periods presented.

($ in thousands, except per share amounts) Three and Six Months Ended June 30, 2026

Number of shares repurchased 40,093

Average price paid per share $ 22.22

Amount repurchased $ 891

All share repurchases were made in open market transactions.

As of June 30, 2026, the Company was authorized to repurchase a remaining $ 29.1 million of outstanding shares of common stock under the Repurchase Program.

Note 15 – Revenue Recognition

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Interchange Income

Interchange fees is primarily fees earned on payment card transactions processed through card networks such as Visa, Mastercard, and other debit and credit card networks.

Interchange fees are primarily fees earned on payment card transactions processed through card networks such as Visa, Mastercard, and other debit and credit card networks.

These fees are generally calculated as a percentage of the transaction value, plus a fixed fee per transaction, and are primarily paid by acquiring banks to issuing banks.

8 unchanged sentences

Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment.

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30, 2026 and 2025.

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

($ in thousands) 2026 2025 2026 2025

9 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements