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; 40 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, 2025 (the “2025 Annual Report”) filed with SEC and available at the SEC’s website (www.sec.gov). The information on, or accessible through, our website or any other website cited in this Quarterly Report on Form 10-Q is not part of, or incorporated by reference into, this Quarterly Report on Form 10-Q and should not be relied upon in determining whether to make an investment decision. 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 2025 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 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 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. 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 2025 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. 41 Table of Contents 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 seeks 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 2025 Annual Report for additional details concerning the determination of the ACL on loans. 42 Table of Contents PERFORMANCE OVERVIEW The Company’s net income for the second quarter of 2026 was $18.9 million, or $0.56 per diluted common share, compared to $17.1 million, or $0.51 per diluted common share, for the first quarter of 2026. The Company had net income of $15.5 million, or $0.46 per diluted common share, for the second quarter of 2025. Second Quarter 2026 Highlights • Net Income – Net income for the second quarter of 2026 increased $1.8 million to $18.9 million, from $17.1 million in the first quarter of 2026. Net income increased primarily due to a decrease in interest expense of $1.3 million, an increase in other noninterest income of $1.2 million and a decrease in salaries and employee benefits of $1.2 million, which were partially offset by a decrease in interest on deposits with other banks of $858 thousand and a higher provision for credit losses of $811 thousand. Net income for the six months ended June 30, 2026 was $36.0 million, compared to $29.3 million for the six months ended June 30, 2025. • Return on Average Assets (“ROAA”) – The Company reported ROAA of 1.24% for the second quarter of 2026, compared to 1.12% for the first quarter of 2026 and 1.03% for the second quarter of 2025. Adjusted ROAA – non-U.S. generally accepted accounting principles (“GAAP”) (1) was 1.34% for the second quarter of 2026, compared to 1.22% for the first quarter of 2026 and 1.15% for the second quarter of 2025. • Net Interest Margin (“NIM”) – Net interest income (“NII”) for the second quarter of 2026 increased $364 thousand to $52.9 million compared to the first quarter of 2026. NIM increased 6 basis points (“bps”) to 3.70% during the second quarter of 2026 compared to the first quarter of 2026. NIM excluding accretion (1) increased for the comparable periods from 3.35% to 3.45%. Excluding accretion interest, loan yields decreased 1 bp and funding costs decreased 8 bps for the comparable periods. Net interest income increased due to additional interest income from loan payoffs coupled with a lower cost of deposits. Loan payoffs resulted in accelerated accretion and interest income recovery on nonaccrual loans. • Capital Management – Book value per share increased to $18.44 at June 30, 2026 from $18.02 at March 31, 2026 and $16.94 at June 30, 2025. During the quarter ended June 30, 2026, the Company announced a $30 million share repurchase program and repurchased 40,093 shares of its outstanding common stock for approximately $891 thousand. During the second quarter of 2026, the Company declared a dividend of $0.14 per share, which represents a $0.02, or 16.7%, increase from the dividend paid in the prior quarter. • Asset Quality – Nonperforming assets were 1.09% of total assets at June 30, 2026, a decrease from 1.10% at March 31, 2026 and an increase from 0.33% at June 30, 2025. Classified assets were 1.41% of total assets at June 30, 2026, an increase when compared to 1.38% at March 31, 2026 and 0.37% at June 30, 2025. The allowance for credit losses was $58.7 million at June 30, 2026, compared to $58.5 million at March 31, 2026 and at June 30, 2025. The ACL as a percentage of loans decreased to 1.20% at June 30, 2026 compared to 1.21% at March 31, 2026 and at June 30, 2025. • Operating Leverage – The efficiency ratio for the second quarter of 2026 was 57.76%, compared to 61.97% for the first quarter of 2026 and 60.83% for the second quarter of 2025. The adjusted efficiency ratio – non-GAAP (1) , which excludes amortization of intangibles, was 54.49% for the second quarter of 2026, compared to 58.57% for the first quarter of 2026 and 56.73% for the second quarter of 2025. 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. 43 Table of Contents RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025 Summary of Financial Results The Company reported net income for the three months ended June 30, 2026 of $18.9 million, or $0.56 per diluted common share, compared to $15.5 million, or $0.46 per diluted common share, for the three months ended June 30, 2025. The following table presents selected consolidated statement of operations data for each of the periods indicated. Three Months Ended June 30, ($ in thousands) 2026 2025 Change ($) Change (%) Interest and dividend income $ 77,449 $ 76,532 $ 917 1.2 % Interest expense 24,530 29,369 (4,839) (16.5) Net interest income 52,919 47,163 5,756 12.2 Provision for credit losses 896 1,528 (632) (41.4) Noninterest income 8,830 9,406 (576) (6.1) Noninterest expense 35,668 34,410 1,258 3.7 Income before income taxes 25,185 20,631 4,554 22.1 Income tax expense 6,320 5,124 1,196 23.3 Net income $ 18,865 $ 15,507 $ 3,358 21.7 Net Interest Income Taxable-equivalent NII is NII adjusted for the tax-favored status of income from certain loans and investments. As shown in the table below, taxable-equivalent NII increased $5.8 million to $53.0 million for the second quarter of 2026, compared to $47.2 million for the second quarter of 2025. The increase in net interest income was primarily due to a decrease in interest expense on deposits of $4.4 million, an increase in interest on loans of $849 thousand and a decrease in interest expense on short-term borrowings of $589 thousand. These favorable changes were partially offset by an increase in interest expense on long-term borrowings of $177 thousand. The decrease in interest expense on deposits is reflective of rate reductions during 2026. The following table presents taxable-equivalent NII for each of the periods indicated. Three Months Ended June 30, ($ in thousands) 2026 2025 Change ($) Change (%) Interest and dividend income Interest on loans $ 70,456 $ 69,607 $ 849 1.2 % Interest and dividends on investment securities 5,393 5,337 56 1.0 Interest on deposits with banks 1,600 1,588 12 0.8 Total interest and dividend income $ 77,449 $ 76,532 $ 917 1.2 Interest expense Deposits $ 22,943 $ 27,370 $ (4,427) (16.2) % Short-term borrowings 16 605 (589) (97.4) Long-term borrowings 1,571 1,394 177 12.7 Total interest expense $ 24,530 $ 29,369 $ (4,839) (16.5) Taxable-equivalent adjustment $ 86 $ 81 $ 5 6.2 % Taxable-equivalent net interest income $ 53,005 $ 47,244 $ 5,761 12.2 % 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 June 30, 2026 and 2025. Three Months Ended June 30, 2026 2025 ($ in thousands) Average Balance Interest Yield/Rate Average Balance Interest Yield/Rate Earning assets Loans (1), (2), (3) Commercial real estate $ 2,586,937 $ 38,169 5.92 % $ 2,572,931 $ 37,240 5.81 % Residential real estate 1,484,165 20,276 5.46 1,378,940 18,959 5.50 Construction 338,695 5,454 6.46 352,803 5,697 6.48 Commercial 208,349 3,041 5.85 224,218 3,654 6.54 Consumer 250,295 3,491 5.59 298,544 4,018 5.40 Credit cards 4,125 110 10.69 6,122 117 7.66 Total loans 4,872,566 70,541 5.80 4,833,558 69,685 5.78 Investment securities Taxable 684,116 5,387 3.15 683,028 5,331 3.12 Tax-exempt (1) 646 7 4.33 652 8 4.91 Interest-bearing deposits 173,726 1,600 3.69 143,171 1,588 4.45 Total earning assets 5,731,054 $ 77,535 5.42 5,660,409 $ 76,612 5.42 Cash and due from banks 43,885 46,620 Other assets 364,155 372,725 Allowance for credit losses (58,586) (58,369) Total assets $ 6,080,508 $ 6,021,385 Interest-bearing liabilities Interest-bearing checking $ 733,877 $ 4,560 2.49 % $ 720,967 $ 5,697 3.17 % Money market and savings deposits 1,744,356 8,079 1.86 1,747,854 9,580 2.20 Time deposits 1,258,086 10,288 3.28 1,258,802 12,000 3.82 Brokered deposits 4,033 16 1.59 9,720 92 3.80 Interest-bearing deposits (4) 3,740,352 22,943 2.46 3,737,343 27,369 2.94 FHLB advances 1,648 16 3.88 50,000 605 4.85 Subordinated debt and guaranteed preferred beneficial interest in junior subordinated debentures (“TRUPS”) (4) 89,082 1,571 7.07 74,102 1,394 7.55 Total interest-bearing liabilities 3,831,082 24,530 2.57 3,861,445 29,368 3.05 Noninterest-bearing deposits 1,592,192 1,560,224 Accrued expenses and other liabilities 45,914 40,764 Stockholders’ equity 611,320 558,952 Total liabilities and stockholders’ equity $ 6,080,508 $ 6,021,385 Taxable-equivalent net interest income $ 53,005 $ 47,244 Net interest spread 2.85 % 2.37 % Net interest margin 3.70 3.34 Net interest margin excluding accretion (3) 3.45 3.09 Cost of funds 1.81 2.17 Cost of deposits 1.73 2.07 Cost of debt 7.02 6.46 ____________________________________ (1) All amounts are reported on a taxable-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 $3.8 million and $4.2 million of accretion interest on loans for the three months ended June 30, 2026 and 2025, respectively. (4) Interest expense on deposits and borrowings includes amortization of deposit discounts and amortization of borrowing fair value adjustments. There were zero and $435 thousand of amortization of deposit discounts and $79 thousand and $232 thousand of amortization of borrowing fair value adjustments for the three months ended June 30, 2026 and 2025, respectively. All deposit discounts have been fully amortized as of December 31, 2025. 45 Table of Contents Rate and Volume Analysis The following table presents changes in interest income and interest expense for the periods indicated. For each category of interest-earning asset and interest-bearing liability, information is provided on changes attributable to: (1) changes in volume (changes in volume multiplied by old rate) and (2) changes in rate (changes in rate multiplied by old volume). Changes in rate-volume (changes in rate multiplied by the change in volume) have been allocated to changes due to volume. Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025 ($ in thousands) Volume Due to Rate Total Interest income from earning assets: Loans Commercial real estate $ 223 $ 706 $ 929 Residential real estate 1,455 (138) 1,317 Construction (225) (18) (243) Commercial (227) (386) (613) Consumer (668) 141 (527) Credit cards (53) 46 (7) Taxable investment securities 5 51 56 Tax-exempt investment securities — (1) (1) Interest-bearing deposits 283 (271) 12 Total interest income $ 793 $ 130 $ 923 Interest-bearing liabilities: Interest-bearing checking deposits $ 85 $ (1,222) $ (1,137) Money market and savings deposits (19) (1,482) (1,501) Time deposits (17) (1,695) (1,712) Brokered deposits (22) (54) (76) Advances from FHLB (468) (121) (589) Subordinated debt 266 (89) 177 Total interest-bearing liabilities (175) (4,663) (4,838) Net change in net interest income $ 968 $ 4,793 $ 5,761 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. The Company’s NIM increased to 3.70% for the three months ended June 30, 2026, from 3.34% for the three months ended June 30, 2025 . Comparing the three months ended June 30, 2026 to the three months ended June 30, 2025 , the Company’s interest-earning asset yields were flat at 5.42%, while the cost of funds repriced at a faster pace, which resulted in a decrease of 36 bps, to 1.81% from 2.17%, for the same periods. ACL and Provision for Credit Losses (“PCL”) Refer to the discussion of the Bank’s ACL and PCL 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 June 30, 2026 was $8.8 million, a decrease of $576 thousand, or 6.1%, from $9.4 million for the three months ended June 30, 2025. The decrease was primarily due to a decrease in mortgage banking revenue of $825 thousand and other noninterest income, partially offset by increases in service charges on deposit accounts, trust and investment fee income and interchange credits. 46 Table of Contents Noninterest Expense Total noninterest expense was $35.7 million for the three months ended June 30, 2026, an increase of $1.3 million, or 3.7%, when compared to $34.4 million for the three months ended June 30, 2025. The increase was primarily due to higher salaries and employee benefits expense of $720 thousand and higher software and data processing costs of $516 thousand, partially offset by the decrease in the amortization of other intangible assets of $297 thousand. Income Taxes The Company reported income tax expense of $6.3 million and $5.1 million for the three months ended June 30, 2026 and 2025, respectively. The effective tax rate was 25.09% and 24.84% for the three months ended June 30, 2026 and 2025, respectively. 47 Table of Contents RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025 Summary of Financial Results The Company reported net income for the six months ended June 30, 2026 of $36.0 million, or $1.07 diluted earnings per common share, compared to $29.3 million, or $0.88 diluted earnings per common share, for the six months ended June 30, 2025. The following table presents selected consolidated statement of operations data for each of the periods indicated. Six Months Ended June 30, ($ in thousands) 2026 2025 Change ($) Change (%) Interest and dividend income $ 155,841 $ 152,464 $ 3,377 2.2 % Interest expense 50,367 59,403 (9,036) (15.2) Net interest income 105,474 93,061 12,413 13.3 Provision for credit losses 981 2,556 (1,575) (61.6) Noninterest income 16,074 16,540 (466) (2.8) Noninterest expense 72,724 68,157 4,567 6.7 Income before income taxes 47,843 38,888 8,955 23.0 Income tax expense 11,890 9,617 2,273 23.6 Net income $ 35,953 $ 29,271 $ 6,682 22.8 Net Interest Income As shown in the table below, taxable-equivalent NII increased $12.4 million to $105.6 million for the six months ended June 30, 2026, compared to $93.2 million for the six months ended June 30, 2025. The increase in net interest income was primarily due to an increase in total interest income of $3.4 million, or 2.2%, which included an increase in interest on loans of $4.1 million, or 3.0%, a decrease in interest on deposits with other banks of $939 thousand, or 18.8%, and an increase in interest income on taxable investments of $169 thousand. The increase in interest on loans was primarily due to the increase in the average balance of loans of $70.6 million, or 1.5%. The decrease in total interest expense was primarily due to a decrease in interest on deposits of $8.2 million and lower short-term borrowings of $1.2 million. These were partially offset by the increase in interest expense on long-term borrowings of $384 thousand as a result of lower FHLB borrowings and subordinated debt-related expenses that were classified as short-term borrowings in 2025. The following table presents taxable-equivalent NII for each of the periods indicated. Six Months Ended June 30, ($ in thousands) 2026 2025 Change ($) Change (%) Interest and dividend income Interest on loans $ 141,270 $ 137,123 $ 4,147 3.0 % Interest and dividends on investment securities 10,513 10,344 169 1.6 Interest on deposits with banks 4,058 4,997 (939) (18.8) Total interest and dividend income $ 155,841 $ 152,464 $ 3,377 2.2 Interest expense Deposits $ 47,207 $ 55,440 $ (8,233) (14.9) % Short-term borrowings 16 1,203 (1,187) (98.7) Long-term borrowings 3,144 2,760 384 13.9 Total interest expense $ 50,367 $ 59,403 $ (9,036) (15.2) Taxable-equivalent adjustment $ 175 $ 161 $ 14 8.7 % Taxable-equivalent net interest income $ 105,649 $ 93,222 $ 12,427 13.3 % 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 six months ended June 30, 2026 and 2025. Six Months Ended June 30, 2026 2025 ($ in thousands) Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Earning assets Loans (1), (2), (3) Commercial real estate $ 2,594,087 $ 77,198 6.00 % $ 2,557,316 $ 73,066 5.76 % Residential real estate 1,467,234 39,587 5.40 1,363,076 37,391 5.49 Construction 343,308 11,085 6.51 352,564 11,222 6.42 Commercial 214,909 6,337 5.95 228,535 7,349 6.48 Consumer 256,202 7,025 5.53 301,515 8,059 5.39 Credit cards 4,246 210 9.96 6,403 194 6.11 Total loans 4,879,986 141,442 5.83 4,809,409 137,281 5.74 Investment securities Taxable 674,973 10,501 3.11 673,567 10,332 3.07 Tax-exempt (1) 647 15 4.64 653 15 4.59 Interest-bearing deposits 221,288 4,058 3.70 228,488 4,997 4.41 Total earning assets 5,776,894 $ 156,016 5.43 5,712,117 $ 152,625 5.37 Cash and due from banks 44,033 46,912 Other assets 365,058 374,641 Allowance for credit losses (58,664) (58,331) Total assets $ 6,127,321 $ 6,075,339 Interest-bearing liabilities Interest-bearing checking $ 757,165 $ 9,400 2.50 % $ 789,949 $ 12,722 3.25 % Money market and savings deposits 1,778,027 16,775 1.90 1,773,637 19,595 2.23 Time deposits 1,264,087 20,912 3.34 1,233,666 23,031 3.76 Brokered deposits 7,461 120 3.24 4,888 92 3.81 Interest-bearing deposits (4) 3,806,740 47,207 2.50 3,802,140 55,440 2.94 FHLB advances 829 16 3.86 50,000 1,203 4.85 Subordinated debt and TRUPS (4) 89,053 3,144 7.12 73,971 2,760 7.52 Total interest-bearing liabilities 3,896,622 50,367 2.61 3,926,111 59,403 3.05 Noninterest-bearing deposits 1,578,695 1,555,405 Accrued expenses and other liabilities 46,207 40,594 Stockholders’ equity 605,797 553,229 Total liabilities and stockholders’ equity $ 6,127,321 $ 6,075,339 Taxable-equivalent net interest income $ 105,649 $ 93,222 Net interest spread 2.82 % 2.32 % Net interest margin 3.67 3.28 Net interest margin excluding accretion (3) 3.40 3.04 Cost of funds 1.86 2.19 Cost of deposits 1.77 2.09 Cost of debt 7.09 6.45 ____________________________________ (1) All amounts are reported on a taxable-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 $8.1 million and $8.0 million of accretion interest on loans for the six months ended June 30, 2026 and 2025, respectively. (4) Interest expense on deposits and borrowings includes amortization of deposit discounts and amortization of borrowing fair value adjustments. There were zero and $769 thousand of amortization of deposit discounts and $159 thousand and $463 thousand of amortization of borrowing fair value adjustments for the six months ended June 30, 2026 and 2025, respectively. All deposit discounts have been fully amortized as of December 31, 2025. 49 Table of Contents Rate and Volume Analysis The following table presents changes in volume and rate related to interest income and interest expense for the periods indicated. Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025 ($ in thousands) Volume Due to Rate Total Interest income from earning assets: Loans Commercial real estate $ 1,088 $ 3,044 $ 4,132 Residential real estate 2,804 (608) 2,196 Construction (294) 157 (137) Commercial (411) (601) (1,012) Consumer (1,243) 209 (1,034) Credit cards (106) 122 16 Taxable investment securities 35 134 169 Interest-bearing deposits (135) (804) (939) Total interest income $ 1,738 $ 1,653 $ 3,391 Interest-bearing liabilities: Interest-bearing checking deposits $ (384) $ (2,938) $ (3,322) Money market and savings deposits 82 (2,902) (2,820) Time deposits 450 (2,569) (2,119) Brokered deposits 42 (14) 28 Advances from FHLB (942) (245) (1,187) Subordinated debt 531 (147) 384 Total interest-bearing liabilities (221) (8,815) (9,036) Net change in net interest income $ 1,959 $ 10,468 $ 12,427 The Company’s NIM increased from 3.28% for the six months ended June 30, 2025 to 3.67% for the six months ended June 30, 2026. Margins were higher due to a $64.8 million increase in interest-earning asset balances and a 6 bp increase in interest-earning asset yields. These positive movements were coupled with a lower cost of interest-bearing deposits. The increase in the average balances of interest-bearing deposits of $4.6 million was offset by a 44 basis point decrease in the associated rates paid, as well as a $49.2 million decrease in the average balance of FHLB advances and a 99 basis point decrease in the associated rates paid. Net accretion income impacted net interest margin by 27 basis points and 24 basis points for the six months ended June 30, 2026 and 2025, respectively, which resulted in NIM excluding accretion of 3.40% and 3.04% 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 six months ended June 30, 2026 decreased $466 thousand, or 2.8%, when compared to the same period in 2025. The decrease was primarily due to an $833 thousand decrease in other noninterest income and a $615 thousand decrease in mortgage banking revenue , partially offset by a $475 thousand increase in trust and investment fee inc ome and a $293 thousand increase in interchange credits. Noninterest Expense Total noninterest expense for the six months ended June 30, 2026 increased $4.6 million, or 6.7%, when compared to the same period in 2025. Noninterest expense line items increased primarily due to higher salaries and employee benefit expenses of $3.9 million and a $1.0 million increase in software and data processing expense. These increases were partially offset by lower amortization of intangible assets of $595 thousand during the six months ended June 30, 2026 . Income Taxes The Company reported income tax expense of $11.9 million and $9.6 million for the six months ended June 30, 2026 and 2025, respectively. The effective tax rate was 24.85% and 24.73% for the six months ended June 30, 2026 and 2025, respectively. 51 Table of Contents ANALYSIS OF FINANCIAL CONDITION Balance Sheet Summary Total assets were $6.15 billion at June 30, 2026 , a decrease of $107.4 million, or 1.7%, when compared to $6.26 billion at December 31, 2025 . The decrease was primarily due to a decrease in our loan portfol io of $22.6 million and a decrease in cash and cash equivalents of $97.9 million, which were partially offset by an increase in our investment securities portfolio of $18.4 million . The ratio of the ACL as a percentage of loans was 1.20% and 1.20% at June 30, 2026 and December 31, 2025, respectively. Cash and Cash Equivalents Cash and cash equivalents totaled $257.7 million at June 30, 2026, compared to $355.6 million at December 31, 2025. 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. The decrease in cash and cash equivalents was primarily driven by seasonal run-off of municipal deposits. Investment Securities The investment portfolio includes debt and equity securities. Debt securities are classified as either available for sale (“AFS”) or held to maturity (“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 (“AOCI”) (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 June 30, 2026, 43.97% of the portfolio of debt securities was classified as AFS and 56.03% was classified as HTM, compared to 34.69% and 65.31%, respectively, at December 31, 2025. 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 $677.8 million at June 30, 2026, an increase of $18.4 million, or 2.80%, compared to $659.4 million at December 31, 2025. At June 30, 2026, AFS securities, carried at fair value, totaled $287.4 million, compared to $220.4 million at December 31, 2025. At June 30, 2026, AFS securities consisted of 85.95% mortgage-backed securities, 7.05% U.S. government agency securities and 7.00% corporate bonds, compared to 88.50%, 9.36% and 2.14%, respectively, at December 31, 2025. At June 30, 2026, the gross unrealized losses on AFS securities were all related to changes in interest rates and were $9.1 million, or less than 1% of total assets and 2% of total stockholders’ equity. At June 30, 2026, the AOCI loss was $6.1 million, compared to $4.6 million at December 31, 2025. At June 30, 2026, HTM securities, carried at amortized cost net of allowance, totaled $366.2 million, compared to $414.8 million at December 31, 2025. At June 30, 2026, HTM securities consisted of 77.69% mortgage-backed securities, 20.41% U.S. government agency securities and 1.90% other debt securities, compared to 73.06%, 25.26% and 1.68%, respectively, at December 31, 2025. At June 30, 2026 and December 31, 2025, 83.22% and 86.82%, respectively, of the Bank’s carrying value of its investment portfolio consisted of securities issued or guaranteed by U.S. government agencies or government-sponsored agencies. Credit Quality Information The Company monitors the credit quality of HTM securities through credit ratings provided by Standard & Poor’s Rating Services and Moody’s Investor Services. Credit ratings express opinions about the credit quality of a security and are updated at each quarter end. Investment grade securities are rated BBB- or higher by S&P and Baa3 or higher by Moody’s and are generally considered by the rating agencies and market participants to be of low credit risk. Conversely, securities rated below investment grade, which are labeled as speculative grade by the rating agencies, are considered to have distinctively higher credit risk than investment grade securities. There were no speculative grade HTM securities at June 30, 2026 or December 31, 2025. HTM securities that are not rated are agency mortgage-backed securities sponsored by U.S. government agencies, as well as direct obligations of the agencies, with the remainder being subordinated debt securities of other banks. 52 Table of Contents The following tables present the amortized cost of HTM securities based on their lowest publicly available credit rating as of June 30, 2026 and December 31, 2025. June 30, 2026 Investment Grade ($ in thousands) Aaa Aa1 A3 Baa1 Baa2 NR Total U.S. Treasury and government agency securities $ 3,814 $ 70,953 $ — $ — $ — $ — $ 74,767 Mortgage-backed securities 284,564 — — — — — 284,564 Other debt securities — 1,458 2,000 1,000 500 2,000 6,958 Total held to maturity securities $ 288,378 $ 72,411 $ 2,000 $ 1,000 $ 500 $ 2,000 $ 366,289 December 31, 2025 Investment Grade ($ in thousands) Aaa Aa1 A3 Baa1 Baa2 NR Total U.S. Treasury and government agency securities $ 5,399 $ 99,437 $ — $ — $ — $ — $ 104,836 Mortgage-backed securities 303,129 — — — — — 303,129 Other debt securities — 1,461 2,000 1,000 500 2,000 6,961 Total held to maturity securities $ 308,528 $ 100,898 $ 2,000 $ 1,000 $ 500 $ 2,000 $ 414,926 Loans Held for Sale The Company originates residential mortgage loans for sale on the secondary market, which are recorded at fair value. At June 30, 2026 and December 31, 2025, the fair value of loans held for sale amounted to $30.8 million and $32.5 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 compliance 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 months ended June 30, 2026 and 2025 and six months ended June 30, 2026, the Bank repurchased no loans . During the six months ended June 30, 2025, the Bank repurchased one loan with an aggregate value of $415 thousand. 53 Table of Contents Loans Held for Investment The following table summarizes the Company’s loan portfolio at June 30, 2026 and December 31, 2025. ($ in thousands) June 30, 2026 % of Total Loans December 31, 2025 % of Total Loans Change ($) Change (%) Commercial real estate $ 2,603,014 53.37 % $ 2,643,996 53.95 % $ (40,982) (1.6) % Residential real estate 1,470,401 30.15 1,414,964 28.88 55,437 3.9 Construction 337,779 6.92 344,903 7.04 (7,124) (2.1) Commercial 220,712 4.52 226,006 4.61 (5,294) (2.3) Consumer 241,751 4.96 265,912 5.43 (24,161) (9.1) Credit cards 4,092 0.08 4,521 0.09 (429) (9.5) Total loans 4,877,749 100.00 % 4,900,302 100.00 % (22,553) (0.5) Less: allowance for credit losses (58,737) (58,836) 99 (0.2) Total loans, net $ 4,819,012 $ 4,841,466 $ (22,454) (0.5) 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 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. Non-owner occupied CRE loans, excluding land and construction loans, totaled $1.87 billion at June 30, 2026 and $1.84 billion at December 31, 2025, and as a percentage of the Bank’s Tier 1 Capital plus ACL were 326.63% and 342.55%, respectively. Management has extensive experience in CRE lending and has implemented and continues to maintain heightened risk management procedures, as well as strong underwriting criteria with respect to the Bank’s CRE portfolio. Monitoring practices are part of the Bank’s credit and risk departments’ annual test plans and are adjusted as needed on a quarterly basis if external or internal conditions merit changes. The Bank’s CRE monitoring plans include stress testing analysis to evaluate changes in collateral values and changes in cash flow debt service coverage ratios as a result of increasing interest rates or declines in customer net operating revenues. We may be required to maintain higher levels of capital as a result of our CRE concentrations, which could require us to obtain additional capital, or be required to sell/participate portions of loans, either of which may adversely affect shareholder returns. 54 Table of Contents Non-Owner Occupied CRE Loans June 30, 2026 ($ in thousands) Amount Average Loan Size % of Non-Owner Occupied CRE Loans % of Total Portfolio Loans, Gross Loan type: Retail $ 488,866 $ 2,573 26.2 % 10.0 % Office 357,155 1,546 19.1 7.3 Multifamily (5+ units) 269,458 2,428 14.4 5.5 Industrial/warehouse 179,791 1,427 9.6 3.7 1-4 family dwelling 5,251 186 0.3 0.1 Motel/hotel 211,957 4,239 11.3 4.4 Other (1) 358,174 539 19.1 7.4 Total non-owner occupied CRE loans (2) 1,870,652 1,613 100.0 % 38.4 % Total portfolio loans, gross (3) $ 4,877,749 ____________________________________ (1) Other non-owner occupied CRE loans include commercial – improved loans of $161.3 million, self storage loans of $66.7 million, farm real estate loans of $45.8 million, restaurant loans of $41.8 million and other loans of $42.5 million. (2) The balances for the non-owner occupied CRE portfolio as of June 30, 2026 , 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 $30.8 million . Owner Occupied CRE Loans June 30, 2026 ($ in thousands) Amount Average Loan Size % of Owner Occupied CRE Loans % of Total Portfolio Loans, Gross Loan type: Commercial – improved $ 219,347 $ 1,179 30.0 % 4.5 % Office 118,733 506 16.2 2.4 Industrial/warehouse 95,391 677 13.0 2.0 Retail 69,502 650 9.5 1.4 Restaurant 53,632 1,012 7.3 1.1 Other (1) 175,757 1,184 24.0 3.6 Total owner occupied CRE loans 732,362 822 100.0 % 15.0 % Total portfolio loans, gross (2) $ 4,877,749 ____________________________________ (1) Other owner occupied CRE loans include church loans of $51.7 million, fire/EMS building loans of $37.6 million, auto service center of $34.0 million and other loans of $52.5 million. (2) Excludes loans held for sale of $30.8 million. Office CRE Loan Portfolio The Bank’s office CRE loan portfolio, which includes owner occupied and non-owner occupied CRE loans, was $475.9 million, or 9.8% of total loans of $4.88 billion at June 30, 2026. The Bank’s office CRE loan portfolio included $107.9 million, or 22.7% of total office CRE loans, with medical tenants, and $68.9 million, or 14.5% of total office CRE loans, with government or government contractor tenants. At June 30, 2026, there were 463 loans in the office CRE loan portfolio, with an average and median loan size of $1.0 million and $389 thousand, respectively. Loan-to-value (“LTV”) estimates are less than or equal to 50% for $166.2 million, or 34.9% of the office CRE loan portfolio, and greater than 80% for $13.1 million, or 2.8% of the office CRE loan portfolio at June 30, 2026. LTV collateral values are based on the most recent appraisal, which varies from the initial loan boarding to interim credit reviews. LTV estimates for the office CRE loan portfolio as of June 30, 2026 are summarized in the table below and LTV collateral values are based on the most recent appraisal, which may vary from the appraised value at loan origination. 55 Table of Contents June 30, 2026 LTV Range ($ in thousands) Loan Count Loan Balance % of Office CRE Less than or equal to 50% 229 $ 166,198 34.9 % Greater than 50% and less than or equal to 60% 78 126,619 26.6 Greater than 60% and less than or equal to 70% 86 133,440 28.0 Greater than 70% and less than or equal to 80% 55 36,539 7.7 Greater than 80% 15 13,092 2.8 Total 463 $ 475,888 100.0 % There were 16 office CRE loans with balances greater than $5.0 million, totaling $147.8 million at June 30, 2026, compared to 17 loans totaling $166.1 million at December 31, 2025. The decrease in this portfolio segment was the result of normal amortization. Of the office CRE portfolio balance, 80.8% of the loans were secured by properties in rural or suburban areas with limited exposure to metropolitan cities and 97.0% were secured by properties with five stories or less at June 30, 2026. Of the office CRE loans, $33.7 million will mature and $10.0 million will reprice prior to December 31, 2026. Of the office CRE loans, $17.6 million were classified as special mention or substandard at June 30, 2026. There were no charge-offs within the office CRE portfolio during the three and six months ended June 30, 2026. Maturity of Loan Portfolio The following table sets forth the maturities and interest rate sensitivity of the loan portfolio at June 30, 2026. Demand loans, loans having no stated schedule of repayments and no stated maturity, and overdrafts are reported as maturing within one year. June 30, 2026 ($ in thousands) Maturing Within One Year Maturing After One But Within Five Years Maturing After Five But Within 15 Years Maturing After 15 Years Total Commercial real estate $ 285,640 $ 874,676 $ 687,152 $ 755,546 $ 2,603,014 Residential real estate 55,714 132,275 117,670 1,164,742 1,470,401 Construction 217,777 91,885 26,737 1,380 337,779 Commercial 71,461 73,123 62,949 13,179 220,712 Consumer 2,140 81,465 89,350 68,796 241,751 Credit cards 1,780 2,076 236 — 4,092 Total $ 634,512 $ 1,255,500 $ 984,094 $ 2,003,643 $ 4,877,749 Rate Terms: Fixed-interest rate loans $ 428,640 $ 1,064,680 $ 533,813 $ 254,291 $ 2,281,424 Adjustable-interest rate loans 205,872 190,820 450,281 1,749,352 2,596,325 Total $ 634,512 $ 1,255,500 $ 984,094 $ 2,003,643 $ 4,877,749 Loans Related to Cannabis Business Loan balances related to the cannabis business were $91.3 million and $86.2 million, or 1.87% and 1.76% of total gross loans, as of June 30, 2026 and December 31, 2025, respectively. 56 Table of Contents Asset Quality ACL and PCL The ACL as a percentage of loans remained flat at 1.20% at June 30, 2026, compared to December 31, 2025. At June 30, 2026, the Company’s ACL decreased $99 thousand to $58.7 million, from $58.8 million at December 31, 2025. The Company recorded a PCL on loans in the consolidated statement of income of $896 thousand for the three months ended June 30, 2026, compared to $1.5 million for the three months ended June 30, 2025, primarily due to lower net charge-offs partially offset by loan growth. Net charges-offs were $123 thousand for the three months ended June 30, 2026, compared to $649 thousand, or 0.01% of average loans, for the three months ended June 30, 2025. The decrease in charge-offs in 2026 was primarily due to reduced losses in the marine and CRE portfolios. The ratio of annualized net charge-offs to average loans was 0.01% and 0.05% for the three months ended June 30, 2026 and 2025, respectively. The Company recorded a PCL on loans in the consolidated statement of income of $981 thousand for the six months ended June 30, 2026, compared to $2.6 million for the six months ended June 30, 2025, primarily due to lower charge-offs and a favorable economic outlook, partially offset by loan growth. Net charge-offs were $1.0 million, or 0.02% of average loans, for the six months ended June 30, 2026, compared to net charge-offs of $1.2 million, or 0.03% of average loans, for the six months ended June 30, 2025. The decrease in charge-offs in 2026 was primarily due to the reduced losses in the marine and CRE portfolios. The ratio of annualized net charge-offs to average loans was 0.04% and 0.05% for the six months ended June 30, 2026 and 2025, respectively. Management remains focused on its efforts to dispose of problem loans and to prudently charge-off nonperforming loans to enable the Company to maintain overall credit quality. The following tables allocate the ACL by loan portfolio category as of the dates indicated. The allocation of the ACL to each category is not necessarily indicative of future losses and does not restrict the use of the ACL to absorb losses in any category. Three Months Ended June 30, 2026 2025 ($ in thousands) ACL Balance Average Loan Balance (1) % (2) ACL Balance Average Loan Balance (1) % (2) Commercial real estate $ 20,780 $ 2,586,937 0.80 % $ 20,179 $ 2,572,931 0.78 % Residential real estate 23,531 1,458,992 1.61 23,203 1,348,016 1.72 Construction 6,153 338,695 1.82 5,805 352,803 1.65 Commercial 3,377 208,349 1.62 2,870 224,218 1.28 Consumer 4,828 250,295 1.93 6,188 298,544 2.07 Credit cards 68 4,125 1.65 238 6,122 3.89 Total $ 58,737 $ 4,847,393 1.21 $ 58,483 $ 4,802,634 1.22 ____________________________________ (1) Excludes loans held for sale. (2) ACL balance as a percent of average loan balance of each category. Six Months Ended June 30, 2026 2025 ($ in thousands) ACL Balance Average Loan Balance (1) % (2) ACL Balance Average Loan Balance (1) % (2) Commercial real estate $ 20,780 $ 2,594,087 0.80 % $ 20,179 $ 2,557,316 0.79 % Residential real estate 23,531 1,441,883 1.63 23,203 1,340,938 1.73 Construction 6,153 343,308 1.79 5,805 352,564 1.65 Commercial 3,377 214,909 1.57 2,870 228,535 1.26 Consumer 4,828 256,202 1.88 6,188 301,515 2.05 Credit cards 68 4,246 1.60 238 6,403 3.72 Total $ 58,737 $ 4,854,635 1.21 $ 58,483 $ 4,787,271 1.22 ____________________________________ (1) Excludes loans held for sale. (2) ACL balance as a percent of average loan balance of each category. 57 Table of Contents The following tables present the net charge-offs or recoveries by average loan portfolio category as of the dates indicated. Three Months Ended June 30, 2026 2025 ($ in thousands) Net Charge-offs (Recoveries) Average Loan Balance (1) Net Charge-off (Recovery) % Net Charge-offs (Recoveries) Average Loan Balance (1) Net Charge-off (Recovery) % Commercial real estate $ 64 $ 2,586,937 0.01 % $ — $ 2,572,931 0.00 % Residential real estate (7) 1,458,992 0.00 (2) 1,348,016 0.00 Construction (1) 338,695 0.00 — 352,803 0.00 Commercial (22) 208,349 (0.04) (81) 224,218 (0.14) Consumer (2) 74 250,295 0.12 543 298,544 0.73 Credit cards 15 4,125 1.46 189 6,122 12.38 Total $ 123 $ 4,847,393 0.01 $ 649 $ 4,802,634 0.05 Six Months Ended June 30, 2026 2025 ($ in thousands) Net Charge-offs (Recoveries) Average Loan Balance (1) Net Charge-off (Recovery) % Net Charge-offs (Recoveries) Average Loan Balance (1) Net Charge-off (Recovery) % Commercial real estate $ 64 $ 2,594,087 0.00 % $ (78) $ 2,557,316 (0.01) % Residential real estate 112 1,441,883 0.02 (3) 1,340,938 0.00 Construction (1) 343,308 0.00 (1) 352,564 0.00 Commercial 154 214,909 0.14 (85) 228,535 (0.08) Consumer (2) 549 256,202 0.43 939 301,515 0.63 Credit cards 92 4,246 4.37 431 6,403 13.57 Total $ 970 $ 4,854,635 0.04 $ 1,203 $ 4,787,271 0.05 ____________________________________ (1) Excludes loans held for sale. (2) Includes the marine portfolio. Classified Assets Classified assets are substandard loans, repossessed assets and OREO. The following tables present the Company’s classified assets by loan portfolio category at June 30, 2026 and December 31, 2025. June 30, 2026 ($ in thousands) Classified Loans Other Real Estate Owned Repossessed Assets Total Classified Assets Commercial real estate $ 65,353 $ — $ — $ 65,353 Residential real estate 11,713 — — 11,713 Construction 396 — — 396 Commercial 6,317 — — 6,317 Consumer 488 — 2,362 2,850 Credit cards 18 — — 18 Total $ 84,285 $ — $ 2,362 $ 86,647 58 Table of Contents December 31, 2025 ($ in thousands) Classified Loans Other Real Estate Owned Repossessed Assets Total Classified Assets Commercial real estate $ 40,677 $ — $ — $ 40,677 Residential real estate 11,084 — — 11,084 Construction 331 113 — 444 Commercial 4,255 — — 4,255 Consumer 971 — 2,879 3,850 Credit cards 48 — — 48 Total $ 57,366 $ 113 $ 2,879 $ 60,358 The following table presents the Company’s total classified assets as a percentage of total assets and risk-based capital at June 30, 2026 and December 31, 2025. June 30, 2026 December 31, 2025 Total classified assets as a percentage of total assets 1.41 % 0.96 % Total classified assets as a percentage of risk-based capital 12.53 9.14 Classified assets increased $26.3 million to $86.6 million, or 1.41% of total assets, at June 30, 2026, from $60.4 million, or 0.96% of total assets, at December 31, 2025. Special Mention Loans The following table presents the Company’s special mention loans by loan portfolio category at June 30, 2026 and December 31, 2025. ($ in thousands) June 30, 2026 December 31, 2025 Commercial real estate $ 53,741 $ 52,347 Residential real estate 19,094 19,065 Commercial 122 1,318 Consumer — 671 Total special mention loans $ 72,957 $ 73,401 Special mention loans decreased to $73.0 million at June 30, 2026, compared to $73.4 million at December 31, 2025 . As of June 30, 2026 , there were four special mention loans with individual balances greater than $5.0 million, totaling $53.0 million. These loans consist primarily of multifamily commercial real estate and other commercial real estate exposures that are well-collateralized. Management does not currently expect material losses on these credits and is actively engaged in credit oversight and timely execution of workout strategies. Nonperforming Assets Nonperforming assets were $67.2 million and $43.2 million , or 1.09% and 0.69% of total assets, as of June 30, 2026 and December 31, 2025 , respectively. At June 30, 2026, nonperforming assets primarily consisted of three large loans with an aggregate loan balance of $44.4 million. These nonperforming loans primarily consists of multifamily and office commercial real estate located in North Carolina and Virginia. As of June 30, 2026 , these loans are well-secured by collateral and required minimal individual reserves. When comparing June 30, 2026 to June 30, 2025 , nonperforming assets increased $47.6 million , primarily due to an increase in nonaccrual loans of $48.0 million , partially offset by a decrease in repossessed boats and automobiles of $274 thousand and a decrease in loans 90 days past due and accruing of $195 thousand. Substandard loans, which include nonaccrual loans and accruing loans 90 days or more past due, were $84.3 million at June 30, 2026, compared to $57.4 million at December 31, 2025 and $19.9 million at June 30, 2025 . 59 Table of Contents The following table summarizes our nonperforming assets as of June 30, 2026 and December 31, 2025. ($ in thousands) June 30, 2026 December 31, 2025 Nonperforming assets Nonaccrual loans $ 64,818 $ 39,960 Total loans 90 days or more past due and still accruing 20 255 OREO — 113 Repossessed assets 2,362 2,879 Total nonperforming assets $ 67,200 $ 43,207 As a percent of total loans: Nonaccrual loans 1.33 % 0.82 % As a percent of total loans and OREO: Nonperforming assets 1.38 % 0.88 % As a percent of total assets: Nonaccrual loans 1.05 % 0.64 % Nonperforming assets 1.09 % 0.69 % Off-Balance Sheet Credit Exposure Reserve The Company’s reserve for off-balance sheet credit exposure was $2.2 million and $2.0 million at June 30, 2026 and December 31, 2025, respectively. The Company monitors line of credit usage and did not see substantive increases in usage or expected usage during the three and six months ended June 30, 2026. 60 Table of Contents Deposits The following table presents the components of our deposit portfolio at June 30, 2026 and December 31, 2025. ($ in thousands) June 30, 2026 December 31, 2025 Balance % of Total Deposits Balance % of Total Deposits Change ($) Change (%) Noninterest-bearing deposits $ 1,606,809 29.76 % $ 1,587,953 28.69 % $ 18,856 1.2 % Interest-bearing deposits: Interest-bearing checking 833,602 15.44 852,585 15.41 (18,983) (2.2) Money market and savings 1,710,570 31.68 1,814,928 32.80 (104,358) (5.7) Time deposits 1,247,973 23.11 1,267,487 22.90 (19,514) (1.5) Brokered deposits 796 0.01 10,911 0.20 (10,115) (92.7) Total interest-bearing 3,792,941 70.24 3,945,911 71.31 (152,970) (3.9) Total deposits $ 5,399,750 100.00 % $ 5,533,864 100.00 % $ (134,114) (2.4) Total deposits decreased $134.1 million, to $5.40 billion at June 30, 2026 when compared to December 31, 2025. The year-to-date decrease in total deposits was primarily due to a decrease in money market and savings accounts of $104.4 million, a decrease in time deposits of $19.5 million and a decrease in interest-bearing checking accounts of $19.0 million. These decreases were partially offset by an increase in noninterest-bearing deposits of $18.9 million. Core deposits, which exclude municipal and cannabis deposits, increased by $71.7 million, or 1.7%, during the same period. Total estimated uninsured deposits were $975.6 million, or 18.1% of total deposits, at June 30, 2026 and $937.2 million, or 16.9% of total deposits, at December 31, 2025. At June 30, 2026, there were $136.6 million included in uninsured deposits that the Bank secured using the market value of pledged collateral. The Bank’s uninsured deposits at June 30, 2026, excluding the market value of pledged collateral, were $838.9 million, or 15.5% 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 June 30, 2026, the Bank had one local municipal customer deposit relationship that exceeded 2% of total deposits, totaling $183.8 million, which represented 3.39% of total deposits of $5.43 billion. At December 31, 2025, there were three customer deposit relationships that exceeded 2% of total deposits, totaling $539.0 million, which represented 9.70% of total deposits of $5.56 billion. Deposit balances related to the cannabis business were $168.5 million and $159.4 million, or 3.12% and 2.88% of total deposits, as of June 30, 2026 and December 31, 2025, respectively. Wholesale Funding – Short-Term Borrowings The Company borrows from the FHLB on a short-term basis to meet liquidity needs. There were no short-term borrowings outstanding as of June 30, 2026 and December 31, 2025. The Company’s wholesale funding, which includes FHLB advances and brokered deposits, was $796 thousand and $10.9 million at June 30, 2026 and December 31, 2025, respectively. At June 30, 2026, the Company had $796 thousand of brokered deposits and no FHLB advances or securities sold under agreements to repurchase or overnight borrowings from correspondent banks. At December 31, 2025, the Company had $10.9 million of brokered deposits and no FHLB advances or securities sold under agreements to repurchase or overnight borrowings from correspondent banks. 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 borrowings with the FHLB as of June 30, 2026. In November 2025, the Company issued $60 million in subordinated debt maturing in 2035, carrying a fixed interest rate of 6.25% through November 2030. The proceeds were used to fully redeem two existing subordinated debt issuances totaling $44.5 million. As a result of the merger with Severn Bancorp, Inc., effective October 31, 2021, the Company assumed liability for Junior Subordinated Debentures due in 2035, which had an outstanding principal balance of $20.6 million. The debt balances of $19.1 million at June 30, 2026 and $19.0 million at December 31, 2025 were presented net of fair value adjustments of $1.6 million and $1.7 million, respectively. 61 Table of Contents Additionally, as a result of the merger with The Community Financial Corporation in 2023 , the Company assumed liability for Junior Subordinated Debentures with an outstanding principal balance of $12.4 million . The debt b alances of $11.3 million and $11.2 million were presented net of fair value adjustments of $1.1 million and $1.2 million at June 30, 2026 and December 31, 2025, respectively. Stockholders’ Equity Total stockholders’ equity increased $26.2 million, or 4.4%, to $616.1 million at June 30, 2026 when compared to December 31, 2025, primarily due to $36.0 million of net income, partially offset by dividends declared of $8.7 million, an increase in accumulated other comprehensive loss of $1.5 million and $891 thousand to repurchase 40,093 shares of the Company’s common stock through the Repurchase Program. ($ in thousands, except per share data) June 30, 2026 December 31, 2025 Change ($) Change (%) Common stock, $0.01 par value per share $ 334 $ 334 $ — — % Additional paid-in capital 361,048 360,554 494 0.1 Retained earnings 260,782 233,578 27,204 11.6 Accumulated other comprehensive loss (6,089) (4,593) (1,496) 32.6 Total stockholders’ equity $ 616,075 $ 589,873 $ 26,202 4.4 62 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. Shore Bancshares’ 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 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, cash flow from the investment portfolio, loan repayments, borrowings and income from earning assets. The net decrease in cash and cash equivalents was $97.9 million for the six months ended June 30, 2026, compared to a net decrease of $274.9 million for the six months ended June 30, 2025. The decrease in cash and cash equivalents during the six months ended June 30, 2026 was primarily due to a $153.0 million decrease in interest-bearing deposits, partially offset by a $28.9 million decrease in loans and an $18.9 million increase 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 funds markets. At June 30, 2026, the Bank had approximately $1.9 billion of available liquidity, including $257.7 million in cash and cash equivalents, $314.4 million in unpledged securities, $25.1 million in secured borrowing capacity with the FRB and $911.9 million in secured borrowing capacity at the FHLB of Atlanta, partially offset by a letter of credit of $33.7 million. In addition, the Bank has arrangements with other correspondent banks whereby it has $396.1 million available in federal funds lines of credit and a reverse repurchase agreement available to meet any short-term needs that 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 $911.9 million and $788.1 million at June 30, 2026 and December 31, 2025, respectively. The Bank has pledged, under a blanket lien, all qualifying residential and commercial real estate loans under borrowing agreements with the FHLB of Atlanta. The Bank has pledged investment securities with the FRB under the FRB Discount Window program. 63 Table of Contents The following table presents the Company’s liquidity in use and liquidity available as of June 30, 2026. June 30, 2026 ($ in thousands) Liquidity in Use Liquidity Available FHLB secured borrowings (1) $ 33,667 $ 911,883 Unsecured federal fund purchase lines — 396,081 FRB discount window — 25,085 Unpledged assets Cash and cash equivalents N/A $ 257,670 Investment securities N/A 314,433 Total $ 33,667 $ 1,905,152 ____________________________________ (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. For information about risks relating to liquidity, see “Risk Factors – Risks Relating to Our Business” included in Part I, Item 1A in the 2025 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 (“PCA”), 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 1,250%. 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 June 30, 2026. The Company evaluates capital resources by the ability to maintain adequate regulatory capital ratios. The Company and the Bank annually update their 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 June 30, 2026, 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 PCA regulations. The following tables present the applicable capital ratios for the Company and the Bank as of June 30, 2026 and December 31, 2025. June 30, 2026 Tier 1 Leverage Ratio Common Equity Tier 1 Ratio Tier 1 Risk-Based Capital Ratio Total Risk-Based Capital Ratio The Company 9.52 % 11.09 % 11.71 % 14.17 % The Bank 10.00 12.31 12.31 13.56 December 31, 2025 Tier 1 Leverage Ratio Common Equity Tier 1 Ratio Tier 1 Risk-Based Capital Ratio Total Risk-Based Capital Ratio The Company 8.82 % 10.52 % 11.15 % 13.61 % The Bank 9.30 11.75 11.75 13.00 On May 21, 2026, the Company announced that its Board of Directors declared a cash dividend of $0.14 per share, payable on June 17, 2026, to holders of record of shares of common stock as of June 3, 2026. 64 Table of Contents The Company has no business other than holding the stock of the Bank and does not currently have any material funding requirements, except for the payment of dividends on common stock, and the payment of interest on subordinated debentures and subordinated notes, and noninterest expense. In May 2026, our Board of Directors authorized the repurchase of up to $30 million of our outstanding common stock over the next 12 months (the “Repurchase Program”). During the three and six months ended June 30, 2026, the Company repurchased 40,093 shares of its common stock at an average cost of $22.22 per share, or $891 thousand in aggregate. 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. For information about risks relating to liquidity, see “Risk Factors” included in Part I, Item 1A of the 2025 Annual Report. 65 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 data) June 30, 2026 December 31, 2025 Total assets $ 6,151,431 $ 6,258,818 Less: intangible assets Goodwill (63,266) (63,266) Core deposit intangible (25,767) (29,722) Total intangible assets (89,033) (92,988) Tangible assets $ 6,062,398 $ 6,165,830 Total common equity $ 616,075 $ 589,873 Less: intangible assets (89,033) (92,988) Tangible common equity $ 527,042 $ 496,885 Common shares outstanding at period end 33,416,336 33,413,503 Common equity to assets 10.02 % 9.42 % Tangible common equity to tangible assets 8.69 % 8.06 % Book value per common share at period end $ 18.44 $ 17.65 Tangible book value per common share at period end 15.77 14.87 66 Table of Contents Return on Average Assets (“ROAA”) ROAA is a financial ratio that measures the profitability of a company in relation to the average assets. This financial metric is expressed in the form of a percentage which is equal to net income divided by the average assets for a specific period of time. Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2026 2025 2026 2025 Net income $ 18,865 $ 15,507 $ 35,953 $ 29,271 Annualized net income $ 75,667 $ 62,198 $ 72,502 $ 59,027 Net income $ 18,865 $ 15,507 $ 35,953 $ 29,271 Add: amortization of other intangible assets, net of tax 1,479 1,708 2,972 3,425 Adjusted net income – non-GAAP 20,344 17,215 38,925 32,696 Annualized adjusted net income – non-GAAP $ 81,600 $ 69,049 $ 78,495 $ 65,934 Average assets $ 6,080,508 $ 6,021,385 $ 6,127,321 $ 6,075,339 Return on average assets 1.24 % 1.03 % 1.18 % 0.97 % Adjusted return on average assets – non-GAAP 1.34 % 1.15 % 1.28 % 1.09 % Return on Average Common Equity (“ROACE”) 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 divided by the average stockholders’ equity for a specific period of time. Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2026 2025 2026 2025 Net income $ 18,865 $ 15,507 $ 35,953 $ 29,271 Annualized net income $ 75,667 $ 62,198 $ 72,502 $ 59,027 ROACE 12.38 % 11.13 % 11.97 % 10.67 % Average stockholders’ equity $ 611,320 $ 558,952 $ 605,797 $ 553,229 67 Table of Contents Return on Average Tangible Common Equity (“ROATCE”) 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 June 30, Six Months Ended June 30, ($ in thousands) 2026 2025 2026 2025 Net income $ 18,865 $ 15,507 $ 35,953 $ 29,271 Add: amortization of other intangible assets, net of tax 1,479 1,708 2,972 3,425 Net income excluding amortization of other intangible assets – non-GAAP $ 20,344 $ 17,215 $ 38,925 $ 32,696 Annualized net income excluding amortization of other intangible assets – non-GAAP $ 81,600 $ 69,049 $ 78,495 $ 65,934 ROATCE – non-GAAP 15.66 % 14.99 % 15.25 % 14.53 % Average stockholders’ equity $ 611,320 $ 558,952 $ 605,797 $ 553,229 Less: Average goodwill and core deposit intangible (90,088) (98,241) (91,082) (99,372) Average tangible common equity $ 521,232 $ 460,711 $ 514,715 $ 453,857 68 Table of Contents Adjusted Efficiency Ratio – Non-GAAP Adjusted efficiency ratio – non-GAAP is computed by dividing (i) noninterest expense less amortization of other intangible assets by (ii) the sum of taxable-equivalent NII and noninterest income. Adjusted efficiency ratio – non-GAAP may not be comparable to similar non-GAAP measures used by other companies. Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2026 2025 2026 2025 Noninterest expense $ 35,668 $ 34,410 $ 72,724 $ 68,157 Less: Amortization of other intangible assets (1,975) (2,272) (3,955) (4,550) Adjusted noninterest expense $ 33,693 $ 32,138 $ 68,769 $ 63,607 Efficiency ratio 57.76 % 60.83 % 59.83 % 62.19 % Adjusted efficiency ratio – non-GAAP 54.49 56.73 56.50 57.95 Net interest income $ 52,919 $ 47,163 $ 105,474 $ 93,061 Add: taxable-equivalent adjustment 86 81 175 161 Taxable-equivalent net interest income $ 53,005 $ 47,244 $ 105,649 $ 93,222 Noninterest income $ 8,830 $ 9,406 $ 16,074 $ 16,540 Adjusted noninterest income $ 8,830 $ 9,406 $ 16,074 $ 16,540 69 Table of Contents