Document

•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. These increases 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.

•Net Interest Margin (“NIM”) – Net interest income 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 elevated accretion income and interest recoveries from loan payoffs coupled with a lower cost of deposits.

•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 (“ACL”) 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% in 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.

“Our second quarter results reflect the continued strength of our franchise and the progress we are making across the organization,” stated James (“Jimmy”) M. Burke, President and Chief Executive Officer of Shore Bancshares, Inc. “Another quarter of expanding net interest margin, record net interest income and record profitability demonstrates the benefits of disciplined balance sheet management, lower funding costs and our ongoing focus on operational execution. Our improved earnings and capital generation allowed us to increase our quarterly dividend and launch a share repurchase program, underscoring the confidence our Board has in the long-term value of our franchise and our commitment to disciplined capital allocation.

Total assets were $6.15 billion at June 30, 2026, a decrease of $54.6 million from March 31 ,2026. The decrease was primarily due to a decrease in interest bearing deposits of $92.4 million partially offset by an increase in loans of $29.7 million. Total assets decreased $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 cash and cash equivalents of $97.9 million and a decrease in our loan portfolio of $22.6 million, which were partially offset by an increase in our investment securities portfolio of $18.4 million. The decrease in cash and cash equivalents was primarily driven by seasonal run-off of municipal deposits.


	June 30, 2026
	Owner Occupied						Non-Owner Occupied
($ in thousands)	Average LTV(1)		Average Loan Size		Loan Balance(2)		Average LTV(1)		Average Loan Size		Loan Balance(2)
Office, medical	46.90	%	$	562	$	25,288	46.81	%	$	1,652	$	82,605
Office, govt. or govt. contractor	52.99		956		9,559		54.33		3,123		59,340
Office, other	47.17		474		83,886		49.03		1,328		215,210
Office, total	47.22		506		118,733		48.96		1,546		357,155
Retail	51.46		650		69,502		47.86		2,573		488,866
Multifamily (5+ units)	—		—		—		54.60		2,428		269,458
Hotel/motel	—		—		—		43.81		4,239		211,957
Industrial/warehouse	44.81		677		95,391		46.68		1,427		179,791
Commercial-improved	41.67		1,179		219,347		49.80		1,311		161,291
Marine/boat slips	28.65		758		16,671		36.03		1,459		7,294
Restaurant	49.09		1,012		53,632		48.47		1,020		41,834
Church	31.55		807		51,655		13.10		2,340		2,340
Land/lot loans	21.70		369		369		50.49		481		1,926
Other	39.15		1,290		107,062		31.82		539		148,740
Total CRE loans, gross	43.12		822		$	732,362	44.14		1,613		$	1,870,652

There were 16 office CRE loans with balances greater than $5.0 million, totaling $147.8 million at June 30, 2026 and totaling $166.1 million at December 31, 2025. The decrease in this portfolio segment was the result of normal amortization and the payoff of one loan. 80.8% of the office CRE loan balance was secured by properties in rural or suburban areas with limited exposure to metropolitan cities and 97.0% was secured by properties with five stories or less. $17.6 million of these loan balances 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 and 2025.

Nonperforming assets were $67.2 million and $68.4 million, or 1.09% and 1.10% of total assets, as of June 30, 2026 and March 31, 2026, respectively. Nonperforming assets primarily consist of three large loans with an aggregate loan balance of $44.4 million. These nonperforming loans primarily consist of multifamily and office commercial real estate loans with collateral 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 marine and auto loans 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 $82.3 million at March 31, 2026 and $19.9 million at June 30, 2025.

Special mention loans decreased to $73.0 million at June 30, 2026 compared to $97.8 million at March 31, 2026 and increased compared to $65.6 million at June 30, 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.

Total deposits decreased $61.9 million from March 31, 2026 to $5.40 billion at June 30, 2026 and decreased $134.1 million 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 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 cannabis deposits, increased by $71.7 million, or 1.7%, during the same period.

Uninsured deposits were $975.6 million, or 18.1% of total deposits, at June 30, 2026. Uninsured deposits, excluding deposits secured with pledged collateral, were $838.9 million, or 15.5% of total deposits, at June 30, 2026. At June 30, 2026, available liquidity was $1.90 billion, including $911.9 million in secured borrowing capacity at the FHLB, $25.1 million in secured borrowing capacity through the FRB Discount Window, $396.1 million in unsecured lines of credit with other correspondent banks, $314.4 million in unpledged securities and $257.7 million in cash and cash equivalents.

Total stockholders’ equity at June 30, 2026 increased $26.2 million, or 4.4%, when compared to December 31, 2025, primarily due to current year earnings, partially offset by cash dividends paid and an increase in accumulated other comprehensive losses. As of June 30, 2026 and 2025, the ratio of total equity to total assets was 10.02% and 9.36%, respectively. As of June 30, 2026, the ratio of total tangible equity to total tangible assets(1) was 8.69%, compared to 8.06% and 7.88% as of December 31, 2025 and June 30, 2025, respectively. The Company’s Tier 1 and Total Risk-Based Capital Ratios at June 30, 2026 were 11.71% and 14.17%, respectively.

Net interest income was $52.9 million for the second quarter of 2026, compared to $52.6 million for the first quarter of 2026 and $47.2 million for the second quarter of 2025. The slight increase in net interest income when compared to the first quarter of 2026 was primarily due to a decrease in interest expense on deposits of $1.3 million, partially offset by a decrease in interest income on deposits at other banks of $858 thousand and a decrease in interest income on loans of $358 thousand. The increase in net interest income was $5.8 million when compared to the second quarter of 2025, and 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 the rate reductions during 2026.

The Company’s NIM increased to 3.70% for the second quarter of 2026 from 3.64% for the first quarter of 2026, primarily due to lower interest expense on deposits, partially offset by lower accelerated accretion related to loan payoffs. NIM excluding accretion increased for the comparable periods from 3.35% to 3.45%. Excluding accretion interest income, loan yields decreased 1 bp and funding costs decreased 8 bps for the comparable periods. Interest expense for the second quarter of 2026 decreased $1.3 million compared to the first quarter of 2026, primarily due to lower rates during the quarter. The Company’s NIM increased to 3.70% for the second quarter of 2026 from 3.34% for the second quarter of 2025. The Company’s average interest-earning asset yield remained flat at 5.42% for the second quarter of 2026 compared to the second quarter of 2025, while the average cost of funds decreased 36 bps to 1.81% from 2.17% for the same periods.

The provision for credit losses was $896 thousand for the three months ended June 30, 2026. The comparable amounts were $85 thousand for the three months ended March 31, 2026 and $1.5 million for the three months ended June 30, 2025. The increase in the provision for credit losses for the second quarter of 2026 compared to the first quarter of 2026 was due to a higher unfunded commitments, partially offset by favorable credit outlook and lower net charge offs. Coverage ratios decreased to 1.20% at June 30, 2026 from 1.21% at March 31, 2026, and decreased compared to June 30, 2025. Net charge-offs decreased to $123 thousand for the second quarter of 2026 compared to $847 thousand for the first quarter of 2026 and $649 thousand for the second quarter of 2025. The decrease was driven by the consumer loan related write-offs during the first quarter of 2026.

Total noninterest expense of $35.7 million for the second quarter of 2026 decreased $1.4 million compared to $37.1 million for the first quarter of 2026, and increased $1.3 million compared to $34.4 million for the second quarter of 2025. The decrease from the first quarter of 2026 was primarily due to a decrease in salaries and employee benefit expenses of $1.2 million and a decrease in professional service fees of $250 thousand. The decrease in salaries and employee benefits was primarily related to lower employee related taxes. The increase from the second quarter of 2025 was primarily due to an increase in salaries and employee benefits expense of $720 thousand and an increase in software and data processing costs of $516 thousand, partially offset by a decrease in amortization of other intangible assets of $297 thousand.

Net interest income for the six months ended June 30, 2026 was $105.5 million, an increase of $12.4 million, or 13.3%, when compared to 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 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.

This news release contains statements relating to future events or our future results that are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We also may make forward-looking statements in other documents filed with or furnished to the Securities and Exchange Commission, and our senior management may make forward-looking statements orally to investors, analysts, representatives of the media, and others. Forward-looking statements may be identified by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “intend,” “potential,” “target,” “plan,” “goal,” or words of similar meaning, or future or conditional verbs such as “could,” “would,” or “may.” Forward-looking statements include statements of our goals, intentions, or expectations; statements regarding our business plans, prospects, growth, or operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits.

Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. We caution that the forward-looking statements are based largely on our expectations and information available at the time the statements are made and are subject to known and unknown risks and uncertainties that are subject to change based on factors, which in many instances are beyond our control. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements. You should bear this in mind when reading this news release and not place undue reliance on these forward-looking statements.

The factors that could cause actual results to differ materially from those expressed in such forward-looking statements include, but are not limited to, the risks identified in our Annual Report on Form 10-K for the year ended December 31, 2025, and in any subsequent filings with the Securities and Exchange Commission and the following: local, regional and global business, economic and political conditions and geopolitical events; changes in laws, rules and regulatory requirements, including capital and liquidity requirements; changes in consumer and business confidence, investor sentiment, and consumer spending and savings behavior; changes in the level of inflation; changes in monetary and fiscal policies; changes in trade policies, including the imposition of tariffs and retaliatory responses; changes in the demand for loans, deposits, and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; changes in FDIC assessments; changes in the interest rate environment; changes in income tax laws and regulations; our ability to manage effectively our capital and liquidity; the ability to realize benefits and cost savings from, and limit any unexpected liabilities associated with, any business combinations; changes in credit ratings assigned to us; competitive pressures among financial services companies; technology changes instituted by us, our counterparties, or competitors; the ability to attract, develop, and retain qualified employees; change in federal government enforcement of federal laws affecting the cannabis industry; our ability to maintain the security of our financial, accounting, technology, data processing and other operational systems and facilities; our ability to effectively defend ourselves against cyber-attacks and other attempts by unauthorized parties to access our information or information of our customers or to disrupt our systems; our ability to withstand disruptions that may be caused by any failure of our operational systems or those of third parties; our ability to control expenses; the impact of changes in accounting policies, including the introduction of new accounting standards; the impact of judicial or regulatory proceedings; and the impact of natural or man-made disasters or calamities, including health emergencies, the spread of infectious diseases, epidemics or pandemics, an outbreak or escalation of hostilities or other geopolitical instabilities, the effects of climate change or extraordinary events beyond our control.


											Q2 2026 vs.		Q2 2026 vs.		Six Months Ended June 30,
($ in thousands, except per share data)	Q2 2026		Q1 2026		Q4 2025		Q3 2025		Q2 2025		Q1 2026		Q2 2025		2026		2025		2026 vs. 2025
PROFITABILITY FOR THE PERIOD
Taxable-equivalent net interest income	$	53,005	$	52,644	$	50,294	$	48,501	$	47,244	0.7	%	12.2	%	$	105,649	$	93,222	13.3	%
Less: Taxable-equivalent adjustment	86		89		92		83		81		(3.4)		6.2		175		161		8.7
Net interest income	52,919		52,555		50,202		48,418		47,163		0.7		12.2		105,474		93,061		13.3
Provision for credit losses	896		85		2,827		2,992		1,528		954.1		(41.4)		981		2,556		(61.6)
Noninterest income	8,830		7,244		8,906		7,938		9,406		21.9		(6.1)		16,074		16,540		(2.8)
Noninterest expense	35,668		37,056		35,499		34,379		34,410		(3.7)		3.7		72,724		68,157		6.7
Income before income taxes	25,185		22,658		20,782		18,985		20,631		11.2		22.1		47,843		38,888		23.0
Income tax expense	6,320		5,570		4,895		4,637		5,124		13.5		23.3		11,890		9,617		23.6
NET INCOME	$	18,865	$	17,088	$	15,887	$	14,348	$	15,507	10.4		21.7		$	35,953	$	29,271	22.8

Adjusted net income – non-GAAP(1)	$	20,344	$	18,581	$	17,416	$	15,889	$	17,215	9.5	%	18.2	%	$	38,925	$	32,696	19.1	%
Pre-tax pre-provision net income – non-GAAP(1)	26,081		22,743		23,609		21,977		22,159		14.7		17.7		48,824		41,444		17.8

Return on average assets – GAAP	1.24%		1.12%		1.02%		0.95%		1.03%		12	bp	21	bp	1.18%		0.97%		21	bp
Adjusted return on average assets – non-GAAP	1.34		1.22		1.11		1.05		1.15		12		19		1.28		1.09		19
Return on average common equity – GAAP	12.38		11.55		10.79		9.96		11.13		83		125		11.97		10.67		130
Return on average tangible common equity – non-GAAP(1)	15.66		14.83		14.10		13.27		14.99		83		67		15.25		14.53		72
Net interest spread	2.85		2.80		2.48		2.45		2.37		5		48		2.82		2.32		50
Net interest margin	3.70		3.64		3.43		3.41		3.34		6		36		3.67		3.28		39
Efficiency ratio – GAAP	57.76		61.97		60.06		61.00		60.83		(421)		(307)		59.83		62.19		(236)
Adjusted efficiency ratio – non-GAAP(1)	54.49		58.57		56.59		57.30		56.73		(408)		(224)		56.50		57.95		(145)
Noninterest income to average assets	0.58		0.48		0.57		0.52		0.63		10		(5)		0.53		0.55		(2)
Noninterest expense to average assets	2.35		2.43		2.27		2.27		2.29		(8)		6		2.39		2.26		13



PER SHARE DATA
Basic net income per common share	$	0.56	$	0.51	$	0.48	$	0.43	$	0.46	9.8	%	21.7	%	$	1.08	$	0.88	22.7	%
Diluted net income per common share	0.56		0.51		0.48		0.43		0.46		9.8		21.7		1.07		0.88		21.6
Dividends paid per common share	0.14		0.12		0.12		0.12		0.12		16.7		16.7		0.26		0.24		8.3
Book value per common share at period end	18.44		18.02		17.65		17.27		16.94		2.3		8.9		18.44		16.94		8.9
Tangible book value per common share at period end – non-GAAP(1)	15.77		15.30		14.87		14.43		14.03		3.1		12.4		15.77		14.03		12.4
Common share market value at period end	22.95		18.68		17.68		16.41		15.72		22.9		46.0		22.95		15.72		46.0
Common share intraday price:
High	$	23.45	$	20.68	$	19.22	$	17.67	$	15.88	13.4	%	47.7	%	$	23.45	$	17.24	36.0	%
Low	17.91		17.25		14.93		14.96		11.47		3.8		56.1		17.25		11.47		50.4

____________________________________


											Q2 2026 vs.		Q2 2026 vs.		Six Months Ended June 30,
($ in thousands, except per share data)	Q2 2026		Q1 2026		Q4 2025		Q3 2025		Q2 2025		Q1 2026		Q2 2025		2026		2025		2026 vs. 2025
AVERAGE BALANCE SHEET DATA
Loans	$	4,872,566	$	4,887,488	$	4,909,619	$	4,884,003	$	4,833,558	(0.3)	%	0.8	%	$	4,879,986	$	4,809,409	1.5	%
Investment securities	684,762		666,376		653,639		664,535		683,680		2.8		0.2		675,620		674,220		0.2
Earning assets	5,731,054		5,823,244		5,843,816		5,658,981		5,660,409		(1.6)		1.2		5,776,894		5,712,117		1.1
Assets	6,080,508		6,174,655		6,206,753		6,020,574		6,021,385		(1.5)		1.0		6,127,321		6,075,339		0.9
Deposits	5,332,544		5,438,914		5,452,082		5,280,252		5,297,567		(2.0)		0.7		5,385,435		5,357,545		0.5
FHLB advances	1,648		—		20,108		52,391		50,000		—		(96.7)		829		50,000		(98.3)
Subordinated debt & TRUPS	89,082		89,024		104,752		74,363		74,102		0.1		20.2		89,053		73,971		20.4
Stockholders’ equity	611,320		600,212		584,209		571,247		558,952		1.9		9.4		605,797		553,229		9.5

CREDIT QUALITY DATA
Net charge-offs	$	123	$	847	$	3,619	$	1,825	$	649	(85.5)	%	(81.0)	%	$	970	$	1,203	(19.4)	%

Nonaccrual loans	$	64,818	$	64,958	$	39,960	$	24,378	$	16,782	(0.2)	%	286.2	%
Loans 90 days past due and still accruing	20		—		255		153		215		—		(90.7)
Other real estate owned and repossessed property	2,362		3,414		2,992		3,552		2,636		(30.8)		(10.4)
Total nonperforming assets	$	67,200	$	68,372	$	43,207	$	28,083	$	19,633	(1.7)		242.3


											Q2 2026 vs.		Q2 2026 vs.		Six Months Ended June 30,
($ in thousands, except per share data)	Q2 2026		Q1 2026		Q4 2025		Q3 2025		Q2 2025		Q1 2026		Q2 2025		2026		2025		2026 vs 2025
CAPITAL AND CREDIT QUALITY RATIOS
Period-end equity to assets – GAAP	10.02	%	9.71	%	9.42	%	9.19	%	9.36	%	31	bp	66	bp
Period-end tangible equity to tangible assets – non-GAAP(1)	8.69		8.37		8.06		7.80		7.88		32		81

Annualized net charge-offs to average loans	0.01	%	0.07	%	0.29	%	0.15	%	0.05	%	(6)	bp	(4)	bp	0.04	%	0.05	%	(1)	bp

Allowance for credit losses as a percent of:
Period-end loans	1.20	%	1.21	%	1.20	%	1.22	%	1.21	%	(1)	bp	(1)	bp
Period-end nonaccrual loans	90.62		90.03		147.24		244.29		348.49		59		(25,787)
Period-end nonperforming assets	87.41		85.53		136.17		212.06		297.88		188		(21,047)

As a percent of total loans at period-end:
Nonaccrual loans	1.33	%	1.34	%	0.82	%	0.50	%	0.35	%	(1)	bp	98	bp

As a percent of total loans, other real estate owned and repossessed property at period-end:
Nonperforming assets	1.38	%	1.41	%	0.88	%	0.57	%	0.41	%	(3)	bp	97	bp

As a percent of total assets at period-end:
Nonaccrual loans	1.05	%	1.05	%	0.64	%	0.39	%	0.28	%	—	bp	77	bp
Nonperforming assets	1.09		1.10		0.69		0.45		0.33		(1)		76


																Q2 2026 vs.		Q2 2026 vs.
($ in thousands)	Q2 2026			Q1 2026			Q4 2025			Q3 2025			Q2 2025			Q1 2026		Q2 2025
Company Amounts
Common Equity Tier 1 Capital	$	541,577		$	525,849		$	510,729		$	496,709		$	483,947		2.99	%	11.91	%
Tier 1 Capital	571,904			556,096			540,897			526,794			513,952			2.84		11.28
Total Capital	691,720			674,811			660,451			627,055			618,793			2.51		11.79
Risk-Weighted Assets	4,882,618			4,794,374			4,852,573			4,867,237			4,890,679			1.84		(0.16)

Company Ratios
Common Equity Tier 1 Capital to Risk-Weighted Assets (“RWA”)	11.09		%	10.97		%	10.52		%	10.21		%	9.90		%	12	bp	119	bp
Tier 1 Capital to RWA	11.71			11.60			11.15			10.82			10.51			11		120
Total Capital to RWA	14.17			14.08			13.61			12.88			12.65			9		152
Tier 1 Capital to AA (Leverage)	9.52			9.12			8.82			8.86			8.65			40		87

Bank Amounts
Common Equity Tier 1 Capital	$	600,541		$	583,733		$	569,183		$	559,212		$	546,630		2.88	%	9.86	%
Tier 1 Capital	600,541			583,733			569,183			559,212			546,630			2.88		9.86
Total Capital	661,531			643,627			629,746			620,034			607,235			2.78		8.94
Risk-Weighted Assets	4,879,247			4,791,223			4,844,639			4,864,871			4,888,558			1.84		(0.19)

Bank Ratios
Common Equity Tier 1 Capital to RWA	12.31		%	12.18		%	11.75		%	11.49		%	11.18		%	13	bp	113	bp
Tier 1 Capital to RWA	12.31			12.18			11.75			11.49			11.18			13		113
Total Capital to RWA	13.56			13.43			13.00			12.75			12.42			13		114
Tier 1 Capital to AA (Leverage)	10.00			9.58			9.30			9.41			9.20			42		80


											June 30, 2026		June 30, 2026
											compared to		compared to
($ in thousands, except per share data)	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2026		June 30, 2025
	(unaudited)		(unaudited)				(unaudited)		(unaudited)
ASSETS
Cash and due from banks	$	53,335	$	44,054	$	50,164	$	62,289	$	54,512	21.1	%	(2.2)	%
Interest-bearing deposits with other banks	204,335		296,768		305,402		354,224		130,472		(31.1)		56.6
Cash and cash equivalents	257,670		340,822		355,566		416,513		184,984		(24.4)		39.3
Investment securities:
Available for sale, at fair value	287,369		264,026		220,358		181,720		187,679		8.8		53.1
Held to maturity, net of allowance for credit losses	366,213		393,615		414,827		433,440		459,246		(7.0)		(20.3)
Equity securities, at fair value	6,218		6,195		6,186		6,113		6,010		0.4		3.5
Restricted securities, at cost	18,003		18,003		17,989		20,364		20,412		—		(11.8)
Loans held for sale, at fair value	30,827		24,034		32,540		21,500		34,319		28.3		(10.2)
Loans held for investment	4,877,749		4,848,030		4,900,302		4,882,969		4,827,628		0.6		1.0
Less: allowance for credit losses	(58,737)		(58,481)		(58,836)		(59,554)		(58,483)		0.4		0.4
Loans, net	4,819,012		4,789,549		4,841,466		4,823,415		4,769,145		0.6		1.0

Premises and equipment, net	79,580		80,137		80,168		80,812		81,426		(0.7)		(2.3)
Goodwill	63,266		63,266		63,266		63,266		63,266		—		—
Other intangible assets, net	25,767		27,742		29,722		31,722		33,761		(7.1)		(23.7)
Right-of-use assets	9,691		10,102		10,523		10,896		11,052		(4.1)		(12.3)
Cash surrender value on life insurance	107,724		106,684		105,839		105,055		105,860		1.0		1.8
Accrued interest receivable	20,021		20,676		18,551		20,408		19,821		(3.2)		1.0
Deferred income taxes	30,657		29,752		29,825		30,328		30,972		3.0		(1.0)
Other assets	29,413		31,460		31,992		32,927		29,921		(6.5)		(1.7)
TOTAL ASSETS	$	6,151,431	$	6,206,063	$	6,258,818	$	6,278,479	$	6,037,874	(0.9)		1.9


											June 30, 2026		June 30, 2026
											compared to		compared to
($ in thousands, except per share data)	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2026		June 30, 2025
	(unaudited)		(unaudited)				(unaudited)		(unaudited)
LIABILITIES
Deposits:
Noninterest-bearing	$	1,606,809	$	1,567,425	$	1,587,953	$	1,594,212	$	1,575,120	2.5	%	2.0	%
Interest-bearing checking	833,602		812,847		852,585		851,963		763,309		2.6		9.2
Money market and savings	1,710,570		1,795,619		1,814,928		1,790,001		1,691,438		(4.7)		1.1
Time deposits	1,247,973		1,274,766		1,267,487		1,281,132		1,273,285		(2.1)		(2.0)
Brokered deposits	796		10,963		10,911		10,857		10,806		(92.7)		(92.6)
Total deposits	5,399,750		5,461,620		5,533,864		5,528,165		5,313,958		(1.1)		1.6

FHLB advances	—		—		—		50,000		50,000		—		(100.0)
Guaranteed preferred beneficial interest in junior subordinated debentures (“TRUPS”), net	30,327		30,247		30,168		30,085		30,005		0.3		1.1
Subordinated debt, net	58,825		58,782		58,893		44,409		44,236		0.1		33.0
Total borrowings	89,152		89,029		89,061		124,494		124,241		0.1		(28.2)
Lease liabilities	10,199		10,608		11,027		11,395		11,541		(3.9)		(11.6)
Other liabilities	36,255		42,092		34,993		37,218		22,940		(13.9)		58.0
TOTAL LIABILITIES	5,535,356		5,603,349		5,668,945		5,701,272		5,472,680		(1.2)		1.1
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value per share	334		335		334		334		334		(0.3)		—
Additional paid-in capital	361,048		361,013		360,554		359,939		359,063		—		0.6
Retained earnings	260,782		246,636		233,578		221,693		211,400		5.7		23.4
Accumulated other comprehensive loss	(6,089)		(5,270)		(4,593)		(4,759)		(5,603)		15.5		8.7
TOTAL STOCKHOLDERS’ EQUITY	616,075		602,714		589,873		577,207		565,194		2.2		9.0
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	6,151,431	$	6,206,063	$	6,258,818	$	6,278,479	$	6,037,874	(0.9)		1.9

Shares of common stock issued and outstanding	33,416,336		33,451,063		33,413,503		33,421,672		33,374,265		(0.1)	%	0.1	%
Book value per common share at period end	$	18.44	$	18.02	$	17.65	$	17.27	$	16.94	2.3		8.9


											Q2 2026 vs.		Q2 2026 vs.		Six Months Ended June 30,
($ in thousands, except per share data)	Q2 2026		Q1 2026		Q4 2025		Q3 2025		Q2 2025		Q1 2026		Q2 2025		2026		2025		% Change
INTEREST INCOME
Interest on loans	$	70,456	$	70,814	$	72,092	$	70,693	$	69,607	(0.5)	%	1.2	%	$	141,270	$	137,123	3.0	%
Interest and dividends on taxable investment securities	5,387		5,114		5,010		5,036		5,331		5.3		1.1		10,501		10,332		1.6
Interest and dividends on tax-exempt investment securities	6		6		6		6		6		—		—		12		12		—

Interest on deposits with other banks	1,600		2,458		2,810		1,215		1,588		(34.9)		0.8		4,058		4,997		(18.8)
Total interest income	77,449		78,392		79,918		76,950		76,532		(1.2)		1.2		155,841		152,464		2.2

INTEREST EXPENSE
Interest on deposits	22,943		24,264		27,289		26,474		27,370		(5.4)		(16.2)		47,207		55,440		(14.9)
Interest on short-term borrowings	16		—		246		640		605		—		(97.4)		16		1,203		(98.7)
Interest on long-term borrowings	1,571		1,573		2,181		1,418		1,394		(0.1)		12.7		3,144		2,760		13.9
Total interest expense	24,530		25,837		29,716		28,532		29,369		(5.1)		(16.5)		50,367		59,403		(15.2)

NET INTEREST INCOME	52,919		52,555		50,202		48,418		47,163		0.7		12.2		105,474		93,061		13.3
Provision for credit losses	896		85		2,827		2,992		1,528		954.1		(41.4)		981		2,556		(61.6)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	52,023		52,470		47,375		45,426		45,635		(0.9)		14.0		104,493		90,505		15.5

NONINTEREST INCOME
Service charges on deposit accounts	1,651		1,596		1,663		1,599		1,519		3.4		8.7		3,247		3,033		7.1
Trust and investment fee income	1,103		1,137		1,042		898		942		(3.0)		17.1		2,240		1,765		26.9
Mortgage banking revenue	1,554		1,450		1,181		1,278		2,379		7.2		(34.7)		3,004		3,619		(17.0)
Interchange credits	1,960		1,698		1,862		1,858		1,788		15.4		9.6		3,658		3,365		8.7
Other noninterest income	2,562		1,363		3,158		2,305		2,778		88.0		(7.8)		3,925		4,758		(17.5)
Total noninterest income	$	8,830	$	7,244	$	8,906	$	7,938	$	9,406	21.9		(6.1)		$	16,074	$	16,540	(2.8)


											Q2 2026 vs.		Q2 2026 vs.		Six Months Ended June 30,
($ in thousands, except per share data)	Q2 2026		Q1 2026		Q4 2025		Q3 2025		Q2 2025		Q1 2026		Q2 2025		2026		2025		% Change
NONINTEREST EXPENSE
Salaries and employee benefits	$	18,462	$	19,639	$	18,582	$	18,642	$	17,742	(6.0)	%	4.1	%	$	38,101	$	34,182	11.5	%
Occupancy expense	2,495		2,567		2,461		2,406		2,472		(2.8)		0.9		5,062		5,010		1.0
Furniture and equipment expense	966		855		792		892		797		13.0		21.2		1,821		1,650		10.4
Software and data processing	5,335		5,140		5,197		5,155		4,819		3.8		10.7		10,475		9,510		10.1
Amortization of other intangible assets	1,975		1,980		2,000		2,039		2,272		(0.3)		(13.1)		3,955		4,550		(13.1)
Legal and professional fees	1,355		1,605		1,237		989		1,225		(15.6)		10.6		2,960		2,838		4.3
FDIC insurance premium expense	968		995		845		794		1,023		(2.7)		(5.4)		1,963		2,114		(7.1)
Marketing and advertising	275		311		367		315		384		(11.6)		(28.4)		586		638		(8.2)
Fraud losses	147		111		227		45		83		32.4		77.1		258		188		37.2

Other noninterest expense	3,690		3,853		3,791		3,102		3,593		(4.2)		2.7		7,543		7,477		0.9
Total noninterest expense	35,668		37,056		35,499		34,379		34,410		(3.7)		3.7		72,724		68,157		6.7

Income before income taxes	25,185		22,658		20,782		18,985		20,631		11.2		22.1		47,843		38,888		23.0
Income tax expense	6,320		5,570		4,895		4,637		5,124		13.5		23.3		11,890		9,617		23.6
NET INCOME	$	18,865	$	17,088	$	15,887	$	14,348	$	15,507	10.4		21.7		$	35,953	$	29,271	22.8

Weighted average shares outstanding – basic	33,451,484		33,428,444		33,426,198		33,419,291		33,374,265		0.1	%	0.2	%	33,440,028		33,362,632		0.2	%
Weighted average shares outstanding – diluted	33,478,698		33,447,767		33,446,103		33,435,862		33,388,013		0.1	%	0.3	%	33,462,937		33,377,165		0.3	%

Basic net income per common share	$	0.56	$	0.51	$	0.48	$	0.43	$	0.46	9.8	%	21.7	%	$	1.08	$	0.88	22.7	%
Diluted net income per common share	$	0.56	$	0.51	$	0.48	$	0.43	$	0.46	9.8	%	21.7	%	$	1.07	$	0.88	21.6	%

Dividends paid per common share	$	0.14	$	0.12	$	0.12	$	0.12	$	0.12	16.7	%	16.7	%	$	0.26	$	0.24	8.3	%


	Three Months Ended
	June 30, 2026						March 31, 2026						June 30, 2025
($ in thousands)	Average Balance		Interest		Yield/Rate		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	%	$	2,601,316	$	39,029	6.08	%	$	2,572,931	$	37,240	5.81	%
Residential real estate	1,484,165		20,276		5.46		1,450,114		19,311		5.33		1,378,940		18,959		5.50
Construction	338,695		5,454		6.46		347,973		5,631		6.56		352,803		5,697		6.48
Commercial	208,349		3,041		5.85		221,542		3,296		6.03		224,218		3,654		6.54
Consumer	250,295		3,491		5.59		262,174		3,534		5.47		298,544		4,018		5.40
Credit cards	4,125		110		10.69		4,369		100		9.29		6,122		117		7.66
Total loans	4,872,566		70,541		5.80		4,887,488		70,901		5.86		4,833,558		69,685		5.78

Investment securities
Taxable	684,116		5,387		3.15		665,729		5,114		3.07		683,028		5,331		3.12
Tax-exempt(1)	646		7		4.33		647		8		4.95		652		8		4.91

Interest-bearing deposits	173,726		1,600		3.69		269,380		2,458		3.70		143,171		1,588		4.45
Total earning assets	5,731,054		77,535		5.42		5,823,244		78,481		5.44		5,660,409		76,612		5.42
Cash and due from banks	43,885						44,182						46,620
Other assets	364,155						365,971						372,725
Allowance for credit losses	(58,586)						(58,742)						(58,369)
Total assets	$	6,080,508					$	6,174,655					$	6,021,385


	Three Months Ended
	June 30, 2026						March 31, 2026						June 30, 2025
($ in thousands)	Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate





















Interest-bearing liabilities
Interest-bearing checking	$	733,877	$	4,560	2.49	%	$	780,713	$	4,840	2.51	%	$	720,967	$	5,697	3.17	%
Money market and savings deposits	1,744,356		8,079		1.86		1,812,071		8,696		1.95		1,747,854		9,580		2.20
Time deposits	1,258,086		10,288		3.28		1,270,156		10,624		3.39		1,258,802		12,000		3.82
Brokered deposits	4,033		16		1.59		11,107		104		3.80		9,720		92		3.80
Interest-bearing deposits(4)	3,740,352		22,943		2.46		3,874,047		24,264		2.54		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		89,024		1,573		7.17		74,102		1,394		7.55
Total interest-bearing liabilities	3,831,082		24,530		2.57		3,963,071		25,837		2.64		3,861,445		29,368		3.05
Noninterest-bearing deposits	1,592,192						1,564,867						1,560,224
Accrued expenses and other liabilities	45,914						46,505						40,764
Stockholders’ equity	611,320						600,212						558,952
Total liabilities and stockholders’ equity	$	6,080,508					$	6,174,655					$	6,021,385

Net interest spread					2.85	%					2.80	%					2.37	%
Net interest margin					3.70						3.64						3.34
Net interest margin excluding accretion(3)					3.45						3.35						3.09
Cost of funds					1.81						1.90						2.17
Cost of deposits					1.73						1.81						2.07
Cost of debt					7.02						7.17						6.46


	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


	Six Months Ended June 30,
	2026						2025
($ in thousands)	Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate





















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

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


	Three Months Ended June 30,															Six Months Ended June 30,
($ in thousands, except per share data)	Q2 2026			Q1 2026			Q4 2025			Q3 2025			Q2 2025			6/30/2026			6/30/2025
The following reconciles return on average assets, average equity and return on average tangible common equity(1):
Net income	$	18,865		$	17,088		$	15,887		$	14,348		$	15,507		$	35,953		$	29,271
Annualized net income (A)	$	75,667		$	69,301		$	63,030		$	56,924		$	62,198		$	72,502		$	59,027

Net income	$	18,865		$	17,088		$	15,887		$	14,348		$	15,507		$	35,953		$	29,271
Add: amortization of other intangible assets, net of tax	1,479			1,493			1,529			1,541			1,708			2,972			3,425
Net income excluding amortization of other intangible assets – non-GAAP	20,344			18,581			17,416			15,889			17,215			38,925			32,696
Annualized net income excluding amortization of other intangible assets – non-GAAP (B)	$	81,600		$	75,356		$	69,096		$	63,038		$	69,049		$	78,495		$	65,934

Net income	$	18,865		$	17,088		$	15,887		$	14,348		$	15,507		$	35,953		$	29,271
Add: amortization of other intangible assets, net of tax	1,479			1,493			1,529			1,541			1,708			2,972			3,425



Adjusted net income – non-GAAP	20,344			18,581			17,416			15,889			17,215			38,925			32,696
Annualized adjusted net income – non-GAAP (C)	$	81,600		$	75,356		$	69,096		$	63,038		$	69,049		$	78,495		$	65,934

Net income	$	18,865		$	17,088		$	15,887		$	14,348		$	15,507		$	35,953		$	29,271
Less: income tax expense	6,320			5,570			4,895			4,637			5,124			11,890			9,617
Less: provision for credit losses	896			85			2,827			2,992			1,528			981			2,556
Pre-tax pre-provision net income – non-GAAP	$	26,081		$	22,743		$	23,609		$	21,977		$	22,159		$	48,824		$	41,444

Return on average assets – GAAP	1.24		%	1.12		%	1.02		%	0.95		%	1.03		%	1.18		%	0.97		%
Adjusted return on average assets – non-GAAP	1.34		%	1.22		%	1.11		%	1.05		%	1.15		%	1.28		%	1.09		%

Average assets	$	6,080,508		$	6,174,655		$	6,206,753		$	6,020,574		$	6,021,385		$	6,127,321		$	6,075,339

Average stockholders’ equity (D)	$	611,320		$	600,212		$	584,209		$	571,247		$	558,952		$	605,797		$	553,229
Less: average goodwill and core deposit intangible	(90,088)			(92,086)			(94,059)			(96,074)			(98,241)			(91,082)			(99,372)
Average tangible common equity (E)	$	521,232		$	508,126		$	490,150		$	475,173		$	460,711		$	514,715		$	453,857

Return on average common equity – GAAP (A)/(D)	12.38		%	11.55		%	10.79		%	9.96		%	11.13		%	11.97		%	10.67		%
Return on average tangible common equity – non-GAAP (B)/(E)	15.66		%	14.83		%	14.10		%	13.27		%	14.99		%	15.25		%	14.53		%


	Three Months Ended June 30,															Six Months Ended June 30,
($ in thousands, except per share data)	Q2 2026			Q1 2026			Q4 2025			Q3 2025			Q2 2025			6/30/2026			6/30/2025
The following reconciles efficiency ratio – GAAP and adjusted efficiency ratio – non-GAAP(2):
Noninterest expense (F)	$	35,668		$	37,056		$	35,499		$	34,379		$	34,410		$	72,724		$	68,157
Less: amortization of other intangible assets	(1,975)			(1,980)			(2,000)			(2,039)			(2,272)			(3,955)			(4,550)


Adjusted noninterest expense (G)	$	33,693		$	35,076		$	33,499		$	32,340		$	32,138		$	68,769		$	63,607

Net interest income (H)	$	52,919		$	52,555		$	50,202		$	48,418		$	47,163		$	105,474		$	93,061
Add: taxable-equivalent adjustment	86			89			92			83			81			175			161
Taxable-equivalent net interest income (I)	$	53,005		$	52,644		$	50,294		$	48,501		$	47,244		$	105,649		$	93,222

Noninterest income (J)	$	8,830		$	7,244		$	8,906		$	7,938		$	9,406		$	16,074		$	16,540


Adjusted noninterest income (K)	$	8,830		$	7,244		$	8,906		$	7,938		$	9,406		$	16,074		$	16,540

Efficiency ratio – GAAP (F)/(H)+(J)	57.76		%	61.97		%	60.06		%	61.00		%	60.83		%	59.83		%	62.19		%
Adjusted efficiency ratio – non-GAAP (G)/(I)+(K)	54.49		%	58.57		%	56.59		%	57.30		%	56.73		%	56.50		%	57.95		%


($ in thousands, except per share data)	Q2 2026		Q1 2026		Q4 2025		Q3 2025		Q2 2025

The following reconciles book value per common share and tangible book value per common share(1):
Stockholders’ equity (L)	$	616,075	$	602,714	$	589,873	$	577,207	$	565,194
Less: goodwill and core deposit intangible	(89,033)		(91,008)		(92,988)		(94,988)		(97,027)
Tangible common equity (M)	$	527,042	$	511,706	$	496,885	$	482,219	$	468,167

Shares of common stock outstanding (N)	33,416,336		33,451,063		33,413,503		33,421,672		33,374,265

Book value per common share – GAAP (L)/(N)	$	18.44	$	18.02	$	17.65	$	17.27	$	16.94
Tangible book value per common share – non-GAAP (M)/(N)	$	15.77	$	15.30	$	14.87	$	14.43	$	14.03

The following reconciles equity to assets and tangible common equity to tangible assets(1):
Stockholders’ equity (O)	$	616,075	$	602,714	$	589,873	$	577,207	$	565,194
Less: goodwill and core deposit intangible	(89,033)		(91,008)		(92,988)		(94,988)		(97,027)
Tangible common equity (P)	$	527,042	$	511,706	$	496,885	$	482,219	$	468,167

Assets (Q)	$	6,151,431	$	6,206,063	$	6,258,818	$	6,278,479	$	6,037,874
Less: goodwill and core deposit intangible	(89,033)		(91,008)		(92,988)		(94,988)		(97,027)
Tangible assets (R)	$	6,062,398	$	6,115,055	$	6,165,830	$	6,183,491	$	5,940,847

Period-end equity to assets – GAAP (O)/(Q)	10.02%		9.71%		9.42%		9.19%		9.36%
Period-end tangible common equity to tangible assets – non-GAAP (P)/(R)	8.69%		8.37%		8.06%		7.80%		7.88%


Regulatory Capital and Ratios for the Company
($ in thousands)	Q2 2026			Q1 2026			Q4 2025			Q3 2025			Q2 2025
Common equity	$	616,075		$	602,714		$	589,873		$	577,207		$	565,194
Goodwill(1)	(61,000)			(61,061)			(61,123)			(61,176)			(61,238)
Core deposit intangible(2)	(19,587)			(21,074)			(22,566)			(24,041)			(25,573)
DTAs that arise from net operating loss and tax credit carryforwards	—			—			(48)			(40)			(39)
Accumulated other comprehensive loss	6,089			5,270			4,593			4,759			5,603
Common Equity Tier 1 Capital	541,577			525,849			510,729			496,709			483,947
TRUPS	30,327			30,247			30,168			30,085			30,005
Tier 1 Capital	571,904			556,096			540,897			526,794			513,952
Allowable reserve for credit losses and other Tier 2 adjustments	60,991			59,933			60,661			60,852			60,605
Subordinated debt	58,825			58,782			58,893			39,409			44,236
Total Capital	$	691,720		$	674,811		$	660,451		$	627,055		$	618,793

Risk-Weighted Assets (“RWA”)	$	4,882,618		$	4,794,374		$	4,852,573		$	4,867,237		$	4,890,679
Average Assets (“AA”)	6,007,717			6,098,196			6,129,306			5,942,911			5,943,124

Common Equity Tier 1 Capital to RWA	11.09		%	10.97		%	10.52		%	10.21		%	9.90		%
Tier 1 Capital to RWA	11.71			11.60			11.15			10.82			10.51
Total Capital to RWA	14.17			14.08			13.61			12.88			12.65
Tier 1 Capital to AA (Leverage)	9.52			9.12			8.82			8.86			8.65


Regulatory Capital and Ratios for the Bank
($ in thousands)	Q2 2026		Q1 2026		Q4 2025		Q3 2025		Q2 2025
Common equity	$	675,039	$	660,598	$	648,279	$	639,670	$	627,838
Goodwill(1)	(61,000)		(61,061)		(61,123)		(61,176)		(61,238)
Core deposit intangible(2)	(19,587)		(21,074)		(22,566)		(24,041)		(25,573)

Accumulated other comprehensive loss	6,089		5,270		4,593		4,759		5,603
Common Equity Tier 1 Capital	600,541		583,733		569,183		559,212		546,630

Tier 1 Capital	600,541		583,733		569,183		559,212		546,630
Allowable reserve for credit losses and other Tier 2 adjustments	60,990		59,894		60,563		60,822		60,605

Total Capital	$	661,531	$	643,627	$	629,746	$	620,034	$	607,235

Risk-Weighted Assets (“RWA”)	$	4,879,247	$	4,791,223	$	4,844,639	$	4,864,871	$	4,888,558
Average Assets (“AA”)	6,002,596		6,093,905		6,122,775		5,939,890		5,940,411


($ in thousands)	June 30, 2026		% of Total Loans		March 31, 2026		% of Total Loans		December 31, 2025		% of Total Loans		September 30, 2025		% of Total Loans		June 30, 2025		% of Total Loans
Commercial real estate	$	2,603,014	53.37	%	$	2,599,815	53.62	%	$	2,643,996	53.95	%	$	2,642,601	54.12	%	$	2,603,974	53.95	%
Residential real estate	1,470,401		30.15		1,425,733		29.41		1,414,964		28.88		1,383,348		28.33		1,349,010		27.94
Construction	337,779		6.92		342,835		7.07		344,903		7.04		352,116		7.21		350,053		7.25
Commercial	220,712		4.52		220,833		4.56		226,006		4.61		221,598		4.54		224,092		4.64
Consumer	241,751		4.96		254,478		5.25		265,912		5.43		278,242		5.70		294,239		6.09
Credit cards	4,092		0.08		4,336		0.09		4,521		0.09		5,064		0.10		6,260		0.13
Total loans	4,877,749		100.00	%	4,848,030		100.00	%	4,900,302		100.00	%	4,882,969		100.00	%	4,827,628		100.00	%
Less: allowance for credit losses	(58,737)				(58,481)				(58,836)				(59,554)				(58,483)
Total loans, net	$	4,819,012			$	4,789,549			$	4,841,466			$	4,823,415			$	4,769,145


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

Classified loans
Substandard	$	84,285		$	82,337		$	57,366		$	48,470		$	19,930
Total classified loans	84,285			82,337			57,366			48,470			19,930
Special mention loans	72,957			97,771			73,401			70,997			65,564
Total classified and special mention loans	$	157,242		$	180,108		$	130,767		$	119,467		$	85,494

Classified loans	$	84,285		$	82,337		$	57,366		$	48,470		$	19,930
Other real estate owned	—			69			113			120			179
Repossessed assets	2,362			3,345			2,879			3,432			2,457
Total classified assets	$	86,647		$	85,751		$	60,358		$	52,022		$	22,566

Classified assets to total assets	1.41		%	1.38		%	0.96		%	0.83		%	0.37		%

Nonaccrual loans	$	64,818		$	64,958		$	39,960		$	24,378		$	16,782
90+ days delinquent accruing	20			—			255			153			215
Other real estate owned (“OREO”)	—			69			113			120			179
Repossessed property	2,362			3,345			2,879			3,432			2,457
Total nonperforming assets	$	67,200		$	68,372		$	43,207		$	28,083		$	19,633
Accruing borrowers experiencing financial difficulty loans (“BEFD”)	140			5,263			5,311			6,704			6,709
Total nonperforming assets and BEFDs modifications	$	67,340		$	73,635		$	48,518		$	34,787		$	26,342

Nonperforming assets to total assets	1.09		%	1.10		%	0.69		%	0.45		%	0.33		%

Total assets	$	6,151,431		$	6,206,063		$	6,258,818		$	6,278,479		$	6,037,874


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	%