Document

FOR IMMEDIATE RELEASE

For more information contact:

Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766

WEST BANCORPORATION, INC. ANNOUNCES SECOND QUARTER 2026 FINANCIAL RESULTS AND DECLARES INCREASED QUARTERLY DIVIDEND

West Des Moines, IA - West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported second quarter 2026 net income of $11.1 million, or $0.64 per diluted common share, compared to first quarter 2026 net income of $10.6 million, or $0.61 per diluted common share, and second quarter 2025 net income of $8.0 million, or $0.47 per diluted common share. On July 22, 2026, the Company’s Board of Directors declared a regular quarterly dividend of $0.26 per common share, an increase of $0.01 from the prior quarter and representing a record high quarterly dividend for the Company. The dividend is payable on August 19, 2026, to stockholders of record on August 5, 2026.

David Nelson, President and Chief Executive Officer of the Company, commented, “Our net income for the first half of 2026 has increased 37 percent compared to the first half of 2025. Our annualized return on average equity has improved to 16.06 percent for the first half of 2026, compared to 13.74 percent for the first half of 2025 and our annualized return on average assets has grown to 1.10 percent in the second quarter of 2026. As a result of our strong financial performance, we are excited to announce a $0.01 increase in our regular quarterly dividend. This marks the largest quarterly dividend in our Company’s history, providing shareholders with meaningful cash returns on their investments.”

Mr. Nelson added, “Our balance sheet remains exceptionally strong, supported by solid capital and liquidity levels. Credit quality remains pristine with no loans on nonaccrual status at June 30, 2026. Additionally, this marks our eighth consecutive quarter-end with no loans greater than 30 days past due.”

Second Quarter 2026 Compared to First Quarter 2026 Overview

•Quarterly net income was $11.1 million, an increase of $0.5 million, or 4.74 percent, compared to prior quarter.

•Quarterly return on average equity increased to 16.21 percent, compared to 15.91 percent in prior quarter.

•Loan balances were down slightly by $41.5 million, or 1.4 percent, at June 30, 2026 compared to March 31, 2026. However, average loan balances increased by $13.0 million in the second quarter of 2026 compared to the first quarter of 2026. We continue to experience notable loan payoffs as a result of secondary market refinancings and asset and business sales. The change in loan mix was primarily due to reclassifications resulting from completed construction projects moving to permanent financing.

•No credit loss expense on loans was recorded in either the second or first quarter of 2026.

•The allowance for credit losses to total loans was 1.03 percent as of June 30, 2026, compared to 1.02 percent as of March 31, 2026. There were no nonaccrual loans at June 30, 2026 or March 31, 2026. Substandard loans increased to $14.4 million as of June 30, 2026, from $0 as of March 31, 2026. The substandard loans balance consisted of loans to two borrowers, which have loans in the commercial and commercial real estate segments. In both instances, the Company believes the loans within the relationship are sufficiently collateralized. Watch list loans decreased from $41.3 million as of March 31, 2026 to $7.1 million as of June 30, 2026. This decrease was primarily due to loan payoffs totaling approximately $32.2 million.

•Deposits, excluding brokered deposits, increased $15.9 million, or 0.5 percent, in the second quarter of 2026. Brokered deposits were reduced by $6.0 million. As of June 30, 2026, estimated uninsured deposits, which exclude deposits in a reciprocal deposit network, brokered deposits and public funds protected by state programs, accounted for approximately 27.2 percent of total deposits.

•Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.69 percent for the second quarter of 2026, compared to 2.59 percent for the first quarter of 2026. Net interest income for the second quarter of 2026 was $25.5 million, compared to $24.4 million for the first quarter of 2026. The improvement was primarily due to an increase in average loan balances and increase in loan yields for the second quarter of 2026. Loan yields increased by 6 basis points in the second quarter of 2026.

•The efficiency ratio (a non-GAAP measure) was 48.78 percent for the second quarter of 2026, compared to 49.85 percent for the first quarter of 2026.

•The tangible common equity ratio was 6.97 percent as of June 30, 2026, compared to 6.75 percent as of March 31, 2026.

Second Quarter 2026 Compared to Second Quarter 2025 Overview

•Quarterly net income was $11.1 million, an increase of $3.1 million, or 38.8 percent, compared to prior year.

•Quarterly return on average equity increased to 16.21 percent, compared to 13.65 percent in prior year.

•Loan balances were down slightly by $16.2 million at June 30, 2026, or 0.5 percent, compared to June 30, 2025. Average loan balances for the two comparable quarterly periods were relatively unchanged. We continue to experience notable loan payoffs as a result of secondary market refinancings and asset and business sales. The change in loan mix was primarily due to reclassifications resulting from completed construction projects moving to permanent financing and commercial loan restructurings adding real estate collateral.

•Deposits, excluding brokered deposits, increased $50.7 million, or 1.6 percent, as of June 30, 2026, compared to June 30, 2025. Brokered deposits were reduced by $97.8 million.

•Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.69 percent for the second quarter of 2026, compared to 2.27 percent for the second quarter of 2025. Net interest income for the second quarter of 2026 was $25.5 million, compared to $21.4 million for the second quarter of 2025. The increase in net interest margin and net interest income was primarily due to a decrease in interest expense on deposits. The cost of deposits decreased by 46 basis points in the second quarter of 2026 compared to the second quarter of 2025. This was primarily driven by the decline in deposit rates in response to the reduction in the federal funds rate in the second half of 2025.

•The efficiency ratio (a non-GAAP measure) was 48.78 percent for the second quarter of 2026, compared to 56.45 percent for the second quarter of 2025. The improvement in the efficiency ratio in the second quarter of 2026 compared to the second quarter of 2025 was primarily due to the increase in net interest income.

•The tangible common equity ratio was 6.97 percent as of June 30, 2026, compared to 5.94 percent as of June 30, 2025. The increase in the tangible common equity ratio was due to growth in retained earnings and a decrease in accumulated other comprehensive loss.

The Company filed its report on Form 10-Q with the Securities and Exchange Commission today. Please refer to that document for a more in-depth discussion of the Company’s financial results. The Form 10-Q is available on the Investor Relations section of West Bank’s website at www.westbankstrong.com.

The Company will discuss its results in a conference call scheduled for 2:00 p.m. Central Time on Thursday, July 23, 2026. The telephone number for the conference call is 800-715-9871. The conference ID for the conference call is 7846129. A recording of the call will be available until August 6, 2026, by dialing 800-770-2030. The conference ID for the replay call is 7846129 followed by the # key.

About West Bancorporation, Inc. (Nasdaq: WTBA)

West Bancorporation, Inc. is headquartered in West Des Moines, Iowa. Serving customers since 1893, West Bank, a wholly-owned subsidiary of West Bancorporation, Inc., is a community bank that focuses on lending, deposit services, and trust services for small- to medium-sized businesses and consumers. West Bank has six offices in the Des Moines, Iowa metropolitan area, one office in Coralville, Iowa, and four offices in Minnesota in the cities of Rochester, Owatonna, Mankato and St. Cloud.

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meanings of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may appear throughout this report. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” “forecasts,” “plans,” “targets,” “future,” “confident,” “potentially,” “probably,” “outlook,” “may,” “should,” “would,” “could,” “will,” “strategy,” “plan,” “opportunity,” “will be,” “will likely result,” “will continue” or similar references, as well as the negative of such words, or references to estimates, predictions or future events. Forward-looking statements are not historical facts but instead represent management’s current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Such forward-looking statements are based upon certain underlying assumptions, known and unknown, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results may differ, possibly materially, from these forward-looking statements. Risks and uncertainties that may affect future results include, but are not limited to: interest rate risk, including the effects of changes in interest rates; fluctuations in the values of the securities held in our investment portfolio, including as a result of rising interest rates; competitive pressures, including from non-bank competitors such as credit unions, “fintech” companies and digital asset service providers; technological changes implemented by us and other parties, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence; pricing pressures on loans and deposits; our ability to successfully manage liquidity risk; changes in credit and other risks posed by the Company’s loan portfolio, including declines in commercial or residential real estate values or changes in the allowance for credit losses dictated by new market conditions, accounting standards or regulatory requirements; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; the threat or imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and the value of products produced by our commercial borrowers; effects on the U.S. economy resulting from actions taken by the federal government, including executive orders and immigration enforcement; changes in local, national and international economic conditions, including the level and impact of inflation, and future monetary policies of the Federal Reserve in response thereto, and possible recession; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks; changes in legal and regulatory requirements, limitations and costs; changes in customers’ acceptance of the Company’s products and services; the occurrence of fraudulent activity, breaches or failures of our or our third-party partners’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; unexpected outcomes of existing or new litigation involving the Company; the monetary, trade and other regulatory policies of the U.S. government; the effects of acts of war or terrorism, including the wars in Iran and Ukraine, ongoing conflicts in the Middle East, and other international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control; widespread disease, pandemics or epidemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their business; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies; talent and labor shortages; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or customers; that availability of future equity and debt issuances and other capital raising opportunities on favorable terms; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission (the “SEC”). The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, any of the forward-looking statements that the Company makes in this report or the documents the Company files with or furnishes to the SEC are based only on information then actually known to the Company and upon management’s beliefs and assumptions at the time they are made, which may turn out to be wrong because of inaccurate assumptions they might make, because of the factors described above or because of other factors that the Company cannot foresee. Forward-looking statements speak only as of the date they are made, and the Company does not undertake and specifically disclaims any obligation to revise or update such forward-looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.


WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)

	As of and for the Quarter Ended															For the Six Months Ended
KEY PERFORMANCE RATIOS AND OTHER METRICS	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			June 30, 2026			June 30, 2025
Return on average assets(1)	1.10		%	1.06		%	0.72		%	0.92		%	0.80		%	1.08		%	0.80		%
Return on average equity(2)	16.21			15.91			11.33			15.25			13.65			16.06			13.74
Net interest margin(3)(13)	2.69			2.59			2.47			2.36			2.27			2.64			2.27
Yield on interest-earning assets(4)(13)	5.10			5.04			5.02			5.13			5.07			5.07			5.06
Cost of interest-bearing liabilities	2.88			2.90			3.02			3.26			3.28			2.89			3.27
Efficiency ratio(5)(13)	48.78			49.85			50.21			54.06			56.45			49.31			56.41
Nonperforming assets to total assets(6)	0.00			0.00			0.00			0.00			0.00
ACL ratio(7)	1.03			1.02			1.02			1.01			1.03
Loans/total assets	73.21			74.59			72.47			75.50			73.12
Loans/total deposits	88.20			89.71			86.54			91.00			87.45
Tangible common equity ratio(8)	6.97			6.75			6.42			6.40			5.94

COMMON SHARE DATA
Earnings per common share (basic)	$	0.65		$	0.62		$	0.44		$	0.55		$	0.47		$	1.27		$	0.94
Earnings per common share (diluted)	0.64			0.61			0.43			0.55			0.47			1.26			0.93
Dividends per common share	0.25			0.25			0.25			0.25			0.25			0.50			0.50
Book value per common share(9)	16.49			15.90			15.70			15.06			14.22
Closing stock price	26.53			23.79			22.19			20.32			19.63
Market price/book value(10)	160.89		%	149.62		%	141.34		%	134.93		%	138.05		%
Price earnings ratio(11)	10.18			9.40			12.71			9.31			10.41
Annualized dividend yield(12)	3.77		%	4.20		%	4.51		%	4.92		%	5.09		%

REGULATORY CAPITAL RATIOS
Consolidated:
Total risk-based capital ratio	13.46		%	12.99		%	12.77		%	12.54		%	12.53		%
Tier 1 risk-based capital ratio	10.77			10.34			10.14			9.93			9.89
Tier 1 leverage capital ratio	8.91			8.74			8.44			8.51			8.33
Common equity tier 1 ratio	10.18			9.77			9.56			9.37			9.32
West Bank:
Total risk-based capital ratio	13.97		%	13.53		%	13.35		%	13.17		%	13.21		%
Tier 1 risk-based capital ratio	13.03			12.61			12.44			12.26			12.29
Tier 1 leverage capital ratio	10.79			10.66			10.35			10.50			10.36
Common equity tier 1 ratio	13.03			12.61			12.44			12.26			12.29

(1) Annualized net income divided by average assets.

(2) Annualized net income divided by average stockholders’ equity.

(3) Annualized tax-equivalent net interest income divided by average interest-earning assets.

(4) Annualized tax-equivalent interest income on interest-earning assets divided by average interest-earning assets.

(5) Noninterest expense (excluding other real estate owned expense and write-down of premises) divided by noninterest income (excluding net securities gains/losses and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income.

(6) Total nonperforming assets divided by total assets.

(7) Allowance for credit losses on loans divided by total loans.

(8) Common equity less intangible assets (none held) divided by tangible assets.

(9) Includes accumulated other comprehensive loss.

(10) Closing stock price divided by book value per common share.

(11) Closing stock price divided by annualized earnings per common share (basic).

(12) Annualized dividend divided by period end closing stock price.

(13) A non-GAAP measure.


WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	As of
CONDENSED BALANCE SHEETS	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Assets
Cash and due from banks	$	30,986	$	40,018	$	25,171	$	26,875	$	35,796
Interest-earning deposits with banks	260,633		180,218		324,502		109,265		212,450
Securities purchased under agreements to resell	142,080		141,742		121,413		96,792		96,955
Securities available for sale, at fair value	446,575		456,410		468,447		537,856		536,709

Federal Home Loan Bank stock, at cost	15,168		15,180		15,167		15,190		15,311
Loans	2,950,114		2,991,638		3,001,690		3,008,888		2,966,357
Allowance for credit losses	(30,530)		(30,523)		(30,525)		(30,515)		(30,539)
Loans, net	2,919,584		2,961,115		2,971,165		2,978,373		2,935,818
Premises and equipment, net	106,626		107,619		108,380		109,212		109,806
Bank-owned life insurance	46,751		46,500		46,192		45,875		45,567
Other assets	61,261		62,171		61,807		66,042		68,257
Total assets	$	4,029,664	$	4,010,973	$	4,142,244	$	3,985,480	$	4,056,669

Liabilities and Stockholders’ Equity
Deposits	$	3,344,900	$	3,334,972	$	3,468,470	$	3,306,517	$	3,391,993

Borrowings	374,037		375,221		376,406		389,076		390,260
Other liabilities	29,685		30,037		31,383		34,754		33,486
Stockholders’ equity	281,042		270,743		265,985		255,133		240,930
Total liabilities and stockholders’ equity	$	4,029,664	$	4,010,973	$	4,142,244	$	3,985,480	$	4,056,669

	For the Quarter Ended
AVERAGE BALANCES	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Assets	$	4,029,324	$	4,027,218	$	4,104,279	$	4,004,769	$	4,016,490
Loans	2,984,527		2,971,497		2,982,754		2,959,962		2,989,638
Deposits	3,347,452		3,348,255		3,418,539		3,333,800		3,353,982
Stockholders’ equity	273,967		269,453		259,932		242,245		234,399


WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	As of
LOANS	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Commercial	$	463,248	$	471,423	$	505,059	$	511,316	$	500,854
Real estate:
Construction, land and land development	333,753		376,059		426,833		448,660		459,037
1-4 family residential first mortgages	130,951		139,118		93,122		87,784		86,173
Home equity	25,999		27,084		26,088		27,083		24,285
Commercial	1,977,477		1,958,189		1,929,766		1,912,235		1,875,857
Consumer and other	21,347		22,257		23,374		24,697		22,900
	2,952,775		2,994,130		3,004,242		3,011,775		2,969,106
Net unamortized fees and costs	(2,661)		(2,492)		(2,552)		(2,887)		(2,749)
Total loans	$	2,950,114	$	2,991,638	$	3,001,690	$	3,008,888	$	2,966,357
Less: allowance for credit losses	(30,530)		(30,523)		(30,525)		(30,515)		(30,539)
Net loans	$	2,919,584	$	2,961,115	$	2,971,165	$	2,978,373	$	2,935,818

CREDIT QUALITY
Pass	$	2,931,300	$	2,952,824	$	2,952,015	$	2,973,103	$	2,958,318
Watch	7,112		41,306		52,227		38,672		10,788
Substandard	14,363		—		—		—		—
Doubtful	—		—		—		—		—
Total loans	$	2,952,775	$	2,994,130	$	3,004,242	$	3,011,775	$	2,969,106

DEPOSITS
Noninterest-bearing demand	$	553,660	$	511,013	$	540,358	$	512,869	$	521,990
Interest-bearing demand	506,574		489,990		577,814		448,731		461,207
Savings and money market - non-brokered	1,705,057		1,731,835		1,739,790		1,677,543		1,749,049
Money market - brokered	100,450		86,304		99,718		121,849		98,877
Total nonmaturity deposits	2,865,741		2,819,142		2,957,680		2,760,992		2,831,123
Time - non-brokered	469,159		485,658		455,944		462,542		451,463
Time - brokered	10,000		30,172		54,846		82,983		109,407
Total time deposits	479,159		515,830		510,790		545,525		560,870
Total deposits	$	3,344,900	$	3,334,972	$	3,468,470	$	3,306,517	$	3,391,993

BORROWINGS

Subordinated notes, net	$	80,287	$	80,221	$	80,156	$	80,090	$	80,024
Federal Home Loan Bank advances	270,000		270,000		270,000		270,000		270,000
Long-term debt	23,750		25,000		26,250		38,986		40,236
Total borrowings	$	374,037	$	375,221	$	376,406	$	389,076	$	390,260

STOCKHOLDERS’ EQUITY
Preferred stock	$	—	$	—	$	—	$	—	$	—
Common stock	3,000		3,000		3,000		3,000		3,000
Additional paid-in capital	37,312		36,553		37,231		36,473		35,773
Retained earnings	307,408		300,596		294,259		291,069		285,990
Accumulated other comprehensive loss	(66,678)		(69,406)		(68,505)		(75,409)		(83,833)
Total stockholders’ equity	$	281,042	$	270,743	$	265,985	$	255,133	$	240,930


WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	For the Quarter Ended
CONSOLIDATED STATEMENTS OF INCOME	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Interest income:
Loans, including fees	$	42,031	$	40,946	$	41,992	$	42,198	$	41,666
Securities:
Taxable	2,097		2,143		2,355		2,643		2,685
Tax-exempt	636		638		677		739		742
Deposits with banks	2,130		2,047		2,808		2,087		2,847
Securities purchased under agreements to resell	1,580		1,617		1,370		1,258		22
Total interest income	48,474		47,391		49,202		48,925		47,962
Interest expense:
Deposits	19,184		19,261		21,112		22,539		22,676

Subordinated notes	1,110		1,104		1,109		1,107		1,104
Federal Home Loan Bank advances	2,274		2,244		2,316		2,292		2,259
Long-term debt	385		397		459		486		504
Total interest expense	22,953		23,006		24,996		26,424		26,543
Net interest income	25,521		24,385		24,206		22,501		21,419
Credit loss expense	—		—		—		—		—
Net interest income after credit loss expense	25,521		24,385		24,206		22,501		21,419
Noninterest income:
Service charges on deposit accounts	476		508		493		491		486
Debit card interchange income	514		472		493		477		478
Trust services	1,048		1,010		964		894		801
Increase in cash value of bank-owned life insurance	313		308		317		308		295


Realized securities losses, net	—		—		(3,959)		—		—
Other income	245		256		800		333		350
Total noninterest income (loss)	2,596		2,554		(892)		2,503		2,410
Noninterest expense:
Salaries and employee benefits	7,987		7,632		7,579		7,457		7,343
Occupancy and equipment	2,006		2,006		2,083		2,090		2,034
Technology and software	822		774		789		794		791
Data processing	545		596		673		663		643
FDIC insurance	444		473		475		637		670
Professional fees	298		278		297		303		303

Other expenses	1,665		1,706		1,833		1,606		1,701
Total noninterest expense	13,767		13,465		13,729		13,550		13,485
Income before income taxes	14,350		13,474		9,585		11,454		10,344
Income taxes	3,277		2,902		2,160		2,140		2,365
Net income	$	11,073	$	10,572	$	7,425	$	9,314	$	7,979

Basic earnings per common share	$	0.65	$	0.62	$	0.44	$	0.55	$	0.47
Diluted earnings per common share	$	0.64	$	0.61	$	0.43	$	0.55	$	0.47



WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	For the Six Months Ended
CONSOLIDATED STATEMENTS OF INCOME	June 30, 2026		June 30, 2025
Interest income:
Loans, including fees	$	82,977	$	82,654
Securities:
Taxable	4,240		5,473
Tax-exempt	1,274		1,485
Deposits with banks	4,177		4,464
Securities purchased under agreements to resell	3,197		22
Total interest income	95,865		94,098
Interest expense:
Deposits	38,445		44,099

Subordinated notes	2,214		2,209
Federal Home Loan Bank advances	4,518		4,494
Long-term debt	782		1,022
Total interest expense	45,959		51,824
Net interest income	49,906		42,274
Credit loss expense	—		—
Net interest income after credit loss expense	49,906		42,274
Noninterest income:
Service charges on deposit accounts	984		957
Debit card interchange income	986		924
Trust services	2,058		1,578
Increase in cash value of bank-owned life insurance	621		577



Other income	501		617
Total noninterest income	5,150		4,653
Noninterest expense:
Salaries and employee benefits	15,619		14,347
Occupancy and equipment	4,012		3,997
Technology and software	1,596		1,577
Data processing	1,141		1,260
FDIC insurance	917		1,257
Professional fees	576		611

Other expenses	3,371		3,499
Total noninterest expense	27,232		26,548
Income before income taxes	27,824		20,379
Income taxes	6,179		4,558
Net income	$	21,645	$	15,821

Basic earnings per common share	$	1.27	$	0.94
Diluted earnings per common share	$	1.26	$	0.93

NON-GAAP FINANCIAL MEASURES

This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company’s presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis and the presentation of the efficiency ratio on an adjusted and FTE basis, excluding certain income and expenses. Management believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. These measures are considered standard measures of comparison within the banking industry. Additionally, management believes providing measures on a FTE basis enhances the comparability of income arising from taxable and nontaxable sources. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. These non-GAAP disclosures should not be considered an alternative to the Company’s GAAP results. The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on a fully taxable equivalent basis and efficiency ratio on an adjusted and FTE basis.


(in thousands)	For the Quarter Ended															For the Six Months Ended
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			June 30, 2026			June 30, 2025
Reconciliation of net interest income and net interest margin on a FTE basis to GAAP:
Net interest income (GAAP)	$	25,521		$	24,385		$	24,206		$	22,501		$	21,419		$	49,906		$	42,274
Tax-equivalent adjustment (1)	75			72			70			61			59			147			125
Net interest income on a FTE basis (non-GAAP)	25,596			24,457			24,276			22,562			21,478			50,053			42,399
Average interest-earning assets	3,820,041			3,821,463			3,893,827			3,790,154			3,799,081			3,820,748			3,758,487
Net interest margin on a FTE basis (non-GAAP)	2.69		%	2.59		%	2.47		%	2.36		%	2.27		%	2.64		%	2.27		%

Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP:
Net interest income on a FTE basis (non-GAAP)	$	25,596		$	24,457		$	24,276		$	22,562		$	21,478		$	50,053		$	42,399
Noninterest income	2,596			2,554			(892)			2,503			2,410			5,150			4,653
Adjustment for realized securities losses, net	—			—			3,959			—			—			—			—
Adjustment for losses on disposal of premises and equipment, net	28			2			—			—			—			30			8
Adjusted income	28,220			27,013			27,343			25,065			23,888			55,233			47,060
Noninterest expense	13,767			13,465			13,729			13,550			13,485			27,232			26,548
Efficiency ratio on an adjusted and FTE basis (non-GAAP) (2)	48.78		%	49.85		%	50.21		%	54.06		%	56.45		%	49.31		%	56.41		%

(1) Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt securities and loans. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results, as it enhances the comparability of income arising from taxable and nontaxable sources.

(2) The efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest income and expenses. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the Company's financial performance. It is a standard measure of comparison within the banking industry. A lower ratio is more desirable.