Bank First Corp

Previous wording

Bank First Corporation is a Wisconsin corporation that was organized primarily to serve as the holding company for Bank First, N.A. Bank First, N.A., which was incorporated in 1894, is a nationally-chartered bank headquartered in Manitowoc, Wisconsin. It is a member of the Board of Governors of the Federal Reserve System (“Federal Reserve”), and is regulated by the Office of the Comptroller of the Currency (“OCC”). Including its headquarters in Manitowoc, Wisconsin, the Bank has twenty-seven banking locations in Manitowoc, Outagamie, Brown, Winnebago, Sheboygan, Shawano, Waupaca, Ozaukee, Monroe, Fond du Lac, Waushara, Dane, Columbia, Door and Jefferson counties in Wisconsin. The Bank offers loan, deposit and treasury management products at each of its banking locations.

Current wording

Bank First Corporation is a Wisconsin corporation that was organized primarily to serve as the holding company for Bank First, N.A. Bank First, N.A., which was incorporated in 1894, is a nationally-chartered bank headquartered in Manitowoc, Wisconsin. It is a member of the Board of Governors of the Federal Reserve System (“Federal Reserve”), and is regulated by the Office of the Comptroller of the Currency (“OCC”). Including its headquarters in Manitowoc, Wisconsin, the Bank has thirty-eight banking locations in Brown, Columbia, Dane, Door, Fond du Lac, Green, Jefferson, Manitowoc, Monroe, Outagamie, Ozaukee, Rock, Shawano, Sheboygan, Walworth, Waupaca, Waushara, and Winnebago counties in the State of Wisconsin and Winnebago county in the State of Illinois. The Bank offers loan, deposit, treasury management, trust, and wealth management services at each of its banking locations.

Previous wording

Net interest and dividend income increased by $2.4 million to $38.3 million for the three months ended September 30, 2025 compared to $35.9 million for three months ended September 30, 2024. Total average interest-earning assets were $3.95 billion for the three months ended September 30, 2025, up from $3.83 billion for the same period in 2024. In addition, average rates paid on interest-bearing liabilities declined from 2.79% for the three months ended September 30, 2024, to 2.52% for the three months ended September 30, 2025. Net interest margin and net interest income are influenced by internal and external factors. Internal factors include balance sheet changes on both volume and mix and pricing decisions, and external factors include changes in market interest rates, competition and the shape of the interest rate yield curve.

Current wording

Net interest and dividend income increased by $16.7 million to $53.2 million for the three months ended March 31, 2026 compared to $36.5 million for three months ended March 31, 2025. The increase in net interest income was primarily due to growth in interest earning assets over the last three months, resulting from the acquisition of Centre. Total average interest-earning assets were $5.49 billion for the three months ended March 31, 2026, up from $4.10 billion for the same period in 2025. In addition, growth of $0.9 million in interest-bearing liabilities, from $2.84 billion for the three months ended March 31, 2025 to $3.75 billion for the three months ended March 31, 2026, was partially offset by average rates paid on these liabilities declining from 2.65% for the three months ended March 31, 2025, to 2.20% for the three months ended March 31, 2026. Bank First repaid $65.0 million in FHLB borrowings assumed from Centre during the first quarter of 2026, triggering the recognition of $1.3 million in purchase accounting fair value adjustments, reducing interest expense and causing the rate paid on other borrowings to decrease to 0.95% on an annualized basis during the first quarter of 2026. Net interest margin and net interest income are influenced by internal and external factors. Internal factors include balance sheet changes on both volume and mix and pricing decisions, and external factors include changes in market interest rates, competition and the shape of the interest rate yield curve.

Previous wording

Interest Income. Total interest income increased $1.4 million, or 2.6%, to $55.4 million for the three months ended September 30, 2025 compared to $54.0 million for the same period in 2024. A combination of yields on newly originated loans during the quarter exceeding the portfolio average as well as strong yield improvements on maturing loans which renewed during the quarter resulted in a 10 basis point increase in the average rate earned on the Bank’s loan portfolio compared to the prior quarter. The average balance of interest-earning assets increased by $114.3 million during the three months ended September 30, 2025 compared to the same period in 2024. These improvements were offset by a reduction of $0.9 million in interest income from the accretion of purchase accounting fair value marks during the third quarter of 2025 compared to the prior-year third quarter.

Current wording

Interest Income. Total interest income increased $18.6 million, or 33.7%, to $73.6 million for the three months ended March 31, 2026 compared to $55.0 million for the same period in 2025. The increase in total interest income was primarily due to the aforementioned growth in interest earnings assets resulting from the acquisition of Centre. The average balance of interest-earning assets increased by $1.39 billion during the three months ended March 31, 2026 compared to the same period in 2025. Interest income from the accretion of purchase accounting fair value marks increased by $2.7 million in the first quarter of 2026 compared to the prior-year first quarter.

Previous wording

Interest Expense. Interest expense decreased $0.9 million, or 5.2%, to $17.2 million for the three months ended September 30, 2025 compared to $18.1 million for the same period in 2024.

Current wording

Interest Expense. Interest expense increased $1.9 million, or 10.2%, to $20.4 million for the three months ended March 31, 2026 compared to $18.5 million for the same period in 2025.

Previous wording

Other borrowed funds, the Company’s highest-cost source of funding, saw average balances decline by $0.9 million to $5.7 million during the third quarter of 2025 compared to $6.6 million during the same period in the prior year. Rates paid on these funds remained consistent, leading to a decline of $0.2 million in interest expense.

Current wording

Other borrowed funds, the Company’s highest-cost source of funding, saw average balances decline by $2.3 million to $144.6 million during the first quarter of 2026 compared to $147.0 million during the same period in the prior year. Rates paid on these funds declined due to the aforementioned recognition of $1.3 million in purchase accounting fair value adjustments on acquired balances that were paid off prior to contractual maturity.

Previous wording

We recorded a provision of $0.7 million for credit loss during the three months ended September 30, 2025 compared to no provision for credit loss during the same period in 2024. Economic forecasts, primarily US gross domestic product projections, increased slightly during the third quarter of 2025 while projections for unemployment also increased. We incurred minimal net charge-offs during the three months ended September 30, 2025 compared to net charge-offs of $0.3 million during the three months ended September 30, 2024. The Bank’s loan portfolio continues to exhibit very little credit stress. The ACL - Loans was $44.5 million, or 1.23% of total loans, at September 30, 2025 compared to $45.2 million, or 1.30% of total loans at September 30, 2024.

Current wording

We did not record a provision for credit loss during the three months ended March 31, 2026 compared to recording a $0.4 million provision for credit loss during the same period in 2025. Economic forecasts, primarily US gross domestic product projections, increased slightly during the first quarter of 2026 while projections for unemployment also increased. We incurred $0.1 million net charge-offs during the three months ended March 31, 2026 compared to net charge-offs of $0.8 million during the three months ended March 31, 2025. The Bank’s loan portfolio continues to exhibit very little credit stress. The acquisition of Centre led to an increase of $12.8 million of ACL – Loans related to the acquired portfolio. The ACL - Loans was $57.1 million, or 1.26% of total loans, at March 31, 2026 compared to $43.7 million, or 1.23% of total loans at March 31, 2025.

Previous wording

Noninterest Income. Noninterest income is an important component of our total revenues. A significant portion of our noninterest income has historically been associated with service charges and income from the Bank’s unconsolidated subsidiary, Ansay. Other sources of noninterest income include loan servicing fees and gains on sales of mortgage loans.

Current wording

Noninterest Income. Noninterest income is an important component of our total revenues. A significant portion of our noninterest income has historically been associated with service charges and income from the Bank’s unconsolidated subsidiary, Ansay. The Centre acquisition introduced a new Trust and Wealth Management business line in the first quarter of 2026. Other sources of noninterest income include loan servicing fees and gains on sales of mortgage loans.

Previous wording

Noninterest income increased $1.1 million to $6.0 million for the three months ended September 30, 2025 compared to$4.9 million for the same period in 2024. Income provided by the Bank’s investment in Ansay totaled $1.3 million during the third quarter of 2025, up $0.3 million from the prior-year third quarter. Positive valuation adjustments to the Bank’s MSRs totaling $0.2 million during the third quarter of 2025 compared favorably to $0.3 million in negative valuation adjustments during the third quarter of 2024. Finally, gains on sales of mortgage loans totaled $0.5 million during the third quarter of 2025, up from $0.4 million in the prior-year third quarter.

Current wording

Noninterest income increased $3.9 million to $10.5 million for the three months ended March 31, 2026 compared to$6.6 million for the same period in 2025. This increase was primarily the result of higher service charge and loan servicing income provided by added operational scale from the acquisition of Centre. Income provided by the Bank’s investment in Ansay totaled $1.0 million during the first quarter of 2026, down $0.2 million from the prior-year first quarter. Income provided by Trust and Wealth Management was $1.6 million during the first quarter of 2026. Assets under management of this department totaled $798.4 million as of March 31, 2026. Finally, gains on sales of mortgage loans totaled $1.1 million during the first quarter of 2026, up from $0.3 million in the prior-year first quarter.

Previous wording

Income Tax Expense. We recorded a provision for income taxes of $4.5 million for the three months ended September 30, 2025 compared to a provision of $4.1 million for the same period during 2024, reflecting effective tax rates of 19.9% for both periods. The effective tax rates were reduced from the statutory federal and state income tax rates during both periods as a result of tax-exempt interest income produced by certain qualifying loans and investments in the Bank’s portfolios.

Current wording

Income Tax Expense. We recorded a provision for income taxes of $4.7 million for the three months ended March 31, 2026 compared to a provision of $3.9 million for the same period during 2025, reflecting effective tax rates of 19.1% for the first quarter of 2026 compared to 17.5% during first quarter 2025. The effective tax rates were reduced from the statutory federal and state income tax rates during both periods as a result of tax-exempt interest income produced by certain qualifying loans and investments in the Bank’s portfolios. Tax-exempt income during the first quarter of 2025 resulted from a death benefit on life insurance, further reducing the effective tax rate for that quarter.

Previous wording

Investment Securities. The carrying value of total investment securities decreased by $59.9 million to $273.9 million at September 30, 2025, from $333.8 million at December 31, 2024. The decrease in investments was primarily attributed to the maturity of short-duration securities during the first quarter of 2025. These investments were acquired during the fourth quarter of 2024 to meet heightened needs for collateral due to a seasonal increase in collateralized deposits.

Current wording

Investment Securities. The carrying value of total investment securities increased by $333.0 million to $601.2 million at March 31, 2026, from $268.1 million at December 31, 2025. The increase in investments was primarily attributed to the investment portfolio acquired from Centre during the first quarter of 2026.

Previous wording

Stockholders’ Equity. Total stockholders’ equity decreased $11.6 million, or 1.8%, to $628.1 million at September 30, 2025 from $639.7 million at December 31, 2024. Repurchases of the Company’s common stock totaling $22.0 million and dividends declared totaling $48.1 million offset the positive impact of earnings totaling $53.1 million during the first nine months of the year.

Current wording

Stockholders’ Equity. Total stockholders’ equity increased $176.0 million, or 27.3%, to $819.9 million at March 31, 2026 from $643.8 million at December 31, 2025. Repurchases of the Company’s common stock totaling $3.1 million and dividends declared totaling $5.6 million offset the positive impact of earnings totaling $20.0 million during the first three months of the 2026. The largest contributor to this increase was the Centre acquisition, which added $168.5 million to stockholders’ equity.

Previous wording

Our lending activities are principally conducted in the state of Wisconsin. The Bank makes commercial and industrial loans, commercial real estate loans, construction and development loans, residential real estate loans, and a variety of consumer loans and other loans. Much of the loans made by the Bank are secured by real estate collateral. The Bank’s commercial business loans are primarily made based on the cash flow of the borrower and secondarily on the underlying collateral provided by the borrower, with liquidation of the underlying real estate collateral typically being viewed as the primary source of repayment in the event of borrower default. Although commercial business loans are also often collateralized by equipment, inventory, accounts receivable, or other business assets, the liquidation of collateral in the event of default is often an insufficient source of repayment. Repayment of the Bank’s residential loans are generally dependent on the health of the employment market in the borrowers’ geographic areas and that of the general economy with liquidation of the underlying real estate collateral being typically viewed as the primary source of repayment in the event of borrower default.

Current wording

Our lending activities are principally conducted in the states of Wisconsin and Illinois. The Bank makes commercial and industrial loans, commercial real estate loans, construction and development loans, residential real estate loans, and a variety of consumer loans and other loans. Much of the loans made by the Bank are secured by real estate collateral. The Bank’s commercial business loans are primarily made based on the cash flow of the borrower and secondarily on the underlying collateral provided by the borrower, with liquidation of the underlying real estate collateral typically being viewed as the primary source of repayment in the event of borrower default. Although commercial business loans are also often collateralized by equipment, inventory, accounts receivable, or other business assets, the liquidation of collateral in the event of default is often an insufficient source of repayment. Repayment of the Bank’s residential loans are generally dependent on the health of the employment market in the borrowers’ geographic areas and that of the general economy with liquidation of the underlying real estate collateral being typically viewed as the primary source of repayment in the event of borrower default.

Previous wording

Our loan portfolio is our most significant earning asset, comprising 82.2% and 78.3% of our total assets as of September 30, 2025 and December 31, 2024, respectively. Our strategy is to grow our loan portfolio by originating quality commercial and consumer loans that comply with our credit policies and that produce revenues consistent with our financial objectives. We believe our loan portfolio is well-balanced, which provides us with the opportunity to grow while monitoring our loan concentrations.

Current wording

Our loan portfolio is our most significant earning asset, comprising 74.6% and 80.1% of our total assets as of March 31, 2026 and December 31, 2025, respectively. Our strategy is to grow our loan portfolio by originating quality commercial and consumer loans that comply with our credit policies and that produce revenues consistent with our financial objectives. We believe our loan portfolio is well-balanced, which provides us with the opportunity to grow while monitoring our loan concentrations.

Previous wording

Loans increased $112.5 million, or 3.2%, to $3.63 billion as of September 30, 2025 compared to $3.52 billion as of December 31, 2024. This increase during the first nine months of 2025 was primarily driven by solid demand for new credit from our existing customer relationships. This growth was comprised of an increase of $64.3 million or 10.9% in commercial and industrial loans, an increase of $15.2 million or 1.8% in owner occupied commercial real estate loans, an increase of $1.3 million or 0.3% in non-owner occupied commercial real estate, an increase of $45.6 million or 14.0% in multi-family loans, a decrease of $15.5 million or 5.6% in construction and development loans, an increase of $1.6 million or 0.2% in residential 1-4 family loans and a negligible increase in consumer and other loans.

Current wording

Loans increased $911.0 million, or 25.3%, to $4.51 billion as of March 31, 2026, compared to $3.60 billion as of December 31, 2025. This increase was primarily driven by the acquisition of Centre, which included approximately $1.0 billion in loan balances, and was comprised of an increase of $157.2 million or 24.3% in commercial and industrial loans, an increase of $76.6 million or 8.7% in owner occupied commercial real estate loans, an increase of $209.9 million or 42.6% in non-owner occupied commercial real estate loans, an increase of $240.1 million or 59.7% in multifamily loans, an increase of $40.4 million or 18.8% in construction and development loans, an increase of $262.6 million or 29.3% in residential 1-4 family loans and an increase of $11.9 million or 16.6% in consumer and other loans.

Previous wording

Commercial and Industrial (C&I). Our C&I portfolio totaled $654.4 million and $590.2 million at September 30, 2025 and December 31, 2024, respectively, and represented 18% of our total loans as of September 30, 2025 and 17% of our total loans as of December 31, 2024.

Current wording

Commercial and Industrial (C&I). Our C&I portfolio totaled $821.2 million and $647.1 million at March 31, 2026 and December 31, 2025, respectively, and represented 18% of our total loans as of March 31, 2026 and December 31, 2025.

Previous wording

Construction and Development (C&D). Our C&D loan portfolio totaled $262.4 million and $278.0 million at September 30, 2025 and December 31, 2024, respectively, and represented 7% of our total loans as of September 30, 2025 and 8% of our total loans as of December 31, 2024.

Current wording

Construction and Development (C&D). Our C&D loan portfolio totaled $259.4 million and $215.5 million at March 31, 2026 and December 31, 2025, respectively, and represented 6% of our total loans as of March 31, 2026 and December 31, 2025.

Previous wording

Residential 1 – 4 Family. Residential 1 – 4 family loans held in portfolio amounted to $897.5 million and $895.9 million at September 30, 2025 and December 31, 2024, respectively, and represented 25% of our total loans at those dates.

Current wording

Residential 1 – 4 Family. Residential 1 – 4 family loans held in portfolio amounted to $1.10 billion and $895.0 million at March 31, 2026 and December 31, 2025, respectively, and represented 24% of our total loans as of March 31, 2026 and 25% of our total loans as of December 31, 2025.

Previous wording

We were servicing mortgage loans sold to others without recourse of approximately $1.18 billion and $1.17 billion at September 30, 2025 and December 31, 2024, respectively.

Current wording

We were servicing mortgage loans sold to others without recourse of approximately $1.54 billion and $1.20 billion at March 31, 2026 and December 31, 2025, respectively.

Previous wording

Loans sold with the retention of servicing assets result in the capitalization of servicing rights. Loan servicing rights are carried at fair value. The net balance of capitalized servicing rights amounted to $13.7 million at September 30, 2025 and $13.4 million December 31, 2024.

Current wording

Loans sold with the retention of servicing assets result in the capitalization of servicing rights. Loan servicing rights are carried at fair value. The net balance of capitalized servicing rights amounted to $17.5 million at March 31, 2026 and $13.7 million December 31, 2025.

Previous wording

Consumer Loans. Our consumer loan portfolio totaled $57.4 million and $55.4 million at September 30, 2025 and December 31, 2024, respectively, and represented 2% of our total loans at those dates. Consumer loans include secured and unsecured loans, lines of credit and personal installment loans.

Current wording

Consumer Loans. Our consumer loan portfolio totaled $61.4 million and $54.8 million at March 31, 2026 and December 31, 2025, respectively, and represented 1% of our total loans as of March 31, 2026 and 2% of our total loans as of December 31, 2025. Consumer loans include secured and unsecured loans, lines of credit and personal installment loans.

Previous wording

Other Loans. Our other loans totaled $13.7 million and $15.6 million at September 30, 2025 and December 31, 2024, respectively, and are immaterial to the overall loan portfolio. The other loans category consists primarily of over-drafted depository accounts, loans utilized to purchase or carry securities and loans to nonprofit organizations.

Current wording

Other Loans. Our other loans totaled $22.4 million and $16.9 million at March 31, 2026 and December 31, 2025, respectively, and are immaterial to the overall loan portfolio. The other loans category consists primarily of over-drafted depository accounts, loans utilized to purchase or carry securities and loans to nonprofit organizations.

Previous wording

Loans are typically placed on nonaccrual status when any payment of principal and/or interest is 90 days or more past due, unless the collateral is sufficient to cover both principal and interest and the loan is in the process of collection. Loans are also placed on nonaccrual status when management believes, after considering economic and business conditions, that the principal or interest will not be collectible in the normal course of business. We monitor closely the performance of our loan portfolio. In addition to the monitoring and review of loan performance internally, we have also contracted with an independent organization to review our commercial and retail loan portfolios. The status of delinquent loans, as well as situations identified as potential problems, are reviewed on a regular basis by senior management. The increase in nonaccrual loans through the first nine months of 2025 was primarily due to the deterioration of one customer relationship, which resulted in several loans being moved to nonaccrual status.

Current wording

Loans are typically placed on nonaccrual status when any payment of principal and/or interest is 90 days or more past due, unless the collateral is sufficient to cover both principal and interest and the loan is in the process of collection. Loans are also placed on nonaccrual status when management believes, after considering economic and business conditions, that the principal or interest will not be collectible in the normal course of business. We monitor closely the performance of our loan portfolio. In addition to the monitoring and review of loan performance internally, we have also contracted with an independent organization to review our commercial and retail loan portfolios. The status of delinquent loans, as well as situations identified as potential problems, are reviewed on a regular basis by senior management. The increase in nonaccrual loans through the first three months of 2026 was primarily due to the deterioration of one customer relationship, which resulted in several loans being moved to nonaccrual status.

Previous wording

At September 30, 2025, the ACL - Loans was $44.5 million (representing 1.23% of period end loans). The Bank recorded a provision for credit losses of $1.2 million during the first three quarters of 2025. The ACL – Loans has remained consistent over recent quarters as economic conditions have remained stable and the Company’s overall asset quality remain strong. The Company recorded net charge-offs totaling $0.8 million during the first nine months of 2025.

Current wording

At March 31, 2026, the ACL - Loans was $57.1 million (representing 1.26% of period end loans). The Bank did not record a provision for credit losses during the first quarter of 2026. In addition, the ACL - Loans increased due to the acquisition of Centre, which required a $5.1 million allowance for credit losses on non-PCD loans and a $7.7 million reserve related to PCD loans. The ACL – Loans has remained consistent over recent quarters as economic conditions have remained stable and the Company’s overall asset quality remain strong. The Company recorded net charge-offs totaling $0.1 million during the first three months of 2026.

Previous wording

Deposits. Our current deposit products include non-interest bearing and interest-bearing checking accounts, savings accounts, money market accounts, and certificate of deposits. As of September 30, 2025, deposit liabilities accounted for approximately 80.1% of our total liabilities and equity. We accept deposits primarily from customers in the communities in which our branches and offices are located, as well as from small businesses and other customers throughout our lending area. We rely on our competitive pricing and products, quality customer service, and convenient locations and hours to attract and retain deposits. Deposit rates and terms are based primarily on current business strategies, market interest rates, liquidity requirements and our deposit growth goals.

Current wording

Deposits. Our current deposit products include non-interest bearing and interest-bearing checking accounts, savings accounts, money market accounts, and certificate of deposits. As of March 31, 2026, deposit liabilities accounted for approximately 83.8% of our total liabilities and equity. We accept deposits primarily from customers in the communities in which our branches and offices are located, as well as from small businesses and other customers throughout our lending area. We rely on our competitive pricing and products, quality customer service, and convenient locations and hours to attract and retain deposits. Deposit rates and terms are based primarily on current business strategies, market interest rates, liquidity requirements and our deposit growth goals.

Previous wording

Total deposits were $3.54 billion and $3.66 billion as of September 30, 2025 and December 31, 2024, respectively. Noninterest-bearing deposits at September 30, 2025 and December 31, 2024, were $984.6 million and $1.02 billion, respectively, while interest-bearing deposits were $2.55 billion and $2.64 billion at September 30, 2025 and December 31, 2024, respectively. The Bank continues to see a shift in its deposit portfolio from noninterest-bearing deposits to interest-bearing deposits as prevailing interest rates have increased over the last several years.

Current wording

Total deposits were $5.09 billion and $3.70 billion as of March 31, 2026 and December 31, 2025, respectively. Noninterest-bearing deposits at March 31, 2026 and December 31, 2025, were $1.50 billion and $1.00 billion, respectively, while interest-bearing deposits were $3.59 billion and $2.69 billion at March 31, 2026 and December 31, 2025, respectively.

Previous wording

At September 30, 2025, we had a total of $665.0 million in certificates of deposit, including $15.1 million of brokered deposits. Based on historical experience and our current pricing strategy, we believe we will retain a majority of these accounts upon maturity, although our long-term strategy is to minimize reliance on certificates of deposits by increasing relationship deposits in lower earning savings and demand deposit accounts.

Current wording

At March 31, 2026, we had a total of $822.4 million in certificates of deposit, including $15.1 million of brokered deposits. Based on historical experience and our current pricing strategy, we believe we will retain a majority of these accounts upon maturity, although our long-term strategy is to minimize reliance on certificates of deposits by increasing relationship deposits in lower earning savings and demand deposit accounts.

Previous wording

The Company’s borrowings have historically consisted primarily of FHLB of Chicago advances collateralized by a blanket pledge agreement on the Company’s FHLB capital stock and retail and commercial loans held in the Company’s portfolio. There were $209.9 million and $135.4 million of advances outstanding from the FHLB at September 30, 2025 and December 31, 2024, respectively.

Current wording

The Company’s borrowings have historically consisted primarily of FHLB advances collateralized by a blanket pledge agreement on the Company’s FHLB capital stock and retail and commercial loans held in the Company’s portfolio. There were $100.0 million and $110.0 million of advances outstanding from the FHLB at March 31, 2026 and December 31, 2025, respectively.

Previous wording

The total loans pledged as collateral were $1.10 billion and $1.47 billion at September 30, 2025 and December 31, 2024. There were no outstanding letters of credit from the FHLB at September 30, 2025 or December 31, 2024.

Current wording

The total loans pledged as collateral were $839.3 million and $1.10 billion at March 31, 2026 and December 31, 2025. There were $102.8 million letters of credit from the FHLB at March 31, 2026 compared to no letters of credit at December 31, 2025.

Previous wording

Our securities portfolio consists of securities available for sale and securities held to maturity. Securities are classified as held to maturity or available for sale at the time of purchase. Obligations of states and political subdivisions and mortgage-backed securities, all of which are issued by U.S. government agencies or U.S. government-sponsored enterprises, along with U.S. Treasuries make up the largest components of the securities portfolio. We manage our investment portfolio to provide an adequate level of liquidity as well as to maintain neutral interest rate-sensitive positions, while earning an adequate level of investment income without taking undue or excessive risk.

Current wording

Our securities portfolio consists of securities available for sale and securities held to maturity. Securities are classified as held to maturity or available for sale at the time of purchase. Obligations of states and political subdivisions, obligations of U.S. government sponsored agencies, and mortgage-backed securities, all of which are issued by U.S. government agencies or U.S. government-sponsored enterprises, along with U.S. Treasuries make up the largest components of the securities portfolio. We manage our investment portfolio to provide an adequate level of liquidity as well as to maintain neutral interest rate-sensitive positions, while earning an adequate level of investment income without taking undue or excessive risk.

Previous wording

Securities available for sale consist of U.S. government sponsored agencies, obligations of states and political subdivision, mortgage-backed securities, and corporate notes. Securities classified as available for sale, which management has the intent and ability to hold for an indefinite period of time, but not necessarily to maturity, are carried at fair value, with unrealized gains and losses, net of related deferred income taxes, included in stockholders’ equity as a separate component of other comprehensive income. The fair value of securities available for sale totaled $167.1 million and included $0.3 million gross unrealized gains and gross unrealized losses of $9.1 million at September 30, 2025. At December 31, 2024, the fair value of securities available for sale totaled $223.1 million and included negligible gross unrealized gains and gross unrealized losses of $12.9 million.

Current wording

Securities available for sale consist of U.S. Treasuries, U.S. government sponsored agencies, obligations of states and political subdivision, mortgage-backed securities, and corporate notes. Securities classified as available for sale, which management has the intent and ability to hold for an indefinite period of time, but not necessarily to maturity, are carried at fair value, with unrealized gains and losses, net of related deferred income taxes, included in stockholders’ equity as a separate component of other comprehensive income. The fair value of securities available for sale totaled $483.2 million and included negligible gross unrealized gains and gross unrealized losses of $13.0 million at March 31, 2026. At December 31, 2025, the fair value of securities available for sale totaled $164.4 million and included $0.4 million gross unrealized gains and gross unrealized losses of $7.8 million.

Previous wording

Securities classified as held to maturity consist of U.S. treasury securities and obligations of states and political subdivisions. These securities, which management has the intent and ability to hold to maturity, are reported at amortized cost. Securities held to maturity totaled $106.8 million at September 30, 2025 and $110.8 million at December 31, 2024.

Current wording

Securities classified as held to maturity consist of U.S. treasury securities and obligations of states and political subdivisions. These securities, which management has the intent and ability to hold to maturity, are reported at amortized cost. Securities held to maturity totaled $117.9 million at March 31, 2026 and $103.7 million at December 31, 2025.

Previous wording

The Company had recognized no net losses on sales of securities during the nine months ended September 30, 2025. The Company had recognized net losses on sales of securities of $0.03 million during the nine months ended September 30, 2024.

Current wording

The Company had recognized net losses of $0.03 million on sales of securities during the three months ended March 31, 2026. The Company had recognized net losses on sales of securities of zero during the three months ended March 31, 2025.

Previous wording

As of September 30, 2025, 185 debt securities had gross unrealized losses, with an aggregate depreciation of 2.7% from our amortized cost basis. The largest unrealized loss percentage of any single security was 20.8% (or $0.7 million) of its amortized cost. The largest unrealized dollar loss of any security was $0.7 million (or 20.8%).

Current wording

As of March 31, 2026, 278 debt securities had gross unrealized losses, with an aggregate depreciation of 2.2% from our amortized cost basis. The largest unrealized loss percentage of any single security was 21.2% (or $0.4 million) of its amortized cost. The largest unrealized dollar loss of any security was $0.7 million (or 19.1%).

Previous wording

As of December 31, 2024, 210 debt securities had gross unrealized losses, with an aggregate depreciation of 4.1% from our amortized cost basis. The largest unrealized loss percentage of any single security was 24.6% (or $0.5 million) of its amortized cost. The largest unrealized dollar loss of any single security was $0.9 million (or 23.5%).

Current wording

As of December 31, 2025, 180 debt securities had gross unrealized losses, with an aggregate depreciation of 2.2% from our amortized cost basis. The largest unrealized loss percentage of any single security was 19.1% (or $0.4 million) of its amortized cost. The largest unrealized dollar loss of any single security was $0.6 million (or 11.0%).

Previous wording

Our liquidity is maintained through our investment portfolio, deposits, borrowings from the FHLB, and lines available from correspondent banks. Our highest priority is placed on growing noninterest bearing deposits through strong community involvement in the markets that we serve. Borrowings and brokered deposits are considered short-term supplements to our overall liquidity but are not intended to be relied upon for long-term needs. The Company currently has $2.14 billion in availability between borrowings and brokered deposits for future funding if liquidity needs were to develop. We believe that our present position is adequate to meet our current and future liquidity needs, and management knows of no trend or event that will have a material impact on the Company’s ability to maintain liquidity at satisfactory levels.

Current wording

Our liquidity is maintained through our investment portfolio, deposits, borrowings from the FHLB, and lines available from correspondent banks. Our highest priority is placed on growing noninterest bearing deposits through strong community involvement in the markets that we serve. Borrowings and brokered deposits are considered short-term supplements to our overall liquidity but are not intended to be relied upon for long-term needs. We believe that our present position is adequate to meet our current and future liquidity needs, and management knows of no trend or event that will have a material impact on the Company’s ability to maintain liquidity at satisfactory levels.

Previous wording

Capital Adequacy. Total stockholders’ equity was $628.1 million at September 30, 2025 compared to $639.7 million at December 31, 2024.

Current wording

Capital Adequacy. Total stockholders’ equity was $819.9 million at March 31, 2026 compared to $643.8 million at December 31, 2025.

Previous wording

As previously mentioned, the Company carried $12.0 million of subordinated debt as of September 30, 2025 and December 31, 2024, which qualifies as Tier II capital. These amounts are included in total capital for the Company in the tables above.

Current wording

As previously mentioned, the Company carried $16.6 million of subordinated debt as of March 31, 2026 and December 31, 2025, which qualifies as Tier II capital. These amounts are included in total capital for the Company in the tables above.