Bank First Corp

Previous wording

On May 19, 2026, the Company entered into an Agreement and Plan of Merger with Peoples, pursuant to which Peoples will merge with and into the Company and Peoples banking subsidiary, Peoples State Bank, will merge with and into the Bank. The transaction is expected to close during the fourth quarter of 2026 and is subject to, among other items, approval by the shareholders of Peoples and regulatory agencies. Merger consideration will consist of 100% common stock of the Company, and will total approximately $202.9 million, subject to the fair market value of the Company's common stock on the date of closing. Based on combined results as of June 30, 2026, the merged entity would have total assets of approximately $7.5 billion, loans of approximately $5.6 billion, and deposits of approximately $6.2 billion.

Current wording

On May 19, 2026, the Company entered into an Agreement and Plan of Merger with Peoples, pursuant to which Peoples will merge with and into the Company and Peoples banking subsidiary, Peoples State Bank, will merge with and into the Bank. The transaction is expected to close on December 4, 2026 and is subject to, among other items, approval by the shareholders of Peoples and regulatory agencies. Merger consideration will consist of 100% common stock of the Company, and will total approximately $202.9 million, subject to the fair market value of the Company's common stock on the date of closing. Based on combined results as of September 30, 2026, the merged entity would have total assets of approximately $7.5 billion, loans of approximately $5.7 billion, and deposits of approximately $6.2 billion.

Previous wording

General**.** Net income increased $7.8 million to $24.7 million for three months ended June 30, 2026, comparedto $16.9 million for the same period in 2025. This increase is primarily due to the added scale of operations resulting from the Centre acquisition at the beginning of the first quarter of 2026.

Current wording

General**.** Net income increased $5.8 million to $23.8 million for three months ended September 30, 2026, comparedto $18.0 million for the same period in 2025. This increase is primarily due to the added scale of operations resulting from the Centre acquisition at the beginning of the first quarter of 2026.

Previous wording

Net interest and dividend income increased by $18.3 million to $55.0 million for the three months ended June 30, 2026 compared to $36.7 million for three months ended June 30, 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, as well as increasing net interest margin in the year-over-year second quarter. Total average interest-earning assets were $5.39 billion for the three months ended June 30, 2026, up from $4.01 billion for the same period in 2025. In addition, growth of $846.4 million in interest-bearing liabilities, from $2.76 billion for the three months ended June 30, 2025 to $3.61 billion for the three months ended June 30, 2026, was partially offset by average rates paid on these liabilities declining from 2.59% for the three months ended June 30, 2025, to 2.30% for the three months ended June 30, 2026.

Current wording

Net interest and dividend income increased by $17.0 million to $55.2 million for the three months ended September 30, 2026 compared to $38.3 million for three months ended September 30, 2025. The increase in net interest income was primarily due to growth in interest earning assets resulting from the acquisition of Centre, as well as increasing net interest margin in the year-over-year third quarter. Total average interest-earning assets were $5.43 billion for the three months ended September 30, 2026, up from $3.95 billion for the same period in 2025. In addition, growth of $929.5 million in interest-bearing liabilities, from $2.71 billion for the three months ended September 30, 2025 to $3.64 billion for the three months ended September 30, 2026, was partially offset by average rates paid on these liabilities declining from 2.52% for the three months ended September 30, 2025, to 2.26% for the three months ended September 30, 2026.

Previous wording

Interest Income. Total interest income increased $21.1 million, or 38.7%, to $75.7 million for the three months ended June 30, 2026 compared to $54.6 million for the same period in 2025. The increase in total interest income was primarily due to the aforementioned growth in interest earning assets resulting from the acquisition of Centre as well as increasing rates earned on these balances. The average balance of interest-earning assets increased by $1.38 billion during the three months ended June 30, 2026 compared to the same period in 2025 and the average rate earned on these balances increased from 5.50% for the quarter ended June 30 2025 to 5.67% for the quarter ended June 30, 2026 . Interest income from the accretion of purchase accounting fair value marks increased by $3.0 million in the second quarter of 2026 compared to the prior-year second quarter.

Current wording

Interest Income. Total interest income increased $20.5 million, or 37.0%, to $76.0 million for the three months ended September 30, 2026 compared to $55.5 million for the same period in 2025. The increase in total interest income was primarily due to the aforementioned growth in interest earning assets resulting from the acquisition of Centre. The average balance of interest-earning assets increased by $1.48 billion during the three months ended September 30, 2026 compared to the same period in 2025 and the average rate earned on these balances decreased from 5.61% for the quarter ended September 30, 2025 to 5.59% for the quarter ended September 30, 2026. Interest income from the accretion of purchase accounting fair value marks increased by $1.5 million in the third quarter of 2026 compared to the prior-year third quarter.

Previous wording

Interest Expense. Interest expense increased $2.8 million, or 15.7%, to $20.7 million for the three months ended June 30, 2026 compared to $17.9 million for the same period in 2025.

Current wording

Interest Expense. Interest expense increased $3.6 million, or 20.7%, to $20.8 million for the three months ended September 30, 2026 compared to $17.2 million for the same period in 2025.

Previous wording

Interest expense on interest-bearing deposits increased by $3.0 million to $19.2 million for the three months ended June 30, 2026 compared to $16.2 million for the same period in 2025. The increase in interest expense was primarily due to elevated interest-bearing liabilities from the Centre acquisition, offset partially by lower crediting rates on these balances. The average balance and rate of interest-bearing deposits was $3.49 billion and 2.21% for the three months ended June 30, 2026, compared to $2.62 billion and 2.48% for the same period in 2025.

Current wording

Interest expense on interest-bearing deposits increased by $3.8 million to $19.6 million for the three months ended September 30, 2026 compared to $15.8 million for the same period in 2025. The increase in interest expense was primarily due to elevated interest-bearing liabilities from the Centre acquisition, offset partially by lower crediting rates on these balances. The average balance and rate of interest-bearing deposits was $3.54 billion and 2.20% for the three months ended September 30, 2026, compared to $2.59 billion and 2.42% for the same period in 2025.

Previous wording

Other borrowed funds, the Company’s highest-cost source of funding, saw average balances decline by $24.5 million to $122.1 million during the second quarter of 2026 compared to $146.6 million during the same period in the prior year.

Current wording

Other borrowed funds, the Company’s highest-cost source of funding, saw average balances decline by $28.2 million to $95.6 million during the third quarter of 2026 compared to $123.8 million during the same period in the prior year.

Previous wording

We did not record a provision for credit loss during the three months ended June 30, 2026 compared to recording a $0.2 million provision for credit loss during the same period in 2025. Economic forecasts, primarily US gross domestic product projections, decreased during the second quarter of 2026 while projections for unemployment remained consistent. We incurred $1.0 million net charge-offs during the three months ended June 30, 2026 compared to minimal net charge-offs during the three months ended June 30, 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 $56.0 million, or 1.24% of total loans, at June 30, 2026 compared to $44.3 million, or 1.24% of total loans at June 30, 2025.

Current wording

We recorded a provision of $0.8 million for credit loss during the three months ended September 30, 2026 compared to recording a $0.7 million provision for credit loss during the same period in 2025. Economic forecasts, primarily US gross domestic product projections, increased during the third quarter of 2026 while projections for unemployment declined. We incurred $0.3 million net charge-offs during the three months ended September 30, 2026 compared to minimal net charge-offs during the three months ended September 30, 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 provision recorded during the third quarter of 2026 was the result of growth of the loan portfolio. The ACL - Loans was $56.8 million, or 1.24% of total loans, at September 30, 2026 compared to $44.5 million, or 1.23% of total loans at September 30, 2025.

Previous wording

Noninterest income increased $5.1 million to $10.0 million for the three months ended June 30, 2026 compared to$4.9 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 $0.9 million during the second quarter of 2026, down $0.3 million from the prior-year second quarter. Income provided by Trust and Wealth Management was $1.6 million during the second quarter of 2026. Assets under management of this department totaled $873.9 million as of June 30, 2026. The rising interest rate environment during the first half of 2026 resulted in a $0.5 million positive valuation adjustment to the Bank’s mortgage servicing rights during the second quarter of 2026, compared to a $0.1 million negative valuation adjustment in the prior-year second quarter. Higher mortgage rates generally reduce expected mortgage prepayment speeds, which increases the value of mortgage servicing rights. Finally, gains on sales of mortgage loans totaled $0.7 million during the second quarter of 2026, up from $0.3 million in the prior-year second quarter.

Current wording

Noninterest income increased $4.2 million to $10.1 million for the three months ended September 30, 2026 compared to$6.0 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 as well as the introduction of the Trust and Wealth Management business line. Income provided by the Bank’s investment in Ansay totaled $0.8 million during the third quarter of 2026, down $0.6 million from the prior-year third quarter. Income provided by Trust and Wealth Management was $1.6 million during the third quarter of 2026. Assets under management of this department totaled $853.8 million as of September 30, 2026. The rising interest rate environment during 2026 resulted in a $0.9 million positive valuation adjustment to the Bank’s mortgage servicing rights during the third quarter of 2026, compared to a $0.2 million positive valuation adjustment in the prior-year third quarter. Higher mortgage rates generally reduce expected mortgage prepayment speeds, which increases the value of mortgage servicing rights. Finally, gains on sales of mortgage loans totaled $0.6 million during the third quarter of 2026, up from $0.5 million in the prior-year third quarter.

Previous wording

Noninterest Expense. Noninterest expense increased $13.6 million to $34.4 million for the three months ended June 30, 2026 compared to $20.8 million for the same period in 2025. Most areas of noninterest expense were elevated in the most recent quarter due to the added operating scale from Centre acquisition as well as expenses directly related to this transaction, which totaled $3.2 million during the second quarter of 2026. These expenses were primarily incurred in the areas of personnel expense, outside service fees, supplies expense, and data processing. Occupancy expense was significantly elevated due to eleven new operating locations added to the Bank’s footprint as part of the Centre acquisition. This acquisition also created a core deposit intangible asset of $31.9 million. Amortization related to this intangible asset, which will be amortized over the next 10 years, led to the elevated amortization expense during the second quarter of 2026.

Current wording

Noninterest Expense. Noninterest expense increased $13.6 million to $34.7 million for the three months ended September 30, 2026 compared to $21.1 million for the same period in 2025. Most categories of noninterest expense increased during the third quarter of 2026, reflecting the additional operating scale following the Centre acquisition, along with acquisition-related expenses of $2.7 million, compared with $0.9 million in the third quarter of 2025. These acquisition-related expenses were primarily incurred in the areas of personnel expense, outside service fees, supplies expense, and data processing. Occupancy expense was significantly elevated due to eleven new operating locations added to the Bank’s footprint as part of the Centre acquisition. This acquisition also created a core deposit intangible asset of $31.9 million. Amortization related to this intangible asset, which will be amortized over the next 10 years, led to the elevated amortization expense during the third quarter of 2026.

Previous wording

Income Tax Expense. We recorded a provision for income taxes of $5.9 million for the three months ended June 30, 2026 compared to a provision of $3.8 million for the same period during 2025, reflecting effective tax rates of 19.4% for the second quarter of 2026 compared to 18.3% during second 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. Additional tax-exempt income during the second quarter of 2025 resulted from a death benefit on life insurance, further reducing the effective tax rate for that quarter.

Current wording

Income Tax Expense. We recorded a provision for income taxes of $6.1 million for the three months ended September 30, 2026 compared to a provision of $4.5 million for the same period during 2025, reflecting effective tax rates of 20.4% for the third quarter of 2026 compared to 19.9% during third 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.

Previous wording

Results of Operations for the Six Months Ended June 30, 2026 and June 30, 2025

Current wording

Results of Operations for the Nine Months Ended September 30, 2026 and September 30, 2025

Previous wording

General**.** Net income increased $9.6 million to $44.7 million for the six months ended June 30, 2026, compared to $35.1 million for the same period in 2025. This increase was primarily due to the added scale of operations resulting from the Centre acquisition during the first quarter of 2026. Additionally, the Bank’s net income continues to benefit from new and renewed loans being priced at higher yields, while deposits continue to reprice lower.

Current wording

General**.** Net income increased $15.4 million to $68.5 million for the nine months ended September 30, 2026, compared to $53.1 million for the same period in 2025. This increase was primarily due to the added scale of operations resulting from the Centre acquisition during the first quarter of 2026. Additionally, the Bank’s net income continues to benefit from new and renewed loans being priced at higher yields, while deposits continue to reprice lower.

Previous wording

Net Interest Income**.** Net interest and dividend income increased by $35.0 million to $108.2 million for the six months ended

Current wording

Net Interest Income**.** Net interest and dividend income increased by $52.0 million to $163.5 million for the nine months ended

Previous wording

June 30, 2026 compared to $73.2 million for six months ended June 30, 2025. The increase in net interest income was primarily due to growth in interest earning assets over the last six months, resulting from the acquisition of Centre, as well as increasing net interest margin in the first six months of 2026 compared to the same period in 2025.Comparing the first six months of 2026 to the first six months of 2025, rates earned on interest-earning assets increased by 0.07% while average interest-earning assets increased by $1.39 billion. Tax equivalent net interest margin increased 35 basis points to 4.04% for the six months ended June 30, 2026, up from 3.69% for the same period in 2025. Bank First repaid $65.0 million in FHLB borrowings assumed from Centre prior to contractual maturity during the first quarter of 2026, triggering the recognition of $1.3 million in purchase accounting fair value adjustments, reducing interest expense and elevating net interest margin during that period. 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

September 30, 2026 compared to $111.5 million for nine months ended September 30, 2025. The increase in net interest income was primarily due to growth in interest earning assets over the last six months, resulting from the acquisition of Centre, as well as increasing net interest margin in the first nine months of 2026 compared to the same period in 2025. Comparing the first nine months of 2026 to the first nine months of 2025, rates earned on interest-earning assets increased by 0.04% while average interest-earning assets increased by $1.42 billion. Tax equivalent net interest margin increased 30 basis points to 4.05% for the nine months ended September 30, 2026, up from 3.75% for the same period in 2025. Bank First repaid $65.0 million in FHLB borrowings assumed from Centre prior to contractual maturity during the first quarter of 2026, triggering the recognition of $1.3 million in purchase accounting fair value adjustments, reducing interest expense and elevating net interest margin during that period. 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 $39.7 million, or 36.2%, to $149.3 million for the six months ended June 30, 2026 compared to $109.6 million for the same period in 2025. The increase in total interest income was primarily due to the aforementioned growth in interest earnings assets over the last six months along with an increase in the average interest rate earned on these assets.

Current wording

Interest Income. Total interest income increased $60.2 million, or 36.5%, to $225.3 million for the nine months ended September 30, 2026 compared to $165.1 million for the same period in 2025. The increase in total interest income was primarily due to the aforementioned growth in interest earnings assets over the last nine months along with an increase in the average interest rate earned on these assets.

Previous wording

Interest Expense. Interest expense increased $4.7 million, or 12.9%, to $41.1 million for the six months ended June 30, 2026 compared to $36.4 million for the same period in 2025. The increase in interest expense was primarily due to elevated interest bearing liabilities from the Centre acquisition. The average balance of interest-bearing liabilities increased by $838.3 million during the first six months of 2026 compared to the same period in 2025. Offsetting the cost of these higher levels of average interest-bearing liabilities was a decline in the average interest rate paid on these balances which declined from 2.62% for the first two quarters of 2025 to 2.28% for the first two quarters of 2026.

Current wording

Interest Expense. Interest expense increased $8.3 million, or 15.4%, to $61.8 million for the nine months ended September 30, 2026 compared to $53.6 million for the same period in 2025. The increase in interest expense was primarily due to elevated interest bearing liabilities from the Centre acquisition. The average balance of interest-bearing liabilities increased by $869.1 million during the first nine months of 2026 compared to the same period in 2025. Offsetting the cost of these higher levels of average interest-bearing liabilities was a decline in the average interest rate paid on these balances which declined from 2.59% for the first three quarters of 2025 to 2.27% for the first three quarters of 2026.

Previous wording

Interest expense on interest-bearing deposits totaled $39.2 million and $33.1 million for the six months ended June 30, 2026 and 2025, respectively. The average cost of interest-bearing deposits was 2.26% for the six months ended June 30, 2026, compared to 2.51% for the same period in 2025.

Current wording

Interest expense on interest-bearing deposits totaled $58.9 million and $48.8 million for the nine months ended September 30, 2026 and 2025, respectively. The average cost of interest-bearing deposits was 2.24% for the nine months ended September 30, 2026, compared to 2.48% for the same period in 2025.

Previous wording

Provision for Credit Losses. We did not record a provision for credit losses for the six months ended June 30, 2026 compared to $0.6 million for the same period in 2025. We recorded net charge-offs of $1.2 million for the six months ended June 30, 2026 compared to net charge-offs of $0.8 million for the same period in 2025. The ACL - Loans was $56.0 million, or 1.24% of total loans, at June 30, 2026 compared to $44.3 million, or 1.24% of total loans at June 30, 2025.

Current wording

Provision for Credit Losses. We recorded a provision for credit losses of $0.8 million for the nine months ended September 30, 2026 compared to $1.3 million for the same period in 2025. We recorded net charge-offs of $1.4 million for the nine months ended September 30, 2026 compared to net charge-offs of $0.8 million for the same period in 2025. Provision expense was limited in the first nine months of 2026 as legacy-market loan production was offset by the planned exit of certain acquired Stateline (former Centre) loans that did not align with Bank First’s lending philosophy. The ACL - Loans was $56.8 million, or 1.24% of total loans, at September 30, 2026, compared to $44.5 million, or 1.23% of total loans at September 30, 2025.

Previous wording

Noninterest income increased $9.0 million to $20.5 million for the six months ended June 30, 2026 compared to $11.5 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 Trust and Wealth Management was $3.2 million during the first six months of 2026. Income provided by the Bank’s investment in Ansay & Associates, LLC totaled $1.8 million through the second quarter of 2026, down $0.5 million from the first six months of the prior year. Positive valuation adjustments to the Bank’s MSRs totaling $0.6 million during the first two quarters of 2026 compared favorably to $0.1 million in positive valuation adjustments during the first two quarters of 2025. Net gain on sales of mortgage loans totaled $1.7 million through the first six months of 2026, up $1.1 million from the first six months of 2025.

Current wording

Noninterest income increased $13.2 million to $30.6 million for the nine months ended September 30, 2026 compared to $17.5 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 as well as the introduction of the Trust and Wealth Management business line. Income provided by Trust and Wealth Management was $4.8 million during the first nine months of 2026. Income provided by the Bank’s investment in Ansay & Associates, LLC totaled $2.6 million through the third quarter of 2026, down $1.1 million from the first nine months of the prior year. Ansay’s 2026 profitability has been impacted by investments in automation and operational efficiency, along with industry-wide softening in insurance pricing. Positive valuation adjustments to the Bank’s MSRs totaling $1.5 million during the first three quarters of 2026 compared favorably to $0.3 million in positive valuation adjustments during the first three quarters of 2025. Net gain on sales of mortgage loans totaled $2.3 million through the first nine months of 2026, up $1.1 million from the first nine months of 2025.

Previous wording

Noninterest Expense. Noninterest expense increased $32.1 million to $73.5 million for the six months ended June 30, 2026 compared to $41.4 million for the same period in 2025. Most areas of noninterest expense increased over the past two quarters as a result of added operational scale from the acquisition of Centre. Significant transaction related expenses from the Company’s acquisition of Centre during the first half of 2026 caused large increases in salaries, data processing, supplies, and outside service fees. Expenses directly related to the Bank’s acquisition of Centre totaled $9.5 million during the first six months of 2026. Amortization of the core deposit intangible asset associated with the acquisition contributed to the higher amortization expense recorded during the first half of 2026. As earlier mentioned, the Bank incurred a $1.1 million prepayment penalty when it repaid $65.0 million in FHLB borrowings during the first quarter of 2026, which was recorded in other noninterest expense.

Current wording

Noninterest Expense. Noninterest expense increased $45.7 million to $108.1 million for the nine months ended September 30, 2026 compared to $62.4 million for the same period in 2025. Most areas of noninterest expense increased over the past three quarters as a result of added operational scale from the acquisition of Centre. Expenses directly related to the Bank’s acquisition of Centre and Peoples totaled $12.5 million during the first nine months of 2026. These significant transaction related expenses caused large increases in salaries, data processing, supplies, and outside service fees. Amortization of the core deposit intangible asset associated with the acquisition of Centre contributed to the higher amortization expense recorded during the first nine months of 2026. As earlier mentioned, the Bank incurred a $1.1 million prepayment penalty when it repaid $65.0 million in FHLB borrowings during the first quarter of 2026, which was recorded in other noninterest expense.

Previous wording

Income Tax Expense. We recorded a provision for income taxes of $10.6 million for the six months ended June 30, 2026 compared to a provision of $7.7 million for the same period during 2025, reflecting effective tax rates of 19.3% and 17.9%, respectively. 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. Additional tax-exempt income during the first half of 2025 resulted from death benefits on life insurance, further reducing the effective tax rate for that period.

Current wording

Income Tax Expense. We recorded a provision for income taxes of $16.7 million for the nine months ended September 30, 2026 compared to a provision of $12.2 million for the same period during 2025, reflecting effective tax rates of 19.6% and 18.6%, respectively. 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. Additional tax-exempt income during the first nine months of 2025 resulted from death benefits on life insurance, further reducing the effective tax rate for that period.

Previous wording

Cash and Cash Equivalents. Cash and cash equivalents increased by $23.3 million to $266.5 million at June 30, 2026, from $243.2 million at December 31, 2025.

Current wording

Cash and Cash Equivalents. Cash and cash equivalents decreased by $31.0 million to $212.2 million at September 30, 2026, from $243.2 million at December 31, 2025.

Previous wording

Investment Securities. The carrying value of total investment securities increased by $340.5 million to $608.6 million at June 30, 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.

Current wording

Investment Securities. The carrying value of total investment securities increased by $320.1 million to $588.3 million at September 30, 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

Loans. Net loans increased by $905.4 million, totaling $4.47 billion at June 30, 2026 compared to $3.56 billion at December 31, 2025. The fair value of loans acquired as part of the acquisition of Centre at the beginning of the first quarter of 2026 totaled $968.7 million.

Current wording

Loans. Net loans increased by $978.8 million, totaling $4.54 billion at September 30, 2026 compared to $3.56 billion at December 31, 2025. The fair value of loans acquired as part of the acquisition of Centre at the beginning of the first quarter of 2026 totaled $968.7 million.

Previous wording

Deposits. Deposits increased $1.29 billion, or 34.9%, to $4.99 billion at June 30, 2026 from $3.70 billion at December 31, 2025. The fair value of deposits acquired as part of the acquisition of Centre at the beginning of the first quarter of 2026 totaled $1.38 billion.

Current wording

Deposits. Deposits increased $1.31 billion, or 35.3%, to $5.00 billion at September 30, 2026 from $3.70 billion at December 31, 2025. The fair value of deposits acquired as part of the acquisition of Centre at the beginning of the first quarter of 2026 totaled $1.38 billion.

Previous wording

Borrowings. At June 30, 2026, borrowings consisted of advances from the FHLB and subordinated debt to other banks and an individual. FHLB borrowings decreased $30.0 million, or 27.3%, to $80.0 million at June 30, 2026 from $110.0 million at December 31, 2025. Junior subordinated debentures, all of which were assumed as part of the acquisition of Centre, totaled $8.3 million at June 30, 2026. The Company assumed $4.6 million of subordinated debt at fair value in the Centre transaction, increasing total subordinated debt to $16.6 million at June 30, 2026, up from $12.0 million at December 31, 2025.

Current wording

Borrowings. At September 30, 2026, borrowings consisted of advances from the FHLB and junior subordinated debentures and other subordinated debt to other banks and an individual. FHLB borrowings decreased $55.0 million, or 50.0%, to $55.0 million at September 30, 2026 from $110.0 million at December 31, 2025. Junior subordinated debentures, all of which were assumed as part of the acquisition of Centre, totaled $8.3 million at September 30, 2026. The Company assumed $4.6 million of subordinated debt at fair value in the Centre transaction, increasing total subordinated debt to $16.6 million at September 30, 2026, up from $12.0 million at December 31, 2025.

Previous wording

Stockholders’ Equity. Total stockholders’ equity increased $175.5 million, or 27.3%, to $819.3 million at June 30, 2026 from $643.8 million at December 31, 2025. Repurchases of the Company’s common stock totaling $23.4 million and dividends declared totaling $11.7 million offset the positive impact of earnings totaling $44.7 million during the first six months of 2026. The largest contributor to the increase in stockholder’s equity during the first half of 2026 was the Centre acquisition, which added $168.5 million.

Current wording

Stockholders’ Equity. Total stockholders’ equity increased $182.6 million, or 28.4%, to $826.4 million at September 30, 2026 from $643.8 million at December 31, 2025. Repurchases of the Company’s common stock totaling $23.9 million and dividends declared totaling $18.4 million offset the positive impact of earnings totaling $68.5 million during the first nine months of 2026. The largest contributor to the increase in stockholder’s equity during the first nine months of 2026 was the Centre acquisition, which added $168.5 million.

Previous wording

Our loan portfolio is our most significant earning asset, comprising 76.1% and 80.1% of our total assets as of June 30, 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.

Current wording

Our loan portfolio is our most significant earning asset, comprising 77.3% and 80.1% of our total assets as of September 30, 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 $917.0 million, or 25.4%, to $4.52 billion as of June 30, 2026, compared to $3.60 billion as of December 31, 2025. This increase was primarily driven by the acquisition of Centre, which included at acquisition date approximately $968.7 million 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.

Current wording

Loans increased $991.2 million, or 27.5%, to $4.60 billion as of September 30, 2026, compared to $3.60 billion as of December 31, 2025. This increase was primarily driven by the acquisition of Centre, which included at acquisition date approximately $1.00 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 $848.6 million and $647.1 million and represented 19% and 18% of our total loans as of June 30, 2026 and December 31, 2025, respectively.

Current wording

Commercial and Industrial (C&I). Our C&I portfolio totaled $871.3 million and $647.1 million and represented 19% and 18% of our total loans as of September 30, 2026 and December 31, 2025, respectively.

Previous wording

Commercial Real Estate (CRE). Our CRE loan portfolio totaled $2.25 billion and $1.78 billion at June 30, 2026 and December 31, 2025, respectively, and represented 50% and 49% of our total loans at those dates

Current wording

Commercial Real Estate (CRE). Our CRE loan portfolio totaled $2.28 billion and $1.78 billion at September 30, 2026 and December 31, 2025, respectively, and represented 49% of our total loans at those dates.

Previous wording

Construction and Development (C&D). Our C&D loan portfolio totaled $241.9 million and $215.5 million at June 30, 2026 and December 31, 2025, respectively, and represented 5% of our total loans as of June 30, 2026 and 6% of our total loans as of December 31, 2025.

Current wording

Construction and Development (C&D). Our C&D loan portfolio totaled $238.1 million and $215.5 million at September 30, 2026 and December 31, 2025, respectively, and represented 5% of our total loans as of September 30, 2026 and 6% of our total loans as of December 31, 2025.

Previous wording

Residential 1 – 4 Family. Residential 1 – 4 family loans held in portfolio amounted to $1.10 billion and $895.0 million at June 30, 2026 and December 31, 2025, respectively, and represented 24% of our total loans as of June 30, 2026 and 25% of our total loans as of December 31, 2025.

Current wording

Residential 1 – 4 Family. Residential 1 – 4 family loans held in portfolio amounted to $1.13 billion and $895.0 million at September 30, 2026 and December 31, 2025, respectively, and represented 25% of our total loans as of September 30, 2026 and December 31, 2025.

Previous wording

We were servicing mortgage loans sold to others without recourse of approximately $1.55 billion and $1.20 billion at June 30, 2026 and December 31, 2025, respectively.

Current wording

We were servicing mortgage loans sold to others without recourse of approximately $1.56 billion and $1.20 billion at September 30, 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 $18.0 million at June 30, 2026 and $13.7 million December 31, 2025.

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 $18.9 million at September 30, 2026 and $13.7 million December 31, 2025.

Previous wording

Consumer Loans. Our consumer loan portfolio totaled $60.7 million and $54.8 million at June 30, 2026 and December 31, 2025, respectively, and represented 1% of our total loans as of June 30, 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.

Current wording

Consumer Loans. Our consumer loan portfolio totaled $56.8 million and $54.8 million at September 30, 2026 and December 31, 2025, respectively, and represented 1% of our total loans as of September 30, 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

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 six months of 2026 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 nine months of 2026 was primarily due to relationships acquired during the Centre acquisition.

Previous wording

At June 30, 2026, the ACL - Loans was $56.0 million (representing 1.2% of period end loans). The Bank did not record a provision for credit losses during the second quarter of 2026. In addition, the ACL - Loans increased due to the acquisition of Centre, which required a $7.8 million allowance for credit losses on non-PCD loans and a $5.0 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 $1.2 million during the first six months of 2026.

Current wording

At September 30, 2026, the ACL - Loans was $56.8 million (representing 1.24% of period end loans). The Bank recorded a provision for credit losses of $0.8 million and transferred $0.3 million from unfunded commitments during the third quarter of 2026. In addition, the ACL - Loans increased due to the acquisition of Centre, which required a $7.8 million allowance for credit losses on non-PCD loans and a $5.0 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 $1.4 million during the first nine 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 June 30, 2026, deposit liabilities accounted for approximately 83.9% 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 September 30, 2026, deposit liabilities accounted for approximately 84.1% 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.